BusinessDay 09 Jul 2019

Afreximbank announces $1bn facility, other AfCFTA support measures …as OPS lists benefits of FG’s signing deal, lists areas of concern HOPE MOSES-ASHIKE, Lagos, & HARRISON EDEH, Abuja

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frican Export-Import Bank (Afreximbank) on Monday said it is instituting a $1-billion African Continen-

tal Free Trade Area (AfCFTA) adjustment facility to enable countries adjust in an orderly manner to sudden significant

news you can trust I **tuesDAY 09 july 2019 I vol. 15, no 349 I N300

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Africa’s 2 largest economies diverge on central bank policy

tariff revenue losses as a result of the implementation of the agreement.

Benedict Oramah, president, Afreximbank, while addressing the 12th Extraordinary Summit

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of African Union (AU) Heads of State in Niamey on Monday, announced a series of initiatives to support the implementation of the agreement.

“This facility will help coun-

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Nigeria’s oil sector suffers consecutive lost decades Records average growth of -0.5% since 1999 As New NNPC GMD sets 2023 target for revamping refineries

IFEANYI JOHN, Lagos & HARRISON EDEH, Abuja

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LOLADE AKINMURELE & SEGUN ADAMS

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entral bankers in Africa’s two largest economies are taking diverging policy stances, even as they get slammed by similar headwinds of low growth and high unemContinues on page 34

Inside OML 25 dispute Host community gives conditions to accept peace agreement with SPDC P. 2

tries to accelerate the ratification of the AfCFTA,” he said, telling the heads of state that, by starting the operational phase of the

L-R: Oluwatoyin Adegbite-Moore, executive director, West Africa region, African Venture Philanthropy Alliance (AVPA); Victor Gbenga Afolabi, founder, Eko Innovation Centre; Jacqueline Novogratz, CEO, Acumen; Obafemi Hamzat, deputy governor, Lagos State; Meghan Curran, West Africa director, Acumen, and Andrew Nevin, advisory partner/chief economist, PwC, at an evening of conversation on moral leadership in Lagos. Pic by Olawale Amoo

igeria’s crude oil sector has suffered a silent growth crisis in the last 20 years even though average crude oil price was $51.55 and average daily oil production was 2.24 million barrels per day during the period.

Between 1999 and 2018, average annual growth in Nigeria’s oil sector was -0.5 percent and in the years between 2009 and 2018, average oil sector growth was -3.1 percent, according to data compiled from Central Bank of Nigeria’s 2018 Statistical Bulletin.

For the largest oil producer Continues on page 34

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Tuesday 09 July 2019

BUSINESS DAY

news Did Ekiti varsity award best graduating student N100? Yes! OLUWASEGUN OLAKOYENIKAN

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viral picture on social media (Facebook and Twitter) showing a letter from Ekiti State University, Ado Ekiti (EKSU), claims the best graduating student in the Department of Chemical Engineering, Faculty of Engineering, of the university was honoured with an award prize of N100 (one hundred naira).

The picture is genuine, indicating the university presented the letter to the beneficiary. However, EKSU said it was a long-standing tradition of the institution, adding that the management upwardly reviewed it after the public outburst and it would be effective from its next convocation ceremony.

The letter, which was dated June 13, 2018, emanated from the Office of the Registrar and was printed on the university’s letterhead with the emblem of the institution. It was signed on behalf of the vice chancellor of the university by Dr. Afolabi S.

O, EKSU principal assistant registrar/head, Senate and Academic Matters, for the registrar of the institution, Akin Arogundade.

The letter was addressed to Bamisaye Tosin Tope, a graduate of the Department of Chemical Engineering in 2016/2017 academic session, for emerging winner of the Ado-Ekiti Patriotic Front Prize Award.

Ekiti State University, formerly University of AdoEkiti, is a university owned by the state government.

It prides itself as an academic institution known for knowledge, honour and service.

“This is to inform you that you have won ADO-EKITI PATRIOTIC FRONT PRIZE AWARD for 2016/2017 academic session as the best graduating student in the Department of Civil Engineering,” the letter read in part. “The value of the prize award is N100.00 (One Hundred Naira Only).”

FACT CHECK

•Continues online at www.businessday.ng

OML 25 dispute

Host community gives conditions to accept peace agreement with SPDC

L-R: Mutiu Aare and Cardinal James Odunbaku, chieftains, All Progressives Congress (APC); Abiodun Ogunleye, former deputy governor of Lagos State; Bola Tinubu, APC national leader; Olusegun Osoba, celebrant, his wife, Aderinsola; Babajide Sanwo-Olu, governor, Lagos State; Kemi Nelson, APC South West women leader, and Wale Edun, former commissioner for finance in Lagos State, during the book launch “Battleline: Adventures in journalism and politics” in commemoration of Aremo Olusegun Osoba’s 80th birthday in Lagos, yesterday.

PENCOM hands off management of First Guarantee Pension after 8 years HOPE MOSES-ASHIKE

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he National Pension Commission (PenCom) on Monday terminated its eight-year interim management of First Guarantee Pension Limited (FGPL) as the firm elected new directors.

FGPL was, effective August 15, 2011, taken over by PenCom as a result of incessant shareholders’ squabbles and several issues of adverse corporate gov-

ernance in the Pension Fund Administrator (PFA).

After an Extra-ordinary General Meeting held on Monday, July 8, 2019 in Abuja, the promoters of First Guarantee Pension Limited closed ranks and elected a new board to give direction to management of the company, according to a statement from the promoters of the company.

However, all efforts to reach PenCom were not successful as Peter Aghahowa, its head of corporate communications,

did not respond to calls and text message sent to his phone.

The new board chairman is Kashim Ibrahim-Imam, while members of the board are George Ozodinobi, Charles Dim, Ahmed Salik, Austin Opara, Ghali Umar NaAbba, Tsegba Terngu, and Pat Asadu.

Ibrahim-Imam earned degrees in Political Science and International Economics from Ahmadu Bello University and University of Maiduguri. He had a banking experience before he left for politics and business.

FGPL obtained operational licence in 2006. It operated a normal business until July 2011 when the pioneer board resigned.

On August 15, 2011, an Interim Management Committee (IMC) made up of Issa Aremu (chairman), Johnny Ojeaga (director), and Chima Akalezi (MD/CEO) was appointed by PenCom. Steve Nwadiuko is the current managing director/CEO of FGPL.

•Continues online at www.businessday.ng

…wants to join Bayelsa State Over 100,000 Nigerians re-enter

Ignatius Chukwu

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he major host community in the protracted dispute in the Kula oil field (Oil Mining License 25) wants to be ceded to Bayelsa State, saying they have come under heavy oppression in Rivers State.

The Offoin-Ama community has however given three conditions for accepting to stay back in Rivers State and also to accept the ‘Settlement Agreement’ signed in Government House last week (July 1, 2019) with Shell Petroleum Development Company (SPDC).

The first is a road from Kula to Degema across the vast water that must be awarded to a reputable contractor of Julius Berger grade; the right of first refusal to be given to the community in choosing an operators should SPDC want

to divest; and payment of all funds owed the community.

Speaking at a press briefing in Port Harcourt Monday, July 8, 2019, a chief and spokesman of the community, Ibiosiya Nath-Sokubo, who said he is the president of the Niger Delta Renaissance Movement (NDRM), said they cannot be safe-guarded in Rivers State any longer.

He accused the Rivers State government under Gov Nyesom Wike of collaborating with SPDC to forcefully enter OML 25 occupied by women and children. He reminded the state governor how he once presented SPDC as the oil giant causing disputes in the Niger Delta, only to turn round now to insist on them instead of backing a son of the soil to get the oil field.

•Continues online at www.businessday.ng

MMM Ponzi scheme as poverty bites

…Offers up to 50% returns per month Iheanyi Nwachukwu

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avrodi Mondial Moneybox (MMM) Cooperation, the Russian Ponzi scheme that had many Nigerians’ monies trapped about two and a half years ago, is back.

The financial pyramid scheme reopened its operation in Nigeria in the past six months, according to BusinessDay findings, and participants are being offered between 30 percent and 50 percent returns per month.

The administrators said their “goal is to destroy the world’s

unjust financial system”.

MMM Cooperation is a Ponzi scheme because it lures participants and pays high returns to earlier participants with funds from more recent participants. The scheme leads greedy victims to believe that returns are coming from other means, and they remain unaware that other participants are the source of funds.

This is coming at a time many Nigerians are reeling in extreme poverty. The pyramid scheme targets mostly poor Nigerians as well as middleincome earners who have the get-rich-quick instinct.

About 91.16 million Nige-

rians were living in extreme poverty as of February 13, 2019, according to the World Poverty Clock, created by Vienna-based World Data Lab. The World Bank classifies a person to be living in extreme poverty if he/she lives below the poverty line of $1.90, which translates to N693.5 per day.

Over 100,000 Nigerians have keenly reentered the MMM scheme as at the firsthalf (H1) of 2019. Most of the participants are staking up to a maximum limit of N2.5 million and a minimum of N1,000.

In MMM, participants see themselves “as a community of

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ordinary people, selflessly helping each other”,or a “kind of the Global Fund of mutual aid”.

How does this Ponzi scheme work? Participants declare their willingness to ‘Give Help’ and ‘Provide Help’.

After that their account will be credited with so-called Mavro (internal currency of the system). The said Mavro’s amount will start to grow from the moment of deposit.

“The rate of growth can be slowly or rapidly, everything depends on you and your activity only. Calculation of growth occurs every day. The said sum in Mavroshowshowmuchmoney the participants earn,” the Ponzi scheme said on its website.

“This is the first sprout of something new in the modern soulless and ruthless world of greed and hard cash. The goal here is not the money. The goal is to destroy the world’s unjust financial system. Financial Apocalypse! Before you join, be sure to be acquainted with our ideology,” it said.

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NEWS

Nigeria’s solar energy market ranked in top 5 globally – report … records $4.6m sales in appliances in 2018 BUNMI BAILEY

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frica’s biggest economy is among the top five countries with the largest cash market of off-grid solar energy with a value of $4.6 million, according to the latest Global Off-Grid Solar Market Report.

From the report by the Global Off-Grid Lightening Association (GOGLA), the global association for the offgrid solar energy industry, Nigeria off-grid solar cash sales increased by 58.6 percent to $4.6 million in 2018, from $2.9 million in 2017, but volume of products sold reduced by 5.3 percent to 204,155 in 2018, from 215,575 in 2017.

The off-grid solar appliances such as TVs, fans, refrigeration units and water pumps were sold to people living in off- or weak-grid areas.

Also, GOGLA that builds sustainable markets, delivering quality, affordable products and services to as many households, businesses and communities as possible across the developing world said that Nigeria moved up by three places to the fourth position in 2018 from the seventh position in 2017.

The report, which analysed 46 countries, includes data for national markets where at least three manufacturers reported sales.

“The macroeconomic situation in Nigeria in the first half of 2018 seems to be more stable than it was in 2017.

Inflation has remained high and in double digits, but it is

on a slightly downward trend compared to the previous two years. Foreign exchange is more available to enable imports but shortages of it still remain an issue,” the report stated.

Nigeria was in recession for five consecutive quarters but returned to positive growth of 0.72 percent in the second quarter (Q2) 2017 from -0.67 percent in Q1 2016. Since the exit from recession, there has been availability and stability of foreign exchange in Nigeria.

The top countries with the largest cash market are India, Kenya, Ethiopia and Nigeria with $94.3 million, $18.0 million, $10.8 million and $4.6 million, respectively.

“The grid in Nigeria is not as strong as it should be or has not produced much power and that is why people need an alternative source of energy. Remember that there is a direct correlation between poverty and lack of energy, so the more lack of energy people have, the poorer they become,” said Ayodele Oni, an energy partner at Bloomfield Law Practice.

“Fossil oil like diesel is very expensive. But with solar, the initial cost may be expensive but subsequently you will be spending no money because the sun is your source of energy, so it is much cheaper over time, cleaner, less stressful and less risky,” he said.

Oni also said solar market is growing and more businesses and investments are going into the sector because it is a larger market.

Prasun Banerjee, managing director, Binatone, receiving the MANCAP certificate from Omotosho Ayodele, state coordinator of SON Lagos State III Office, Amuwo Odofin area.

‘20% of government’s procurement should go to SMEs’ Jumoke Akiyode-Lawanson

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mall and Medium Scale Enterprises (SMEs) and start-up businesses play significant roles in the economic development of countries. According to the United Nations Industrial Development Organisation (UNIDO), SMEs form the backbone of economic growth in most industrialised economies, and account for 50 to 60 percent of employment generation. They also contribute significantly to wealth creation and poverty alleviation.

It, however, appears to be a little different in Nigeria. Until recently, the country’s SME sub-sector has been faced with lots of challenges that include a stringent business registration process, inef-

ficient electric power supply that constrains companies to run on expensive alternative sources of energy, inaccessibility to bank credits and loans, multiple taxation, importation of goods that can be produced locally and lack of managerial capacity among other factors.

Niyi Yusuf, managing partner at Verraki, recently called on the Federal Government to intervene in SME growth by creating access to markets for indigenous businesses over subsidies.

Speaking during a live interview on the Global Business Report segment on Arise TV, Yusuf, who spoke on the topic, ‘Technology and Innovation in Sub-Saharan Africa,’ stressed that limited market access was one of the fundamental bar-

riers to Nigeria’s attempts to boost small and medium enterprises, and called for a new policy that directs government procurement to SMEs. Benchmarking other countries, Yusuf explained that 16 percent of South Africa’s Federal Government procurement goes to SMEs while the United States of America spends 22.5 percent of all Federal procurement on SMEs via the Small Business Administration and urged for a deliberate policy where 20 percent of the Federal Government’s procurement should go to indigenous SMEs. According to him, this will create access to markets for indigenous businesses and foster expansion.

Speaking on the impediments to technology and innovation in Nigeria, Yusuf

PENGASSAN sets agenda for Kyari, new NNPC GMD JOSJHUA BASSEY

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etroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has identified areas that require the immediate attention of Mele Kyari, the new group managing director (GMD) of the Nigerian National Petroleum Corporation (NNPC).

Kyari, whose appointment by President Muhammadu Buhari takes effect from July 8, replaces Maikanti Baru, who has been on the saddled for nearly four years.

Kyari, a geologist, until his new position was group general manager, Crude Oil Marketing Division of NNPC and also doubled, since May 13, 2018, as Nigeria’s national representative to

the Organisation of the Petroleum Exporting Countries, (OPEC), and therefore expectedly stepping with a wealth of experience in the oil and gas industry.

Stating PENGASSAN’s position on Monday, Lumumba Okugbawa, the general secretary of the association, who described the appointment as well deserved, however, pointed to the challenges that the new management should urgently address.

According to PENASSAN, challenges associated with pipeline vandalism, crude oil theft, inadequate infrastructure, pricing uncertainties, and obsolete refineries as well as the contentious fuel subsidy issues and resting of the Petroleum Industry Bill (PIB) are issues the Nigerian masses

expect the new NNPC board to champion in order to further bolster the economy.

The association, however, welcomed Kyari’s appointment, saying it was recognition of his 27 years of contributions to the NNPC, the nation’s oil and gas sector and the economy, which depends majorly on the industry.

“Kyari as a quintessential crude oil marketer with prerequisite certification and outfield pedigree in petroleum economics and crude oil and gas trading, whose knowledge, wisdom, steadfastness, and purposefulness to the corporation, the oil and gas industry and the nation as a whole, is being rewarded by this new appointment,” said PENGASSA.

IWG commits to deepening flexible workspace environment for entrepreneurs, professionals KELECHI EWUZIE

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nternational Workplace Group (IWG) says it is committed to providing the largest network of workspaces and coworking spaces for professionals and inspiring entrepreneurs to help stimulate businesses and economic growth.

Also, the group says as the world’s leading workspace provider operating in about 120 countries, serving over 2.5 million customers worldwide, it hopes to help professionals and

business owners to avoid set-up costs, capital investment and eliminate the burden of property management.

Karim Ahmed, director, sales of IWG, observes that each designed office space serves the unique needs of businesses of every size from some of the most exciting companies and wellknown organisations on the planet to individuals and industry leaders of the next generation.

Ahmed says through one of its operating brands Regus Nigeria, it plans to help millions of people

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have a great day at work every day.

“We do this by creating a fantastic workingenvironment,providinga platform that unlocks productivity andenablingconnectiontoavaluablebusinesscommunity,”hesays.

He further states that IWG believes business success is underpinned by the effectiveness of its people, adding that with unique business goals, people and aspirations, entrepreneurs and business owners want the freedom to choose a way of working that works for their businesses. https://www.facebook.com/businessdayng

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proposed steps to enable governments to foster innovation in-country.

He said a major bottleneck to innovation and innovative practices in Nigeria was the lack of a structured process to foster innovation.

Annotating this comment, he explained that innovation is an intentional process, not an accidental occurrence and most Nigerian companies and institutions prefer quick solutions and do not dedicate enough time and resources to support innovation.

He also identified a cultural fear of failure but stressed that one of the biggest constraints to innovation in Nigeria was the lack of investment in STEM education - Science, Technology, Engineering, and Mathematics.

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EM-ONE, Schneider Electric partner to industrialise solar mini-grids in West Africa ISAAC ANYAOGU

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n an effort to play a leading role to localise and industrialise the deployment of minigrids in West Africa, EM-ONE Energy Solutions, a sustainable engineering firm, and Schneider Electric, a leader in digital energy management, automation and software, have signed a memorandum of understanding (MoU) to develop and execute decentralised renewable energy projects.

The MoU builds on EMONE’s expertise in electrifying over 400 clinics, schools and rural communities in Nigeria using their proprietary containerised solar solution – the “EM-BOX.” Recent donor and private sector motivation to build Nigeria’s off-grid power sector to address the un- and under-electrified populations hope to prove the case that decentralised, renewable power will pave the way for affordable, reliable sustainable and modern energy for all in a cost effective and timely manner.

“Nigeria has become a focal point for distributed solar, renewable energy and mini-grid investment due to the size of the market — 75 million people without access to electricity and another 30 million people that are connected to the grid but do not receive any electricity,” said Mark Amaza, who leads strategic communications and research

for developing-world, distributed sustainable energy advocacy Power for All. EM-ONE’s CEO, Mir Islam comments “Having worked in Nigeria’s power sector for over 20 years, we know that customized and decentralized energy solutions are the way forward to leapfrogging Africa’s energy access challenges. The EM-BOX is a customised energy solution that builds upon the lessons learnt from electrifying rural and off-grid Nigeria.

The EM-BOX has been designed to be a plug-and-play standard system that is modular and scalable and uses best-inclass technologies like Schneider to deliver long-standing and sustainable value to donors, investors and the off-takers alike.

We look forward to continuing to work with Schneider to expand the electrical footprint of Africa while enabling local capacity, jobs, reducing carbon emissions and providing greater access to social benefits.

“This is the second largest population of people without access to electricity in the world after India and the largest in Africa,” stated Amaza. “Another reason is that over the past three years, the government has focused a lot of attention on the off-grid power sector in terms of policies, plans, and targets, such as the 10,000 mini grids by 2023 and the $2 billion investment initiative.”

UN pledges support as Africa begins to implement of AfCFTA … as agreement will create jobs, contribute to tech transfer Jonathan Aderoju

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nited Nations has given its support to the African Union as the continent begins to operationalise the African Continental Free Trade Area (AfCFTA) expected to unleash the continent’s all-inclusive economic potential, according to Amina J Mohammed, United Nations Deputy Secretary-General.

According to Amina, “the world’s largest free trade area, encompassing 54 countries and 1.2 billion people the AfCFTA will bring the promise of trade-led economic growth closer to reality for Africa’s entrepreneurs, industrialists, investors, innovators and service suppliers.

“It will create jobs and contribute to technology-transfer and the development of new skills; it will improve productive capacity and diversification; and it will increase African and foreign investment.”

Amina said, “We are already working with 16 African governments to develop national strategies to maximise the opportunities created by this agreement, and we will increase this number from next year.

“We are committed to working with African institutions to mobilise the resources that will be required for full implementation of the African Continental Free Trade Area. In the first instance, the African Regional Integration Trust Fund will support countries to mobilise resources to finance regional integration.”

She said the UN would work with the African Union to coordinate and leverage com-

plementary funding sources from the African Development Bank’s Africa50 Fund, to the African Union’s Programme for Infrastructure Development in Africa (PIDA), and China’s Belt and Road Initiative.

The United Nations Economic Commission for Africa (ECA), she said, is supporting the process of mainstreaming gender and youth employment initiatives into national strategies.

Speaking further Amina said “This will help to ensure that trade policy is both gender-sensitive and responds to demographic realities, thereby contributing more fully to sustainable development,” “Trade can contribute to both widening or closing inclusion and gender gaps, depending on how the process is managed.

So we are also working with governments to counterbalance the distributional and genderdifferentiated effects of trade liberalization.”

The African Union’s Phase II of the AfCFTA negotiations will tackle competition, investment, and intellectual property rights, which the UNDSG said were some of the regulatory obstacles that create dysfunction in integrated markets.

“I urge you to move decisively and quickly during the transitional period up to 1 July 2020 to reap the rewards of this historic agreement,” she said, adding Africans should take particular pride in reaching this agreement at a time of growing protectionism and rising trade tensions that threaten economic stability and progress around the world. www.businessday.ng

Tokunbo Abiru, managing director/CEO, Polaris Bank (r), with Seyi Makinde, governor of Oyo State (l), when the bank boss visited the Oyo State governor in Ibadan.

Robust investors’ participation in Executive Order 7, remedy to Nigeria’s infrastructure woes - experts Israel Odubola

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nadequate infrastructure is taking a toll on Nigeria whose economy grew a paltry 1 percent over the last three years, even as businesses struggle to expand and firms’ production capacity constrained.

To put the decrepit state of infrastructureinAfricanmostpopulous nation in context, the country ranked 127th out of 137 countries in World Economic Forum’s latest global competitiveness report in terms of quality of roads, and 131st out of 137 on overall quality of infrastructure.

Also, a mere 14 percent of Nigeria’s total road network of 195,000km is paved, with more than 60 percent in deplorable state, according to figures from Nigerian Investment Promotion Commission (NIPC).

Given the inability of govern-

ment to raise sufficient funds to finance capital projects and the need to bridge the country’s infrastructural deficit of about $3 trillion, President Muhammadu Buhari in January signed the Executive Order 007 to allow private companies fund the construction ofmajorroadprojectsnationwide.

Experts say this is a step in the right direction to resolve Nigeria’s infrastructural problems at the 11th Annual Lecture Series of the Nigerian Institute of Quantity Surveyors(NIQS)LagosStatechapter held Thursday, July 4, themed – The Effect of Executive Order 007 on Road Infrastructure Development over Key Infrastructures.

Ajibola Olomola, partner at KPMG Nigeria, stated in his keynote address that the robust participation in the Executive Order 007 scheme, which predicates on building road infrastructure, would help the country achieve

the Sustainable Development Goals (SDGs) 9 and 21 – building resilient infrastructure and promoting innovation and industrialisation.

According to Olomola, it took the government and stakeholders two years to craft out the scheme, and will be extended to other sectors if it work out as planned, adding that the scheme will be a boon for African Continental Free Trade Area (AfCTA) since goods aremostlyconveyedviaroad,now thatNigeriahasshowedreadiness.

“The scheme is a win-win for both government and private companies. For the government, it creates avenue for growth and economiccompetitiveness.While to private corporates, apart from getting compensated through tax credit and one-time uplift, it helps move their sales faster.”

The participating companies have the leeway to construct

any road network that suits their operational location, Olomola explained, adding that corporates will maintain the road for five yearsbeforeFederalGovernment takes full responsibility.

The KPMG Partner however warned that participation is not a guarantee for improved profitability, noting, “Government is saying the economic means is that you will be able to move your business faster and not an assurance to make higher profits, that’s why participating firms have to be resilient.”

In his remarks, Olayemi Shonubi, vice president, NIQS, stated that though 30 percent of the fiscal budget was directed to capital expenditure, a thorough look showed that it was actually less than 15 percent as government expended part of the allocation on purchase of vehicles and other items.

Phillips Consulting roundtable tackles Why we are building Benin Royal workplace digitalisation, role of HR Museum – Obaseki FRANK ELEANYA

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orkplace transformation has become inevitable giving the spate of digitalisation sweeping through industries, and experts that attended a recent Digital Learning Breakfast Roundtable say the future of work also requires organisations to begin to design new experiences that meet the evolving expectations of their workforce, particularly the digital talents.

The roundtable organised

by Phillips Consulting (pcl.) brought to limelight new trends in workplace digital learning such as on-demand learning - also known as learn-as-you-go, gamification and game-based learning, virtual and augmented realty learning, micro learning, market learning internally among others.

Rob Taiwo, managing director of pcl. says the impact

of digital technology in the workplace cannot be quantified and will continue to grow as the future unfolds.

Paul Ayim, senior partner at pcl. notes that digital learning is not a game of technology or fanciness; it is more a race for efficiency and competitive advantage in the marketplace. The new digital talents who are largely younger want their learning tailored to their lifestyle.

Ayim says is possible for firms to design learning that is flexible, and assures of freedom and incorporate new digital tools to sustain interests.

“We need to look at how we design experiences when they come into the learning environment,” Ayim says, but “whatever learning you introduce let it be in short burst and learners are able to consume anywhere they are. So, learning approach should be mobile.”

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do State governor, Godwin Obaseki, says the state government is collaborating with the Benin Monarch, Omo N’Oba N’Edo Uku Akpolokpolo, Oba Ewuare II, and other stakeholders to build a world-class royal museum to hold stolen artefacts from the Benin Kingdom, noting that the museum will conserve the artefacts and make the state a destination of choice for tourists from across the globe.

The governor disclosed this at a breakfast meeting with members of the Benin Dialogue Group (BDG), at Government House in Benin City, Edo State.

Obaseki thanked members of the Benin Dialogue Group (BDG) for engaging with the state government on efforts to construct the Benin Royal Museum, adding that artworks from the Benin Kingdom have gained global recognition with potential to develop the state’s tourism sector.

He said, “When you look at museums all over the world, @Businessdayng

there is one recurring thing.

When you go to any African section of any museum in the world, in America, or elsewhere, you are likely to see a piece of artwork from the Benin Kingdom.

“What this tells you is that Edo State has the best representation of African arts globally. This singular opportunity we have can help us to foster and develop the creativity, which has been part of us. That is the driving factor, and we believe that we can have such museums here at home of the same standard and quality so that people outside the world will not only come to see these things here but also appreciate the setting where these things were created several decades ago” Obaseki said.

The director, National Commission for Museums and Monuments, Edith Ekunke, expressed appreciation to the governor for the efforts by his administration to reposition arts and culture in line with international best practices.

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Culture: A necessity to overcome underdevelopment (1) STRATEGY & POLICY

MA JOHNSON

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lot of people have asked:“why do poor countries stay poor?”Some say most poor countries, particularly in Africa, stay poor because of corruption. Corruption is just one of several reasons why most African countries are poor. Most African countries are poor because they do not have a culture that creates wealth. What is culture? There is a welter of definitions on culture by different scholars. The Oxford Dictionary of Philosophy however, defines culture as the way of life of a people, including their attitude, values, beliefs, arts, sciences, mode of perception, and habits of thought and activity. Cultural features of forms of life are learned but are often too pervasive to be readily noticed from within.

It has been expressed on many occasions in this column that culture plays a significant role in whatever we do as a people. The focus of this article is on broad trends in the entire society as no judgement is made on the desirability or otherwise of any current trait.

Rather, the arguments in this article are derived from the fact that the nature of a society’s value system determines the extent which it is likely to develop technologically and economically.

If one takes a deeper look at developmental issues within our society, it is almost becoming a culture of not

doing anything well in the country.

That is why it has taken the country many years of going through a tortuous path towards sustainable development without much to show for it. If you are in doubt, why has the “privatization” of PHCN not delivered its core objectives since 2013? It is because Nigeria for many years have not imbibed the culture of using scientific means to solve industrial, and management problems as is the norm in most successful industrial economies. Besides, Nigeria as a country has not motivated its people sufficiently to build capacity to tackle critical organizational and technical problems with the result that dependence on foreign firms is on a large scale.

Sometime ago, I read in Nelson Mandela’s Autobiography Long Walk To Freedom about one Reverend Andre Schefer, a minister of the Dutch Reformed Mission Church in Africa, who in a conversation with Nelson Mandela in the prison says: “Whenever there is a problem, we have to find a solution.

But whenever you blacks have a problem, you have an excuse.” An excuse that it was either the subordinate or political opponent that caused a problem. On other occasions, it is the subordinates that blame their leaders. It is all part of the blame game culture.

The index of measuring a nation’s economic power is technology. As we know that science, which is the search for the truth about laws obeyed by nature, and technology, which focuses on using scientific laws to create tools that will make nature obey man, are central to wealth of nations. But science, technology and industrialization which goes with culture, have not been growing as expected within Nigeria. If we say this is untrue, the question to ask is: How far has Nigeria gone in building its own indigenous technological and in-

dustrial capabilities? Due to large number of illiterates in the country, most Nigerians are still mystified by science, technology and industry as these are yet to become integral components of the value system in modern-day Nigeria. It is sad that Nigeria with a population of about 200 million is failing woefully in the achievement of intellectual and material progress because we have not accepted science and technology as a way of life. That we have about 100 million poor people is not because they do not pray. It is because the country has not gotten its economic priorities right to lift them out of poverty.

Have we asked ourselves why the increase in religious organizations as well as proliferation of universities, polytechnics, and secondary schools has not significantly changed how our people relate to the natural world? Why have we deliberately chosen mediocrity instead of meritocracy? You find “scientific gullibility” even among a few educated Nigerians. Most Nigerians resort to religion with the result that religiosity is adversely affecting economic development. Perhaps, that is the reason why for example, religion is a fast growing industry while manufacturing firms are struggling for survival in Nigeria. Churches are rapidly taking over warehouses and commercial properties in prime areas of the country.

The other day, I asked one of my staff why she was late to work on a Monday morning. Her response was very simple: “I went to sweep our church with other members.”Importantly, most of our people cannot be entrusted with public funds. What one gets in return is disappointment and perhaps, an insult if the matter is not handled carefully.

Why is this so?

No concrete answer but one can see a clash between religion and development of the people. Anyone who

‘

Have we asked ourselves why the increase in religious organizations as well as proliferation of universities, polytechnics, and secondary schools has not significantly changed how our people relate to the natural world?

cannot appreciate the conflict between religion and economic development particularly in Nigeria should endeavour to read Max Weber’s The Protestant Ethics and the Spirit of Capitalism.

Weber argued that character traits, strongly shaped by religion, could play a big role in the creation of wealth.

These traits do not necessarily depend on any particular religion to create wealth. If wealth creation was to be determined by religion, undoubtedly, Nigeria would have been the wealthiest country in the world. Unfortunately, this is not so. The Spirit of Capitalism, according to Weber, is not about the mad rush to spend and consume, but the creation of wealth through good use of resources including our talents.

So when people cannot save because of poverty, there cannot be investments.

And without investment, poverty continues to rise.

Let us examine our attitude for a while. There are many Nigerians with positive attitude. When you look at our attitude from a superficial angle, everything appears to have changed.

But from the development prism not much has changed. Without positive attitude, there cannot be development. We need to check our attitude at home and abroad. This is applicable to all our leaders and all followers. How can we plan for development without data? For many years, Nigeria as a country has not been able to conduct a credible population census. Our population is an estimate for many years. That is one of the reasons why most plans cannot address our developmental challenges.

• To be continued Johnson is an author and a retired naval engineer who has passion for African development and good governance

Folly and falsities of Ruga settlements

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ublic policies are made in the public and collective interest. Essentially, policy experts agree that public policymaking is a process and not a one-off event; it is thus “characterized as a dynamic, complex, and interactive system through which public problems are identified and countered by creating new public policy or by reforming existing public policy.” Where any policy is contrived to advance sectional or vested interests, that policy ceases to be in the common interest. And that is exactly where Nigeria finds itself with the controversial Rural Grazing Areas (RUGA) herdsmen settlement. The folly and falsities of that policy are deep-seated and very polarizing.

What is perhaps ever more disconcerting is the proclamation attributed to presidential spokesman, Mallam Garba Shehu, that “It is true that government at the centre has gazetted land in all the states of the federation.” The ensuing pushback has been correctly strident; and criticisms of the policy trenchant. That is as it should be. Across board, ethnicity and across party lines, state governors are repudiating the policy. They were not consulted and they did not acquiesce. Neither did the Ninth Assembly give its legislative imprimatur. It seems the executive branch seized on the twilight and gray zone created by the transition from the Eight to the Ninth National Assembly to insinuate the controversial policy into the realm of extant laws. Such subterfuge is condemnable in every regard.

If the intent and goal of the federal government in approving the Ruga settlements programme was to curtail the problems

associated with open grazing system, that intention has backfired awfully. The allegations of a hidden agenda seem correct and valid. The spectre of sectarianism is real. In theory and practice, every public policy ought to meet one of three definitional premises or a combination of two or all three to be efficacious. Hence public policies are essentially regulatory, distributive, or redistributive. The Ruga policy does not in any sense meet any of these parameters.

First, the Ruga settlement programme serves only those engaged in the business of cattle rearing. There is no indication of how it would dovetail into the needs of farmers, who have for long been in conflict with herders.

It does not cater to any other sector or trade in the commerce or organized private sector.

Shockingly, it does not have the buy-in of states and local communities where the settlements will be domiciled.

Essentially, the Ruga scheme is a preferential policy contrived by executive fiat, which will only serve marginal and sectional interests at public expense. No adjectival qualification defines such a policy slant better than the word, “folly”. Furthermore, Nigerians who are engaged on the matter now appreciate that the grounding premise, which is being masked as public interest is equally false. The way the policy is couched, hosting a Ruga settlement is not voluntary; it is decreed.

Theoretically, the Ruga policy does not pass the policy trajectory litmus test. While the insecurity associated with farmers-herders conflict has been discussed extensively and various panaceas sought, arriving at the www.businessday.ng

Ruga Scheme as the singular and one-size fitsall solution, overlooks and indeed, ignores the essential stages of good public policy making, namely; agenda setting, policy formulation, adoption, implementation and evaluation.

It seems clearly that the federal government summersaulted forward – in a hop-step-and jump fashion – from agenda setting to implementation. Such policy rigmarole does not conjure confidence. It undermines trust; it raises more questions than it proffers solutions.

Beyond these observations, the federal government failed to convene town hall meetings to explore public reaction to such a divisive public policy. It also failed to call for the submission of memorandum from the public at large or interested parties, including public policy experts. Simply, the policymaking was not interactive. Yet it seems the FGN want to foist the policy on the people by all means.

And the FGN seem to have forgotten that freedom is the Holy Grail of democracy. In a true democracy, you can’t force on people what they don’t want. Government policies are not entrenched by subterfuge.

Another critical missing component that negates this policy approach is the absence of consultations within the three arms and three tiers of government. Seemingly, the decision on Ruga was done with military despatch. But this is a democracy. For most of the presumed hosting state and local news communities, Ruga is literarily and figuratively, a Greek Gift and a Trojan Horse.

Finally, in proposing to set up Ruga settlement, the “eminent domain” clause can-

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Oseloka H. Obaze not apply. Neither can the provisions of the Land Use Act be contrived as applicable.

The pertinent proviso, stipulates that the use of any land so acquired, must be for “public purposes,” which may include housing development, road and bridges, schools, hospitals, police and military barracks and recreation parks. Private land cannot be acquired in the public interest and devolved to private profit making enterprises. Ruga should be like the fiscal bailout. Only those states that need or want it should get it.

The Ruga policy is fraught with folly and falsities. It has unquestionable ethnic coloration; and its processes are bereft of full disclosure. Indubitably, Ruga is not your quixotic think-outside-the-box solution. It is a bad policy that, in the short to long term, will do more harm than good. From the pushback so far, the FGN ought to know by now that it must resile itself and rescind the policy - in the public and national interest.

Obaze, is MD/CEO of Selonnes Consult Ltd. Obaze is MD/CEO Selonnes Consult – a policy, governance, and management consultancy firm, in Awka.

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African SEZs & GVCs in the age of automation (2)

Rafiq Raji

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write a monthly research paper series for NTU-SBF Centre for African Studies at Nanyang Business School in Singapore. The following is the second part of the highlights of the issue published in June 2019.

Why have African SEZs underperformed?

Factors identified for the poor record of SEZs in Africa thus far relate to “problems with infrastructure, local management, policies and incentives, location, design and maintenance, and promotion.”Poorly-skilled labour has also been identified as a constraint. Still, it is important to point out that while African SEZs have been underwhelming, there are a few exceptions. Mauritius is one. Kenya, Madagascar and Lesotho have been somewhat impressive as well.

Undoubtedly, however, African industrial parks have underperformed relative to their Asian counterparts. One reason why is that the manufacture-to-export Chinese model that East Asian countries replicated successfully, which African

countries have been trying to replicate, may soon become obsolete. Because even as SEZs are a way to circumvent the many trade constraints that African countries face, they may still not be able to match the current advantages of already entrenched Asian players early enough; before automation likely closes the window.

Source: Newman et al. (2016), Farole (2011) Studies find African SEZs to be relatively more expensive to develop. Weak linkages between African SEZs and local economies have also been observed. Job creation objectives have been somewhat elusive as well. Because even as incremental job creation on the back of these zones has been observed, the jobs tend to be low-skilled ones. And even those have not been on the scale

expected or seen in better performing Asian ones. Consequently, the realisation of the immense potential of African SEZs to become major beneficiaries of labour-intensive manufacturing foreign direct investment (FDI), from China especially, is increasingly doubtful. The continent’s continued, or in some cases, marginally improved, but still relatively lower levels of competitiveness and harsh investment and business climate are attributed.

True, infrastructure and trade facilitation are reportedly better for firms inside African SEZs than for those outside them. Even so, they have been observed to be below international standards. For example, reported average downtime in production due to power cuts or shortages of about 44 hours per month is way too high when that for non-African SEZs

of 4 hours per month is countenanced.

Also, clearance of goods at ports take longer relative to non-African SEZs. Against this backdrop, it is not too difficult to see how firms in African SEZs might be ill-equipped to compete in a fiercely competitive global trade environment that is already within the tight grips of “factory Asia”. That said, a number of African countries like Egypt, South Africa and Morocco, which have large markets and high competitiveness, can still compete favourably with their Asian counterparts.

Relatively new Chinese-backed SEZs in Ethiopia, Egypt, Mauritius, Nigeria and Zambia, initiated in the early 2000s, have a decent chance of succeeding as well. Companies in China’s own successful SEZs are behind the African operations, for instance: Tianjin TEDA in Egypt, Nanjing Jiangning Development Zone in Lekki, Nigeria, and the Suzhou Zhangjiagang Free Trade Zone in Ethiopia. There are also self-interested reasons why their probability of success is relatively high. Chinese motivations for developing them include the creation of demand for their machinery and equipment, to take advantage of preferential African trade agreements with America and Europe, and to gradually wean China off low value-added labour intensive manufacturing.

“Dr Raji is chief economist at Macroafricaintel. He was previously an Africa Economist at Standard Chartered Bank, London, UK. (Twitter: @DrRafiqRaji)”

Huge gap between US markets and international trade

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ince the mid-1980s, the Baltic Dry Index (BDI) has been used as a barometer of international commodity trade. It is also seen as an economic indicator of future economic growth and production.

During the years of globalization, the Index heralded the peak of the oil prices and soared to a record high in May 2008 reaching 11,793 points.

But as the financial crisis spread in the advanced West, the BDI plunged by 94% to 663 points, the lowest since 1986. That’s when marine shippers were moving dangerously close to the combined operating costs of vessels, fuel, and crews.

As China and other large emerging economies chose to support the ailing advanced economies amid the global crisis in fall 2008, the US, the EU and Japan pledged they would accelerate reforms in global governance. Moreover, the central banks of the major advanced economies launched massive fiscal stimulus packages and monetary easing.

As a result, the Index returned to 4,661 in 2009. However, as promises of reforms were ignored and stimulus policies expired, the BDI bottomed out at 1,043 in early 2011, amid the European sovereign debt crisis.

During the past years, advanced economies have sustained a semblance of stability by relying on historically

ultra-low interest rates (while the US Federal Reserve did exit from normalization, it is now pondering a return to rate cuts) and massive injections of quantitative easing.

Stagnation, despite hyper-monetary policies Yet, these huge shifts have not been reflected by the BDI, which continues to stagnate, as do the advanced economies.

Another turn for the worse followed with US protectionist moves. As long as the Trump administration engaged in protectionist rhetoric but avoided a trade war, the BDI climbed to almost 1,600. As Trump opted for the trade war, the Index fell to less than 700 in early 2019 – close to its historical low amid the 2008 crisis.

Recently, there has been much optimism about the “resurgence” of the Index as the trade truce has supported its rise back to over 1,700. Yet, this increase is predicated on the trade truce.

Moreover, it is a level that the Index first reached already in 2000 and the mid-1990s.

Here’s the bottom line that should worry us all: Despite huge stimulus packages after the 2008 global crisis, a decade of massive monetary injections and record-low interest rates, there has been no corresponding pickup in world trade.

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In contrast, the fate of the equities, as evidenced by the Dow Jones Industrial Average (DJIA), has been very different. In the past decade, the DJIA more than tripled from its crisis low of less than 8,000 to its peak of 26,966 in early 2018, before Trump launched his war path. Supported with the trade truce, it is now again close to its historical high at more than 26,900.

Huge gap between US markets and international realities Since the 1980s, international commodity trade, as proxied by the Baltic Dry Index, has increased by 64 percent.

It remains today a tenth of its high in 2008. Meanwhile, US equities, as proxied by the Dow Jones Index, have increased by 2,040 percent. US equities have grown more than 30 times faster than international trade.

But why has the BDI not returned to its pre-crisis high? And why has it not climbed beyond that peak as the equity markets have done so triumphantly?

After all, in the past decade, world population has increased by some 1 billion people (more than three times the US population) and world GDP by almost $25 trillion (or the size of all 28 EU economies plus Japan together).

Given presumably peaceful conditions, it is only fair to expect international trade would expand accordingly.

What is clear is that the current

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Dan Steinbock

gap between US market highs and international economic realities is precipitating a global recession by 2020, given the current trends. And that is the benign – not the malignant – scenario.

US market prices remain twice as high as their historical averages (in light of the cyclically-adjusted price-earnings ratio).

Worse, as US markets thrive whereas international fundamentals – including trade – stagnate, the gap between the two is paving way to a drastic market correction in the future that could prove far more disruptive and longerlasting than the 2008 crisis.

• The commentary is based on Dr Steinbock’s recent presentation: “The Anomaly of US Markets and International Trade” Dr. Dan Steinbock is the founder of Difference Group and has served at the India, China and America Institute (US), Shanghai Institute for International Studies (China) and the EU Center (Singapore). For more, see http://www.differencegroup.net/

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EDITORIAL Publisher/CEO

Frank Aigbogun editor Patrick Atuanya DEPUTY EDITORS John Osadolor, Abuja Bill Okonedo NEWS EDITOR Chuks Oluigbo EXECUTIVE DIRECTOR, OPERATIONS Fabian Akagha EXECUTIVE DIRECTOR, STRATEGY, INNOVATION & PARTNERSHIPS Oghenevwoke Ighure GENERAL MANAGER, ADVERT Adeola Ajewole ADVERT MANAGER Ijeoma Ude FINANCE MANAGER Emeka Ifeanyi MANAGER, CONFERENCES & EVENTS Obiora Onyeaso BUSINESS DEVELOPMENT MANAGER (South East, South South) Patrick Ijegbai CIRCULATION MANAGER John Okpaire DIGITAL SALES MANAGER Linda Ochugbua ASSIST. SUBSCRIPTIONS MANAGER Florence Kadiri GM, BUSINESS DEVELOPMENT (North)

Bashir Ibrahim Hassan

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

The case for public disclosure of assets declaration by public officers

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he Fe deral High Court, Lagos has the duty of declaring for or against the motion by the Socio-Economic Rights and Accountability Project (SERAP) compelling the Code of Conduct Bureau to make public asset declarations by presidents and governors elected since 1999. Their suit provides a basis for taking a closer look at the concept and practice of assets declaration in Nigeria benchmarked against global best practice. It should also lead to a broader public conversation on values and governance principles that matter to Nigeria and her citizens.

Income and asset declaration regimes have become commonplace as are rules on conflict of interest. The global community sees them as essential tools in preventing corruption, instilling ethical corporate governance standards and punishing crime where it happens despite these safeguards.

The World Bank and the United Nations Office on Drugs and Crime have collaborated with the Organisation for Economic Cooperation and Development to help establish such guidelines in many countries around the world, with comparative studies in Eastern Europe, Oceania and Asia. Asset Declarations for Public Officials: A

Tool to Prevent Corruption, one of their publications, documents case studies in various countries and regions of the world.

“Countries are increasingly regulating and sanctioning behaviours where potential or actual conflicts of interest arise”, the report states. The effort includes controlling financial and other assets of interests in public officials, gifts, benefits and hospitality payments.

A fundamental principle is that the asset declaration must allow enough verification of wealth.

There must be sanctions for inexplicable wealth. The regulatory and institutional framework for ensuring compliance must be such as makes it possible for the public who these officers serve to know and are involved.

The Fifth Schedule of the 1999 Nigerian Constitution provides the framework for the code of conduct for public officers. It contains a long list of public officers covered by the law. They include elected officials at high levels such as president, vice president, governors and their deputies, members of the National Assembly as well as highranking civil servants such as heads of MDAs, justices of the courts and more.

Among the provisions of the code are the stipulations that personal interest must not conflict with the duties and responsibilities of public officers, declaration

of assets, and non-receipt of double payments from the treasury, such as former governors receiving pension and payments as Senators. It prohibits public officers from owning bank accounts outside of Nigeria.

Section 11(1) of this Fifth Schedule instructs public officers to submit to the Code of Conduct Bureau a written declaration of all his properties, assets and liabilities and those of his unmarried children under the age of eighteen years. The Code of Conduct Tribunal would adjudge on infractions of this law.

Unfortunately, the Fifth Schedule does not state how the CCB should handle these declarations. By convention, the CCB has treated them as private and confidential. We beg to differ.

The goals of asset declaration regimes include • To increase transparency and the trust of citizens in public administration by disclosing information about assets of politicians and civil servants that shows they have nothing to hide.

• To help heads of public institutions prevent conflicts of interest among their employees and to resolve such situations when they arise to promote integrity within the institutions; and • To monitor wealth variations of individual politicians and civil servants to dissuade them from misconduct.

Transparency and full disclo-

sure are central to a regime of assets declaration. Public officials declaring their assets to the CCB which then keeps them “private and confidential” defeats the essence of such disclosures. How do citizens know what they have reported and thus assist with monitoring? The secrecy has enabled utilisation of assets declaration as a tool for witch hunt rather than accountability and turned the CCB into a political tool.

It has done worse. Non-availability of such information to the public is one of the reasons public officers declare their assets and then brazenly enrich themselves from the public till. If citizens know what officers claimed, they would have a basis for checking.

The secrecy also enables the CCB to engage in selective prosecution, often deemed persecution, against the spirit of the law.

Democracy dies in darkness.

We need the light of information to enable greater citizen participation in governance. Access to the information on declarations by public officers is one of the ways to ensure such light shines on public office.

The National Assembly should remedy this lacuna in the law, as one of the first steps. The code should explicitly state that declarations to the CCB are public documents. The release should be either by the open publication by the Bureau or release to interested citizens who apply for it.

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Easing the pain of political transitions The Reformer

JOE ABAH

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ne of the main tenets of democracy is that citizens get to choose their leaders every so often. In Nigeria, every four years.

Historically, the period of transition from one government to another has been relatively seamless. The official photograph of the former leader is brought down, placed face-down on the floor and that of the new leader is put up, and everything carries on as normal. This happens mostly without major changes, except, of course, changes in personnel.

However, in 2015, Nigeria had its first transition from one ruling party to an opposition party at the national level. This threw up a lot of issues. The incoming party accused the government of the day of refusing to give it handing over notes. What was not apparent to many was that the preparation of the sort of detailed handing over notes that the incoming government was asking for was not what the civil service was used to producing, and that there was limited internal capacity to produce them. Some of us were eventually drafted in at the last minute to help in its compilation and editing, but there were still major concerns by the incoming government when we eventually delivered the handing over notes.

As Director-General of the Bureau of Public Service Reforms at the time, we organised a series of trainings for

civil servants on how to cope with this unusual change in government and produced a number of manuals on how the bureaucracy should prepare itself to assist the new government. Take up was low and many senior people, such as Permanent Secretaries, that would have benefited from it sent very junior staff instead. Early in 2015, I attended a seminar organised by the US-based National Democratic Institute, focused on the need to legislate the political transition process. The House of Representatives eventually brought forward a Presidential (Transition) Bill, 2015: “A Bill for an Act to provide for the smooth and orderly transfer of power from one government to another and other related matters”, to try and address the matter.

Among other things, the Presidential (Transition) Bill requires the sitting President to, within two weeks of the results of the election being declared, provide working space for up to 10 people nominated by the PresidentElect to “begin a review and analysis of budgeted expenditures during the tenure of the incumbent President. It also provides that he should pay the allowances of members of the PresidentElect’s Transition Team and constitute his own Transition Team, with the freedom to draw members from any area of the public service.

Interestingly, the Bill makes provision for the appointment of an Administrator-General after every general election, to take an inventory of all Federal Government assets, ensure that all assets are maintained, ensure the provision of documents to the Transition Team of the incoming government and prosecute any person that breaches the Act. The penalties in the Bill are N10 million, or 6 months imprisonment, or both. The sitting President was also required to make budgetary provision for this activities of not more than N100 million and ensure

that it is appropriated for in the budget of the election year. I believe that the Bill was passed by the House of Representatives but has not yet become law.

There were some issues with the Bill. Firstly, it is tantamount, in a way, to preparing a will, something that most Nigerians are not enthusiastic about. Secondly, the appointment of the Administrator-General is only expected to happen after general elections and it is not clear whether or not it is a permanent or tenured position that will see to the maintenance and public publication of an inventory of all government assets, and liabilities on an ongoing basis once they are acquired. It is whatever the Administrator-General is given by the incumbent government that he or she has to work with. This would still leave a gap between what the outgoing government says it is leaving behind and what the incoming government says it inherited. Lastly, it gave no deadlines for when a handing over note must be prepared.

Many other countries have Presidential Transition Acts. The closest to home is Ghana that enacted a Presidential Transitions Act in 2012 and used it, for the first time, in its 2012 elections. The Ghana Act is more robust, in my view. It provides for a Joint Transition Committee made up in equal numbers by nominees of both the President and the PresidentElect. Its roles include ensuring the smooth handover of power, providing daily national security briefings to the President-Elect and ensuring that government continues to meet its obligations. It also provides for an Advisory Council headed by the Speaker and made up of one nominee by the sitting President and another nominee by the President-Elect. Additionally, it provides for an Administrator-General in a seemingly-permanent capacity and a Presidential Estates Unit under the Administrator-General to keep an

‘

In my view, there is an urgent need to legislate Transition Bills at both national and state levels.

This will ensure that the circumstances of 2015 and 2019 do not recur

inventory of all government assets and ensure their maintenance.

Significantly, the Ghana Presidential Transition Act stipulates that handing over Notes must be presented to the Administrator-General no later than 30 days before the date of the presidential elections and that he shall make them available to the Parliament, Chief Justice, Council of State and Public Records and Archives Department. If this sort of law had been present for the 2015 elections, it would have greatly avoided the issues that arose during that transition and reduced, to some extent, the level of distrust between the outgoing and incoming governments.

I believe that the issues are in even sharper focus at state level. Every four years, claims and counter-claims are made by outgoing and new governments about how much was left in the treasury of the state. Following the 2019 elections, we saw something similar to the situation at national level in 2015, in that there was a change of power from a ruling party to an opposition party in a number of states.

In Imo State, for instance, the new governor alleged that no handing over notes whatsoever was provided to him, never mind one of inadequate quality.

He also conducted the press round the governor’s office which appears to have been vandalised, with papers strewn everywhere. Interestingly, he asked the Head of the Civil Service who was present during the inspection of the governor’s office whether she thought it was a fit environment for the new governor to work out of and she said: “Beauty is in the eyes of the beholder.” I digress.

Note: the rest of this article continues in the online edition of Business Day @https://businessday.ng Dr Abah is a development practitioner and the immediate past Director-General of the Bureau of Public Service Reforms.

Lagos and the reconstruction of Badagry expressway

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ne major index of social change and development today, especially in Africa, is infrastructure development as particularly epitomized by the construction of roads and bridges. No nation can boast of having achieved development if a large percentage of her roads are impassable.

Infrastructure development is critical to achieving human capital development in any society. The economic impact that infrastructure improvement has on nation building cannot be over-emphasised. The growth of any country’s economy hugely depends on the status of its infrastructure. The dearth of needed infrastructure in a given society places serious limitation on human capital development.

It is, therefore, in an effort to ensure even and accelerated development in all parts of Lagos State, that the Babajide Sanwo-Olu administration places high premium on infrastructure development. A few days ago, Sanwo-Olu administration flagged-off the continued reconstruction of the long abandoned Lagos-Badagry Expressway. The flag-off exercise, which was done by Dr. Kadiri Obafemi Hamzat, Deputy Governor of Lagos State, was wildly applauded

by Lagos residents, especially those living or doing business along the axis.

That the deplorable state of the road had been a cause for concern to the millions of road users and residents on that corridor is to state the obvious. The ‘This Day’ Newspaper Editorial of 24th June, 2109 tagged: “Fixing the LagosBadagry Expressway” and The Guardian’s “Sanwo-Olu’s Executive Orders: Walk the talk”

of Tuesday, July 2, 2019 are some recent pieces that really capture the feelings of Lagosians on the worrying state of the road.

It will be recalled that the road (Eric MooreBadagry) was conceptualized by the Lagos State Government in 1974 and constructed by the Federal Government in 1977 to inter-connect all countries of the West African sub-region as agreed upon by the Economic Community of West African States (ECOWAS). It is one of the gateways of Nigeria that connects Seme, Republic of Benin and other neighbouring countries. Due to its deplorable condition, the road is currently heavily congested, thus bringing undue stresses to commuters along the axis.

However, with the June 2ndvisit of Governor Babajide Sanwo-Olu to the project site in Alakija, where reconstruction work had terminated for four years, and his promise to mobilise the contractor, CCECC back to site within one month, the narrative was set to change.

Walking the talk, Lagos State Deputy Governor, Dr. Kadri Obafemi Hamzat flagged off the reconstruction, having re-mobilized the contractors back to site. Speaking at the occasion, he said: “This Government is pained by the unnecessary agony users of this road have been subjected to overtime, and we are determined to put the ugly experience behind us in record time”.

It gladdens one’s heart to note that, the much needed cooperation between the Lagos State and Federal Governments on this road has begun and it is already yielding positive results.

According to the plan, ongoing intervention efforts of the Lagos State Government on the

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reconstruction and upgrading of the road from 4 lanes to 10 lanes comprising 2-Toll lanes, 2service lanes, 1-Bus Rapid Transit (BRT) lane, Central reserve for 2-way Light Rail Mass Transit and various support infrastructures, will span the 22km Eric Moore to Okokomaiko.

Meanwhile, the Federal Road Maintenance Agency (FERMA) has commenced maintenance work on the 9.7km Okokomaiko to Agbara; this segment will maintain its 4 lane structure because of the need to protect highly sensitive underground national infrastructure and assets. It is instructive to state that the Federal Ministry of Works, Power and Housing is also working on the reconstruction and expansion of the 28.5kmAgbara –Seme segment of the road to 6 lanes, to ease movement on the axis.

It is expected that by the time these various projects, which are expected to be executed simultaneously are completed, current travel time on the 60 kilometer long Eric Moore to Badagry road would have reduced considerably.

Aside this, it is quite certain that current plan to upgrade the road would provide a boost for trade and commerce, enhance tourism and generate more jobs for the people. Also, social life of the people will improve while traffic induced crimes will reduce to the barest minimum, if not totally eliminated. Also, stress provoked health challenges will equally scale down while value of properties along the corridor will attract commensurate value.

The plan to open the BRT corridor on the already completed segments of the road is expected to improve public transportation on

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Adesegun Ogundeji the road, pending the extension of the rail line which will be the icing on the cake.

Of equal importance is the environmental regeneration of the entire stretch of the road which has been taken over by shanties, refuse and vegetal nuisances. The clean-up of the area, which have combined to the make the corridor an eyesore with stench constituting serious health threats to the people on that corridor, is expected to commence soon.

The appeal is to all stakeholders is to cooperate with the contractors in order to ensure speedy delivery of the project. Road users, especially, motorists are enjoined to desist from driving against the flow of traffic. Impatience can only compound the traffic situation. Market men and women, members of Road Transport Unions and other road users are enjoined to desist from needless abuse of the road, right of way as well as road set-backs.

We commend the various Military and Paramilitary formations especially, Ojo Military Cantonment, Department of State Security, Naval Officers Wives Association and the Nigeria Police for their cooperation so far. Together, we will restore sanity to the road and win back our place in the comity of Nations. God bless Nigeria.

Ogundeji is Deputy Director, Public Affairs, Lagos State Ministry of Works & Infrastructure

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Tuesday 09 July 2019

BUSINESS DAY

COMPANIES & MARKETS

COMPANY NEWS ANALYSIS INSIGHT

Market

No relief in sight for Nigeria stocks as H2 outlook disappoints SEGUN ADAMS

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hings are not looking up for the Nigerian equities market according to analysts at Afrinvest, Lagos-based investment banking firm, who said that prospects for the much anticipated stock market rally in the second half of 2019 have become bleak.

The equities market finished the first six months of 2019 with its worst firsthalf performance in 5 years on the heels of diminished growth opportunities for Nigerian companies, and the analysts say calling the market in rest of 2019 is a herculean task.

“Our perspective is that short term investors have no business with equities in the second half of 2019,”Afrinvest said in its Nigerian Economy and Financial Market outlook report titled “Next Wave of Inertia?...Better Safe than Sorry” The investment bank, however, noted that weak sentiment prevalent in the market presents enormous arbitraging opportunities

for technical traders to cash in on.

Hawkish central banks in developed markets, lingering infrastructure woes, policy drags, and elevated political risks ahead of the 2019 general elections affected the equities market in 2018 and pushed prices to attractive levels as trading opened for 2019.

Consequently, investors positioned in fundamentally cheap stocks and drove market performance preelection out of doldrums to positive regions.

Following the conclusion of the general elections held

in February, the market has failed to see much-anticipated recovery although there have been moments of brilliance in the market.

Notable among which is the listing by the introduction of Telecommunication giant, MTN Nigeria.

As a result of dampened sentiments, many stocks have established new lows and are currently priced less than they are intrinsically worth, but analysts at Afrinvest fear investors are still in search of growth triggers.

“It is not enough for a basket of equities to be cheap; what guarantees

capital appreciation that meets investors’ horizon?” the report notes. The analysts say current market pricing dynamics are likely to remain the same as the country’s risk continues to elevate compared to emerging peers given its structural lapses.

Meanwhile, high yield environment would continue to see foreign portfolio investors rotate to short term fixed income assets.

Company earnings are not expected to improve in the second half of the year, and Earnings Per Share (EPS) growth has been re-

vised to 5 percent while Price to Earnings (P/E) is expected to average 7.5x with a maximum and minimum levels of 6.5x and 8.5x respectively.

The implication is that given the median P/E estimate, the market is expected to close at a year’s return of -1.9 percent. The market as of Friday last week was down 6.87 percent.

For the global and domestic economy, the report considered that the International Monetary Fund had in April revised downwards global growth to 3.3 percent from 3.5 percent in Janu-

ary 2019 and 3.6 percent from a year ago, owing to the effects of the US-China trade war.

Analysts at Afrinvest expect Brent prices to still go higher despite moderating from a Year to Date high of US$74.9/bbl as at April 24 to US$65.2/bbl as at July 2, while they noted US Federal Reserve’s signalling no rate hike in 2019.

A jobless growth of 2.5 percent is expected for Nigeria’s economy, by the investment bank, below its population growth rate of 2.7 percent.

The country’s current account balance is anticipated to be pressured as imports expands at a decreasing rate but faster than exports while Monetary Policy Rate is being expected to be stable and inflation forecast of 11.3 percent in 2019 was maintained.

Nigeria’s signing of the Free African Continental Free Trade Area (AfCFTA) would sustain Nigeria’s trade within Africa. Afrinvest notes that there is still a lot of work to be done around the standards and processes of the agreement.

Banking

FCMB opens new Branch in Ile-Ife, Osun State …Reiterates commitment to excellent service delivery MICHAEL ANI

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irst City Monument Bank (FCMB) has opened a new ultramodern branch in Ile-Ife, Osun State. The new branch is located at 3, Akarabata Layout (along Lagere Road), Ile-Ife. The development is in line with the Bank’s strategic expansion drive and commitment towards bringing its banking services closer to the doorsteps of more people and businesses, while also promoting financial inclusion in Nigeria. This brings to 3 the number of branches of FCMB in Osun state and 206 nationwide.

The location of the branch had taken into consideration convenience for residents and businesses in Ile-Ife and neighbouring towns in the

State. Apart from the experienced financial experts deployed to the branch, it is equipped with unique physical and technological infrastructure. This combination ensures convenient transactions and sundry financial services delivery to existing and potential customers in a relaxed environment.

The new branch was commissioned at an impressive ceremony on Wednesday, July 3, 2019. Among the dignitaries that graced the occasion were the Ooni of Ife, Oba Adeyeye Ogunwusi (Ojaja II); Chairman of Ife Central Local Government, Elugbaju Olayera, traditional and community leaders, captains of industry, among other guests.

In his speech, the Managing Director of FCMB, Adam Nuru, reiterated the Bank’s commitment to strategically grow its network to meet the

individual and business aspirations of its ever-increasing customer base across segments. Nuru, who was represented by the Executive Director, Business Development, Bukola Smith, said that: ‘‘Though, most customers prefer to carry out transactions from wherever they are, using our highly convenient and secure alternate channels, such as FCMBMobile, FCMBOnline, *329# USSD code and ATMs spread widely across Nigeria, some still prefer human interaction when banking. This additional customer touch point will further boost our offerings in line with our core values of Execution, Professionalism, Innovation and Customer-focus (EPIC) in a conducive and convenient environment’’.

The Managing Director assured that while the Bank will sustain the pursuit of its

digital banking agenda as a forward looking financial services operator, it will continue to support the financial inclusion vision of the Central Bank of Nigeria, CBN by ensuring that every customer is adequately served on any channel in which such services are needed to meet their respective lifestyles, needs and experience.

Also speaking, the Divisional Head, Service Management & Technology of FCMB, Oluwakayode Adigun, said: “Our Ile-Ife branch, just like other branches of FCMB across Nigeria, brings with it, something special in terms of structure and aesthetics. Part of our commitment to promoting a cleaner and greener environment, is by use of renewable energy and in this new branch, we have adopted solar technology which is a clean energy solution that pro-

duces minimal waste, is nonpollutant and great for the environment. In addition to this, the Branch will also offer excellent customer experience provided by our team of professionals. We are committed to scale our operations, build the requisite capabilities and deploy the best ways to simplify banking for customers, using our robust technology platform’’.

In his goodwill message at the ceremony, the Ooni of Ife, Oba Ogunwusi, described the opening of an FCMB branch in his domain as another milestone in the annals of the historical city, which is acknowledged as the cradle of civilisation. He stated that: ‘’The coming of FCMB to Ife is a welcome development that will further boost economic activities of our people.

The Bank has a track record of performance and support to

individuals and businesses. In the whole of Ifeland, this is the most beautiful Bank as we all can see. I implore our people to patronise FCMB. We also urge the Bank to extend the support it provides in other areas to Ifeland’’.

In the same vein, Governor Gboyega Oyetola of Osun State, who was represented by the Chairman of Ife Central Local Government, Elugbaju Olayera, hailed FCMB for its commitment to national development through various forms of support to the private and public sectors. According to him: “We commend the effort of the management of FCMB for deeming it fit to site a branch in Ife. The establishment of the Branch will go a long way to improve the economy of Ife and its environ and I have no doubt that our people will transact business with the Bank”.

Editor: LOLADE AKINMURELE (lolade.akinmurele@businessdayonline.com) Graphics: David Ogar

Tuesday 09 July 2019

COMPANIES&MARKETS

BUSINESS DAY

15

Business Event

Technology

Low, medium income earners to benefit as LandWey partners PiggyVest to ease land ownership IFEOMA OKEKE

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n a bid to create entry paths for virtually any Nigerian within low and medium-income brackets to actualize their dream of premium land ownership, Nigeria’s most innovative real estate company, LandWey Investment Limited has collaborated with PiggyVest, the largest online savings & investing platform in Nigeria.

Land as well as home ownership is a dream most Nigerians share, but seeing the low ownership rate in Nigeria there is a major housing deficit to be bridged.

The major issues that bring about this low rate include the high cost of securing and registering secure land title, inadequate access to

finance, slow administrative procedures and the fledgling state of the mortgage finance industry in Nigeria with loan repayment costs remaining prohibitively high. This scheme will bring relief and succour to many Nigerians looking to own land and build their dream homes.

Speaking on this novel initiative, Olawale Ayilara, the CEO/ Founder of LandWey Investment Limited, said: “We cannot talk about bridging the housing deficit in Nigeria, without talking about accessibility. Accessibility is key and central to the conversation to make land ownership for Nigerians an attainable dream regardless of their income levels.

“The purpose of the partnership bears in mind that people

save for several reasons, and on a trusted platform such as Piggyvest people can take little steps and buy real estate as either an investment or to be built in future. There has also been huge demand for land in fractions and with a platform like Piggyvest comes an advantage to access and own a piece of 100 percent genuine property.”

Also speaking about the initiative, Somtochukwu Ifezue, the CEO of PiggyVest expressed that the “initiative is a highly remarkable partnership with LandWey. As the two brands have come together to ensure everyone and especially young people can own a piece of land as little as one square metre with a very small amount of money.”

L-R: Matthew Daniel, student of Wesley School; Olusegun Alebiosu, chief risk officer, FirstBank; Seyi Olusanya, student of Wesley School; Adesola Adeduntan, CEO, FirstBank; Olayiwola Adeola, student of Wesley School, and A.K. Alimi, principal, Wesley School 1, at FirstBank’s visit to Wesley School for the Hearing Impaired at Surulere, Lagos as part of activities marking FirstBank’s CR&S week 2019.

Technology

French Start-up Kwik eyes last-mile delivery in Nigerian urban areas JONATHAN ADEROJU

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he Kwik app comes with an integrated geolocation system and offers an efficient transportation service for small packages (up to 25kg) or documents Launched on the 26th June 2019 on both Apple Appstore and Google Play by the French start-up Africa Delivery Technologies, the Kwik app aspires to quickly become the Number #1 of last-mile delivery services in Nigeria.

According to Romain POIROT-LELLIG Founder & CEO of Africa Delivery Technologies (ADT), developer of the Kwik app “Kwik aims to become the first platform for last-mile delivery in urban areas in Nigeria before extend-

ing its scope to neighbouring countries. We’re targeting 100,000 deliveries per day in three cities before 2021”, Kwik connects independent delivery partners, either owners and/or drivers of a vehicle, with customers who need reliable, affordable and flexible delivery solutions.

The Kwik app comes with an integrated geolocation system and offers an efficient transportation service for small packages (up to 25kg) or documents, following the same model as Go-Jek, Uber or Taxify.

Kwik’s value proposition is simple and straightforward: to ensure the fast, reliable and efficient delivery of a package or envelope in Lagos, Nigeria’s business

capital. Currently, Kwik’s competitors offer a service that takes 12 hours and costs between 2,000 and 3,000 nairas (4-8 euros) per delivery from Lagos to Lagos. Kwik promises to offer a service of higher added value within 2 hours and for a third of the price, with an integrated geolocation and proof of delivery system that offers the highest degree of security available on the market.

The service offered by the company is available through the Kwik app or via a web browser. The couriers are geo-located in real-time.

The payment can either take place beforehand by credit card via the Nigerian fintech Paga’s system (12 million users) or in cash.

SON presents MANCAP certificate to Binatone DAVID IBIDAPO

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t was a moment of joy and fulfillment for the Management and Staff of Global Appliances Nigeria Limited, the Manufacturers and distributors of Binatone Products in Nigeria as the company was formally presented with the Mandatory Conformity Assessment Programme, (MANCAP) Certificate by the Standards Organization of Nigeria, SON last week.

At a brief but impressive ceremony which took place in the company premises last weekend, The Managing Director of Global Appliances Nigeria Limited, (GANL) Prasun Banerjee received the certificate from the State Coordinator of SON Lagos State III Office, Amuwo Odofin area, Mr Omotosho Ayodele with a promise to ensure compliance with all rules and regulations as specified by the organization.

“We have been working on getting this certification for

about four or five years now. I am happy that we got it today.

With this certificate, I am sure that our customers will have more confidence on our products, we will have the logo on all our products and we promise to comply with all the rules and regulations of production as specified by the Standards Organization of Nigeria” he said.

The Mandatory Conformity Assessment Programme (MANCAP) is a mandatory product certification scheme put in place

by SON to ensure that all locally manufactured products in the country conform to the relevant Nigerian Industrial Standards (NIS) before such products are presented for sale in the market or exported.

The scheme which is renowned and applauded by the industrial sector started in 2006. It is aimed at ensuring compliance of Made-in-Nigeria products to the minimum requirements of the Nigerian Industrial Standards (NIS) or Code

of practice thereby promoting fair competition at both domestic and international markets, as well as safeguarding the safety and health of consumers in the overall interest of promoting economic and industrial development of Nigeria.

Speaking earlier, Ayodele Omotosho congratulated GANL for getting certified, pointing out that the process for getting the certificate was not an easy one because it comes after compliance with all the rules and regulations as set out by SON. “We are usually not in a hurry to give this MANCAP Certificate to just any company if the company has not complied with requirements. It requires a lot of compliance with the rules and regulations. I am happy and I appreciate the fact that a renowned company like Binatone has fulfilled all requirements to get this certificate. I urge you to continue to comply with all regulations as the certificate is given to you on loan and can be withdrawn.

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L-R: Gloria Gbemudu, Ignite Project manager, International Coach Federation Nigeria; Abel Olayinka, vice chancellor, University of Ibadan; Adenike Adeyemo, deputy vice chancellor (RISP); Titi Akisanya, president, ICF Nigeria Chapter, at the launch of IGNITE project and MOU signing at the University of Ibadan, Oyo State.

L-R: Emmanuel Isangediok, marketing manager, SPAR Nigeria, presenting the award of the ’Best Child Actor’ to Mariam Kayode for her role in the film titled “The Coffin Salesman” with them is Ekponoimo Iphyyok Inuenekpo, team member, RealTime Films Festival, at the Real Time Film Festival in Lagos.

L-R: Ighoakpo Eduje, chief information security officer, Heritage Bank plc; Olufemi Fadairo, head, industry security services, Nigeria Inter-bank Settlement System, Adedoyin Odunfa, MD/CEO, DigitalJewels Nigeria Limited; David Isiavwe, group head, operations and technology, Ecobank Nigeria and president, Information Security Society of Africa, Nigeria (ISSAN); Abumere Igboa, chief information security officer, Stanbic IBTC Bank: Bharat Soni, chief information security officer, Guaranty Trust Bank plc, and Harrison Nnaji, chief information security officer, Firstbank Nigeria plc, at a Special Industry Round Table Event with chief information security officers in Nigeria,Theme: Cyber Warfare: Winning the Raging War, organised by DigitalJewels Limited and ISSAN, in Lagos

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16

Tuesday 09 July 2019

BUSINESS DAY

Media business Strengthening CEOs, CFOs, CMOs relationships for organisational growth Stories by Daniel Obi Media Business Editor

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ajor issues that keep Chief Executive Officers awake are declining revenue, increasing operational cost and consequently, no profit. In this circumstance and spite of any economic and environmental challenges, the troubled CEO turns round to hold the Chief Marketing Officer responsible for not selling enough of the products or services to augment revenue.

The perplexed CMO, in turn, is at cross roads as his/her budget and other resources for marketing activities which are expected to engage consumers and increase sales are often slashed by Chief Financial Officer and approved by CEO. To CEO and CFO, their intention of slashing the CMO budget is to reduce operational cost, save money and make profit. Good intention, though the misunderstanding here is that the CEO and CFO are not immediately conscious of the translation of investment in marketing to revenue or the CMO has not shown such proof enough. Most companies often visit the CMO budget for cut when things are not going well. Presently, the CMO budget is perhaps going up because he has to contend with various social vagaries which were non-existent before now.

According to Chris Ogbechie, Senior Faculty Officer, Lagos Business School at a recent lecture, the CMO is today contending with turbulent environment occasioned by changing consumer needs, social values, and competition from both global and local markets and dropping consumer disposable income.

Companies especially those in the same sector are also competing on profits. Under this scenario, the CMO is under pressure and therefore he/she is asking for more financial resources to conquer and meet expectations. Above all, he/ she also needs innovative strategies. But the challenge at this time is that the CEO and CFO are not sure that the allocation of more resources for activities will translate

L-R: Veronica Onoja, customer service director, Bolaji Abimbola, Airtel Nigeria; managing director, Integrated Indigo Limited; Modupe Ajayi, wife of the publisher, Marketing Edge Magazine; Ngozi Okoye senior, PR executive, Integrated Indigo Limited, and Olamide Bakare, senior Media relations executive, Integrated Indigo Limited, during the presentation of the award for the ‘Outstanding PR agency of the Year’ to Integrated Indigo Limited at 2019 Marketing Edge Brands and Advertising Awards for Excellence held in Lagos.

to increase in sales, revenue and profitability. Perhaps there is no market research evidence.

In a different forum, Doyin Salami, CEO of Kainos Edge Consulting corroborated Ogbechie’s view. The economist who spoke to marketers at a forum on ‘Business growth in a volatile Economy: Facts versus Myths organised by Advertising Association of Nigeria, ADVAN recently in Lagos said presently, Nigeria is a peculiar market with huge disparity of income, declining share of consumption, poor performing sectors and poor infrastructure which have forced the consumer to behave in a particular way.

The argument therefore between the three key officers is usually informed when they see themselves as playing dissimilar roles when in fact they are playing similar role – marketing with different languages – for the company. Their major targets are sales, more revenue and profitability and company growth.

It is believed therefore that with

the continuous erroneous understanding of contradictory roles among the three management officers, the company will continue to suffer sales decline and revenue which will eventually lead to mass retrenchment with its attendant social implications.

To checkmate this trend and enthrone a cohesive relationship among the key officers, Advertising Association of Nigeria, ADVAN was spurred to hold the tripartite forum involving CEOs, CFOs and CMOs, geared towards understanding each other towards contributing to the growth of companies.

Folake Ani-Mumuney, President of ADVAN explained that the forum was organized to enrich marketers’ understanding on how businesses can drive for profitable growth in volatile economy.

She specifically told BusinessDay that the idea was to create deep understanding among companies’ management officers for business growth.

“We want to learn more in order to contribute to the growth of our organisations. Two things emerged from the forum; one is to share a common language with the leadership of organisations as co-executives on broad areas of leadership areas.

“We (marketers) cannot be pulling in one direction when the leadership is pulling in another direction.

We also want to close any gaps that exist by ensuring that we fully market our positions. We also need the organisation to learn our own language”, she said.

Closing any existing gaps among the management is key and significant in organisational growth as the three key officers need to understand a bit of each other’s functions.

This is better than creating unnecessary adversarial roles as if one function is better than the other in company’s growth. The three key officers are pounding in one mortar, and therefore need to understand each other’s strength, strategies and focus in pounding well.

Stanbic IBTC in search of new PR agency

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anagement of Stanbic IBTC is combing Nigeria’s public relations industry in search of a reputable new PR agency to handle its marketing communication affairs.

In this connection, the 30 yearold financial service company recently called for a pitch for the PR account where five Nigerian agencies all based in Lagos participated.

Industry investigation showed that agencies that participated included XLR8 which has handled the PR account of the bank for over 10 years. Others were Chain Reactions, MediaCraft, TPT International and H&K. Attempts to reach the bank for more information on the pitch last weekend were not successful but industry sources said the bank may be looking for a new agency, perhaps for new ideas and negotiation of new fees. The bank is yet to announce the winner of the new account after the competitive bidding.

AAAN goes for re-birth, selfevaluation at 46th congress in Asaba

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he Association of Advertising Agencies of Nigeria will hold its 46th Annual General Meeting (AGM)/Congress this week in Asaba, Delta State with major purpose of re-assessing itself for future.

According to a statement, the congress, which has as theme “The War Within: Solutions for Survival”, will be declared open by the Governor Ifeanyi Okowa of Delta State.

Captains of the industry, top business leaders and policy makers within and outside the marketing communication industry are expected at the AGM. AAAN President, Ikechi Odigbo, said in the statement that the Association aims to use the AGM as a platform to engage in intellectual and critical discourse on the challenges facing the business and practice of Advertising in Nigeria and advocate unorthodox solutions in rebuilding and rebranding the industry.

Brooks and Blake, Indigo, BHM jostle for multi-million Naira Coke PR account …Other companies planning for pitches

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hree reputable Nigerian public relations agencies – Brooks and Blake, Integrated Indigo and Black House Media, BHM are jostling for the multimillion Naira Coca Cola Nigeria public relations account.

BusinessDay gathered that Coca Cola recently called for a pitch for the account. It was not immediately clear whether Africa Practice,

another PR agency participated in the pitch as the agency’s contract with the multinational company was said to have expired last two months.

Industry source said the pitch process is on the second round of selection of the winner. “The pitch process is progressing” said another reliable source as Coca Cola is on the final stage of announcing the winner www.businessday.ng

based on various factors including competence, experience, professionalism and fee which is based on negotiation.

It was also gathered that some other companies are indicating interest of either changing their agencies or calling for fresh pitches for media agencies.

Coca Cola, the global foremost beverage brand, early this year com-

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pleted the acquisition of Nigeria’s Chi Limited, top juice company.

The value of the complete acquisition was put under wraps but in 2016, Coca Cola made initial equity investment of 40 per cent in the company estimated to be in the range of $300 m to $400 million while analysts as at 2016 put the value of Chi at about $1 billion.

After the acquisition of 40 per@Businessdayng

cent equity, Cola-Cola indicated plans to increase ownership to 100 percent within three years, subject to regulatory approvals, while working on other long-term commercial structures. This was completed early this year. Chi, makers of Chivita juice brand and Hollandia yoghurt, is the market leader in juices and value added dairy and its product portfolio includes iced teas and snacks.

Tuesday 09 July 2019

BUSINESS DAY

17

ADVERTISING Halogen Security re-brands, embarks on innovative digital security solutions Daniel Obi

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alogen Security Company Limited has rebranded into Halogen Group with the emergence of six operating companies created to offer core expertise in distinct areas of security risk solutions.

The new Halogen Group designed to provide integrated, end to end security solutions to enterprise clients and individual consumers alike, is established to comprehensively address emerging complexities of security risks resulting from the dominance of technology and digital connectivity in today’s lifestyles and businesses.

The company’s Group Managing Director and CEO, Wale Olaoye explained that the very nature of security risks has fundamentally changed due to a new openness of society linked to the evolution of digital technologies. He further explained that in today’s world, the borders between physical and virtual spaces and the distinctions between tangible and non tangible assets have disappeared and everyone is now exposed, compounding security risks and anxieties.

“Offering a value proposition of Safety in an Open World, ensure safety in an open and continuously volatile world, and helping people combat increasing levels of anxiety define its reason for being”. Explaining that when individuals and businesses feel safe and anxieties related to security are eliminated or reduced, every human being feels empowered to pursue the achievement of their personal goals and life purpose.

For this reason, he further said Halogen has defined its reason for being in a 3 pronged promise namely: forestall threats, mitigate anxiety and thereby empower achievement.

The Group’s new companies

launched are: Avert Halogen, a digitally connected remote surveillance & monitoring solutions company; Avant Halogen, identity management, risk consulting and resourcing focused company; PS Halogen, manned guarding and event management; Armour X Halogen, a virtual and cyber security company; Armada Halogen, secured Mobility company and Academy Halogen, Halogen School of Security Management & Technology institution.

Speaking at the event attended by top multinational businesses across different sectors of the economy, the founder and Chairman, TROYKA Group, Biodun Shobanjo who commended national security forces said Halogen efforts is to assist them in securing lives and property.

In a key note address at the occasion, Jimi Awosika, Group CEO of Troyka Holdings, Halogen’s parent company, described universal digital connectivity and the openness it brings as the greatest disruption to the dynamics of life and business in recent history. According to him, Halogen’s successes in its first 27 years provides clients and consumers faith in the brand that it will deliver on its promise of safety in an open world.

Marketing Edge Award: Indigo emerges Outstanding PR Agency of the Year

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ntegrated Indigo Limited, one of Nigeria’s leading Public Relations and Event Management Consultancy firm has once again emerged as the winner of the Outstanding PR Agency of the Year category at the just concluded 2019 Marketing Edge Brands and Advertising Excellence Award held recently in Lagos.

Speaking while presenting the award, the Chairman of the Day, George Thorpe described the process leading to the selection of Integrated Indigo Limited as a product of painstaking search which placed the agency ahead of its peers on varying parameters.

According to him, Indigo has proven to be a force to reckon with by any firm seeking excellence in the marketing communication industry through its creativity and limitless passion to provide top notch services for its clients.

Receiving the award on behalf of the company, the Managing Director of Integrated Indigo Limited, Bolaji Abimbola expressed the company’s profound appreciation to the organizers saying that the honour has affirmed the hard work of the agency is making significant impact on the business of its clients.

“We are very delighted to have

been recognized once again by Marketing Edge for all our contributions to the growth of the PR industry. This award bears testimony to the fact that our works are now making huge impacts on the brands we handle for our clients. For us, kudos should go to the clients for the confidence and trust they have placed on us in offering our service. As a company, we would continue to deliver exceptional services and value to our clients’ businesses” he said.

Abimbola further charged the team to continue delivering on its promise to clients and proffer initiatives that would help establish the agency as a big force in Africa.

Visa and football share common attributes of team-work, inclusiveness, passion – says Okusanya Visa is world’s foremost operator in digital payments with mission to connect the world through the most innovative, reliable and secure payment network - enabling individuals, businesses and economies to thrive. Under its CSR, the company has signed as the exclusive player-escort- program partner for the 2019 Total Africa Cup of Nations tournament taking place in Egypt. Kemi Okusanya, the Country Manager and Vice President, Visa West Africa talks more about the sponsorship. Excerpts.

Recently, Visa hosted a viewing event for one of AFCON matches involving Super Eagles, why did you invest in that gesture? isa hosted the viewing event for Super Eagles’ last group stage match at the AFCON tournament taking place in Egypt. We did this because we actually have sponsorship of the AFCON asset and this is something we are doing across Africa. We exclusively own the player-escort programme of the tournament which is why viewers will see on TV all the player-escorts have the Visa T-shirt on Do you have other intention for the sponsorship?

Apart from the fact that we are sponsoring the tournament, for us this programme is beyond sponsorship, it is about the opportunity for us to transform lives and economies. We have been sponsoring football for a very long time. We are proud worldwide sponsor of Fifa World Cup and we started doing this in 2007. It is also evident as you can see from Fifa women football that Visa brand has been strongly associated with this because we also have this as one of our football assets.

On AFCON 2019, what is your take so far?

It has been an interesting tournament. AFCON is the third largest football tournament across the world.

We think it is one of those few sponsor-

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ship assets that can cut across wide audience across Africa and globally and that is why we are associating with it. When we think of our brand, one of the things we see that is similar to what AFCON represents is the inclusion. You will see that in Africa there is unification, collaboration. Football is about team. What I love about football is that it is a team work. This is what Visa stands for. We talk about reliability from the sense of football. We also talk about football spirit which is universal.

For us, we also stand for universal acceptance. This is one of the areas and reasons we sponsor football. Another reason we engage in this sponsorship is that the player escort programme which is our asset gives us the opportunity to engage in a lot of CSR and football grassroots sponsorships. We have done a lot of that and we have a lot of children we sponsored from Nigeria, about five children and some of them came through a campaign we did on social media which we tagged

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the Unstoppable stories and we had children with great amazing stories.

Why you are particular about football, is because of its inclusiveness?

It is about its inclusiveness and it is about the fact that it connects to a wide audience and the spirit of passion that we see which is unique and identifies with our brand Visa is a payment platform and what is the connection to football?

Typically, tournaments are organised at a location and naturally people will travel from their destinations from all over the world to the venue.

Sometimes when people travel they find it difficult to make payments for hotels, food and other things as tourists. This is where Visa comes in. Because we are the exclusive payment platform for the tournament, what this means is that we are enhancing and providing the platform to make it work. Secondly, the beauty for us is that the merchants in those cities where the event is taking place will have huge opportunity to give the platform to people to connect all over the world. For them, this is bringing more businesses and they are excited about the opportunities we are bringing. Another thing we see is that since we work with banks across the world, this asset ensures that these banks have value they can give back to their consumers. A lot of banks who participated in this campaign are @Businessdayng

bringing value to their customers and driving financial inclusion.

So, it is not only visibility for Visa but the products associated with the programme It is about how we are transforming lives and economies through this asset.

Why you are particular about the children escort programme, is it to catch them young?

For us there are memories created in the minds of these children. From the feedback we received, these are things they will never forget. For us, we use more of escort programme for grassroots football sponsorships and also for CSR. The aim and a lot of our sponsorship for this is get the children from young age. There is something unique about each of the children and we want to ensure that these children believe that there is something out there for them in the future that they can continue to pursue, and be those heroes they want to be tomorrow.

Could talk about the value of the sponsorship in terms of actual amount spent?

Unfortunately we don’t disclose that because it is not about the amount but about supporting African football. We believe so much in Africa and we have been in Africa since early 1990s and we will continue to believe that there is so much goodness in this continent and we will assist in developing it.

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BUSINESS DAY

Taking risks early in career pays off long-term Getting outside your comfort zone may be the best way to be noticed and promoted Elizabeth Uviebinene hat is the biggest risk you’ve ever taken?” is never an easy question to answer at a job interview.

For a start it assumes that you have taken a few. I have taken risks in my career, including relocating to another city to take on a newly created position and my biggest risk to date: leaving a secure corporate job to take a career break and pursue life as an author, speaker and freelance creative.

But by making these decisions I effectively ignored most of the career advice I received when I started out. People I spoke to generally recommended that I work hard, avoid drawing too much attention to myself and “play it safe”.

Yes, hard work is an essential part of getting ahead but so is making strategic career moves, which will probably have some risk attached.

Large numbers of professional self-help books sell precisely because they aim to give us the tools to navigate these decision points and take risks that will lead to career progress.

But sticking your head above the parapet takes courage and can make you feel uncomfortable. Women in particular seem to be somewhat risk averse.

A 2019 KPMG study suggests women looking to move into leadership positions in today’s business world may benefit by taking more risks over the course

opportunities that will help you develop new skills — can help some women to greater career advancement.

Nor I am suggesting that taking risks requires women to take on more work.

A recent study on employee wellbeing and workloads has showed that longer hours did not improve either productivity or creativity, it just creates the perfect conditions for burnout.

Sorry, Elon Musk, working 120 hours in a week is simply not healthy.

The KPMG study also revealed that not all women are equally risk averse: 57 per cent of the women of colour interviewed were open to taking big risks to further their careers

compared with only 38 per cent of white women. I wasn’t surprised by this.

Women of colour are all too aware that we do not look like the people who overwhelmingly make up the majority of today’s business leaders — white men — and that getting ahead will require bold moves.

We know that competence alone won’t suffice since incompetent people become leaders all the time. Just as we know that being vocal about what we want and putting ourselves forward is a risk but so is sitting quietly and taking a back seat.

Stepping outside of our comfort zones is challenging for everyone and the fear of failure was a barrier I had to overcome

in order to make some of my riskier decisions.

I would play a “Doctor Strange in Avengers: Infinity War” style game in my head — imagining millions of potential outcomes and debating the downside as well as the upside of each one.

Ultimately, the question I’d ask myself was, if I stick to this “safer” path would I be OK with the inevitable outcome? The fear of “settling” increased my appetite for risk.

That said, I do not intend to diminish the courage that is needed to take chances.

People do not take risks in a vacuum and all risks are not made equal.

Especially given that workplaces often still demonstrate structural bias and treat their employees unequally. It will be easier for women, and all employees, to take more risks when they feel more empowered and supported across the board.

Taking a chance does not always result in things going to plan. But dealing with obstacles and unforeseen pitfalls builds resilience — an essential leadership skill that can only really be learnt by experiencing challenge. It’s always going to be what people do after a setback that really counts.

The career advice I would give to those beginning their professional lives is — work hard but don’t forget to look for the opportunities to take a leap rather than just the next step. Chances are you’ll get further for it.

•Elizabeth Uviebinene is co-author of ‘Slay In Your Lane: The Black Girl Bible’

we build an organization where creativity will always thrive? As someone who has loved every film his organizations have produced, I can only hope that catalytic question will continue to be embraced by his colleagues.

Thanks to those of you who read my recent article in MIT Sloan Management Review, arguing that the “digital transformations” so many companies are undergoing are not just about deploying computers to produce better answers. As John Donahoe (former eBay CEO, now leading ServiceNow) told me, anyone retooling a business should revisit the underlying questions: “Have we identified

and framed the core issue in the right way? Instead of solving for X, should we be solving for Y?” On a personal basis, the highlight of my month had to be the arrival of my new book, Questions Are the Answer: A Breakthrough Approach to Your Most Vexing Problems at Work and in Life. If you follow me on Twitter, you might have seen my sheer joy upon opening the box. For the rest of the world, the on-sale date is November 13and you can order your copy here. You can view a preview of the book here.

Finally, looking into November, some of the biggest questions for Americans are on the ballots next week. I’m a believer in ques-

tioning just about everything, but there is one thing I don’t consider up for debate. YES, YOU SHOULD MAKE TIME TO VOTE. Please feel free to forward this to anyone in your own network who likes to think about creativity, problem-solving, innovation—or any of the many areas of work and life where coming up with the right question can make all the difference.

•Hal Gregersen, is Executive Director at MIT’s Leadership Centerand a senior Lecturer in Leadership & Innovation, MIT Sloan School of Management. He is author of the book, Questions are the answer.

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of their careers.

Fewer than 43 per cent of those surveyed were willing to take big risks such as moving locations for a new job, switching careers, going for a high-profile project, volunteering to do a big presentation or asking for a pay rise.

Yet employers increasingly are looking for flexible, curious and resilient individuals who are innovative and happy to step outside their comfort zone.

For women looking to take on leadership roles, avoiding risk in favour of playing it safe could prove the riskier strategy.

I am not advocating for a Russian roulette style approach to a career by any means. But making riskier choices — embracing

Thanks for asking

By Hal Gregersen

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riends, here’s a new edition of Thanks for Asking, in which I pass along thoughts related to my favorite topic: learning to ask better questions. I promise to keep this newsletter short.

First, a recommendation to read Stephen Hawking’s final book, Brief Answers to the Big Questions, which came out recently thanks to his family’s efforts to complete it after his death last March.

The claim here isn’t to provide the last word. Even Hawking can’t definitely solve a mystery like “Is there other intelligent life

in the universe?” I think his real intent is to spur the rest of us to keep asking about the things that will matter most to the future of humanity. “At the end of all this,” he writes, “I want to share my excitement about these big questions and my enthusiasm about this quest.”

October also brought the bittersweet news from my friend Ed Catmull that he is retiring from Pixar and Disney Animation, after a career there I can only describe as storied. Ed started out with one big question driving his work—Is it possible that a feature-length film could be animated entirely on a computer?—and later shifted to another, even bigger one: How can

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Tuesday 09 July 2019

BUSINESS DAY

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What UK business schools fear most about Brexit Students applications remain strong but staff recruitment is suffering

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the costs of education and living.

Yet UK business schools have slightly increased their share of GMAT results being sent to them from around the world, from 4.4 per cent of the total in 2016 to 5.4 per cent in 2018.

The figure fell in just one region — western Europe, which dropped to 12 per cent from 12.2 per cent over the same period — while applications from eastern Europe rose.

The international picture remains more positive for UK universities. The share of candidates who said the UK was their first-choice destination increased from 41 per cent in 2016 to 55 per cent 2018, according to the GMAC survey.

Growth was particularly strong in the Asia-Pacific region.

“We’re alert and not complacent, but we have not seen an effect on our main flagship MBA programme,” says Kathy Harvey, associate dean at the University of Oxford’s Saïd Business School.

She adds that the school’s MBA attracts 53 nationalities, which is “not typical of the market”. This helps as it means Saïd is less dependent on EU citizens to bolster its numbers.

At Imperial College London’s business school, dean Francisco Veloso has seen no decline in EU student applications, which he attributes to the school’s strong www.businessday.ng

‘‘

Just over half (51 per cent) of non-UK European candidates surveyed said they were less likely to study in the UK because of Brexit, citing concerns over the availability of visas, as well as the costs of education and living

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hen voters in the UK opted to leave the EU in June 2016, there were fears that student applications to masters in finance (MiF) courses at UK business schools would fall. Yet, despite those concerns, this has failed to happen in any significant way so far.

Angus Laing, dean of Lancaster University’s management school, says that the number of overseas EU students who are interested in taking its MiF programme has fallen modestly, by about 5 per cent this year — most notably those from France and Germany.

“We’re seeing global demand continuing to be buoyant, but the mix is changing,” he says.

“There is a decline in the number of European students overall, although there has been growth from south-eastern Europe — from Romania and Bulgaria.”

Yet while student applications to MiF courses and MBAs remain healthy, business schools are still uncertain about what the effects of Brexit might be, particularly on their ability to attract and retain academics and what it could mean for research funding.

“It’s important to avoid hyperbole, but there is a much higher level of nervousness about the UK educational environment,” says David Allen, pro-vice chancellor and executive dean of the business school at Exeter University.

“When I travel, people express concern about the UK leaving [the EU]. There is a general lack of certainty.” The Graduate Management Admission Test (GMAT) is an entry exam for students who want to apply for a graduate business degree.

While it is mostly used for MBA candidates, it is indicative of the health of the broader admissions market for UK business schools.

At the end of last year, the Graduate Management Admission Council surveyed candidates taking the GMAT, to track their interest in studying in the UK. Just over half (51 per cent) of non-UK European candidates surveyed said they were less likely to study in the UK because of Brexit, citing concerns over the availability of visas, as well as

reputation.

“The power of the brand weighs more significantly than the environment,” he says.

But he warns that greater economic uncertainty in the event of a hard Brexit could change this.

François Ortalo-Magné, dean at London Business School, points to one factor that might explain why EU student numbers have proved resilient: the weakening of sterling since the referendum, which has lowered the relative cost of courses at UK institutions.

He adds that many businesses in London’s financial centre — long favourite destinations among his graduates — are finding LBS ever more appealing. Concerns over Brexit mean

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these companies are struggling to recruit people from elsewhere in the EU. Those already studying at the school have made more of a commitment to the UK, Prof Ortalo-Magné argues, and are more amenable to remaining in the country after their studies.

But he warns that while a weak pound has helped maintain British schools’ appeal among overseas students, it has deflated, in relative terms, the value of faculty salaries, especially compared with LBS’s dollar-denominated competitors in the US. Prof Veloso at Imperial says he is not yet able to match US @Businessdayng

salaries, although he has sometimes put together bespoke remuneration packages with executive education and other consultancy payments to make jobs more appealing.

Others schools have also struggled to recruit and retain EU faculty under the shadow of Brexit.

“We spend a lot of time talking to staff,” says Prof Allen at Exeter.

“A couple of applicants have said it’s not the right time to come.” Prof Laing at Lancaster agrees.

“We’re not getting applications at a senior level the way we used to, and a small number have decided to head back to their own countries, citing family issues,” he says.

He adds that there are concerns about a squeeze on EUfunded research, too.

He cites cases where faculty members are leading fewer research projects and have less funding.

After Brexit, the continued role of UK-based academics in EU projects will be still more fragile.

While applications remain resilient, a less diverse faculty with more research funding pressures could yet weaken the appeal of British schools both to European and global students.

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Tuesday 09 July 2019

BUSINESS DAY

EDUCATION Weekly insight on current and future trends in education

Primary/Secondary

Higher

Human Capital

Professionals, educationists advocate effective youth empowerment to boost Nigeria’s competitiveness Stories by KELECHI EWUZIE

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rofessionals, educationists and industry experts at the silver jubilee anniversary lecture of Olashore International School, Osun State have called for a more robust youth empowerment engagement to serve as catalyse to improve Nigeria’s global competitiveness.

Christopher Kolade, former Nigeria High Commissioner to the United Kingdom called for Nigerian youths to be given the capacity to learn effectively adding that this represents a strategic process to bring up successful leaders and ensure a better society.

Kolade, in his chairman speech at the event held in Lagos opines that unless youths are trained to apply the things that they learn, they may not be able to change our society the way it ought to be.

According to him, “One of our problems in this country is leadership. We lack the capacity to learn effectively and we keep doing the same thing year after year with an expectation that things would change. Our role is to see what we can do to solve the existing problem through a capacity to learn.”

Fred Swaniker, founder, African Leadership Academy in his keynote address, ‘Leadership and Social Change: Developing 21st Century Leaders for Africa said he believes that every society needs good leaders and that the difference they will make will go a long way.

Swaniker is worried that Africa does not

L-R: Marniee Nottingham, country Examinations manager, British Council Nigeria ;Kanto Adesina, Territory Manager, Nigeria Cambridge International; Peter Thomas, Head of Mission, British Deputy high commission Lagos and Lucy Pearson, country director, British Council Nigeria at the 2019 of British council recognition and outstanding Cambridge Learner Awards in Lagos.

have strong institution as a result of bad leadership, adding that Rwanda has gone ahead of other African countries despite its genocide issue and was able to surmount its challenges in 25 years because of good leadership.

“In this continent, we must not lose hope despite all the challenges that we see. We need a sense of urgency in Nigeria which has taken over from India that has the highest number of people in extreme poverty in the

world”, he said.

He further said a nation could create conditions for young people to grow as leaders and drive change rather than wait for institutions to do so.

“The role of an institution like Olashore to develop good leadership cannot be overestimated, it is a necessity. Our perspective is that leadership is not something you can teach, but can be learnt. We need to instill in the

youths the confidence and sense of service that will make them to serve others rather than enriching themselves,” he said.

Swaniker in his lecture outlined some traits that make a good leader to include having passion to solve problems; having an imagination and inspiring people; being guided by values, as well as having courage and resilience.

“Transforming Africa cannot be achieved overnight ; it starts by transforming the youths. We cannot continue to do things in the conventional way, but through innovation. Leaders need to be put in challenging circumstance so that they can be relevant.”

On his part, Oye Ibidapo-Obe, former ViceChancellor, University of Lagos, insists that Nigeria has the responsibility to change the narrative through reorientation of the youths.

Speaking as a guest lecturer on the ‘Role of Education in Philanthropy and Community Development’, Ibidapo-Obe said creating confidence in the minds of young people, giving our time and sharing knowledge with them are some of the requirement needed to support philanthropic gesture.

He further described the 25th anniversary as a call to total restoration of values, while stressing the need to teach young people to be innovative by using humanities to transform the society.

In her remarks, the Chairperson of the foundation, Olapeju Sofowora recalled the school’s achievements in the last 25 years, saying that it has been able to produce a dynamic group of leaders who are transforming the country.

Private school operators urged to improve facilities to meet global best practice

Albesta Academy student displays dexterity to win Tolaram Science challenge

…as TOAMY school holds open house

lbesta Academy, Eleko, Ibeju-Lekki, Lagos student displayed exceptional science dexterity to emerged winner of the 2019 edition of the Tolaram Science challenge for the fourth time in a row.

The Tolaram Science Challenge is a science-based competition among schools in the Ibeju Lekki axis of Lagos state organised by the Tolaram Group as part of the group’s Corporate Social Responsibility initiatives aimed at developing and promoting science education amongst the students of the area.

Albesta Academy emerged winner by defeating Community Senior High School, Lekki in a keenly contested grand finale of the 2019 edition of the competition which was sponsored by the Lagos Free Trade Zone Company (LFTZC) and the Lekki Port LFTZ Enterprise Limited (LPLEL) A total of 14 secondary schools participated in the 2019 edition of the competition, which is the fourth edition from group stages to the grand finale. Eight (8) students represented each of the schools in the competition. The students were drilled in five core subjects namely; Physics, Chemistry, Biology, Mathematics and General Knowledge.

Apart from the scholarships support given to the best students from each school as has been done in every year’s edition, the overall winners for this fourth edition received cash prizes, trophies and customized tablets and all the students that participated received wonderful prizes including science textbooks.

Speaking at the grand opening, Laura Ede, Programme Officer, Ishk Tolaram Foundation,

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call has gone out to private schools operators across the country to invest in the provision of facilities and operation in line with global best practices.

Folasade Adefisayo, former CEO of Corona Schools and Principal Consultant/CEO at Leading Learning Limited while speaking at the open house event of Toamy Private College Gowon Estate, Egbeda said private college owners need to scale up their facilities and operations to meet global best practices.

Adefisayo who was represented by Ayopeju Njideaka, CEO of Nuture House Limited was impressed at the structure, facilities and plans for the school to contribute to the growth of Nigeria’s educational sector and overall national development.

Adunola Kuforiji, director of studies, Toamy Hills Schools said in line with its commitment to provide total quality education and a culture of continuous improvement, the board of the school have invested heavily on the school project to ensure that the quality of secondary education service provided remains unmatched.

Kuforiji promised on behalf of the board that Toamy Hills Schools brand will continue to deliver excellent educational services that are unparalleled with any other in Nigeria.

She noted that the school is becoming a global brand and announced that the school resumes full academic activities in September, 2019.

The new campus which has its curriculum built on a hybrid of the Nigerian curriculum

and other selected countries of the world, including the British and Chinese, is equipped with state-of-the-art facilities for: scientific experiments, performing arts, media, health services, music education, cafeteria, classrooms, ICT room, restrooms and faculty offices.

Timothy Olaniyan, Pastor-in-charge of the Redeemed Christian Church of God, Dominion Cathedral, Lagos Province 12 in his prayers committed the school, management, staff and students into the hands of God for protection, blessings, favour and exploits.

He expressed confidence in the capacity of God to deliver on His promises concerning the future and destinies of all students who will attend the school.

On her part, Olubunmi Odutola, wife of PICP of RCCG, Lagos Province 40 in her prayers asked God to strengthen and empower the management and staff of the school to deliver on the mandate, which she referred to as “divine”.

A Parent, who attended the open house, opines that “Toamy Schools is not just a school, it is a family. I am happy to be here today, and I am sure that as this family increases, Nigeria will be better for it.

“Our prosperity and future will be secured as a nation if only all stakeholders in the educational sector remain committed to raising quality future leaders, just as Toamy Hills School has been doing. I have taken a tour of the facilities and I am very impressed, not disappointed- this is how Toamy Schools does”, she said.

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expressed her delight at the students’ keen interest in expanding their learning experience through the initiative, urging them to continue to work hard in the pursuits of their dreams.

“As educators, we know the importance of this competition in capturing students’ curiosity at an early age. This will encourage students not just to think critically and reflectively but also have the power to change the world through their problem solving skills” she said.

Delivering his goodwill message during the grand finale, Biodun Dabiri, chairman of Lekki Port LFTZ Enterprise Limited, (LPLEL), who was represented by Adesuwa Ladoja of (LPLEL) noted that education remains the most potent and powerful weapon to drive change in the world hence the reason the company is supporting the laudable initiative.

While presenting the first prize trophy and cash prize to the winner, Dabiri commended the hard work, diligence and intelligence exhibited throughout the competition stating that their brilliant performance has seen them clinch the first prize again.

On his part, Ashish Khemka, chief financial officer, Lagos Free Trade Zone Company (LFTZC) noted that the competition was a worthy initiative that would not only assist the students but also help to nurture future scientists and Engineers that would transform the world.

“We are really glad to support this initiative.

It is a competition, we believe will help change not only the fortunes of the students and the community but the world at large”, he said.

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Tuesday 09 July 2019

BUSINESS DAY

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EDUCATION JAN, Union Bank partner to empower adolescent girls DIPO OLADEHINDE

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s part of its commitment to empowering young girls in Nigeria, Union Bank of Nigeria Plc has announced plans to partner with a non-profit organisation, the Junior Achievement Nigeria (JAN) to organise the annual LEAD Camp, a week-long program designed to identify, convene and coach exceptional female students from across the country.

The mission of LEAD Camp is to inspire and empower young girls to become highachieving women leaders. In order to achieve this mission, the participants are taken through series of activities including leadership workshops, panel sessions and media projects administered by HOD Consulting, a global leadership development company that serves Fortune 500 companies in the United States and Nigeria.

Speaking on the programme, Head, Citizenship and Sustainability, Union Bank, Ololade Awogbade, said that women were a huge part of the bedrock of any society and for that to be sustained in Nigeria, girls who have shown lot of brightness and promise need to be captured young and be impacted with the right leadership, empowerment and career skills.

“It’s a programme that we especially proud of and has almost become a flagship for us when it comes to women and the work we do within our community. We are primarily on women because when we talk about sustainability its

L-R: Comfort Akinkodojutimi, Assistant Head Teacher, Akowonjo Primary School; Adenugba Abosede, representative, Local Government Education Authority (LGEA), Alimosho School Support Service; Patricia Obozuwa, Chief Communications & Public Affairs Officer, GE Africa; Remi Erinle, Member, GE Volunteers Council and Aameenah Yunus-Ali, Programmes Manager, United for Kids Foundation at the launch of a Mobile Library donated by GE held at Akowonjo Primary School premises Lagos

one of the principle that as a bank we have taken to be core,” Awogbade said at the event.

The annual LEAD camp, a week-long programme is designed to nurture and empower young girls to become high-achieving women leaders while addressing Sustainable Development Goal (SDG) 5 of gender equality and empowerment of women and girls.

The participating secondary school students would be engaged in a series of workshops and mentorship delivered by leading women from the private and public sectors, industries, non-profit initiatives in Nigeria and also HOD Consulting, a global leadership development company that serves Fortune 500 companies in the United States and Nigeria.

Executive Director of Junior Achievement, Simi Nwogugu,

emphasized the impact created by LEAD Camp thus far and thanked Union Bank for their unwavering support and commitment to the cause.

“The LEAD Camp’s effect on the participants is phenomenal. The girls arrive on Sunday unsure of what to expect but leave the following Saturday as confident young women ready to change the world. We now have several LEAD Camp alumni doing amazing things from running businesses to running nonprofit organizations to make the world a better place. On behalf of our stakeholders and Board of Directors, we wish to extend our sincere gratitude to Union Bank for continuing to partner with us to make this life-changing impact on our outstanding girls” Nwogugu said.

Also commenting on Union Bank’s continued support for the LEAD camp initiative, the Head of Corporate Communications and Marketing, Ogochukwu Ekezie-Ekaidem said; “Our partnership with Junior Achievement Nigeria through our sponsorship of LEAD camp aligns with our talent development efforts – one of our three Corporate Social Responsibility pillars at Union Bank. The program provides the opportunity for us to cultivate and encourage a strong leadership mentality in these young girls, preparing them to fill leadership positions in the future.”

The girls have the opportunity to engage in enlightening discussions with Union Bank employees and other leading women from the private and public sectors in Nigeria.

Universities, Polytechnics students battle for most innovative idea at Enactus Nigeria competition KELECHI EWUZIE

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ot less than 24 Universities and Polytechnics across Nigeria are expected to compete for at the Enactus National Competition for an opportunity to represent Nigeria at the Prestigious Enactus World Cup taking place at the Silicon Valley, San Jose, California in the United States in September 2019.

The National Business challenge, scheduled to take place between 10th and 12th July, 2019, is an annual signature event that showcases the impact that Enactus is making in businesses and in communities throughout the country.

Themed “Leapfrogging Human Capital Development”, the competition which is cosponsored by African Capital Alliance Foundation, Seplat Petroleum Development Company and Axa Mansard Insurance

Career Guidance: Kaduna Govt. lauds Promasidor investment in students

Plc will highlight the innovative and business solutions that Enactus students are deploring through community based and educational projects to address real problems for real people throughout the country and inspiring hope in them for a better tomorrow.

It will also showcase how, through the Enactus programme, the thought pattern of participating students is being developed and guided such that they are prepared for leadership positions tomorrow.

Activities lined up for the National Competition this year are: the season 2 of the Sahara Energy challenge tagged “Reaching the Goals”, a partnership project with Sahara Group which is aimed at developing innovations in energy efficiency and energy conservation thus addressing Goal 7 of the Sustainable Development Goals; The Aspire Coronation www.businessday.ng

Trust (Act) Foundation Leadership Challenge 2 which was structured to enable the Enactus teams develop social innovations and enterprises that creates economic opportunities for the people. Also to take place is the Enactus Nigeria Leadership and Innovation Summit sponsored by Act Foundation and themed “Multi-Stakeholder Collaborations: A Tool for Achieving Sustainable Large Scale Social Impact”.

Expected panelist for the Leadership and innovation summit will include: Tonye Cole, Co-Founder and Former CEO/Managing director of Sahara Group; Abosede Alimi, director, Strategy, Funding and Stakeholder Management at Lagos State Employment Fund; Osayi Alile, CEO of Act Foundation and Kumbi Wuraola, Principal Consultant, Discover Your Potential. There are also exciting non-competitive ac-

tivities to be held during the national competition such as the Alumni Exhibition showcasing success stories of Enactus Nigeria Alumni.

According to the organisers, “Today, owing to their increased capacity and commendable work ethics and drive, testimonies abound about how Enactus Alumni are positively impacting the market place, leading change and making significant contributions to organizational growth and national transformation”.

Enactus is an international non-profit organisation that is improving the quality of life of people around the world providing business solutions to social, economic and environmental challenges in their communities. Enactus is a community of Student, academic and business leaders committed to using the power of entrepreneurial action to transform lives.

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aduna State Government has applauded Promasidor Nigeria Limited for its career development initiative, Harness Your Dream, which was held for the sixth time recently.

A pan-Nigerian project, the corporate social investment project this time took place at Sardauna Memorial College in Kawo New Extension of the state capital.

The Permanent Secretary of Kaduna State Ministry of Education, Nana Kande Bage, who flagged off the state edition of Promasidor Harness Your Dream, described it as “an excellent programme,” while she encouraged the students from six schools to pay attention to the presentations.

She called on other corporate organisations to toe the line of Promasidor, particularly in the area of developing and empowering the youths. “Other corporate organisations should follow the example of Promasidor as this kind of initiative will further boost the interest of the students in schooling,” she admonished.

“I thank Promasidor for choosing Kaduna State to be part of this programme. I feel highly delighted that Kaduna is the sixth state where this initiative is being held,” the Permanent Secretary further said, as she turned her attention to the students: “I

encourage you to make good use of this opportunity. If you allow such opportunity to slip off your hand, you may not get it again. Work hard so that you will excel in future.”

Earlier, the Principal of the host school, Nura Hassan Yaro also expressed gratitude to Promasidor for considering his school worthy of hosting the programme. He stated his belief that it would make so much impact on the career choices of the students of the schools selected. Other schools represented at the Kaduna edition of Promasidor Harness Your Dream are: Dalet Girls Secondary School, Kawo; Government Girls Secondary School, Kawo; Government Secondary School, Kawo, Government Secondary School, Badarawa and Ahmed Mohammed Makarfi Government Secondary School, Hayin-Banki.

Addressing the students and other key stakeholders at the event, Promasidor’s Head of Legal and Corporate Communications, Andrew Enahoro said that more states would benefit from the initiative as the company is committed to giving back to the society.

He recalled that since Promasidor Harness Your Dream was launched in Lagos in November 2017, it has been taken to other parts of the country with one edition being organised every school term.

ICF Nigeria, university of Ibadan, partner to launch ignite project

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nternational Coach Federation (ICF Nigeria) joins other ICF Chapters worldwide as it launches a landmark initiative called IGNITE engaging humanity through education. The initiative which was flagged-off recently is in partnership with University of Ibadan.

Ignite Initiative is in line with ICF Foundation’s mission to connect and equip professional coaches and organisations to accelerate and amplify social progress through probono coaching.

The project supports the United Nations 2030 SDG #4, Education. ICFN will offer the gift of coaching through the transformational power of Coaching on pro bono basis to top leadership of the University over a period of 6 months.

The recipients are the Vice Chancellor of the institution and the leadership team comprising of the Deputy Vice Chancellors, Deans and Provosts. This initiative is aimed at driving a trickle down positive impact on the people the University serves.

Speaking at the MOU signing in Ibadan, Project Manager International Coach Federation, Gloria Hauwa Gbemudu stated that “Coaching is the bridge between what is possible and what is needed to @Businessdayng

achieve our highest potential.

The Ignite project is all about amplifying and igniting social progress through the power of coaching”.

She added that , six (6) ICF credentialed coaches from the Nigeria Chapter who have undergone rigorous educational requirements and have excelled in practice will donate over $23,562 ( N8.6 million plus) worth of coaching hours to the recipients.

The coaches are Adaora Ayoade, Adeyanju Olomola, Malini Kumar, Barbara Lawrence, Sochi Ilomechina and Gloria Hauwa Gbemudu. The IGNITE project is yet another testimony to the commitment of ICF Nigeria to promoting excellence in the coaching profession. ICF Nigeria remains committed to increasing the awareness and impact of Coaching, in addition to the expansion of the coaching experience in Nigeria.

ICF Chapter in West Africa was established in January 2015 with a core group of trusted coaching professionals who had one thing in common, passion to advance coaching in the region. With a start-up membership of 10 members the membership base doubled to 20 in just three months and the Nigeria Chapter was formally launched in May 2015.

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BUSINESS DAY

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Tuesday 09 July 2019

BUSINESS DAY

23

property&lifestyle Occupancy Rate

Experts see opportunities amid challenges in unoccupied properties Israel Odubola

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roperty owners seem not to be keen on availing themselves of the opportunities embedded on their properties as a good number of these assets found mostly in major cities of Lagos, Abuja and Port-Harcourt, remain unoccupied.

In Lagos, Nigeria’s commercial capital, empty houses are many in the highbrow areas of Ikoyi, Lekki and Victoria Island. Economic challenges have pushed low and mid-income home seekers towards the suburbs while high price tags on luxury properties on the island see buyers turn to mainland and outskirts of the city for houses.

The Financial Derivative Company Limited (FDC), an advisory firm, estimated that vacancy factor index (VFI), which is the ratio of vacant units to total units in Lagos upscale areas, will rise 26 percent in the third quarter of this year on the back of slow demand amid weak purchasing power.

Ikoyi, where about 65 percent of properties meant for residential use are vacant, will lead the pack with 31 percent, Lekki, 26percent and Victoria Island, 21 percent, according to FDC’s projections.

The high vacancy rate in-

dicates people are not really going for luxury properties as their disposable income has been crimped, compelling property owners to be strategic enough to know and meet buyers’ demand, where there are prospects.

These are challenges that are quite obvious to both players and close watchers of the struggling market. But there are opportunities which lie in just making a shift.

“Some of the owners of these empty properties don’t see where the opportunities are in the market. Not many home seekers are looking for big apartments any longer.

About 60 percent of home seekers are looking for small units apartments of studio, one-bedroom and two-bedroom apartments,” said MKO Balogun, CEO, Global PFI. According to him, a major opportunity property owners could explore was to convert unoccupied luxury houses to affordable homes. For instance, a duplex could be restructured to mini-flats or 2-bedroom apartments, depending on prevailing demands in its location.

It is noteworthy that these properties are unoccupied because people lack the financial capacity to acquire them, but restructuring them into smaller apartment units like studio, one-bedroom and two-

L-R: Adebola Sheidu, chairman, Brains and Hammers; Hyginus Onuegbu, president, Coopeast (Shell Cooperative); Shola Sofolahan, president, EMcoop (ExxonMobil Cooperative), and Ifeoma Okoye, ED,Brains and Hammers, at the ground breaking for the development of a threehectare private estate behind Nicon Town in Etiosa Local Government Area of Lagos recently.

bedroom apartments will lower their prices and raise demand.

This strategy will not only bring steady rental income, but also go a long way in reducing high vacancy rate and help lower Nigeria’s huge housing shortage estimated at over 17 million units.

According to Daniel Ojo, broker at HS Agency, a huge number of unoccupied prop-

erties indicates that the real estate industry is not contributing to economic activities, stressing that designs should be simple and flexible to accommodate contingencies.

“Why won’t there be high vacancy rate when buyers want self-contained and twobedroom apartments but developers are busy erecting mansions. Who will buy?”

Ojo asked rhetorically in a telephone conversation with BusinessDay. “When each empty house is restructured to affordable housing units, for each of these mansions, one could easily get 20 to 30 affordable homes. So, 50 of such mansions could have produced 1, 500 affordable housing units,” he reasoned.

Housing Development

More mid-income earners to leave housing market in next 24 months

…as Brains and Hammers, cooperatives set to deliver multi-unit estate CHUKA UROKO

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igeria’s over-crowded housing market will, in the next two years, be depleted as over 100 families will be leaving the market following advanced plans by Brains and Harmers and its partners, workers cooperatives at Shell and Mobil, to deliver an estate that promises 117 housing units.

When the estate is completed, it is estimated that close to 600 persons will be living in new homes; a big plus to the efforts at reducing the country’s housing demandsupply gap estimated at 17 million units.

The estate named CoopEast Resort Estate sits on three hectares of land behind NICON Beach Resort in Etiosa Local Government Area of Lagos State.

Omo Osobase, Director of Sales at Brains and Hammers explained to BusinessDay that the estate is the company’s first collaboration with co-

operative and as such “we plan to deepen that relationship as cooperative is the way forward.”

Brains and Hammers is a frontline real estate investment company with an enviable projects portfolio, consisting of over 2000 completed residential homes across Nigeria and on-going work in over 3000 more projects. Its most ambitious developments to date is the Brains and Hammers City in Life Camp, Abuja.

“It is a 3,500-unit city catering to mid and high level residents at affordable prices.

Some of the facilities in the ultra-modern city include restaurants, schools, banks, a five-star hotel, high-end security facilities, jogging tracks, gyms and swimming pools,” Osobase said.

Like Brains and Harmers, workers cooperatives at Shell and Mobil have invested significantly in real estate in Lagos and Abuja. According to Hyginus Onuegbu, the president of the Shell CoopEast,

they have a rich project portfolio that is over N50 billion in value.

“We have 100 percent belief in Brains and Harmers.

The first phase of this project is fully subscribed and we are thinking of doing a second phase. We have signed a tripartite agreement with them to ensure that the interest of everybody is covered. We have plans to do other projects with them including the one in Lekki Phase and the Oil and Gas City in Obudu foreshore,” Onuegbu disclosed.

Osobase explained that all these efforts were part of ways to reduce the over 17 million housing deficit in Nigeria, adding that they have decided to work in tandem with the vision of the cooperatives to provide affordable and decent housing for their members.

Brains and Hammers, he revealed, was eager to make a success of the Coopeast Estate to entrench its tradition of excellence in qualitative and affordable housing delivery, noting that the

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partnership was a win-win for all the parties involved in the transaction-the cooperative, the cooperators and the company.

According to him, the leadership of many cooperatives have had their fingers burnt in an attempt to build a housing estate for their members.

“This is not their area of core competence; so their attempt often falters, not for lack of good intention, but because they do not have the capacity to execute such projects,” he said.

He hoped, however, that with the arrangement they could come up with a mortgage plan. “They also have the advantage of getting very attractive discount from the company since they come to us with volume. If they go to the banks, the loan facility available is at 23 percent. So, it is better for them to work with us,” he said.

The Coopeast Estate promises to offer different house types including threebedroom ensuite plus boys

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quarters, four bedroom ensuite plus boys quarters and four bedroom ensuite semidetached. The last category is nicknamed ‘the King’s House’, featuring five bedrooms, a study, penthouse, boys quarters and a guest house.

“We are happy to have people repose this kind of trust they have in banks in us.

People buy into our estates immediately we announce our intention to build and while construction is on-going, it is fully subscribed. That has been our experience since we delivered the first estate in Abuja,” Adebola Sheidu, the Managing Director of Brains and Harmers, disclosed.

Continuing, he said, “we were persuaded to come to Lagos by satisfied clients in Abuja who also want a house in Lagos. We hold that trust in very high esteem and try to reciprocate the goodwill to our customers. We place a high premium on the integrity and the quality of our structures. We deliver value for money.” @Businessdayng

Buyers gain as Alaro City engages Bureau Veritas for build quality CHUKA UROKO

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roperty buyers are the ultimate beneficiaries of the strategic decision by the management of Alaro City to engage the services of Bureau Veritas, a global leader in testing, inspections and certification, which will be ensuring quality and international best practice in all construction work within the city.

As a global leader in laboratory testing, inspection and certification services, Bureau Veritas, created in 1828, has around 76,000 employees located in more than 1,400 offices and laboratories around the globe. The company helps to ensure that assets, products, infrastructure and processes comply with client specifications or standards and regulations.

Alaro City is an ambitious city planned as an integrated mixed-use, city-scale development with industrial and logistics locations, complemented by offices, homes, schools, healthcare facilities, hotels, entertainment and 150 hectares of parks and open spaces.

Rendeavour, the developer, is a known city builder, and has invested over $250 million in each of its projects in Nigeria, Kenya, Ghana, Zambia and Democratic Republic of the Congo. It creates infrastructure, living and working spaces that help sustain and accelerates Africa’s economic growth, meet the aspirations of Africa’s burgeoning middle classes, and serve as a catalyst for further urban development.

Alaro City, which is its latest project, launched in January 2019, is a joint venture between it and Lagos State government.

“In line with our culture of best practice, we are pleased to appoint Bureau Veritas, a leading global quality services firm with a strong Nigerian presence, to ensure that all construction work within Alaro City complies with regulations and meets international standards,” said Odunayo Ojo, CEO of Alaro City.

Ojo added, “as we boost foreign direct investment in Nigeria and create tens of thousands of jobs, we will work with trusted partners in various fields to ensure that our culture of high standards is sustained.”

Halima Maibe, Commercial and Sales Manager at Bureau Veritas, said the appointment would result in enhanced quality inspections at Alaro City in respect to all activities related to construction of the new city.

“We are excited about this opportunity to deploy our high quality services to assist builders in Alaro City to meet and exceed standards quality, safety, environmental protection and social responsibility,” she said.

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Tuesday 09 July 2019

BUSINESS DAY

property&lifestyle Housing Deficit

Infrastructure Maintenance With Tunde Obileye

Residential interior designers hit hardest as Possible solutions to internet vending threatens low-income demand common FM challenges (1)

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Temitayo Ayetoto

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nterior designers’ use of internet marketing as a means of publicising services to target online audience has turned around to be a threat to the demand for consultation in the middle-income service category.

In lieu of consulting a designer, the growing trend is that potential clients surf online to choose among copious examples of already-made concepts of designers seeking to boost sales through the social media, websites or email.

The residential interior design aspect is the hardest hit as cost-sensitive customers use these online concepts as a model for their carpenters or window fittings vendors to interpret.

Like online property ven-

dors, the comments left by social media users on uploaded concepts are mostly an expression of excitement of a model that can be copied for use.

However, other categories such as corporate designs, commercial concepts or public space are able to escape the situation as clients still appreciate the service of designers in achieving bespoke outcomes.

Solomon Ughul, Out of Africa Lifestyle Limited manager told BusinessDay these categories are not as easy and straight forward to interpret like those of residential designs and as such, corporate clients still value the opinion of interior design expert when setting up.

“Residential customers, who don’t want to pay so much take pictures online, go to roadside carpenters to make those things for them

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and visit Tejuoso market in Yaba, Lagos to get window treatment. But it is a big risk.

The middle-income market is threatened by that trend and anybody focusing on it will have that problem.”

When people pay for interior design services, what they are buying, Ughul said, is concept creation – an intellectual property considered more expensive than furniture decoration of a space.

He noted that concept creation is on the one hand value and interpreting the concept with furniture and fittings is another.

“They (corporate clients) understand the value of their brand and everything has to speak it. What others don’t see as a big deal is the concept and without the concept, you cannot do anything,” Ughul stressed.

Jennifer Sergent, a design director in a monitored interviewed affirmed that the internet has changed the whole dynamics of designerclient relationship. At a time when so many resources are now transparent, clients know much more now that they can browse endless sources online.

Hence, interior design outlook in the next two years will rely on designers’ ability to emphasize their skills with space planning, scale, and the ability to combine colour and pattern in ways that aren’t obvious to an amateur, Sergent projected.

“The days of trying to make money off of typical furniture sales alone are over,” Sergent said.

Out of Africa Lifestyle, one of Nigeria’s active designers, for instance, majorly deals with corporate clients and a few private clients. It works with a belief that designing is more about conceptualising what space should be used for; how functional it will be and how many people will use the space. The design concept also has a lot to do with determining the colour and mood of the space or how much lighting will be present in a space. It studies the interests of clients, their hobbies and the narratives they really want their homes to communicate.

Acknowledging however that the low-income market is not totally crashed, Ughul said the firm has also begun to offer simple design needs of this class.

“We don’t do too much interior design for this category.

These are people who will surf online and get the concept and tell us to interpret.

They are not ready to pay for consultation. They just want a design,” he explained.

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acilities management (FM) practitioners will be the first to tell anyone that proper maintenance of facilities can be very complicated with an unending stream of challenges and obstacles to deal with. Identifying these issues and establishing the most efficient and effective ways to overcome them can also be daunting but remains the best way to be a key player in the industry.

The purpose of this article is to identify some of the most challenging issues faced by facility managers and proffer solutions.

Costs: Controlling cost has and remains a major problem in FM. It is not uncommon for facility managers to have inadequate resources for a heavy workload. As a result of such budget constraints, expenses must be strictly controlled.

Experienced facility managers achieve strict control by doing the following: • preparing for all costs in their budget estimates — fixed, variable, direct and indirect etc.; • tracking the items in their inventory; • selecting the best possible teams to carry out the projects; • negotiating prices with suppliers; •regularly tracking maintenance costs and financial information; •investing in technology as value for money.

Even in today’s ecofriendly environment, other options that can save cost in FM operations include: •Upgrading to automated technologies that will reduce energy waste; •Considering simple practices, such as using more natural light; •Moving to LED lighting; •Integrating distributed energy resources (DER) Coordinating Teams To make operations run smoothly, it is crucial to implement workplace practices that foster communication, organisation, productivity, and innovation.

With an increasingly mobile and dynamic workplace, a preferred solution is to use facilities management software that allows the FM team to report failures, generate reports and check equipment history.

The importance of such software is being understood more and more in the context of performing your daily tasks.

Adopting digital calendars is also a good way to @Businessdayng

stay on top of the team’s maintenance responsibilities and to plan the workload accordingly.

Handling Failures - Dealing with failures can be a complex process that requires a significant information flow and a quick call-to-action. Many facility managers don’t always have access to a centralized information platform where the status of all operations can be checked including failures reports.

The solution may involve centralizing all daily work and using mobile devices to register every failure and to manage and monitor the next steps in real-time.

The use of technology should be encouraged and adopted by the maintenance team in order to make their work easier. Keeping track of requests can be a lot easier and it is mandatory for a perfectly running process.

Maintaining Aging Equipment And Facilities The passage of time can be somewhat unforgiving on some pieces of equipment.

Most equipment show signs of wear and tear after heavy usage and inevitably must be replaced. It is important to remember that preventive and corrective maintenance can be taken to slow down this process. Proper planning is essential to find ways to extend the life of existing assets and/or to coordinate the upcoming expenses.

Facility managers need to be aware of the effort and costs involved to prevent and correct a malfunctioning asset. This can result in huge savings over time.

Managing Time - Facility managers have very busy daily schedules. Juggling the coordination of teams and their workload, dealing with customer requests and emails, and consulting vendors or suppliers with regards to stock can make for a very complicated routine.

To overcome this problem, facility managers should consider the use management software solutions that are now available. As well as making the planning and prioritization of tasks easier, it can also assist in supporting the team to be result-oriented. Having available answers to frequently asked questions can save time which means saving money.

Obileye is a UK-trained lawyer and CEO, Great Heights Property and Facilities Management Limited Email: Tundeobileye@greatheightslimited.com

Tuesday 09 July 2019

BUSINESS DAY

BDTECH

25

In association with

E-mail: jumoke.akiyode@businessdayonline.com

Fusing IT and business for a digital transformation treat Tamer Farouk, regional senior director – East and West Africa applications sales leader at Oracle

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t is unlikely to have escaped your attention that the culinary world is witnessing an explosion of fusion cuisine, with chefs mixing various cooking styles and cultures to create previously unimaginable gastronomical delights.

Challenged to increase the productivity and profitability of their restaurants, these experimental pioneers are embracing innovation to stay ahead of the competition and ensure the long-term viability of the businesses they serve.

The pressure currently mounting on the modern CIO is not too dissimilar, with CEOs increasingly demanding that they align their IT processes with the overarching strategic objectives of the organisation and prove the long-term business value of their investments.

In many ways, this requires the CIO to become every bit as creative as these chefs, fusing the interests of different lines of business (LOBs) to cook up an innovative digital transformation offering that whets the appetite of the entire organisation.

So, what are the key starting points for any enterprise looking to improve its IT-business alignment?

Co-operative culture In a recent survey conducted by the International Data Corporation (IDC) in East and West Africa, the overwhelming consensus was that the digital transformation process should be jointly led by IT and the business.(1)

tion, businesses and consumers can generate a unique code for their offices and homes that can be printed on business cards or sent electronically for people to reach them. This can easily be integrated with security services with alerts being sent in case of an emergency to improve response times.

Tamer Farouk

While the emergence of use cases built around innovation accelerators like robotics, artificial intelligence, the Internet of Things (IoT), and 3D printing is driving a new wave of business process transformation led by individual business units, the IT department must always be involved.

Allowing business units to operate in silos encourages the spread of shadow IT, whereby business units procure IT solutions without the knowledge or approval of IT. This can introduce complex problems around security and management and cause cost and governance issues to spiral out of control, ultimately placing the

overall strategic goals of the organisation in jeopardy.

As tempting as it might be for customer-facing teams such as sales and marketing to go off and pursue their own digital agendas, none of their initiatives should ever be allowed to happen in isolation. Successful digital transformation requires extensive collaboration and cooperation between IT and business leaders to ensure the right outcomes are achieved.

An unlikely example of this in action in Nigeria is the partnership between government and the private sector to fight crime. Using the locallydeveloped Gridcodes mobile applica-

redundant processes or tasks that can be augmented or supported by AI or other machine-learning applications, with an eye on measurably reducing human error and the associated costs.

Set realistic targets For organisations struggling with large legacy infrastructure, it is important for IT and LOB leaders to agree on a series of smaller, short-term goals aimed at kickstarting the digital transformation process.

Transitioning to cloud-based infrastructure gives organisations the scale and freedom to experiment with new innovations at a realistic pace, making it relatively pain free to trial smaller-scale solutions. Introducing digital assistants into customer service channels or launching a mobile app to improve customer service are just two examples of small steps that can deliver significant returns.

Beyond these incremental improvements, there are various key performance indicators (KPIs) that can be used to ensure that IT is properly supporting the broader strategic goals of the business. These can include financial KPIs that incentivise CIOs to allocate a higher share of their investment budgets each year to newer technologies such as cloud, AI, and data analytics.

At the same time, CIOs can help LOB executives identify potentially

Internal focus groups Continuing with the cooperation theme, internal focus groups are an extremely useful tool for improving IT-business alignment and facilitating enterprise-wide digital transformation. These groups should incorporate representation from different functions across the organisation, with IT and business units given clearly defined roles and responsibilities as part of a unified roadmap or vision.

IT’s primary role should be to provide agile test and development environments that allow business units to experiment with solutions and refine them as and when needed. IT should also draw up structured technology frameworks that business units can refer to when deploying digital solutions.

Even non-traditional business sectors can benefit from this. Take farming as an example. Smart farming where data is used to become more efficient has been embraced in Europe and the United States. Nigeria, for its part, needs to start adopting similar practices and can use focus groups from farming communities across the country to not only educate and inform, but to understand the key challenges they face both from a business and from a technological perspective.

relevant information on the object.

“This new device has been in the pipeline for a while. With the amazing AI Triple Camera plus other wonderful features, we are proud to say it was worth the wait. Photography enthusiasts and business professionals will find that is a great addition to their work and entertainment toolbox,” said Stephen HA, vice president of Transsion Holdings and managing director of Tecno.

There are also other features that make the device stand out such as an Octa-core 2.35GHz MT6765 processor with 6gigabyte (6GB) random access memory (RAM) plus 12GB memory space. This means

that the device has plenty of memory space for storing files and no freezing even while running three or more apps simultaneously.

There is also a first of its kind drop screen dual front flashlight.

This will greatly help users who take photo shots at night or in low light conditions.

Other features include Bluetooth 5.0 which makes connecting one device to anothereasier and transferring files faster; 4G LTE capacity for smooth high0speed browsing; and a sizeable 3,500mAh battery.

Oguntimehin revealed that the new device is priced at 77,000 naira in the Nigerian retail market.

Tecno mobile launches Phantom 9 with AI triple camera Jumoke Akiyode Lawanson

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ecno mobile has launched the long-awaited addition to the Tecno Phantom smartphone series. The new device, Phantom 9, comes with an array of technology enhanced features that bring a whole new dimension to the smartphone experience.

One of its exciting new features include an Artificial Intelligent (AI) triple camera and double front facing flash, that allows users to take immersive wide-angle photographs of landscapes, cityscapes, indoor architecture and group selfies easily.

Speaking at the Tecno Phantom 9 launch event in Lagos on Thursday July 4, 2019, Jesse Oguntimehin, strategic marketing communications manager, Tecno mobile said that the company had taken extra time and effort to make sure that the new device is premium in terms of features, look and feel.

“After over a year since the release of the Tecno Phantom 8, we have decided to come out with the enhanced premium Phantom 9.

From the stunning blend of colours at the back, to the crisp AMOLED screen with water drop notch at the top and in-display fingerprint scanner, Tecno has really taken it a step

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further with the blend of technology in this device,” he said.

The AI triple camera on the Phantom 9 is a 16MP (megapixel) + 2MP+8MP, 120- degree main camera that makes wide angle photography possible. It also makes it possible to take close-up shots that still remain clear. The triple camera supports 2.5cm extreme close-up shots, so tiny details can be seen clearly. The triple camera function also comes equipped with Google Lens, so the Tecno Phantom 9 can do smart identification of objects as soon as they come into the view of the camera. The device does this by automatically showing all the

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26

Tuesday 09 July 2019

BUSINESS DAY

BDTECH

E-mail: jumoke.akiyode@businessdayonline.com

Tech firms explore partnership opportunities to build more data centres in Nigeria Stories by JUMOKE AKIYODE-LAWANSON

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ertiv, provider of equipment and services for data centres and 21st Century Technologies Limited, a multidisciplinary telecommunications service provider are exploring possible partnership opportunities to roll out more data centres in Nigeria, BusinessDay learnt.

A data center is a repository that houses computing facilities like servers, routers, switches and firewalls, as well as supporting components like backup equipment, fire suppression facilities. It traditionally refers to server hardware on premise to store and access data.

The business leadership team of Vertiv, including Noureddine Aouda; regional director, North

L R: Fatima Kabir Umar; deputy director, polytechnic programmes, National Board for Technical Education (NBTE), Ephraim Nwokenneya; director research and development Nigerian Communications commission (NCC), Umar Garba Danbatta; executive vice chairman, NCC, Suleiman R. Yusuf; National University Commission NUC, Elijah E. Omizegba; chairman of the committee, during the inauguration of the national steering committee on the development of a Research and Development (R&D) roadmap for the telecommunications industry, at the NCC headquarters in Abuja at the weekend.

West Africa, Pierre Havenga; managing director, Middle East and Africa and Gbenga Adebowale; country sales manager Nigeria

recently paid a visit 21st Century Technologies to discuss data centre opportunities, as the company already offers a complete

suite of fully managed hosting services from its own data centres in Lagos, Nigeria, providing an array of strategic, financial, and

operational benefits.

Wale Ajisebutu, chairman/CEO, 21st Century Technologies Limited, received the team and conducted them round the company’s state-of-the-art ICT complex.

Industry analysts have welcomed this proposed partnership as stakeholders’ clamor for more data centres across the country to host more telcos, carrier providers and internet solution providers (ISPs) and government continue to push for the hosting of data in country.

Only recently, 21st Century Technologies obtained a Tier IV certification from Uptime Institute, the first time for any telecommunications company in Africa.

Uptime Institute provides standards globally for the design, construction and operations of data centres in the IT industry.

Also with the certifica-

tion, the company has become the most certified ICT firm in the country.

With its data centre tier standard and certifications, management and operations reviews, efficient IT stamp of approval, and accredited educational curriculum for data centre.

Uptime Institute helps organizations optimize critical IT assets while managing costs, resources and efficiency.

By this certification, 21st Century Technologies’ data centre cannot go down for more than 23 minutes in a year.

Vertiv, the American, Ohio-based, provider of equipment and services for datacenters, brings together hardware, software, analytics and ongoing services to ensure its customers’ vital applications run continuously, perform optimally and grow with their business needs.

Jumia recalls achievements in e-commerce operations Seamfix recognised for inspiring Africa n the last 12 calendar customers prefer to inter“We continue to see e- through identity and data management months, Jumia Nige- act with our customer ser- commerce as an enabler of

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ria has recorded significant achievements in three major areas of its operations in the country: customer delivery experience, e-commerce reach and expansion, job creation and empowerment.

This is according to Juliet Annamah, chief executive officer of the company, who recounted the company’s milestone achievements during the celebration of Jumia’s seventh anniversary held in Lagos recently.

According to her, among major achievements recorded include the nationwide expansion of its last mile delivery hubs to accommodate 33 new ones.

Others include the integration of 25 new logistics partners to its network of partners, and the addition of four major local languages to assist customers place orders by phone.

“These are deliberate efforts towards expanding the reach of e-commerce in rural cities where prepayment had been the only payment option, thereby expanding the footprint of payment on delivery to these cities. We have also observed that some of our

vice agents in their various native languages. In response, we have integrated the 4 major local languages - Hausa, Yoruba, Igbo, and Pidgin,” she added.

In yet another strategic move towards improving customers’ delivery experience and helping them save money on shipping, Jumia also introduced for the first time ever in the Nigerian e-commerce sector, Jumia Prime package which is a paid subscription package that enables customers to shop on Jumia with zero shipping fees for a preset duration. Available in Lagos and Abuja at the moment, it will be extended to other cities in due course. With a Jumia prime subscription, there is no limit to how many orders a customer can make and get free shipping within the period covered in their subscription.

In his remarks, Dele Awolala, HR lead, Jumia Nigeria, stated that Jumia creates thousands of jobs through its ecosystem which houses online services such as food delivery, hotel and flight booking, classified advertising, and airtime recharge.

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job creation and empowerment. We have over 2,000 people directly employed in Nigeria and potentially another 850 through our ecosystem of partners.

Our impact on employment is also seen through our nationwide J-Force programme which has not only provided employment opportunities to thousands of Nigerians, but has also equipped them with the right training on how to become self-sufficient entrepreneurs,” Awolala said..

Other employment and empowerment programmes by Jumia include the recently launched women and youth empowerment programme.

It is designed for Nigerian women and youth below 30 years of age, helping them earn extra income while educating consumers especially among rural dwellers, understand how to use Jumia to save time and save money.

In closing Anammah said, “Jumia’s mission is to leverage the power of the internet and data to improve everyday life of Africans. Every year we push the boundaries in line with our mission.”

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eamfix, provider of identity management and data management solutions in Nigeria and Africa has been selectively recognised by the London stock exchange group (LSEG) as one of the companies to inspire Africa in 2019.

In the second edition of the London stock exchange group report which identifies Africa’s most inspirational and dynamic private, highgrowth companies who are inspiring the market in different ways, Seamfix’s growth rate and sector diversity where highlighted as a unique potential to transform the African and global economy and become worldclass job creators for innovative individuals.

This recognition echoes the vision of Seamfix, which is to provide platforms that enable and inspire millions of African businesses and people to achieve more daily. Today, know your customer (KYC) has be-

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come a major part of our everyday lives; the need to get clean and verifiable data of customers or clientele, the need to validate these collated data seamlessly and conveniently, and the mandate to do all these while strictly adhering to requirements by regulatory bodies.

The Seamfix KYC solution offers an end-to-end data acquisition, identity management, on-the-go verification, and risk analysis for accelerated client on-boarding. It aims to empower leading organisations make informed data-driven decisions faster while simultaneously achieving a sustainable and compliant regulatory environment for the business and its customers.

Chimezie Emewulu, the CEO of Seamfix, remarked on this great achievement saying; “We are humbled by this great recognition. This is beyond just an opportunity but a validation of the priceless efforts and @Businessdayng

sweat put into building Seamfix as a brand and our amazing products.

Though this recognition has our name on it, in truth, it belongs to everyone who has made this a reality.”

Chibuzor Onwurah, the co-founder and executive director of Seamfix, appreciated all Seamfix clientele, partners, and everyone who partook and currently partakes in the growth of the company.

“This award is for all of us, including you, for your continuous efforts, utter trust, and contributions to our growth. We say a big thank you.”

In commemoration, the London Stock Exchange Group has invited Seamfix to celebrate the launch of LSEG “Companies to Inspire Africa 2019” report in Lagos, Nigeria, hosted by PwC. The event would bring together the 122 companies featured in the 2017 and 2019 reports, thought leaders in Nigeria, financial advisors, capital market solicitors and more.

Tuesday 09 July 2019

BUSINESS DAY

27

Investments

ENERGY INTELLIGENCE

Market Insight Companies Commodity Tracker Policy

OIL

GAS

PETROCHEMICALS

POWER

MARKET

Why is OPEC running scared of protesting kids?

ISAAC ANYAOGU

M

ohammed Barkindo, secretary general of OPEC, the cartel representing 14 countries with 80 percent of the world’s oil reserves says a bunch of kids protesting the effect of the oil industry on the climate, represents ‘perhaps the greatest threat to our industry going forward’ in a subtle admission that the organisation is rattled.

According to a recent United Nations report, the world has less than 12 years to cut greenhouse gas (GHG) emissions in half. While this in itself is a daunting task that will require radical transformation of the global economy, governments around the world are yet to take the fundamental steps necessary to cut down GHG emissions.

Rather governments including the United States have doubted the science behind climate change and are encouraging resurgence to coal considered a dirty fuel. But every year, the impacts of climate change in the form of floods and storms submerging coastlines, frequent wild fires and droughts drying up critical sources of water, yet the world continues to binge on fossil fuels.

So when the adults failed do something about it, the kids whose future is currently being mortgaged, have decided to fight for change.

Women and girls — often hit the hardest by climate disasters — have become leading figures in this movement.

Of these protesting kids, 16-yearold, Greta Thunberg, has become one of the world’s foremost environmental activists over the past year through her weekly Friday for Future protests.

She has been nominated for a Nobel Peace Prize for her work, has spoken at the World Economic Forum and in front of the European Parliament, and sparked a protest movement involving millions of young people worldwide.

In Europe and America and even parts of African, children are boycott-

ing schools on Friday to call attention the disastrous impact of climate.

Some are even taking decisive action.

Ridhima Pandey is only 9 years old but she is suing the Indian government over its failure to address climate change in 2017.Her ongoing lawsuit is part of a growing legal movement to hold governments that have failed to act on climate change accountable.

In Nigeria, Oladosu Adenike tirelessly campaigns for the planet and is active on Twitter organising young

people to imbibe a culture of sustainability and educates her followers on the complexities of climate change and calls on young people to push for climate action.

But Barkindo has complained of what he called “unscientific” attacks on the oil industry by climate change campaigners, calling them “perhaps the greatest threat to our industry going forward”.

Speaking in Vienna after a meeting of the oil producers’ club and

its partners, last week, Mohammed Barkindo who got the organisation’s nod to represent it for another three years, said that as extreme weather events linked to the climate crisis became more common, “there is a growing mass mobilisation of world opinion against oil”.

“Civil society is being misled to believe oil is the cause of climate change,” he said.

Barkindo said children of some colleagues at OPEC’s headquarters “are asking us about their future because.. they see their peers on the streets campaigning against this industry”.

OPEC and Barkindo have reasons to be concerned. The young people fighting for the planet want to hold his organisation accountable, but OPEC prefers to live without the scrutiny.

The children see climate change threatening their ability to access their basic human rights to things like food, water, and a safe place to live. Worse still, the incessant protests is getting attention as European countries consider measures to cut down on oil.

In 2015, over 195 countries agreed to Paris Accord which compels nations to commit to limiting global temperature rises to well below two degrees Celsius (3.6 Fahrenheit) and to a safer cap of 1.5C if possible. Scientists say to achieve this, the world must drastically slash its greenhouse gas emissions, a large proportion of which comes from burning fossil fuels for energy including oil.

Volatility in Middle East Gulfs may suck out 20% of global oil supply STEPHEN ONYEKWELU

R

ising tensions between Iran and the U.S.A. may worsen the conflict situation in the Persian and Arabian Gulfs with the possibility of cutting off oil supply to both European and Asian markets.

This is because the current volatility could lead to a temporary closure of the Strait of Hormuz, between the Persian Gulf and the Gulf of Oman, which provides the only sea passage from the Persian Gulf to the open ocean and is one of the world’s most strategically important chokepoints.

Conservative estimates show of the world’s daily consumption of 100 million barrels a day of crude oil, 20 – 21 million barrels per day of crude and petroleum products are transported via the Strait of Hormuz.

Saudi exports are a vast part of it, but also the United Arab Emirates, Iraq, Kuwait, Bahrain, Qatar and Iran, will have to look at additional routes. A closure or military action in the region will cause a temporary disruption for all maritime traffic, said Cyril Widdershoven, an analyst atoilprice.com and a long-time observer of the global energy market.

“We are increasing our readiness.

We can supply through the Red Sea and we have the necessary pipelines and terminals,” Amin Nasser, chief executive officer of the state oil company, Saudi Aramco had said as fear about a possible closure of the Hormuz looms in the wake of two tanker attacks in the Gulf of Oman earlier this month. www.businessday.ng

People familiar with the terrain said in reality, Aramco will not be able to keep the necessary crude oil and products volumes flowing to Asian and European markets in the case of a full Strait of Hormuz blockade. Although Aramco owns and operates a crude oil pipeline with a capacity of 5 million bpd, carrying crude 1,200 kilometres

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between the Arabian Gulf and Red Sea, much more is needed to keep the oil market stable.

Geographically, Tehran appears to have been dealt the best cards. Looking at the majority of oil and gas production assets and infrastructure in the Arab world, especially in Saudi Arabia, UAE or even Iraq, everything is in reach of @Businessdayng

short-distance missiles, fighter jets and even drones.

Any move against Iran will result in a full-scale attack on Saudi’s Eastern Province (which produces 80 percent of all its oil and gas), Abu Dhabi’s offshore oil infrastructure and the regional pipelines. Looking at history, denying energy access and diminishing the opponents stability is a no-brainer in military strategy.

As a consequence, Asian consumers will need to prepare for severe price hikes in the most optimistic scenario, but also for a shutdown of vast parts of their economy. Hormuz will not be standing on its own; more is to be taken into account, especially proxy reactions in Yemen (Gulf of Aden) or East Med (Hezbollah). Negative repercussions for Europeans are also in the picture.

This is the worst case scenario. But the general feeling of uncertainty about the Strait of Hormuz, which Iran has threatened to close a number of times in the past, the risk of the chokepoint being closed is probably non-existent whatever the tensions between Iran and the U.S.A. people with deep experience in the industry and regional politics have argued.

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BUSINESS DAY

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BUSINESS DAY

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ENERGY INTELLIGENCE EXPLAINER

Understanding NNPC’s new payment model, IJV agreement DIPO OLADEHINDE

T

op on the lists of most discussion in the industry space is the news about plans of Nigeria National Petroleum Corporation (NNPC) to introduce a new model tagged Incorporated Joint Venture (IJV).

A new payment model setup to ease the funding of joint venture projects that have suffered delays due to financial hitches.

During a panel session at the Nigeria Oil and Gas (NOG) Conference in Abuja, NNPC Group Managing Director, Maikanti Baru said the IJV model was conceptualised out of the need to encourage healthy business culture and growth in the energy sector.

Baru, who was represented at the panel session by the Corporation’s Chief Operating Officer (CEO), Bello Rabiu, said the IJV model, when implemented, would make oil and gas business more productive and beneficial to investors.

Understanding the proposed structure of IJV An IJV requires the creation of a new legal entity in a specific country which allows two or more companies to collaborate and carry out a common activity requiring legal instrument such as incorporation and shareholders agreement.

Under the proposed framework, the IJV’s will serve as incorporated commercial entities that can go to the financial market, raise capital for business and pay dividends to their shareholders. What this entails for the government is that the government owned partner

in the joint venture needs to be a commercial, capitalized company.

The IJV would serve as the operator in its own fields and would be empowered to independently source for funds for executing its projects. It would also be allowed to sell and keep the funds derived from cost oil and cost gas, while transferring all other hydrocarbon produced to its shareholders.

The IJV removes the need for cash call and annual funding strategy which will create transparency across all JV partners, reduce level of government bureaucracy.

Implication of the new IJV model Charles Akinbobola, energy analyst at Lagos based energy firm Sofidam Capital said arguably, exploring the IJV model is a smart move for the Corporation as the model will provide significantly better asset protection to the Joint Venture parties compared to the unincorporated ones.

“This is because the liabilities of the venture will usually be contained in, and limited to, the JV Company, rather than being borne by the Joint Venturers directly,” Akinbobola said.

Other stakeholders believes it will improve accountability within the governing structure, offer greater opportunities for technology acquisitions, reduce political interference and minimize rent seeking activities related to crude lifting.

Current Structure NNPC currently holds the Federal Government equity interest under the concessionary fiscal system through joint venture or Production sharing Contract (PSC).

While the JV remained the prin-

cipal contract model introduced in 1986, which typically govern onshore/shallow water projects for the purpose of exploration and production of resources, the inability of the NNPC to fund its equity participation in the JV led the arrangement to be increasingly unmanageable.

This however gave birth to the PSCs introduced in 1993, to address some of the issues faced by the Joint Operating Agreement (JOA) and also to provide a suitable agreement structure for encouraging foreign investment in offshore domain.

The Nigeria Federal Government of recent declared its move to reduce stakes in JV oil assets to 40 percent agreements with IOCs, which it thought wise to be the best hope to shore up revenue.

Recall, Nigeria has been on a perpetual voyage with Petroleum Industry Bill (PIB), a bill which holistic address most of challenges facing the Nigeria’s oil and gas sector. The bill is one its most important bills ever to be contemplated in its history in a journey that begin over 16 years ago with lots of anticipation and promises.

Renewable energy in Africa gets lift on EUR40m investment from European Commission STEPHEN ONYEKWELU

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he African Development Bank has announced a EUR 40 million investment from the European Commission for the Facility for Energy Inclusion (FEI), a new platform for financing smallscale renewables in Africa.

The announcement was made to energy sector stakeholders at a sideline event held during Africa Energy Forum, which took place in Lisbon, Portugal in June. The Bank, the European Commission, in partnership with Lion’s Head Global Partners and Fieldstone and the Lusophone Renewable Energy Association presented the Facility to participants at the Forum.

FEI is a $500 million financing platform spearheaded by the African Development Bank to catalyse financial support for innovative energy access solutions. FEI On-grid, a targeted USD 400 million funds, supports improved energy access through the development of smallscale renewable energy generation

and mini-grids across Africa, while the Off-Grid Energy Access Fund (OGEF), a targeted USD 100 million funds support off-grid energy distribution companies and boost their long-term capacity to access capital markets at scale.

Joao Cunha, manager for Renewable Energy Initiatives at the African Development Bank said FEI had been developed to offer debt instruments, including in local currency, to companies providing affordable, clean and sustainable access to underserved communities in the www.businessday.ng

Sub-Saharan region.

“Through FEI, we aim to increase co-financing and private sector investment in innovative on-grid and off-grid clean energy access solutions, and consequently move faster on our “Light Up and Power Africa priority to achieve universal energy access in Africa by 2025,” said Cunha.

The event was attended by the renewable energy investor community, including representatives from various Development Finance Institutions (DFIs), international and

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African commercial banks, project developers and sponsors.

During the event, the FEI fund managers guided project sponsors and developers in attendance through project selection criteria, and financing terms of the specific FEI windows.

In December 2018, the Directorate-General for International Cooperation and Development of the European Commission (DG DEVCO) approved a EUR 25 million investment to FEI On-Grid window, EUR 13 million into the FEI OGEF window, and EUR 1.6 million to support the Fund’s Technical Assistance Facility, which aims to build investee capacity in structuring and executing transactions in African capital markets.

These investments will provide junior equity to strengthen FEI’s capital structure, and enable FEI to fundraise from a range of commercial and private investors.

“FEI is a great example of how the EU has been developing innovative financing initiatives together with financial partners such as @Businessdayng

the African Development Bank, to stimulate and de-risk private sector investments without which we won’t be able to address the growing energy demands and provide access to sustainable energy in sub-Saharan Africa,” said Hugo Van Tilborg, Head of Infrastructure, and African Development Bank Liaison at the EU. The European Commission’s contribution further underscores the African Development Bank’s focus on building strong partnerships with diverse organisations in order to provide a wide range of grant and investment instruments to fast track sustainable energy access across the continent.

FEI’s off-grid window reached a $58 million first close in August 2018, with contributions from the African Development Bank, the Nordic Development Fund, the Global Environment Facility, All On and Calvert Impact Capital, Shell Foundation, USAID and the UK’s Department for International Development. FEI On-Grid is currently fundraising towards achieving a first close of about $120 million.

Tuesday 09 July 2019

BUSINESS DAY

OFFGRID BUSINESS

30

EM-ONE, Schneider Electric partner to localise, industrialise solar mini-grids in West Africa

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n an effort to play a leading role to localize and industrialize the deployment of minigrids in West Africa, EM-ONE Energy Solutions, a sustainable engineering firm and Schneider Electric, a leader in digital energy management, automation and software have signed a Memorandum of Understanding to develop and execute decentralized renewable energy projects.

The MoU builds on EM-ONE’s expertise in electrifying over 400 clinics, schools and rural communities in Nigeria using their proprietary containerized solar solution – the “EM-BOX.” Recent donor and private sector motivation to build Nigeria’s off-grid power sector to address the un- and under-electrified populations hope to prove the case that decentralized, renewable power will pave the way for affordable, reliable sustainable and modern energy for all in a cost effective and timely manner.

“Nigeria has become a focal point for distributed solar, renew-

The “EM-BOX” deployed in Kaduna State to power a primary health center in 2015. This system was funded as part of a UK Aid programme, “Kaduna Solar.”

able energy and minigrid investment due to the size of the market — 75 million people without access to electricity and another 30 million people that are connected to the grid but do not receive any electricity,” said Mark Amaza, who leads strategic communications and research for developingworld, distributed sustainable energy advocacy Power for All. EM-ONE’s CEO, Mir Islam com-

ments “Having worked in Nigeria’s power sector for over 20 years, we know that customized and decentralized energy solutions are the way forward to leapfrogging Africa’s energy access challenges.

The EM-BOX is a customized energy solution that builds upon the lessons learnt from electrifying rural and off-grid Nigeria.

The EM-BOX has been designed to be a plug-and-play standard sys-

tem that is modular and scalable and uses best-in-class technologies like Schneider to deliver long standing and sustainable value to donors, investors and the offtakers alike. We look forward to continuing to work with Schneider to expand the electrical footprint of Africa while enabling local capacity, jobs, reducing carbon emissions and providing greater access to social benefits.

“This is the second largest population of people without access to electricity in the world after India and the largest in Africa,” stated Amaza. “Another reason is that over the past three years, the government has focused a lot of attention on the off-grid power sector in terms of policies, plans, and targets, such as the 10,000 minigrids by 2023 and the $2 billion investment initiative.”

Nigeria has the most comprehensive mini-grid regulation in Africa- World Bank report DIPO OLADEHINDE

E

ven though they exist in a handful of countries, , a technical report technical report released

by World Bank has revealed Nigeria is one of the leading countries in terms of regulating the operations of Minigrid operations in Africa.

Stakeholders have always tasked the government on better regulation in renewable energy space, a key component in Nigeria’s economy which needs quick and stable growth over a few decades if it’s to create jobs for 21 million unemployed citizens and lift 87 million people out of extreme poverty.

“Nigeria is one of the frontier countries; the regulator has adopted one of the most comprehensive sets of mini grid regulations in Africa covering issues like licensing, retail tariff setting, and what happens when the main grid arrives,” says World Bank’s 2019 report titled “Mini Grids for Half a Billion People”.

According to the World Bank regulation plays a key role in most of the countries (Bangladesh, Cambodia, Kenya, Myanmar, Nepal, Rwanda, and Tanzania) with the fastest gains in electrification between 2010 and 2018.

“Nigeria is another recent example of a country that has developed a

comprehensive national electrification strategy and implementation plan,” World Bank report said.

Nigeria’s main sources of electricity which could have provide solutions are not producing sufficient energy to meet the country’s demand. And for many decades, homes, businesses, industries and farmers have faced the big challenges when accessing electricity as manufacturers or farmers require

nearly continual energy to increase production.

To address this challenge, Nigeria’s Rural Electrification Agency (REA) is implementing the World Bank–supported Nigeria Electrification Project (NEP), which aims to scale up investment in mini grid and off-grid solutions.

On April 15, 2019, the REA launched the mini grid and solar home system components of the

ANALYSTS: Isaac Anyaogu (Team Lead), Stephen Onyekwelu, Dipo Oladehinde

NEP. The mini grid component aims to extend electricity services to 300,000 households and 30,000 enterprises in rural areas by 2023.

Based on a recent experience in Nigeria, World Bank noted that portfolios of mini grids can be prepared to the point where they are ready for full feasibility assessment and community engagement at a cost of about $2,300 per site.

“The largest components of this

per-site cost are socioeconomic surveys and energy audits to estimate electricity demand and willingness and ability to pay. These components account for 58 percent of the total per-site cost, and their costs are largely linear since the primary driver is human resources,” World Bank said in its 2019 report.

Although the World Bank also admitted that technology can help expedite the completion of these labor-intensive tasks through the use of drones to map out a village and efficiently sequence household visits by enumerators, or through the use of tablet-based software to swiftly and more accurately capture survey data.

The World Bank admitted that several governments have incorporated mini grids as part of their energy policy, giving the systems and industry a place in the energy sector although some countries have adopted mini grid regulations that allow for a light-handed approach.

“In some countries, e-government has streamlined the process for obtaining location and building permits. Even though these costs are important, they are not expected to change significantly in high–energydeficit countries over the next decade unless efforts are undertaken to facilitate doing business in these countries,” World Bank noted.

Feedback: 07037817378, 08137433034, 08135447789

email: isaac.anyaogu@businessdayonline.com, stephen.onyekwelu@businessdayonline.com, oladehinde.oladipo@businessdayonline.com

Tuesday 09 July 2019

BUSINESS DAY

31

Live @ The Exchanges Market Statistics as at Monday 08 July 2019

Top Gainers/Losers as at Monday 08 July 2019 LOSERS

GAINERS

Company

Opening

Closing

Change

N148

N140

-8

N27

N24.3

-2.7

GLAXOSMITH

N10.2

N9.2

-1

0.45

NB

N60.4

N60

-0.4

0.45

GUARANTY

N29

N28.85

-0.15

Company

Opening

Closing

Change

FLOURMILL

N15

N16.5

1.5

TOTAL

NASCON

N15

N15.5

0.5

FO

REDSTAREX

N4.95

N5.4

0.45

CADBURY

N11

N11.45

N129

N129.45

MTNN

ASI (Points) DEALS (Numbers) VOLUME (Numbers)

29,287.87 3,206.00 2,270,001,430.65

VALUE (N billion)

2.270.

MARKET CAP (N Trn)

12.909

Global market indicators FTSE 100 Index 7,549.27GBP -3.87-0.05% S&P 500 Index 2,972.59USD -17.82-0.60% Generic 1st ‘DM’ Future 26,770.00USD -115.00-0.43%

Deutsche Boerse AG German Stock Index DAX 12,543.51EUR -25.02-0.20% Nikkei 225 21,534.35JPY -212.03-0.98% Shanghai Stock Exchange Composite Index 2,933.36CNY -77.70-2.58%

Stock market records marginal gain of N7bn …NSE lists additional 586.3mn units of Fidson Healthcare Stories by Iheanyi Nwachukwu

T

he Nigerian stock market opened this week on a positive note with a marginal gain of approximately N7billion recorded at the sound of clos-

ing gong by 2.30 pm.

The Nigerian Stock Exchange (NSE) All Share Index (ASI) advanced by 0.07percent to 29,287.87 points while market capitalization increased to N12.909trillion from a preceding trading day low of 29,270.95 points and N12.902 trillion respectively.

Month-to-date (Mtd), the

market has lost 2.25percent of its value, while year-todate (ytd) its negative returns stood at -6.80percent. In 3,206 deals on Monday July 8, equity dealers exchanged 216,288,524 units valued at N2.270billion.

Wapic Insurance Plc, FBN Holdings Plc, Zenith Bank Plc, Mutual Benefit Plc, and

UBA Plc were actively traded stocks on the NSE. Flour Mills Nigeria Plc recorded the highest price gain, after its share price moved from N15 to N16.5, adding N1.5 or 10percent, while Total Nigeria Plc declined most from N148 to N140, losing N8 or 5.41percent.

Other top gainers in-

clude NASCON Plc which increased from N15 to N15.5, adding 50kobo or 3.33percent and MTN Nigeria Plc which rose from N129 to N129.45, after adding 45kobo or 0.35percent.

On the top losers table, other stocks there include Forte Oil Plc, which decreased from N27 to N24.3,

L – R: Mike Itegboje, former president, Chartered Institute of Stockbrokers (CIS); Oluseyi Abe, immediate past president, CIS; Oscar N. Onyema, OON, chief executive officer, The Nigerian Stock Exchange (NSE); Mary Uduk, acting director general, Securities and Exchange Commission (SEC); Dapo Adekoje, president, CIS; Oladipo Williams, past president, CIS and Oladipo Aina, past president, CIS during the Closing Gong Ceremony in commemoration of the induction ceremony of Mary Uduk, acting director general, SEC at the Exchange in Lagos.

Nigerian-British Chamber of Commerce installs new president

T

he Nigerian-British Chamber of Commerce (NBCC), the foremost bilateral Chamber of Commerce in Nigeria, after a successful Annual General Meeting (AGM) announced Kayode Falowo as its 16th President and Chairman of Council of the Chamber.

Kayode Falowo is the Group Managing Director/ CEO of Greenwich Trust Limited. He is an astute investment Banker with over 30 years of banking experience and a distinguished Fellow of the Chartered Institute of Stockbrokers.

He also served as Deputy President in the last administration and was a key participant in its planning and decision-making processes and implementation.

The President, in his inaugural address at the 40th

Annual General Meeting held on 27th June, 2019 at Radisson Blu Anchorage Hotel, Victoria Island, Lagos stated that over the next two years, he will sustain and increase the pace of achieving the Chambers’ objectives, improve the brand equity, enhance membership experience and move towards the shared vision of building the NBCC Plaza.

The highlights of the programmes that will be implemented during his administration include the commissioning of the NBCC Plaza and the dedication of a facility to host the Brit-

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ish Trade Center within the premises; establishment and launching of a Nigerian Trade Center in the UK to be located in Central London, reviving the British Golf Cup as a platform for attracting market leading Nigerian and British Businesses.

At the AGM, the report of the council audited financial statements for the year ended December 31, 2018 and the reports of the auditors were presented to the members.

Also elected into the National Executive Committee were Bisi Adeyemi and Alan Davies as Deputy Presidents; 3 Vice Presidents namely; Nnamdi Okonkwo, Uwamai Igein and Prince Bimbo Olashore and Wole Oshin as Treasurer. New council members were also elected at the annual general meeting.

after losing N2.7 or 10percent, and GlaxoSmithKline Consumer Nigeria Plc which decreased from N10.2 to N9.2, after losing N1 or 9.80percent.

In its market bulletin released on Monday July 8, the Nigerian Stock Exchange noted that it listed additional 586,360,250 ordinary shares of Fidson Healthcare Plc. The additional shares listed arose from Fidson Healthcare’s Rights Issue of 750million ordinary shares of 50 kobo each at N4 per share on the basis of 1 new ordinary share for every 2 ordinary shares held as at December 28, 2018. The Rights Issue was 78.18percent successful.

With the listing of the additional 586,360,250 ordinary shares, the total issued and fully paid up shares of Fidson Healthcare has now increased from 1.5billion to 2,086,360,250 ordinary shares.

The additional ordinary shares of the company were listed on the Daily Official List of The Nigerian Stock Exchange on Monday, 1 July 2019.

SEC tasks stockbrokers on professionalism, capital market growth

T

he Securities and Exchange Commission (SEC) has urged members of the Chartered Institute of Stockbrokers (CIS) to continue to uphold the tenets of the noble profession and strive to contribute to the growth of their respective organisations, and the capital market at large.

Mary Uduk, Acting Director General of SEC who stated this during her induction ceremony as an Associate Member of the CIS in Lagos Monday, said by promoting and protecting the interests of the profession through prescribing and upholding the highest standard of service and integrity, the institute contributes highly

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to the attainment of a capital market of our dreams.

She said the strong collaboration between the CIS and the SEC has led to the achievement of tremendous results over the years, especially in deepening the capital market. One of such collaborative initiatives she said, led to the development of a stand-alone capital market studies curriculum to be introduced at the Basic and Secondary Schools levels of education in Nigeria.

“The initiative, which is in partnership with other stakeholders, is one of the cardinal objectives of the Capital Market Master Plan, aimed at inculcating a culture of financial literacy and boosting investment educa@Businessdayng

tion in Nigeria” she said.

According to Uduk, “The strength of character and service innovation of our professionals is one of the yardsticks with which the Nigerian capital market is benchmarked by the investing community. The way and manner capital market professionals conduct businesses with clients will affect how our market is perceived.

“At the Commission, we recognize that the Institute is a critical stakeholder in the capital market, and therefore, should strive to continue to maintain the highest level of professional standard towards ensuring that our market remains manned by the most competitive professionals in the world”.

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Tuesday 09 July 2019

BUSINESS DAY

INTERVIEW ‘Women in Africa’s energy sector should be purposeful’ Mariah Lucciano-Gabriel, head, Commercial & Business Development, Asharami Energy (A Sahara Group Upstream Company) represents the growing wave of vibrant African professionals committed to transforming the continent. She was one of the panelists at a session in the recently concluded Oil and Gas Council’s Africa Assembly in Paris. In this interview with Dipo Oladehinde, she highlights the need for gender parity at all levels in the energy sector.

What has your experience been as a senior manager at Sahara Group’s Upstream division? joined Sahara’s training program at the age of 22 with no prior knowledge or desire to work in the energy industry nor a STEM degree (my first degree was in Economics, Finance and Management) and after six months of hands on training within all the Sahara companies which cuts across downstream, midstream, upstream and operations, I was deployed to the upstream arm and asked to coordinate the next internship program simultaneously. These are the sort of opportunities and challenges you face working in a fast paced innovative company like Sahara.

After a year of juggling both roles, I focused solely on the Upstream covering Government & Partner Relations, Business Development and Commercial Operations and 10 years down the line I now head the Commercial & Business Development Unit of the Upstream arm.

The upstream sector of the Nigerian energy industry is a highly regulated and competitive one being that it accounts for over 90percent of Nigeria’s GDP and as such this brings its own set of challenges to my role.

However, I am able to work through problems and achieve solutions because the work environment at Sahara fosters innovation and employees are made to own the vision and given the freedom to be creative around solving problems.

I have been able thrive in the company because your contributions and successes are valued, recognized and rewarded regardless of gender, age or position. As I say to my colleagues; I don’t work like a man or a woman, I work like someone who needs to get the job done and that is all Sahara sees and that is what is rewarded.

In Sahara, you do not get passed up on a promotion simply because you are female and they fear your family obligations as a woman may conflict with your work obligations. In stark contrast, the company supports you in achieving those obligations so that you are able to better perform at your job and that performance never goes without reward!

What do we need to do in Africa to encourage the emergence of more women in the energy sector?

On a foundational level, the government and private sector need to encourage young girls to pursue Science Technology Engineering and Mathematics (STEM) degrees through workshops and organized school programs. To start with, many girls don’t even know the career options available to them in Energy industry, it is important to start at the school level to promote the various career paths available both through STEM and Non-STEM pathways because the Energy industry is bigger than just engineering.

Furthermore, younger girls need to see more female role models at

I

Mariah Lucciano-Gabriel

the top so they know what can be achieved and be inspired to do more.

It is hard to want what you cannot visualize so leading women have a duty to promote themselves more and share their stories with other women.

More critical than just getting women in through the door is retaining and promoting them, a study showed that at entry level there was 35percent women participation in the industry but as it got to executive level the percentage dropped to 8percent! So women are coming in but the companies are not retaining or promoting them into leading roles.

As women, we need to know that there would be sacrifices to be made and the road to the top may not be easy when combined with our roles as nature’s chosen primary caregiver but it is not impossible, we need to use all the support we can get from family and friends and we should be willing to be flexible and think creatively around juggling our roles.

If companies are really serious about getting more women in leading positions then they must adopt female friendly work policies such as nursing rooms, allowance for childcare, flexi work practices etc to support women and help them achieve their career goals without jeopardizing personal goals.

“

What would be your greatest achievement in the sector?

The interesting thing about being an entrepreneur in a company like Sahara is that the company’s successes are my successes and vice versa. Sahara was one of the first indigenous E&P companies to enter into the Nigerian upstream sector as far back as 2004 as an Operator (not just an ‘asset broker’ peddling off assets to IOCs with the technical and financial capabilities) and has grown its assets organically form exploration thorough appraisal, development and production.

I am proud to have been an integral part of its success today by way of Bid participation, government stakeholder engagements and commercial negotiations. I look forward to playing my role in making the company the pre-eminent indigenous producer in Sub-Saharan Africa by 2025 with production in excess of 100,000 barrels of oil production per day.

Having made my mark professionally in the sector, it would be my greatest achievement to reach young girls through sharing my experience and to drive the movement for gender parity at boardroom level in energy industry on a national level How do you intend to help younger women find their feet in the industry?

The perception that to be a successful woman in a male dominated field you must be unmarried or be a bad mother kills many women’s ambition and this perception could not be farther from the truth

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I started making a conscious effort to offer advice to younger girls within my immediate sphere of influence who want to pursue a career in the energy industry. I mentor some younger ladies in the sector.

I will continue to strive for excellence in my career and share my stories, challenges and successes on a wide platform so that younger girls can have not just a role model to emulate in the energy sector but also a blueprint and relatable pathway to help them navigate their careers. It is important for women to know that it can be done despite gender specific challenges.

Where do you get the inspiration to keep up with the rigors of work in your sector?

The rewards and recognition for my contributions to company’s success certainly makes the countless late nights, early mornings and constant flying worth it but more than anything; I like to WIN! And winning does not come without sacrifice so that keeps me moving.

Why do think achieving Balance in the Boardroom is so important?

It is important not just because we should all have the same rights and opportunities regardless of gender.

But also because a boardroom of 10 men of a similar age and similar background are likely to think in the same way and have the same ideas whereas a diverse group of gender, ages and backgrounds would produce innovative ideas that change the status quo and achieve the unthinkable. Furthermore, energy use is not gender neutral, women are more greatly affected by energy availability and policies than men yet you have 89percent of men at helm of decision making in energy.

The struggle for gender parity cannot truly be achieved without a balanced boardroom because in some cases, even though the men have the intention of achieving a more gender balanced workforce, they would not know those policies that would help women.

I recently spoke around some of these issues on a panel and gave an example of the introduction of a nursing room in Sahara, afterwards the CEO of a Nigerian Oil servicing company came up to me and said he was going introduce the same in his company because he didn’t realise something so small could have a great impact for women. It wasn’t because he was unwilling to support his female staff, he just didn’t know how he could because there was no female perspective at the decision making level.

What are some of the perceptions or biases in the Africa Energy Industry that hinder women’s entrance and/or growth and how do we overcome them?

There’s a dominating perception that the energy industry is for engineers and thus for men mostly, we need to also promote the nontechnical but equally important @Businessdayng

career paths in the energy industry such as Legal, Commercial, Government Relations, Supply Chain, Business Development etc. Furthermore, many companies have a biased pay structure that favour the men and penalise the women for taking time off for personal/family issues and as such many women exit the industry midcareer because they feel undervalued.

The perception that the energy industry is reserved for men can be pulled down further if successful industry women put themselves out there a bit more so that younger girls have more role models.

We also need to realise that when we as women get to the top we don’t need to strip away our femininity or bury those female specific hurdles we had to jump and blend in with the men by replicating the habits of our successful male executives, the world needs our fresh feminine perceptive.

We can’t keep sending the message that ‘we need to be men to succeed in this industry’ it discourages younger girls from pursuing this career line. The perception that to be a successful woman in a male dominated field you must be unmarried or be a bad mother kills many women’s ambition and this perception could not be farther from the truth! According to William Domhoff; author of Women, African American Leaders of Fortune 500 companies, of the 28 women who have served as CEOs of fortune 500 companies, 26 of them were married for over 10years minimum.

Mentorship and Sponsorship in the workplace are important in reaching the top of one’s career however women are disadvantaged because unconsciously, people are drawn to mentor those that remind them of their younger selves so unconsciously men are drawn to mentor/sponsor younger men and the boardroom in the first place is full of men so no one looking out for the women. Men need intentionally overcome this unconscious bias and take up sponsorship roles for younger promising female talent in the industry and not just provide them guidance but also recommend them for opportunities when possible.

What is your advice to women in more junior positions?

Be intentional about your growth, be visible in the workplace, seek assignments and seize opportunities, join and be active in networks. The road to the top will not be easy or straightforward, stay determined, be flexible and creative in achieving balance between the home and workplace. It is not enough to be good at your job and sit quietly in the corner waiting to be noticed and whisked to the C-Suite, you need to break walls, smash windows and take a seat at the table because you deserve to be there, you are doing the world a huge favour by being there and remember that you really can have it all but just not at the same time so know when to pursue what.

Tuesday 09 July 2019

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news Nigeria’s oil sector suffers consecutive...

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in Africa, the oil prosper-

ity story has turned sour in recent times. Nigeria’s oil sector re-entered its second recession in three years in the third quarter of 2018 after the sector reported negative growth for the second consecutive quarter.

In Q2 2018, oil sector contracted -3.95 percent and in Q3 2018, it contracted -2.91 percent. In Q1 2019, the sector reported its fourth consecutive negative decline with a contraction of about -2.4 percent, according to data compiledfromNationalBureau of Statistics (NBS). The crude oil sector had earlier exited a yearlong recession in Q2 2017.

“Nigeria’s crude oil sector has now been in a recession for over a year which could be very catastrophic for the economy. Even though its contribution to GDP has been in decline for years, the Federal Government is still heavily reliant on oil export earnings to finance Nigeria’s budget,” said Maju Eldad, a lecturer of Economics at Federal University of Kashere,

Gombe State, in the country’s northeast region.

Since1999,anestimated$801 billion worth of crude oil has beenproducedinNigeriawithat leasthalfoftheoilproductionrevenueaccruingtothegovernment through oil tax royalties. This translates to average annual oil productionrevenueof$20billion for Nigerian government since 1999.Thisyear,Nigeriaprojectsto produce about 2.3 million bpd at a benchmark price of $60, translatingtoatotalrevenueofaround $50.3 billion, or $25 billion for the three tiers of government, yet oil sector growth performance has continued to dwindle with the sectorcontractingby-2.4percent in the first quarter of 2019.

The crude oil sector was the mainstay of the Nigerian economybeforethemovetodemocratic leadership in 1999 but the super sector seems to have lost its fire over the last two decades as its contributiontoGDPhastumbled fromashighas29percentin1999 to just 9 percent in 2019.

Still, even with oil losing its firepower, Nigeria’s government’s overreliance on crude oil earnings hasn’t got any better

as the country expects to generate more than 50 percent of its budgetedrevenuefromoilsales.

According to Udo Udoma, Nigeria’s immediate past minister of budget and national planning, the Federal Government’s overall revenue performance was only 55 percent of the target in the 2018, creating a budget deficit of around N3 trillion.

Oil revenue deficit alone was almost N700 billion in 2018. According to the former minister in his public presentation of the 2019 budget in May, the poor government revenue performance in 2018 was due to some one-off items, such as the N710 billion from Oil Joint Venture Asset restructuring and N320 billion from revision of the Oil Production Sharing Contract legislation/terms, are yet to be actualised and have thus been rolled over to 2019.

The outlook for the oil sector remains bleak as the world gradually moves away from its reliance on fossil fuels for energy to renewable and sustainable energy sources. Brent crude oil price traded around $64 on Monday, down from $78 a year ago. If Nigeria’s crude oil sector can’t grow at $60 oil

price, it’s shocking what could become of the sector if oil prices decline further, analysts say.

Meanwhile, as the Nigerian National Petroleum Corporation (NNPC) hopes for a new growth era with Melo Kyari assuming full responsibilities as the new group managing director of the corporation on Monday, July 8, 2019, the new helmsman at the corporation has set a target of 2023 to ensure all Nigerian local refineries operate at optimal capacity.

“Before 2023, we will work hard to deliver all Nigerian local refineries to perform optimally, and become a net exporter of fuel. This is a target we have set for ourselves and we would achieve it,” said Kyari, the new NNPC GMD, in an acceptance speech at the corporation’s headquarters in Abuja after he was officially handed over the mantle of leadership of the corporation.

Kyari said that the corporation would work to deliver an oil company that 200 million Nigerians would be proud to be shareholders of.

“NNPC under my watch will not be opaque, and we have the responsibility of being account-

abletoavailinformationtoabout 200 million Nigerians who actually own the company. We will work with the press to ensure more transparency,” he said.

The new GMD said the corporation would work with global transparency bodies such as Extractive Industries Transparency Initiative (EITI), alongside the Nigerian Extractive Industries Transparency Initiative (NEITI) and the global Open Government Partnership which President Muhammadu Buhari signed on to as a commitment to Nigeria’s stance in fight against corruption.

Kyari noted that there would be no corruption where there was no discretion.

“We are going to work with EFCC to take out discretion in our system. What does it tell you that the chairman of an anticorruption agency is attending the retirementof the chief executive of an office people see as corrupt?ItmeansthattheNNPChas changed. We are going to work more closely with him,” he said.

Speaking on collaboration with International Oil Companies, Kyari said, ”We are going to work with the IOCs to grow productions, grow reserve and

ensure a win-win situation.”

In his earlier valedictory remarks, Maikanti Baru, immediate past GMD of NNPC, said the corporation is in safe hands with Kyari at the helm of affairs, urging him to surpass any target set by him in his 1099 days as the GMD. He listed some key achievements to include increased and sustained crude oil and gas production to above 2 million barrels (2.3 million barrels per day as at July 5, 2019) and gas production of 8,000MMscfd.

“Reduced contracting cycle from 24-36 months to 9 months. Revitalised, improved and sustained NPDC equity production from 22kbopd in 2016 to 165kbopd in 2018; actively renegotiated the cash call arrears repayment and exit. Lead the PSC disputes resolution and PSC terms’ renegotiation. Focused on supporting the various financing syndications and successfully delivered the over $10bn raised; structured the transition from JV to IJV and set up the asset management structures in NPDC and NNPC JVs,‎” he said.

Africa’s 2 largest economies diverge on...

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ployment.

While Nigeria seems to be combining monetary policy with a developmental bent similar to fiscal policy, South Africa just made a fresh vow to erect an impenetrable wall between the two to ensure they never collide.

The South African Reserve Bank and finance ministry issued a joint statement Thursday where both institutions vowed to respect each other’s independence.

The Reserve Bank will focus on the primary mandate of any central bank and steer clear of interfering with fiscal policy matters while the finance ministry will not meddle in areas of monetary policy.

The South African arrangement which shares similarities with the structures in place in developed economies has little semblance with the arrangement in neighbouring Nigeria.

In Nigeria, the central bank is gradually taking the role of a de facto development bank that is stimulating economic growth and employment.

“Central banks can occasionally provide support for fiscal authorities but this should not be seen as the

norm,” a research head at a Lagos-based pension fund who pleaded anonymity told BusinessDay. “In our case, it has gone on for four straight years and shows no sign of slowing.”

The source said that the CBN runs the risk of becoming an extension of the Federal Government.

“The problem is the Senate has not tried to plug that gap.

How much is the CBN lending to the FG? The Senate should be auditing the number every year because the CBN would have to curtail the pressure it is facing,” the person said.

But the Central Bank of Nigeria’s new burden has been borne out of necessity, Johnson Chukwu, founder and CEO of Cowry Asset Management Limited, posited.

“The reason we are seeing this in the Nigerian economy is that the fiscal authorities have been relatively silent and nature abhors vacuum,” Chukwu said.

He explained that although the resources of the monetary authorities are being stretched, the availability of a finance minister active on carrying out the fiscal mandate would allow the CBN return to its core function.

The apex bank has since 2014 devoted itself to pro-

Afreximbank announces $1bn facility...

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AfCFTA, “you have started a movement”.

“You must not look back, this movement is now unstoppable,” said Oramah.

He added that, as part of its support for the implementation of the AfCFTA, the bank had provided support to aid the work being done by the African Regional Standards Organisation and the AU in

implementing the agreement.

Oramah also informed the Summit of the launch of the Pan-African Payment and Settlement System (PAPSS), the first continent-wide payment digital system focused on facilitating payments for goods and services in intra-African trade in African currencies.

“Today we will launch the Africa-wide digital payment infrastructure – the Pan-Afriwww.businessday.ng

L-R: Ainojie Irune, chief operating officer, Oando Energy Resources; Muntari Zubairu, chief corporate services and operations officer, Oando; Adewale Tinubu, group chief executive, Oando, and Mele Kyari, group managing director, Nigerian National Petroleum Corporation, at Oando’s award-winning exhibition booth during the Nigerian Oil and Gas Conference, 2019 in Abuja.

grammes such as the Anchor Borrowers’ Programme, Real Sector Support Facility (RSSF), Electricity Market Stabilisation Facility, Creative Industry Financing Initiative and several others.

The bank regulator, which has become more intent on interventions in key sectors to grow the economy, facilitate job-creation, and create credit, says the pursuit has been in a bid to “ensure that the CBN is more people fo-

cused”. Godwin Emefiele, CBN governor, said this in June while outlining the apex bank’s policy thrust over his second term.

The central bank would still remain committed to the same over the next five years. But the situation though with its perks is not without downsides.

Experts warned that central bank’s development mandate could crowd out the real sector.

“What happens is there is distortion in the market

when the CBN has to lend at single digit to certain sectors while official interest rate is at double digit to curb inflation,” a BusinessDay source said.

The central bank last Thursday released the guideline on regulatory measures to improve lending to the real sector of the Nigerian economy. The policy mandates all Deposit Money Banks to maintain a minimum Loan to Deposit Ratio (LDR) of 60 percent by September 30, 2019.

The bank said it would penalise non-compliance with a levy of additional Cash Reserve Requirement (CRR) of up to 50 percent of the lending shortfall of the target LDR. Although the policy aims at boosting real sector growth by making credit available to businesses, experts fear the unintendedconsequencesofincreasing banks’ bad loan books as infrastructural challenges which have been a drag on company performance remain.

can Payment and Settlement System (PAPSS) – that we developed in collaboration with the African Union,” he said. “It is a platform that will domesticate intra-regional payments, save the continent more than $5 billion in payment transaction costs per annum, formalise a significant proportion of the estimated $50 billion of informal intraAfrican trade, and above all, contribute in boosting intraAfrican trade.”

Oramah stated that by making it possible for Africans to pay for intra-regional trade in their local currencies, “the digital platform will deal a fatal blow to the underdevelopment of Africa caused by defragmentation of its economies”.

“Our goal is to reduce, significantly, the foreign currency content of intra-African trade payments,” he said.

Noting that “no people have achieved meaningful

development when their economic progress depends on others”, he argued that in the “renewed focus on industrial and value-chain development across the continent in trying to boost trade and investment, it is imperative that we address the economic costs of effecting so many payments in scarce foreign exchange”.

“Making cross-border payments easier, cheaper and safer is an obvious critical step in creating an Africa we want,” he said.

The Organised Private Sector (OPS) in Nigeria has, meanwhile, listed the benefits of Nigeria’s commitment to the pact, even as it urged the government to step up efforts on infrastructure development to ensure Nigerian goods compete effectively with other African products in a single African market of about 1.2 billion people.

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news

Nigeria strengthens cross-border immunisation with focus on nomadic populations Jonathan Aderoju

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n renewed efforts to vaccinate children traversing in and out of Nigeria, the World Health Organisation (WHO) is supporting the government in an initiative to improve supplemental and routine immunisation activities in the North Western region, which has a significant nomadic population.

Nomadic pastoralists live beyond the reach of established health care programmes that are designed to serve sedentary populations. As a result, these groups are often underimmunised and out of the reach of existing disease surveillance activities.

Speaking on the intervention, Gwanda Mairakuma of Maiadua Local Government Area in Niger Republic, said, “With this intensified commitment, vaccination activities have reduced the number of complications associated with measles infection on our children.”

Difficulties have been experienced in the past in tracking and reaching nomadic populations with services such as

sensitisation on early disease reporting, immunisation activities and access to general healthcare services due largely to the nature of their movement, which often involves settling in hard-to-reach transit camps.

Reaching the nomadic population in the cross-border areas of the North Western region has been particularly difficult due to the nature of the population, which involves settling in hard to reach and sometimes security compromised areas, making the zone the highest with under-immunised children in the country.

Jigawa and Katsina states in particular are maximising efforts in reaching these populations by identifying major migrant groups and characterising the movement of nomadic populations in the region for effective administration of vaccines.

In collaboration with Katsina State government, WHO has intensified efforts to reach nomadic communities across the state with immunisation services, sensitisation on prompt disease reporting and on the need to access healthcare services.

NAFDAC indicts National Eye Centre over application of wrong injection

BPP failing on non-composition of National Council on Procurement - experts Tony Ailemen, Abuja

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igeria’s public procurement policy compliance is said to be failing on noncomposition of the National Council on Public Procurement (NCPP).

The Bureau for Public Procurement Act of 2007 as amended, provides for the establishment of the NCPP, under Section 1.1.1 of the 2007 Procurement Act as amended in 2018.

The body, according to the Act, is the governing body on issues relating to public procurement in Nigeria. It is the highest-level organ with approval powers on issues relating to the administration and management of public procurement under the Public Procurement Act of 2007, as amended.

But BusinessDay investigations show that the absence of the body has weakened the activities of the Bureau for Public Procurement BPP, as most of the Agency’s functions are now being taken over by other Ministries, Departments and Agencies (MDAs), according to

procurement experts and Civil Society advocacy groups.

Buhari’s first four years administration did not do much to enforce procurement governance, Civil Society groups who are concerned by this development say, and according to them, this failure is fast derailing gains made by past administration to raise public procurement bars.

Executive director of the Civil Society and Legislative Advocacy Centre (CISLAC), Auwal Ibrahim (Rafsanjani) describes the development as a “huge loss and embarrassment to the nation.”

According to Ibrahim, “The huge setback means that all the problems BPP Act of 2007 was set up to address are now back with us.

“This is also a huge indictment for Buhari given his promise to fight corruption. He has not been able to give the nation a good procurement record under his administration, despite the hype about fighting corruption.”

Ibrahim, who spoke with

BusinessDay in Abuja, said, “those the President accuse of perpetrating corruption did even better as they were able to put laws in place to sanitise the procurement process, which the current administration has now abandoned.”

He advised the President to as a matter of urgency constitute the NCPP and carry out all necessary amendments that would strengthen the procurement law.

He further warned, “The current administration must not carry out any amendments that will further weaken public procurement policies,” lamenting the sidelining of the Civil Society groups who helped to sensitise the general public in the past on the public procurement process.

“Even the civil society group, which played prominent roles in sensitisation and enlightenment in public procurement process, has been sidelined since the coming of the current administration,” he said.

BusinessDay checks show that with the absence of the

NCPP, most of the functions of the BPP have been taken over by the office of the Secretary to the Government of the Federation (SGF) and the ministers, a situation that has seen weakening contract agreements with the consequent improper implementation, augmentation, revocation and in some cases outright abandonment, among others.

The Act empowers the President to constitute the body, which shall be made up of the Minister of Finance as Chairman, the Attorney-General of the Federation and Minister of Justice, Secretary to the Government of the Federation, Head of Service of the Federation, Economic Adviser to the President, as members.

Other members include six part-time members to represent the Nigeria Institute of Purchasing and Supply Management, Nigeria Bar Association, Nigeria Association of Chambers of Commerce, Industry, Mines and Agriculture, Nigeria Society of Engineers and the Civil Society group.

… costing 10 patients their eyesight CALEB OJEWALE

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ast month, 10 patients at the National Eye Centre, Kaduna, lost their sight following the administration of Avastin 100mg injection, an injection actually meant for cancer treatment.

Thisdecisionhasnowbeenfound wanting by the National Agency forFoodandDrugAdministration and Control (NAFDAC).

The said Avastin injection, according to NAFDAC, was registered in Nigeria for metastatic colorectal cancer, metastatic breast cancer, advanced metastatic or recurrent non-small cell lung cancer, advanced and/or metastatic renal cell cancer, ovarian cancer and cervical cancer.

“Therefore, the use of Avastin injection at the National Eye Centre was an off-label use,” said NAFDAC in a statement sent to BusinessDay, “that is, it is not indicatedonthelabelbythemanufacturer or approved for treatment of eye ailments by NAFDAC.” The statement further noted that Avastin 100mg injection

manufactured by F. Hoffmann-La Roche, Kaiseraugst 4303 SwitzerlandisregisteredbyNAFDACwith NAFDAC Registration Number A6-0123. Avastin 400mg injection manufactured by F. Hoffman-La Roche, Mannheim, Germany is also registered with NAFDAC Registration Number A6-0101.

However, the product, as evidenced by the usage in Kaduna, appears to be wrongfully administered on patients, for purposes other than what it is labelled for.

The NAFDAC statement follows an investigation after a report of the incident was made, and circulated in the media.

According to NAFDAC, a team was constituted to investigate the situation, and members of the team met with the management of the National Eye Centre, Kaduna. One packet of Avastin injection in stock at the hospital was taken for laboratory analysis to ascertain the quality of the product, and the report of analysis revealed that the Avastin injection conforms to quality specifications.

SON seizes substandard materials worth N38m in Lagos JOSEPH MAURICE OGU

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tandards Organisation of Nigeria (SON), Monday, seized building materials stocked in a warehouse at Ajayi Street, Ojodu, Lagos, worth N38 million.

SON stormed the said warehouse Monday morning to confiscate some building materials considered to be substandard, and they included roofing sheets and roofing zinc galvanisers.

Obiora Manafa, director, inspectorate/compliance monitoring, SON, said a special joint taskforce was inaugurated by the directorgeneral of SON with the aim

of eradicating substandard roofing sheets from the markets, and that was what the monitoring team was out to achieve.

According to Manafa, the taskforce was given 13 points term of reference but the overall mandate was to eradicate substandard products from Nigerian markets.

On assessing the said warehouse, Manafa said the organisation was able to identify some substandard roofing sheets, galvanised and steel roofing sheets, which would were evacuated away for destruction, in accordance with their mandate. www.businessday.ng

L-R: Okechukwu Enelamah, former minister, industry, trade, and Investment; Joe Ezigbo, managing director/CEO, Falcon Corporation Limited; Audrey Joe-Ezigbo, executive director/co-founder, Falcon Corporation Limited/president, Nigerian Gas Association, and Ben Akabueze, director-general, Budget Office, at the Falcon Corporation Limited 25th anniversary in Lagos, recently.

INEC seeks media guidance to improve electoral process OLUWASEGUN OLAKOYENIKAN

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n a bid to improve the administration and management of elections in Nigeria, the Independent National Electoral Commission (INEC) has sought the views of the media, civil society groups, and organisations on critical issues in Nigeria’s election process that could be improved on.

The issues, INEC said, may not be at the front burner of the lawmakers, but were needed to appraise the challenges in the 2019 general elections, adjust or jettison some of the processes that failed to deliver expected results.

“There are issues which many of you felt you could

raise for INEC for the improvement of the electoral process but only if you had access to us,” Mahmood Yakubu, INEC chairman, said at a review meeting for line editors in Lagos on Monday.

Yakubu noted that the avenue had been created for the press to air their perspectives on a number of issues, as they don’t just analyse events, but were also citizens of the nation.

“This period offers us the opportunity to make suggestions and recommendations on how to properly and convincingly domicile credible elections in Nigeria,” Festus Okoye, INEC national commissioner, stated while delivering his address. “We must be careful not to fall into

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the trap of believing that every electoral challenge must be solved through constitutional or Electoral Act amendment.”

Part of the issues the electoral umpire presented for media critique was a constitutional and legal framework for the registration and regulation of political parties. INEC pointed out that the toughest condition for the registration of political parties in the country was the requirement of having an office in the Federal Capital Territory, Abuja.

As a result, the electoral commission sought to know if the number of parties should be regulated through legislative interventions or place a threshold on the conditions for getting on the ballot.

The issue of deregistration @Businessdayng

of political parties trailed closely. “Are the conditions ambiguous and leave room for multiple interpretations?”

INEC inquired. It further asked if deregistered political parties and their sponsors could be allowed to re-apply for new registration and be registered within 30 days as prescribed by law for new entrants.

On the possibility of shortening timelines provided for the activation of the courts and disposal of all pre-election matters, INEC asked if there was “a possibility of altering the constitution and moving timelines backward to make for the determination and disposal of all preelection matters before the conduct of elections”.

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FINANCIAL TIMES

World Business Newspaper KERIN HOPE

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yr iakos Mitsotakis has been sworn in as Greece’s prime minister after his centre-right party regained power with a sweeping general election victory, raising hopes of a return to growth and stability in a country rocked by years of recession and three international bailouts.

The conservative New Democracy party captured 39.8 per cent of the vote and 158 seats in the 300-member parliament. Syriza, the leftwing party of Alexis Tsipras, took 31.5 per cent and gained 86 seats, according to near-final results.

Mr Mitsotakis was expected to announce his cabinet later on Monday. The US-educated McKinsey alumnus and son of a former Greek prime minister said he was cancelling parliament’s normal summer recess in order to begin legislating key reforms, including tax cuts, measures to reduce red tape and attract investment, and a scheme to reorganise the prime minister’s office.

The election result was a heavy blow for Mr Tsipras, the one-time radical firebrand who abruptly reversed his policy stance and adopted a harsh austerity programme in return for an €86bn bailout after Greece came close to crashing out of the eurozone in 2015.

While the economy stabilised under the Syriza government, structural reforms lagged and growth targets were missed after the finance ministry raised taxes and slashed public spending to achieve the annual primary budget surplus agreed

Kyriakos Mitsotakis sworn in as Greece’s new prime minister Centre-right restored to power with sweeping snap election victory

with Greece’s bailout creditors.

Mr Tsipras gambled by calling a snap election to rally leftwing support after Syriza finished 9 percentage points behind New Democracy at the European Parliament elections in May. But voters dismissed the prime minister’s warnings during the campaign that a conservative government would slash wages and social benefits, and sell state-owned assets at low prices to foreign investors.

Greeks have also been angered by the way that high tax rates have eroded middle-class incomes while unemployment is stuck at about 18 per cent, the highest in the eurozone.

While yields on Greek bonds have fallen dramatically in the past few months, the economy is growing more slowly than forecast and investors remain wary.

On Monday morning, the yield on benchmark 10-year debt touch a new record low, down by as many as 14 basis points to 2.014 per cent.

The Athens General stock index was 1.6 per cent lower on Monday, led by declines in the financial sector, following a strong rally in the run-up to the poll.

Greece is still under close sur-

Kyriakos Mitsotakis, centre, is congratulated by president Prokopis Pavlopoulos, left, after being sworn in as Greek prime minister © AFP

veillance by the bailout creditors, with a backlog of structural reforms yet to be carried out. Bailout monitors from the EU and IMF are scheduled to arrive in Athens in the next few days to review progress amid concerns that a €1.4bn package of handouts by the Syriza government before the European

elections would derail this year’s budget targets.

Yanis Varoufakis, the maverick finance minister during Syriza’s early months in government in 2015, returns to national politics as leader of Mera25, the Greek arm of his European anti-establishment movement Diem25. The new party

won 3.4 per cent of the votes and nine seats.

Golden Dawn, the neo-Nazi party backed by many impoverished rightwingers at the height of the Greek crisis, was excluded from parliament after narrowly failing to reach the 3 per cent of the vote threshold for entering parliament.

Nexon shelves $15bn auction after Deutsche Bank starts cull of 18,000 jobs German lender begins its most radical strategic overhaul in two decades struggle to find buyer Tokyo-listed games group may restart process later, according to analysts OLAF STORBECK, STEPHEN MORRIS, LEO LEWIS SONG JUNG-A

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he high-profile sale of South Korean gaming group Nexon has been shelved after months of struggle to find a buyer, according to people familiar with the deal.

Nexon’s billionaire founder Kim Jung-ju cited “market circumstances” for not selecting a preferred bidder, they said, after three domestic bidders — gaming companies Kakao, Netmarble and private equity firm MBK Partners — reportedly vied for a company whose price tag was set as high as $15bn.

“Nexon said it would reconsider the sale later but did not give a specific reason for shelving the deal,” said one person with knowledge of the matter.

Nexon declined to comment on Monday.

Tokyo-listed Nexon was put up for sale by Mr Kim, after allegations against him of corruption. Mr Kim, together with his wife, owns 98.6 per cent of Nexon’s holding company NXC Corp. NXC holds 48 per cent of Nexon along with a medley of smaller assets.

But the sale process surround-

ing what could have been one of Asia’s biggest deals this year had been fraught with delays and a changing line-up of bidders after a lack of interest from foreign buyers.

Mr Kim was unable to agree on a price, analysts said. “The price tag was too high for domestic strategic buyers,” said Choi Kwan-soon at SK Securities. “Potential buyers were deterred by the high price tag, mindful of a lack of recent popular games.”

Nexon, the publisher of “hacking and slashing” game Dungeon Fighter Online, is one of the biggest revenue-generating videogaming companies in the world.

Its net profit jumped 90 per cent to ¥107.7bn ($990m) last year on sales of ¥253.7bn. But analysts remained sceptical over its growth prospects after a recent drought of hit games.

About half of Nexon’s sales come from China, where the PC version of Dungeon Fighter is distributed by Tencent. But the Chinese technology giant, which pays about Won1tn in annual royalties to Nexon, did not join the second round of bidding in May, according to people familiar with the deal. www.businessday.ng

AND STEFANIA PALMA

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he culling of 18,000 jobs at Deutsche Bank has started only hours after the lender unveiled its most radical strategic overhaul in two decades, with whole teams of equity traders in Europe, the US and Asia being dismissed on Monday morning.

Drawing a line under a 20-year attempt to break into the top ranks of Wall Street, chief executive Christian Sewing on Sunday unveiled plans to shut Deutsche’s lossmaking equities trading business and shrink its bond and rates trading operations significantly. Shares in Deutsche were down 4.5 per cent at €6.85 on Monday.

Mr Sewing told journalists on a call on Monday morning that the job cuts “have been the most difficult and painful part of our decision making” as “people and their fates are very important to us”, adding that the bank needs to be honest with itself and “say where we are strong and where we are not”.

One Deutsche employee in London said: “This is really sad what is going on right now in the bank, but I guess from top management’s point of view that is what is needed to be done.”

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Staff losing their jobs in London were given “notification risk” notices, offered a consultation session with human resources and then given the day off, according to one person familiar with the matter.

One banker, who said he was a manager in Deutsche’s equities department in London, said he had been called into a meeting room, dismissed and told to clear his desk and leave. “It’s quite strange because the stuff I was working on still impacts the portfolio so I don’t know what they’re going to do with it,” he added as he departed Deutsche’s UK headquarters carrying a box with personal effects.

Eight hours after the regulatory filing was published in Germany, senior managers in Tokyo started informing staff in a brief meeting that the equities trading operation across Asia would be shut. The bank’s human resources team started group sessions with affected employees immediately afterwards.

Deutsche Bank did not disclose a regional breakdown of the job cuts.

But as the investment bank’s trading operations will be hardest hit, the lender’s offices in London and New York will bear the brunt.

When asked about the atmosphere in the office on Monday morning, a Singapore-based em-

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ployee whose team had not been hit by the cuts said: “The mood is always depressed in Deutsche. People know the bank is not doing well . . . It’s not like a party.”

The cuts to Deutsche’s investment bank are one of the most drastic round of job losses since 26,000 employees found themselves out of work when Lehman failed in September 2008.

Germany’s powerful service sector union Verdi, which has several representatives on Deutsche’s supervisory board, has welcomed the cuts to the investment bank, arguing it will stabilise the lender and German jobs, where 41,600 of its 91,500 global employees work.

Employment laws are rigid in Deutsche’s home market, and unions are powerful. Deutsche has committed not to fire German retail employees against their will until mid-2021.

Since late 2017, it has cut about 2,000 jobs a year using natural attrition and voluntary redundancies.

“For the time being, we cannot put a number to the consequences for infrastructure units based in Germany,” said Verdi boss and Deutsche supervisory board member Frank Bsirske. He added that the union expected that Deutsche would continue to refrain from forced redundancies in Germany.

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Tuesday 09 July 2019

BUSINESS DAY

NATIONAL NEWS

FT Banks steer clear of Facebook’s Libra project

Traditional lenders are working on their own faster, cheaper payments projects

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S and European banks are steering clear of Libra, Facebook’s project for a new cryptocurrency, for fear of antagonising regulators and cannibalising their own digital currency projects In the two weeks since Facebook announced its plans for a new digital currency, there has been silence from the banks about a project that threatens to break down their role as gatekeepers of the global financial system.

“We’re still learning what it is and trying to work out where we stand on it; are we an opponent, partner or do we ignore?,” said a person familiar with the approach to the project of one of the world’s biggest banks.

Up and down Wall Street, the City of London and Europe’s financial centres, senior industry executives reel off a litany of hurdles to participation, while some also criticise the way Facebook has approached the project so far.

No banks were on the initial list of 27 other partners for the Libra Association, which will oversee the currency, though David Marcus, who is leading the project at Facebook, said he wanted to “absolutely and strongly deny the fact that we’ve approached banks and banks have said no”.

“We have had conversations with banks. We still have conversations with banks. And my expectation is that by the time this thing launches next year you will have banks that are going to be members of this,” he told the Information.

Chart showing that many lower income countries have large proportions of adults without bank accounts - but most have mobile phones Senior executives at banks, however, tell a different story. At least one bank, the Netherland’s ING, responded to Facebook’s initial contact with a polite “no thank you”.

Several other senior executives said there would be big hurdles for their future involvement, either as active members of the Libra Association or by helping people to convert traditional money in and out of Libra coins.

Mike Corbat, head of Citigroup, recently said that even though he was a “true believer” in cryptocurrencies and their underlying blockchain technology, Citi’s capacity to participate is constrained, “The challenge with cryptocurrencies is the opaqueness as to the sources of the money,” he said, referencing anti-money-laundering standards banks are held to. “It would be outside our ability to take or send those monies on behalf [of people who hold them].”

Meanwhile, several banks are pushing ahead with projects to speed up payments, which some said would overtake the Libra initiative.

Mastercard, which is part of the Libra project, is working with six Nordic banks to build a payments system that would allow realtime transfers, and be used across multiple currencies in multiple countries.

Paul Stoddart, Mastercard’s

president of new payment platforms, said he expected to see “more initiatives like this around the world where there are groups of countries or regions that are economically more tightly integrated”.

In the US, The Clearing House, a payments company backed by a coalition of 25 large banks including JPMorgan Chase, Bank of America and Citigroup, offers domestic real-time payments on a network, launched in 2017, that already connects half of the country’s deposit accounts.

And on June, 13 of the world’s biggest banks including UBS, Lloyds Banking Group and MUFG, announced plans to launch their own digital coin for use in wholesale banking.

A senior executive at one of the banks involved said: “Facebook is right that cross-border payments are clunky and convoluted and you have to go through far too many counterparties, but banks are getting involved and will solve this problem and solve it pretty quickly.”

The banks expect that the first institutional transaction with the “universal settlement coin” will take place within a year, and could be a cross-border trade.

Meanwhile, the head of innovation at another US bank said the industry needed to understand a lot more, including the purpose of the Libra coin, the regulatory environment and the system’s technical underpinning before they could commit to the project.

“We will be talking to them [Libra] very soon,” he said. “There’s a huge amount of scepticism but there’s some enormous names who have put up $10m a pop; there’s enough names of enough reputable organisations that have put up $10m to be a part of it to say there’s something there.”

A senior executive at a third large US bank said he did not believe banks would have to lobby very hard to ensure that Libra attracts the same know-your-customer and anti-money-laundering scrutiny as traditional payments networks, which will heap costs on the project.

“If this thing has the scale of 2bn people who can move money around outside of the financial system (without AML/KYC), it makes a mockery of the system,” he said.

“We won’t have to persuade them in Washington . . . regulators are at it, they’ll make them lift to the same standards as everyone else.”

The executive added that Facebook, which recently hired a prominent lobbyist from Standard Chartered, had already mishandled the regulatory piece by announcing their plans without having first brought regulators onside.

When JPMorgan Chase drew up plans for a much more limited digital coin, they had extensive conversations with regulators before going public, asking them for informal guidance on what would be acceptable to them, a person close to that process said. www.businessday.ng

Ivorian schoolchildren attend a class in a village in the southeastern Rubino district © AFP

School denied to 250m children by 2030 unless aid rises six-fold Unesco figures highlight slow progress towards UN’s Sustainable Development Goals ANDREW JACK

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quarter of a billion children will not be in school in 2030 and many of those studying will receive a poor education unless there is a six-fold increase in aid, according to new estimates released by Unesco.

The proportion of children and adolescents aged six to17 who are not in school globally will fall only slightly on current trends, from 18 per cent (265m) to 14 per cent (225m), it said. A large share of those who are studying will not achieve minimum proficiency in reading while standards in francophone Africa are projected to continue to decline.

The figures reveal the slow progress being made towards the UN’s Sustainable Development Goals. They have been shared with ministers of the G7 group of leading industrial countries at talks with Unesco in Paris in efforts to boost their investments ahead of a planned education summit in Biarritz at the end of August.

Audrey Azoulay, director-general of Unesco, told the Financial

Times: “We have to put education at the heart of development. We have to reinforce the level of investment — not only the quantity but also the quality of learning.”

The analysis highlighted that, of $4.7tn spent each year on education worldwide, $3tn, or 65 per cent, is spent in high-income countries. Just $22bn or 0.5 per cent is spent on the similar number of school children living in low-income countries.

Chart showing how fewer teachers in Sub-Saharan Africa at primary and secondary level have received minimum training Globally, $39bn a year was needed in low and lower middle income countries required to achieve universal education. Aid, which has been stagnant since the start of this decade, needed to increase by a factor of six, according to the analysis.

While most countries are making progress in increasing the proportion of students in school, it said there was far less consistency in improving results, with many pupils struggling to achieve basic literacy and numeracy skills.

Unesco said that an additional 60m teachers needed to be recruited worldwide. In sub-Saharan Africa, the share of teachers with the minimum required training had fallen since the start of the millennium to just two-thirds of those in primary schools and half of those in the secondary sector.

Unesco has joined forces with the World Bank to develop a series of measures designed to assess learning, as well as track progress in tackling bureaucratic obstacles and policy barriers to improving education. It has also launched an international commission on education that will report in 18 months.

In low-income countries, just over half of upper secondary schools have electricity and basic drinking water, while only 37 per cent have access to the internet.

A separate Unesco analysis released last week showed sharp discrepancies in girls’ access to education. It argued that the absence of toilets and the dominance of men among headteachers were among the factors that limited higher participation rates among girls in schools.

Heather Mills claims ‘highest’ libel settlement over phone hacking Philanthropist and 90 other claimants settle legal proceedings with Murdoch-owned News Group PATRICIA NILSSON

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eather Mills, the philanthropist and former wife of musician Paul McCartney, said she and 90 other claimants have been awarded the “highest media libel settlement” in UK history, ending a neardecade long battle with Rupert Murdoch-owned News Group over claims of phone hacking and invasion of privacy.

“We have been awarded the highest media libel settlement in British legal history, and with it, a complete and unmitigated

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apology for the criminal, targeted smear campaign waged against us by News Group Newspapers — including hacking, invasion of privacy, and the publication of countless falsehoods and lies between 1999 and 2010,” Ms Mills said outside the High Court on Monday.

The exact sum of the settlement was not disclosed.

Ms Mills said the settlement signalled “the end for now” of all legal proceedings between herself and the News Group newspapers, including the Sun and the now defunct News of the World “unless @Businessdayng

anything else pops up”.

News Group told the court it agreed to publicly apologise and pay a “substantial amount in compensation for the distress the claimants have suffered”.

News Corp spent $35m in the year ending June 2018 on cases related to the phone-hacking scandal, which led to the closure of the News of the World and a wider inquiry into the news gathering practices of papers. Excluding today’s settlement, the company had spent $656m on legal costs relating to phone-hacking practices since 2010.

Tuesday 09 July 2019

BUSINESS DAY

39

FINANCIAL TIMES

COMPANIES & MARKETS

@ FINANCIAL TIMES LIMITED

London Underground to track passengers using WiFi Data will create detailed pictures of how commuters use transport network MARTIN COULTER

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assengers travelling through London Underground’s network will be tracked on their journeys through the WiFi beacons on their smartphones, Transport for London said on Monday.

Following a trial of the system in 2016, TfL said it would use the tracking data to understand how commuters move through the network and to send targeted information about avoiding congestion.

The data are collected as smartphones pass the WiFi transmitters at each station, allowing TfL to build a detailed picture of which combination of Tube lines are used for journeys, which platforms are busiest and at what time, and how people flow through the public spaces of the stations. Previously, TfL only had data from Oyster or other payment cards on where passengers entered and left the network.

The data may also yield commercial benefits for TfL, which is under severe budgetary pressure, allowing it to price advertising based on where it sees the heaviest footfall.

Lauren Sagar, TfL’s chief data officer, said she was “mindful of the responsibility” that comes with the new tracking ability. “Transparency, privacy and ethics need to be at the forefront of data work in society and we recognise the trust that our customers place in us,” she said.

Technology experts raised concerns about whether the data can

be properly anonymised or kept confidential.

Lukasz Olejnik, a research associate at Oxford university’s centre for technology and global affairs, said: “In a system like this, the overall technical settings are of crucial importance. The database will contain a lot of records about individuals. Securing it is, therefore, of paramount importance.”

It is also unclear if the data collected by TfL could be subject to General Data Protection Regulation access requests. Such requests allow individuals to demand organisations hand over any data held on them within 30 days.

Ms Sagar said TfL had “pored over” guidance provided by the Information Commissioner’s Office to ensure the system met the highest data protection standards. She added that the data collected would not be subject to GDPR access requests because there was no way of directly identifying an individual from their phone signal.

TfL said it would put up signs telling passengers that they can opt out of having their data collected by turning off their WiFi — but they will not be able to access the internet on parts of the network without mobile phone reception.

The organisation has been facing financial difficulty since the UK government started withdrawing its operating grant, which stood at £1.1bn in 2013-14 and has now disappeared entirely. A freeze on fares instituted

by London mayor Sadiq Khan and falling passenger numbers have also contributed to TfL’s troubles.

Wall Street falls as tech weighs, investors await Powell testimony MAMTA BADKAR, MICHAEL HUNTER AND DANIEL SHANE

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all Street tracked European and Asian stocks lower and the dollar circled a three-week high on Monday as investors assessed the odds of a rate cut in a week chock full of Federal Reserve commentary, including congressional testimony due from its chairman.

The S&P 500 slid for the second consecutive day, falling further from record highs notched last week. It shed 0.5 per cent to 2,974.62, led by declines in tech and healthcare that fell 1.1 and 1 per cent, respectively. Meanwhile the Nasdaq Composite was down 0.9 per cent.

The yield on 10-year US Treasuries moved back down towards the 2 per cent mark, by 2.6 basis points to 2.018 per cent, as the lingering sense of caution drew investors back into the debt. The dollar index ticked up 0.1 per cent to 97.315, around its highest since mid-April.

All eyes are on a line-up of Fed speakers, most notably Jay Powell who will testify on Capitol Hill on Wednesday and Thursday, in the wake of a string of soft data that have raised concerns about the health of the US economy amid Washington’s multi-fronted trade war. His

remarks in a recent speech in which he noted “an ounce of prevention is worth more than a pound of cure” drummed up market expectations of a rate cut, and investors will watch to see if he walks back those remarks or continues to tilt dovish.

While a rate cut at this month’s policy meeting is expected, hopes for one of 50 basis points appear misplaced after a significantly stronger-than-expected jobs report on Friday, that looked to give the US central bank more room to loosen monetary policy.

The cautious trading pattern also comes ahead of minutes from the Fed’s most recent monetary policy meeting that are due Wednesday.

European stocks failed to hold morning gains and faded back in afternoon trade, after a brisker run lower for Asian indices. Frankfurt’s Xetra Dax 30 slipped 0.3 per cent, with the Europe-wide Stoxx 600 down 0.2 per cent. London’s FTSE 100 fell 0.1 per cent.

There were brisker moves for equities in Asia, with investors in China adjusting their position ahead of an expected flurry of initial public offerings on the country’s new science and technology board, according to analysts. On the mainland, the CSI 300 was down 2.3 per cent, while Hong Kong Hang’s Seng index fell 1.5 per cent. www.businessday.ng

Transport for London said it would use the tracking data to understand how commuters move through the network and to send targeted information about avoiding congestion © EPA

Julius Baer appoints Philipp Rickenbacher as chief executive Swiss private bank promotes head of intermediaries and global custody, sending shares down DAVID CROW AND DANIEL SHANE

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ulius Baer has appointed a relatively unknown internal candidate as its new chief executive in a move that prompted a sell-off of the Swiss private bank’s shares.

The bank said it had handed the job toPhilippRickenbacherfollowingwhat it described as a “careful” evaluation of internal and external candidates.

Shares in the group responded negatively to the news and were trading 3.8 per cent lower by midafternoon in Zurich.

One person involved in Mr Rickenbacher’s appointment described the share price reaction as “completely normal”, adding: “If you have chosen a person who is not well known in public, there is always a bit of a doubt about who the guy is and what his credentials are.”

Analysts at Vontobel, the Swiss investment bank, said the appointment of Mr Rickenbacher “might come to the surprise of some investors” but noted that Julius Baer had opted to recruit chief executives from within its own ranks in the past.

Julius Baer declined to say whether it had considered appointing Iqbal Khan, who resigned as head of wealth management at

Credit Suisse last week following a power-struggle at the bank.

Mr Khan did hold talks with Julius Baer about becoming its chief executive, according to several people familiar with the discussions, and speculation that he was planning to join increased after he left Credit Suisse without announcing his next move.

Zurich-based Julius Baer said in a statement on Monday morning that Mr Rickenbacher, its head of intermediaries and global custody, would take over from Bernard Hodler on September 1.

Mr Hodler, who is retiring, had been chief executive since late 2017 when he replaced Boris Collardi, who moved to Swiss rival Pictet in a high-profile defection that rocked the industry.

Julius Baer, which manages SFr427bn of assets on behalf of clients, said at the time that Mr Hodler’s appointment was temporary until a long-term successor to Mr Collardi could be found.

Mr Rickenbacher, 48, has previously run Julius Baer’s advisory solutions business and has been with the company since 2004 when he joined from McKinsey.

The Swiss private bank’s move to

appoint Mr Rickenbacher was part of “long-term succession planning,” it said.

“For this appointment, the board of directors has carefully evaluated internal and external candidates,” said Romeo Lacher, Julius Baer’s chairman, in the statement.

“We are delighted that, with Philipp Rickenbacher, we have been able to appoint an internal candidate with a compelling leadership and industry track record, deeply familiar with Julius Baer’s culture and business, but prepared to actively address the challenges of the future.”

The person involved in Mr Rickenbacher’s appointment said he would continue the strategy adopted by Messrs Hodler and Collardi, which has seen the bank expand rapidly by hiring relationship managers from rivals.

“We want further growth and will continue to hire relationship managers from the market,” the person said.

The bank also still intends to complete the disposal of Italian asset manager Kairos, they added.

Mediobanca, the Italian bank, said in April that it was considering buying the business.

A glimpse into the responsible investor mindset THOMAS HALE

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ustainable finance is an approach to investing that aims to achieve non-financial goals, like protecting the environment or eliminating social injustices, as well as providing a return.

As with charity or government spending, proponents argue that the effects are widely dispersed, and so the long-term benefits accrue to everyone, rather than simply the individual making the investment.

At the same time, the marketing of sustainable finance is now rife with the claim that it leads to higher financial returns than you’d get elsewhere, which sounds a lot less like charity. Here are some examples.

A study published this year provides some evidence of the motivations driving people towards “responsible investments” (h/t to Patrick Jahnke), which explains why marketing is evolving in this

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direction.

Academics at the NHH Norwegian School of Economics used Skandiabanken, a Norwegian online bank (now called Sbanken), to test investor behaviour. They sent an email newsletter with information about responsible investment funds that either emphasised the financial returns on offer, or emphasised the “opportunity to contribute to a just or sustainable society”.

The results showed that people with higher wealth were more responsive to financial arguments than moral ones. Prioritising returns is on the one hand what you’d expect from investors in general; at the same time, it’s not what you’d expect if participation in sustainable finance were driven by a charitable impulse.

The paper emphasises the difference between wealthy and non-wealthy respondents. But at no level did moral arguments prove @Businessdayng

significantly more persuasive than financial ones (it’s simply that there was no statistically significant effects at lower levels of wealth).

From the paper: Wealthy investors who are subject to financial rather than moral arguments click 29% more frequently for more information, while the difference is not significant for less wealthy investors. Furthermore, wealthy investors who are subject to financial rather than moral arguments invest in green funds 18% more frequently. Again, the difference is not significant for less wealthy investors.

So, it’s no surprise that banks and asset managers emphasise financial benefits. As the paper says: …when marketing RI products, banks that target wealthier investors would be wise to emphasise the financially beneficial aspects of such products rather than their socially and environmentally relevant characteristics.

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Tuesday 09 July 2019

BUSINESS DAY

ANALYSIS

FT Frequent flyer: how to stop drunk passengers behaving badly

An alcohol ban may sound draconian, but people once felt the same about smoking MICHAEL SKAPINKER

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n almost five decades of flying I have never seen a disruptive passenger, an out-of-control drunk or even heard an angry voice. It seems I have been lucky.

A survey by Which? Travel, the UK consumer magazine, found that 17 per cent of Ryanair passengers had witnessed shouting, drunkenness or verbal abuse by other passengers over the previous year.

Eight per cent had seen the same on Emirates and Virgin Atlantic flights. Questioned by Unite, the trade union, 87 per cent of cabin crew on UK-based airlines said they had seen drunk passengers behaving badly.

Is this primarily a British problem? The International Air Transport Association says the number of disruptive passenger incidents worldwide has risen sharply. But in 2017, the last year for which it provides figures, there was only one disruptive incident for every 1,053 flights and, of those, 86 per cent were verbal outbursts that “can usually be brought to a successful conclusion by crew using de-escalation training”.

The remainder were serious, involving physical aggression, damage to the aircraft or, in rare cases, attempts to enter the cockpit.

However rare or frequent, dis-

ruption in the air is frightening. Airline staff should not have to put up with it. Alcohol lies behind much of the trouble. Iata said it was a factor in 27 per cent of incidents and UK reports refer to it frequently.

What can be done? While the airlines complain about drunk passengers, they serve alcohol freely on some flights and profit from onboard drinks sales on others. The carriers respond that many passengers start drinking before they fly.

A survey by Alcohol Change UK found that one in five British holidaymakers started drinking at the airport. Sellers of drink airside in England are not subject to the licensing constraints that affect other pubs, such as restrictions on discounts and an obligation to enforce an age verification policy and seek local government approval for their opening hours.

According to a Home Office document, the laissez-faire attitude to airport drinking came from a sense of national embarrassment.

In 1956, Harold Watkinson, the then-aviation minister, said foreign passengers travelling through UK airports found pub opening times bewildering “and one may forgive them if they do not always understand why it is that they cannot always obtain a drink”. So airside outlets were told they could do pretty much what they wished.

China sportswear maker Anta tumbles on short seller report Muddy Waters alleges fraudulent activity at group that led takeover of Finland’s Amer Sports TOM HANCOCK

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hares in Anta, China’s largest sportswear brand by sales, fell more than 7 per cent after a US short seller alleged fraudulent activity at the company, which earlier this year completed a €5.6bn takeover of Finland’s Amer Sports.

Hong Kong-listed shares in the Chinese company were down 7.3 per cent before it suspended trading in its stock, after short-seller Muddy Waters published a report saying Anta has secretly controlled distributors to fraudulently boost its profit margins.

In March, Anta led a €5.6bn acquisition of Finland’s Amer Sports, the maker of Wilson tennis rackets and Louisville Slugger baseball bats, highlighting its ambitions to expand beyond China where the company derives almost all its revenue.

Despite Monday’s decline, Anta’s shares are up nearly 37 per cent this year, buoyed by a record net profit of Rmb4.1bn (then $613m) for 2018. The company’s profit margin of about 17 per cent is more than twice that of industry peers such as Nike and Adidas.

Analysts say that sportswear companies tend to be more profitable in China than in markets such as the US and Europe because retail wage costs are lower, and as logistics costs can be reduced because production is local.

But Muddy Waters, a US-based firm that has accused a string of Chinese companies of fraudulent accounting over the past decade,

says that Anta’s distributors are controlled by the company, allowing it to artificially inflate profits.

“Anta is a real business, and in terms of operations and marketing, there’s much to be admired,” the report said. “The purpose of controlling the distributors, we believe, is to fraudulently inflate Anta’s reported revenues and/or decrease its reported expenses.”

Anta said it would comment on the report later on Monday.

Muddy Waters has had a mixed record of success with its criticism of Chinese companies. Its 2011 report into Canada-listed company Sino Forest led to the delisting of the Chinese forestry group. Other companies it has targeted have been relatively unscathed.

Anta has been a popular target for short sellers. Texas-based Blue Orca earlier this year accused the company of falsifying data. Last year, Hong Kong-based GMT Research accused Anta of improper accounting. The company denied both accusations.

Anta is one of several sportswear companies dubbed the “Fujian Tigers” that emerged in the 1980s in south-eastern China.

After making products for the likes of Nike and Adidas, it shifted to own-brand goods and eventually began moving into the higher-end market with its acquisition of the Chinese rights for Italian brand Fila in 2009.

Anta secured a 58 per cent stake in Finland’s Amer this year as part of a consortium including Chip Wilson, the Canadian businessman behind Lululemon, and Chinese technology group Tencent. www.businessday.ng

Renault-Nissan: how long can the fractured alliance last?

A break-up would reverberate across an already struggling industry LEO LEWIS, PETER CAMPBELL AND DAVID KEOHANE

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arlos Ghosn marked the 10th anniversary of the Renault-Nissan alliance in 2009 by shrugging off the global recession and issuing a self-confident statement listing 10 big achievements of the preeminent symbol of Franco-Japanese co-operation. In March, as the alliance crawled past its 20th anniversary, no one at Renault or Nissan even bothered emailing employees to note the milestone.

Staff and investors in both companies now openly question whether there will be a 21st anniversary to celebrate.

The contrast between how the two anniversaries were marked, say analysts, advisers and people senior in both companies, perfectly captures the crisis-hit state of the post-Ghosn alliance.

Several shared functions, in particular communications and the chief executive’s office — that most symbolised Mr Ghosn’s grip over his empire — have been closed altogether. In one case, about a dozen office staff who had continued to come to work at the alliance’s Paris headquarters for five months after Mr Ghosn’s public downfall and arrest discovered their fate when Renault staff turned up unannounced to measure the office for its new occupants.

Activity in other functions — including manufacturing and quality control — has slowed to walking pace, say people close to both companies. And goodwill is in short supply. As CLSA auto analyst Christopher Richter puts it, “the alliance in mid-2019 is in name only”.

That may overstate how easy it would be to break up. For 20 years the alliance was the banner under which two of the biggest car companies in the world operated — often successfully and often to the envy of the industry. The steady decline in both Renault and Nissan’s share prices since Mr Ghosn’s arrest, say investors, attest to his reputation, but also raise the question of whether the tie-up was a genuine powerhouse or an unrepeatable expression of the skill, showmanship and chutzpah of Mr Ghosn.

It is not the only question being asked. Some query whether it was always an uncomfortable pairing that strained cultural differences to their limit, one that has now reverted to a natural state of mistrust? And after several failed merger attempts

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between the French and Japanese carmakers and the chaotic breakdown of talks between Renault and Fiat Chrysler in June, can the survival of the alliance still be guaranteed?

The impact of a collapse would reverberate across the automotive industry — firstly as two of the largest carmakers absorb the initial losses that come with the break-up, and then the massive upheaval in investment and strategy required to face the world separately.

That would inevitably trigger, say analysts, a global readjustment as both Nissan and Renault either pursue deals of their own, or receive approaches from suitors that have until now steered clear. Looming over all of this, however, would be the devastating symbolism of a collapse — the ripping-up of a blueprint that has for 20 years proved that companies can achieve scale and collaboration without embarking on a full merger.

The signs, say analysts and investors, are not promising.

Until his arrest last November on charges of financial misconduct, say people who dealt directly with him, Mr Ghosn was able to charm and bully his way round the governance carbuncle at the heart of the alliance — a capital imbalance that gives Renault, as the company that rescued Nissan from bankruptcy in 1999, a 43 per cent voting stake in the Japanese carmaker. Mr Ghosn denies the charges.

Nissan, meanwhile, has only a 15 per cent non-voting stake in Renault, whose largest shareholder is the French state. The imbalance used to be Mr Ghosn’s problem but, since his arrest, it has become everyone’s problem, and many people are realising how big an obstacle to future success it could be.

The long-term outlook for the alliance, says Nobumichi Hattori, a former Nissan employee, is very negative. Neither JeanDominique Senard, the chairman of Renault, nor Nissan’s chief executive Hiroto Saikawa look able to provide the management Mr Ghosn brought to bear.

“To put it extremely,” says Mr Hattori, now at Waseda university, “it would have been better for the alliance if it had kept Ghosn — even if that meant sacrificing ¥1bn a year in [any alleged] embezzlement.”

Either way the alliance has picked a dreadful moment for its existential crisis. The global auto industry faces its sternest test in @Businessdayng

decades.

While sales tumble in most large markets, carmakers are being forced to invest in costly technologies such as electric battery power to meet ever-tighter emissions regulations, squeezing their already-thin margins. US President Donald Trump’s trade wars with Europe and China and other disruptive events such as Brexit are not helping, playing havoc with the global supply chains built up over years.

On its own doorstep, Nissan can see what it is up against. In June, Toyota revealed plans to throw itself into electric vehicles in alliance with Subaru and Suzuki. Mazda, say some analysts, is likely to join imminently. If that co-operation holds, which Toyota is primed to ensure, it would already be bigger than the Nissan-Renault-Mitsubishi alliance in terms of cars sold.

W h i l e re c o g n i s i n g t h e s e threats, both companies insist that everything is working as normal. At Nissan’s annual general meeting in June, the carmakers were keen to show they had made peace and stood ready to rebuild.

However, senior executives in both camps admit there have been fundamental shifts in recent months that may undermine efforts to repair relations.

Nissan’s leadership, say people close to the situation, is increasingly guided by a revitalised sense of the company’s Japanese heritage and by a belief that after years of depending on Mr Ghosn to protect it from French dominance, Nissan must now seek a more structural independence from its French partner.

Renault bosses, meanwhile, remain wedded to the alliance, blaming much of the current problems on a small number of more nationalist voices surrounding Mr Saikawa. It is appeasing this vocal group, say analysts, that prompted Mr Saikawa to assure shareholders that any attempt by Renault to increase its influence over Nissan “will never happen”.

The threat to the alliance, say company insiders, has crystallised questions that have lain in the background for years about its true financial value.

Every year, it produces a “synergy” number, which measures direct savings and avoided costs, intended to show the material benefits to the three alliance partners. Under Mr Ghosn that number rose every year without fail, painting a picture of increasing success. In 2017, the figure was €5.7bn.

Tuesday 09 July 2019

BUSINESS DAY

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41

42

Tuesday 09 July 2019

BUSINESS DAY

NEWS

Court restrains SEC from enforcing N89m fine against Oando

STEPHEN ONYEKWELU

T

h e Fe d e r a l Hi g h Court in Lagos has restrained the Securities and Exchange Commission (SEC) from enforcing a fine of N89,675,000 against Oando plc.

The court has also restrained the Commission from enforcing its decision to appoint an interim management team for Oando.

Justice Ayokunle Faji granted Oando’s application for leave to file a motion for a judicial review of SEC’s decision imposing the fine on it, the Nigerian Lawyers, a Twitter handle that discusses legal matters tweeted 4:54pm local time on Monday.

The judge made the order on Friday, a copy of which was obtained on Monday. It followed an ex-parte motion filed by Oando through its counsel, Olasupo Shasore.

SEC’s acting directorgeneral, Mary Uduk, and Mutiu Sunmonu, who was appointed as Oando’s interim head, are the first to third respondents.

Justice Faji granted “an order of certiorari bringing up to the Federal High Court for the purpose of be-

ing quashed, the decision of the first respondent (SEC) contained in its letter dated 31st May 2019”.

An order of certiorari is a writ or order by which a higher court reviews a case tried in a lower court or administrative agency.

The court also granted an order of certiorari for the quashing of SEC’s directive to Oando to convene an extraordinary general meeting on or before July 1 to appoint new directors and articulate remedial measures for alleged corporate governance lapses.

Justice Faji further granted an order certiorari for the quashing of a press release by SEC on June 1 appointing an interim management team to be headed by Sunmonu (the third respondent) to oversee Oando’s affairs.

The judge granted “an order of prohibition and/ or an injunction restraining and preventing the first and second respondents by themselves, agents, servants or whomsoever, howsoever from enforcing or seeking to enforce the decision contained in the letter dated 31 May 2019.”

He gave “an order of prohibition and/or an injunction

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restraining and preventing the second respondent (SEC) from enforcing or seeking to enforce the decision of the first respondent contained in the press release made on Sunday, 2 June 2019 appointing an interim management team to be headed by the third respondent to oversee the affairs of the applicant.”

The court made “a declaration that the first and second respondents acted ultra vires and without jurisdiction in making the decision contained in the letter of 31 May 2019 which conveyed the imposition of a fine of N89,675,000 on the applicant.”

Also granted was “an order directing that the leave sought herein if granted, shall operate as a suspension and or stay of the decision of the first respondent contained aforesaid in its letter of 31 May 2019 as it relates to the applicant and as contained in the press release made on 2 June 2019 appointing an interim management team to be headed by the third respondent.”

The judge directed Oando to ensure service on the respondents of the order and the application for judicial review within 48hours.

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Tuesday 09 July 2019

BUSINESS DAY

43

Live @ The STOCK Exchanges Prices for Securities Traded as of Monday 08 July 2019 Company

Market cap(nm)

Price (N)

Change

Trades

Volume

Company

Market cap(nm)

Price (N)

Change

Trades

Volume

PRICES FOR MAIN BOARD SECURITIES (Equities) BANKING ACCESS BANK PLC. 239,930.27 6.75 0.75 161 13,001,612 UNITED BANK FOR AFRICA PLC 208,616.47 6.10 0.83 219 13,514,466 ZENITH BANK PLC 602,812.68 19.20 -0.78 324 14,707,083 704 41,223,161 OTHER FINANCIAL INSTITUTIONS FBN HOLDINGS PLC 227,935.11 6.35 2.42 197 16,206,280 197 16,206,280 901 57,429,441 TELECOMMUNICATIONS SERVICES MTN NIGERIA COMMUNICATIONS PLC 2,634,891.71 129.45 0.35 126 8,586,674 126 8,586,674 126 8,586,674 BUILDING MATERIALS DANGOTE CEMENT PLC 3,016,169.81 177.00 -0.28 71 211,646 LAFARGE AFRICA PLC. 220,676.80 13.70 0.36 136 2,933,690 207 3,145,336 207 3,145,336 EXPLORATION AND PRODUCTION SEPLAT PETROLEUM DEVELOPMENT COMPANY PLC 311,875.62 530.00 - 6 500 6 500 6 500 1,240 69,161,951 REAL ESTATE INVESTMENT TRUSTS (REITS) SKYE SHELTER FUND PLC 1,710.00 85.50 - 0 0 UNION HOMES REAL ESTATE INVESTMENT TRUST (REIT) 10,175.81 40.70 - 0 0 UPDC REAL ESTATE INVESTMENT TRUST 14,408.66 5.40 - 0 0 0 0 0 0 OTHER FINANCIAL INSTITUTIONS NIGERIA ENERYGY SECTOR FUND 411.91 552.20 - 0 0 VALUEALLIANCE VALUE FUND 3,312.39 103.20 - 0 0 0 0 0 0 0 0 CROP PRODUCTION FTN COCOA PROCESSORS PLC 440.00 0.20 - 0 0 OKOMU OIL PALM PLC. 59,142.42 62.00 - 12 8,809 PRESCO PLC 44,800.00 44.80 - 18 39,213 30 48,022 FISHING/HUNTING/TRAPPING ELLAH LAKES PLC. 8,520.00 4.26 - 0 0 0 0 LIVESTOCK/ANIMAL SPECIALTIES LIVESTOCK FEEDS PLC. 1,440.00 0.48 2.08 19 1,129,606 19 1,129,606 49 1,177,628 DIVERSIFIED INDUSTRIES A.G. LEVENTIS NIGERIA PLC. 794.19 0.30 - 3 100,100 JOHN HOLT PLC. 182.90 0.47 - 0 0 S C O A NIG. PLC. 1,903.99 2.93 - 0 0 TRANSNATIONAL CORPORATION OF NIGERIA PLC 43,493.35 1.07 -1.83 52 1,897,841 U A C N PLC. 17,575.91 6.10 -1.61 45 1,114,200 100 3,112,141 100 3,112,141 BUILDING CONSTRUCTION ARBICO PLC. 711.32 4.79 - 0 0 0 0 INFRASTRUCTURE/HEAVY CONSTRUCTION JULIUS BERGER NIG. PLC. 26,334.00 19.95 - 12 23,075 ROADS NIG PLC. 165.00 6.60 - 0 0 12 23,075 REAL ESTATE DEVELOPMENT UACN PROPERTY DEVELOPMENT COMPANY PLC 3,637.75 1.40 - 1 2,340 1 2,340 13 25,415 AUTOMOBILES/AUTO PARTS DN TYRE & RUBBER PLC 954.53 0.20 - 0 0 0 0 BEVERAGES--BREWERS/DISTILLERS CHAMPION BREW. PLC. 13,231.85 1.69 - 1 2,100 GOLDEN GUINEA BREW. PLC. 242.22 0.89 - 0 0 GUINNESS NIG PLC 104,043.18 47.50 - 14 18,570 INTERNATIONAL BREWERIES PLC. 146,129.65 17.00 -0.29 8 110,496 NIGERIAN BREW. PLC. 479,814.12 60.00 -0.66 42 1,074,498 65 1,205,664 FOOD PRODUCTS DANGOTE FLOUR MILLS PLC 85,500.00 17.10 -0.58 48 532,676 DANGOTE SUGAR REFINERY PLC 138,000.00 11.50 - 50 198,297 FLOUR MILLS NIG. PLC. 67,656.26 16.50 10.00 153 577,642 HONEYWELL FLOUR MILL PLC 8,168.10 1.03 - 17 132,580 MULTI-TREX INTEGRATED FOODS PLC 1,340.10 0.36 - 0 0 N NIG. FLOUR MILLS PLC. 766.26 4.30 - 4 30,914 NASCON ALLIED INDUSTRIES PLC 41,066.29 15.50 3.33 21 228,688 UNION DICON SALT PLC. 3,321.07 12.15 - 0 0 293 1,700,797 FOOD PRODUCTS--DIVERSIFIED CADBURY NIGERIA PLC. 21,505.41 11.45 4.09 38 627,118 NESTLE NIGERIA PLC. 1,066,122.66 1,345.00 - 27 9,488 65 636,606 HOUSEHOLD DURABLES NIGERIAN ENAMELWARE PLC. 1,680.31 22.10 - 0 0 VITAFOAM NIG PLC. 4,803.24 3.84 - 17 181,140 17 181,140 PERSONAL/HOUSEHOLD PRODUCTS P Z CUSSONS NIGERIA PLC. 27,396.29 6.90 - 26 155,890 UNILEVER NIGERIA PLC. 183,840.17 32.00 - 11 101,633 37 257,523 477 3,981,730 BANKING ECOBANK TRANSNATIONAL INCORPORATED 190,835.33 10.40 - 20 88,109 FIDELITY BANK PLC 47,808.42 1.65 3.13 90 5,412,797 GUARANTY TRUST BANK PLC. 849,089.52 28.85 -0.52 181 9,452,680 JAIZ BANK PLC 12,964.27 0.44 - 27 3,571,611 SKYE BANK PLC 10,687.83 0.77 - 0 0 STERLING BANK PLC. 66,217.96 2.30 - 58 1,247,503 UNION BANK NIG.PLC. 199,477.16 6.85 - 31 112,144 UNITY BANK PLC 7,948.75 0.68 9.68 10 517,231 WEMA BANK PLC. 25,459.15 0.66 8.20 30 1,636,025 447 22,038,100 INSURANCE CARRIERS, BROKERS AND SERVICES AFRICAN ALLIANCE INSURANCE PLC 4,117.00 0.20 - 1 10,000 AIICO INSURANCE PLC. 4,643.24 0.67 -1.47 16 806,825 AXAMANSARD INSURANCE PLC 21,000.00 2.00 - 4 89,570 CONSOLIDATED HALLMARK INSURANCE PLC 2,682.90 0.33 - 3 15,550 CONTINENTAL REINSURANCE PLC 19,811.94 1.91 - 0 0 2,945.90 0.20 - 5 1,120,120 CORNERSTONE INSURANCE PLC GOLDLINK INSURANCE PLC 909.99 0.20 - 0 0 GUINEA INSURANCE PLC. 1,228.00 0.20 - 0 0 INTERNATIONAL ENERGY INSURANCE PLC 487.95 0.38 - 0 0 LASACO ASSURANCE PLC. 2,123.80 0.29 - 0 0 LAW UNION AND ROCK INS. PLC. 2,277.06 0.53 -1.85 6 510,000 LINKAGE ASSURANCE PLC 5,680.00 0.71 - 0 0 MUTUAL BENEFITS ASSURANCE PLC. 2,234.55 0.20 5.00 38 14,217,376 NEM INSURANCE PLC 11,986.74 2.27 5.58 7 174,708 NIGER INSURANCE PLC 1,547.90 0.20 - 0 0 PRESTIGE ASSURANCE PLC 2,583.62 0.48 - 4 10,666 REGENCY ASSURANCE PLC 1,333.75 0.20 - 2 70,000 SOVEREIGN TRUST INSURANCE PLC 1,668.16 0.20 -4.76 19 634,545 STACO INSURANCE PLC 4,483.72 0.48 - 0 0 STANDARD ALLIANCE INSURANCE PLC. 2,582.21 0.20 - 0 0 SUNU ASSURANCES NIGERIA PLC. 2,800.00 0.20 - 28 179,000 UNIC DIVERSIFIED HOLDINGS PLC. 516.46 0.20 - 0 0 UNIVERSAL INSURANCE PLC 3,200.00 0.20 - 0 0 VERITAS KAPITAL ASSURANCE PLC 2,773.33 0.20 - 0 0 WAPIC INSURANCE PLC 5,754.58 0.43 7.50 30 84,903,102 163 102,741,462

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MICRO-FINANCE BANKS FORTIS MICROFINANCE BANK PLC 11,799.67 2.58 - 0 0 2,355.24 1.03 - 4 130,000 NPF MICROFINANCE BANK PLC 4 130,000 MORTGAGE CARRIERS, BROKERS AND SERVICES ABBEY MORTGAGE BANK PLC 3,780.00 0.90 - 7 1,910 ASO SAVINGS AND LOANS PLC 7,370.87 0.50 - 0 0 5,796.93 1.39 - 0 0 INFINITY TRUST MORTGAGE BANK PLC RESORT SAVINGS & LOANS PLC 2,265.95 0.20 - 0 0 2,949.22 3.02 - 0 0 UNION HOMES SAVINGS AND LOANS PLC. 7 1,910 OTHER FINANCIAL INSTITUTIONS AFRICA PRUDENTIAL PLC 7,200.00 3.60 - 43 498,911 CUSTODIAN INVESTMENT PLC 36,761.65 6.25 - 10 55,332 660.00 0.44 - 0 0 DEAP CAPITAL MANAGEMENT & TRUST PLC FCMB GROUP PLC. 30,694.20 1.55 -1.90 72 3,584,167 ROYAL EXCHANGE PLC. 1,131.98 0.22 - 0 0 412,182.26 40.25 - 22 46,925 STANBIC IBTC HOLDINGS PLC UNITED CAPITAL PLC 13,920.00 2.32 0.87 36 300,507 183 4,485,842 804 129,397,314 HEALTHCARE PROVIDERS EKOCORP PLC. 1,680.29 3.37 - 0 0 UNION DIAGNOSTIC & CLINICAL SERVICES PLC 852.75 0.24 - 3 139,500 3 139,500 MEDICAL SUPPLIES MORISON INDUSTRIES PLC. 583.61 0.59 - 0 0 0 0 PHARMACEUTICALS EVANS MEDICAL PLC. 366.17 0.50 - 0 0 FIDSON HEALTHCARE PLC 9,492.94 4.55 - 1 1,434 GLAXO SMITHKLINE CONSUMER NIG. PLC. 11,002.06 9.20 -9.80 13 142,101 3,968.04 2.30 - 5 66,166 MAY & BAKER NIGERIA PLC. NEIMETH INTERNATIONAL PHARMACEUTICALS PLC 987.56 0.52 - 3 51,420 NIGERIA-GERMAN CHEMICALS PLC. 556.71 3.62 - 0 0 PHARMA-DEKO PLC. 325.23 1.50 - 1 20 23 261,141 26 400,641 COMPUTER BASED SYSTEMS COURTEVILLE BUSINESS SOLUTIONS PLC 816.96 0.23 - 0 0 0 0 COMPUTERS AND PERIPHERALS OMATEK VENTURES PLC 1,470.89 0.50 - 0 0 0 0 IT SERVICES CWG PLC 6,413.06 2.54 - 2 479 NCR (NIGERIA) PLC. 648.00 6.00 - 1 6,400 346.47 0.70 - 5 250 TRIPPLE GEE AND COMPANY PLC. 8 7,129 PROCESSING SYSTEMS CHAMS PLC 1,361.86 0.29 3.57 7 394,100 E-TRANZACT INTERNATIONAL PLC 9,996.00 2.38 - 0 0 7 394,100 15 401,229 BUILDING MATERIALS BERGER PAINTS PLC 2,057.75 7.10 - 14 76,082 CAP PLC 19,250.00 27.50 - 33 75,551 200,438.39 15.25 - 22 68,635 CEMENT CO. OF NORTH.NIG. PLC FIRST ALUMINIUM NIGERIA PLC 844.14 0.40 - 0 0 MEYER PLC. 313.43 0.59 - 2 6,602 PORTLAND PAINTS & PRODUCTS NIGERIA PLC 1,959.74 2.47 - 0 0 PREMIER PAINTS PLC. 1,156.20 9.40 - 1 5 72 226,875 ELECTRONIC AND ELECTRICAL PRODUCTS AUSTIN LAZ & COMPANY PLC 2,256.91 2.09 - 1 111 CUTIX PLC. 2,906.18 1.65 7.14 10 1,016,660 11 1,016,771 PACKAGING/CONTAINERS BETA GLASS PLC. 33,173.14 66.35 - 2 305 GREIF NIGERIA PLC 388.02 9.10 - 0 0 2 305 AGRO-ALLIED & CHEMICALS NOTORE CHEMICAL IND PLC 100,754.14 62.50 - 0 0 0 0 85 1,243,951 CHEMICALS B.O.C. GASES PLC. 1,889.75 4.54 - 3 13,974 3 13,974 METALS ALUMINIUM EXTRUSION IND. PLC. 1,781.64 8.10 - 0 0 0 0 MINING SERVICES MULTIVERSE MINING AND EXPLORATION PLC 852.39 0.20 - 0 0 0 0 PAPER/FOREST PRODUCTS THOMAS WYATT NIG. PLC. 92.40 0.42 - 0 0 0 0 3 13,974 ENERGY EQUIPMENT AND SERVICES JAPAUL OIL & MARITIME SERVICES PLC 1,440.42 0.23 - 13 825,959 13 825,959 INTEGRATED OIL AND GAS SERVICES OANDO PLC 49,725.65 4.00 5.00 71 3,420,960 71 3,420,960 PETROLEUM AND PETROLEUM PRODUCTS DISTRIBUTORS 11 PLC 56,974.05 158.00 - 20 64,178 CONOIL PLC 16,516.06 23.80 - 54 231,819 ETERNA PLC. 4,760.13 3.65 - 18 43,396 FORTE OIL PLC. 31,650.29 24.30 -10.00 47 603,572 MRS OIL NIGERIA PLC. 6,354.80 20.85 - 6 100 TOTAL NIGERIA PLC. 47,533.06 140.00 -5.41 43 48,522 188 991,587 272 5,238,506 ADVERTISING AFROMEDIA PLC 1,820.01 0.41 - 0 0 0 0 AIRLINES MEDVIEW AIRLINE PLC 17,551.17 1.80 - 2 250 2 250 AUTOMOBILE/AUTO PART RETAILERS R T BRISCOE PLC. 341.14 0.29 - 0 0 0 0 COURIER/FREIGHT/DELIVERY RED STAR EXPRESS PLC 3,183.28 5.40 9.09 14 197,668 TRANS-NATIONWIDE EXPRESS PLC. 342.26 0.73 - 2 3,650 16 201,318 HOSPITALITY TANTALIZERS PLC 642.33 0.20 - 1 100 1 100 HOTELS/LODGING CAPITAL HOTEL PLC 4,723.78 3.05 - 0 0 IKEJA HOTEL PLC 2,972.68 1.43 - 4 11,860 TOURIST COMPANY OF NIGERIA PLC. 7,862.53 3.50 - 7 1,010 TRANSCORP HOTELS PLC 41,042.18 5.40 - 1 85 12 12,955 MEDIA/ENTERTAINMENT DAAR COMMUNICATIONS PLC 4,800.00 0.40 - 1 100 1 100 PRINTING/PUBLISHING ACADEMY PRESS PLC. 241.92 0.40 - 20 271,002 LEARN AFRICA PLC 1,072.32 1.39 5.30 27 1,382,339 STUDIO PRESS (NIG) PLC. 1,183.82 1.99 - 0 0 UNIVERSITY PRESS PLC. 798.11 1.85 - 6 80,959 53 1,734,300 ROAD TRANSPORTATION ASSOCIATED BUS COMPANY PLC 497.31 0.30 - 17 52,000

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BUSINESS DAY Tuesday 09 July 2019 www.businessday.ng

CEO in focus

Segun Adebutu: The fresh breath in Nigeria’s energy business DIPO OLADEHINDE

A

fter 58 years of independence, Nigeria’s oil sector though responsible for 90 per cent of the country’s foreign exchange earnings, still contributes little to grow the country’s GDP which has remained in the onedigit margin. This is despite having Africa’s second-largest oil reserves with estimated known reserves of 37 billion barrels of oil and 5 trillion cubic metres of natural gas.

Segun Adebutu, chairman and founder of Petrolex Oil and Gas Limited is embarking on a journey to change the narrative in Nigeria’s oil and gas industry; from one about pollution, corruption, conflict and dependence on foreign capacity to a new dawn of bold innovations, social investments, and local capacity development.

For many, Petrolex was not a name that rang a bell four years ago but the company has risen from obscurity to arguably a major player in the downstream and midstream sectors of the industry. As typical of emerging giants in the sector, Petrolex’s interest encompasses storage, distribution, retail and oil servicing, with plans for upstream and refining.

Though media-shy, Adebutu is a member of one of the most powerful families in South West Nigeria and an offspring of one of the wealthiest businessmen in the country; Kensington Adebutu. Segun must have had a lot of mentorship from his father, who made lottery games popular in Nigeria and his Premier Loto still dominates the industry today. Premier Loto is so successful that Nigerians call the entire loto business ‘Baba Ijebu’, after Kensington’s alias.

Like his father, Segun Adebutu is building his own industry-defining empire.

Adebutu and his team carved out 30,000 acres of pristine swamp forest and are gradually developing it into a petrochemical hub that is expected to supply a sizable part of the country’s petroleum products consumption and create a significant impact on the economy.

The mega oil city is strategically located; accessible by inland waterways connected to the Lagos lagoon. It is expected to create over 10,000 jobs.

Six years ago, Petrolex took a giant

Adebutu

stride when it silently commenced the construction of a mega oil city in Ogun State, the neighbouring state to Lagos, Nigeria’s commercial nerve centre. The first phase of the project has been completed and commissioned; the 300 million litres mega tank farm.

Amongst others, the industrial complex will house a 250,000 bpd refinery, a 100MW power plant, a petrochemical plant, an ultramodern lubricant plant and gas processing plant.

The tank farm has 30 loading gantries with a scheduled truck loading and fuel management system, and a 4000-truck capacity trailer park for efficient loading.

To supply the facility and ensure ease of distribution, a jetty has been constructed and vessels moored.

The Petrolex fleet consists of barges, tugboats, and a mother vessel. The total investment into the facility is about $330million. With the completion of the tank farm, Adebutu has pioneered a milestone in the Nigerian oil and gas industry downstream; he has built the largest tank farm in SubSaharan Africa (SSA).

“At present, we have a depot with a total capacity of 200 million litres, which is the

largest depot for petroleum products in Sub-Saharan Africa,” Segun Adebutu told thebusinessyear.com.

The Petrolex tank farm is expected to account for over 30percent of consumption within the next few years. The tank farm is but a fraction of what is being developed at the mega oil city.

Over the next 5 years, Petrolex plans to invest up to $5billion into developing various monumental projects at the site. The biggest of these is the 250,000 barrels per day refinery, which will be Sub-Saharan Africa’s second largest when completed.

This massive, laudable project will be a significant factor in determining the future of the Nigerian economy.

“The first phase of the refinery, which is essentially the storage tank, will take time and resources. We have a lot on our plate for the coming year, and we are confident and optimistic,” Segun Adebutu said.

However, oil and gas is not the only investment making the billionaire lottery scion the current toast of corporate Nigeria.

Adebutu’s vast business empire reaches into mining through a company that is described as one of Nigeria’s most endowed set of mining assets in one portfolio. Also,

there is a marine logistics firm reputed to be quietly amassing the largest fleet in SSA and already quietly executing several multimillion-dollar contracts across West Africa. He also has under his belt, an urban entertainment outfit based in America and Nigeria, boasting of several top local artists and international affiliations.

Nevertheless, the need to infuse humanity into business is not lost on this bighearted philanthropist. His insatiable desire to solve problems and contribute towards ameliorating pain in the society propelled him to create the Oladiran Olusegun Adebutu (OOA) Foundation, a non-profit and non-political organisation in 2016.

The foundation engages in philanthropic initiatives ranging from educational support, health support, nutritional support, psychosocial support, recreational support, shelter and provision of clean water. The foundation has carried out several initiatives that have buoyed access to education and healthcare for hundreds of children.

In October of 2018, the foundation in conjunction with ex-Arsenal and exNigerian International, Kanu Nwankwo organised a novelty match in London between the legends of the English Premier League and African football legends with the proceeds going to operations for kids living with heart conditions.

His famed kindness towards children takes its roots in his hometown where he reportedly bought a house for a homeless family and awarded scholarships to all five children of said family up to university, on the request of a child.

Adebutu is charting new territories, proving that with vision and determination, the supposed insurmountable barriers in Nigeria can be scaled, and thus leading the way for a new breed of forwardthinking indigenous CEOs who believe that the future should not be defined by the realities of today. Adebutu is creating a new world of possibilities and the world is beginning to notice. Today, he is one of the 50 most influential Nigerians, according to BusinessDay Research Intelligence Unit.

On plans for the future of Petrolex Oil and Gas Limited, “Our plan is to reinvest our profits in the business so the company can grow in size and launch an IPO,” Adebutu said.

Published by BusinessDAY Media Ltd., The Brook, 6 Point Road, GRA, Apapa, Lagos. Advert Hotline: 08034743892. Subscriptions 01-2950687, 07045792677. Newsroom: 08169609331 Editor: Patrick Atuanya. All correspondence to BusinessDAY Media Ltd., Box 1002, Festac Lagos. ISSN 1595 - 8590.