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Covenant, UNN, FUT Minna, Ilorin, UI top most preferred graduates by employers KPMG, Andela, Shell offer best opportunities for graduates 60% of graduates earn less than N50,000 on first job M G

MTN nears settlement with CBN over $8.1bn claim … fine puts S/Africa’s banking system at risk

KELECHI EWUZIE

LOLADE AKINMURELE

raduates from Covenant University have come tops as the most preferred graduates in the Nigerian labour market, The Nigerian Graduate Report 2018,

TN Group Ltd. is close to securing a deal with the Central Bank of Nigeria (CBN) over an order to repay $8.1 billion it is alleged to have illegally taken out of the country, confirming BusinessDay’s report of last month. A settlement is expected by Monday but could come as early as today, according to a report by Bloomberg. Sources close to both the CBN and MTN earlier told BusinessDay that results of a meeting held in October between both parties were positive, despite the fact that the outcome of the meeting was not made public.

L-R: Toyin Adeniji, executive director, micro enterprises, Bank of Industry; Zainab Ahmed, minister of finance; Olukayode Pitan, managing director/CEO, Bank of Industry, and Mabel Ndagi, head, communications and external relations, Bank of Industry, at the Africa Investment Forum organised by the Africa Development Bank in Johannesburg, South Africa.

prepared by Stutern in partnership with budgiT and Jobberman has shown.

The report identified Graduates from Covenant University, Otta Ogun State as the most pre-

ferred candidates by employers such as KPMG, Andela, Shell, Continues on page 34

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Inside Regulators stifle businesses in threat to economic growth P. 2 Olu Fasan on Monday “AfCFTA, EPAs and Brexit: Africa needs holistic integration”

2 BUSINESS DAY NEWS

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Nigeria’s Chinwe Anadu joins elite club of partners at Goldman Sachs Laura Noonan, FT

t has been one incredible week for one Nigerian lady at the urban investment unit, UIG at Goldman Sachs, the global banking institution where she has just been made a partner. Margaret Chinwe Anadu, is head of Goldman’s urban investment group and days ago, she was called by new CEO David Solomon telling her she had been promoted. “When I joined 15 years ago, I never thought that I could be a managing director, much less a partner,” said the Nigerian banker who also holds an American passport. Ms Anadu joined Goldman’s analyst programme directly after graduating from Harvard in 2003 and sees the promotion of so many diverse partners was the result of years of work Goldman has done to support diverse talent. This year’s partners group of 69 was the smallest in 20 years and most people who wanted to be made partner missed out. “It is certainly difficult . . . to be a recipient of something and know that others are not,” said Ms Anadu, who sees her elevation as a vote of confidence not just in her but in the impact investing her team is doing. “There are 34 people in Urban Investment Group, UIG or who work closely with UIG. We all got promoted today.” She said one of the first calls she got to congratulate her was from a colleague who was hoping for promotion but was passed over. Although Goldman has not been a true partnership since its 1999 stock market listing, partner titles are still a golden ticket, offering base salaries of $950,000, membership of the bank’s most influential committees and exclusive investment opportunities. On Wednesday 69 people received the call, literally, as Goldman’s new chief executive David Solomon and president John Waldron personally dialled around to give the good news to those who made it. The newcomers include a London-based husband and wife and a thirtysomething trader who once reportedly made a $100m profit in a few months. There are now 484 partners in a firm of 36,600 staff. Women were better represented than ever before, accounting for 26 per cent of this year’s crop, though even after the latest promotions women will hold just 17 per cent of the total partner seats. “We could continue to do a much better job on that front, and with David at the helm I think we will do a much better job,” said Mr O’Brien. “It’s very important for all the businesses that we’re in.” Heather Ken-

Anadu

nedy Miner, Goldman’s head of investor relations, is one of the newlypromoted women. “I absolutely did not expect it,” she said. “It’s an incredibly opaque process.” She found out when she stepped out to take a call at a risk committee meeting, which included some people who already knew of her promotion. She then had to sit through another 55 minutes of the meeting, trying to look “very calm and composed” and was sworn to secrecy until the official announcement was made some four hours later. As head of IR, Ms Kennedy Miner is one of the people who will have to make good on Goldman’s new management team’s pledge to be more transparent. “I work at Goldman Sachs, I’ve worked hard my whole life,” she said of the extra work that may involve. “It’s an incredibly exciting time.” Not everyone takes missing out so well; the Financial Times reported earlier in the week about a Londonbased equities specialist who quit because he did not make the cut. One person involved in the partner selection process said: “the circle of disappointed people (always) extends to people who are understandably disappointed to disappointed people who really shouldn’t be, to people who have absolutely no reason to be disappointed. Anointing fewer partners this year will not cause more disillusionment, the person believed. “If you think about the number who aspire to be partner, the delta of 15 doesn’t make your job infinitely harder or not (awarding partnerships),” he said. Partners typically remain in situ for six to eight years, sources at the bank told the FT, and every year a handful quietly step back from the partner ranks in a move called de-partnering. Some do it by choice, some are asked to make way for others. Some re-enter the partnership at a later stage. However, de-partnering is a long way from the thoughts of the class of 2018,whoalsoincludeaLondon-based married couple Beat and Niharika Cabiallavetta and the “$100m trader” Thomas Malafronte, who works for Goldman’s New York securities division and made the newspapers in 2016 for making a nine-figure trading profit.

Nigeria plans London roadshow for $2.8bn Eurobond sale

igerian officials will go on a roadshow to London next week ahead of a planned $2.8 billion Eurobond sale this month as calls mount for the government to switch from borrowing for mere consumption to investment. The roadshow, which is being organised by Citi and Standard Chartered, will run from Nov. 12 for three

days and be attended by Nigerian Finance Minister Zainab Ahmed, two banking sources told Reuters on Thursday.. Nigeria’s upper house of parliament last month approved the Eurobond issue but advised the government to limit foreign borrowing and boost revenue.

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L-R: Chika Ikenga, GMD, Eunisell Limited; Simon Willar, chief marketing officer; Junior Lokasa, Kano Pillars’ player/highest goal scorer, and Ramesh Huller, CEO, Eunisell Limited, at the Eunisell award ceremony for highest goal scorer for the 2017/2018 NPFL season in Lagos, yesterday.

Regulators stifle businesses in threat to economic growth … Importers, manufacturers under pressure as adoption of standard cargo inspection drags DANIEL OBI, AMAKA ANAGOREWUZIE & LOLADE AKINMURELE

ather than facilitators of business, regulatory agencies in Nigeria are more of stumbling blocks and millions of local companies may be justified in feeling hard done by. Not only does a harsh regulatory climate for businesses contradict efforts made by the current administration to improve the ease of doing business, it also puts a cap on economic growth and job creation in a country tipped to become the third most populous nation by 2050. Business owners complain of regulators that are detached from their role of facilitating business and have

morphed into extortionists hitching to slap heavy fines on companies for the slightest infraction. “We need regulatory agencies that understand economics and their role as facilitators of business,” said Doyin Salami, a former member of the Nigerian Monetary Policy Committee (MPC). “Our regulators should not be first about raising revenue because it makes little sense if it comes at the expense of jobs and even long term revenue itself,” Salami said during a panel discussion at the 24th NES in Abuja last month. BusinessDay spoke to tens of business leaders in the commercial capital of Lagos who said their experience with regulatory agencies has been as painful as it has been expensive.

For instance, at the Advertising Practitioners Council of Nigeria, APCON, any firm that wants its advert vetted has to pay for regulatory vetting of the same advert content meant for exposure in different media channels such as print and outdoor. This means that the same content of advert is vetted and charged differently for its exposure each in billboard, print media and perhaps TV. APCON charges about N25, 000 fees for normal 10-day vetting exercise for each advert concept, while eight hours of accelerated vetting charge is raised ten times to about N250, 000. Violators of vetting rules are fined up to N500, 000. The experience at APCON is just

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Lack of funding stalls 60% of planned hotel rooms ... over 5,000 pipeline rooms deal under threat OBINNA EMELIKE

early 60 percent of hotel rooms planned to be built in Nigeria’s two major cities over the last five years have been stalled by lack of funds. So far, only about 4000 of the 9,603room deals signed by developers, investors and brand operators in the period are under construction, leaving over 5000-room deals under threat of termination, BusinessDay investigations show. The 9,603 rooms are contained in 57 hotel projects planned by leading hotel brands mostly in Lagos and Abuja, Nigeria’s commercial and political capitals, respectively. Nigeria has experienced the emergence of transaction-heavy and deal-making environment over the past few years, occasioned by improvements in the economy and a favourable investment climate, but this has not been matched by a corresponding rise in the supply of quality hotel rooms. Trevor Ward, CEO of W Hospitality, a Lagos-based hospitality solution,

data mining and development firm, explained that raising funds to execute these projects has been constrained by high cost of funds and inability of developers to co-fund the projects. Ward added that the number of pipeline projects in Nigeria is expected to increase in the coming years as many developers, investors and brand operators are still queuing to strike more deals across the country because of the assurance of return on investment. At present, there are over 20 abandoned hotel projects planned by international brands, especially in Lagos and Abuja, while many others did not live beyond the deal singing and ground-breaking ceremony, all due to lack of funding to realise them. “If hotel projects stay longer in the pipeline, the developers will become jittery because the banks or others sources of the loans used in financing the projects will start calling for their money. As at present, over five hotels have been taken over by the Asset Management Corporation of Nigeria (AMCON) due to the failure of the owners to repay bank loans,” said Angwe Ikpe, a hotel development

expert and former investment banker. Kfir Rusin, host of the West African Property Investment (WAPI) Summit, expressed excitement over the significant opportunities in Nigeria for hotels, but said he was sad because of the funding challenge. He urged all the stakeholders in the real estate and hospitality business to seek platforms that can address the issue. Ward advised developers to go for hotel projects targeted at the mid-scale market instead of the top-end of the market, which he said has been the focus of some global operators such as Hilton, Marriott, and the Radisson. He argued that it is cheaper to build economy or mid-scale market hotels than the capital-intensive five-stars, which most international brands believe they can use to rapidly expand their footprint across Africa. Still on how to address the funding challenge, Ward suggested that developers and brands could leverage on new trends such as Meetings Incentives Conferences and Exhibitions (MICE), Airbnb, serviced apartments among other options where current demand is concentrated.

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Friday 09 November 2018

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Friday 09 November 2018

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Friday 09 November 2018

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Their tales; not their silence TONY MONYE Monye is the Convener, The Lunar Leadership Society

hen it comes to penning down my thoughts and beliefs, I can be quite enthusiastic. But the desire ‘acme-ed’ when the discourse of greatness strolled down my alley. It’s only because exceptionality, along all its plains, is something that soothingly massages my fancy, releasing excitement. I often find myself immersed in books and discussions about it, yet my fascination feels no wane. And, I love to observe men of this breed in action and grudgingly, in their silence though it hurts. Even from a very acute angle, I quite excitingly understand their various acts and attainments inspire many. On the other hand, their silence tells us nothing, rubbing pains deeper into our veins. And, that is, if we appreciate the many discomforts of silence. Yes, we’d love the great humans amongst us to talk. This is only because their words, to some of us, maybe a bit biblical as we quest for phenomenal successes in all our endeavours. Just a few months back, some of my folks bothered about begging for the

chatters of these unusual men, in an extraordinary sense. The belief there was something in them for all of us was clearly real, almost outer-worldly. We sought many ways to get them to share, to reveal, to talk to us the larger majority of the many unknowns that drove all of them to dizzying heights. Luckily for us in this cluster, we dreamt, which impaled our sleep. In our dream we sought for and found something of great goodness and value to many a human and society. We argued, arranging and rearranging our thoughts and views in meaningful sequence. Slowly but assuredly, we understood in the wholeness of discussion, awareness is heightened. And, raised awareness has its own ways of propping appropriate actions. And, when the action is well-timed, would certainly lead to desired results. We felt quite good; something worthwhile is about the shore. At last, we created the Lunar Leadership Society – a platform of like-minds to foster, promote, nurture as well as raise the level of discourse/treatise on leadership and personal/self-development. Although we admitted it might not have given the ‘eureka feeling’, only few things do. The Lunar Leadership Society may not have received points for originality; the society promises to be different. Thereafter, it became much easier to create a sub-podium for these men of raw grit and extraordinary courage to share with us values leading to their thickness of standards, practices and beliefs in a

‘

… the Lunar Leadership Society – a platform of likeminds to foster, promote, nurture as well as raise the level of discourse/ treatise on leadership and personal/selfdevelopment

’

society prevailed by the thinness of the beings in all of these spheres. We bartered and finally settled that all of them would rather be hot, rising steam than drinkable lukewarm water in a grandmother’s clay-pot. We are enthused. So far, The Lunar Leadership Society is well-received given website visits and the rising number of enlistments. That is, if count highlight more than sheer numbers. Like all phenomena, we bank

on the strength of enough. When we get there, the count will take a pause. For now, the door is still ajar. The especially focused sub-podium is here with us too. And, it is entitled, ‘their tales, not their silence’. The subplatform is to celebrate some of the nation’s greatest of men and women whilst we listen our ways to more meaningful existence. When they talk and we heed, we’d end up as big gainers. Yes, we choose to celebrate them for many reasons. One, we know and have embraced the individuals in our homes could be the prophets we seek for in other men’s apartments. We are different; for we cuddle that the apparent isn’t all the time completely shallow. In slight of the typical Nigerian view, we don’t believe the great guys are not of our shores like many are wont to think. They aren’t just always outside; they are inside, here with us. We easily wrestled the oft-mouthed belief they are in America, in Asia and in Europe. They are definitely not of Africa, nay Nigeria. We honestly differ, thinking they are here with us. And, truly, they are. Aliko Dangote isn’t American. That quiet, shy-looking man is from Kano, Nigeria. Jim Ovia isn’t white. That Agbor man is black. And, he is Nigerian. Tony Elumelu isn’t European. He’s from Delta State, Nigeria. Aigboje AigImoukhuede and Herbert Wigwe aren’t Asians. The former is Edo and the latter, from Rivers State. They are Nigerians. So, are the likes of the GT Bank duo of Fola Adeola and Tayo Aderinokun (of blessed memory), Atedo Peterside,

Mike Adenuga, Femi Otedola, Folorunsho Alakija, Otunba Subomi Balogun and Pascal Dozie, Ibukun Awosika etc. This list is too short. There are many ranked Nigerians out there worthy to be celebrated; worthier to be listened to. But where are the daises? The Lunar Leadership Society presents one of such stands, which primarily is about the speedy spread of hardly-available practical business – greatness knowledge through this crop of our finest. Well, maybe, wisdom which, arguably, is peculiar to our clime. These men, many will agree, are strong-rolled, tenacious, action-oriented, resilient and self-confident. They are also hardworking enthusiastic, optimistic, brave, purpose-driven and energetic. Aren’t they also explorers? As explorers, they have furrowed into the dark, uninviting and insipid cavernous holes of greatness. On their paths were large odds; some of them, largest of odds, which are unimaginable. Being extra – made of more, these men defiled them with the sound and smiles of victory coming somewhat earlier. Isn’t it about time we listened to their tales? Isn’t it time we told them their silence hurts? Because in their stories, the next generation of legends are certain to experience some refreshing beam of sunlight inspiration. Welcome to the Lunar Leadership Society; welcome to ‘their tales, not their silence’.

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Why organisations with strong culture of questioning perform better

UJU ONWUZULIKE Uju Onwuzulike is Nigeria’s leading authority on Systems Thinking and Strategic Management. He can be reached on 09091142093 or uju.onwuzulike@mclgroup.net.

ften times, when I ask people in organizations to list their attributes or what classify them as a high performing organization, the list is always long. Organizations on their own also invest in so many things or areas they think will make them high performing at least by their own assessment. However, one key attribute – that is critical to superior performance, innovation, transformation, growth, new discoveries and new ways of doing things has been kept off the radar all these years. And that is “creating a culture of questioning”. Intentionally, let’s ask ourselves; in our organizations do we have a “strong culture of questioning” for everyone to adopt? In this era of competitiveness where every organization is trying hard to deliver customer value, a lasting advantage organizations will have over others is the ability of their employees (regardless of roles, units or departments) to ask smart, tough or thought provoking questions. Every transformation, innovation or initiative stem from understanding or knowing the right questions to ask. Conversely, most failures in organizations have occurred

because someone was unwilling to ask questions about things going wrong, things he/she does not understand, things that show great concern (and if not resolved can cause serious problems), customers were not asked the right questions etc. Yes, it is true that thought is what precedes change, but what is more important is to know that all thinking is stimulated by questions. Does your organization have a strong corporate culture of questioning as opposed to depending only on answers? Frankly and sometimes, it appears better and more respectful to always provide answers to customers, managers and even business owners. This also explains why salespeople are quick to provide impressive answers too often and eventually do not win the business. The business landscape of today requires people who will not just provide answers, but know how to ask smart questions (and problem revealing questions). Little wonder Robert Focazio, (former national vice president of sales, AT & T) once said, “If you improve your questions by 10%, you increase your sales and productivity by 20%...and that’s being conservative. I understand, the urge to appear smart always drives us to seem to be providing answers where we ought to ask questions (or even listen) in order to be on the same page with our managers and customers alike. The former CEO of Google (Eric Schmidt) knew the importance of having a corporate culture of questioning when he said: “We run the company by questions, not by answers”. My personal understanding of this is that great companies can only be built by asking questions that have not been asked before as opposed

to providing answers that have already existed. Today, we all know how well Google is doing. But someone might say, making our organization to have a culture of questioning is something we can just introduce in our organization casually and that does not require serious effort or investment. I think any organization that thinks in that manner has missed it, because asking smart question and asking it in the right way (to yield result) is an art that should be learnt by organizations. Organizational activities like marketing, hiring the right staff, problem solving, improved performance, negotiation, and improving the corporate culture etc can be greatly enhanced when employees have mastered the art of right questioning. Without learning the art, organizations might only be building up questions that will always backfire. These include disempowering questions, lousy questions, dangerous questions, manipulative questions, prying questions, showing off with questions, asking at the wrong time etc. So what employees need now is a comprehensive guide that will sharpen their questioning skills – that way they will know what to ask, what not to ask and how to ask the right questions in almost any managerial or marketing situation. Institutionalizing the right culture of questioning in organizations has the power to dramatically improve employees’ performances. By the right culture of questioning, I mean questions that empowers or empowering questions. Unknowingly, some leaders and managers contribute to the poor performances of their people whenever they ask them “disempowering questions”. A case in point was a manager of a bank who in my presence asked his staff member - Why do you always fail to meet your

target? Yes, I know that achieving one’s target is very critical and everyone is expected to achieve his or her target, but what could be suboptimal is asking for the right thing the wrong way. I told the manager that he has the right to ask his staff member any question regarding his performance. However, it is better to ask him questions that will open him up or empower him for better performances than asking him disempowering questions that will end up worsening his performances. This is an area most managers need to improve upon – when it comes to performance matters; it has been our dominant pattern to ask disempowering questions – most times out of annoyance or pressures from our superiors). Back to the manager’s case, I encouraged him to always use empowering questions on his staff members that have issues with performances. Therefore, instead of asking the initial disempowering question, he could as well ask empowering questions like: “Is there anything I can do to help you meet your targets?” Or “Are there areas you think you need to improve upon in order to meet your targets?” Or “What challenges are you facing that are making you not to meet your target?” Managers should be at the forefront of helping their people resolve their performance challenges. Whenever a CEO, leader or manager ask those kinds of empowering questions, it opens the gateway that will lead to identifying the employees’ paths to success through your questions. Leaders and managers have a key role to play in creating a corporate culture of questioning. They are to create a questioning business environment where staff members will feel safe and

able to trust the system and the people involved. By so doing, they will build a culture in which questions are welcomed, assumptions are challenged, and new ways to solve problems are explored. As a matter of fact, questions establish an inquiring culture in organizations, and such an inquiry and culture will build a learning organization – and a learning organization is a thriving organization. Final note: Organizations should develop a culture where asking the right questions is permissible, safe and desired. The old erroneous belief that leadership is all about knowing all the answers should no more apply in today’s business world. Leadership in any facet should be viewed as knowing the right questions to ask, and carefully listening to those answers. Every organization possesses an array of knowledge, wisdom, creativity, and energy, and the surest way to harness those assets is to encourage questioning as part of the organization’s culture. Remember, the leader of the past may have been a person who knew how to tell the answer, but the leader of the future will be a person who knows how to ask the right question. Do you desire to learn what it takes to build the right culture of questioning in your organization? If yes, let me know. As always, I welcome your comments, requests and questions. Happy reading and I look forward to hearing from you!

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comment AMAMCHUKWU OKAFOR

he electioneering bell soon to go off, politicians in this clime would be at their ‘best’ behaviour as we are already beginning to see. Subliminally, the people to whom the deeds are done launder the dirty behaviours of the political class to lull their immediate disquiet. But democracy is mob rule. And politicians have mastered the arts of demagoguery. They know what to say and where to say it. As well as they do not themselves understand the nature of the problem (in Nigeria); they know too that the masses do not understand the nature of the problem. But understanding the nature of the problem is pertinent to understanding the solution. The man, who understands the problem, speaks of the solution in the light of the problem. It is easy to garner attention based on mudslinging and stirring up emotions, but it would not last. You may even be lucky to win an election, but you will be overwhelmed by the stark nature of the problem – in which you are poorly knowledgeable. Is it not amusing how these candidates speak of the same things as the problems and upon assumption into office become all of a sudden befuddled by the realities? They simply become overwhelmed and do not know where to start. As citizens, we have to be armed with a clear understanding of the nature of the problem to guide our choices. What is the nature of the problem? Fundamentally, I do not agree with the many challenges often highlighted in the media as the problem of the economy. The problem has to be greater, more encompassing and systemic than the mere symptoms

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The nature of the problem and politicians: lessons from J.M. Keynes – poverty, unemployment or even corruption – often diagnosed. In ‘The Means to Prosperity’, Keynes argued: “If our poverty were due to famine or earthquake or war—if we lacked material things and the resources to produce them, we could not expect to find the Means to Prosperity except in hard work, abstinence, and invention. In fact, our predicament is notoriously of another kind. It comes from some failure in the immaterial devices of the mind, in the working of the motives which should lead to the decisions and acts of will, necessary to put in movement the resources and technical means we already have. It is as though two motor-drivers, meeting in the middle of a highway, were unable to pass one another because neither knows the rule of the road. Their own muscles are no use; a motor engineer cannot help them; a better road would not serve. Nothing is required and nothing will avail, except a little, a very little, clear thinking.” You see? Graciously different administrations have boasted about the richness of our lands; they described it as land of milk and honey. We are not ravaged by natural disasters, neither by material resources. A history of our political instability is a history of self-aggrandisement – one man, irrationally wanting all to himself. Keynes continues: “So, too, our problem is not a human problem of muscles and endurance. It is not an engineering problem or an agricultural problem. It is not even a business problem, if we mean by business those calcula-

tions and dispositions and organising acts by which individual entrepreneurs can better themselves. Nor is it a banking problem, if we mean by banking those principles and methods of shrewd judgement by which lasting connections are fostered and unfortunate commitments avoided. On the contrary, it is, in the strictest sense… a problem of the political economy.” We have very young and vibrant population demographics, our banks are very innovative, our lands are fertile, businesses can function, schools can be built, and we have natural endowments on which our industries can thrive. What is lacking is the coordinating mechanism that works to optimize welfare from these human and material endowments. It is a problem of the political economy. Keynes: “I call attention to the nature of the problem, because it points us to the nature of the remedy. It is appropriate to the case that the remedy should be found in something which can fairly be called a device. Yet there are many who are suspicious of devices, and instinctively doubt their efficacy. There are still people who believe that the sway out can only be found by hard work, endurance, frugality, improved business methods, more cautious banking, and, above all, the avoidance of devices. But the Lorries of these people will never, I fear, get by. They may stay up all night, engage more sober chauffeurs, install new engines, and widen the road; yet they will never get by, unless they stop to think and work out with the driver opposite, a small device by which each moves simultaneously a little to his left.”

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I do not agree with the many challenges often highlighted in the media as the problem of the economy. The problem has to be greater, more encompassing and systemic than the mere symptoms – poverty, unemployment or even corruption – often diagnosed

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We could tinker our agricultural system, educational system, banking, technology; they might function distinctively as we have it, but the expected economy-wide effect would be distorted and we would always speak in terms of growth potentials instead of growth advancement. We must discuss the basis of our co-existence, enliven the social contract, and secure our democracy, not by military’s monopoly of weaponry but by the supremacy of the law and unflinching

regards for democratic institutions. The pomposity inherent in the military must be dispelled as popular nonsense. The inconsistencies and biases in the constitution must be resolved. Unity as the soul of the nation must be imbibed in all practice and at all levels. The politics and the economics must be co-reinforcing. It is superior to live in a country where one has an identity and lives freely without infrastructure, than in one where one’s identity and freedom is denied and the abundance of infrastructures lull one in subtle ways the urge to take one’s life. To conclude with a final one from Keynes: “It is the man who tells us that there is no means, consistent with sound finance and political wisdom, of getting the one to work at the other, whose judgement we should instinctively doubt. The calculations which we ought to suspect are those of the statesman, who, being already burdened with the support of the unemployed, tells us that it would involve him in heavy liabilities, present and to come, which the country cannot afford, if he were to set the men to build the houses; and the sanity to be questioned is his, who thinks it more economical and better calculated to increase the national wealth to maintain unemployed shipbuilders, than to spend a fraction of what their maintenance is costing him, in setting them to build one of the greatest works of man.”

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Facing down corruption in Nigeria

EMMANUEL OKOROAFOR Dr OKOROAFOR writes from Southampton, UK, via eokoroafor@aol.com

orruption is dishonesty or criminal activity undertaken by a person or organization entrusted with a position of authority, often to acquire illicit benefit. Referencing the Corruption Perception Index (CPI), published annually by Transparency International (TI), which ranks countries “by their perceived levels of public sector corruption as determined from the informed views of business people, experts and analysts in countries around the world,” there is no corruptionfree country. Corruption occurs on different scales – from small favours between a small number of people (petty corruption) to the corruption that affects the government on a large scale (grand corruption), and corruption that is so prevalent that it

is part of the everyday structure of society (systemic corruption). Common features of societies rife with corruption include disorder, conflicts, insecurity and underdevelopment. Victims of corruption are usually society’s poor and marginalized individuals. The vulnerable. Nigeria, currently, belongs to the category where corruption is and remains a significant threat and impediment to the nation, particularly in establishing democratic institutions and attaining sustainable development goals. The situation in Nigeria is exacerbated by the pervasiveness of the rot – government/public sector corruption, political corruption, police corruption, army corruption, judicial corruption, corruption in the education system, corruption in religion, corruption within trade unions, corporate corruption, etc. – and the different forms it assumes: bribery, embezzlement, theft, fraud, influence peddling, extortion and blackmail, abuse of office, illegal contracts, impunity, favouritism, nepotism and clientelism, etc. Curiously, many Nigerians do not like the issue to be brought up in the public domain. Yet, discussions about it will help with finding solu-

tions. When President Muhammadu Buhari stated on the world stage that Nigeria is a corrupt country, and if corruption is not tackled, it will kill Nigeria, he was simply seeking solutions, being aware of the negative impact of corruption on the fabric of the nation, its devastating effect on democracy and development and its hampering of people’s ability to come out of poverty. Everywhere are glaring examples of the ills of corruption in Nigeria. The consequences manifest in the form of weak governance, weak institutions and political prostitution – maladies that indirectly erode democratic values, whittle freedom of expression and encourage a clampdown on civil society organisations. On the international scene, corruption has damaged the image and reputation of Nigeria and her citizens. It has weakened citizens’ sense of patriotism, with some readily betraying national interests for a fistful of naira or foreign currencies. The country today is under the siege of armed robbery, kidnapping, and terrorism, just as recurrent civil strife between ethnic and religious groups in the country has become a norm. There seems to be an epidemic of general lack of conscience. All these

maladies are traceable to corruption. It has fostered quackery everywhere – fake diplomas and degrees, fake medical consultants, phoney engineers, false teachers and ghost workers – leading to a culture of mediocrity. Today, there is a distrust of the security services (especially the Police), the judiciary and the political class, all because of corrupt practices. The looting of the treasury and subsequent transfer of the funds out of the country has led to a vicious cycle of lack of resources to undertake major development projects that will benefit and uplift the citizenry. As a result, the country suffers from infrastructural decay with attendant widespread of underdevelopment, which scares off investors. Corruption is the reason the country is in shambles: electric power crisis, poor drainage systems, poor sanitation, lack of potable water, bad road network, and lack of access to quality education, good health services or judicial services. Nigerians have demonstrated extraordinary intellectual and creative capabilities, but corruption has robbed them of human, techno-

logical and economic development – rendering capacity building a topic for talk shops. More importantly, it is the reason for the country’s poverty. Roughly 80% of Nigerians – about 144 million people – are living in abject poverty, and the country has been recently crowned the poverty capital of the world by British Prime Minister Theresa May. Her predecessor, David Cameron had called Nigeria “fantastically corrupt.” Both PMs linked the country’s pervasive poverty to grand corruption. There are incidences of people dying daily from poor medical service and dodgy practices. Those who can afford it travel abroad for medical care. They send their children to schools outside Nigeria. When they need stress-free rest, they travel out of the country. The rest simply MILT (manage it like that) in Nigeria with the self-consolatory remark that “It is well.”

Note: The rest of this article continues in the online edition of Business Day @https://businessdayonline. com/ Send reactions to: comment@businessdayonline.com

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Frank Aigbogun editor Anthony Osae-Brown DEPUTY EDITORS John Osadolor, Abuja Bill Okonedo NEWS EDITOR Patrick Atuanya EXECUTIVE DIRECTOR, OPERATIONS Fabian Akagha EXECUTIVE DIRECTOR, DIGITAL SERVICES Oghenevwoke Ighure GENERAL MANAGER, ADVERT Adeola Ajewole ADVERT MANAGER Ijeoma Ude FINANCE MANAGER Emeka Ifeanyi MANAGER, CONFERENCES & EVENTS Obiora Onyeaso SUBSCRIPTIONS MANAGER Patrick Ijegbai CIRCULATION MANAGER John Okpaire DIGITAL SALES MANAGER Linda Ochugbua GM, BUSINESS DEVELOPMENT (North)

Friday 09 November 2018

Nigeria’s economy is in dire state and this government must take the blame

e believe the favourite sport of this administration – blaming of the previous government for Nigeria’s economic malaise post 2015 – has run its course. The government must now take the blame for Nigeria’s deteriorating economy and economic conditions in the country. True, things were bad in 2015 when this administration came on board, but we also note how the president missed the opportunity to capitalise on the positivity of the market that welcomed his coming to power, prevaricated and delayed unnecessarily in forming a cabinet or an economic team that will provide direction for the economy and negotiate with eager investors. This, coupled with the attempt at market controls led to the flight of foreign capital which, in turn, led to severe forex scarcity, inflation, depreciation of the naira and the first economic recession in Nigeria in more than 25 years. Much worse is the president’s lack of understanding of the workings of the economy and his dangerous preference for the dated ideology of state-

controlled economy and a statecentric policy process. This can be seen in government’s retention of subsidy on petrol – which costs the country billions of dollars – the refusal to approve the privitasation of the nation’s dilapidated and perpetually non-functional refineries, the mopping up of funds from banks and their concentration in the Central Bank even when the economy needs revamping, and the attempt to set up a national carrier, national shipping line and other such relics of the 1970s and 1980s. Interestingly, all these are happening at a time government revenues are rapidly declining. The result is that nothing gets done and debts keep piling as a result of government borrowing to fulfil its most basic responsibilities. The least the president should have done was to open up the economy, abandon his utter disdain for the private sector and private capital and aggressively pursue new investments to create jobs and expand wealth generation for the people. This refusal to allow reforms and recognise the private sector as a worthy partner in development has cost and continues to cost the nation dearly in virtually all sectors of the economy. Three

examples will suffice. In the power sector, the president could have consolidated on the gains made by the privatisation of the industry by removing the arbitrary cap on tariffs, encourage gas companies to make the necessary investments needed to end the gas shortages with smart regulation, all of which will lead to higher power generation and availability to power economic activities. But no; despite its privatisation, the power sector is being bugged down by government over-regulation and tariff caps that discourages investment and continues to keep Nigerians in darkness. On roads, it was clear all along the government does not have the resources to fix all the roads in the country. The smartest thing to do on coming to power three years ago was to have identified key road networks across the country and build or fix them through concession. That would have ensured important roads in the country are all built with no cost to the government. But the government continues to discountenance the option of concessioning the roads while still being unable to do anything about them due to paucity of funds. The result is that most of the

roads in the country are impassable and are at worst death traps that continue to claim the lives of hardworking and hapless citizens who have no option of flying like the president and his retinue of government officials. Another key area that has continued to defy solution is the chaos at Apapa, which is suffering from the total lack of personal attention of a president who does not understand the importance of Apapa in Nigeria’s economic puzzle. The vice president has undertaken three helicopter shuttles over Apapa and each time has issued a raft of instructions to clear the roads. But, as usual, the problem remains and continues to worsen by the day. A serious president will personally supervise a 6-month rehabilitation of rail links to Apapa, which will mean that trucks do not have to come to a closed locale like Apapa if containers can be moved by rail to a remote place like Ogere where trucks can freely redistribute them. It is unacceptable or even criminal for the government to continue to shift the blame for the dire state of the economy. It must fully accept responsibility for all the missed opportunities to reposition the country for growth and development.

Bashir Ibrahim Hassan

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

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Friday 09 November 2018

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Tips for diaspora entrepreneurs to make money in Africa STEPHEN ONYEKWELU

or diaspora entrepreneurs, it is a little tricky transposing business ideas into profitably business enterprises in Africa and here is what you need to know to succeed, inspired by africajumpstart.com In a Podcast of how a Nigerian woman, Ijeoma who grew up in the United States of America failed pathetically with her business enterprise loads of lessons could be distilled. The Podcast was published on a platform owned by a NigerianAmerican entrepreneur, Ifeoma Okparaeke, a member of Africa Business Academy, who recently returned to Nigeria. The story was one of financial loss, emotional struggle, and utter disappointment by someone who wanted to build a business in Africa. This was sad but not shocking. Most of the struggles of Ijeoma and others in a similar position are avoidable. Ijeoma’s story play up typical Diaspora mistakes and she did eventually recognise some of them on her own, acknowledging that it was not really Nigeria’s fault, but mostly her own. But sadly this was in retrospect and only after she had lost everything; including her precious energy and motivation, stating she had no desire to go back to Nigeria and that she would stay in the US. Here is a snippet of her story. Ijeoma left the U.S. in 2013. She followed a tip by her older sister in Nigeria that money was to be made selling Western clothing. She spent all her savings to buy stock, ship it to Nigeria, lease a property for one or two years, work on the interior, organise a great opening party, and then started her boutique in Enugu, Nigeria. Two days later she received a notice out of the blue…two months later the building was demolished by bulldozers. Reason: There was a plan to widen the road. Ijeoma lost her life savings and her dream. And during this time of desperation she felt she was also let down by her connections and acquaintances in Nigeria, forcing

here to return to the USA. While Ijeoma recognised a few of her mistakes in retrospect it is important to know about some of the typical mistakes she made, so you are aware of them and avoid them. Africajumpstart.com is organising an Africa Business BootCamp 2017 training in the US and United Kingdom which will teach you the exact step-by-step success strategies to use instead. Here are some typical mistakes and how to avoid them. Making emotional business decisions Ijeoma chose Nigeria, simply because it was home. But she did not really inform herself about the business climate and risks in her target market. As a result she overestimated opportunity and underestimated risk. Further, she followed the advice given by her sister who lived in Nigeria and trusted that her sister would know since she was on the ground. But her sister was a professor! She had no business knowledge or experience and she was not an experienced player in the industry they chose. She was simply another African woman with a dream. In the Diaspora we are very prone to making such ‘emotional’ decisions when we engage in business in Africa and sadly, it is a re-ocurring pattern and a recipe for failure. Realise Africa is a high risk market Yes, opportunity in Nigeria is absolutely huge. But fact is also that Nigeria is a high risk market. It falls under the category of high risk/ high opportunity market and that increases your failure rate significantly as a new comer from abroad. There are many ways to mitigate those risks in Nigeria but another option and strategy could also have been to get started in one of Africa’s low risk/ high opportunity markets, because they exist! You can always expand into a higher risk market later if you wish, once your cash flow is secured and you have a much better understanding of your business. Your industry of choice

L-R: Folawe Omikunle, Chief Executive Officer, Teach For Nigeria; Ademola Tayo, President/Vice Chancellor, Babcock University; Folorunso Akande, VP Financial Administration, Professor Johnson Egwakhe, Director, Babcock Centre for Executive Development; Babcock University; at the partnership agreement signing, which took place in Babcock University recently.

might not be on a clear upward trend There are industries in each African market that are on a clear upward trajectory. So much so that you could basically jump on them and ride the trend. ‘The import of clothing’ is certainly not among that. While it can be lucrative, fact is that African governments are very busy cutting down on imports making them more difficult and expensive. In fact, East African Community member states have just recently (in 2016) announced a ban on all imported second hand clothing, which Rwanda has already enforced. This meant that many importers were suddenly out of business. African manufacturing or exports (for example, just to name a couple) not imports are on a clear upward trend offering you generally a much more sustainable business model for Africa. Tapping right into a high industry aspect within a high risk market Ijeoma needed a constant address of a property for her boutique to be successful. The property

Pukka Logistics empowers entrepreneurs’ through effective business management ANGEL JAMES

ukka Logistics and Support service Limited is empowering, equipping and supporting foreign investors, entrepreneurs and business oriented persons with requisite skill set to start and run businesses in Nigeria. Pukka logistics takes its clients through all the start-up processes including company formation, business permit, work permit, residence permits and temporary work permits, office space and set up, human resources and other support services in Africa’s biggest economy, thereby making it easier for

companies and expatriates coming in for business, and ensure that everything they want to do is in line with business practice in Nigeria. Beulah Olabunmi Akingbelu, chief executive officer of pukka logistics said that its clients include Nigeria and top premiums, Nigerians living in Diaspora, foreign companies, she stated that when expatriates comes into the country they handle their visa on arrival “Nigeria has a good population that attracts foreign investment, regardless of the economic situation of the company, investors are still willing to come, Nigeria is a goldmine we have so

many untapped resources, all these people see this and possess that willingness to come and also expand, the state of the economy hasn’t stopped anything.” Pukka’s team of professionals provide innovative solutions and support, helping clients to manage the flow of goods and information and other resources including energy and people from point of origin to point of consumption Pukka logistics which marked its 10th year anniversary at the oriental hotel on the 21st of October has gotten referral from different companies across the country due to its effective services rendered to clients.

industry however is a higher risk industry and you will always be very much depending on licences, contracts, permits, planning decisions from third parties including government. This can cause an acute risk potential in high risk markets such as Nigeria where red tape, corruption, and lack of transparency and accountability is given. It does not necessarily mean to give up on your plan, but to approach it with diligence. Look at this venture: Chris Folayan, the CEO of the now hugely successful Mall for Africa who is also a Nigerian – American and who also wanted to tap into the demand for Western clothing in Nigeria has his main store online and his main warehouse in the US and is now shipping the items into Nigeria via mail order. This means

the risk factors above are not really affecting him that much, yet he uses warehousing, he is more flexible and can easily divert his business model to another African market. Research your target group to understand their pain points Ijeoma just assumed that what she offered is what the market wanted, and how she offered it (boutique) is the way how the market wanted it. She dived in without understanding how her business model would meet the requirements of her local market and her ideal customer. Africa is full of problems, needs, and demands, and yes, this is precisely why it presents a huge pool of opportunity.

Slum2School commissions enterprise development centre, enrols 510 children

lum2school a non-profit organisation providing education to children living in slums and remote communities across Africa has again enrolled 510 children across 11 communities into schools and commissioned an enterprise development centre for beneficiaries between the ages of 9-24 where they get to learn a skill of their choice on how to set up and run small businesses. According to Modupe Adeyeso Olateju Managing director, Education Partnership Centre board member Slum2School Africa who represented the founder during an interview session stated that Slum2School has been in existence for several years now in Nigeria. “We really have to commend the work of the founder of slum2school Otto Orondaam that has worked with schools just supporting children first in the Makoko area and now in 18 communities across Nigeria including in Borno State. I am very keen that in recent years slum to school has received incredible amount of support both from the government and private sector particularly from the corporate sector in Nigeria and

touched the lives of over 32000.” Modupe stated that Slum to school provides educational scholarships, creates learning spaces and provide other psychological support for disadvantaged and vulnerable children in slums and indigent communities. In a press release made available to reporters, it was noted that some of these enrolled children are teenagers who have never been to school but still hoped to be people who would cross the bridge somehow and impact their communities through what they are passionate about. The non-governmental organisation (NGO) founded in 2012 recognized that there are severe shortcomings in the educational sector Africa and in this area seeks to improve the lives of Africa’s seek to improve the lives of Africa’s most precious resource, through its partnership with various socially responsible organizations and individuals it has provided various educational and psychological support to over thirty two thousand children across Nigeria and scholarships to over 1100 children into primary schools, secondary schools and universities.

Friday 09 November 2018

BUSINESS DAY

CityFile Flood: IDPs camps closed in Anambra

You Can’t Cheat nature: Water Hawkers having a nap after the hard days work in Lagos. Pic by Olawale Amoo

Waste: LAHA to review environmental laws ... as heaps of refuse still litter streets of Lagos JOSHUA BASSEY

he fate of Visionscape Sanitation Solutions Limited, the utility company popularised by the Akinwunmi Ambode-led administration, remains uncertain, as the Lagos State House of Assembly (LAHA) is set to review the state’s environmental laws part of which gives backing to the company’s operation. The review of the laws is coming as heaps of refuse continue to litter different parts of the state metropolis in spite of the recent directive by the House to Private Sector Participation (PSP) partners earlier barred by the outgoing government of Ambode from involvement in domestic waste collection in the state. Mudashiru Obasa, speaker of the state House of Assembly has consistently said that the House does not reckon with Visionscape. It would be recalled that the House of Assembly penultimate week directed the PSP operators to resume waste collection in the state. Obasa, at a three-day retreat of the Lagos legislators which held in Abeokuta, Ogun State, last week, to review the environmental law and nine other laws, said the lawmakers did not recognise Visionscape. Although Obasa admitted there were sections of the environmental law that allows the

executive arm to enter into Public-Private Partnership (PPP), he nevertheless insisted that in such instance, the executive needed to revert to the house for approval, which the current executive, according him, did not do. “We have said on the floor of the house that no money of the state must be paid to Visionscape. I repeated it recently because the company is not known to us, and we are not aware of it,” said Obasa. He affirmed that the House was committed to moving the state forward with realistic laws. “To move Lagos State forward there is the need for us to put in place laws that are enduring and in conformity to the interest of those who put us here. “Wemustrestructurethem(selectedlaws)and introduce new laws where applicable. We need lawsthatcansatisfytheinterestofourconstituents. “In our parliamentary business, we need to pick laws that we have passed and see areas we need to tinker with so that we continue to do what we were elected for,” he said. “The fact that we have problems with the implementation of the law does not mean that the law is not good. We are here because people raised eyebrows over some aspects, and we want to see how we can amend them. “We have brought in people, who have served as commissioners, as insiders, to tell us

what is wrong with the laws and what we need to do. We will continue to review our laws. It is by going through them regularly that we will prepare our state for a better law. Even if a law was passed yesterday, we can come around to review it today,” Obasa said. Meanwhile, the battle to rid Nigeria’s former capital city of refuse is far from being won, as heaps still litter the streets and highways. Checks show that many street corners, roundabouts, roads and inner communities across the state are still home to menacing waste due to low turn-around time by waste trucks deployed by the waste managers. Juliet Abiagam, a resident of Amukoko, particularly pointed to the stretch of Alaba OroAmukoko-Ijora road as a huge refuse dumpsite. “There is no day you come around here you won’t see heaps of decomposed refuse. The problem is that the waste managers don’t come regularly,” said Abiagam. Ibrahim Jimoh, a resident of Ikotun area of the state, also complained about the Council Round-about linking Idimu and Liasu, saying “there has been no improvement there. It is an eyesore that Lagos, Nigeria’s centre of commerce has become what it is today.” With its population estimated at over 21 million people, Lagos is said to be currently generating about 13,000 metric tons of waste daily.

Police arrest ex-banker for stealingN14m from ATM ... I did it because I was unjustly sacked, says suspect

he police have arrested one Emmanuel Onuma, 34, for allegedly stealing N14 million from a new generation bank’s Automated Teller Machine (ATM) lobby in Abuja. Olumese Valentine, an Assistant Commissioner of police (ACP) in charge of operations in the command, who addressed newsmen on the development, said that the suspect was arrested on November 1 by operatives attached to the Garki division of the command. Valentine told journalists on Wednesday that the suspect broke into the ATM lobby of the bank located in Garki on October 19 at about 12 midnight and stole the money. “The suspect, who was an employee of the

bank before he was sacked in August this year for fraudulentactivities,confessedthatheactedalone. “According to him, some of the money he stole from the bank were converted to foreign currency 33,000 dollars at Abuja and Kaduna for ease of movement. “Upon his arrest, the cash sum of $28,000, N1,650,120 and nine pieces of Ghana ceddis and other exhibits were recovered from him, including one new SIM card and AZMAN flight tickets,”he said. Onuma, however, told newsmen that he worked with the bank before he was unjustly dismissed in August. He said he stole the money because he was not paid anything after his dismissal, in spite of

the number of years he worked with the bank. “There is no justification for doing what I did but I did it because they didn’t pay me after eleven years of service,” he said. In a related development, the FCT command also arrested 14 suspects for armed robbery, murder, motorcycle snatching and other crimes. Valentine said that among the suspects arrested was Ilyasu Omika, 22 of Tunga Maje, who disguised as a lady at a brothel in Mpape and lured men. “The suspect, who disguised as a lady to lure men at nightclubs for amorous relationships, was arrested after his supposed client raised alarm upon discovery that he was actually a man and not a woman,” he said.

rinzechukwu Awogu, transition chairman, Ogbaru local government area of Anambra State, says the three Internally Displaced Persons (IDPs) camps for flood victims in the council have been closed. Arinze said the three IDPs centres in Iyiowa, Odekpe and Atani and seven other cluster centres in the remote areas of the council had become virtually empty as the flood had receded. “The water has really receded and the victims almost gone back to their homes coupled with fact that they were not getting enough assistance in the camp. “I closed down the camps last Sunday because National Emergency management Authority (NEMA) was supposed to take care of their stay but they were not forthcoming. “The state government took over the responsibility of taking care of them at the various camps, so now that the water have receded, they decided to return to their homes,” he said. Awogu appealed to the federal government to come to the aid of the affected people by helping them have easy integration into the society. He lamented the hardship of the displaced people including those whose homes collapsed adding that there were no more donations to ameliorate their conditions. “We expect the federal government to see to their reintegration, rebuild their homes and restore their livelihood, because the situation is still biting hard. “They are still in the trauma, you see some of them going to the camps about that they used to get meals in the sheer hope that something may there for them to eat. “The donations have all seized, nothing is coming anymore; we hope the federal government send more relief materials and cash help cushion the pains of these people,” he said.

6 suspects nabbed over death of Kaduna monarch

he State Security Services (SSS) has arrested six suspected kidnappers and killers of Maiwada Galadima, the paramount ruler of Adara Chiefdom in Kaduna State. Mahmud Ningi, the director of the command, paraded the suspects before newsmen on Wednesday in Kaduna. According to Ningi, on October 19, a gang of armed hoodlums blocked the road near Idon village in Kajuru local government area and robbed commuters. “Unfortunately during the operation, the convoy of the late monarch ran into the hoodlums who subsequently abducted him, his wife Victoria, and driver, Timothy Katari. “The hoodlums also killed the police orderly, Isua Clement, and one palace guard Amos Zamani,” he said. He also recounted that three days later on October 21, the wife of the traditional ruler was released by the kidnappers, presumably because of her deteriorating health condition. “Subsequently, the kidnappers contacted the family by getting numbers from the monarch’s wife’s phone which was confiscated by the abductors and demanded for N100 million as ransom. “In spite of the intense negotiations, five days later, on October 26, the royal father was killed by the abductors after receiving N6.850 million from the family,” he said. The director said the service had been keeping track of the activities of the criminals during the negotiation but could not make arrests as it had to consider the safety of the victims. He also disclosed that immediately after the monarch’s body was discovered, the service tracked down and arrested six members of the syndicate at different locations across the state. “During the preliminary interrogation, they made confessional statements about their involvement in the crime. He identified the six suspects as Adamu Sani, 36, who was arrested in Rigasa, Igabi local government area, and the mastermind of the operation, Adam Said, 25, a marked Boko Haram member, arrested at Soba local government area.

Friday 09 November 2018

BUSINESS

COMPANIES & MARKETS

DAY

Unity Bank to sign MoU with Asian infrastructure finance institution for capital

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

WAPIC records N1.38bn underwriting profit in 9-months MODESTUS ANAESORONYE

APIC Insurance Plc, the Group, a multi-line insurance company has announced its unaudited financial results for the period ended 30th September, 2018, showing Gross Written Premium of N10.1 billion, a growth of 29 percent compared to same period in 2017. Wapic yesterday at 2pm Nigerian time held a teleconference call for investors and analysts, with its senior management to announce the unaudited financial results for the period ended September 30th, 2018. And as usual, there was opportunity at the end of the call for management to take questions from investors and analysts. According to the result, the Group made an underwriting profit of N1.38 billion, a 7 percent growth from the prior period’s position, while profit before Tax (PBT) declined by 50 percent to close at N475 million, negatively impacted by the drop in investment and other incomes, and the growth in net claims expenses for the period. For the year to date, the

Group paid N2.76 billion gross claims, a 21 percent increase in claims payout compared to 2017. Gross claims ratio decreased to 27 percent as at September 18 against 29 percent in the same period in 2017, driven by improved year-on-year top line performance . The Company also got a AM Best financial strength rating (FSR): of C++ and Issuer Credit Rating (ICR): of b+, showing increased strength in capabilities to meet customer obligations. Its subsidiaries continue to increase their value addition to the Group, with Wapic Life Assurance Ltd recording an 8 percent year-on-year increase in gross written premium to N1.5 billion from N1.4 billion in prior year, while gross claims paid increased by 18 percent to N836 m in Sept 2018, compared to N707 million in the corresponding period of 2017. The Ghanaian subsidiary , Wapic Insurance Ghana Ltd grew its GWP position by 25 percent YoY to N1.39 billion compared to the same period in 2017. Wapic Ghana continued with its impressive performance stead to record an underwriting profit of N287million representing a 57 percent increase from September 2017.

No-Slips offers insight on how slippery floors can cause disability, death CHUKA UROKO

n many occasions, domestic incidents like fall from bath-tubs, fire outbreakS, fall on staircase, etc have caused a lot of damage to Nigerians and No-Slips Limited attributes these to slip and fall accidents. No-Slips, a relatively young company specialized in domestic and office accidents prevention with Sure-Step solution, says that as trivial and simple as slip and fall accidents sound, injuries sustained most times can lead to permanent disability and death. “Everyone is at risk of experiencing slip and fall accidents especially children, the elderly and the handicapped and a fall can occur anywhere including homes, offices, factories, churches, shopping malls, restaurants, swimming pool areas, bathtubs etc. as a result of wet and slippery floors”, explained Charles Igbinidu, the managing director of No-Slips Limited. Igbinidu noted that many companies expose their staff to permanent injury and death when their floors are left unsafe, pointing out that these companies resort to paying huge sums of money as hospital bill and compensation

after irreversible harm has been done. “So many Nigerians have lost their loved ones to the cold hands of death because of a simple slip and fall accident while some companies have lost efficient workers as a result of this accident which is preventable; the dangers of slip and fall accident is real and has been experienced in many homes, offices and public places”, he stressed. Like any other accident, slip and fall accidents can happen in a split second, but they can leave a trail of destruction in their wake if the injuries sustained are serious, causing severe damage like traumatic brain injury, neck and spinal cord damage, hip and pelvic fractures, disfigurement due to facial and dental injuries etc. This is why people, whether at home or in offices, should prevent emotional and financial stress by taking proactive steps to ensure that their floors are safe at all times. No Slips offers preventive measures and in the past few years of its operation in Nigeria, the demand for their floor treatment services have increased tremendously, especially from corporate organisations who hold the welfare of their staff in high esteem.

L-R: Saheed Egbeyemi, deputy managing director, Hogg Robinson Nigeria; John Alabi, managing director, AFN Insurance Brokers; Ekeoma Ezeibe, managing director, Crystal Trust Insurance Brokers; Eddie Efekoha, MD/CEO, Consolidated Hallmark Insurance Plc.; Sola Tinubu, MD, SCIB Nigeria, and Badejo Onaduja, MD, RTS Global Insurance Brokers, during the Consolidated Hallmark Insurance Plc brokers interactive session on Emerging InsurTech Trends in Lagos.

The subsidiary made a PBT of N24 million, a positive improvement from the loss position of N208 million recorded in the prior period. Commenting on the result yesterday at the Company’s headquarters in Lagos, Yinka Adekoya, managing director

WAPIC Insurance Plc., said: “Our nine months’ financial performance is reflective of the focused implementation of our growth objectives across all business lines. The group reported a commendable N10.1 billion in gross written premiums for the period, a 29

Firstbank, FBNQuest Merchant Bank promotes financial literacy SEYI JOHN SALAU

n line with global practice and the mandate by the Central Bank of Nigeria (CBN) to all banks in the country to commemorate the World Savings Day, First Bank of Nigeria Limited and FBNQuest Merchant Bank, both subsidiaries of FBNHoldings, joined the rest of the world on 31 October to mark the 2018 World Savings Day themed “what do you wish for?”. The six geo-political zones of the country were covered with visits to 30 secondary schools and more than 1000 students imparted with knowledge of financial literacy nuggets. The World Savings Day is in line with FirstBank’s FutureFirst programme, specially designed to equip students with the knowledge of money management, early entrepreneurship skills, and financial independence whilst stimulating in them savings culture at an early age. Commemorating the World Savings Day is consistent with the Bank’s financial literacy initiatives. Also, volunteers from FBNQuest Merchant Bank went further to cover and highlight

how students can take advantage of investment opportunities in fixed deposits and Mutual Funds from a young age, cultivating the habit of putting money away to meet medium to long term financial goals. According to the official website of World Savings Day, “World Savings Day or World Thrift Day was established to inform people all around the world about the idea of saving their money in a bank rather than keeping it under their mattress” which is akin to FirstBank’s commitment to encouraging its key stakeholders, customers, to imbibe savings culture whilst having their children also carried along on the essence of savings through its youth focused products, KidsFirsts (0 – 12 years) and MeFirst (13 – 17 years) carefully designed to meet the financial targets of the given demographics. These accounts ensure the accounts holders acquire the rudiments of banking and financial literacy as they grow into adulthood and they both come with exciting packages to support the financial journey of the children, enabling them learn money management from an early age.

percent increase from the prior year’s position and significantly outperforming industry averages. Underwriting profit also followed in the same stead at a 7 percent year-on-year increase to N1.4 billion from N1.3 billion in 2017. This is indicative of the disciplined execution of our

growth strategy, Adekoya said. “Our ongoing digitization efforts and first-in-class customer experience offering will open up new opportunities which we believe will ensure the continued creation of sustainable value to all our stakeholders”.

PWC holds annual walks for charity ENDURANCE OKAFOR

wC Nigeria Staff and Alumni held the second edition of their annual Walk for Charity recently. The walk tagged “5for5” covered a distance of five kilometres and was aimed at raising funds for five selected charities. As early as 6.30am, staff and alumni gathered at the take-off point, adjourning the firm’s head office in Victoria Island with the Deputy Country Senior Partner, Tola Ogundipe leading the contingent, which included many of the firm’s partners, staff, alumni as well as the staff andinmates of the selected benefiting charities. In his address after the Walk, Pedro Omontuemhen, chief operating partner, PwC Nigeria said “following the success and impact of the first edition last year, we decided to make the walk an annual event with a new set of five charities to benefit from the initiative this year. The nomination was done by our staff who alongside our alumni and partners, made voluntary donations to raise the funds for the five

charities. This is one of the ways we show care and impact our community while being true to our purpose of building trust in society and solving important problems.” In her speech prior to the walk, Obioma Ubah, Partner and Head of Corporate Responsibility, PwC Nigeria noted that the walk was a collaborative effort which provided an opportunity for staff and partners to network with the firm’s alumni, while promoting healthy living and give back to the community. She gave the list of this year’s beneficiaries to include Shelter for Abused Women and Children, Lady Atinuke Memorial Home, Street Child Care and Welfare Initiative, the National Cancer Prevention Programme and Down Syndrome Foundation Nigeria. Each of the selected charity received a donation of one million naira from the firm. The walk, which progressed in a carnival like manner with music and dancing featured dance aerobics, physical exercises and other entertaining activities.

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COMPANIES & MARKETS

Unity Bank to sign MoU with Asian infrastructure finance institution for capital HOPE MOSES-ASHIKE

nity Bank plc has disclosed plans to sign a memorandum of understanding (MoU) with Asian second largest infrastructure finance institution and other parties for capital. One of Nigeria’s tier two banks could not disclose the amount to be invested and the time of signing the agreement. “We are talking to different partners, we are still in discussions, we are rounding up. We are concluding an MoU with some parties that will narrow it down and they are credible, serious parties. We have done all the due diligence, we are just now at finalizing that engagement”, Tomi Somefun, managing director/CEO, told newsmen in Lagos. Improving on its information technology, the bank plans to do more work in terms of expanding its customer service, customer acquisition, as well to expand its platform among others. She said the Bank sold

off the remainder of its loan books that were bad to a private company. Before the sale of the Non-Performing Loans (NPLs), the business of the bank almost became debt recovery. “The bank was not set up for debt recovery but to do banking. We found that we were spending much time on debt recovery, chasing debt and legal cases. I am sure that Unity Bank has a fair share of cases in court on loan. We were bugged down and we decided to give it to experts”, Somefun said. N6 billion out of the N436 billion bad loans was initial consideration and the private sector recovery company is expected to recover the loans and whatever they realize, they will share with the bank, while the bank will concentrate on its strategies of growing the institution. The bank also wrote-off goodwill worth N16 billion accruing from legacy mergers, which consequently put it in negative N14 billion loss. Explaining the recent action by the Nigeria Stock Exchange (NSE), she said, “We wanted to put that loss and of course resultant

Republicom Group brings back Techplus breakfast on digital integration

echPlus, an annual initiative of Republicom Group, returns this year with a breakfast event scheduled to hold on Thursday, 15th of November, 2018 at the Zone Tech Park, Gbagada. Eniola Edun, TechPlus general manager, said “This is our fourth year curating memorable technology experiences as Africa’s premier technology platform. We started as an annual conference and exhibition, featuring gaming and master classes, and this year, we are deepening our vision with a focus on B2B solutions.” This new B2B focus informs the choice of a much smaller breakfast event for a specially curated list of executives , business leaders and C-suite professionals. The theme, “Digital: Value to Life” speaks to the central challenge facing corporate leaders today, which is how to best take advantage of new opportunities presented

by digital transformation. While CEOs do not necessarily have to become technology experts , they do need to develop a long-term and holistic understanding of technology capabilities, as this approach will inform expedient decision-making and inspire newer business models. The headline speaker at this year’s event is John Obaro, managing director/ CEO, System Specs. Other confirmed speakers include: Azuka Okeke, regional director, African Resource Centre for Health Supply Chains; Bankole Oloruntoba, chief executive officer, Nigeria/ WorldBank Climate Innovation Centre and Mohammed Mijindadi, managing director for Gas & Power Systems, General Electric. This convening of business leaders is expected to explore some of the major trends and effects of disruption and digital integration on business model transformation.

L-R: Adidjatou Zanouvi, managing director, African Guarantee Fund (AGF) West Africa; Yemisi Edun, executive director, finance, First City Monument Bank (FCMB); Bukola Smith, executive director, business development of the Bank, and Funmi Adedibu, company secretary/general counsel, during the signing of a loan portfolio guarantee agreement between FCMB and AGF in Lagos.

negative capital in perspective. We were waiting to conclude the MoU and make the announcement. So we were delaying, taking our time, because of the NPL sale, the CBN wanted to get sure of those account so it took a while before our

account was approved by the CBN. We finally got the approval in August. Unfortunately, the NSE decided to take that action despite the engagements and explanations. However, immediately we complied we were reinstated”.

Ace Supermarket opens outlet in Ilorin SIKIRAT SHEHU, Ilorin

ith the springing up of manufacturing companies and expansion of businesses in Kwara State, Ace Supermarket has opened a branch in Ilorin, the Kwara State capital. Speaking at the commissioning of the Supermarket, Yinka Afonja, chief executive officer of Ace Supermarket, declared that Ace has come to Ilorin to tap into the business potential, to generate employment, to add value to the economy and prove that indigenous players can also compete. The supermarket, according to him, currently operates in Ibadan, Abeokuta, Oshogbo, Oyo, Ile-Ife and Ogbomosho. “We have built our biggest branch in Ilorin by popular demand. We pledge we shall continue to operate as responsible institution to offer best services and value always,” Afonja said. While describing Kwara State as one of the best investment hub states in Nigeria after Lagos, Afonja, attributed his investment in the state to business oriented policies created by the governor.

He said, “I can say confidently that his administration`s excellent policies in urban renewal, peace and security, ease of doing business have made Ilorin an investors’ and tourist destination. “From my observation and going by my investment across major cities in Southwest Nigeria, I make bold to say that Ilorin is the fastest growing economy in the Southwest cities in Nigeria apart from Lagos.” Afonjaw, however, called on the state government to provide adequate power supply for businesses to continue to strive. Governor Abdulfatah Ahmed, who commissioned the supermarket, promised that his administration would not force investors to pay tax but rather, it will create conducive business environment that will enable them to pay without being forced. The governor praised the investor for bringing such a laudable business to the city which will create jobs for teeming youths in the state. The governor, however, called on business tycoons to bring their investments to the city, say in the state has created business sustainable policies that will enable business development.

She said the bank is doing a lot in the agricultural space, partnering with the CBN on anchor borrowers programme. The bank plans to focus more on the next generation of customers, mostly the young people, design-

ing products targeted at the youth. She was concerned that the bank spending a lot of money paying customers complaints which she said about 90 percent of such complaints were as a result of legacy mergers.

Godrej rewards consumers, drive employee dreams IFEOMA OKEKE

odrej Consumer Products, an emerging markets fast moving consumer goods (FMCG) leader is delighting its consumers with innovative, superior quality products at affordable prices. The company is also rewarding its employees by sponsoring their target life dreams. Godrej launched its LOUD (LIVE Out Ur Dream) initiative for its employees in Nigeria to help fulfil their dreams which they are most passionate about. On Friday, 26th October, Godrej rewarded five of its employees with 500,000 Naira each to support them to fulfil their dreams. The initiative received an enthusiastic response from employees where more than 190 employees applied, and at the end five were chosen. “We believe that passionate, rounded individuals with diverse interests make for better Godrejites. We understand that our team members

play multi-faceted roles, this is why we encourage them, not just to explore their whole selves, but also create an enabling space for them to do so” Chitwan Singh, chief executive officer , Godrej Nigeria said. Established in 1897, the Godrej Group has its roots in India’s Independence and Swadeshi movement. The founder, Ardeshir Godrej, lawyer-turned-serial entrepreneur failed with a few ventures, before he struck gold with a locks business. Today, the business enjoys the patronage of 1.1 billion consumers globally across consumer goods, real estate, appliances, agriculture and many other businesses. It is most important that besides the company’s strong financial performance and innovative, much-loved products, Godrej remain a good company. Approximately 23 per cent of the promoter holding in the Godrej Group is held in trusts that invest in the environment, health and education.

Friday 09 November 2018

COMPANIES & MARKETS Business Event

L-R: Albert Mabuyaku, corporate affairs manager, human relations & corporate services division; Imrane Barry, MD, both of Total Nigeria Plc; Amma Nnamene, MD/CEO, Nolmit Ventures, and Charles Eigbe, purchasing manager, Total Nigeria Plc during the companyâ&#x20AC;&#x2122;s 2018 suppliers forum in Lagos

L-R: Yanju Olamola, lead coach, The Source Coaching Limited; Lisa Wynn managing director, Corporate Potential, and Titi Akinsanya, president, International Coach Federation, Nigeria Chapter, at the Power of Coaching in leadership networking session in Lago

L-R: Dada Thomas, CEO, Frontier Oil Limited/president, Nigerian Gas Association, with James Odiase, Senior Manager, Commercial, Accugas Limited receiving the Nigerian Gas Association Special Recognition Award, Corporate Category presented to Accugas Limited at the recent 11th International Gas and Exhibition Conference 2018 held in Abuja.

L-R: Ayodeji Adewunmi, co-founder, Livestock247.com; Ibrahim Maigari, chief executive officer, Livestock247. com; Amina Oyagbola, chairman; Hakeem Fahm, commissioner for science and technology, Lagos State; Mohammed Ibrahim, chief operating officer, and Aloy Chife, CEO, SAANA Capital, during the inauguration of Livestock 247.com in Lagos.

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IMPACT INVESTING

Friday 09 November 2018

In Association With

Bridging the energy gap through impact investing in mini-grid solutions OMOBOLA ADU

lation costs. “There is a lot of investments currently being channelled to provide off-grid solutions to rural communities. Investors can easily make between N100-175/kWh providing energy to homes in communities which are not connected to the national grid. This compares to less than N30/kWh that Discos charge in urban areas that are connected to the grid. “The prospect to make money while still making an impact to society is what will make this opportunity so interesting to impact investors,” said Temitope Adeyemi-Kayode, a lecturer and researcher at Covenant University. One of the biggest energy impact investors in the world is Acumen. According to Jacqueline Novogratz, CEO and Founder, Acumen, “Acumen and a handful of other investors have helped start-ups bring energy access to 360 million people over the last decade.” Still there is a lot more to be done in funding rural electrification projects. United Nations states that 85 percent of the 1.2 billion people who lack access to electricity and 78 percent of the 2.8 billion who still rely on unsustainable solid biomass as

fuel for cooking and heating, live in rural areas. Globally, there are close to 4 million premature deaths from household air pollution every year, 70 to 80 percent of which are women and children. “Despite proven successes in offgrid energy in recent years, investors are unwilling to fund early-stage companies that are addressing the needs of these communities. These companies operate in fragile or underdeveloped markets, and require patience to develop sustainable business models that can operate in challenging places. “So, when we think about Acumen’s work today, and whether there is still a need for early-stage, patient capital in off-grid energy, the answer is clear: a resounding yes,” Novogratz said in a 2018 company report titled “Accelerating Energy Access: The Role of Patient Capital.” Experts say the main economic benefit to increasing energy access to all include increased studying time and reduced pollution. “Most households in rural communities create their own power through kerosene lanterns or small generators which cause a lot of pollution and are very expensive to maintain. Although, the cost

of providing alternative off-grid power solutions in these communities are quite expensive than the traditional on-grid solution, many households and small businesses in these communities spend way more money providing this power

‘ Investors should target un-served communities where there is booming commercial activity, that’s where they can make the most social impact and be more profitable

‘

bout two years ago, an off-grid community in Ogun State, Isalu, had to pay about N70 to a local vendor in order to charge their mobile devices due to the lack of access to electricity in the community. Kerosene lamps, candles, torchlights and firewood are their major sources of energy, while just a few people had generator sets. The Renewable Energy Research Cluster, Covenant University, empowered the community by providing a mobile solar-power generator in order to bridge the energy gap in charging their devices. Two years on, the Isalu community is still using the solar-power generator to charge their phones, but electricity access remains a huge challenge. The Isalu community is among the estimated 100 million people in Nigeria who remain without access to electricity. According to the Nigerian Economic Summit Group’s (NESG) MiniGrid Investment Report, up to 53 percent of Nigerians(or about 100m people) have no access to electricity and rural electrification rate in Nigeria is just about 36 percent. With majority of Nigerians in need of off-grid power solutions to provide energy for their households and businesses, energy analysts say this virgin market is becoming increasingly interesting for impact investors who have an opportunity to impact rural communities and also make high investment returns by providing basic mini-grid solutions to these communities. Currently, only 10 commercial mini-grids with a combined total capacity of 364 kW serve 2,000 households and 250 businesses in Nigeria. These mini-grids are located in 10 out of the 36 states in Nigeria (Sokoto, Niger, Abuja, Ogun, Edo, Rivers, Cross River, Plateau and Kaduna); thereby reflecting a huge market in other states especially the northern states where solar energy is readily available. The average daily sunshine in the northern areas is about 9 hours/day. The NESG estimates that investing in 10,000 mini-grids of 100 kW each is expected to satisfy 30 percent of the anticipated energy demand over 10 years. The expected return from this investment is about $8 billion per year with an additional $5 billion by 2020 as a result of the falling instal-

by themselves than it will cost to pay for the off-grid solution,” Adeyemi-Kayode added. This year about 5 mini-grids were commissioned in the country to provide steady electricity to power small businesses. “The best place to have power is in your workplace and not in your home if you they are not doing any income generating activity in your house. Investors should target unserved communities where there is booming commercial activity, that’s where they can make the most social impact and be more profitable”, Adeyemi-Kayode added. Impact investing in several minigrids to bridge the energy gap is also expected to benefit the government in terms of cutting down expenditure on energy goods. According to the National Bureau of Statistics (NBS), energy goods import rose to N98.17 million in Q2 2018 from N32.45 million in Q1 2018 representing an astonishing increase of about 202.6 percent. The excessive import bill on energy goods will not be sustainable in the long run as an increasing population will only induce higher demand for energy, therefore calling for more investments in alternative energy sources.

BUSINESS DAY

Friday 09 November 2018

AgriBusinessInsight Market Insights

Analysis

Commentaries

Experts/Industry Views

Commodities watch

In association with Policy Reviews

Send in Commentaries to caleb.ojewale@businessdayonline.com

Some reasons banks may hesitate in lending to an agribusiness CALEB OJEWALE Twiiter: @calebtinolu

griculture is risky, especially in Nigeria, but that is not the only reason banks and other financiers in the private equity and venture capital space find it difficult to fund the sector. Financial institutions, especially banks, are on one hand expressing willingness to lend to agriculture, but on the other (perhaps stronger) hand, are constrained by certain uncertainties. In recent time, interactions with Head of Agric finance desks, Chief Risk of Officers, and even some Bank CEOs have a few common denominators. These were reinforced last week at an Agric finance conference where experts highlighted the lack of record keeping, and fragmentation issues when smallholder farmers approach banks for finance. Aggregation of farmers in groups (such as cooperatives and out grower schemes), appears to be attractive to banks, as they are more confident of dealing with farmers in groups. It is also considered more cost-effective than dealing with individual small-

holder farmers. In the end, the banks have to make conscious efforts to be profitable with as minimal resources as possible. Kudzai Gumunyu, divisional head, Agricultural Business Head Finance, FCMB, in a panel discussion at the Agrifin conference, noted that if “a farmer for instance wants to borrow N200,000. The amount of effort that will be put in as banker, on a N200,000 facility is probably the same as putting effort in a N10million

facility. With a farmer borrowing N200,000, the interest I get from that loan, might not even be able to cover the monetary cost of going to look at their project.” “For smallholders to approach a bank, and borrow in their individual capacity, it is difficult,” said Gumunyu. Niyi Kumuyi, an Agribusiness finance relationship manager with Guaranty Trust Bank, corroborates this, noting, “As a bank we try to address more of groups. It is easier to monitor them that

way. It is easier than granting credit facilities to individuals.” A solution, which Gumunyi says FCMB has found suitable, is the out grower model. He explained the bank is now financing the value chain in an innovative way where it targets aggregators buying from farmers. These aggregators with finance are able to buy fertilisers in bulk, which is in turn provided to farmers. That also means the farmers have a guaranteed market, because that aggregator is financing them and will off

take the produce from them. Making the decision to lend to any one in agriculture, especially a farmer, has been described a tough call on account of the usual lack of records. Basic book keeping bankers say, will show the history of a farm operation; cash flow, progress, challenges, and making it possible to determine whether a prospective borrower is able to utilize the funds they seek, and more importantly, pay back. Years of experience in practicing agric matter less if well-kept records cannot be shown to justify the competencies being claimed. “Banks can’t give credit if they don’t see what you’ve been doing. You have to know that these monies are not ours, but for depositors,” said Kumuyi, who also explained that farmers need to develop a culture of bookkeeping as this makes it possible for banks to easily decide on loans, and even offer advisory services. Goddie Ibru, principal, G.M. Ibru & Co, and the Agrifin conference chairperson, who stated 60 percent of working Nigerians are engaged in agricultural production, noted that yet, as a destination for finance, agriculture is often looked upon as a poor

relation to other sectors of the economy. “This is a critical mistake, because of the central role that food security plays in the safety of our country. The significant returns and stable growth that agriculture provides to investors in other climes, is not being taken advantage of by the Nigerian financial sector, and that makes all of us poorer,” Ibru said. He further explained, as a country, there has been more of lip service in diversification of the Nigerian economy for too long. “For too long also, we in the private sector have left initiatives in Agriculture to the government – treating agricultural finance and investments like welfare, or rural development initiatives, instead of as a vital destination for private capital. Our ignoring this sector has come at a cost,” Ibru said. To achieve a compromise, it appears agribusinesses, especially smallholder farmers will need to harness the strength of group collaborations as a way of giving banks more confidence to lend. Also important is the need to ditch their informal mindsets and giving their business all the seriousness it requires through adequate book keeping.

silience and sustainability in that it has proven to be an astute agricultural finance risk management institution that has demonstrably sustained its operations, preserved and expanded its capital base, thus one can safely say that its future sustainability is strongly assured. Abdulhameed described insurance as a critical measure deployed by NIRSAL in managing and mitigating risk; an essential component of the agency’s five (5) pillars. The insurance facility it has developed is

expected to expand agricultural insurance products to reduce credit risk and increase lending across the agricultural value chain. NIRSAL’s goal, as stated in the document, is to expand insurance uptake by primary producers from 0.5 million to 3.8 million by 2026 and continually develop insurance products that will give financial institutions and Agricultural Value Chain players the comfort they need to lend to the agricultural sector while building the capacities of underwriters.

NIRSAL to unveil insurance product for agriculture ...targets coverage of 3.8mn primary producers by 2026

comprehensive insurance product for the agriculture sector is being prepared for public launch by the Nigeria Incentive-Based Risk Sharing System for A g r i c u l tu ra l L e n d i ng (NIRSAL), in addressing the peculiar risks associated with agriculture in Nigeria. NIRSAL in a document exclusively made available to BusinessDay, stated that with its technical partner, it has collaborated with NAICOM and NAIC (who led a consortium of four (4)

underwriters) to provide innovative and index based insurance to protect investments in the agricultural sector, particularly those of the smallholder farmers. With this, NIRSAL says it is currently about to unveil the fully developed proprietary NIRSAL Comprehensive Index Insurance product, the NCII In this respect, NIRSAL is leading a consortium of Agricultural Insurance underwriters to strategically transition their product focus from indemnity-based insurance to Area Yield

Index, Revenue Index, Hybrid Index and finally to the NIRSAL Comprehensive Index Insurance product. This suite of innovative products does not only provide compensation to farmers on the basis of cost incurred but also covers projected earnings. The document further notes that so far, a total of 24,666 farmers cultivating 20,062 hectares have used the NIRSAL Area Yield Insurance Index product to protect a total harvest value of N4.77 Billion. Insured farmers who suffered low

area yields during the 2017 Wet Season are according to NIRSAL, have also received appropriate compensation. Aliyu Abdulhameed, NIRSAL’s MD/CEO, also pointed out that even at the maximum cover of 75% credit-risk guarantee on agricultural loans, NIRSAL has maintained a crystallized guarantee ratio of about1%only, against the financial industry average ratio of 7.9%. More importantly, Abdulhameed stated that the business model of NIRSAL, as a corporation, has shown remarkable re-

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Nigeria recommits $150m to feed malnourished children, women

Expert advises Nigerians on lifestyle moderation to reduce

ANTHONIA OBOKOH

igeria has recommitted $150 million annually to the Global Financing Facility to improve the well being of malnourished women, children and adolescents. This is in association with world leaders looking to raise $1 billion for the GFF. Ten new investors, Burkina Faso, Côte d’Ivoire, Denmark, the European Commission, Germany, Japan, Laerdal Global Health, the Netherlands, Qatar and an anonymous donor have joined since the launch of the Global Financing Facility replenishment. They join existing funders of the Bill & Melinda Gates Foundation, Canada, MSD for Mothers, Norway, and the United Kingdom to fund the GFF to improve the health and nutrition of women, children and adolescents. US$1 billion pledged to the GFF Trust Fund in Oslo is expected to link to an additional US$7.5 billion in International Development Association (IDA)/International Bank for Reconstruction and Development (IBRD) resources for women, children and adolescents’ health and nutrition. Burkina Faso reaffirmed its commitment to allocating at least 15 percent of its annual budget to improve health; Côte d’Ivoire committed to increasing its health budget 15 percent annually; and Nigeria recommitted to investing US$150 million per year from its budget to sustainably finance health and nutrition of women, children and adolescents. US$1 billion will help the GFF partnership on the pathway toward expanding to as many as 50 countries with the greatest needs, to transform how health and nutrition are financed. Alongside other global health initiatives, this can contribute to saving and improving millions of lives by 2030. The GFF is a catalyst for health financing that is helping countries to transform how they invest in women, children and adolescents because for too long, their health and nutrition has been chronically and persistently de-prioritized and underfunded—resulting in the preventable deaths of 5 million women and children every year. The GFF helps countries in three specific ways: Developing an investment case and implementation plan prioritizing reproductive, maternal, newborn, child and adolescent health and nutrition and a strong primary health care system. Strengthening a country-led platform that aligns all key stakeholders

around a prioritized health and nutrition plan; and working with countries to mobilize and coordinate the financial resources needed to accelerate progress for the most vulnerable populations in the hardest-to-reach regions. “Today there is great hope that the world’s poorest countries can build healthy, vibrant futures where no woman, child or youth is left behind. The GFF partnership is effective and efficient—working with countries to develop the capacity to build and sustain the health systems their women and children need to survive and thrive,” Erna Solberg, Prime Minister of Norway and co-chair of the Sustainable Development Goals Advocates said. More than 2 billion people live in countries that spend less than $25 per capita on health. This is less than a third of what is needed for countries to provide basic, life-saving health services for their people. Through working with the GFF, Burkina Faso, Côte d’Ivoire, Nigeria and other GFF-supported countries have shown that it is possible for all countries to improve their future and invest in the most vulnerable people in their societies by increasing investment in health. It also demonstrates that generous, but relatively small financial contributions can—when aligned and spent catalytically and efficiently in support of national investment cases—have exponential impact by mobilizing additional financing and saving millions of lives. Burkina Faso reaffirmed its commitment to allocating at least 15 percent of its annual budget to improve health; Côte d’Ivoire committed to increasing its health budget 15 percent annually; and Nigeria recommitted to investing US$150 million per year from its budget to sustainably finance health and nutrition of women, children and adolescents. Increasing domestic resources is an integral focus of GFF-supported countries. “The GFF is about country-own-

ership—working with countries to set priorities, and drive domestic resource mobilization. These are the GFF’s great strengths. It makes the most compelling case for why countries must lead and put their own money on the table, and it reinforces the prioritization of resource allocation for basic social sectors, particularly the health sector,” Roch Marc Christian Kaboré, President of Burkina Faso said. Donors and countries today responded to an urgent need for countries to transform health financing in order to accelerate progress on universal health coverage and to contribute to the achievement of the Sustainable Development Goal (SDG) targets of ending preventable maternal, newborn, and child deaths and improving the health and nutrition of women, children and adolescents. “In 2018, all mothers should be able to protect their own health, and the health of their babies and children. But each day, 830 women die from complications related to pregnancy or childbirth and 450,000 children under five die needlessly every month,” said Kristalina Georgieva, CEO of the World Bank. “The GFF brings bold new thinking that aims to end this injustice through smart interventions and coordinated finance that can transform the health, wellbeing and life-chances of women, children and adolescents in developing countries.” Today the World Bank, which hosts the GFF, announced that in just the last three years, US$482 million in funding from the GFF Trust Fund had been linked to US$3.4 billion in funding from the World Bank’s International Development Association (IDA) and International Bank for Reconstruction and Development (IBRD). The US$1.005 billion pledged to the GFF Trust Fund in Oslo today is expected to link to an additional US$7.5 billion in IDA/IBRD resources for women, children and adolescents’ health and nutrition.

ANTHONIA OBOKOH he World Health Organisation (WHO) said stress has become a ‘World Wide Epidemic’, saying the effect of stress on our emotional and physical health can be devastating. Lifestyle change involves changing long –term habits, typically of eating or physical activity, and maintaining the new behaviour for months or years. In an interview with BusinessDay, Richard Adebayo, a consultant psychiatrist/clinical psychologist at Federal Neuropsychiatric Hospital Yaba, said that lifestyle control can reduce stress. “Understanding yourself is very important to know your limit, boundaries and when you reach the breaking point of stress and take things easy. You must be able to know when to delegate duties and when to say no to give yourself time to do little things like relaxation,” Adebayo said. Adebayo said stress is an everyday event that human beings pass through, it can be physical and emotional reactions due to excessive pressure or it can arise when we cannot cope with pressures. “Stress has both positive and negative aspect ; we need some measures of stress in life for every human achievement either as a push or motivation to accomplish our objectives, aims, plans and

goals,” he said. According to him, there is need for adequate direct measure to curtail stress management, awareness and people need to adopt better lifestyle choice to reduce threat to life expectancy. Life expectancy in Nigeria is 54.7, female 55.7 and the total life expectancy is 55.2 which give Nigeria a World Life Expectancy ranking of 178, according to the latest WHO data published in 2018. Adebayo further said that Lifestyle moderation is important to reduce stress, he emphasis on what you eat, drink and what to avoid. “You do not have to wait till diseases like diabetes, hypertension before getting adjusted. Avoid junks and key into natural fruits and food items with high fibres, vegetables, dieting, mediation, regular exercise, nutrition and especially finding time to rest. “Physical relaxation is very important, spending time to relax on weekends not working seven days a week, twenty four- seven, it is not proper.” “If you want to enjoy your life, you must also be able to do something about your lifestyle like making time for physical activity, the benefit of it is to make your mind refresh and also making time for the things you enjoy will go a long way to reduce stress. If you enjoy going to the cinema, meeting friends, allow yourself to do all this.” He said.

Synlab excites Bariga residents with doctors-on-air free medical outreach

ore than 2,000 residents of Bariga community in Lagos have been touched by one of the many corporate social responsibility activities of leading healthcare services provider, SYNLAB Nigeria. The free medical service event put together by Doctors-on-Air in partnership with Classic FM and Naija FM is part of activities the company has designed to give back to society. It saw SYNLAB and its partners provide a wide range of health care services such as dental care, eye screening, skin care, blood pressure checks, breast and cervical cancer screening, hepatitis screening, blood sugar checks, cardiology services, among others free to Bariga residents. Over the years, SYNLAB, formerly known as PathCare, has exhibited a penchant for high quality service delivery and commitment to the communities where it operates. An expansion exercise in the last three

years has seen the company serve more Nigerians. Speaking on the exercise, Pamela Jackson-Ajayi anchorof doctors on Air programme and Managing Director, SYNLAB, said that the free healthcare mission was for a humanitarian purpose. “On our programme, we preach prevention and early detection, propagating that people should go for screening, but there are some people who cannot afford it. We are conscious of this fact, “ Ajayi said. In response, Kolade Alabi chairman Bariga LCDA said: “So we thank all the organizer of this event and I am also impressed with the level of turn out from our people. It shows they take their health seriously.” Similar event was carried out at Ilupeju and WIMBIZ 17th Annual Conference recently where over 1,500 business women were given vouchers at a discounted price for general wellness check.

Absence of proper business structure bane of Nigeria’s healthcare sector ANTHONIA OBOKOH

igeria has ambition to put its estimated 190 million populations under the universal health coverage, a target that has eluded the nation but that is hardly the country’s only challenge. The health care workforce is facing a critical shortfall of health professionals over the next decade as the brain drain in the sector has reached alarming proportions. Patients are facing increasing wait times, limited access to providers, reduced time with caregivers, and decreased satisfaction.

Worse still, many of the private hospitals functioning are not sustainable as they lack the proper structure to run profitable healthcare businesses. “A better model for private healthcare delivery is the ‘Healthcare as a business’ model. In this model, the practice of medicine is just a component part of the healthcare delivery model,” said Richardson Ajayi, a gynaecologist and the executive vice chairman of Bridge Clinic. According to Ajayi, “In this model other professionals are embedded in the healthcare ecosystem: financiers, equipment

suppliers, diagnostic service providers, insurance providers, etc. This is better achieved when the business of healthcare is modelled as a partnership or as a limited liability company with proper governance and other non-medical shareholders. “The problem with Nigeria is that, we combine practicing medicine with the business of healthcare because nobody is looking at the business of healthcare. “If you decide to focus on the profession of medicine, focus on your core competence by being the best doctor and by outsources your complexity (operations). If

you want to focus on the business of healthcare, build an ecosystem that is sustainable and ranges beyond your skills and experience, and see yourself primarily as a business manager”, said Ajayi. Experts say the health care workforce is facing increased stress and instability, and a major restructure of the professionalism is needed to extend care to millions of Nigerians “In developed economies, we allow people who know about business to manage healthcare while doctors fit into the system to provide healthcare but that does not happen in Nigeria yet and until we start to

create separation where people who are managing healthcare are expert, then doctors can now be the best they can be. It is a conversation we need to have because it happens in all other developed countries and by having the conversation we can move in that direction. “We need to create primary and secondary healthcare chains, hospital groups, there are opportunities for consolidations because our healthcare in Nigeria is fragmented. The model will consolidate economy of scales and also get distribution by allowing more access to healthcare at lower cost,” added Ajayi.

Friday 09 November 2018

Ade Alakija

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

usiness travel usually refers to those going on short trips and usually (but not always so) involves staying in good standard accomodation. Good preparation for a business trip leads to less stress, is better for your health, and it is also a sign of an organised and alert mind. The businessperson who is able to think ahead and prepare well for a trip benefits both themselves and the company they represent positively. Allow yourself time to adjust on reaching your destination, especially if you are flying across time zones. If you travel frequently, it is advisable to have a regular checkup. Checking your weight, blood pressure and cholesterol levels is always good practice. Allow plenty of time to prepare Make a schedule of the intended trip. It helps to have a checklist in your scheduler of items needed for the trip. Start as early as possible. (Dont forget your toothbrush). With proper pre-travel planning, you will be mentally and pyschologically prepared to deal with

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kiti State government has assured immunization service providers and other health personnel that training on basic guide on routine immunization will be continuous rather than having it once in a year. The Permanent Secretary Ministry of Health, Ayotunde Omole gave this assurance in Ado Ekiti while declaring open a 5-day Training of Trainers Workshop on Basic Guide on Routine Immunization for service providers in Ekiti State. Omole, a medical doctor urged the health service providers in Ekiti to domesticate the knowledge acquired in the training by training those they oversee at the local government level to ensure a healthy State. Earlier in his welcome address, the Executive Secretary, State Primary Health Care Development Agency (PHCDA), Joshua Ileke, who said the training is meant to empower the service providers to ren-

HBL Team

The Travel Clinic

General advice to business travellers stresses of frequent travel. Have your Flight plans and all necessary details in writing (seperate from your phone organizer) eg hotel address and booking code, important phone numbers etc. Get information on the area you are visiting, for example Brazil were there are recurring outbreaks of Dengue fever which you can protect yourself from with the proper advice. Getting your visa early and awareness of local laws and culture is usually helpful. Plan to visit your family Doctor or Travel Clinic nearby to discuss your travel health needs. If vaccinations are compulsory for your destination, your vaccine card should be attached to your passport if possible so as not to loose it. (Rubber band or staple)

major cause of illness and care is especially important when eating out and in countries where local hygiene is poor but also be carefull in developed countries were you can also get diorrehea eg the Noroviruse (Winter Viruse). Certain spices or oils in food as well as alcohol can also lead to stomach upsets. You should consider taking an anti-diarrhoeal preparation with you.

Dealing with Fears Any fears you might have in regard to travel, at your destination, on route or with regards to loved ones being left behind ideally should be sorted out at home in a relaxed and calm environment.

Accidents Unfamiliar surroundings and alcohol consumption often result in accidents. Sharp objects and discarded glass on beaches can injure your feet. Take special care crossing roads and beware of sea currents when at the beach.

Loneliness Cultural differences, family problems at home or losing touch with head office can cause anxiety. Many of these difficulties can be overcome with experience and sympathetic support from family and friends. Personnel and occupational health departments should take this into account.

Jet Lag and Tiredness A recent study in the USA indicated that performance can be

Unsafe sex Casual sex and failure to use a condom with new partners, particu-

Stomach Upsets and Diarrhea These are very common. Contaminated food and water is a

EKSG begins training for immunisation officers Akinremi Feyisipo, Ibadan

BUSINESS DAY

der quality service that will improve the health of the beneficiaries, urged the people to visit the Health Care Centres whenever they needed their services. The PHCDA Executive Secretary stressed that the training would ensure an increase in routine immunization coverage from its current 66.6% to 85% by the end of this year. Ileke who expressed his satisfaction at the level of performance so far appreciated the efforts of other organizations that have collaborated with the state government in ensuring the prevention and elimination of childhood killer diseases in Ekiti State. He also urged the health officers to identify one PHC per INEC ward for upgrading to centres that will offer services on maternal, child health, immunization, Nutrition, HIV/ AIDs and family planning while at the same time appealing to the participants to take the training seriously and highlight what needed to be done to strengthen routine immunization in Ekiti State.

Sunburn This is possible for fair skinned Nigerians and is preventable. Limit your exposure and cover up especially aroud noon when the sun is at its greatest intensity. Suncream may be neccesary in some cases depending on activity.

lowered by as much as 20 percent when travelling across time zones. Rest before travel is necessary for optimum performance and limiting activities on arrival will help. These problems may be underestimated and affect business efficacy. Some medications exist that can aid you if necessary. Consult your Doctor. If on regular medication, such as diabetic drugs, watches should remain on home time until you are able to adjust your medication to local time. Exercise has been proven to improve productivity, so get active on arrival as soon as possible. If your need also take short naps. It will help refresh you.

larly with professional sex workers, puts you at risk of serious infections including HIV/AIDS. Culture Shock This is a very real problem even for short-term travellers. Family or social problems at home and psychological problems, including alcoholism make adapting to a new and different culture difficult. Maintaining contact with family and friends may also be complicated because time differences between continents may cause communication difficulties. A situation that is exciting and welcome to one person may be daunting to another. Problems encountered may include adjusting to a different climate, religious and cultural differences, changes in living standards and different social amenities. Other problems such as language differences, coming to terms with poverty and begging, and compulsory movement restrictions for safety or political reasons. Being patient rather than critical is helpfull.

To be continued next week Friday.

How does caffeine affect sleep?

he overall effects of caffeine can last throughout the day. The drug can linger in the body and may have subtle consequences, even after the noticeable effects have worn off. Caffeine can lead to sleep of a lesser quality and even disrupt sleep patterns, depending on a personâ&#x20AC;&#x2122;s sensitivity and how much they have consumed. Most adults can safely consume 200â&#x20AC;&#x201C;300 mg per day, and exceeding this amount can lead to sleep issues. What to do when too much caffeine disrupts sleep? If someone suspects that their caffeine intake is causing sleepless nights, they should lower their consumption until they determine the right limit. It may also help to practice relaxation techniques before bed, such as gentle yoga or breathing exercises. Caffeine can be a helpful stimulant, but excessive consumption can mask underlying sleep disorders. People who need coffee or tea to wake up every morning may be unwittingly compensating for sleep issues. Develop a regular sleep schedule by going to bed and waking up at around the same times each day. This can help the body to regulate itself, and reduce the need for stimulants like caffeine. Side effects of caffeine People will quickly realize when they have had too much

caffeine. Be aware of the following symptoms : nervousness, stomachache, diarrhoea, rapid or irregular heartbeat, increased rate of breathing, insomnia, feeling fidgety or restless, sweating, irritability and anxiety attacks. People with kidney or liver problems may find their health gets worse when they have caffeine. In some cases, caffeine can make fatigue worse. If someone is exhausted, they may benefit more from napping or practicing a relaxation technique before resuming activity. Like other drugs, it is possible to become dependent on caffeine, and going without it can lead to symptoms of withdrawal.

withdrawal. Symptoms include: general fatigue, crankiness or irritability, muscle pain, nausea or an upset stomach, lack of focus, headaches or migraines. These symptoms may resolve when a person consumes caffeine again. If a person is determined to stop, withdrawal symptoms often pass within a few days. When a person who regularly consumed high amounts of caffeine stops suddenly, they may experience more severe withdrawal symptoms. Rather than quitting abruptly, it may be better to gradually reduce caffeine intake until it can be eliminated without symptoms.

Symptoms of caffeine withdrawal People who stop consuming caffeine often complain of

Culled from Medical News Today.

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

BUSINESS DAY

FinTech News

Products Review

Technology Review

Personality Review

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Friday 09 November 2018

Company Review

Africa’s poor show at Web Summit shows why tech startups are struggling Stories by FRANK ELEANYA, Lisbon

n Lisbon, the capital of Portugal over 70,000 technology leaders, professionals, experts, investors, journalists, regulators and enthusiasts came from 159 countries to listen, dialogue, network and set new agendas for digital developments around the world. For some reason, while different governments from other continents saw it as an opportunity to inform the world of their technological advancements and attract foreign investments, African counterparts stayed at home. The exhibition space which officially opened on Tuesday had different governments from continents such as Asia, United Kingdom, Europe, North America and South America taking up booths to market their countries’ business cases and economic potential to the world. And these governments had good reason not to miss out on what has become the largest technology gathering in the world today. It was a stage of history making announcements and unveiling

new innovations. For instance, Tim BernersLee creator of the World Wide Web announced a new contract for the global web which aims at protecting individuals from online data and security violations and generally provide a safe place for everyone on the internet. Peter Smith, founder and CEO of Blockchain also announced a $125 million Stella giveaway to drive adoption of cryptocurrencies in the world. Many of the world’s successful companies were also present to showcase their latest innovations, the President of Samsung set a narrative on where his organisation believes technology was headed and what role it intends to play in that direction. Sadly, Africa’s big businesses not only failed to make center stage but were nowhere to be found at exhibition. In Nigeria where banks tout themselves as leaders of digital innovation, it was left to startups like Paystack and Paylater founded barely five years ago to fly the country’s flag. Why does attending Web Summit matter? Size and quality of the participants are not the only things that make the Web Summit a

big deal for any country. Why would South Korea, Singapore, Brazil that have booming economies and some of the world’s most valued companies like Apple, Google, Samsung, Amazon jostle for centre stage on this particular summit? It is the same reason discerning Nigerians were alarmed when former President Jonathan missed a speaking slot at an African Union summit on infrastructure in 2013. Summits like this one that bring together investors, industry leaders and the literary the market represents opportunities to market your nation and attract foreign investment.

While making a presentation at the Web Summit, Khadija Abu, Product Partnership lead at Paystack noted that only 1 per cent of Nigeria’ GDP comes from online payment. In 2017, out of $560 million technology startup investments that entered into Africa, Nigerian startups attracted $117 million. That investment has grown to more than $250 million with fintech accounting for majority of investments so far in 2018. Despite that may appear like growth for a tech space that is fairly nascent, it does not reflect the growth in mobile and internet penetration.

At 81 per cent mobile penetration, Nigeria is the largest in Africa with active mobile lines reaching over 144 million in 2017. Data from the Nigerian Communication Commission (NCC) also show that internet users climbed to 103 million in the second half of 2018. Khadija noted at the summit that startups’ ability to convince users to adopt online payments remains the biggest challenge. “1 per cent of Nigeria’s over N500 million GDP is online, so it is small,” Abu said. “The challenge is bringing more people to embrace payment online.” Their inability to convert

growing online users’ numbers into revenue and the difficulty in attracting investments has seen many of them close shop. The examples of startups leaving keep growing every year. Eliot Pence, founder of Insider PR the organizers of the SXSW Conference & Festivals told BusinessDay that African governments’ absence was also conspicuous during the event that bings together thousands music practitioners and lovers from all over the world. The South by Southwest (SXSW) Conference & Festivals is an event that celebrates the convergence of the interactive, film, and music industries. “Sad. Same for SXSW (Until we hosted a 2 day “Africa House” event last year),” Pence said. Government’s participation in big ticket events often show potential investors were the priority lies. In other words, the Web Summit could have been an opportunity for African governments to convince existing and potential investors that it does prioritize technology and it’s eager to contribute to its development on the continent. It is an indirect endorsement of startups efforts at building innovative products on the continent.

Blockchain boss targets global scale in biggest crypto giveaway

eter Smith, CEO of Blockchain one of the world’s biggest cryptocurrency wallets on Tuesday announced the biggest giveaway ever in a bid to increase adoption of cryptocurrencies on a global scale. Smith, who made the an-

nouncement at the Web Summit in Lisbon, said Blockchain and Stellar Development Foundation will distribute $125 million worth of Stellar Lumens (XLM) to all users of the Blockchain wallet. “At Blockchain, we are committed to putting our users first,”

Smith said. “Providing exclusive access to the next generation of cryptoassets allows new and existing users alike to test, try, trade, and transact with new, trusted cryptoassets in a safe and easy way. We’re empowering our users with private keys, which allow them to go beyond just stor-

ing their crypto to actually using them. In turn, we can help build a bigger and more engaged crypto community, and drive network effects that make ecosystem more useful and valuable for the many rather than the few.” Participants at the Web Summit – including this writer

- received an email confirming they have been shortlisted for a $25 worth of XLM giveaway. The distribution process, according to Smith, will take place over a period of several months, and the amount Stellar users will receive could vary based on geography. However, existing

Blockchain wallet holders will get priority in the distribution while the company reserves the right to modify the terms of the arrangement going forward.

“We believe that airdrops are central to creating a more inclusive digital economy,” said Jed McCaleb, creator of Stellar said in a statement.

“Giving away XLM for free is an invitation to communities to design the services they need. Our hope is to eventually have global citizens own and use

lumens, in both developing and developed economies. By working with Blockchain to increase the availability and active use of lumens on the network, leveraging their almost 30 million wallets, we will increase the network’s utility by many orders of magnitude.”

Friday 09 November 2018

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BUSINESS SOUTH-SOUTH

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COMPLETE COVERAGE OF SOUTH-SOUTH / SOUTH-EAST

AeAN trains small-scale agric farmers to access CBN’s N2bln AGSMEIS …but there are inherent challenges EFEGADIRIM MADU, Port Harcourt

gric Entrepreneurs Association – Nigeria (AeAN) has urged small-scale farmers in the country to join forces with them (AeAN) in order to access the N2billion Central Bank of Nigeria (CBN) Agribusiness, Small & Medium Enterprises Investment Scheme (AGSMEIS) to promote agribusiness and galvanise Nigeria’s agriculture into a thriving sector. Latest surveys show that agricultural sector’s contribution to Nigeria’s gross domestic product (GDP) has been on a southward trend. Recently the CBN floated N2billion to be given out as soft loans with 5%-7% interest to particularly small-scale farmers across the country. Disbursement of the fund known as Agribusiness Small & Medium Enterprises Investment Scheme (AGSMEIS) is through the deposit money banks (DMBs) supervised by the Bankers Committee as stakeholders and the Deposit Finance office of the CBN. The CBN accredited some Entrepreneurship Development Institutes (EDIs) to train, mentor, recommend and guarantee farmers to access the AGSMEIS loans. Small scale farmers can access up to N10 million from the fund. But findings show that there are inherent challenges with the system that tend to minimise its

success rate. It was discovered that there are gaps between the scheme and the farmers/ small businesses. For instance, majority of the farmers are extremely ignorant of existence of the fund; as most of them are illiterate and can hardly read and write, let alone come up with a business plan, which they are expected to present before accessing the loans. Many are equally unbanked or under-banked; while their farming is largely at subsistence level. Hence, they do not understand how to turn their farming into a viable business venture. Last week, the Agric Entrepreneurs Association-Nigeria (AeAN), which was one of the EDIs recently accredited by the CBN, trained hundreds of farmers and smallscale business people from states around the Niger Delta region, with Rivers making the largest number. They gathered for three days at the sprawling School-to-Land centre, Rumuodomanya, Port Harcourt, where they went through rigorous 13 specialised modules by partners and consultants – on how to take their ventures to business level. Dennis Epele, chairman, board of trustees and chief operating officer of AeAN told BusinessDay that they trained the farmers/small business people on ‘mindset reorientation, smart business scaling, business modelling (branding), writing bankable business plan

(under simplified business plan and business plan canvas) and strategies in succeeding (sort of idea-to-action). He acknowledged that funding gaps were wide, which severely challenge the success of the scheme. Accessing the AGSMEIS money only comes through a bankable business plan, which the farmers are hard-put to come up with. Epele, however, urged the CBN and the Federal Government, to

he Nigerian Export Promotion Council (NEPC) says it would ensure that up to 3,000 Nigerian business women benefit from the International Trade Centre (ITC) projects funded by the United Kingdom Department for International Development (DFID). The executive director and chief executive of NEPC, Olusegun Awolowo, in a keynote address at a sensitization workshop on SheTrades in the Commonwealth Projects (STCPs) held recently in Enugu, said, the projects (STCP) would be implemented by the ITC for two years. According to him, the projects were aimed at increasing the economic growth and job creation in commonwealth countries by enabling the increased participation of women-owned businesses in international trade. Awolowo, who was represented by NEPC regional coordinator, Rose Ekanem, said, that the countries that would be participating in the two-year program include Nigeria,

Ghana, Kenya and Bangladesh; and the coverage sectors are Agriculture, (shea-nut, spices and cashew), textiles and apparel, handicraft, and services. “You will recall that the launch of SheTrades initiatives in June 2016, and the subsequent launch of SheTrades in the Commonwealth projects in Nigeria early this year by the International Trade Centre, in collaboration with NEPC, was aimed at connecting 200,000 Nigeria women-owned businesses to the global market, as part of the broader UN-goal of connecting 3 million women to the market by 2021,” he said. The NEPC executive director/ chief executive noted that the Council was determined to join other countries by working together to boldly make women business enterprises significant contributors to the country’s economy and revenue. “Today, we are focusing on partnering on better integrating women into the economic fabric of Nigeria through connecting them to the global trade. Women are the backbone of practically all economies. But in Nigeria, I can safely say women are at the very heart

processing plants to process farm produce into finished or semifinished products – for the main reason of heavy post-harvest loss put at over N2.7 trillion, and more than 50% of farm produce. The farmers and small businesses that emerged from the AeAN enterprise investment training scheme would write their business plans, get profiled and wait for recommendation and guarantee by AeAN before accessing the CBN N2 billion AGSMEIS fund.

Participants at the AGSMEIS training by Agric Entrepreneurs Association-Nigerian (AeAN), Port Harcourt

NEPC to link 3,000 Nigerian business women to world market REGIS ANUKWUOJI, Enugu

step up the processes of access to funding. “The CBN and Federal Government can identify more EDIs (entrepreneurship development institutes) like us, AeAN. They should also help EDIs like us through funding, to carry out monitoring and evaluation (M&E) of how the farmers/ small businesses are implementing the AGSMEIS fund,” he said. The AeAN chief operating officer also called on the Federal Government and CBN to help procure

of the economic life of the country especially the informal economy,” he said. He said that the Nigerian government has done an impressive work over the years in empowering women, as it reflected in Nigeria’s national gender policy which focuses on women empowerment, and eliminates discriminatory practices that are hampering businesses. According to the African Development Bank (AfDB), Nigeria women supply approximately 70 per cent of agricultural labour, 50 per cent of animal husbandry related activities and 60 per cent of food processing; yet they have access to only 20 per cent of available agricultural resources. In her contribution, the head of department, Women In Export at NEPC Abuja, Leticia Onu challenged women from the South East to register with SheTrades initiatives and expose their business to the international market. She explained a lot of benefits they would be exposed to when registered. Over 300 women who are into various businesses from the five states of the south east participated.

Delta Govt building ultra-modern markets to tackle roadside trading MERCY ENOCH, Asaba

n its efforts to grow rural commerce and the state economy, Delta State Government has continued to construct markets, with the latest being the building and opening of Owa-Alero ultra-modern Market in Ika North/East Local Government Area of the state. The market is now open for business, and the roadside traders are expected to be the first set of people to benefit from the shop allocations. The ultra-modern market houses over 30 lockup stores and 300 open shops. It is equipped with borehole, toilets, a warehouse, conference hall, parking space, as well as cold-room to prevent wastage of perishable goods. Speaking at the official opening of the market, chairman of Ika North/ East LGA, Victor Ebonka disclosed that the state governor, Ifeanyi Okowa has given a marching order to immediately allocate the shops and open the market. “Sincerely, I do not know how we are going to thank the governor because the market is unprecedented. The beautiful market before us is called ultra-modern Market with global standard; and it is the first of its kind in Ika nation. This facility is a beauty to behold,” he explained. He described the governor as a good man who has the interest of the

people, especially the down trodden at heart and added that the essence of building the market was to prevent person from trading on road side. He said that traders at Owa-Alero Roundabout would be the first to benefit from the allocation of shops. The Governor had at the recent quarterly interactive session with journalists in the state, explained that the reason why his administration was involved in construction of markets was that markets grow rural commerce. He said the state built the markets despite the fact that it is the function of the local governments to do so. He said his administration was committed to the overall socio-economic development of the state and markets, especially in rural communities because of the vital roles they play in the development of the areas. “We are trying to assist our people through rural markets because that helps to grow commerce; and the local government councils that are directly in charge of markets may not be very strong financially. If we continue to leave them (building of markets) for the councils, that means we will be impacting very badly on the economy of the state” he said. “The Ozoro Market was a promise made and it is a huge market; The other is the Oghara Market which was in very bad shape. We are also building the market in Burutu town and others”, the governor briefed.

BUSINESS DAY

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LegalPerspectives

With

Friday 09 November 2018

Odunayo Oyasiji

What is the position of the law on unregistered land transfer instruments in Nigeria?

and is an important part of business. That is the reason why one of the things that is usually being measured by world bank’s ease of doing business is property registration. They look into “procedure, time and cost to transfer a property and the quality of the land administration system”. Sadly, Nigeria was ranked as number 179 of 190 countries with regards to property registration in the 2018 World Bank’s ease of doing business report. It shows how extremely difficult it is to register land or property in Nigeria. As earlier stated, land plays a major role in businesses. Without land, businesses cannot be established. Babatunde Fashola in 2015 while signing the Bill to consolidate all land related laws in Lagos state into law stated that “In our basic economics, land is a very important asset to capital formation… you can’t start a bank, you can’t start a business, you can’t farm; you can’t even extract crude oil without identifying a particular piece of land or oil well (embedded in land). So it’s the basics of capital formation, it’s the basics of prosperity; it’s the basics of economic well-

being and the basics for job”. The foregoing paints a perfect picture of the role land plays in our lives. What happens when the process of registering your interest in a landed property is difficult and extremely expensive? Many people end up not registering their title documents- deed of assignment etc. Also, the various state laws in Nigeria have provisions that makes unregistered land transfer instruments or documents to be inadmissible as evidence in the court. Therefore, the fate of someone with unregistered title documents

seems to have been sealed by the law should dispute arise with regards to the property. Nigerian courts on many occasions have upheld the provisions of the state laws rendering unregistered instruments inadmissible as evidence in court. However, a recent decision of the Supreme Court of Nigeria seems to have changed the position of things. The judgement was delivered on December 15, 2017 in the case of MR MOSES BENJAMIN & 2 ORS –V- MR ADOKIYE KALIO & ANOR (2018) 15 NWLR (PT. 1641). The fact of the foregoing

case is simple. The appellants are the claimants at the lower court. They claimed that the land in dispute is part of a larger land which belongs to them. They relied on customary evidence as the source of their ownership right. The respondents admitted the that the appellants have title to the land but that same had been sold to their own benefactors. They claimed that the parties subjected the dispute to customary arbitration and the decision was in their favour. The High Court and Court of Appeal gave judgement in favour of the respondents. On this basis the appellants appealed to the Supreme Court. In the process of determining the appeal, the Supreme Court examined Section 20 of Rivers State Land Instruments (Preparation and Registration Law). The section states that “No instrument shall be pleaded or given in evidence in any court as affecting any land unless the same shall have been registered.” The Supreme Court in arriving at its decision on the above quoted section came to a conclusion that the section deals with issue of evidence in court. The court noted that evidence is a matter that is listed in the exclusive legisla-

tive list in the constitution. Only the National Assembly can make laws with regards to evidence. Therefore, this provision is inconsistent with the provision of the constitution which vests the sole power to make laws on evidence on the National Assembly. Sections 4(3) and 5 of the constitution of the Federal Republic of Nigeria 1999 (as amended) was relied upon. The provisions of the sections are- 4(3) “The power of the National Assembly to make laws for peace, order and good government of the Federation with respect to any matter included in the exclusive legislative list shall, save as otherwise provided in this Constitution, be to the exclusion of the Houses of Assembly of States.” While that of section 5 states that “If any law enacted by the House of Assembly of a State is inconsistent with any law validly made by the National Assembly, the law made by National Assembly shall prevail, and that other law shall to the extent of its inconsistency be void.” With the foregoing, we can safely conclude that the provisions of various state laws that makes unregistered land transfer instruments inadmissible in evidence are null and void.

Understanding the use of power of attorney in land transactions

t is very common to hear that power of attorney is being used to transfer interest in landed property from one person to another person. It must be noted that a power of attorney does not transfer interest in land. The Supreme Court in the case of Chime v Chime (2001) LPELR24858(SC) (at page 33, paras. D-E) stated that - “… A Power of Attorney is a document, and may be under seal, which authorises a person to act for another person as his agent. The person who donates the power is called the ‘donor’ while the person donated is called the ‘donee.’ The power conferred on the donee may be either general or special”. From the above, it is clear that power of attorney is more of an instrument which empowers another person to act on behalf of the person giving

him the instrument. Most times, the powers of the person acting are expressly stated in the instrument. Therefore, attention must be given to the powers granted to the person acting under the instrument. This will help to know the extent to which the person can act on behalf of the donor of the power. When it comes to land transaction, the proper use of the instrument can only empower a person to act on behalf of the owner of the land. The power to act can be with regards to negotiation and signing of the instrument that will transfer ownership right to the person that is buying. Therefore, the power of attorney itself is not an instrument that transfers ownership of land. A power of attorney can be revoked. The implication of

this is that the person (donee) loses the right to exercise the powers delegated under the power of attorney. The revocation can be express, implied or by operation of law. In case of express revocation, it is usually communicated in writing that the powers granted have been revoked. The form it will take depends on the mode of creation i.e. if it was created by deed then the revocation is expected to be by deed. Implied revocation on the other hand deals with a situation where the person that grants the power goes on to do things that will not enable the donee to exercise the powers granted. An example is where power of attorney is granted empowering a person to be collecting rent on behalf of a landlord and the landlord sells the property. The grant of power of attorney does not

stop the donor from exercising the powers granted to the donee. However, where the donee exercises the power before the donor then the donor cannot exercise the same power again. The Supreme Court in the earlier cited case of Chime V Chime noted that - “… The better view is that so long as the donee has not exercised the power comprised in the Power of Attorney it is clearly open to the donor to exercise the same power. Therefore, where the donee has in fact exercised the power under the Power of Attorney the donor’s power in this regard expires.” Revocation by operation of law deals more with conditions that will naturally incapacitate the donee from exercising the powers. Example of such is death, insanity, bankruptcy etc. The power of attorney will be automatically

revoked in such situations. The only exception is where an interest is attached to the grant of the power of attorney e.g. where the power of attorney is given to a person to collects rents from the donor’s property till when the debt the donor owes the donee is fully set off. In such situation, the power granted is not revoked until the debt owed the donee is fully repaid through the rent collection. In conclusion, power of attorney is not an instrument that transfers interest in land. Rather, it confers the authority to deal in land on a person- on behalf of the person that give it. Focus and attention should be given to the powers conferred on the donee by virtue of the powers of attorney. This will help to determine the extent to which one is to deal with the donee.

BUSINESS DAY

Friday 09 November 2018

Harvard Business Review

ManagementDigest

Competing in the Huge Digital Economies of China and India Bhaskar Chakravorti

he global digital economy crossed a milestone recently: The total number of internet users in two countries — China, with just over 800 million users, and India, with 500 million — surpassed the aggregate number of internet users across 37 countries within the Organization for Economic Cooperation and Development. And both countries still have room to grow. In China, just under 60% of the population is online; while in India, under 25% of the population is online. The Digital Evolution Index, produced by Tufts University’s Fletcher School, places both countries in the “digital south,” meaning that the full deployment and adoption of online systems is still in development. While it’s tempting to group China and India together as a block of emerging digital markets, there are several important differences between them. The most obvious distinction is that China is mostly closed to international players because of state restrictions, while India is, technically, open for business.

Top U.S. companies are investing heavily in India — as are Chinese companies, such as Alibaba and Tencent. However, India presents barriers that are less visible. Consider languages, for example. Less than 100 million of India’s 700 million

literate citizens can read or write in English. There are 32 different languages with a million-plus speakers each across India. In China, on the other hand, the majority of citizens understand Mandarin.

Both China and India are key contributors to the world’s growing middle class. Currently, China is ahead on the major economic metrics: In order for India to add as much to its gross domestic product as China will in 2018, India would need to grow by 40%. But there are other measures that suggest that India might have a chance to narrow the gap. India’s middle class is expected to exceed China’s by 2030, according to the OECD and the Brookings Institution. In light of the potential narrowing of the broader economic gaps between the two countries, it makes sense to ask if the gap between their digital economies might also narrow — and if so when. Using our DEI model, there are three possible catch-up scenarios: First, if India were to pick up China’s momentum, it would reach China’s current level of digital evolution by 2029. Second, if India could achieve a 3% annual growth rate across several drivers it could achieve China’s current level of digital momentum by 2022. These drivers are: physical infrastructure, government facilitation of the information technology

sector, digital access, use of digital money and payments, national investment in research and development, gender inclusion, digital business footprint, and mobile internet. Third, if India could accomplish the following growth rates, it could reach China’s current state of digital evolution by 2024. — 18% annual growth in gender digital inclusion — 3% annual growth in physical infrastructure — 3% annual growth in national investment in R&D — 1% growth in digital access This analysis suggests that narrowing the digital gap is within India’s reach. While it’s important for businesses, innovators and policymakers to understand the differences between China’s and India’s digital markets, it’s also crucial for them to be aware of this potential for convergence between the two great powers of the digital south.

Bhaskar Chakravorti is the dean of global business at the Fletcher School at Tufts University and the author of “The Slow Pace of Fast Change.”

9 out of 10 people are willing to earn less money to do more-meaningful work MONEY

yriad studies have shown that American workers expect something more than just a paycheck in return for their labor. Current compensation levels show only a marginal relationship with job satisfaction. By contrast, since 2005, the importance of meaningfulness in driving job selection has grown steadily. To date, business leaders have lacked the answer to key a question that would allow them to act on the finding that meaning drives productivity. Just how much is meaningful work actually worth — both to employees and their organizations? We recently set out to answer this question at BetterUp. Our Meaning and Purpose at Work report surveyed the experience of workplace meaning among 2,285 American professionals, across 26 industries and a range of pay

levels, company sizes and demographics. The height of the price tag that workers place on meaning surprised us all. THE DOLLARS (AND SENSE) OF MEANINGFUL WORK Our first goal was to understand how widely held the belief is that meaningful work is of monetary value. More than 9 out of 10 employees, we found, are willing to trade a percentage of

their lifetime earnings for greater meaning at work. Across ages and salary groups, workers want meaningful work badly enough that they’re willing to pay for it. The trillion-dollar question, then, was just how much is meaning worth to the individual employee? If you could find a job that offered you consistent meaning, how much of your current salary would you be willing to forgo to do it? We asked this of our over 2,000 respondents. On average, our pool of American workers said they would be willing to forgo 23% of their future lifetime earnings in order to have a job that was always meaningful. A related question is: How much is meaning worth to organizations? Employees with very meaningful work, we found, spend one additional hour per week working, and take two fewer days of paid leave per year. In terms of sheer quantity of work hours, organiza-

tions will see more work time put in by employees who find greater meaning in their work. More importantly, though, employees who find work meaningful experience significantly greater job satisfaction, which is known to correlate with increased productivity. Based on established job satisfaction-to-productivity ratios, we estimate that highly meaningful work will generate an additional $9,078 per worker, per year.

having. This gap presents both a challenge and an opportunity for employers. Top talent can demand what they want, including meaning, and will jump ship if they don’t get it. Employers must respond or lose talent and productivity. Building greater meaning in the workplace is no longer a nice-to-have, it’s an imperative.

A CHALLENGE AND AN OPPORTUNITY Despite the bidirectional benefits of meaningful work, companies are falling short in providing it. Our study found that people today find their work only about half as meaningful as it could be. We also found that only 1 in 20 respondents rated their current jobs as providing the most meaningful work they could imagine

Shawn Achor is the best-selling author of “Big Potential,” “The Happiness Advantage” and “Before Happiness.” He serves as the chief experience officer at BetterUp. Andrew Reece is a behavioral data scientist at BetterUp. Gabriella Rosen Kellerman is the chief innovation officer at BetterUp and head of BetterUp Labs. Alexi Robichaux is the co-founder and CEO of BetterUp.

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

BUSINESS DAY

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Friday 09 November 2018

Join the dance craze this weekend Stories by Obinna Emelike

f you love dancing or looking for a special way to wrap-up the week, then join the Lagos dance craze this weekend. Zinart Agency; an international dance company, is organising a dance workshop to teach people how to dance professionally, as well as, exercise and dance for the fun of it. The dance company offers services to the top music artistes worldwide from African sensations such as Davido, Wizkid and Tiwa Savage to international acts such as Drake, Rihanna, SteffLon Don, Yxng Bane and many more. The project, which is described by the organisers as the ultimate dance weekend camp for dancers and dance lovers, is also a talent hunt that will further offer talented dancers that will be discovered at the camp, the opportunity to perform for world class music artistes. Hence, doors are open to aspiring dancers and excitement seek-

ers from today Friday November 9-11, 2018 at Eden Studios in Lekki Phase 1, Lagos to learn different

styles of Afrobeat, western dance styles, and fusion of afro and western dance styles including ‘Freak

Me’ by Ciara featuring Tekno and ‘Ganja Burn’ by nicki Minaj. One reason to attend the

workshop is the fact that the organisers are bringing five international dance teachers who have worked in big projects like EMA Awards, Brit Awards, VMA’s, X factor, Olympics and six Nigerian facilitators to collaborate in the teaching. There will also be mingling opportunity by both trainees and local dancers with international dance artistes and choreographers. Ezinne Asinugo, ace choreographer with Zinart Agency, who described the workshop as ‘Afro Dance Holiday’, urged the public to visit to see how the project will bridge the gap between Western dance and Africa through dance. Beyond dance, visitors will further enjoy incredible social lifestyle with night outs, cultural delicacies, African art exhibitions, market and museum visits among other activities. You need to participate to exercise, improve on your dancing skills, get opportunity to dance for good money and also unwind.

Caged In The Creeks set to change narratives in Nollywood

etermined to promote p ositive nar ratives about Nigeria and Nigerians, producers of the new Nollywood action movie project Caged In The Creeks, Leke Akinrowo and Elvina Ibru, have expressed commitment to use the coming movie to change certain impressions held about Nigeria with the new work. Caged In The Creeks, anticipated as Nigeria’s first action flick will be directed by Terry McMahon, multiple award-winning Irish movie director of Patrick’s Day and Charlie Casanova. McMahon renowned for hit movies like Batman Begin and Charlie Casanova among others is expected to bring his international artistic film production experience to Nollywood in this African action thriller. Speaking to the media at a meet

and greet session in Lagos recently, Terry said he is excited to be part of the movie that would help Nollywood to rewrite Nigeria‘s story. “Well, it is about perception. But I think it is a history that I want to be part of the Nollywood history. And my coming into Nigeria is to bring the Western character into Nollywood. I have got to bring in quality into Caged in the Creeks, to meet the industry’s expectations. We are about to create a revolution in Africa’s movie industry with this project in ways never achieved before in this part of the world”, Terry McMahon said The writer and producer, Akinrowo, said the movie captures his working life experience in the Niger Delta, after he was transferred from Lagos to Port Harcourt in 2009. “There have been misconceptions about Niger Delta. When I got to Port Harcourt I met people

L-R: Terry Mcmahon, multiple award winning director; Leke Akinrowo, director, Caged In The Creeks; and Afeez Oyetoro, Nollywood Actor at the National Theatre, Iganmu, Lagos for Tunji Sotimirin’s Live Performance “Molue”

like me who were living their lives despite the horror stories we heard in Lagos. More importantly, I have had this vision of doing something really ambitious in Nollywood. Maybe not in terms of money but something that has real depth, which is one of the major problems our stories have.” For Elvina Ibru, co-producer of the movie, Nigeria has been shown to the world always in the negative light and there is no better time to change the narratives. “We did this to ourselves and we want to undo it with this movie. We are going to portray ourselves as true heroes and that is what is different about this movie. Several characters will confront their worst fears and right the wrongs of their actions. Their dilemma will serve as a lesson on how as a country we can break away from the errors of the past,” she said. In the meantime, the production team has commenced movement to key locations for the movies in key parts of Nigeria and outside the country. The producers have said they are already talking to noted Nigerian actors for action movie. Written and produced by Leke Akinrowo, Caged in the Creeks is a story about international terrorists and local militants coming together to threaten the well being and fate of the country, and how the main character, who happens a former United States Marine forms an alliance with a former Nigerian Army captain and ECOMOG veteran to save their love ones entangled in the web of intrigues and save the country from a catastrophe plot being hatched by the international hoodlums.

Waje, Mayorkun thrill fans at Benin concert today

s part of activities lined up for the 2018 Alaghodaro Summit, to mark Governor Godwin Obaseki’s second year anniversary, Edo State will today, play host to A-list artistes led by popular songstress, Waje and Mayorkun, hip-hop rave, in Benin City. Crusoe Osagie, special adviser to the Governor on Media and Communication Strategy, said assured in a statement that the state government has finalised plans for the concert, which will fete Edo youths at the King’s Square in Benin City. He noted that the concert is part of activities lined up for the 2018 Alaghodaro Summit, which showcases Governor Obaseki’s investment in Edo people, specifically in health care, education and job creation. He added that the event will start from 6pm, after the two major events in the day, namely; EdoJobs Job Fair/ Summit, holding at the Edo Innovation Hub and Women’s Summit, which holds at the University of Benin (UNIBEN) Sports Complex, Ugbowo,

Benin City. According to him, “We are intent on engaging the youths, who are major drivers of economic growth. In the course of the last two years, we have rolled out a number of programmes to get them busy, with the most impactful being EdoJobs and the Edo Innovation Hub.” He said that one of the lead acts, Waje, was raised in Benin City, and aside featuring as an act for the concert, will also inspire youths in the state, adding, “We realise that youths need role models, people who have gone through the same stress as they did, walked the same streets and all that, but have come out triumphant in life. That is the message that Waje will be bringing to Edo youths at the concert.” He said other local acts will also be featured at the concert, adding that the state government prioritises the arts industry and is already devising means to mainstream the sector into its programmes, an effort that will be set off with the Edo TV Village, among other initiatives.

Friday 09 November 2018

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BUSINESS DAY

Business Etiquette

with Janet Adetu

Movie Review :

KING OF BOYS by Linda Ochugbua

ust when I thought the excitement was over and we had seen the best for the year, Kemi Adetiba decided to grace our screens with a blockbuster movie – King of Boys. I am so thrilled to write about this new Nigerian movie that is keeping the cinemas extra busy; although it didn’t have a crazy hype like that of The Wedding Party, this movie has been selling out, and do you know how? Referrals! It is said that “a good product will always speak for itself and sell itself”, this is the case of this movie. Believe me when I say that the trailer for this movie didn’t actually do justice in telling what to expect from this 3 hours movie; maybe that was their plan – to keep us guessing. It worked. Yes, you read right, it is a 3-hour movie and one of the longest Nigerian movies since the likes of “Rattle Snake” of the 90’s.

This 3-hour movie had no single dull moment; it was back to back action, intrigue and suspense. No one could predict the end, not even I the “movie review specialist” and when

we thought it was over, we found out that the movie was just getting started! It had a perfect crew, topnotch production; impeccable acting by the best of the best - Adesuwa Etomi Wellington, Sola Sobowale, Jide Kosoko, Osas Ighodalo Ajibade and even the newly introduced actor, Reminisce as he is popularly called in the music industry totally nailed his role as “Makanaki”. The costumes were on-point and also world class specifications. They paid attention to every detail and left no “i’s” without dots nor any uncrossed “T’s”. I have played out more than 20 different scenarios of what I thought the end could have looked like, in my head, but then I always have to remind myself that it’s just a movie, despite the fact that it was so relatable. King of the boys started with the first scene displaying wealth and affluence of a typical Yoruba woman. There was a big party organized

by Alhaja Eniola Salami to celebrate her birthday; the party brought together the ministers, the commissioners and the governor of the state. Alhaja Eniola was desperate for power and affluence, she

was willing to do anything to get the throne, take over and retain it and in such a short time, she accomplished all her dreams, and she became “the King of the Boys” she took over the seat of her late husband Alhaji Salami and she controlled a table filled with men. She was in total control of everything that went on in the city, both during the day and night, everything that happened in that city whether good or bad never took place without her consent. The movie had loads of lessons to teach the viewers, lessons like being careful with the kind of decisions you make, take out sentiment during your reign as ‘’King’’, if you kill by the sword you will also die one day by the sword, among other lessons. It also portrayed Nigeria’s political gimmicks and what goes down in the he of affairs in government houses. There were some tragic scenes in this movie as well that brought me to tears. The best aspect of this movie for me was its epic end. When we thought it was over for Alhaja Eniola, she dusted herself and started again; we all almost stood up to have a standing ovation for her at the last scene. “When you are the boss; you are the boss” no one can take your seat. My Verdict This movie deserves a 10/10; yes, it does. For the first time in a long while, I am confidently and comfortably giving this Nigerian movie a 10/10, with no restrictions or reservation. This movie would definitely make it into my top 10 movies of 2018 and I strongly believe it will bag loads of awards in the coming year. Thumbs up to the entire crew for this one; you all did a great job, and surely deserve some accolades. Movie Credit: Cast : Adesuwa Etomi Wellington, Sola Sobowale, Reminisce, Osas Ighadalo Ajibade, Jide Kosoko etc Director: Kemi Adetiba Written by: Kemi Adetiba Produced by: Kemi Adetiba, Remi Adetiba, Okwuosa Duration: 180mins Genre: Thriller, Action, Suspense Feel free to review any movie of your choice in not more than 200 words and send via mail to linda@ businessdayonline.com and stand a chance to win a free movie ticket. Instagram and Twitter: @ lindaochugbua

Caught on camera ‘Paparazzi Etiquette’ Have you ever been caught on camera in a way that you did not like? any times you attend events where it is bombarded with a multitude of media men, both photographers, videographers, TV crew, fashion journalists you name it. They are all geared towards getting their best shots to be publicized for others to buy or use on social media. Their aim is to capture treasurable moments, stylish trends, fashion, celebrities, eminent personality’s innocent guests and the like. Recently we see these ‘Paparazzi’ as we call them dominate events at the detriment of the invited guests almost becoming a nuisance. We see it all the time from the moment you step through the gate, ‘clink’, ‘clink’, ‘clink’ you are welcomed by paparazzi, you have no idea who is who. You wonder are they local photographers or organized by the events planners and celebrants. The next thing you know they are searching for you at the party with a beautiful picture of you for a charge. Did I say beautiful? Most of the time the picture is unclear, you are caught in an uncompromising pose if you were walking. Not much you can do with the picture as the quality is so substandard. They begin to try your intelligence and charge you a high price, it then becomes a case of take it or leave it. I have so many of such not because I like them, but I somehow do not like my pictures lingering around the place. Those are the ones I am aware of I am sure there must be countless pictures taken that I do not know about. Have you seen the way this same ‘Paparazzi’ storm weddings and literally smother the newlyweds or the celebrants during prized moments all clambering for the same picture? Yes the celebrants would like to have all their treasured moment captured but surely not at the inconvenience of their invited guests. They act in an annoying manner by covering the celebrants preventing the authentic invited guests from seeing what is happening surprisingly there is nobody to put them under control. They become very negligent since nobody puts them under control. We see this more and more at weddings and events that attract large crowds of people and many of the crème de la crème in society. My next question is: Where is the events planner please?

So many pictures and videos whatever happens to the all? What baffles me is when you are told you that your picture was spotted in a fashion magazine or a fashion blog. Paparazzi do not need your permission to use your picture as we have seen countless times. Yes there is always going to be a high chance of these pictures landing anywhere and everywhere given the freedom of expression and action that has been condoned by society. ‘Paparazzi rule the world’ Imagine sitting in a wedding reception eating they still do not respect the fact that you are eating and still take the picture or video regardless. There are time do not get me wrong when a photographer may ask you of let you know that he is about to take a picture however they will never tell you if you look alright for the picture. They will not

entrance ii.) Cutting of the cake at weddings, anniversaries and birthdays iii.) Father daughter dance at weddings iv.) Celebrant dance v.) Couples dance at weddings and anniversaries vi.) Celebrity performances vii.) Prominent speeches viii.) Celebrity poses Etiquette Tips for Celebrants / Event Organizers a. Identify how many media personnel you want at the event b. Provide important ID tags for each confirmed media man c. Identify which organization they are from and indicate behind tag d. Provide strict access and off limit zones e. Specify photo boundaries for both guests and celebrants f. Emphasize safety and security measures g. Emphasize the use of zoom lenses zones where neces-

help you adjust anything or even ask you to smile, you have no clue as to how you appear in the picture unless you insist on seeing it. What is the etiquette behind public photography? Paparazzi need to be sensitive to many situations when it comes to using the camera, all their media gadgets. Who is responsible for controlling these media men, is it the party planner, the security on patrol or the celebrants themselves? I personally feel the events planner as a major role to play in specifying the do’s and the don’ts to all suppliers, vendors and providers at all events. Caution must be taken as we may fall into a complete breach of security regarding the celebrants. All this talk about paparazzi interestingly the same paparazzi has now extended to the guests themselves using their mobile gadgets to do the same. Once again we all need to be cautious, kind and considerate when attending these events. Areas to watch out for the Paparazzi Craze i.) Couples / Celebrants grand

sary to avoid inconveniences guests h. Lay down all the do’s and don’ts as you desireo. i. Remember to avoid all breach of security to ensure a successful event Etiquette Tips for the ‘Paparazzi’ • Secure an access card • Follow all protocol and rules given • Know your boundaries and adhere to them • Understudy the environment and the people • Identify the celebrants of the day • Use discretion in carrying out your duties • Have a least a two man team to capture the event • Take relevant pictures of the day • Respect guests • Ask guests before you take their pictures • Don’t block the view of guests • Don’t be a pest or a nuisance • Reduce flashy lights Good luck during your next outing Janet.adetu@jsketiquetteconsortium.com

28 BUSINESS DAY

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Friday 09 November 2018

Interview ‘Govt needs to restructure Nigeria’s tax in line with national tax policy to grow revenue’ Albert Folorunsho, the Managing Consultant and Cofounder of Pedabo Professional Services, an indigenous tax, audit and advisory firm, gives insight on the policies that can help grow Nigeria’s tax contribution to the nation’s economy and also shares his personal career journey and how his company has remained competitive in the last 20 years of its existence in this interview with BusinessDay Endurance Okafor. Excerpt:

ell me about yourself and your career journey so far My name is Albert Olaniyi Folorunsho, I am the Managing Consultant and one of the founders of Pedabo. I was born on the 10th of November October 1967 in Iffe-Ijumu in Kogi State of Nigeria. Obtained an OND from The Kaduna Polytechnic in 1987 and afterwards was opportune to work briefly as an Assistant Executive Officer, level 6 at the National Commission for Museums and Monuments in Lagos in the year 1988. I worked there for two years during which I was introduced to ICAN exams and became a Chartered Accountant at 22 years of age, before leaving as Accountant1. In 1992, I moved on to join the tax and audit firm of Babington Ashaye & Co., where I trained and became a Senior Manager. I left after seven years and having agreed with my friend, Ajibade Fashina, Pedabo was formed. That was how we set up Pedabo on 1st November 1998 and that was how the journey began. Thereafter, I obtained a first degree from Ambrose Alli University where I studied Business Administration and later a Master of Banking and Finance from the University of Ibadan. I am a Fellow of The Institute of Chartered Accountants of Nigeria (ICAN). I am also a chartered banker, having completed the CIBN exams. I am also a Fellow of the Chartered Institute of Taxation of Nigeria, where I am the current dean of the International tax faculty,, as well as a fellow of the Business Recovery and Insolvency Practitioners Association of Nigeria (BRIPAN), where I am the current Treasurer. In 2008 I decided to expand my tax knowledge in the area of International Tax, so I registered with the Chartered Institute of Taxation (CIOT) of the United Kingdom and I obtained an Advanced Diploma in International Taxation (ADIT) and currently an international affiliate of CIOT UK. After my qualification as a chartered accountant in 1990, I started lecturing taxation at Mayo Associates Limited and later Safe Associates before I joined 12 wise men to form Wyse Associates Limited where I am still lecturing Advanced Taxation for ICAN and Business Taxation for ACCA exams. How were you able to start up Pedabo at 29/30 and what were the challenges you had to face?The company is a professional firm, so what we sell is intellectual expertise, it is what we have learnt from school and our experience in practice; like I said I trained with Babington Ashaye & Co., a professional firm that specializes mainly in taxation, insolvency, debt recovery and management. I was in the tax and insolvency unit. After seven years my partner (Ajibade) and I decided to setup our own practice and all we needed was a small office to start with, and we

taxes and more people have come to agree with the fact that we need to pay our taxes in Nigeria. A lot of people do not think that they should pay tax, a lot of people complain about the structure in place, others complain about what tax is being used for; but the truth is that there is need for them to pay their tax before they complain, and not the other way round. So to that extent, I think VAIDS was one of those things that have exposed Nigerians to taxation and I think this is really impacting the economy and based on FIRS information, several entities are being captured into the tax net now.

also started with one staff, who is now a senior manager at Pedabo and we did not quite require too much capital. We needed to get one or two people to believe in us and then to remain consistent with what we do. If you are an expert in your area and you know exactly what you are doing, you just need to convince people with your performance coupled with focus on service delivery and not on immediate gratification, because our focus was not to make money quickly but rather we wanted people to know that we understand what we were doing. My partner was in charge of audit while I was in charge of insolvency and tax, so we concentrated on what we know very well. With one or two people giving us opportunities, we delivered on them and with referrals from the few clients and friends, we are where we are today. What therefore is the success story of Pedabo? The success has been massive; like I mentioned in 1998 we started with just one staff and today we have 115 employees with an office in Lagos, Abuja and we have a representative office in Ghana. The number of clients have also increased tremendously and I hear we are even seen as a viable competition by the top four international firms. For instance, transfer pricing was considered exclusive to the top four but we are experts in that space and that has really given us that big break. We represent most of our clients in all the states of the Federation and FCT and we manage tax for banks with branches all over the Federation. Our clients include major companies in telecoms, construction, insurance, regulatory and every sector of the economy. We started off with some clients that were small and since we were small, we have grown with them. Pedabo is gradually becoming a household name in tax, audit and advisory services in Nigeria and we have grown with a number of clients that were paying us N50,000 some 20 years ago now paying us as much as N5million.

We have some clients that we have worked with for over 18 years, including financial institutions and if you have done that for that long, it means you must be doing something right. What is Pedabo’s strength? Our strength is basically being available for our clients at all times and to equip ourselves with knowledge in our field, that is our strength - I have time for all my clients both big and small, as we are just a phone call away and we try to meet our clients’ needs, coupled with the fact that we have very good relationship with our clients, the tax authorities and other regulatory authorities. When it comes to taxation service, about 80 percent depends on relationship management, so if you are able to build that relationship, your clients’ problems are virtually solved, and that is one of the things we have built over years. You must ensure your clients have full confidence in you and the tax authorities must also have faith in you and your approaches. For example, during the recent VAIDS programme, we filed individual returns for over 200 HNIs in Lagos and Abuja, with very high tax yield for the government. That is an evidence that people have confidence in us and they rely on us to keep their information confidential. You were a member of the VAIDS Steering committee; how successful do you think the initiative was? Yes, I was a member of the steering committee, and studies were carried out in countries that have implemented similar programmes in the past, like South Africa, Turkey, Indonesia and India before the structure was finalised. We were also involved in training the Community Tax Liaison Officers used in propagating the programme. For me, I think VAIDS was successful, and the Nigeria tax to GDP ratio at below 6 percent was ridiculous, hopefully it has increased. I believe that more people are now more aware of their tax obligations, more people are interested in paying their

What policies do you see that is working in other countries that Nigeria can implement to help spur tax revenue? To start with, I think we need to restrict the number of taxes that people are expected to pay, people complain about multiplicity of taxes and that is one thing that is not prevalent in those other countries whose tax to GDP ratio are significantly higher than Nigeria’s. In the UK for example, there is only one tax authority, Her Majesty’s Revenue and Custom (HMRC), they collect taxes from everybody but in Nigeria we have FIRS, state internal revenue service, local government revenue committee, and all sorts of other government agencies now pursuing tax collection, including those who are not even supposed to do that. For example, I see no reason why the Presidency or the Ministry of Justice will be by-passing the FIRS to set up panels to carry out tax audits. So you really do not know who the tax authority is anymore. The tax authority should either be the FIRS or the various State Internal Revenue Services, including FCT IRS. Definitely we have to harmonize our tax collection system, with a centralized tax identification number, and automatically the level of tax compliance will increase to a level comparable to other countries. Again most of our tax laws are outdated and totally out of tune with current economic and technological realities and advancement. But there is no commensurate response from the National Assembly on tax matters. Also, other countries are progressively reducing their income tax rates but in Nigeria it has remained at 30 percent for over 20 years. While our VAT rate at 5% since inception in 1993 is low, though not all input VAT suffered are deductible. So we need some structural adjustments on the tax base and rate, just like in the new national tax policy, it emphasizes increase in indirect tax because it is the only way to bring in the informal sector. What are the challenges of the industry and what policies do you suggest? Presently, most significant au-

dit assignments are awarded to the top four international firms (KPMG, Deloitte, PWC and EY). That is not helping the indigenous firms at all. The Financial Reporting Council (FRC) mooted the idea of compulsory joint audits with local firms. I think government needs to look at that direction as has been done in other countries, to support the growth of indigenous firms. We are an indigenous firm with an international outlook and so government have to put policy in place to be able to support such firms, so that they can grow and become more independent, confident and well established to be able to carry out these services, and that will go a long way in helping the economy. I think that is very crucial. So there should be a policy that will give room for big multinational companies in Nigeria to make use of the services of indigenous professional firms, or even in collaboration as joint auditors with the international firms and from such assignment they can gain more experience and exposure to handle such jobs. Where do you see your company in the nearest future? After 20 years, we are three partners and we have moved this business to this level, we have a whole lot of our managers that are coming up and I see some of them becoming partners in the very near future, starting from next year. As the number of partners increase, the clientele and staff strength will also increase. Our policy is to grow from within, so we spend time training our employees in order for them to have the technical competence to perform and lead the firm to greater heights. And as we follow through with our plans in the next 20 years Pedabo will definitely be one of the top four firms in Nigeria. Everything is in place for us to surpass our dreams, in terms of clients’ satisfaction, personal development, relationship management with both clients and government authorities. We are expanding our services outside tax, audit and advisory. Our accounting services for SMEs are growing very fast, payroll management is expanding and internal control is growing. To be able to meet the growing needs of our clients, we are also looking for firms with specialized skill that we can absorb or merge with. How do you engage yourself outside the Boardroom? I like listening to good music, I play football every Saturday as my main exercise. I also play table tennis. Also, in the last 28 years I have lectured virtually every weekend and I like reading a lot. Any advice for young professionals My advice is for them to continuously develop themselves, believe in their capabilities and uphold integrity at all times.

Friday 09 November 2018

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BUSINESS DAY

Markets + Finance ‘Providing proprietary research, commentary, analysis and financial news coverage unmatched in today’s market. Published weekly, Markets & Finance provides all the key intelligence you need.’

Zenith Bank Nigeria Plc: Improved operating efficiency underpins profit BALA AUGIE

mid sluggish economic growth, emerging market selloff brought on by political risk in Argentina, South Africa and Turkey, and stock market rout, Zenith Bank has delivered an attractive earnings profile, supported by improving operating efficiency. Zenith Bank is Nigeria’s largest lender by profit and total assets, outperforming peers rival First Bank Holdings, Access Bank, United Bank for Africa, and Guaranty Trust Bank.

The bank uses its strong balance sheet and liquidity as well as efficient trade finance processes and services, to continuously grow and support businesses. The Nigerian lender is able to turn each Naira invested in sales into higher profit as net margins increased to 45.18 percent in September 2018, 27.96 percent in the second quarter of (Q2) 2018, 38.38 percent in the first quarter of (Q1) 2018, and 30.82 percent in the last quarter of (Q4) 2017, based on data gathered from Bloomberg terminal. Strong bottom-line profitability, driven by improved operating efficiencies

Peter Amangbo, group managing director/CEO, Zenith Bank

Profit before tax increased by 9.66 percent to N167.30 billion in the first nine months through September 2018 as against N152.55 billion as at September 2017. The growth in Profit before tax was driven by a reduction in impairment on financial assets, moderate growth in operating expenses and reduction in interest expense. Profit after tax followed the same growth trajectory as it grew by 11.57 percent to N144.19 billion in the period under review as against N129.23 billion as at September 2017. Operating income was up 8 percent to N349.72 billion in the period under

review from N323.91 billion as at September 2017. The Nigerian lender was able to utilize assets in generating higher profit as Return on Average Equity (ROAE) increased to 24 percent in September 2018 from 23.40 percent the previous year. However, Interest income declined by slightly by 6.28 percent to N339.06 billion in the period under review from N361.78 billion as at September 2017. The drop in interest income was largely due to declining yields on assets, further impacted by reduction in loan book over the period. The Nigerian lender mitigated this drop in the topline (revenue) by enhancing

BD MARKETS + FINANCE Analysts: BALA AUGIE

its efficiency which resulted in an improved net interest margins (NIMs) of 9.6 percent for the period against 8.4 percent as at September 2017. Net interest income rose by 13.41 percent to N228.51 billion in September 2018 from N201.49 billion the previous year; thanks to a 31.03 percent reduction in interest expense to N110.54 billion in the period under review as against N160.29 billion the previous year. Despite the significant increase in Asset Management Corporation of Nigerian (AMCON) charge and inflationary pressures, Zenith Bank was able to contain its operating expenses growth at 6 percent year on year to N182.41 billion in the period under review. A breakdown of total operating expenses shows personnel or staff costs were up 12.51 percent to N51.68 billion in September 2018 from N45.93 billion. AMCON Charge increased by 33.32 percent to N28.54 billion in the period under review from N21.41 billion the previous year while fuel and maintenance costs were down by 3.60 percent to N13.90 billion in the period under review from N14.42 billion the previous year. Cost-to Income Ratio decreased by 1 percent year on year (YOY) to 52.20 percent in the period under review from 52.90 percent as at September 2017 amid rising AMCON charge. Well diversified loan

portfolio across sectors supports asset quality. Despite the tough operating environment, Zenith Bank’s NPL ratio came in at 4.9 %- which is below the 5 percent regulatory threshold-, while cost of risks fell to 0.90 percent n September 2018 from 2.70 percent as at September 2017. Zenith Bank’s impairment on financial assets fell by 70.14 percent to N14.33 billion in the period under review fromN47.05 billion as at September 2017. Net loans and advances were down 15.34 percnt to N1.82 trillion in September 2018 from N2.10 trillion as at September 2017. Deposits to customers increased by 6.86 percent to N3.27 trillion in September 2018 from N3.06 trillion in the September 207. Liquidity buffer well in excess of regulatory requirements. Solid and high-quality capital position provides room for further growth and has supported Zenith Bank’s historically strong dividend pay-out ratio. The Nigerian lender’s liquidity ratio and capital adequacy ratio of 72.0 percent and 21 percent are well above the requirement of 30 percent for liquidity and 15 percent for capital adequacy ratio. The Group continues to make progressive strides in its retail banking drive evinced by remarkable growth in transaction volumes across various electronic platforms even as customer acquisitions has increased materially, according to the Bank. “Also, the growth in the e-channels of the Group though its POS and ATM terminals continues to support our retail push. This combination now drives our increase in fees from e-products which grew 94% year-on-year, growth in retail deposit balances even as Zenith’s share of the industry’s retail deposits increases,” said the Bank.

BUSINESS DAY

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Friday 09 November 2018

Hotels La Casa del Papa, the allure on the coast OBINNA EMELIKE

o doubt, Ouidah in Benin Republic offers many exciting thrills to visitors. From the Python Temple, Museum of History, mini Catholic basilica, slave relics including Point of no Return, marked slave routes, cultural performances, to breathtaking beachside accommodation options, the ancient town woes more tourists than ever, especially Africa Diasporas. While in the town, an adventure awaits you at La Casa del Papa, the flagship beach resort in the whole of Benin Republic. A warm Beninese welcome awaits you at the resort. The resort is set between two worlds; the Atlantic Ocean and the lagoon, a uniqueness that delights the eyes with its serenity and also sets the mood for uninterrupted indulgence

with leisure. On offer at the beach resort are 56 well-appointed bungalows, which are scattered across coconut trees strategically designed to extend the tranquility at the resort. As well, guests have options of choosing from the many views; rooms with ocean and lagoon views. While all the rooms come with a terrace, there are ‘Privilege Rooms’ that come with breakfast at the sea side. Of course, guests enjoy in-room facilities including Jacuzzi, free wifi, mini bar, tea making facilities among others. Moreover, dining is an experience at the resort with African and European À la carte services and other international menus served at the La Bouche du Roi Restaurant, while guests on-the-go can crab snacks at the La Terrasse. There are special diet menus on request. The youthful guests or the young at heart can also

The accomodation options

Affussion table and wrapping of banana leaves at the Spa

let off stress and express themselves at the Laguna bar for dance parties every Saturdays where DJ is always on standby. Beyond leisure, the resort carters to the needs of business travellers and corporate guests with two fully-air-conditioned meetings rooms equipped with audiovisual facilities among others. There are also three large swimming pools including a small children’s pool, equipped with umbrellas and deckchairs. But guests who wish to dare the ocean can do so with lifeguard on hand. However, the resort takes the comfort beyond the guest rooms with several exciting activities. One of such activities is excursion to the mouth of the river, discovering the lagoon and its surroundings on boat with picnic and refreshment. You can also choose to discover the lagoon by swimming or leisure canoe paddling.

Yet, La Casa del Papa still has more to offer discerning guests. The resort’s Spa is becoming a must-experience for guests because of the peace of mind, purity and elasticity of the skin they get afterwards. The service offerings range from massages, African passport, great Shea care, affussion table and wrapping of banana leaves, illuminated path, Balneotherapy and hydromassage among other treatments that give customers youthful and radiant look. To obtain an optimum well-being, including revitalisation and deep regeneration, Dr. Joël Filori, designer of the Spa, puts his specialty medicine skills at the service of the protocols of care applied to healthy people. Other outdoor attractions include kayakinhyg on the lagoon, mini golf, beach soccer, beach volleyball, and canoe paddling. Fitness buffs can take advantage of the wellequipped fitness centre to lose weight gained while resting optimally at the resort. There are also bicycle rentals for guests seeking to cover some kilometers along the coastline all for the fun of it. For the conviviality of the family, there is a children’s playground, which engages the children and allows parents privacy. At the games rooms, guests who like it indoor enjoy games such as table tennis, dart, billiards, local games among others. The resort is pet-friendly as certain pets are allowed on request at no extra charges. Considering the English speaking West African neighbours and other countries, the resort, though in a French speaking country, also offers English language option to guests. We l l , t h e r e s o r t i s pocket-fr iendly w ith standard room going from N30,000 (less than $100) per night. So, if you are considering reasons to visit, remember the unique setting in-between the Atlantic Ocean and the lagoon, pocket-friendliness, the engaging rooms, simple yet alluring architecture, wonderful serenity, access to lovely beachfront, among other offerings. La Casa del Papa awaits your visit for an uninterrupted indulgence!

Top BusinessDay Partner Hotels

Four Point Hotels (Oniru Chiefatancy Estate,Lekki)

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

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

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

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

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

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

Protea Hotel (GRA Ikeja) GRA Ikeja

Protea Hotel (V/Island) Off Ajose Adeogun Street, V/ Island

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

Friday 09 November 2018

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BUSINESS DAY

Sports

Mbappe beats Neymar to become world’s most expensive player …. Player market valuation worth €216.5m Stories by Anthony Nlebem

ast rising French football striker Kylian Mbappe top the ranks of players with the highest transfer market valuation, according to CIES report. The 19-year old Paris SaintGermain (PSG), playmaker market valuation increased by €23million, beating fellow teammate and Brazilian playmaker, Neymar. Every month, the CIES Football Observatory updates the transfer valuations of big five league players using its exclusive algorithm. Mbappe recorded the highest overall figure with €216.5m. The transfer value of Kylian Mbappé increased by €23m compared to October. This allowed the French prodigy to outrank Harry Kane (€197.3m). The Englishman is now second ahead of Neymar, Mohammed Salah and Philippe Coutinho. Ageing Lionel Messi and Cristiano Ronaldo are now valued at €170.6m and €123.6m respectively.

In 2017, Spanish giants, Real Madrid were willing to pay €214 million to Monaco for Mbappe’s signature, but the deal collapsed and the player moved to PSG. Kylian Mbappe moved from Monaco to Paris Saint-Germain in the summer of 2017, but he was

Super Falcons coach Dennerby names squad for Women Africa Cup of Nations

e a d C o a c h T h o ma s Dennerby has released a list of 21 players who will fly Nigeria’s flag at the 11th Women Africa Cup of Nations finals in Ghana. The championship starts next week, with Cup holders Nigeria heading Group B of the competition, to contend with South Africa, Zambia and Kenya. The eight –time champions, presently at the world –renowned Sol Beni, Abidjan (academy of 1998 African champions ASEC Mimosas FC) for an eight –day final camping, will depart for Ghana on Wednesday, 14th November. Nigeria take on South Africa on November 18, before matches against Zambia and Kenya in Cape Coast. Hosts Ghana, Algeria, Mali and Cameroon will battle things out in Group A in Accra. Full Squad List For GHANA 2018 Goalkeepers: Tochukwu Oluehi (Rivers Angels); Christy Ohiaeriaku

(Confluence Queens); Chiamaka Nnadozie (Rivers Angels) Defenders: Glory Ogbonna (Ibom Angels); Sarah Nnodim (Nasarawa Amazons); Ngozi Ebere (Barcelona FC, Cyprus); Faith Michael (Pitea IF, Sweden); Onome Ebi (Henan Huisanhang, China); Osinachi Ohale (Vaxjo DFF, Sweden); Josephine Chukwunonye (Asarum AIF, Sweden) Midfielders: Amarachi Okoronkwo (Nasarawa Amazons); Ngozi Okobi (Eskiltuna UTD, Sweden); Rita Chikwelu (Krstianstand DFF, Sweden); Halimat Ayinde (Asarum AIF, Sweden) Forwards: Anam Imo (Nasarawa Amazons); Rasheedat Ajibade (FC Robo Queens); Asisat Oshoala (Dalian Quanjian, China); Francisca Ordega (Washington Spirit, USA); Desire Oparanozie (En Avant Guingamp, France); Chinaza Uchendu (SC Braga, Portugal); Chinwendu Ihezuo (Biik Kazygurt, Kazakhstan)

heavily linked with Real Madrid and the Spanish club were reportedly willing to splash out on the teenage talent. It has now been revealed that Los Blancos struck a deal with Monaco worth €214 million, with €180m going to the Ligue 1 club and with the

European champions also covering the €34m tax payment. This is according to the latest revelations from Football Leaks, with a report having been published in L’Equipe. But the France international moved to PSG, making a return to Paris, his hometown. Monaco may not have wanted to strengthen a domestic rival, but agreed that the forward could join the Parisian club if the 180m euro fee was matched. The transfer did materialise, with the player going on loan for one year and with an obligatory purchase option included for the end of that 2017/18 season. It has also been revealed that PSG paid Mbappe a fee for signing of 5m euros, to be paid over the course of his first two seasons, and a salary of 10m euros after tax. However, the club rejected a request for the player’s salary to rise to €30m for winning the Ballon d’Or, instead agreeing to pay €500,000 net if he does. Mbappe won the FIFA Young Player Award for his performances at the 2018 World Cup in Russia.

The 19-year-old enjoyed a sensational tournament as France outclassed Croatia 4-2 in the final to win the World Cup for a second time. He scored the winning goal as France beat Peru 1-0 in the group stages – just his fifth ever international goal after being handed his full France debut in 2017. But it was in the knockout stage game against Argentina that announced his arrival on the international stage. Top ten players with highest market valuation 1. €216.5m, Kylian Mbappe (PSG) 2. €197.3m, Harry Kane (Tottenham) 3. €197m, Neymar Jr (PSG) 4. €173m, Mohamed Salah (Liverpool) 5. €171.3m, Philippe Coutinho (Barcelona) 6. €170m, Lionel Messi (Barcelona) 7. €164.6m, Raheen Sterling (Manchester City) 8. €164.3m, Romelu Lukaku (Manchester United) 9. €163.4 m, Dele Alli (Tottenham Hotspur) 10. €157.7m, Antoine Griezmann (Atletico Madrid)

UAM tillers win maiden edition of Higher Institutions Football League

he 2018 edition of the Higher Institutions Football League (HiFL), ended in grand style with University Agriculture of Makurdi (UAM) Tillers defeating University of Calabar 5:4 on penalties in Lagos, on Saturday, November 3rd, 2018, to emerge champions of the league’s maiden edition. The tillers from Makurdi started the game on the front foot, with skipper and highest goal scorer of the tournament Ebuka David at the thick of action, but the Okorie Okechukwuled UNICAL Malabites defence stood resilient. The boys from Calabar were the better side in the second half as skipper and man of the match, Charles Ufot created a lot of chances that were poorly finished. A 5:4 Defeat on penalties, in favour of UAM Tillers, succeeded the goalless stalemate at the Agege Stadium, Lagos. Speaking during an international press conference organized before the match, Director, PACE Sports and Entertainment Marketing, Sola Fijabi, said that he is impressed with the huge support that the league has garnered and sustained since its launch “It is heart-warming to close out our first season on a high note. We are especially happy that the league did not only create an engagement platform for brands and several stakeholders, but it also unified students across Nigeria in the delightful spirit of sportsmanship. “We are extremely prepared for the 2019 edition to accommodate more schools than what we presently have. In 2019 there will be 32 schools participating, which is twice the number of schools in season 1, and they will participate in the competition after a qualifying round that will feature about 80 schools. We are hopeful that like the maiden edition, subsequent editions of the league will continue to have positive impact

on sports and education in Nigeria,” said Fijabi. “We hope to place collegiate sports in Nigeria on the same pedestal obtainable in other countries that have recorded successes and built a strong network of young, homegrown sporting and football talents in particular” Fijabi concluded.” Speaking after the final match, President, Nigerian University Games Association (NUGA) Prof Stephen Hamafyelto enthused that “The maiden edition of the Higher Institutions Football league has been largely successful. We have delivered on the promises we made regarding standards, discipline and even fair-play. The fact that the winner of the last NUGA Games is also the winner of the 2018 HiFL competition is further proof of the credibility of both NUGA and HiFL. Next year, we look forward to a more brilliant and interesting execution plan that will enable more

schools to participate.” “We are glad that the league has not only given a voice and a face to football talents across the country, but is also providing hope and a veritable platform of success for the numerous talents that are being discovered” He added. 16 teams participated in the 2018 HiFL season. The Obafemi Awolowo University (OAU Giants) emerged as winners of the Third Place Playoff after defeating University of University of Ilorin (Unilorin Warriors) in a thrilling encounter, which ended 3:1 HiFL is organized in partnership with the Nigerian University Games Association (NUGA). The league is overseen by the National Universities Commission (NUC) and the Committee of Vice-Chancellors (CVC). The winner of HIFL will represent Nigeria at the 2019 International University Sports Federation games in Naples, Italy.

L-R: President, NUGA, Prof Stephen Hamafyelto; Chief Executive, Stanbic IBTC Bank Plc, Dr. Demola Sogunle; Director, Pace Sports and Entertainment Marketing, Mr. Sola Fijabi, Team Captain, University of Makurdi (UAM), Ebuka Odenigbo, during the trophy presentation to Tillers of UAM / Champions of the Stanbic IBTC sponsored 2018 HiFL on Saturday at the Agege Stadium, Lagos…

BUSINESS DAY

Friday 09 November 2018

Insight Africa’s warp-speed health revolution has an old threat Poor countries must devote more resources to urban planning and improving sanitation David Pilling, FT

by the fact that people are living long enough to succumb to such afflictions. But this is not the whole explanation. Many people in poor countries are contracting non-communicable diseases at younger ages than in rich countries. The risk of early death from heart disease, diabetes and other afflictions commonly referred to as “diseases of affluence” are, in reality, becoming diseases of poverty. A remarkable new book from which these data are mined, addresses these issues. Plagues and the Paradox of Progress by Thomas Bollyky, argues that poor countries are struggling with the consequence of their success.

That is because infectious disease in poor countries has been combated largely through medicine and international assistance. This is not how it happened in advanced nations. In US cities between 1900 and 1936, a 43 per cent decline in mortality resulted from water filtration and chlorination. Better sanitation and housing, improved education and quarantine all had an impact before sophisticated medicines arrived. Poor countries are achieving the same results earlier — often without the institutional changes undertaken in the US and elsewhere. “The heavy burden of plagues, viruses, and parasites is being

‘

Yet only 1 per cent of health-related development assistance goes to noncommunicable diseases

‘

he leading killers of human beings are no longer the viruses, bacteria and other microbes that have lurked for millennia in our sewage, in our domesticated animals and in the parasites that bite or burrow into us. For the first time in recorded history, non-communicable diseases, such as cancer, heart disease and stroke, are the leading cause of death in every region of the world. That includes Africa. This is a remarkable, largely unheralded, achievement. It brings important and little-understood challenges. In 2011, infectious diseases stopped being the leading cause of death in Africa. By 2015, only 44 per cent of African deaths were the result of diseases such as dysentery, pneumonia, malaria, tuberculosis and HIV. That is still high. In most regions of the world, infectious diseases account for less than 10 per cent of deaths. Still, the rate of decline in Africa has been the most rapid in history, with deaths in recent decades falling at three or four times the pace they did in advanced nations. Africa is undergoing a warpspeed health revolution. As infectious diseases fall, non-communicable diseases naturally rise. In 1990, only 25 per cent of people in poor countries died from conditions such as diabetes, hypertension and cancer. In 2040, that will increase to 80 per cent in many of the same nations. The rise of non-communicable disease is partly explained

overcome in the cities of many lower-income nations without effective housing laws, adequate municipal water and sewage systems,” writes Mr Bollyky. But too often the result is more sick adults living without adequate health systems or employment opportunities. A 15-year-old in a low-income country has the same life expectancy today as in 1990; dramatic average gains in longevity have occurred as a result of averting childhood deaths. There are several implications. First, poor countries need to devote more resources to preventing and treating noncommunicable diseases. Africa’s elite too often opts out, seeking

treatment abroad. Those who stay at home receive limited care at best. Africa is urbanising at a staggering pace. Crowding unhealthy people into unprepared cities is a recipe for more sickness. Urban planning of the sort undertaken in the US before the age of penicillin is essential. Foreign aid also needs recalibrating. Four diseases — cancer, upper respiratory conditions, heart disease and diabetes — account for 60 per cent of deaths globally. In a few decades, this will be the picture in countries from Bangladesh to Burundi. Yet only 1 per cent of healthrelated development assistance goes to non-communicable diseases. Poor countries also need to crack down on killers such as pollution and tobacco. In 2013, Namibia, Togo and Uruguay tried to restrict cigarette advertising, but were warned off by Big Tobacco. Governments should unite to face down cigarette companies and other purveyors of unhealthy lifestyles. Tilting the emphasis towards the killers of today does not mean easing up on those of yesterday. Infectious diseases are here to stay. Higher temperatures, antibiotic resistance, rapid urbanisation and international travel are the friends of bacteria and viruses. Outbreaks of bird and swine flu in China, the Zika virus in Latin America and Ebola in Africa hint at coming plagues. Yet fighting viruses and parasites must not blind the world to the evolving challenge. As Mr Bollyky writes: “The story of the decline in infectious diseases threatens to be as consequential as the history of their rise.”

Friday 09 November 2018

BUSINESS DAY

34 BUSINESS DAY NEWS Covenant, UNN, FUT Minna, Ilorin, UI top... Continued from page 1

PWC, Chevron, Civil Service,

Dangote, Deloitte, Access Bank and ExxonMobil. Also, University of Nigeria Nsukka; University of Ibadan; Federal University of Technology, Minna; University of Ilorin; Bowen University; Obafemi Awolowo University; University of Benin; Lagos State University and University of Lagos make up the top ten universities employers recruit from to boost their human capital. The Stutern’s Nigerian Graduates Report also indicated that the best institution for return on investment is University of Ilorin which retained the first position from previous edition. “A student from this school can earn their total tuition fee more than 13 times in their first year of full-time paid employment. The best value institutions comprise of 13 federal universities, five state universities, one private university and one federal polytechnic”, the report indicated. The report also indicates that KPMG tops the list of employers that offers the best opportunities for graduates. Companies in the top ten includes; Andela, Shell, PWC, Chevron, Civil Service, Dangote, Deloitte,

Access Bank and ExxonMobil. Chinedu Duru, a human resource professional who spoke to BusinessDay explained that the top employers look for talents that have the ability to express themselves coherently and adequately both in writing and speaking. Duru said that private institution such as Covenant University is taking the lead in applying the core principles of university which is to build capacity for the emerging markets. Analysis of the highest paying industries from the report shows that for first job opportunities, Oil & Gas industry, Logistics/Transportation and Banking and Finance are the top three sectors that offer the best pay in the country. These industries have the highest respondents earning N200,000 and more. Healthcare, Telecommunications, Agriculture/ fishing/poultry offered the least paying first jobs. The education industry employs majority of recent graduates during their first or subsequent jobs. According to the report, “The industries that experienced the most increase in the number of recent graduates upon a switch are media, technology and healthcare sectors. The industries that were most stable (no

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rapid fall or rise) includes agriculture, transportation and consulting industry”. In terms of most employed graduate courses, Medicine, Library and Information Science, and Marketing are tops. From the survey, 47.58 percent of recent graduates studied the top twenty courses listed. The report also shows that three out of five (about 60%) of Nigerian graduates earn less than 50,000 ($139) as their first job monthly salary. Upon getting a later job, that number falls to two out of five (a little above 40%). Overall, most recent graduates earn between N20, 000 to N49, 999 ($56 to $139) in their first job after graduation while for their later job salary, most earn between N50, 000 to N99, 999 ($139 - $278). Speaking on the top ranking for his university, Aderemi AaronAnthony Atayero, vice-chancellor, Covenant University told BusinessDay that the vision of the University is raising a new generation of leaders. He said that Covenant University has been set up as academic enterprise and that the “best students and faculty are drawn to the University by the allure of being part of a compelling intellectual and creative enterprise; a community of scholars characterised by collaboration, innovation, and qualitative training in our various fields of expertise.”

The report also showed that graduates surveyed believed that their academic experience prepared them more for further studies (86.8% of respondents) than for employment (69.4% of respondents). Although, 69.4% of these graduates concluded that their education prepared them for employment, only 28.6% of employers believed so. “More than 50 percent of the graduates responded that their education did not prepare them with skills such as the practical skills of the courses studied, spoken communication skills, written communication skills and the ability to solve complex problems”, the report indicated. Other key findings of the report include the fact that ‘unemployment is gender biased as female graduates suffer the most.’ Also less than 10% of graduates studied the 10 most employed graduate courses. The report, which is based on a survey of 5,219 graduates who left school within the last five years (2013-2017) also showed that “majority of graduates who completed their studies within the last five years are currently unemployed (28.9%), while 26.3% are working in a full time paid employment. About 1 in 6 respondents (16%) reported that they are observing the one-year mandatory National Youth Service Corps (NYSC) program. While 13.4% are practicing entrepreneurship, free-

Friday 09 November 2018

lance and other self-employment activities, 8% are involved in voluntary and other unpaid employment. The remaining 7.2% are engaged or preparing for further studies.” The highest unemployment levels were found among OND holders while the least was found among PHD holders. Those with masters and MBA had the most chance of being in full time employment. Those with MBA also earned the best salaries. Another interesting finding from the report was the fact that 42.19% of graduate got their jobs through ‘personal contacts.’ The Nigerian Graduates Report, which is in its second edition, according to the authors “offers new insights on the country’s employment environment and highlights notable issues that surround employability, especially among the youths.” The authors are hoping that the report improves the efficiency of efforts in the education system towards improving the stock of human capital in the country and help shape the strategies of a diverse range of stakeholders, including employers in search for talent, job-seekers looking for gainful employment, and state actors in designing effective policies. Despite its huge youthful population, the Nigerian educational systems is largely regarded as being highly inadequate in preparing its youths for a fast changing world.

Regulators stifle businesses in threat to... Continued from page 2

Udom Emmanuel, governor, Akwa Ibom State (r), presenting a souvenir to Muhammadu Sanusi II, Emir of Kano, who paid him a courtesy call to discuss new investment proposal in Akwa Ibom State.

MTN nears settlement with CBN over $8.1bn... Continued from page 1

The CBN is said to have received new documents in relation to the case and is looking at resolving it with all parties amicably. Another source close to the CBN, however, told BusinessDay that even though the apex bank is looking at resolving the issue amicably, the decision by MTN to go to court was a ‘mistake.’ “The CBN has very wide powers that you must be careful to challenge legally,” the source told BusinessDay. If a deal is reached, MTN will probably dismiss its court case against CBN and attorney general, which it brought to stop the transfer order. The CBN is also set to meet today with the four banks accused of facilitating the transfers -- Standard Chartered Plc, Citigroup Inc., Stanbic IBTC Plc and Diamond Bank Plc, according to reports. An end to the dispute would come as a relief for MTN, Africa’s largest wireless carrier by subscribers. The Johannesburg-based company has lost almost a fifth of its market value since Nigerian authorities said

in late August that it needed to repay the $8.1 billion. MTN and the four banks, which have been fined $16 million between them, deny any wrongdoing. However, the company is also facing a claim that it owes $2 billion in back taxes in Nigeria, its biggest market. The firm’s battles with Nigerian authorities over the $10 billion in repatriated funds and back taxes could increase risk in South Africa’s financial system, the country’s Reserve Bank said this week. MTN running crisis in Nigeria has already shaken the company’s share priceandresultedinabout20percentof thevalueofthepensionfundofteachers in South Africa being wiped away. The “near-term repatriation of the funds to the Nigerian authorities could affect MTN’s ability to continue meeting its debt obligations, including those in the South African banking sector,” the South African Reserve Bank said in its Financial Stability Review released in the capital, Pretoria. “Given the interconnected nature of the financial system, that could

increase systemic risk.” The claims amount to almost all of MTN’s market value of about $12 billion, SARB said. That could also lead to a “worstcase scenario” of MTN pulling out of Nigeria, which would increase the company’s exposure level to reputational risk, it added. The shares traded 2.93 percent lower at 262.0 rand at the market close on Thursday, valuing the company at 163.7 billion rand ($12 billion). Recently the Nigerian finance minister told a large conference in Abuja that the crisis has been damaging to Nigeria after it became obvious that investors around the world had taken a dim view of Nigeria’s handling of the matter. Nigeria’s hopes to raise an additional $2.5bn in Eurobond before the end of the year and it is now believed that apart from the impact of the up-coming elections in Nigeria, the bungling by the government of the MTN matter will mean that Africa’s largest economy will pay a higher price for the bond as investors demand a higher premium for the risk in betting on Nigeria.

one example of the challenges that many firms face in an economy that is growing at a slower pace than the population. Some industry operators describe the charge on the same advert content for each media channel as arbitrary and an example of multiple taxation, which they argue is informed by desire for revenue generation instead of regulation of the system. Ijedi Iyoha, CEO of APCON, told BusinessDay that the practice which has been in existence for a long time was mandated by the APCON board. Iyoha said APCON, according to the vetting rule, does not charge fees for reduction of the size of advert, so far it is the same content as vetted by the regulatory body. “We charge advert vetting fees for different media channels such as radio, TV, billboard and print, even if it is same content and this practice has been like this for a long time,” she said. But market operators contend that regulators deprive the companies of time to market products while also adding to their operating costs. The wide-reaching regulatory inertia in Nigeria is also taking a toll on importers. Importers that depend on the nation’s seaport for the importation of raw materials and other critical production inputs are currently under cost-driven pressure, following the delay and high cost associated with the manual cargo inspection procedure used by the Nigeria Customs Service (NCS).

This procedure is characterised with long and cumbersome processes, which results to delay that keeps imported cargos in the port terminals for a minimum of 14 to 21 days, and has also made Nigeria to rank poorly in the World Bank Ease of Doing Business list. Four years after the Destination Inspection (DI) service providers handed over some set of fixed and mobile scanning machines worth over $120 million, which were built and situated in different port locations and border stations, to the Customs, the latter has failed to fully utilise them in clearing cargo. Currently, over 90 percent of all the containers and general cargos imported through the nation’s seaports undergo manual inspection process popularly known as 100 percent physical examination. The manufacturing sector is mostly affected as most of the imported raw materials of several firms get trapped in the port for longer days, resulting to companies being tied down with high production cost due to high interest that comes with loan repayment to banks that funded the importation of the raw materials. Tony Anakebe, managing director of Gold-Link Investments Limited, a clearing and forwarding company, said in Lagos that the process of clearing imported cargo at the Nigerian ports is currently the longest compared to clearing from other seaports in neighbouring West African ports.

•Continues online at www.businessdayonline.com

Nigeria plans London roadshow for $2.8bn... Continued from page 2

Last year Nigeria sold $3 billion in Eurobonds, part of which it used to fund its 2017 budget. It then followed with a $2.5 billion Eurobond sale in February to refinance local currency bonds at lower cost. Lawmakers said the new bond issue will raise foreign borrowing to 32 percent of Nigeria’s total debt, up from 30 percent at June 2018. Nigeria, which emerged from recession last year, approved a threeyear plan in 2016 to borrow more

from abroad. It wants 40 percent of its loans to come from offshore sources to lower borrowing costs and help to fund record-high budgets. President Muhammadu Buhari, who plans to seek a second term in next year’s election, signed 2018’s record 9.12 trillion naira ($29.8 billion) budget into law in June as part of efforts to foster economic growth. Nigerian officials met fund managers in September on a non-deal roadshow in New York to update bondholders on the country’s growth plans.

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35 OPINION

BUSINESS DAY

National Health Insurance and the Nigerian... Continued from back page

carrying along others in the leadership team, including this executive’s bosses, who cannot all be unpatr iotic thieves and vagabonds, contrary t o t h e i m p l i cat i o n s o f the body language of this individual, could have done a lot to improve things. In reality his ‘war’ has left an underperforming system in regression, with Nigeria’s Health Insurance coverage languishing in the doldrums. But the posturing a n d re c e n t t rav a i l s o f this ‘saviour’ are not the point of this piece, really. What is wrong with our NHIS? The design of the law itself is fundamentally flawed. For one thing, National Health Insurance cannot be successful unless Health Insurance in one form or another is made compulsory for every Nigerian citizen. That is a political step no President to date has found the courage to take, fearful of its repercussions in political capital. S e c o n d l y , a n d g e tting to the core of why

t h e N H I S ha s b e e n s o troubled and looted over the years, the law should have created a separate entity to manage the ‘ Health Fund’- a b o dy independent of government, governed by eminent untainted citizens of Nigeria, of which there are, hopefully, still a good few. They – not the CEO o f t h e N H I S, n o t e v e n the Board of the NHIS, should be the ones doling out statutory payments, such as ‘service charge’ to the NHIS, and the payments to the HMOs and service providers. Thirdly, the Abuja drama is one of the most comp elling arguments for restructuring in Nigeria. Health Insurance should be on the concurrent, not exclusive list. State governments can a n d s h ou l d st a r t t h e i r own health insurance. This writer can recolle ct sitting in at s ome m e e t i ng s w h e n L ag o s, always the outlier, was contemplating starting health insurance. A large part of the discourse was devoted to finding a name for it – anything but ‘health insurance’ – since that was ‘exclusive’ and might offend the ‘federal’ government of the day!

Another nugget from history. Asiwaju Bola Ahmed Tinubu, during his incumbency as gove r n o r, a p p a re n t l y w a s invited to get Lagos to ‘join’ NHIS. Presumably the expectation was that the state could pay the p re m i u m s f o r i t s c i v i l ser vants to the coffers of NHIS in Abuja. If Lagos did it, other states w e re b ou n d t o f o l l ow . The treasure trove in the Abuja warehouse would be swollen exponentially. In private conversation with his health managers, he let it be known that not one kobo of Lagos money was ever going to go into any NHIS account in Abuja. Rather Lagos would do its own thing, whatever it took. Collaborate – yes. Be swallowed up – never. Conclusion? The NHIS requires a re v a m p i n g – ro o t a n d branch. The funds need to be separated from itchy fingers as well as from power-magnates. A best-practice governance structure needs to be created for the Insurance funds. Protocols have to be developed and enforced for all stakeholders – HMOs, providers, and the managers them-

selves. The key requirement is not for messianic ‘rescuers’ but good cleare y e d i n s i g ht f u l t h i n king guiding policy and i m p l e m e nt at i o n at a l l times. Ever y state needs to be encouraged to set up the structure for at least a basic health insurance scheme. The private sector should also be encouraged to be more active in the area of social health insurance. A firm

handshake of collaboration should then be made between the ‘federal’ agency, the states, and the private sector. This is especially important because the Nigeria Health Act, which is supposedly ready for implementation, prescribes that one percent of the nation’s consolidated revenue should go to basic health service provision for the citizenr y. Fifty percent of this amount is to go to

NHIS as a ‘basic health care provision fund’ for providing a ‘basic minimum package of health services to citizens’ all across the nation. A good b o l d s t e p f o r w a rd t o wards the goal of universal healthcare. However, if the NHIS is not revamped and res t r u c t u re d w h o l e s a l e, t h i s w i l l b e j u s t m o re money in the warehouse f o r ‘ m e s s i a h s’ t o l o rd it over, or for others to steal. Nigeria itself requires a root and branch revamp to correct the structural flaws that keep it going round in circles seeking messiahs, but that is another story. Ernest Hemingway in one of his celebrated short stories, wrote about a cyclist riding his bicycle through Spain during the reign of General Franco’s fascist regime. He only ne e de d to in teract with a traffic policeman and obser ve a couple of people on his way to understand what was wrong with Spain. A visitor to Nigeria only needs to observe the sad drama playing out in the NHIS to get a glimpse of what is wrong with Nigeria itself.

Exit of the banking giants and the crisis of confidence in the Nigerian ... Continued from back page

ballooned from N11 trillion in 2015 to more than N22 trillion (a staggering sum of US$73 billion) today. What is worse is the opacity surrounding what the loans are being used for. Some would point to the utter folly of incurring foreign loans to build railways to a far-off barbarous Sahelian outpost such as Niger Republic. The HSBC report concludes that Muhammadu Buhari has become more of a liability than an asset for the ruling party. The APC itself has become a fractious rabble that is no longer fit for purpose. And given the current politicalelectoral cycle, unbridled spending in an election year can be expected to put more pressure on inflation and spending, thereby worsening the exchange rate while undermining key economic fundamentals. Aso Rock reacted rather sternly to the rebuke by HSBC, opining that what “killed” the economy in the past was “unbridled looting of state resources

by leaders, the type which was actively supported by HSBC.” In a rather unseemly combativeness, the presidency pointed out that HSBC had “no moral right whatsoever” to assert that the re-election of Muhammadu Buhari for a second term risked limited economic progress in Nigeria. The bank pointed to the economic recession of 2016-2017 and the government’s slow response and the accompanying hardships, joblessness and general despondency as factors giving an unprecedented low rating to the current administration. The anti-graft agency EFCC was not to be left out of the affray. In a statement posted on its official Facebook page, the EFCC declared that HSBC is synonymous with money laundering. They listed some of Abacha’s loot that were allegedly laundered by H S B C , c o n c l u d i ng : “We shall not rest on our oars until every penny… is repatriated to Nigeria to improve the lives of the people.” A question that inevitably arises is why the anti-graft agency never

brought those issues to the fore until the quarrel between HSBC and Aso Villa broke into the open, when the bank took a dim view of the government’s economic policies and the prospects of the president’s re-election. At the beginning of the stand-off between South African telecoms giant MTN and our central bank over repatriation of $8.1

billion, UBS expressed the view that the dispute may erode investor confidence in the country. The presidency again reacted in an infantile manner. They accused UBS of being one of the conduits for money laundering amounting to US$100 million by former military dictator General Sani Abacha. These controversies came at the wake of a report by the Economist Int e l l i g e n c e Un i t (EIU) which paints a bleak picture of the country’s economic conditions and prospect. The EIU, in a September report on Nigeria, declared that the administration lacked competence in managing the economy and that the ruling APC will lose the coming elections. I do not think it was wise for the presidency to engage in such open warfare against the banking giants. A member of the Economic Team should have written a well-reasoned

paper to counteract the accusations from HSBC and UBS. It was not necessary to be so defensive and adversarial. Any government that treat global banking giants as adversaries is digging its own grave. More than anything else, these people respect those who engage with them at a high patrician intellectual level of economic reason, not the low level of plebeian namecalling Logicians will tell you that ad hoiminem argumentum has no place in economists’ debates and discourses. This is not to say that the government may not have a point in the charges it laid at the doors of the banks. Early this year HSBBC had to pay a US$101 million fine for cheating some of its clients in its international share trading. Earlier, in 2016, a HSBC currency trader was found guilty of front-running a US$3.5 billion client order in the United States. As of June this year alone, the Bank’s management had to set aside US$773 million to settle problems relating to tax evasion and money-laundering in India

and other jurisdictions. In matters of fraud, UBS is not a boy scout either. In 2011, a UBS trader, Kweku Adoboli, a Ghanaian national, was involved in a gigantic fraud involving some US$2 billion. As we speak, UBS is battling a tax evasion case with French authorities in Paris that could see it being forced to cough out US$5.76 billion in fines. Clearly, these banks are not paragons of virtue by any stretch of the imagination. The great industrialist and inventor Henry ford famously expressed a great pessimism about bankers: “It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning.” We have, unfortunately, not acted with maturity in this case. The exit of the two banking giants does not spell doom. They are just closing down their diplomatic outposts. But as signals go, it is a bad sign. It has the potential of discouraging potential investors.

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CBN disburses over N100bn to 800,000 smallholder farmers

… Emefiele tells banks to step up mortgage support HOPE MOSES-ASHIKE, MICHEAL ANI, GBEMI FAMINU

he Central Bank of Nigeria (CBN) on Thursday said it had disbursed over N100 billion to 800,000 smallholder farmers in the Anchor borrowers’ scheme. Godwin Emefiele disclosed this in Lagos on the sideline of the two-day Nigeria Investment Conference organised by CFA Society Nigeria. “Since the Anchor Borrower Programme was introduced, we have empowered over 800,000 smallholder farmers in the rural communities in Nigeria that require less than N250,000 to cultivate one hectare of land, who never had access to finance,” he said. The apex bank last year introduced the Anchor Borrowers’ Programme designed to reach out to smallholder farmers across Nigeria. Emefiele was worried that banks that were supposed to partner the CBN to achieve the anchor borrowers scheme target were not doing so. Instead, the banks are investing their money on gov-

ernment securities rather than lending to the real sector of the economy. According to Emefiele, there are a lot of opportunities in the mortgage sector banks can take advantage of, saying, “The pain that I have is that everybody thinks they can come to the CBN. “However, I am not saying that the mortgage sector is not important but we believe that there are other sectors too. We are looking at the mortgage guarantee scheme that will help in stimulating the mortgage market, just that they face the problem of access to liquidity. Deposit money banks must step up and begin to sponsor mortgage product that will stimulate the sector, and it is not enough to leave it for the CBN alone.” Speaking at a panel session, Doyin Salami, an economist and former member of the Monetary Policy Committee (MPC), said the CBN had made it clear that stability was what they would prefer and pursue. “What we have seen so far, which is the haemorrhaging of reserves will continue. It is a choice, and by the way I am not saying it is an invalid choice,” Salami

said. “All I am telling you is that my own analysis suggests that naira is overvalued by about 10 percent and might need to adjust. Whether it adjust or not will depend on a number of things, one of which is oil price,” Salami said. Bismarck Rewane, managing director/CEO, Financial Derivatives Company, said, “There are four components that will make up the Nigerian economy in 2019. They are the optimality of output, revenue problem, especially in terms of tax being collected, and how revenue is being utilised, the problem of how the economy has been managed, and external imbalances. “Basically, there is need to understand the problem and take optimal decision. In essence, regardless of whatever revenue is pooled into the economy, it will not produce optimal results if those parameters are not dealt with. We also need an adjustable market structure and policy.”

A1 NEWS

BUSINESS DAY

Schneider Electric gets certification on Nigerian facility

chneider Electric in Nigeria has been awarded the Nigerian Content Equipment Certificate on its assembly facility owing to its commitment to the country’s local content policy. The certification, which was awarded by the Nigerian Content Development and Monitoring Board, attests to the fact that the firm owns the assembly facility, which it uses for integrating electrical and instrumentation equipment in-country. Wi t h t h e c e r t i f i cat e, Schneider Electric said in a

statement that it could participate in tender submissions relating to process automation, instrumentation and electrical distribution equipment in the oil and gas industry. Receiving the certificate, Nabil Djouhri, general manager, Schneider Electric Systems, said the company promotes local content by continually transferring knowledge and expertise to its local partners, electrical engineers, technicians and system integrators through continuous engagements, support systems and trainings. The company, thus,

restated its commitment to investing heavily in research and development on an annual basis. Other efforts by the company, he said, include sponsoring the training of girls in Science, Technology, Engineering and Mathematics (STEM) education; the donation of electrical training equipment to tertiary institutions, citing the University of Ibadan as the most recent, where it also engages in the continuous ‘Training of the Trainer programme’ to ensure the equipment is put to good use.

Corruption: PDP urges NIA, DSS, Interpol to track Oshiomhole OWEDE AGBAJILEKE, Abuja

he People’s Democratic Party (PDP) has charged the National Intelligence Agency (NIA), Department of State Security (DSS) and INTERPOL to help track down the embattled national chairman of the All Progressives Congress (APC), Adams Oshiomhole, who was reported to have fled the country to the United States of America. The party notes that Oshiomhole’s swift flight out of the country, at the heat of investigation, confirms allegations that President Mu-

hammadu Buhari is shielding him from prosecution for fear that his investigation will implicate certain interests at the Presidency and the APC. A statement on Thursday by Kola Ologbondiyan, PDP national publicity secretary, demanded that APC and the Presidency must immediately produce the embattled chairman to face investigation and prosecution in the nation’s court. “It is ludicrous that the APC, in its lying proclivities, believes that by dismissing Oshiomhole’s arrest as a rumour and aiding him to momentarily flee the coun-

try, it would succeed in getting him off the DSS hook as well as sweeping the matter out of public discourse with its famished broom. “No! Nigerians are already aware that Oshiomhole has not denied his investigation including his reported confession that the Presidency was in the loop of all his actions. “The PDP had always cautioned Adams Oshiomhole of his unbridled arrogance, lust for power and alleged embezzlement of public funds for which he must surely have his day in the hands of the law,” the statement read.

A2 BUSINESS DAY NEWS After tango with DSS, pressure mounts on Oshiomhole to quit

eading voices in the ruling All Progressives Party, APC are renewing pressure on the embattled chairman of their party Adams Oshiomhole to resign over allegations arising from the party’s troubled primaries for which Governor Ibikunle Amosun again met President Muhammadu Buhari Thursday. On Thursday a chieftain of the APC and Director General of the Voice of Nigeria (VON), Osita Okechukwu, asked Oshiomhole, to resign honourably to save the party from further embarrassment. The APC national chairman was reportedly interrogated by the security agencies early this week before he travelled out of the country. Speaking against the background of allegations of corruption arising from the recent primaries of the party, Okechukwu said Oshiomhole’s exit would save the ruling party from the serious moral burden his reported interrogation by the Department of State Security Services had imposed on it. The VON director general who is an ally of President Muhammadu Buhari since their days in the defunct Congress for Progressive Change, and an aggrieved senatorial

aspirant in Enugu State, also urged DSS and the Economic and Financial Crime Commission (EFCC) to immediately probe the call logs of Oshiomhole. Addressing a press conference at the national secretariat of the party in Abuja on Thursday, Okechukwu said it was imperative that Oshiomhole resigns forthwith to save the APC and President Buhari on the eve of a crucial general election. “Penultimate week, I joined the league of APC moral leaders, faithful and men of good conscience to call on Comrade Adams Oshiohmole, to honourably resign forthwith the chairmanship of our great party. In his usual narcissistic disposition he refused. “Gentlemen of the press, as the Oshiohmole Must Go wave raged, the Department of State Security Service (DSS) got wind of it. They interrogated him and I patiently waited to read in the social or main media from Comrade Oshiomhole and his spin doctors over his tango with the DSS, neither rebuttal nor denial came from them”, he said. Okechukwu further alleged that Oshiomhole was running away from duty to evade the substitution window, “meant to redress the grievances of some of us, who

are casualties of his nepotism.” “I therefore, once again, stridently call on Comrade Oshiomhole to instead of pontification, grandstanding and running away from the country; to do the needful by honourably resigning the chairmanship of our great party. “It is imperative that he resigns forthwith to save the APC and Mr President on the eve of 2019 crucial general election. One personally would not want the mud Comrade Oshiohmole had accumulated via gross breach of the Constitution of the APC, the 1999 Constitution of the Federal Republic of Nigeria and extant laws to be splashed on neither our great party nor Present Muhammadu Buhari. “One once more challenges the DSS to scroll the phone-log of Comrade and his nepotic court of cronies.” The VON DG, however exonerated President Buhari and Asiwaju Bola Tinubu from having knowledge of Oshiomhole’s ordeal saying that the former Edo State governor should be able to accept his failings. He also said that the party may find it difficult to face Nigerians with Oshiomhole leading the campaigns ahead of next year’s general elections.

Apple launches iPhone Xs, iPhone Xs Max in Nigeria

pple, a leading smartphone maker, last week launched iPhone Xs and iPhone Xs Max in Nigeria at the Villa Medici, in Lagos. Popularly referred to as ‘The Big Screens’, the iPhone Xs and Xs Max are Apple’s most recent products right after the iPhone X and iPhone 8 plus. It is a worthy upgrade to the iPhone X with a handful of remarkable improvements. Sivadoss Vijayakumar, regional head, West Africa Operations, Redington, spoke on the need for continued innovation and unique additions in creating devices that cater to the demands of users through applicative and emotive value. “It has been a commend-

able journey for Apple in Nigeria and last year, iPhone X was a game changer for us all. Year by year, Redington is going strong and is continually committed to making this relationship stronger with your continuous support and trust,” he said. This year marks the largest displays ever included on iPhones, with the iPhone Xs and Xs Max each featuring 5.8-inch and 6.5-inch Super Retina displays with custom-built OLED panels that provide the industry’s best colour accuracy, true blacks, and remarkable brightness. The devices also offer True Tone technology, which uses an ambient light sensor to adjust the white balance of the display to match the ambient lighting

in any room. The iPhone Xs and Xs Max come with unrivalled technology as Apple looks to further cement its place as the leader in mobile device manufacturing. The iPhone Xs key specs and features include: 5.8-inch Super Retina display (OLED) with HDR; IP68 dust and water resistant (maximum depth of 2 meters up to 30 minutes); 12MP dual cameras with dual OIS and 7MP TrueDepth front camera—Portrait mode. Others Portrait Lighting, Depth Control, and Smart HDR : Face ID for secure authentication; A12 Bionic with next-generation Neural Engine; Wireless charging— works with Qi chargers, and iOS 12 with Memoji, Screen Time, and Group FaceTime.

Education investments: Shell commended, told to help develop labs IGNATIUS CHUKWU

hell Nigeria has received a big pat on the back on account of its huge investments in the education sector, even as the Rivers State commissioner for education, Tamunosis Gogo Jaja, who poured the encomiums in Port Harcourt at the weekend, has requested for the support of the multinational corporation in rehabilitating laboratories in schools in the state. Jaja, who delivered an address at the 2018 Secondary Schools Quiz Contest sponsored by Shell, said the push for science and technology

starts from the labs in secondary schools but regretted that most of them have decayed over the years, except the ones such as the Rumuokwuta Girls College that have just been rebuilt by the Nyesom Wike administration. Jaja, who praised Shell, said if you open the door of a school, you shut the door to a prison. “One of the surest ways to battle militancy is education. The man who opens the doors of a school has shut the door to a prison. Schools create dreams in the young ones and fire their ambitions to leadership and scholarship. “So, I commend Shell and other multinational corpo-

rations that are investing in the education sector in Nigeria. One of such companies helped the Rivers State government to rehabilitate a school in Port Harcourt and the state government is appreciative of this.” He went on, “We encourage the multinationals to partner with the state government to rebuild schools and make them more attractive so that education can help curb militancy. The situation is so bad that it had to be Governor Wike that set up a model primary school in Rumueme, which is near an oil company estate. The community has been there for decades without even a primary school.

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Debt servicing cost rises 37.04% in six months HOPE MOSES-ASHIKE

igeria’s cost of servicing debt grew by 37.04 percent to N941.99 billion at the end of June 2018, compared with N687.37 billion in the corresponding period of 2017, according to the Central Bank of Nigeria (CBN). The half-year activity report released on Wednesday by the CBN revealed that total domestic debt outstanding at the end of June 2018 stood at N12.2 trillion, representing an increase of N290.67 billion or 2.45 percent, over N11.9 trillion in the corresponding period of 2017. The debt stock during the review period comprised FGN Bonds worth N8.9 trillion or 73.47 percent, Nigerian Treasury Bills (NTBs)

worth N2.9 trillion or 24.31 percent and FRN Treasury Bonds of N150.99 billion or 1.24 percent. Others included FGN Sukuk worth N100 billion or 0.8 percent, FGN Green Bond N10.69 billion or 0.09 percent and FGN Saving Bonds of N8.52 billion or 0.07 percent. The Debt Management Office (DMO) on Wednesday released its new strategic plan, the expiration of the third Strategic Plan (2013 – 2017). The building blocks for the fourth Strategic Plan are: changing investor needs and higher investor expectations from the DMO on products and services; government’s prioritisation of the development of infrastructure, which requires new and more creative ways of financing, and among others, the active and supportive role expected of the

DMO under the ERGP, two of whose pillars are reducing the infrastructure gap and a private sector-led growth. The Broad Objective of the fourth Strategic Plan is: to use Debt and Debt-related instruments to support Nigeria’s development goals, while ensuring that public debt is sustainable. The Office noted the major challenges encountered in the implementation of the third Strategic Plan to include the non-passage of DMO Amendment Act; inadequate funding for the implementation of some initiatives; low staff morale due to continued delays in the actualisation of key human resource issues, such as remuneration and less than optimal posting of staff, and inability to properly manage certain categories of external stakeholders.

A3 NEWS

BUSINESS DAY

Shell CEO admits mistakes in Nigerian operations FRANK ELEANYA, Lisbon

en van Beurden, CEO of Shell on Thursday, admitted that his organisation made some mistakes in its operations in Nigeria, and was working on addressing the problems. The Shell CEO, who said this at a presentation on the theme ‘Is Big Tech the New Oil? And how can tech avoid oil’s errors?’ on the last day of the Web Summit in Lisbon, Portugal, acknowledged that trust on the company had faded over the years. According to Beurden, every organisation has a responsibility to stay true to the basics, which include trust and commitment to “do no harm” both to the people and the environment. “My company got a very important alarm bell back in 2004, then we effectively had to conclude that some of our executives had lied about the reserves that we

had on our books,” Beurden said. “It turned out to be less than we had said publicly. That was a painful affair because we had to recognise that we didn’t even get the basics right when it comes to trust. What’s also basic is, do not harm. And for oil and gas, doing no harm to people means is keep them safe and also doing no harm to the environment. There we have to admit, if you look at our track record in Nigeria, that we did not always get that right as well,” he said. In addressing the mistakes, Beurden highlighted three action points that need to be taken. The first is to apologise, second is to learn and third is to repair the damage that was caused, which is usually easier said than done. Shell, he disclosed, is still trying to embed the lessons it learnt since 2004 when it was forced to sack its executives for overstating its revenues in the annual report.

Its efforts in Nigeria in particular have been undermined most times by sabotage. “We still make mistakes today and we still have to learn all the time,” he said. This for him goes to show that adhering to the basics is not easy despite being low bars that can be easily addressed. He also acknowledged that notwithstanding best intentions, Shell’s products could rub off the wrong way in some societies. “It is not everything that is wonderful about our products. The answer is to engage with society and to behave responsibly. But that is still not enough; society’s expectations are rising. So we have to do more and we will do more. By 2040 we will bring clean and efficient energy to hundreds of millions of homes in countries that do not have access to energy and we will do it as a business. It is about actually doing the right thing.”

Nigeria gets re-elected Alaghodaro Summit: into ITC Benin agog as Obaseki presents scorecard JUMOKE AKIYODE-LAWANSON

N L-R: Sani Abubakar, executive vice chairman, Brentex Petroleum Services; Hakeem Ogunniran, founder/CEO, Eximia Realty Company Limited; Nike Akande, chairperson, NEPAD Business Group Nigeria/special guest of honour, and Bamitale Omole, chairman, Eximia Realty Company Limited, at the launch of Eximia Realty Company Limited in Lagos, yesterday. Pic by Olawale Amoo

FG explains reasons for suspending national carrier ... says Nigeria Air to kick off soon, Nigerians to invest IFEOMA OKEKE & STELLA ENENCHE

he Federal Government yesterday explained to stakeholders that the suspension of the planned national carrier was because the transaction advisers to spell out the ownership model in the privatisation and shareholding process did not complete the process. Hadi Sirika, minister of state, aviation, said Lufthansa, which was the first approved transaction adviser was rejected due to its outrageous demands that included opening an escrow account, refusal to pay tax and demand for 75 percent up front payment.

He said the transition period between the old transaction advisers and the new ones took another 13 months, which also delayed the process. Sirika, who spoke at the fifth aviation stakeholders’ forum in Abuja, also disclosed that another major factor that stalled the process was the inability of the Federal Government to provide sovereign guarantee for the procurement of 30 airplanes estimated at $300 million in a staggered payment till 2020. According to the minister, “Estimated funding requirement for the establishment of the project is $300 million up to 2020. Initial start–up capi-

tal of $55 million made up of $25 million for deposit for new aircraft and $30 million for working capital from June to December 2018. “Estimated working capital for year 2019 is $100 million, estimated working capital for year 2020 of $145 million is to be provided by the strategic equity partners who are expected to manage the project. “Already, IsDB, AfDB, AFREXIM, US-EXIM, Standard Chartered Bank, Boeing, Airbus, COMAC/CCECC, BOAD, China-Exim, Qatar Airways, Ethiopian Airlines, Deutche Infrastructure Finance, French and US governments have indicated interest in the project.”

He explained that the name of the national carrier ‘’Nigeria Air‘‘ was obtained by engaging the general public through social media campaign where over 400,000 persons engaged within one week of campaign on Facebook. He noted that no foreign company was paid $600,000 for the design of the logo as speculated, adding that due process was followed in the branding, which included obtaining ‘’No Objection’’ certificate with Ref. No.BPP/RPT/18/VOL.1/075 from the bureau of public procurement for the sum of N50,893,000.00 and payment for these services is yet to be made.

igeria has been re-elected into the Council of the International Telecommunications Union (ITU). The election was the highpoint of the Plenipotentiary Conference currently holding in Dubai, United Arab Emirates (UAE). The 20th Plenipotentiary Conference of the Council also re-elected ITU secretary-general, Houlin Zhao, for another term of four years. Nigeria and the countries elected to the Council will begin another four-year term from January 2019. The 153-year old ITU is an agency of the United Nations (UN) set up to coordinate telecommunication operations and services throughout the world. Originally founded in 1865, as the International Telegraph Union, the ITU is the oldest existing international organisation and headquartered in Geneva, Switzerland. Nigeria became a member of ITU on November 4, 1961. USA joined on July 1, 1908; United Kingdom, February 24, 1871, and UAE on June 27, 1972. The ITU is governed by the Plenipotentiary Conference, which is the supreme organ of the Union, which elects its senior officials, the 48 members of its Council and its 12 members of the Radio Regulations Board. It also determines the direction of the Union and its activities over the following four years. The ITU Council body of the union between Plenipotentiary Conferences, which take place every four years.

ll is set for the smooth take off of the second edition of the Alaghodaro Summit, which begins today in Benin City, the Edo State capital. Special adviser to the Edo State governor on media and communication strategy, Crusoe Osagie, said the excitement was palpable everywhere in the state as Governor Godwin Obaseki showcased the impact of government on Edo people in the last two years. The governor’s aide said, “The interesting thing about this year’s Alaghodaro Summit is that it is about Edo people and residents. The last edition was an investment summit and that was why we had big-ticket investors from all parts of the world converge on Benin City, in November last year.” Osagie said, “Last year’s investment summit broke the ice for the influx of investors, which the state has continued to witness across all sectors. “For the 2018 edition, we are going to have a people’s summit that will bring all Edo people and residents together in one place, face-to-face with their governor.” He explained, “From the theme of the summit: ‘Edo of Our Dreams - Investing in Our People,’ you can tell that the focus is on the people; the farmer, the vulcaniser, the market men and women, drivers, young people, those in the organised private sector and the unemployed and everyone.” He maintained that reports from hotels and rest houses in the city showed that they were fully booked due to the increasing human traffic into the city for the annual summit.

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Polaris Bank hosts breast cancer survivors, pledges more support OBINNA EMELIKE

olaris Bank has demonstrated its support for breast cancer survivors in Nigeria by hosting 50 of them to an endof-year get together. Speaking at the function held during the week in Lagos, Tokunbo Abiru, group managing director/CEO of the bank, said the love and care demonstrated to breast cancer patients and survivors had enormous positive influence on their physical and mental wellbeing. Abiru, who was represented by Segun Opeke, the directorate head, Lagos Business of the bank, said safety and healthcare were one of the pillars of Polaris Bank’s Corporate Social Responsibility (CSR). He affirmed that the bank in partnership with its CSR partner, Care Organisation Public Enlightenment (C.O.PE), would continue to ensure reduction of breast cancer scourge in the country through increased awareness, advocacy and support for both patients and survi-

vors. “For us at Polaris Bank, our commitment to the fight against breast cancer is unwavering. We have consistently demonstrated this by drawing public awareness to the menace in addition to sponsoring free screening for women in conjunction with C.O.PE Foundation,” he said. He revealed that over the last 10 years, the bank in partnership with C.O.PE had covered four key milestones - prevention, detection, treatment and advocacy. These include provision of free screening opportunities for over 15,000 women including female staff members of the bank, and the donation of two ultra-modern breast cancer-screening machines (LogiQ C2 and Mind Ray Ultra-Sound System) to enhance quality diagnosis and clinical practices. Also speaking, Ebunola Anozie, president/CEO of C.O.PE, said the get-together was a platform to thank God for the life of the survivors and to appreciate the bank for its support to breast cancer patients in Nigeria.

Wike, Ikpeazu lead Ohafia investors in N500m development projects in PH IGNATIUS CHUKWU

wo governors, Nyesom Wike of Rivers State and Okezie Ikpeazu of Abia State will lead the way on November 10, as Ohafia residents in Rivers State roll out N500 million fund to execute development projects in Port Harcourt. The star project in the N500 million fund is a civic centre to be built in Port Harcourt to boost revenue for the Ohafia Improvement Union (OIU) as the Ohafia people said they were poised to put back to the state that had so far treated them well. “This is where we live and make a living. We must put something down to show that, yes, Ohafia people passed this way,” the president of OIU, Stone Kalu, told newsmen.

Others expected to back up the two governors include Abia State deputy governor, Ude Oko Chukwu; commissioners of culture and tourism in both states; chairmen of Obio/Akpo and Port Harcourt local councils, the senator, Mao Ohuabunwa representing Abia North; Uko Nkole from the House of Reps for Aro/Ohafia federal constituency; Ifeanyi Uchendu representing Ohafia South constituency; and other great Ohafia sons and daughters across the globe. Declaring the projects and programmes expected to cement the relationship with the host state, Kalu said at Amazing Lights on Rumuola Road near Lilly’s Place that the Ohafia residents were poised to revive culture because its demise in the lives of the present generation had led to cultism.

R-L: Muyiwa Olugbile, national president, Lagos State Polytechnic, Alumni National Association; Bisi Onasanya, former GMD/ CEO, First Bank of Nigeria plc, and Biyi Oyetade, rector, Lagos State Polytechnic Business School, during inspection visit to his Alma mater, Isolo Campus where he donated ICT Accountancy Laboratory equipped with computers on behalf of his set (Accountancy 79/83) in order to aid learning in technology compliance in the school, yesterday

Rising demand, high yield hold out opportunities for investors in student accommodation CHUKA UROKO

ncreasingly, student accommodation is gaining traction in the Nigerian property market with rising demand and high returns on investment, throwing up opportunities for investors, BusinessDay findings show. These opportunities go beyond just providing the physical structure called hostels as provisions are also made for students feeding, laundry, mini-shopping and a lot more, which require vendors, sundry suppliers and attendants. This new investment frontier is driven largely by fastpaced increase in student population, which, obviously, is a reflection of the Nigerian population growth. United Nations in its October 31,2018 estimates, put Nigeria’s population at 197.4 million - an equivalent of 2.5 percent of the total world population. The country has annual growth rate estimated at 2.6 percent.

Unity Bank, Daystar Power cooperate to move branch network to solar power

nity Bank has agreed to work together with Daystar Power in moving the power supply of Unity Bank’s branches across Nigeria from diesel generation to cleaner and more efficient solar powered solutions. Unity Bank has 240 business offices across the country. The bank is driven by the vision to be the retail bank of choice for all Nigerians, and the move to a cleaner power supply will further improve the banking experience of retail customers. Daystar Power belongs to the venture capital company Sunray Ventures of the German founders Christian Wessels and Jasper Graf von Hardenberg.

Daystar Power was founded by the venture capital financier Sunray Ventures, which has set itself the task of making a significant contribution to the electrification of the African continent through private equity investments, and thereby promoting the systematic expansion of renewable energy resources. In delivering its services, Daystar Power uses globally leading technology to provide Unity Bank with a combination of hybrid battery backed-up solar power solutions, which reduce costs as well as carbon emissions. Tomi Somefun, managing director of Unity Bank, says, “Unity Bank is dedicated to be the retail bank of

choice for all Nigerians and provide our customers with the best possible banking experience. We believe that our transition to clean solar energy solutions will not only help providing a better experience to customers visiting our branches, but also contribute to safeguarding our environment. It is part of our sustainability initiative and we are happy to be working together with Daystar Power in this endeavour.” Christian Wessels, managing director of Sunray Ventures, says, “A significant gap between required and available electricity from the grid is prevalent across Nigeria, leading to most businesses using diesel generators for most of the day.

It is also estimated that 63 percent of the country’s population are aged 30 and below and that most of them populate the country’s 133 universities, majority of which were built without adequate provision for accommodation. All these have combined to create investment opportunities in this new segment of the property market and, according to a report by MCO Real Estate (MCORE), many developers are already taking advantage of this development and getting good returns on their investment. Abayomi Onasanya, founder/CEO, Student Accommod8, confirmed to BusinessDay in an interview in Lagos recently that student accommodation is a high yielding investment asset, adding that, though it is a long term investment asset like other real estate investment assets class, investors can recoup their investment within three to five years. Munachi Okoye, CEO, MCORE, revealed that “uni-

versities are latching on to the new trend, offering land parcels to developers under a long term Build Operate and Transfer model and seeking a share of revenues in exchange. He was of the view, however, that for this new investment frontier to be attractive, it has to be sustainable, explaining that with treasury bills offering risk-free rates of up to 12 percent, allocating funds to risky green-field development does not sound so attractive”. But Onasanya differed, saying, “this investment asset gives about 22 percent returns which is more than double what commercial real estate gives, not to talk of residential real estate which gives 4-5 percent returns per annum. For this reason, we are encouraging other developers to come in.” His company, Student Accomod8, which opened for business about three years ago, has been bullish with providing students hostels. It has already provided over 400 beds across three sites with

plans to start construction on 2,500 beds across five sites. Expectation is that in the next five years, the company shall have provided 8,000 beds which, Onasanya said, was just a scratch of the surface. The company’s latest development is Cedar House, a N350 million facility comprising 140 beds situated at Pan Atlantic University campus along Lekki-Epe Expressway, Lagos. The hostel which was fully occupied before its opening, offers lifestyle living experience. What makes investment in student accommodation all the more attractive are the quick returns and the ready market with students serving as a pool of off-takers. According to Okoye, “ability to sign a long lease on land belonging to a higher institution or acquiring land adjoining a higher institution, building and charging a ready pool of student off-takers a market rent with 100 percent occupancy sounds like a real estate developer’s dream.”

Emir of Kano’s firm to invest $1.1bn in Akwa Ibom

company chaired by the Emir of Kano, Muhammadu Sanusi Sanusi 11, has announced plans to invest $1.1 billion in the exploitation of gas in Akwa Ibom State. This was disclosed during a visit of the Emir to Akwa Ibom yesterday. The Emir, who was full of commendation for Governor Udom Emmanuel for the giant strides his administration had recorded so far, said he had followed with keen interest “the tremendous transformation, not just in the infrastructural development but also in terms of peace and security,” the governor had brought to bear in the state. Part of the investment, Sanusi said, would be the

development of a gas power plant, acquired from Mobil, that will add 540 megawatts of electricity to the national grid on completion. Akwa Ibom was chosen for the investments because, according to the Emir, it has gotten all that they needed; “the Gas, the peace and the human capital”. The Emir further noted that for a country like Nigeria with estimated population of about 190 million and estimated youth population, now is the time to start building an economy that would cater to employment needs of the youthful population; noting “if we don’t get it right now, what we will have in the future will be a child’s play compared to what is hap-

pening now.” Speaking further he asked, “We don’t have money to invest in power, we don’t have money to invest in infrastructure, but we have money to subsidise petroleum products”, stressing for the umpteenth time, “We have to get rid of subsidy.” However, the Emir noted, “as a traditional ruler, my interest is less on business and more on development”. In his response, Governor Emmanuel commended the Emir for the visit to the state and more importantly for “stepping out of your emirate to go out there and source for investments”. He said further, “We want to tell the whole world that Akwa Ibom is ready for investments”.

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Friday 09 November 2018

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How Heritage Bank is financing agricultural sector for growth Hope Moses-Ashike

ver the years, financing agricultural has been a challenge among the deposit money banks in Nigeria, due to the sector’s high level of risk. However, to increase funding for the agricultural sector, the Central Bank of Nigeria (CBN), in line with its developmental functions and in collaboration with the Federal Government and Nigerian banks, established various agricultural schemes as a way of bridging the funding gap. Such interventions include the Commercial Agriculture Credit Scheme (CACS), Commercial Agriculture Development Programme (CADP), the Interest Draw-back scheme, Agricultural Credit Support Scheme, as well as the recently introduced Anchor Borrowers’ Programme (ABP). The broad objectives of most of the schemes are to fast track development of the agricultural sector by providing credit facilities to commercial agricultural enterprises at single digit interest rate; enhance national food security by increasing food supply and effecting lower agricultural produce and product prices, thereby promoting low food inflation; generating employment and diversifying revenue base. In complimenting the efforts of the Central Bank, Heritage Bank Plc has made a huge success of the schemes by making funds available to both individuals and corporate organisations in their efforts to increase agricultural output. The bank, under the headship of Ifie Sekibo, an urbane seasoned banker who is the managing director and chief executive officer, has distinguished itself in financing critical agricultural projects in the country and in the process, putting smiles on the faces of many farmers. Since the five eventful years that the bank has opened its doors to its teeming customers, the showpiece of its operations is a wide gamut of completed, on-going and nascent people-oriented programmes- create, preserve and transfer wealth across generations in the country. This line of operation is steadily yielding great results as the nation

continues to move its economic base towards the direction of the future, with robust emphasis on thoughts about diversification of the county’s economic base. Within its period of operation, Heritage Bank is being positioned into a bigger and stronger financial institution that is placed to play a big role in the much-envisaged transformation of the nation’s financial sector in line with the country’s stature as one of Africa’s largest economy. But, the country has a great challenge and a great opportunity in its hands- one of feeding its citizens and driving the nation’s economy forward. These entail harnessing of the energy and skills of the young adults in the production, processing and marketing of food for the teeming Nigerian population. Nigerian youth will find opportunities as entrepreneurs, service providers and paid workers in a sector – agriculture that is gaining as a beacon of hope for Nigeria’s troubled economy. Heritage Bank’s agricultural intervention initiatives With the increasing recognition of agriculture as the ‘beautiful bride’ of Nigeria’s economy, Heritage Bank has continued to make relentless efforts in agricultural financing which is fast gaining new interests and more attention within business circles. As agriculture continues to be business, financing provides tremendous opportunities for lenders and borrowers, either at small or large scale. Heritage Bank has encouraged both government, corporate and individual (including young people to embrace optimal productivity and greatness in this sector), it has also taken the front seat in the drive to support them in the attainment of noble agricultural virtues by funding various agricultural projects in several states in the country, especially in Oyo, Kaduna and Zamfara states. This line of action has readily compelled young and vibrant minds into getting involved in providing affordable financial solutions that can help agribusiness investors in various aspects of agriculture. Presently, the bank is practically involved in preparing a good future for the youth, which is imperative, whilst recognising the need to expand the horizon of young people,

broaden their options and increase their choices. The institution realised that the youth are needed as solution providers, incubators of ideas, promoters of innovations and implementers of positive change through agriculture and entrepreneurship. However, five years of the bank’s existence have promoted renewed belief and a sense of pride in the identity of Nigeria, as a people and a country. Innate virtues of industriousness, illustriousness and entrepreneurship have been reawakened, as the youth and people have risen massively to embrace legitimate hard work in the agricultural sector as against indolence, dependence on government and servitude. This mental and attitudinal reorientation has triggered assertiveness, deliberate, creative and productive action amongst the populace towards wealth-creation and self-sufficiency via agriculture sector in the formation of Micro, Small and Medium Scale Enterprises (MSME) and entrepreneurship. Sekibo has been on the driving seat of the agricultural financing revolution going on at present in Heritage Bank. He has vowed that the bank would not relent in its efforts at boosting the agriculture base of the nation, affirming that Heritage Bank would continue to make farming profitable to stakeholders and attractive to the youth. The bank, he said, would remain

focused in supporting agribusiness through financing the purchase of modern technology, as it would bring about transformative development to the economy in general. He, however, noted that the bank would support the drive for cash crop commodities that would boost Nigeria’s foreign exchange earnings, which the President Mohammad Buhari’s administration has always been cautious given the dangers the continuous reliance on imported food items pose to its efforts to create jobs as well as develop and diversify the economy. For its enormous supports to this sector, Heritage Bank Plc, Nigeria’s most innovative banking service provider in 2017 was bestowed with the inaugural Nigeria Sustainable Banking Award convened by the CBN “For Sustainable Transaction of The Year in Agriculture” Again, the Nigeria Agriculture Awards (NAA), at its annual event convened by AgroNigeria (The Voice of Nigeria’s Agriculture), to appreciate immense efforts of those who have contributed to the success of the agriculture sector in the country, announced Heritage Bank as the Agric Bank of the Year. According to NAA, Heritage Bank was selected in recognition of its footprints in the Agric. space, especially the Triton Aquaculture Project. Heritage Bank collaborate with CBN to provide loan for aquaculture, reforestation projects In a bid to further support the real sector and unlock food potentials, Heritage Bank Plc in collaboration with CBN provided N2 billion long term facility under the Commercial Agriculture Credit Scheme (CACS) to Triton Aqua Africa Limited (TAAL). TAAL known as Triton Farm accessed the CACS through Heritage Bank, which was used to set up aquaculture businesses; nursery/hatchery to produce fingerlings and brood stock in Ikeja and earthen ponds for catfish and Tilapia in Asejire, Iwo and Gambari towns in Oyo State. The company’s strategy is to embrace backward integration through production of fish locally and reduce its importation of frozen fish and as well to assist small scale farms by producing quality breed fingerlings. Under the arrangement, TAAL will also help small-scale farms

increase their fish production by making fingerlings available to them. In the short term, the loan is expected to help Triton double its current production capacity of 25,000 metric tonnes with a projection to scale it up to 100,000 metric tonnes in five years. The bank also has thrown its weight behind Globus Resources Limited, a subsidiary of Triton Group, to flag off the second phase of afforestation programme in Oyo state. Nigeria’s current demand capacity for fish is estimated at 2.7million metric tons and the country currently produces 800,000 metric tons. Triton is now producing 25,000 metric tons and with them on board, about 25,000 metric tons capacity will be added to our current production, the company’s projection is to reach 100,000 metric tons in five years. Bank in multi-billion Naira partnership with Oyo State government Heritage Bank is in partnership with the Oyo State Government in a multi-billion-naira project to give agriculture a boost in the state. Under the initiative, the bank is supporting the Oyo State Agricultural Initiative, OYSAI, a programme designed to revive agriculture, boost agro-allied businesses and massive empowerment programme for both youth and women across the state through the creation of thousands of jobs in the sector. This huge, albeit laudable, project that is spread across 3,000 hectares of land in 28 of the 33 Local Government Areas of Oyo State, is in three stages: food crop cultivation, cash crop/horticulture and food processing. Heritage Bank is supporting agro investors involved in this initiative with funds and advisory services and indications are that the programme has already led to more than 30 per cent increase in food production in the state. Support of small holders’ farmers in Kaduna and Zamfara in rice/ soyabeans production under ABP Heritage Bank has also supported thousands of small holder farms in Kaduna and Zamfara states to benefit from the bank’s financial support for rice and soya beans production under the Central Bank of Nigeria’s Anchor Borrowers Programme (ABP).

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Highlight of the news reports on our digital platforms this week

Best five stories this week Minimum wage, maximum trouble

market business across frontier markets, Ali Khalpey, the chief executive officer of the companyâ&#x20AC;&#x2122;s frontier unit, said in Dubai.

What started off on a friendly note in 2017 between the Federal Government and organised labour with the constitution of a 30-man tripartite committee to negotiate and arrive at a new national minimum wage for workers in the country is turning a big fight.

For more visit our website at businessdayonline.com to catch up on full news stories.

Oshiomhole carpets Okorocha, Amosun as Uzodinma, Dapo make INEC list Adams Oshiomhole, National Chairman of the ruling All Progressives Congress, APC has described the outbursts of Governors Rochas Okorocha of Imo State and Ibikunle Amosun of Ogun state against him as the rantings of defeated men.

Minimum Wage: FG fails to stop labour from starting strike Tuesday Senate President, Bukola Saraki, on Wednesday announced the reshuffling of heads of four standing committees in the Senate.

EFG-Hermes to get Nigerian investment banking license Egyptian financial services giant, EFG Hermes anticipates getting an investmentbanking license in Nigeria next week, as part of its plans in expanding its capital

POLL RESULTS: BusinessDay asked our digital audience this question: In terms of having a president younger than 50, who would you, be willing to vote for? 8% of Nigerians chose Thomas-Wilson Ikubese, 48% chose Fela Durotoye, 31% chose Omoyele and 13% chose Ahmed Buhari as their best under fifty choice of a president.

Poll of the week

The Federal Government on Sunday failed to stop the organised labour from commencing its nationwide strike from Tuesday, November 6.

Video of the week

Saraki reshuffles Senate committees, axes Buhariâ&#x20AC;&#x2122;s loyalist Tweet of the week

Cartoon of the week

Politics & Policy Friday 09 November 2018

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2019: APC targets 2 million votes in Lagos …As Sanwo-Olu, Salvador reconcile aggrieved party members Iniobong Iwok

he ruling All Progressives Congress (APC) has said it was targeting two million votes in Lagos State toward the electoral victory of President Muhammadu Buhari and Babajide Sanwo-Olu, its gubernatorial candidate in the state. Newly inaugurated Lagos South West campaign Director-General for Buhari/Osinbajo and SanwoOlu campaign organisation in the state, Moshood Salvador, made the remarks during the inauguration of the campaign office and reconciliation meeting of the party in Maryland, Lagos, noting that he would strategise to give the party the desired victory at the polls. Salvador, who was a former Lagos State chairman of the main opposition People’s Democratic Party (PDP) in the state, stated that members of the party had agreed that the reconciliation of all aggrieved members was necessary for a successful victory at the forthcoming general election in the state.

Moshood Salvador

“The challenge before me is to make sure Sanwo-Olu wins in Lagos State with landslide victory and President Buhari is returned. It is an assignment given to me and I can assure you that it will be delivered,”

Salvador said. “APC has not been able to maximise its capacity. I will bring my experience to bear to ensure it performs maximally at the forthcoming elections. My target is to get two

million votes for APC during the governorship election in Lagos,” he further said. “I am appealing to all APC aggrieved members to shield their swords. Remember that we are working for the victory of the party; the party is above any one individual, so we must put the party’s interest first,” Salvador said. In his remarks, Babajide SanwoOlu, pledged to operate an allinclusive government if elected, stressing that he would like all aggrieved members to work towards the victory of the party in the state and the federal. Sanwo-Olu stressed that the victory of the party in 2019 would not be for him alone but all members, noting that he had extended an olive branch to everyone who felt cheated or short-changed in the recent primaries of the party in the state so that they could work as a team in next year’s general election. “We will campaign together, get victory for Lagos State and get victory for President Muhammadu Buhari and for all other contestants; that is our target and we will achieve that if we work as a family,” Sanwo-Olu said.

2019: PDP accuses APC of desperation Iniobong Iwok

s the 2019 general election approaches, the Lagos State chapter of the People’s Democratic Party (PDP) has accused the ruling All Progressives Congress (APC) of desperation and pre-election vote-buying. The PDP in a statement signed by its Publicity Secretary, Taofeek Gani, said that the recent visit of the Vice President, Yemi Osibanjo, to the African shrine was an obvious manifestation of desperation jitters and want of vote, stressing that the vice president is not on record to have ever associated with the African shrine. The statement further, described the visit of the vice president to certain markets in the state to physically share N10, 000 to traders, in the name of trader-moni empowerment as clear action of pre-election votebuying, adding that it was confident that Lagosians will vote out the APC in 2019, urging the traders and other

CSOs laud INEC for removal of polling units from private homes in A/Ibom ANIEFIOK UDONQUAK, Uyo

ivil Society Organisations (CSOs) in Akwa Ibom have commended the Independent National Electoral Commission (INEC) in the state for its removal of polling units from private residence, saying that by “that singular act, it has set the stage to deepen democracy in the state.” The commission said recently that it has relocated 22 polling units from private homes in the state as part of measures to ensure free and fair election next year. Harry Udoh , chairman of CSOs forum in the state alleged that “illminded people had in the past used the illegal polling units to perpetrate

electoral fraud,” adding that the relocation of the polling booths to public spaces would ensure that people have access to the units, thus ensuring that citizens participate in the coming elections. Udoh, who decried vote-buying by politicians, said the organisations

have commenced door-to-door campaign to sensitise the electorate on dangers of mortgaging their future and that of the nation. “For us at the civil society organisations forum, we will keep engaging the electorate to ensure that we educate the masses not to sell their votes. We will keep at it until the people know that they should not sell their votes. We will keep at it until we get to the place where elections are issue-based and the people will be able to interrogate the politicians to elect the people of their choice,’’ he said. Udoh alleged that previous elections in the state and the country in general were marred by massive rigging, violence, and voter intimidation, adding that votes were awarded to the

winners of the 2015 election. “We had instances where people used to thumbprint on ballot papers and they got tired and they had to use kernel to thumbprint,” he said. He condemned threats of war by politicians, saying election is no war and that seeking election should be about service and not a do-or-die affair. Meanwhile, the Integration and harmonisation committee of the People’s Democratic Party (PDP), Akwa Ibom State, has reaffirmed its commitment to tackle issues raised by aggrieved members of the party. Patrick Ekpotu, its chairman, said in Uyo, the state capital, that the committee has opened various lines of communication with the aggrieved party men and women in the state for quick resolution of their grievances.

INEC to deploy 1, 825 staff for Kwara by-election SIKIRAT SHEHU, Ilorin

he Independent National Electoral Commission (INEC) in Kwara State has said it was deploying a total of 1, 825 electoral staff for the scheduled Nov. 17 House of Representatives by-election in the state. Garuba Madami, the State Resident Electoral Commissioner (REC), disclosed the figure in his remarks at a stakeholders’ meeting in Omu-Aran, Irepodun Local Government Area of

the state. The meeting that took place at Government Secondary School, Omu-Aran Hall of Fame, was at the instance of INEC to interact with stakeholders ahead of the election. The by-election is in respect of Ekiti, Isin, Irepodun and Oke-Ero Federal Constituency following the death of Funke Adedoyin, who was occupying the seat on the platform of the All Progressives Congress Party (APC). According to Madami, 1, 532 of the ad-hoc staff would be corps members while the rest are officials of the commission and other categories

of workers. Madami, while giving the breakdown of the election statistics across the four local government areas said the councils consist of 42 Registration Areas (RAs), 330 Voting Units and 383 Voting Points. He gave the total number of already collected Permanent Voters Cards (PVC) across the councils as 122, 656 leaving a balance of 46, 700 yet to be collected. The INEC boss, who expressed disappointment at the low level of PVC collection in the state, urged party

leaders, traditional rulers and other stakeholders to rise up to the occasion. He described the by-election as a litmus test for both the Commission and the contending parties ahead of the 2019 general election, saying all eyes are on all stakeholders to deliver accordingly. Oba Abdulraheem Adeoti, the Olomu of Omu-Aran, represented by Chief Jide Adebayo, the Eesa of Omu-Aran, on his part, appealed to the stakeholders to join hands with the commission and security agencies in achieving the desired success.

Taofeek Gani

groups to collect such monies but vote according to their conscience. “The recent visit of the vice president to the African shrine is obvious manifestation of desperation and jitters as the vice president is not on record to have ever associated with the African shrine, but now running helter-skelter to visit shrine for want of votes”, the statement said. According to the Lagos PDP, “The visit of the vice president to certain markets in the state to physically share N10, 000 to traders, in the name of trader-moni empowerment was a clear action of pre-election votebuying as the gesture at this period is tainted with intent to buy the conscience of the traders to vote APC in the state.” The PDP further urged former governor of the state and current Minister of power, works and housing, Babatunde Fashola, to not only confess that he has been refusing requests to fund Buhari’s re-election, but that the minister should also confess his monumental financial support to President Muhammadu Buhari campaign team in 2015.

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Simon Schama on the battle for America Page A4

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Trump pushes out Sessions in midterms aftermath Forced departure raises questions about the future of Mueller’s Russia investigation Kadhim Shubber

onald Trump has forced out his attorneygeneral just a day after the midterm elections in a move that placed a question mark over the justice department’s investigation into possible links between Russia and his 2016 presidential campaign. Jeff Sessions submitted his resignation on Wednesday as the US digested the results of Tuesday’s vote, which gave Democrats control of the House of Representatives and left Republicans with an increased majority in the Senate. The former Republican senator from Alabama said in a letter to the president: “At your request, I am submitting my resignation.” Mr Sessions’ departure had been long expected and comes after months of public criticism from Mr Trump towards his former attorneygeneral, who had infuriated the president by recusing himself from the Russia investigation led by Robert Mueller, the special counsel. In a press conference earlier on Wednesday, Mr Trump dismissed questions about whether he would try to shut down the Russia probe and warned Democrats that if they mounted investigations of their own into his affairs and his administration, that he would respond in kind. He told reporters he could have ended the special counsel’s work “any time I wanted. I didn’t. There was no collusion. There was no anything”, and deflected when asked about the attorney-general, whose resignation would be revealed barely hours later. “I’d rather answer that at a little bit different time,” he said.

Rod Rosenstein, the deputy attorney-general, has been overseeing the probe and was considered a stalwart protector of Mr Mueller’s independence, even as the former FBI director secured guilty pleas from four previous aides and advisers to Mr Trump. Mr Sessions’ departure means his temporary replacement, Matthew Whitaker, who was his chief of staff, will oversee the Russia investigation. “The acting attorney-general is in charge of all matters under the purview of the Department of Justice,” said Sarah Isgur Flores, a department spokeswoman. Mr Whitaker is a former US attorney whose Twitter includes a picture of him lifting weights and who has been publicly critical of Mr Mueller’s investigation. Last year Mr Whitaker mused that a successor to Mr Sessions would not have to fire Mr Mueller to hobble the investigation, and could instead

choke off his budget. “So I could see a scenario where Jeff Sessions is replaced . . . and that attorney-general doesn’t fire Bob Mueller but he just reduces his budget to so low that his investigations grinds to almost a halt,” Mr Whitaker said on CNN in July 2017. The following month, he wrote an opinion piece calling for Mr Rosenstein to rein in Mr Mueller, warning that the investigation would otherwise “start to look like a political fishing expedition”. He wrote that any investigation into Mr Trump’s or his family’s finances was beyond the scope of Mr Mueller’s appointment. Mr Whitaker also shared an article titled: “Note to Trump’s lawyer: Do not co-operate with Mueller lynch mob” on Twitter, adding “Worth a read”. Mr Trump’s decision to push Mr Sessions out even as votes continued to be counted in some Senate

and House races drew criticism from Democratic lawmakers who warned the president against restricting Mr Mueller’s probe. “Whitaker should come before the Senate Judiciary Committee as soon as possible and make a firm commitment not to interfere in the investigation, to include restricting the investigation or making changes in personnel,” said Dianne Feinstein, the ranking Democrat on the Senate judiciary committee. “The special counsel’s work is critical and important. It must not be touched, abated or changed in any way.” Jerrold Nadler, the Democrat who is set to become chairman of the House judiciary committee pledged to investigate the circumstances of Mr Sessions’ removal. “We will be holding people accountable,” he said on Twitter. Chuck Schumer, the Democratic leader in the senate, called on Mr Whitaker to recuse himself given

“his previous comments advocating defunding and imposing limitations on the Mueller investigation”. The ousting of Mr Sessions comes as the Russia probe is believed to be moving towards completion after a relatively quiet period in the run-up to the midterm elections. Mr Mueller has brought indictments against Russians that covered the hacking of the Democratic National Committee and Russia’s alleged influence operations during the 2016 presidential campaign. He also won guilty pleas from six individuals, four of whom were former Trump aides and advisers, for conduct including lying to the FBI and bank fraud. The question remains whether he will bring charges against figures close to or in Mr Trump’s campaign that allege collusion with the Russians. Mr Mueller is also investigating whether Mr Trump attempted to obstruct the probe.

Banks race to make money on trade finance platforms

China exports to US grow despite Trump’s tariffs

Blockchain promises big returns for $16tn industry but revenues remain elusive

Gabriel Wildau

Don Weinland

hen Texas-based Tricon Energy wanted to buy polymers from India’s Reliance Energy, the two companies avoided the usual rigmarole of phone calls, couriered documents and emails by logging on to a new blockchain system called Voltron. Within minutes they had completed negotiations on the terms of the sale and then secured a letter of credit and advice from lenders ING and HSBC to complete the transaction, which was finalised on Friday. This was one of the first examples of a real-life trade deal being handled by one of many new platforms being developed by banks to use blockchain technology— which underpins cryptocurrencies such as bitcoin — to save money and time in the centuries-old trade finance market.

HSBC, Standard Chartered, Bank of China, Deutsche Bank, Société Générale and UBS, among many others, are looking to a handful of platforms to help speed up, simplify and reduce risk in the $16tn in global trade done annually. After several years of development work and testing, the first real-life transactions passing over these systems indicate that banks are getting closer to their goal of starting to make money from the investments they have patiently bankrolled. Trade finance is still mostly based on paper, such as bills of lading or letters of credit, being sent by fax or post around the world, and seems to many bankers to be crying out for modernisation. Combining shared databases and cryptography, blockchain Continues on page A11

Imports from US shrink, strengthening Beijing’s resolve to resist concessions

hinese exports to the US grew strongly last month while imports shrank, defying predictions that American tariffs would hit demand for Chinese goods and force Beijing to the negotiating table. The data could strengthen Beijing’s resolve to resist concessions that would enable an agreement with the US when presidents Donald Trump and Xi Jinping meet at the G20 summit in Argentina late this month. Chinese goods exports to all countries grew 15.6 per cent in October in US dollar terms from a year earlier, while imports rose 21.4 per cent, according to Chinese customs data. Both figures exceeded expectations and marked an acceleration from the January-to-September period. Speaking at an international import fair in Shanghai on Monday, Mr Xi struck a combative tone, lambasting a “law of the jungle” approach

to trade — a clear reference to Mr Trump’s tariffs. The latest figures also highlight how a weaker renminbi and a red hot US economy, fuelled by Mr Trump’s tax cuts, are overwhelming the impact of tariffs. Chinese exports to the US — which account for about a fifth of total Chinese exports — rose 13.2 per cent in October from a year earlier. Analysts said that part of the explanation for strong exports to the US is front-loading of shipments in anticipation of Mr Trump’s threat to raise tariff rates on $200bn worth of Chinese goods to 25 per cent from the current 10 per cent in January if no deal is reached. “While this [strong exports to US] was in part driven by expectations for higher tariffs starting from January 2019, which encourages exporters to rush through orders to the US, this is obviously not the whole story,” Louis Kuijs, head of Asia economics at Oxford Economics in Hong Kong, wrote on Thursday. “Chinese ship-

ments to the US are benefiting from robust US demand.” The weaker renminbi also raised China’s export competitiveness. China’s central bank intervened in foreign exchange markets last month to strengthen the renminbi — a sign that authorities were not seeking a weaker currency. But the scale of such intervention is more modest than during previous bouts of depreciation, indicating that Beijing is willing to tolerate moderate depreciation. China’s currency has depreciated 5.7 per cent against the dollar this year and 2.7 per cent against a trade-weighted basket of global currencies. In contrast to rising Chinese shipments to the US, imports from the US contracted by 1.8 per cent last month. The decline partly reflects the higher concentration of US exports to China in a few commodities such as soyabeans, where China has shifted aggressively to non-US suppliers.

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FT Banks race to make money....

US agrees on talks to remove Sudan from terrorism list

Continued from page A10

technology allows multiple parties to have simultaneous access to a constantly updated digital ledger that cannot be altered. Banks hope the decentralised nature of the technology, which draws on and verifies information from thousands of different sources, will eliminate vast piles of paper documents and unlock up to $2bn in extra financing business within eight years. Yet getting viable businesses off the ground has proved challenging. The platforms are struggling to link up with the diverse range of parties that participate in global trade, many of which are developing their own technology. Shipping companies such as AP Moller-Maersk and Hyundai Merchant Marine are testing their own systems, which are not guaranteed to mesh with those of the banks. When banks invest in new systems, they traditionally expect to see returns within defined periods of time, or at least be able to predict when the first revenues will be generated, said Sen Ganesh, partner at consultants Bain & Company. A timetable for returns from blockchain trade finance, however, has proved uncertain. “There’s a race to commercialisation now,” said Mr Ganesh. “After a year of proof of concepts, there is a lot of pressure to make money.” The ability to eke out early returns on a system could depend on which segment of the trade industry it is focused on. Documentary trade, which includes letters of credit and involves banks taking on payment risks for the buyers of goods, already has a high level of standardisation that makes it more difficult to disrupt, said Alessio Botta, a partner at consultants McKinsey. But supplier-originated finance, in which suppliers sell their accounts receivables to generate liquidity, has no common standard and platforms focused on this business are expected to find higher demand for new products, Mr Botta said. “The area where blockchain is going to succeed will be different between these areas,” he said. “Banks are hedging on more than one platform.” The Voltron platform, backed by eight banks, announced in May that it had moved from tests to live business, executing a soyabeans trade for US agricultural group Cargill. The system focuses on documentary trade products such as letters of credit. Marco Polo, a platform designed for receivables financing and backed by another group of lenders, plans to launch this year. At least six other competing systems are expected to go into production this year or in 2019. We.Trade , backed by a group of European banks, and the Indian bank-backed Finacle Trade Connect, for example both do invoice finance. Large sums are at stake. Global annual revenues for documentary trade finance are about $25bn, while supplier-originated finance comprises another $25bn-$30bn, McKinsey estimates. Bain & Co predicts new products for documentary trade will boost annual revenues for banks by $2bn by 2026, while driving up trade volume by $1.1tn.

A11

Khartoum keen to reintegrate with international community and revive faltering economy

Tom Wilson

T Robyn Denholm in a Telstra YouTube video

Tesla picks Robyn Denholm to replace Elon Musk as chair Founder of electric car maker to step aside after settlement with US securities watchdog Jamie Smyth and Alice Wood

esla has picked one of its board directors, Robyn Denholm, to be the new chair of the electric carmaker to replace founder Elon Musk. Mr Musk agreed to leave the role as part of a settlement with the Securities and Exchange Commission lawsuit over claims he broke securities laws in August with a Twitter post saying he had “funding secured” to take Tesla private. He will stay on as chief executive. The appointment of Ms Denholm, currently chief financial officer of Telstra, is effective immediately. After a six-month notice period at Australia’s biggest telecoms group, she will work full-time as Tesla chair. “Robyn has extensive experience in both the tech and auto industries, and she has made significant contributions as a Tesla board member over the past four years in helping us become a profitable company,” Mr Musk said in a statement. Ms Denholm has been an independent director at Tesla since

2014. “I believe in this company, I believe in its mission and I look forward to helping Elon and the Tesla team achieve sustainable profitability and drive long-term shareholder value,” she said. In a statement, Tesla added: “To ensure a smooth transition during the remainder of Robyn’s time at Telstra, Elon will be a resource to Robyn and provide any support that she requests in her role as chair.” Ms Denholm, 55, has experience of working in the US and Australia across a range of technology companies, including Telstra, Juniper Networks and Sun Microsystems. An Australian, she worked in a finance management role at Toyota, the carmaker. She has spent just under two years working at Telstra, playing an important role in helping to restructure the former state telecoms operator in the face of tough competition in its domestic market. Over recent weeks Ms Denholm had fielded questions from Australian media about her ability to juggle her commitments as a Telstra executive and her position

on the board of Tesla, which has been in crisis mode for several months. Telstra is in the midst of a major turnound plan, which involves shedding a quarter of its 32,000 workforce, disposing of A$2BN in non core assets and splitting its infrastructure arm into a separate division. “Telstra chief executive Andy Penn has relied on Denholm to help him implement the company’s change programme. She will be a loss,” said Ian Martin, analyst at New Street research. Ms Denholm holds a bachelors degree in economics from the University of Sydney and a masters degree in commerce from the University of New South Wales and is a Fellow of the Institute of Chartered Accountants. She is one of two women on the board of Tesla. Last month, the Financial Times that reported James Murdoch was a leading candidate to become chairman of Tesla, and was interested in securing the position. Mr Musk responded with a terse Twitter post: “This is incorrect”.

Google plans Amazon-scale expansion in New York City Tech giant’s renewed push could double number of staff there to sustain headlong growth Richard Waters

oogle is planning a major expansion in New York that would more than double its staff numbers there in the latest vote of confidence from a big tech company in the city, alongside an expected big investment by Amazon. The search company is in negotiations to take a lease on a new development in the city’s West Village neighbourhood. Earlier this year, Google greatly added to its real estate holdings in New York after paying $2.4bn for nearby Chelsea Market, a former biscuit factory-turned-shopping mall and office complex. Together, the new buildings could add close to 12,000 people to Google’s headcount in the city and take the total number of its workers there close to 20,000. News of the expansion was first reported by The Wall Street Journal. If completed, the company’s expansion in New York would

leave it not far short of the 25,000 jobs that Amazon is looking to bring to a different part of the city, though the stealth way in which Google has handled its expansion stands in stark contrast to Amazon’s heavily publicised move. The ecommerce company began a high-profile search a year ago for a location for what it said would be a second headquarters that would eventually hold 50,000 workers and have equal status to its existing base in Seattle. In contrast to that, it is now closing in on making investments in two cities that would divide the staff, turning the new locations instead into large satellites of its head office. Like Amazon, Google’s headlong growth has brought the need for giant new facilities that extend its domestic reach well beyond its current headquarters. That has led to the search for locations with enough space to house large numbers of staff in proximity, along with the chance to tap into new labour markets. Last year, Google revealed

plans for a campus for 20,000 workers in San Jose, not far from its headquarters in Silicon Valley. Amazon’s “beauty contest” was widely seen as a way for the company to play cities off against each other and maximise the financial incentives to the company. By contrast, the mayor of San Jose, Sam Liccardo, bragged on Twitter this week that Google was “paying full freight on land, fees and taxes” for its development in his city. However, the search company will benefit from billions of dollars in new transport infrastructure that will help the Diridon Station area of San Jose, where it is planning to locate. The investments, which were planned before Google’s announcement and will also benefit other cities in region, will include a new commuter train link from the East Bay area of San Francisco and a high-speed rail link reaching down into California’s Central Valley, part of a plan to relieve overcrowding in the region.

he US and Sudan have agreed to begin official negotiations to remove the former pariah state from a list of state sponsors of terrorism, a move that could help the African country to reintegrate with the international community and revive its faltering economy. Al-Dirdiri Mohamed Ahmed, Sudan’s foreign minister, met with representatives from the state department in Washington this week during which the two parties agreed to begin formal talks, an official from the department said. The negotiations follow a first phase of dialogue that led to the US lifting a 20-year-old embargo on trade with the Sudanese government in October 2017. Sudan has been on the list of state sponsors of terrorism since 1993, when its Islamist government led by current President Omer al-Bashir was accused of harbouring terrorists, including Osama bin Laden. The al-Qaeda leader lived in Sudan from 1991 until 1996. The US increased pressure on Khartoum in 1997, introducing sanctions that stopped American companies from trading with Sudan and made it complicated for any foreign business to deal with the country. Those sanctions were lifted last year but Sudan was left on the list of state sponsors of terrorism, alongside Iran, Syria and North Korea. A spokesperson for the Sudan’s foreign ministry confirmed that Mr Al-Dirdiri was in the US for talks but could not immediately comment on their progress. In an interview in the Sudanese capital last week, Mr AlDirdiri told the Financial Times that removing his country from the US terror list was the government’s principle foreign policy objective. “We have already engaged with them and we are very hopeful that we will, soon enough, be right on track,” he said. Sudan had hoped that the end of the sanctions programme last year would normalise business relations between the country and the west. But many financial institutions have remained reluctant to deal with the country and most international transactions remain difficult, though they are no longer prohibited. As a consequence, the economy has continued to suffer. The Sudanese pound has fallen 85 per cent against the dollar since the start of the year and inflation reached 68 per cent in September. Removing Sudan from the list of terrorism sponsors would help to convince international banks to transact with the country and enable the government to engage with the International Monetary Fund on matters of debt relief and budgetary assistance, Mr Al Dirdiri said.

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ANALYSIS Awakening of Spain’s far-right fringe unsettles mainstream parties Vox leader says party’s anti-immigration ideas have become more relevant Michael Stothard

“ Washington unnerved by China’s ‘military-civil fusion’ The US is trying to prevent the transfer of AI-powered dual-use technologies that can be adapted for weapons Kathrin Hille and Richard Waters

he two men posing for photographs in a Nanjing conference room could not have more different backgrounds. On one side was Mao Yongqing, head of the 28th Research Institute of China Electronics Technology Group, which develops electronic warfare technology for the People’s Liberation Army. On the other was Yin Shiming, vice-president of cloud computing at Baidu, one of China’s privately owned internet groups. Mr Mao is one of a small group of state cadres entrusted by China’s leader Xi Jinping with pushing the military into the era of artificial intelligence. Mr Yin is an engineer who built his expertise at some of the most important western tech companies, including Apple. But at the ceremony this year, they smiled and lifted a red silk scarf to unveil a bronze plaque that declared CETC and Baidu to be partners in a “joint lab for intelligent command and control technology” — the facilities that are used to direct military operations. Mr Mao lauded the deal as an implementation of “military-civil fusion”, an instruction by the Chinese Communist party that new technologies developed by the private sector must be shared with the military, which Mr Xi had written into the constitution last year. Mr Yin said CETC and Baidu should “work hand in hand to link up computing, data and logic resources to further advance the application of new generation AI technologies in the area of defence.” The Chinese drive for this form of “military-civil fusion” is the source of nightmares for western governments and one of the motivations for the increasingly confrontational approach US President Donald Trump is taking towards China. While Washington and Beijing spar with old-fashioned warships in the South China Sea, the armed forces of both countries are also investing heavily in a new generation of weapons that they hope will give them a military advantage in the coming years. The systems they are working on, including various forms of semi-autonomous weapons, aim to take advantage of recent advances in robotics, quantum computing and AI. The fear in Washington is that the close collaboration between China’s private sector and the PLA, including allegedly underhand efforts by the state to get hold of new US technologies, is helping give Beijing an advantage in this incipient arms race. In a speech last month which crystallised the toughening US approach, Mike Pence, vice-president, accused the Chinese authorities of stealing “cutting-edge military blueprints” and said “Beijing has prioritised capabilities to erode America’s military

advantages on land, at sea, in the air and in space”. An Australian think-tank warned last week that China had sent thousands of scientists affiliated with its armed forces to western universities — many disguising their military connection — as part of its effort to build a web of research collaboration that could boost Beijing’s military technology development. As a result the AI research world, which has developed over the past couple of decades in an environment of international co-operation and free flow of ideas, is coming under the sort of scrutiny normally reserved for the weapons industry because of its potential use in both military and civilian spheres. “The dual use of this [AI] technology is perfectly aligned,” says Sean Gourley, chief executive of Primer, an AI-related start-up based in San Francisco. “Image recognition can be used for selfies or for targeting.” The Trump administration is actively seeking policy tools that would allow it to monitor and control the flow of potentially dual-use technologies out of the US. In a speech last month, Christopher Ford, assistant secretary of state for international security and non-proliferation, warned that technologies that are transferred to China by private companies could be used to threaten US national security. “Based on the explicit premises of the [Chinese Communist party’s military-civil fusion] strategy, if any given technology is in any way accessible to China, and officials there believe it can be of any use to the country’s military . . . one can be quite sure that the technology will be made available for those purposes,” he said. The controversy over AI is part of a broader concern about reciprocity in dealings with China. US officials say that while the American economy is open to outsiders, large parts of the Chinese economy are shut to foreigners. AI has developed in a different way from many earlier technologies as it is often explored in open collaboration between researchers using widely shared software tools. In the process, scientists and companies in both China and the west have become interwoven. Large numbers of young Chinese study and work in related disciplines in Europe and America. As many as 25 per cent of graduate students in science, technology, engineering and maths in the US are Chinese citizens, according to an estimate from the Pentagon. Western technology companies are heavily invested in the Chinese market and Chinese firms have been a growing source of funding for AI start-ups in Silicon Valley. Analysts argue that this co-operation is often beneficial to both sides and that if the US wants to retain its

technological leadership, it will need to continue attracting talent and funds from overseas, especially China. But they also point out that this collaborative relationship is unequal: western societies are generally liberal and open, while in the Chinese system individual researchers and private companies can frequently be made a tool of the state — and the military. “The entanglement in AI creates a dual-use dilemma,” says Elsa Kania, a fellow at the Centre for a New American Security. “Our open and liberal societies facilitate the development of AI, but the Chinese state’s single-minded pursuit of these technologies puts this same openness and freedom at risk.” In its attempt to develop new high-tech weapons, the Pentagon is trying to work more closely with Silicon Valley, setting up a west coast office three years ago called the Defence Innovation Unit to help it engage with start-ups. However, it cannot demand the same loyalty of private companies that Beijing enjoys. Earlier this year, Google said it would not continue an AI project with the Pentagon after protests by members of its staff about the idea of applying the new technologies to weapons. A study published last week by the Australian Strategic Policy Institute, a think-tank partly funded by the country’s defence ministry, found that the PLA had sent up to 3,000 scientists to universities in western countries during the past decade, sometimes under false pretences, to extract knowhow often in AI-related disciplines that could then be applied to the development of new military capabilities. Beijing has also made its mark with massive funding of AI start-ups in Silicon Valley. Chinese entities funded 10 to 16 per cent of all venture capital deals between 2015 and 2017, according to the Defence Innovation Unit. Some of these investments come with board representation and eventual technology transfer deals, the analysts say. Chinese companies have also been involved in a series of corporate partnerships that could provide insights helpful to the military. Baidu has been on the forefront of such collaboration with an artificial intelligence lab in Silicon Valley established in 2014. Huawei, the telecoms equipment maker, promised $1m for AI research at the University of California, Berkeley. Microsoft has been engaged in AI-related research and development in China for more than a decade. CETC has partnered with the University of Technology in Sydney on AI projects. Australian officials say this raises concerns as the Chinese state company is exploring — for example in its new joint lab with Baidu — how to put AI to use in command and control so that algorithms, rather than human soldiers, could make battlefield decisions.

ake Spain Great Again” was the rallying cr y when nearly 10,000 farright sympathisers filled Madrid’s Vistalegre Palace last month, waving Spanish flags in support of the antiimmigration Vox party. It was the first time Vox, founded four years ago, had packed such a big venue — and for Santiago Abascal, its leader, a further sign that the anti-feminist and nationalistic party was moving from the fringes of Spanish society towards the mainstream. “All over Europe people are looking for alternatives to the status quo,” said Mr Abascal from his Madrid office, speaking about the rise of parties such as Germany’s Alternative for Germany and Austria’s Freedom party. “In Spain it’s the same . . . all the ingredients are now there for us to triumph.” Vox remains a marginal party that is yet to win a seat in any national election. Spain has been

sures” for Spain including deportation of illegal immigrants, the repeal of a law against domestic violence, tightening abortion rules and outlawing regional pro-independence parties — an issue that has become potent after Catalan nationalists’ attempts to lead the region to secede last year. The party says it has about 10,000 paying members and 70,000 signed up to its newsletter. It is led by a colourful cast — some who have left the PP, and others who have taken less conventional routes into politics. Mr Abascal, a birdwatcher and bonsai tree enthusiast, grew up in a rightwing political family in the Basque country, which he said was under constant threat of violence from the militant separatist group Eta. It shaped his political thinking and made him a fierce opponent of regional autonomy, he added. Vox’s secretary-general, Javier Ortega Smith, used to be in the army and two years ago led a small team

notable in Europe for the absence of any Eurosceptic far-right party of any significance, even though its foreign-born population grew by about 5m from 2000 to 2010. The question is whether Vox could now make a real breakthrough. Opinion polls suggest it could secure between 2 and 5 per cent of votes at the next election, due at the latest in 2020. Mr Abascal is also eager to test Vox’s potential in European Parliament elections in May. Perhaps more important than Vox’s electoral gains is its impact on the centre-right People’s party, which is being squeezed by the centrist Ciudadanos movement, also set up in 2014. José María Aznar, the former PP prime minister, lamented the rise of Vox, saying his party was being carved up. “What was a totally united space in 2003 today is divided into three: PP, Ciudadanos and Vox,” he told the El Español newspaper. Mr Abascal believes that, with mounting fears over Islamist extremism after last year’s terrorist attack in Barcelona, and the rise in the number of migrants arriving from Africa this summer, his party’s ideas are becoming relevant. “We think we can win a few seats next election,” the 42-year-old politician said. “This would then be a jumping-off point for us to consolidate our position in Spain.” Vox has proposed “100 mea-

to plant a 200m Spanish flag on Gibraltar — escaping local police only by swimming to shore. José Antonio Ortega Lara, a member of the executive committee, was a former Spanish prison official, held for 532 days by Eta in the 1990s. Many analysts doubt Vox can become as large as counterparts in France or Italy. Spaniards are relatively unconcerned by immigration. Until relatively recently, most immigrants to Spain have been from culturally similar Latin America. The memory of fascism under Francisco Franco, the general who ruled Spain from the civil war in the late 1930s until his death in 1975, may have also put people off supporting the far-right, according to analysts. “Spain is not a very fertile ground for the far-right,” said Jorge Galindo, a Spanish political analyst. The economy has grown strongly in recent years and anger at the political establishment — which during the financial crisis prompted a surge in support for radical parties, such as the far-left group Podemos — has abated. Still, Pablo Casado, who won the PP leadership in July, is increasingly being forced to respond to the Vox challenge, saying after its Vistalegre rally that he shared “many ideas and many principles” with the party and suggesting the two parties should join forces to defeat the Socialist government.

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NEWS YOU CAN TRUST I FRIDAY 09 NOVEMBER 2018

Opinion Exit of the banking giants and the crisis of confidence in the Nigerian economy

arly this week the CBN reported that two of the world’s banking giants HSBC and UBS have decided to take their representative offices out of our shores. UBS is a Swiss global banking firm providing financial services to private, corporate and institutional clients. It is co-headquartered in the Swiss cities of Zurich and Basel. UBS is the 11th largest banking institution in Europe, with an asset base of about US$920 billion. It has offices in more than 50 countries, with a presence in all the world’s principal financial centres. As we understand it, UBS opened their Representative Office in our commercial capital of Lagos sometimes in mid2014. The bank provides services in terms of wealth management, investment banking and asset management within an integrated

framework and leveraging on its global reach. HSBC is one of the world’s most respected financial institutions. In the early nineties at a luncheon event in Oxford I once met the great grandson son of Sir Thomas Sutherland, the original founder of HSBC. Founded in Hong Kong in 1865, the Hong Kong Shanghai Bank, as it then was, grew to be one of the world’s leading international banks, with assets today in excess of US$2.5 trillion. On July 18 this year, a HSBC research painted a rather gloomy picture of the current administration and its mismanagement of the economy. The report noted that the re-election of President Muhammadu Buhari “raises the risk of limited economic progress and further fiscal deterioration, prolonging the stagnation of his first term, particularly if there is no move towards completing

reform of the exchange rate system or fiscal adjustments that diversify government revenues away

‘

I do not think it was wise for the presidency to engage in such open warfare against the banking giants. A member of the Economic Team should have written a wellreasoned paper to counteract the accusations from HSBC and UBS. It was not necessary to be so defensive and adversarial. Any government that treat global banking giants as adversaries is digging its own grave

HumanAngle FEMI OLUGBILE Physician, psycho-profiler and essayist

he bizarre drama that has been going on for several months now surrounding the National Health Insurance Scheme of Nigeria in many ways epitomizes the dysfunction of the Nigerian nation as constituted. After discussion, vacillation and procrastination lasting several years, t h e Ni g e r i a n Na t i o n a l Health Insurance Act 35 was signed in 1999. At its most basic definition, the ‘insurance’ required the pooling of funds jointly contributed on regularly by an employer and his employee into a ‘health fund’. The prescribed ratio for the National Health Insurance planned for Nigeria, one is told, was something of the order of five percent of the worker’s m o n t h l y i n c o m e f ro m his side, with the , in this case the government, putting in ten percent to match. From this pool of funds, civil ser vants and other categories of citizens covered would be guaranteed a defined

from oil.” Titled, “Nigeria: Papering Over the Cracks”, the report identified seven issues that Nigeria’s econ o m i c m a n a g e r s h av e failed to address. The first is the sluggish growth of the economy, which is below 2%, as against 2.7 percent of average annual demographic growth. This actually amounts to negative economic growth in real terms, as demographics outstrip real output. The labour unions, while agreeing it was a good thing for the workers, declared bluntly that workers would not contribute. The word is that President Obasanjo, not to be deterred, jump -started the scheme by paying the

National Health Insurance and the Nigerian nation ‘

package of health services at one or more designated health facilities for themselves and their

families. It made sense and was already working ver y well in different parts of the world.

The NHIS requires a revamping – root and branch. The funds need to be separated from itchy fingers as well as from powermagnates. A bestpractice governance structure needs to be created for the Insurance funds. Protocols have to be developed and enforced for all stakeholders – HMOs, providers, and the managers themselves. The key requirement is not for messianic ‘rescuers’ but good clear-eyed insightful thinking guiding policy and implementation at all times

While oil prices continue to rise, the non-oil sector which currently accounts for 90% of GDP remains abysmally sluggish. It also pointed to the spectre of unemployment which continues to haunt the Nigerian people. Unemployment has r isen three-fold in a matter of 3 years, to an estimated 19% by year’s end 2017. As a matter of fact, youth unemployment averages 24%, with the worst hit areas of the North East and North West, having incidences of 70 percent. Rural banditry, kidnapping, crime and nihilistic violence have driven millions out of the rural countryside, undermining food security and building-up a large army of unemployed youths. The situation is dire. The report underlined the government’s fiscal follies in terms of overreliance on oil revenues, failure to expand the tax base and its addiction to government’s ten percent c o nt r i bu t i o n o n e v e r y worker and asking the NHIS to get on with it. It is possible that that ten percent is what is still going into the coffers of the NHIS monthly up till this moment, although very little of the information about what has been paid and to whom is put in the public domain. The important thing is that the arrangement ensures that roughly five percent of the population of Nigeria are currently enjoying insured healthcare without having to pay out of pocket, like the rest of their countrymen. Obasanjo probably assumed that the virtues of being insured would become quickly obvious to the rest of the public, who would soon be clamouring to get on board. Government would then look at picking up the premiums for the disabled, unemployed and other ‘vulnerables’. Nigeria would achieve the lofty dream of Universal Health Coverage in short order. It need not be said that nothing like that has happened. Instead, the Act, a product of nationalistic passion but incomplete and imprecise thinking, has provided in real life a n a g e n c y ‘a s r i c h a s Croesus’, with ‘a warehouse full of cash’, but whose actual wealth or income is obscured from

THE NEW WEALTH OF NATIONS

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

domestic and foreign borrowing, with its attendant dangerous threshold in terms of the ratio of debt repayment to total revenue. Nigeria’s debt has Continues on page 35

public view. The NHIS, w i t h i t s hu g e t re a su re trove, has become a magnet for political parties, politicians, assorted carpet baggers, and a centre for the assertion of the suzerainty of ‘federal power’. The latest episode in the long-running drama has surrounded the antics of a Chief Execut i v e w h o w e a r s a t o ga of moral exclusiveness and, from all accounts, is rude and crude in interpersonal interaction. The issues of his ‘war ’, which till lately assumed su c h e p i c p ro p o r t i o n s the obs er ver might be tempted to think the sky would fall on NHIS and Nigeria if this particular s av i o u r w a s n o t t h e re to hold it up, has been mostly about, so far as you can see, a festering grouse against the HMO’s (Health Management Organisations). The HMOs ser ve as a relationship and ser vice bridge between the NHIS and the s e r v i c e p rov i d e r s w h o interact with the public. Of course, there is a lot wrong with the NHIS, including the shenanigans of some of the HMOs, and e v e r y b o d y w h o k n ow s anything about the Nigerian health system would acknowledge this. Surefooted firm, clear-eyed executive action, based on good thinking, and Continues on page 35

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