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ANALYSIS

A tale of two companies: How NLNG can point a way forward for NNPC DIPO OLADEHINDE

fter over Ten years, the case of Nigeria National Petroleum Corporation (NNPC) and Nigeria Liquefied Natural Gas (NLNG) is like the case of a big brother who now relies on the junior brother for life. Unlike NNPC which is a cash cow to the government, NLNG has raised funds for its projects, from a combination of shareholders loans, internally generated revenue and third-party loans as the company has grown from one to a six-train operation with capacity of 22 million tons per annum and is on the verge of achieving two more trains for its operation. Not only has the NLNG fully paid without default the $5.45 billion taken from its shareholders to build its six existing LNG trains, the company now has an asset base of over $11 billion dollars and generated over $90 billion in revenues. “The junior brother (NLNG) has responsible friends that keep him on track. Left to their father, he will be as irresponsible as his

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365.03 306.90

0.01 15.12

NGUS FEB 27 2019 365.25

-0.18 14.34

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15.28

NGUS MAY 29 2019 365.70

10 Y 20 Y 0.05 -0.03 16.01

15.62

NGUS NOV 27 2019 366.60

Buhari’s approval rating hits 4-year low A CHRIS AKOR, Lagos, & OWEDE AGBAJILEKE, Abuja

monthly job approval rating survey, which gauges public support for the president, conducted by NOI polls shows that President Muhammadu Buhari’s approval

As PDP condemns FG’s invasion of Atiku’s sons’ home Growth remains sluggish with Q3 GDP up 1.81%

- See special GDP report on pages B1-B4

ratings has hit a four year low, dropping to 36 percent in Oc-

tober 2018 from a high of 80 percent in October 2015.

Disapproval ratings stood at 50 percent while 14 percent were

Continues on page 35

Inside MMA2 not indebted to FAAN – BASL P. 34

Akinwande Ademosu (m), managing director, Credit Direct Limited (member of FCMB Group plc), flanked from left by Hakeem Belo-Osagie, chairman, Metis Capital Partners; Akinwunmi Ambode, governor, Lagos State; Fola Ogunsiakan, president, Harvard Business School Association of Nigeria (HBSAN), and Ladell Robins, vice president of the association, during the HBSAN Annual Black Tie event held at the weekend.

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E-learning platform to boost literacy levels, competence in career management JUMOKE AKIYODE-LAWANSON

he Chartered Institute of Personnel Management of Nigeria (CIPM) has partnered SeamlessHR, Nigeria’s human resources technology company, to unveil a world-class, interactive Learning Management System (LMS) that will aid members of the Institute and the general public to take courses to improve performance in their diverse careers. Analysts have identified online learning as a potent tool to further increase literacy level and deepen ICT in Nigeria, positioning the country to better compete on a global scale. The launch of the elearning platform announced at the CIPM Annual National Conference last month, saw SeamlessHR demonstrate the LMS to the wonder of many in attendance. Delegates were treated to an introductory class on performance evaluation for line managers as the premier course with which the LMS was unveiled. Speaking on the motive behind the development of the e-learning solution, Gbenga Totoyi, head of learning and consulting at CIPM, said, “Over the years we have done multiple programmes across multiple locations all over the country, but we have now seen the changing dynamics in the workforce, and therefore understand the need to embrace technology. We have seen the need for an e-learning platform and we have chosen SeamlessHR as technology partner.” Emmanuel Okeleji, CEO, SeamlessHR, noted that the desire to help African business owners maximise staff potential was the driving motivation behind the launch of the elearning solution, which he described as best in class. “Drawing from years of experience building consumer technologies for Africa, extensive research and benchmarking against the best solutions in the world, we have built a suite of technology products to help businesses in Africa maximise the potential of their staff. Our learning management system, for instance, possesses technology and content that ranks shoulder-toshoulder with anyone in the world, especially with key features like Attention Tracking, Gamification, Video, Motion graphics and Animation,” he said.

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Senate set for stormy session over Electoral Act OWEDE AGBAJILEKE, Abuja

enate is set for a stormy session at Tuesday plenary over President Muhammadu Buhari’s decision to withhold assent to the fourth version of the Electoral Act (Amendment) Bill, passed by the National Assembly. BusinessDay can authoritatively report that President Buhari’s letter will be read on the floors of the two legislative chambers at Tuesday plenary. Already, members of the National Assembly are polarised across political, ethnic and religious lines.

While Pro-Buhari lawmakers are mainly from the North and members of the governing All Progressives Congress (APC), Pro-Saraki lawmakers are majorly from the South and belong to the main opposition People’s Democratic Party (PDP). It was also gathered that the Senate leader, Ahmad Lawan, is at the forefront of Pro-Buhari legislators while the chairman, Senate Committee on FCT, Dino Melaye, leads the Pro-Saraki group. It was also gathered that lawmakers from both camps are divided on whether to invoke Section 58 (5) of the 1999 Constitution (as amended).

According to the provision, “Where the President withholds his assent and the bill is again passed by each House by two-thirds majority, the bill shall become law and the assent of the President shall not be required.” This implies that 73 senators in the upper legislative chamber and 240 lawmakers in the House of Representatives are needed to override the President’s veto. While the Pro-Saraki senators want the legislative body to override the President’s veto, their Pro-Buhari counterparts have vowed to block any move to veto Buhari’s refusal to sign the bill into law.

The Senate currently consists of 48 PDP senators, two African Democratic Congress (ADC) members, one member each from All Progressive Grand Alliance (APGA), Peoples Redemption Party (PRP) and Social Democratic Party (SDP), while the remaining 56 lawmakers belong to the All Progressives Congress (APC). It would be recalled that President Buhari had on December 7 declined assent to the Electoral Act (Amendment) Bill for the fourth time. In separate letters addressed to Senate president, Bukola Saraki, and speaker,

House of Representatives, Yakubu Dogara, the President said signing the amendment bill close to the 2019 elections could “create some uncertainty about the legislation to govern the process. “Any real or apparent change to the rules this close to the elections may provide an opportunity for disruption and confusion in respect of which law governs the electoral process.” He, therefore, asked the National Assembly to specifically state in the proposal that the amended Electoral Act would come into effect after the 2019 general elections.

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Conferment of fellowship by IMT Enugu Frank Aigbogun, Publisher/CEO of Businessday Media Ltd was recently conferred with a fellowship at the 45th convocation of the Institute of Management & Technology, Enugu. Three others - Nnamdi Okonkwo of Fidelity Bank, Arthur Eze. prominent business man and Patience Ozokwor, a leading actress - were also conferred with fellowships at the ceremony.

Aigbogun receiving the scroll from the rector of IMT, Prof Augustine Nweze (centre) and Mrs Ifeoma Nwobodo, chairman of the governing council of the institute.

Aigbogun with Sam Ogah, CEO Master Energy who was honoured by IMT by having a building in the institute named after him.

Aigbogun flanked on his left by wife Juliet, daughter Anita and son Richard and on his right by Uju Arinze and her husband Izuchukwu, friend and classmate of the awardee.

Aigbogun being congratulated after the award by Mrs Nwobodo, chairman of the governing council of IMT.

From R-L: Aigbogun, Patience Ozokwor, Ogah, representative of Okonkwo, Speaker of the Enugu House of Assembly Edward Ubosi, Deputy Governor of Enugu State Cecilia Ezeilo, chairman of the governing council Mrs Nwobodo,FCA, the rector Prof. Nweze and the representative of Authur Eze

News Europe, Asia Alliances to promote social investment across Africa

UK lauds Africa’s achievements in Fintech MBATA JEREMIAH

UJU IKEDIONU & ADEMOLA SUNLOYE

he European Venture Philanthropy Association (EVPA) and Asian Venture Philanthropy Network (AVPN), with more than 754 members in 52 countries, have started to mobilise over $7 billion to drive social change and impact across the world. The two networks of capital providers in Europe and Asia underpin their philanthropic efforts on the realisation that rapid growth and success are essential in advancing social investment. Motivated by the fact that goodness is the business of every organisation in advancing social investment, the two organisations have set up the African Venture Philanthropy Alliance (AVPA), a pan- African membership network, to advance social investment in Nigeria and other African coun-

tries. At an intercreative session with all the stakeholders last week, Oluwatoyin Adegbite, executive director of AVPA in the West African sub-region, listed the benefits of the network to include partnerships, value-added programmes, regular convening, knowledge centre, member services as well as global links. “Nigeria is now overtaking India in terms of poverty, and the African continent is behind others in terms of social impact,” Adegbite said. Throughout the world, social investment has proven to be a powerful way to generate social impact, by enabling individuals and organisations with high aspirations for making a difference to deploy their resources with discipline, transparency and accountability. Social investment is also a proven approach that stimulates social innovation and new solutions to major problems,

helps grow the scale of high-impact non-profit organisations, and enhances deal flow for sustainable impact investments. With the myriad of social changes faced by Nigeria and other African countries, conditions are ripe for social investment to play a major role in improving lives in Africa. A membership network of capital providers is a powerful way to expand the amount of capital being deployed and enhance its effectiveness in getting results. Other stakeholders in attendance included Piet Colruyt, founder of SI2 Fund; Jamy Goewie, community and market development; Margret Olele, executive director, American Business Council, among others. According to the leadership team of AVPA, membership is opened to organisations with resources in the form of financial, human and/or intellectual capital commitment to deploy that capital effectively to gen-

erate significant social impact and a belief that their efforts can be strengthened by collaboration and/or strategic partnerships with and learning from others. Furthermore, membership is drawn from private investors, high-net-worth individuals/families, family foundations, corporate foundations, corporations, professional services firms, universities and research institutions, government and governmentrelated agencies. AVPA serves as a catalyst and facilitator to enable capital providers to realise their full potential for impact. It will do this by creating a platform for attracting and connecting cross-sectoral organisations and people who desire to engage in social investment; providing value-added services that enhance their effectiveness in deploying capital to create impact, and linking efforts in Africa to similar networks of like-minded parties in Asia and Europe.

eputy British High Commissioner to Nigeria, Laure Beaufils, has lauded Africa’s increasingly impressive achievements in Fintech, while delivering a speech at the third annual Africa Fintech Festival, at the Landmark Events Centre, Lagos. Beaufils said the UK’s plan to be one of the G7 top investors in Africa by the year 2022 would be achieved through investments in the continent’s Fintech industry. The UK/Africa Fintech partnership was launched by the British Prime Minister, Theresa May, during her visit to Africa earlier this year with the aim of achieving the following goals: Seed funding for Fintech companies within and across Africa. Others are UK’s financial sector authorities to work with African regulators to jointly create the right environment for indigenous and international corporations, and improving research knowledge across the continent. Some of the structures the UK has put in place are the Enhancing Finan-

cial Innovation and Access (EFInA), a financial sector development organisation that promotes financial inclusion in Nigeria. The UK is also funding the EFInA Fintech fund. While speaking at the Africa Fintech Festival, Segun Akerele, chairman, EFInA Board, said: “In operating the Innovation Fund, EFInA has provided up to 32 grants to commercial banks, micro-finance banks, mobile money operators, and investment management companies that provide financial products and services to the low income population in Nigeria.” Akerele pointed out that currently, the Nigerian FinTechs Ecosystem faced six key limitations, which were stringent regulations, access to funding, information inadequacy, corporate governance limitations, intellectual property rights and strategic partnerships. He said going forward, Fintechs could support financial inclusion through four main axes in Nigeria, which include more involvement from telcos and banks, increasing microcredit access, enacting regulations and more innovative but simple solutions.

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The 2018 electoral bill and the parable of the life of the bird

Mazi Sam Ohuabunwa OFR sam@starteamconsult.com

ne smart boy from Utughugwu village, decided to demystify a sage from Atani village, all in Arochukwu. This sage was famous as a seer. He was a very wise man and was highly regarded in the community. People took difficult problems to him and he often gave wise counsel that resolved many of the problems presented to him. This smart boy decided that the time had come to demystify this old man. He devised a strategy which he was sure would embarrass the old man. He came to the man with his band of friends to put him to test which he was certain the man would fail. He came wearing a big ‘jumpa’ with one of the pockets bulging. He told the old man that he had a small bird in his pocket and wanted the old man to determine if the bird was dead or alive. His game plan, was that if the man said that the chick was dead, he would bring it out alive but if the man said it was alive, he would gently squeeze the bird to death and present it dead. So he was sure there was no way he would not destroy the man’s reputation. The old man looked at the young man and his band and smiled. He then blurted: “whether the chick

STRATEGY & POLICY

MA JOHNSON Johnson is an eclectic researcher, writer and columnist whose articles cover maritime, defence, technology and public policy issues and other areas of human interests. He is a member of the BusinessDay Editorial Advisory Board)

n a daily basis, democracy is becoming very interesting in Nigeria. In the past nineteen years, one could see the good, the bad, and the ugly, in the society once electioneering has commenced. This year is not different as there are conspiracy theories ahead of the 2019 general elections. With politics all things are possible in Nigeriavote buying, vote rigging, underage voting, and manipulation of election results etcetera. The manner in which politicians, especially the corrupt breed, think during political campaigns is pretty much different from the way a normal human

is dead or alive, it is in your hands” This parable came to my memory, as I heard the news that the president had declined assent to the 2018 Electoral Bill, for the 4th and perhaps the last time. That is to say that this bill has finally come to a dead end. Can the National Assembly override this veto? A million dollar question. It is like the question of the smart dud to the old man. Right from the first time the bill was sent to Mr President, unto the third time, he seemed to raise genuine objections and the National Assembly responded with unusual calmness and aplomb and quickly amended the bill, often deleting or changing sections that the President did not like. One major one was the re-ordering of the sequence of elections. The legislature wanted their own elections to be held before that of the president, unlike what the executive as represented by INEC had always done. Did this amendment have any merits? Me, I thought so. For most of the democratic elections since the exit of the military, the presidential elections had always come first, often with that of the National Assembly. I personally like change and I thought it was okay to change the order. Secondly, we have noticed that the Presidential election result seemed to influence or affect the subsequent elections, leading to some bandwagon effect. Many people not wanting to be in opposition would tend to vote the party that won the presidential election in the subsequent elections. True or false, changing the sequence will help debunk such tendencies and

‘

Indeed I can never understand why the National Assembly had been so compliant, doing all that the president wanted. In the history of legislation in our country, this is the first time I have seen the legislature show such patience, amending a bill three times to suit the dictates of the executive

’

perhaps will allow people truly vote their consciences. If our nation was seeking how to improve our electoral processes and procedures to make them freer and fairer, I would see no reason not to accept this change. But those who understand the way of the Nigerian politics or have the wisdom of the Atani-Arochukwu sage tell me that things are never as they seem and the way we ‘civilians’ think is not the way Nigerian politicians think or see. Politicians know themselves and know many things that ordinary folks like us do not know. Which is why we often get disappointed with

them. We often make the mistake of taking them at face value or believing everything they say or promise, as articles of faith. So the President refused to think like us or see the merit of removing or minimizing the bandwagon effect, and so withheld assent. People predicted that the National Assembly would stick to their gun but for reasons not very clear to me, they buckled. Indeed I can never understand why the National Assembly had been so compliant, doing all that the president wanted. In the history of legislation in our country, this is the first time I have seen the legislature show such patience, amending a bill three times to suit the dictates of the executive. And such patience and forbearance coming from the 8th Assembly led by Dr. Bukola Saraki and supported by Yakubu Dogara (both formerly of APC, but now of PDP, with all documents bearing either affiliation remaining valid!) There must be something very important which the NASS wants to accomplish with this electoral law amendment. And again on the face value, I can see the merits. Would it not be nice to have legal backing for the card reader technology which was said to have improved the integrity our elections? Would it not be nice to adopt a system that allows electronic transmission of results from polling booths direct to collating centers or to INEC computer servers? Will this not reduce the tampering of results that go on now between voting points and collating centers? Will it not reduce if not totally eliminate the troubling political culture of writing results? And so on and so forth. Why will the president

not support these changes, giving his reputation as a man of integrity? Perhaps there are things he knows or sees that we ordinary citizens do not know or see. It seems that the 4th and last amended bill is generally satisfactory to Mr President. But a new twist has arisen. Possibility of confusion between the old law and the new. Having gone this far on the road to 2019, will there not be confusion as to which law is governing the electoral process? This to me is a valid question and concern. But the answer will depend on two factors. First is, how fundamentally different is the new law from the old? Given the three amendments at the instance of the president, it would seem that the differences have been severely narrowed down, except for a few critical innovations, some of which I had made reference to earlier on. Second is, how does the president feel about the current law? Does he see it as important? Does he see any urgency in blocking the holes which the new law portends to block? We must remember that this new law was initiated by the National Assembly and it seems the president does not fully share their views and perhaps their worries. Well, since the president is the man who largely owes Nigerians, the duty of conducting a free and fair election, it may be wise to conclude as the wise sage from my village: “Whether the elections are free and fair or they are corrupted and rigged, all is the hand of President Muhammadu Buhari”.

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Jubril from Sudan being thinks. The difference is in what politicians are willing to do just to get what they want from the electorate. One would expect that in a civilized society, people are honest and law abiding. This theory may not be valid for some politicians because most of them put their wants above honesty and legality. Often, the interests of most politicians are not conterminous with national interests. As politicians strategize on how they would remain in power, the people they claim to govern get poorer, and the society is in decay with social and physical infrastructure in a state of disrepair. In the sea of confusion created by the election season, some powerful individuals fabricate all manner of stories. Conspiracy theories are always generated depending on where the interests of those who generate such controversies lie. Conspiracy theories are signs of deep social malaise in the society. It happens in many countries across the world. You will recall America’s last election where it was rumoured that Hillary Clinton was dead, and that Trump is a plant working for Clinton. At the time, many Americans appear to think that Donald Trump was told by the Hillary Clinton Camp to be as controversial as possible to deter people from voting republican and hand her the victory. These false stories were well crafted by

conspiracy theorists to make people of like minds belief they are true. The stakes in the 2019 general elections are high. The forthcoming presidential elections would mainly be between the Atiku, of the People’s Democratic Party (PDP) and Muhammadu Buhari of the All Progressives Congress (APC) as well as other presidential candidates too numerous to state here. This is going to be one of the strangest elections in Nigeria’s political history. Why, you may ask? The hawks in the political arena want President Buhari out of Aso Rock Villa. To these jingoists, President Buhari’s performance in office is not inspiring. They grumble daily that President Buhari has not been able to win the fight against corruption. Critics pontificate that the nation’s economy is still fragile and the level of insecurity is high. But they should be bold to say President Buhari has not performed, and that due to his lacklustre performance they wouldn’t vote for him in 2019. They shouldn’t say President Buhari is “Jubril from Sudan.” Anyway, it’s the rise of social media and online news that has made it easier than before for weird conspiracy theories to spread like a bush fire. Even the leader of the Indigenous People of Biafra (IPOB), Nnamdi Kanu, in his latest broadcast from Israel has stated that the current President of Nigeria believed to be Muhammadu Buhari is not a clone but an impostor from Sudan. He insists

that President Muhammadu Buhari (PMB) is dead and the person at the Aso Rock Villa is an imposter. To drive home his argument, the IPOB leader while making his broadcast says “what they are cloning about Buhari is the ear, you know the ear at the back of the mouse that is what they are cloning. Because when they cut off the ear, they can now cut it to the shape of the dead Buhari. Have you noticed how they never photographed the left ear? Have you noticed it all of you? They never allow you to get close.” Recently, President Buhari on his trip to Poland denied conspiracy theories that he is a human clone after rumours circulated on social media that he had died and been replaced by a Sudanese lookalike called “Jubril.” In defence of his denial, PMB in his tweet further says that “One of the questions that came up today in my meeting with Nigerians in Poland was on the issue of whether I have been cloned or not.” According to President Buhari, “the ignorant rumours are not surprising- when I was away on medical vacation last year, a lot of people hoped I was dead.” It’s only those who think PMB was dead last year as a result of undisclosed illness that would believe Nnamdi Kanu’s conspiracy theory. Conspiracy theories play an important role in Nigerian politics. You will recall the conspiracy theory that Umaru Yar’Adua was dead before

he was elected as the President of Nigeria in 2007. Yet, he was elected and served as the President of Nigeria between 2007 and 2010. Frankly, Nnamdi Kanu’s conspiracy theory could be true. As a result of research by scholars, one may find out twenty years later that there was a Jubril from Sudan. If this was true, one could say that the Federal Executive Council meetings had been chaired by a cloned president for several months. To avoid these bizarre theories, our presidents shouldn’t leave their offices for more than necessary on medical evacuation. That is why a responsible government would ensure that our medical facilities are of international standard. In the past few years, these weird stories have helped Nigerians to analyse and understand unexplained political events including erratic behaviours of some persons that seem insensitive to the challenges most citizens experience. It is the Nigerian government’s lack of transparency and accountability over time, including the tendency to mislead, confuse, and conceal that gives conspiracy theories the oxygen they need to spread and escalate. So, who is the Jubril from Sudan? And where is he as you read this article? Your guesses are as good as mine.

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South Africa: Inquiry nation ‘ This is a positive trend for Rafiq Raji “Dr Raji is chief economist at Macroafricaintel. He was previously an Africa Economist at Standard Chartered Bank, London, UK. (Twitter: @DrRafiqRaji)”

hlanhla Nene, the former South African finance minister, probably now wishes he stayed away from public office after his unceremonious exit a few years ago from the administration of former president Jacob Zuma. His “integrity” was paying off. He had some lucrative board memberships and there were probably more on the way before he was beckoned upon again to serve his fatherland. What did Mr Nene do? He lied about the extent of his association with the Guptas, a now infamous Indian family which rose to stupendous wealth on the back of the South African Commonwealth. This was revealed at the ongoing commission of inquiry into state capture led by deputy chief justice Raymond Zondo. Malusi Gigaba, another former minister, whose video of himself engaged in a private indiscretion became public, had to resign as well. His exit from cabinet was not particularly due to the video scandal, though. The Public Protector, the country’s anti-graft body, asked President Cyril Ramaphosa to take action against him in late

October for allegedly lying under oath. The two-star politicians are a good study of contrasts. Their personalities are different. Mr Nene is ideally discreet, quiet and not one for the limelight if he can help it. Mr Gigaba, on the other hand, is attention-seeking, aims to be suave, and dresses flashily. And even as Mr Gigaba insists he has done nothing wrong, and that his resignation was not an admission of guilt, revelations since then suggest he may have likely lied about some of his activities in government. Mr Nene’s case is pitiable because there was really no need for him to lie in the first place. There is probably no senior member of the ruling African National Congress (ANC) party under Mr Zuma’s leadership who did not have to deal with the Guptas at some point in time. And it is to Mr Nene’s credit that he never succumbed to the pressure they put on him to do wrong. Public interest is served by probes Asked about his thoughts on the trend of inquiries under Mr Ramaphosa’s leadership, Darias Jonker, director for southern Africa at Eurasia Group, a political risk consultancy, in London says, “This is a positive trend for Ramaphosa, in the sense that it is a safer tactic to use in his strategy to remove or neutralize his opponents within the ruling African National Congress. First, by building up a solid case against them there is less room for them to wriggle out of these allegations once they get tested in court. Second, because the inquiry is public the allegations against the Zuma patronage network are being aired in the

Ramaphosa, in the sense that it is a safer tactic to use in his strategy to remove or neutralize his opponents within the ruling African National Congress

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open and the public is becoming increasingly aware of the scale and audacity of the patronage network. This will boost Ramaphosa’s image as a reformer. One downside is that the inquiries take time, and some people are impatient with the slow pace and want to see arrests and court cases: but Ramaphosa is playing a long game.” Ronak Gopaldas of Signal Risk, a risk consultancy, in Cape Town shares similar sentiments. He believes the corruption inquiries are “definitely positive.” He opines further: “From a governance and institutional perspective, we have seen a positive shift since Ramaphosa took over. There is a clean-up being undertaken and these commissions are attempts to get information out in the open and to build consensus. It also provides Ramaphosa with necessary ammunition to act against those implicated without burning his political capital within the ANC, which remains tenuous given the narrow victory margin in December.” But would it indeed help to curb

corruption as envisaged? Mr Jonker believes so: “The inquiries are part of Ramaphosa’s anti-corruption reforms and will drastically reduce the grand scale corruption in national and provincial government and in SOEs [state-owned enterprises]. Smaller scale corruption will, however, persist across government and be a particular problem on the local government level.” For his view, Signal Risk’s Gopaldas says “the commissions themselves are simply a start - much will however depend on whether Ramaphosa is able to act decisively against corruption, reform the ANC and replace captured organisations with competent technocrats. In this sense, the commissions should be seen as the diagnosis rather than the cure.” Simply put, these inquiries make a difference. And there is empirical evidence to back the claim. New research by Eric Avis and Frederico Finan, both of the University of California at Berkeley, and Claudio Ferraz of Pontificia Universidade Catolica do Rio de Janeiro published by the Journal of Political Economy in October finds in Brazil that “being audited in the past reduces future corruption by 8 percent, while also increasing the likelihood of experiencing a subsequent legal action by 20 percent.” Expectedly, there is now palpable hesitation on the part of some ANC politicians to testify before the Zondo commission. It is increasingly clear quite a couple of them lied about the extent of their malfeasance and misdemeanour under Mr Zuma. Could the revelations cost the ANC at the polls? What does Eurasia’s Jonker think? “Yes and no. The opposition will use the revelations to paint the ANC as endemically corrupt, which

it largely is. However, other major opposition parties also have serious corruption allegations haunting them, and voters know this too.” But Ramaphosa wins as well There are other ongoing commissions of inquiry. One has just been commissioned to investigate the Public Investment Corporation (PIC), the investment manager of the state pension fund. There would probably be more. Consequently, Mr Jonker of Eurasia Group believes there could be inquiry fatigue at some point, “especially if there are no arrests of high-level state capture participants. ”That said, even as the motivation for establishing these inquiries might not be entirely altruistic, they are inadvertently beginning to serve the public interest. Ironically, some day in the future, there might be inquiries into how past inquiries conducted their affairs. But not yet; that is even as Mr Ramaphosa’s foes probably wish otherwise. Could the costs of these inquiries become a subject of inquiry at some point, for instance? Eurasia’s Jonker does not think so. “No. Ramaphosa’s detractors are complaining about the cost in an effort to undermine him, but in reality the cost of the inquiries are a fraction of the sums that were taken from the public purse through corruption and patronage. The public knows this and it is not keeping tabs on the costs involved.” Besides, “many voters who turned away from the ANC because of the corruption and mismanagement during the Zuma years will return to vote for Ramaphosa now that he is being seen as a fighter of grand scale corruption,” he adds.

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Atiku: the original and genuine font of change

Tochukwu Ezukanma Ezukanma writes from Lagos, Nigeria. maciln18@yahoo.com 0803 529 2908

t was Atiku Abubakar, as the presidential candidate of Action Congress (AC) that originally wielded the broom, as a symbol of change. It was in November, 2006, and I was at the Old Parade Ground, Abuja to witness his declaration of his presidential candidacy. I was focused, my eyes and mind wholly fixated on the unfolding political event. It was a stately event: an extensive gathering of Nigerians of all social strata with a fair sprinkling of none Nigerians of all hue. It was even more of a grand event for its

potentiality. It could potentially determine the next president of Nigeria, and then, the course of the country for the next four years, possibly, eight years. As Atiku arrived, the crowd surged towards his motorcade and the VIP stand to catch a glimpse of him. Drawn by that indescribable magnetism that makes people gravitate towards great leaders, they throng around him, as though that just a fleeting view of him will validate not only their presence at the event, but also, their support for him. Later, as he walked from the VIP stand to the podium to deliver his speech, I got a good view of him. There was an aura of admirable modesty and dignified reserve about him. He wore the laurels of his office, vice presidency, with flair, yet and humility. He delivered his speech from a prepared text. I listened very carefully because I am too aware of the power of words. Fashioned into prose, they outlive the momentary event of the day, a presidency, and even an era. His speech was about forty minutes long. It was neither

prolix nor overly concise. He is not a demagogue; therefore, his delivery was not that of a feisty, fiery orator. It was not a forum for rabble-rousing, therefore, the speech was not a propaganda masterpiece. It was as sombre as it was uplifting, reflective as it was inspiring. It was a treatise on the political and societal realities of Nigeria. It touched on our perils and prospects, problems and potentials, limitations and strengths, woes and resourcefulness. His audience applauded repeatedly, because it struck a chord in their minds. It was responsive to their legitimate aspirations - their desire for a good life and their yearning for social justice. The leitmotif of his speech was change. Lamentably, over the years, vulgar temperaments and unenlightened minds appropriated the word, change. They rode to power by hoodwinking Nigerians with their change mantra and make-believe incorruptibility. More than three years later, Nigerians are totally disgusted by the Mohammudu Buhari administration’s change – a catastrophic change - attended by incompa-

rable mass poverty, heightened insecurity, compounded ethnic/sectarian strife, unparalleled levels of ethno-religious violence, federal government acquiescence to murderous lunacy of Fulani herdsmen. In its prestidigitation, the Buhari administration masquerades political witch-hunts as war against corruption; nepotism and double standards as incorruptibility and integrity; and ignorance and obscurantism as resolve and independentmindedness. Therefore, just as twelve years ago, when Atiku first brandished his symbol of change, the broom, there is still a need, even, a more urgent need for change – the reformation of Nigeria. History has furnished the instructive precedence that most successful reformers were consummate insiders with an understanding and respect of the system that courageously resolved to reform the system. For example, it was Lyndon Johnson, a vice president, who later became the president of the United States of America that institutionalized ground-breaking and far

reaching social and political reforms - collectively known as the “Great Society” - that tackled and resolved many daunting national problems. Atiku Abubakar is a consummate insider with knowledge and experience spanning the Nigerian bureaucracy, business and politics. He is a former vice president campaigning to be the president of Nigeria. He has made it clear to Nigerians that he wants power, not as an end in itself, but to use it to get the Nigerian economy flourishing, and thus, lift millions of Nigerians out of poverty. He will use it to curb ethno-religious strife, advance a more equitable distribution of the national resources, and restructure our multifarious country. He will also use the powers of the president to fight corruption, not selectively, for political vendetta, and not with the parade ground mentality of an ex-general, but dispassionately, to extirpate this evil that is rending the social and moral fibre of the Nigerian society. Send reactions to: comment@businessdayonline.com

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comment INWALOMHE DONALD Donald writes from Benin City via inwalomhe.donald@yahoo.com

enin Electricity Distribution Company (BEDC) said recently that it gets only 9% allocation from power national grid but the Minister of Power, Works and Housing, Mr. Babatunde Fashola, had explained why distribution companies (Discos) reportedly rejected over 9,000 megawatts of electricity within one week recently. Noting that power generation has grown from 2,690 megawatts in 2015 to 6,800 this August, he said that there is a problem with distribution caused by the inability of Discos to upgrade their equipment to the level of the generation being made. According to him, an average of 4,000 megawatts of power are not accepted regularly, due to the weak capacity of the equipment being used by the Discos. He said that some of the equipment acquired by the Discos upon privatization have become antiquated and obsolete and hence, require being upgraded if they would be able to absorb and distribute the existing megawatts of electricity. BEDC has recorded megawatts of electricity increasing losses and receivables, lesser recoveries and almost unchanged electricity demand, supply and shortfall situation over the last one year while attributing most of the sector’s ills to chronic crisis. Power system distribution gaps growing despite increase in generation in Edo. Azura generates about 450 megawatts and BEDC purchases about 100 megawatts of electricity and distribute to customers. NIGERIA has emerged the country with the biggest gap between supply and demand for electricity in the world, according to the progress report on the roadmap for power sector reform. Since power privatization in 2013, there was severe underinvestment,

Muhammad Ajah Muhammad Ajah is an advocate of humanity, peace and good governance in Abuja. E-mail mobahawwah@yahoo.co.uk.

f Nigerian military men can be killed by citizens under whatever guise and nothing is done, then Nigeria is under siege and danger. If a general of the Nigerian Army can be killed by any group under whatever pursuit and the media keep silent for whatever reason, then the media of that place is biased and subjugated. If the life of any citizen of Nigeria has become worthless over wanton killing, then Nigerians themselves are challenged and must rise to find lasting solution to the menace. The operations to rescue victims of Du Pond in Plateau state should be an eye opener for the leadership of the country. It should not stop there. All the death ponds across Nigeria should be discovered and Nigeria must be free from the unwarranted and willful deaths and killings of its citizens by its enemies. It must be in collaboration with the people. Supporting the government to overcome the civil disturbances across the country is a civic responsibility on every citizen. People should stop hiding or siding criminality on the grounds of religion and ethnicity. The gruesome murder and dumping of Major General Mohammed Idris Alkali in the secret pond by the Beroms in Plateau state should be a great blow to the Nigerian security.

Tuesday 11 December 2018

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Edo-Azura Power and BEDC: The gaps between power generation and negative distribution equipment was poorly maintained and low salaries could not attract new talents. Following the failure of the Benin Electricity Distribution Company (BEDC) to provide electricity to residents of Edo State, the state government has described as “regrettable BEDC’s insensitivity to the suffering and extreme inconveniences it has caused millions of its customers across the state.” Edo, Delta, Ekiti and Ondo state have many power plants that generate electricity to serve everybody but the management of the BEDC lacks the capacity to take enough load megawatts from these GENCOS to serve us but would rather take little load to service mostly its ‘Special Lines’ customers leaving the rest of us in darkness. For instance, the Azura Power Plant which is co-owned by the Edo state government can generate 450MW of electricity alongside other two GENCOS in the state that can generate about 500MW combined. BEDC has been a stumbling block to the actualization of the adequate supply of electricity to the people from these power stations. Omotosho is one of the largest power stations in Nigeria, situated in Ondo South yet, the community it is sited had been without light for over ten years. Sapele in Delta state has a power station and it still suffers electricity supply problems due to the inefficiency and refusal of the BEDC to take loads from all the power station around its franchise area. Governor Obaseki has said that BEDC has continued to fail in collaborating with the state government to provide stable electricity in the state; instead the company has posed as an obstacle to meeting the goal. “BEDC has been an obstacle all the way. They will not provide electricity and will not allow you to get alternative sources of power. The state will not allow it,” the governor said. The governor said despite the fact that the state generates about 600 to 700 megawatts of electricity; the people are still

‘

… there is a problem with distribution caused by the inability of Discos to upgrade their equipment to the level of the generation being made … an average of 4,000 megawatts of power are not accepted regularly, due to the weak capacity of the equipment being used by the Discos

’

in darkness, wondering how he is expected to explain the irony to the people, who are well aware that they produce a substantial amount of electricity in the country. The Transmission Company of Nigeria (TCN) has attributed the disruption and subsequent load shedding of electricity supply experienced in some parts of Benin City and environs to maintenance work carried out by the Benin Electricity Distribution Company (BEDC). Failure of BEDC to provide Distribution Substation Operators (DSOs) to man completed substations as well as their failure to take over some completed injection substation and lackadaisical attitude of DISCOs to service customers from the Completely Self Protected (CSP) transformers, hence failure to utilise already handed-over High Voltage Distribution System, amongst others highlighted states and local governments investments in power sector that was underestimated by former President Goodluck Jonathan during power privatization.

A lot needs to be done in areas of reinforcing and re-strengthening the existing 33/11KV network. Over 80% of the distribution transformers, ranging from 100KVA to 500KVA are already overloaded were provided by states and local governments before power privatization. Consequently, the BEDC has to embark on a daily load-shedding of these transformers in order to keep them in service and to meet its customers’ needs. State and local government used to supply, carry out major rehabilitation work on obsolete equipment such as transformers, feeders, sub-stations and others, that need to be replaced with new ones by power distribution companies (DisCos) to adequately supply power to the consumers. Since the operators are not having enough money to play around with, they need to bring in more investors into the industry to provide the fund needed to move the sector forward There have been poor operations of the Benin Electricity Distribution Company since it took over and other contentious issues. Since the unbundling of the power sector in October, 2013 with successor companies in the distribution and generation segments of the value chain, there have not been any significant improvements in the Nigerian Electricity Supply Industry. The privatization of the sector was based on political patronage leading to the acquisition of 60% of assets by their family, friends and cronies who do not possess the technical and economic wherewithal to improve in the electricity distribution business. Vigeo Power Limited, the operators of the Benin Electricity Distribution Company (BEDC) headed by Funke Osibodu, covering Edo, Delta, Ondo and Ekiti states is the worst of all the Distribution Companies (DisCos) among the 11 successor companies in Nigeria. Since takeover, it

is has been faced with series of protests, petitions, unrest by communities, youth groups, corporate entities and civil society groups for its total failure to meet expectations. We shall attempt to do an update on the current issues and the way forward. BEDC since inception has not added any value to the Infrastructure it inherited which explains the poor and deteriorated state of the power infrastructure in this part of the country. “The BEDC personnel on the field are unprofessional in their conduct and openly engage the services of military personnel to intimidate and brutalise customers. Nigerians want to have improved access to power supply and industries want to have electricity to scale up production. The Distribution Companies, DISCOs, lack the capacity to wheel 6500 megawatts (mw) of electricity transmitted to them. The problem lies in the sector is on the distribution end. Even though we have 6500 mw that can be generated today, the DISCOs can only take 3700mw, they turn down over 2000mw on a daily basis. They feel they are going to lose a lot of money if they take the electricity that’s being transmitted to them. They are also worried about customer paying for it, as well as how much they are going to lose in terms of their own distribution infrastructure. The reality that emerged after privatization in power sector since 2013 is that DISCOs need to reinforce and restrengthen the existing 33/11KV network. Over 80% of the distribution transformers, ranging from 100KVA to 500KVA are already overloaded. Consequently, the DISCOs have to embark on a daily loadshedding of these transformers in order to keep them in service and to meet its customers’ needs.

Send reactions to: comment@businessdayonline.com

Gen. Alkali’s murder and operations discover death ponds It is commendable the efforts being made to unravel the secrets. The search by the military, though initially not very prompt, has revealed many other surreptitious ponds. It has revealed the secret killing of Nigerian citizens by the Beroms for a long time on a federal road that connects many states in the northeast. This is unacceptable to patriots of Nigeria. It is iniquity and sadism. It is, however, very worrisome that the Nigerian and international media seem to be tactically careful in reporting this ugly development. Is it because it is clear that a group has been largely targeted victims of the secret killings on the Jos federal road, as it used to be the case on the Gonin Gora federal road in Kaduna? Travelers across Nigeria by any means deserve protection. One is surprised that the search and investigation took long. That is if it has ended. One is more surprised that arrests have been made of the minors in the case, while no seniors have been touched or even torched. Why? It is unbecoming in a country where the constitution guarantees equal rights for every citizen or group. The killing of Nigerians traveling on federal roads or anywhere in Nigeria is a crime against the federal government. I can vividly recall what happened to the Zaki Biams and Odi people. I can also recall the nemesis that befell the Niger Delta people for fighting under diverse guises against the federal government. More recently, the ordeals of Zakzaki and his followers are fresh in memory.

It is not a common knowledge that any group(s) of people is more powerful than the government in Nigeria. No! Any individual or group that stands against the state must be dealt with accordingly. That has been the case before now. This case cannot be different. One Labaran Saleh posted on his face page about the growing penchant by the Beroms to murder military high personnel. He said: “The Berom terrorists did not start killing of military Generals with the cold blood murder of General Alkali, they are also responsible for killing the late General Murtala Rahamat Mohammed in 1976 when he was the military head of state. The action was carried out by Bisallah and Dimka all Beroms”. The military recently paraded many suspects associated with the case. Among them was the organizer of over 500 half-naked women demonstrators who attempted disruption of the military search of the pond. Garrison Commander of Maxwell Khobe Cantonment in Rukuba, near Jos, also Head of Search and Rescue Team, Brigadier General Ibrahim Mohammed, said suspects included direct perpetrators of the crime, supporters and the pond guards. The Police Public Relations Office, DSP Tyopev Terna confirmed the arrests who have been arraigned in court and remanded in prison. While the media have been unimpressive in the matter, the Muslim Rights Concern (MURIC) has been consistent in exposing the truth of the whole matter. MURIC wants all

the Berom killers and their sponsors to be arrested and prosecuted. Its director and founder, Professor Ishaq Akintola, opined that the suspects could not have committed the crime alone, since they were ordinary Berom citizens who cannot finance “the recruitment of hitmen, store weapons, train the militia and distribute arms”. According to him, the Plateau crisis festered because nobody was ever punished in spite of the regular killings and it would continue to defy solutions until the big guns behind the killings are dealt with the same way their errand boys are being treated now. There must be no sacred cows in this case. He tried to link this with the several containers with arms and ammunitions seized at the borders particularly during the present Buhari administration. He noted that such seizures began only after there was a change of leadership both in the Federal Government and Nigeria Customs Service (NCS), an indication that the illegal smuggling of arms into the country has been going on for long with the tacit support of the immediate past government at the federal level. MURIC carpeted the Christian Association of Nigeria (CAN) under Samson Ayokunle for it silence and not condemning the Berom Christian terrorists the same way that Muslims condemned Boko Haram. “Nigerian Muslims washed their hands off Boko Haram terrorists even when they attacked Christians. But CAN president wants to pamper Berom Christian

terrorists even when it is evident that they have been responsible for the killing of hundreds of their Muslim neighbours and other Muslims and Fulanis who were mere travelers passing through the axis.” Akintola wondered why CAN president was quick to condemn the action of security agents but found it difficult to condemn the Berom Christian terrorists. More worrisome was the delegation led by the Plateau state governor, Simon Bako Lalong to Army Headquarters Abuja, to beg the Nigerian Army not to avenge the General Alkali’s murder. Though this can be described as an acceptance of guilt, the state government had confirmed through a statement by the director of press and public affairs, Emmanuel Nanle, that public properties worth millions of naira were destroyed by protesters over the Barkin-ladi killings precipitated by the army general’s murder. A foremost online medium, Premium Times, reported that the statement identified the conveners of the protest as operating under the joint auspices of the Christian Association of Nigeria, Northern Zone of Plateau State, the Youth Wing of Christian Association of Nigeria (YOWICAN), Plateau State and Bazata Gospel Team, though infiltrated by hoodlums.

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

Tuesday 11 December 2018

Publisher/CEO

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)

Bashir Ibrahim Hassan

GM, BUSINESS DEVELOPMENT (South) Ignatius Chukwu

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BUSINESS DAY

Editorial

Nigeria’s economic malaise and the blame game

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.

HEAD, HUMAN RESOURCES Adeola Obisesan

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Enquiries NEWS ROOM 08023165438 08169609331 Lagos 08033160837 Abuja

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BUSINESS DAY

Tuesday 11 December 2018

BUSINESS

COMPANIES & MARKETS

DAY

Sterling Bank partners Peugeot for 50 made-toorder vehicles

Pg. 17

C o m pa n y n e w s a n a ly s i s a n d i n s i g h t

MARKETS

Investors face a “Diamond” dilemma LOLADE AKINMURELE

nvestors who bet on Diamond Bank to turn the corner amid a selloff triggered by worries over the bank’s capital adequacy levels have been rewarded with a 57 percent gain in the space of one week, as the lender pared record losses to close at N1.02 Friday, after slumping to as low as 65 kobo Monday of same week. What that means is that if an investor bought N1 million worth of Diamond bank shares that Monday morning, he’s made N570,000 in capital gains if he sold Friday. N10 million implies a return of N5.7 million and N100 million earns the investor N57 million. All of these in the space of four days, each of which Diamond bank posted the biggest gains of any publicly-listed commercial bank. Making the decision to buy shares in Diamond bank when the stock dipped was no straightforward one. It was a risk. A risk many did not have the stomach for but those that did have the risk appetite have been rewarded. At N1.02 per share, it is probably too late to join the party, analysts say, but there just might be another opportunity lurking with enough risk to go with it as well. This time, the gamble will be betting on the bank to have enough cash to pay international creditors when they come calling next May for the final payment of a $200 million loan which the bank took some four years ago in 2014. Equally as risky as buying the bank’s shares when they crashed, the bank’s $200 million Eurobond due for payment May 2019 has been largely dumped by foreign investors, with yields rising as high as 31 percent. That’s three times higher than the 10.9 percent average yield on the outstanding Eurobonds of other local banks. On Friday, the yield cooled to 26.6 percent, as improved sentiments towards the bank’s equities filtered through to bond investors who had sold off following back to back credit downgrades by Standard & Poor’s and Moody’s. It was Fitch’s turn to downgrade Diamond bank’s Eurobond to junk Sunday. The ratings agency said the two- notch downgrade to CCC “reflects uncertainty

over its solvency and liquidity in view of very weak asset quality, highly vulnerable capital position as well as tight foreign currency liquidity ahead of an upcoming maturing $200 million Eurobond in May 2019.” Fitch was not so optimistic about the foreign exchange

boost to come from the sale of the bank’s U.K. unit. “The bank has some contingency plans such as the sale of its U.K. subsidiary, but execution may be challenging, especially considering the recent resignation of four board members,” the ratings agency said. Diamond bank sold its

West African operations about a year ago to focus on Nigeria, and is in the process of selling its U.K. unit, which Stanbic IBTC Stockbrokers estimates could fetch from $60 million to $70 million. Clarity on the financial close of the sale of the U.K. entity will give more comfort

in terms of understanding the road map for Diamond Bank to meet its important Eurobond obligation due in May next year, according to the Lagos-based broker. The bank’s management said last week that it was confident it can meet its obligations, and was in talks

with unnamed development finance institutions and multilateral agencies for dollar funding to help it meet the Eurobond repayment. There’s a new risk on the table here and investors must be scratching their heads on which decision will prove the right one. Buy or No?

BUSINESS DAY

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Tuesday 11 December 2018

COMPANIES & MARKETS MANUFACTURING

Berger Paints, stakeholders renew business relationship Iheanyi Nwachukwu

s a strategic move to strengthen its competitive edge, boost sales and generate values to numerous shareholders, a frontline manufacturer of paints and allied products, Berger Paints Nigeria Plc at the weekend renewed business relationship with many top class painters in Nigeria. The Painters Forum, held at the company’s training room, the first in the series of interactive sessions aimed at strengthening relationship between Berger Paints and its stakeholders focused on the expected roles of a modern painter, Berger Paint’s range of products, prices and the upcoming inauguration of its automated plant, the first of its type in sub- Saharan Africa. In his opening remarks, Berger Paint’s Managing Director and Chief Executive Officer, Peter Folikwe who expressed high respect for the painters explained that both they were partners in progress, hence, the need for constant relationship between the two parties. According to Folikwe, as Berger Paint’s braced up to sustain its leadership position with the installation of stateof-the art plant, the first in sub-Saharan Africa, painters are critical stakeholders in the pa-

tronage of the company’s quality products. He announced the company’s plan to inaugurate its automated plant in the first quarter next year. Folikwe urged the painters to always feel free to ask questions on any area of the company’s production. He reaffirmed the company’s continuous adherence to quality products that can compete with any foreign products. Earlier in his contribution, the company’s head, Sales and Marketing, Gbenga Suberu explained that the rationale for organising the forum was to bring the painters closer to the company as they as they advise customers in the areas of colour choice. Suberu stated that the forum shall be held constantly because of changing dynamics in the paints industry and the need for both paint manufacturers and consumers to move with time. “These are our specifiers and they are also our end users. First and foremost, we want to get feedbacks from them and also educate them on how best they can apply our products and that is why the training section is also organized for them. From these feedbacks, we can continue to provide products that will suit their application. “Berger Paints in a couple of weeks from now will be 60 years. The company has been

L-R: Cyprian Ezeagu, chairman, CIBN Enugu State;. Uche Olowu, president/chairman of council, CIBN; N. Kanu, Ag. CBN Enugu Branch Controller; A. Asamor, assistant director, CBN Enugu during the Stakeholders engagement with the Apex Bank in Enugu.

known for quality. People talk about the price, but you know it must match the quality. The take home from this forum is that we are still standing on the quality that we are known for Berger is a brand. However, government should come in and ensure that we have better quality paints by way of regulating what is being produced and sold in the market in Nigeria in

order to prevent harmful effects of production.”, Suberu said. In her presentation, the company’s head, technical, Ronke Olajubu urged painters to be more professional in their choice of paints for clients by taking into consideration the type of environment, especially, the moisture level as this and other factors determine the quality and colour of paints to

be used. The Chairman, Painters Association Monsuru Onipede who commended the company on its famous quality products urged the management to continue to educate owners of houses on the importance of using quality paints. “This will help us to talk less while trying to convince our customers to choose their quality paints

products”, he said. In a similar vein, the Public Relations Officer, Lagos Painters Association, Sheu Arowolo lamented that most painters do not know much about the top quality of Berger Paint’s products saying I can assure every painter out there that Berger Paints is one of the best manufacturers of paints in the market as of today.

BANKING

Ecobank calls for collaboration to enhance digitisation in Africa

FCMB founder says education is critical driver of development

HOPE MOSES-ASHIKE

he Ecobank Nigeria has asked governments, private sector businesses and fintechs to collaborate more to evolve a digitalised continent. Patrick Akinwuntan, managing director, made this call on Tuesday, at the Africa Fintech Festival in Lagos, where representatives of African fintechs experts and representatives from various African countries gathered to deliberate on how to drive to transform, enable and facilitate continental technology. Akinwuntan said, “Africa is a vast continent with great potential to be realised. We have over 1.3 billion people with a combined GDP of $1.5 trillion and an economy where over 95 per cent of transactions are conducted in cash, which offers a tremendous opportunity thatwecanharnessviadigitisation. “Furthermore, there are over 444 million unique mobile phone subscribers and consumers spend upwards of $1.4 trillion annually. These ubiquitous mobile devices are the obvious tool to unleashing the power of digital across our continent and with the rising penetration of mobile broadband there are more possibilities ahead.”

He added: “The opportunities in Africa, the real challenge is to have a change of mind-set and the will is to actually exceed our expectations. So when people talk about infrastructure challenges, we should be remembering the ubiquity of the mobile phone and the ability now to reach every household with services in various segment be it identification, security, economic advancement, health, sports and more, we have the power to connect everyone, we have that in Africa today.” Akinwuntan stressed the need for more collaboration in the financial sector. He said, “Everyone has the opportunity and the value of the pie outside the financial system in Africa is much greater than the pie that is within the financial system. So we need to collaborate and why don’t we give our shoulder to the other party to ride on so we can get to the destination much faster so we would be able to have a sustainable ecosystem that unleashes the value of our over 1.3 billion Africans in our continent and the diaspora”. Furthermore, he said “we need a collaboration of all stakeholders and I cannot over emphasis that at the end of the day, it is an ecosystem and it is more value for more people of a great continent that we so cherish - that is Africa.”

he Founder of FCMB Group, Olasubomi Balogun, has described education as one of the critical drivers of development of any society. Balogun said this at the University of Ibadan’s 70th Anniversary Life Achievement and Honours Awards Night which recently held at the University of Ibadan main campus in Ibadan, Oyo State. It was an event that was the highlight of all the programmes lined up to mark the 70th anniversary of the university which was started in 1948 at Eleyele, Ibadan. In a lecture, Balogun also called on well-meaning Nigerians and organisations to support the development and growth of education in Nigeria with their resources. He said, ‘’It is incumbent on those of us that have been blessed with education, particularly higher education, to continue to give back, especially to those institutions that shaped us. Education can never be entirely funded by Government or private fees” He said many of the greatest institutions in the world had endowments running into hundreds of millions of dollars. And it is with these endowments that they have been able to fund research and build tomorrow’s leaders, innova-

tors and change agents. Chairing the occasion and represented at the event by the Group Chief Executive of FCMB Group Plc, Ladi Balogun, Balogun in a paper titled, “Higher Education and Philanthropy”,sought the nexus between Higher Education and Philanthropy. Well known for his deep philanthropy in Nigeria and beyond, particularly in education, healthcare, children and women welfare, religion and culture to mention a few, he revealed to the audience that a lot of the charitable undertakings associated with him, had been deeply influenced by Higher Education he was privileged to go through. Typical of an astute historian, the Asiwaju of Ijebu Christians drew from his rich experience, academic profile and personal life encounters to drive home the importance of education in the nation’s overall development. The Finance icon posited that Education has the capacity to stimulate a high sense of philanthropy in any individual who has benefitted from it. He opined, “I would also add that supporting education is one of the most effective means one can contribute to the betterment of society and upliftment of the less privileged”. Otunba Balogun said as he grew up, he had a lot of influences

which shaped his attitude to life generally and to his community. He became very concerned about his environment and the plight of people and institutions that had been close to him. He had gradually developed spiritually and emotionally and therefore began to consider the need to pay attention to philanthropy. The Grand Master of the Nigerian Finance Sector also linked the influence to both God and the divine guidance he began to experience which led to his being concerned about his environment and fellow human beings. Amongst other distinguished Nigerians, nearly 40 years ago, the University of Ibadan had honoured Otunba Subomi Balogun, with Doctor of Law (Honouris Causa). At another time, the University College Hospital, Ibadan, named after him, their Children’s Emergency Ward, “the Otunba Tunwase Children’s Emergency Ward”. Recently, the University of Ibadan renamed its Conference Centre and UI Hotels’ facilities “Otunba Subomi Balogun Conference Centre and Hotels”. However, and as a further contribution to welfare and survival of children, to serve as an external institution owned by the University of Ibadan, recall that on his 80th

birthday, the Banking Guru handed over to the University Medical School, as a total gift, the exclusive Paediatric institution, one of its first and largest in Nigeria worth over N4billion in the current market value. Besides the Chairman of First City Monument Bank Limited’s Board Chairman, Otunba Olutola Senbore, some of the distinguished Nigerians who received awards from the institution at this event were: President/Vice-Chancellor of Babcock University, Prof. Ademola Tayo; a former Vice-Chancellor, Obafemi Awolowo University, Prof. Adeniyi Osuntogun; and Managing Director/Chief Executive Officer of the Bank of Industry, Mr. Olukayode Pitan. Also on the list of awardees were Ambassador Folake Marcus-Bello; Vice-Chancellor, Crawford University, Rotimi Ajayi; Aderemi Kuku; Babatunde Salako; Benedict Oramah; Timothy Tayo; Abdul Fattah Mabadeje and Saida Mabadeje who was the first female PhD holder produced by UI in 1963; Folorunso Adu and Folarin Olawale Shyllon. Also included were Bode Akindele, Grace Alele-Williams, Bolanle Awe and Akin Mabogunje, among others.

Tuesday 11 December 2018

BUSINESS

COMPANIES & MARKETS

Business Event

DAY

BANKING

Sterling Bank partners Peugeot for 50 made-to-order vehicles HOPE MOSES-ASHIKE

n a bid to support the growth and development of the Nigerian economy, Sterling Bank Plc, has partnered with Nigeria’s premier automobile manufacturer, Peugeot Automobile Nigeria to deliver 50 made-to-order vehicles for official use across the bank’s locations nationwide. In a first of-its-kind partnership, Sterling bank teamed up with the Kaduna-based car maker to customise the vehicles based on their deep understanding of

the Nigerian terrain as well as required mode of usage. “Following our strategic drive as a bank to focus on impacting the critical sectors of the Nigerian economy, we had to evaluate every aspect of our business transactions to ensure we were doing same to support the growth of the economy. By acquiring our company pool cars from a local manufacturer, we ensured that not only will the funds circulate within Nigeria, the impact of the partnership will equally boost our local manufacturing sector to provide jobs and improve the skills of people participating in

that sector, said Raheem Owodeyi, Chief Operating Officer of Sterling Bank Plc. “We see this partnership as a game changer and one that will influence the perception people have about locally manufactured vehicles as the procured vehicles will be deployed in all our branches nationwide, said Adebomi Adewale, head, general internal services at Sterling Bank. “It is also the first time a bank in Nigeria will look beyond the short term gains of patronizing affordable foreign based manufacturers to the impact of its dealings on the wider economy”.

L-R: The Vice-President, Yemi Osinbajo(2nd right); Kwara State governorship candidate of the All Progressives Congress, Abdulrahman Abdulrazaq(right); with others , during the inauguration of TraderMoni at Ipata Market in Ilorin,Kwara State

HEALTH

PharmAccess, EDC produce first cohort of 41 graduands SEYI JOHN SALAU

he first cohort of 41 participants recently graduated from the Health Management Program (HMP) developed by PharmAccess Foundation and Enterprise Development Centre(EDC)ofPanAtlanticUniversitytodeepenandstrengthenhealthcare service delivery in Nigeria. In the course of its work, PharmAccess realized the need to build the capacity of healthcare providers to run a successful business as profitableentities.Hence,itpartneredwith EDCtodesignanddeploytheHealth Management Program (HMP). The HMP is a blended learning certificate program that is designed to teach healthcare providers about the business of healthcare. With a robust curriculum and a faculty that consists of seasoned local and international healthcare and business professionals, the HMP provides immense value to the attendees. PharmAccess subsidized the tuition fees for the participants graduating by 50%. Over the years, the foundation through the Medical Credit Fund has provided technical assistance to banks and facilitated the provision

of loans to about 400 healthcare businesses amounting to over $5.5 million. This was done in partnership withCommonwealthDevelopment Centre (CDC), UK. PharmAccess also engaged its partner banks, Diamond Bank and Sterling Bank to provide support for the program with the aim of making it more affordable to healthcare professionals across Nigeria. Njide Ndili, the country director of PharmAccess Foundation, said the foundation remain committed to supporting healthcare providers in Nigeria towards building a robust healthcare industry. “On this day, as we graduate the first cohort of 41 participants, we urge them to become our healthcare ambassadorsforgoodbusinesspractices and to carry your knowledge forward to others in their establishment. We also welcome more partners to support us in our efforts and in making this healthcare business training a prerequisite to running a healthcarefacility,sothatmanymore healthcareprofessionalscanbecome beneficiaries of it. What started as a dream in our minds to help build capacity in a structure system has become reality,” said Ndili.

According to one of the participants in the first cohort, Babatunde Olujobi, “Doctors are not taught about business in medical school and this program is one of the best things that has happened in the healthcare sector of Nigeria in recent times. The Healthcare sector will remember PharmAccess positively for this,” he said. Through its network and diverse activities,PharmAccesshasprovided participants in both cohorts of the HMP immense opportunities to partner with Lagos and Delta States government to operate primary health facilities under a public-private partnership arrangement. This is in line with its vision to strengthen thehealthsystemsinNigeriathrough an integrated approach. The first cohort of the program commenced in December 2017 with 41 participants from the public and private sectors of the healthcare system. Participants came from Lagos, Owerri, Asaba, Warri, Enugu, Calabar, and Awka. The second cohort commenced in September 2018 with participants from other citieslikeIlorinandAbuja.Thissignifies a high level of acceptance of the programbyhealthcareprofessionals in Nigeria.

(R-L): Taiwo Okeowo, deputy managing director, FBNQuest Merchant Bank; Patience Oniha, director-general, Debt Management Office (DMO) and Hajara Adeola, managing director, Lotus Capital Financial Services at the FGN SUKUK II Investor Forum which took place in Lagos recently.

MARKETS

Agusto & Co assigns B+ to Crownrise HOPE MOSES-ASHIKE

ndigenous credit rating company, Agusto & Co, has assigned a B+ rating to Crownrise Finance Plc. The rating is supported by the adequate capitalisation of Crownrise Finance Plc. Agusto & Co also attached a “positive outlook” to the rating based on the expected improvement in the funding profile, increased earnings and profitability of Crownrise Finance Plc. “This also represents a positive outlook for investors in our medium term investment and funds placement products”, said Babatunde Rufai-Lariba, managing director/Chief Executive, Crownrise Finance Plc. Crownrise Finance Plc is one of Nigeria’s first generation finance companies licensed in 1992 by the Central Bank of Nigeria (CBN). Following the industry challenges triggered by the 2008/2009 global economic meltdown, the company emerged with a capital base well

above industry threshold and now operates from its recently acquired corporate head office in Lagos. While the B+ rating affirms the impact of recent efforts of the company’s board of directors, led by Jonathan Babalola, a former Director of Other Financial Institutions Department of the Central Bank of Nigeria (CBN), to reposition the company to play critical role in the rejuvenation of the country’s economy, Agusto and Co however stated that the rating is constrained by some structural framework issues, including weak funding profile. “Going forward, we expect Nigeria’s economy to maintain its growth trajectory, notwithstanding the imminent election. This should spur business activities and demand for small, medium and micro loans and leases, and project financing, as well as create increased opportunities for finance companies such as Crownrise Finance Plc”. This will cause the company’s earnings and profitability to improve considerably. Commenting, Rufai-Lariba,

said: “The current board is committed to positioning the company as a leader in financing small and medium enterprises (SMEs) for profitable contribution to the economy while ensuring sound corporate governance and strong risk management practices, which commenced with raising the company’s capital base above the regulatory threshold. “Having achieved capital base above the regulatory threshold, the board and management have commenced implementing strategic measures to strengthen the risk management framework and enhance management capacity by recruiting highly experienced professionals with sound track record of performance. “We have also commenced moves to attract more funding from the investment community in order to increase the funding profile of the company. “These measures will enhance the ability of Crownrise Finance Plc to generate more loans, improve on our service delivery and deliver improved returns to our shareholders.”

L- R: Lanre Opesanwo, Solutions director: AB InBev BU West Africa; Otunba Michael Daramola, legal and corporate affairs director, IB plc; Folashade Omole, corporate affairs manager, Ilesa Brewery, IB plc, and Muyiwa Ayojinmi, company secretary, IB plc, at the International Breweries plc Kickstart Season 3 grants award ceremony which held in Ibadan at the weekend.

L:R: Men’s Style Blogger, Akin Faminu; Founder, Doo By Iyanu Founder, Iyanu Akinremi; brand manager, Heineken, Olaolu Babalola and senior brand manager, Heineken, Mfon Bassey at the Backyard Fashion Show sponsored by Heineken in Lagos, recently.

BUSINESS

DAY

Tuesday 11 December 2018

COMPANIES & MARKETS BANKING

Standard Chartered launches Visa Credit Card Modestus Anaesoronye

t a n d a rd C ha rtered Bank Nigeria Limited has partnered with Visa to issue a Visa Credit Card. Dubbed the 360° Rew a rd s, c u s t o m e r s w i l l re d e e m p o i n t s e a r n e d from a variety of local and international brands. Through this partnership, the Bank’s customers with credit cards can earn loyalty points whenever their cards are used across payment platforms including Point of Sale (P O S) or online for transactions. The Rewards Platform is an end to end solution managing both earning and usage of reward points via a comprehensive rewards catalogue. The program will reward Credit Card users with p o i nt s b a s e d o n e ve r y N100 and N200 spent for Platinum and G old credit card respectively. This is the first of its

k i n d i n Ni g e r i a a n d a cr itical value adds for our customers. Speaking on the l au n c h, Eb by Mo m o h, h e a d o f R e t a i l B a n king, Standard Chartered Bank Nig er ia L imite d , s a i d , “ We a re p l e a s e d to partner with Visa on this extraordinar y initiative. With the rewards initiative, all our clients can access over 2 0 0 , 0 0 0 i te m s ra ng i ng f r o m h o t e l a n d t r av e l booking payments to shopping online and can conveniently do so anytime and anywhere while earning p o i n t s o n t h e g o. A l l clients with credit cards will automatically earn points when they use their cards for various transactions and can use these points to enjoy more opportunities such as paying for services or products across various platforms. This is a first of its kind reward system and one of the many ways we continue to reiterate to our clients that we are here

Edo State Governor, Mr. Godwin Obaseki (in suit), flanked by Chairman, Edo State Universal Basic Education Board (SUBEB) and Special Adviser to the Governor on Basic Education, Dr. Joan Osa Oviawe and Edo Basic Education Sector Transformation (EdoBEST) field workers, at the Edo SUBEB appreciation banquet organised for the field workers in Benin City, Edo State.

for good.” The bank customers will be required to create a profile and register their credit cards to star t re de e ming ite ms from the new platform.

T h i s w i l l e na b l e c a rd holders to manage their p oints w ith more fle xibility and involvement. The self-service rewards portal also allows custo m e rs to t ra ck p o i nt s

and redeem directly. T h e B a n k ’s c r e d i t card is enhanced with a n a d d i t i o na l l aye r o f security through the Ve r i f i e d b y V I S A s e rvice. Through the VISA

secured network, the cards are even more p ro t e c t e d a g a i n s t u n authorized use and fraudulent activity while transacting online.

PUBLIC INSTITUTIONS

INEC insists only card readers will be used for 2019 elections OWEDE AGBAJILEKE, Abuja

espite President Muhammadu Buhari declining assent to the fourth version of the Electoral Act (Amendment) Bill, the Independent National Electoral Commission (INEC) has insisted that only smart card readers would be used for the 2019 elections. The comes as the Commission has downplayed the electronic transmission of results from Polling Units to Collation Centres in the forthcoming elections. The Commission also ruled out the use of Incident Forms in the exercise. BusinessDay reports that Incident Forms which involve the manual accreditation

of voters in the event of failure of the card reader, was a subject of controversy in the 2015 General Election. Speaking on Monday in Abuja at the Nigeria Civil Society Situation Room National Stakeholders Forum on Elections, INEC Chairman, Mahmood Yakubu, said the enhanced technological device, would be used for accreditation, verification and authentication of voters. It would be recalled that President Buhari had on December 7 declined assent to the Electoral (Amendment) Bill 2018 for the fourth time. In separate letters addressed to Senate President Bukola Saraki and Speaker, House of Representatives Yakubu

Dogara, the President explained that signing the amendment bill close to elections could “create some uncertainty about the legislation to govern the process. “Any real or apparent change to the rules this close to the elections may provide an opportunity for disruption and confusion in respect of which law governs the electoral process,” he stated. He, therefore, asked the National Assembly to specifically state in the proposal that the amended Electoral Act would come into effect after the 2019 General Elections. But in a swift reaction, the main opposition Peoples Democratic Party (PDP) described the move as an attempt to truncate

the forthcoming election by ensuring that card readers were not used for the exercise. Although the PDP and former President of Nigeria Bar Association (NBA), Olisa Agbakoba had called on National Assembly members to override the President’s veto, the Commission said it would not be drawn into such controversies, even as it urged the Executive and the Legislative arms of government to resolve the contentious areas in the bill. Represented by Festus Okoye, INEC National Commissioner and Chairman Information and Voter Education at the Commission, Yakubu said: “INEC will continue to follow its timetable and schedule of activities as well as its strategic

plan. The Commission assures the Nigerian people that the Smart Card Reader has become an integral part of the electoral process and will be deployed for the conduct of the 2019 General Elections. “The Commission has taken on board the glitches faced in the use of the Smart Card Reader in 2015 and has made significant improvements and upgrade in the Smart Card Readers. “The upgraded Smart Card Reader is more robust and has new features to store additional data and transmit election results. The Commission has also redesigned the voters register and abolished the use of Incident Forms. However, every PVC must be verified and authen-

ticated by the Smart Card Reader before a voter will be allowed to vote. “The Supreme Court of Nigeria commended the introduction of the Smart Card Reader in the electoral process and the Commission will not compromise on the use of Smart Card Reader for the 2019 General Elections”. In his opening remarks, Convener of Situation Room, Clement Nwankwo, said the controversy over the President’s refusal to sign the bill was needless, adding that the 2015 amended Electoral Act, signed by former President Goodluck Jonathan, had already legalised the use of card readers for voter accreditation, verification and authentication.

BUSINESS DAY

Tuesday 11 December 2018

Pierrine Consulting out with methodology on selection of brand ambassadors Stories by Daniel Obi Media Business Editor

ver the years, many companies in Nigeria have signed on brand ambassadors, perhaps on the rule of thumb, but only a few of them could really measure the impact of such deal running into millions of Naira. The companies either fall under pressure to sign a brand ambassador or choose a celebrity based on popularity without taking other nuances into account. When this happens, the brand will suffer disconnection with the consumer and the intention of engaging the brand ambassador which is promotion and increasing product sales, will be impaired. In this mix, therefore, Pierrine Consulting, a Nigerian specialist marketing research and strategy

firm with strong focus on helping clients achieve desired business results and future growth, recently unveiled Nigerian entertainment and Celebs report 2017 which will give companies insight on choice of brand ambassador for particular products, particular regions or national. The report, it is expected will save companies huge cost wasted on blind and inappropriate engagement of brand ambassadors. Speaking on the report conducted in partnership with Insight Publicis, Seyi Adeoye, the CEO of Pierrine Consulting said the report will definitely avail brands the intelligence on the use of celebrities as brand ambassadors or endorsers. The report also provided detailed analysis for brand custodians as to which celebrity best fits their brands’ image and specific marketing objectives, which in turn would inform activation decisions that will unlock the full potential of such multimil-

L-R : Muna Onuzo, Founder, Gazzelle Academy; Ejike Ndiulo, Head, Corporate Communications, Fidelity Bank PLC; and Sunny Messiah, Master of Ceremony at the Graduation Ceremony of Gazzelle Academy, a Fidelity Bank PLC Sponsored Project, at The Sojourner By Genesis Hotel, Ikeja, Lagos, recently.

lion Naira investments. The report, Adeoye said is a realistic evaluation of celebrities clout and real impact on brands’ awareness scores, affinity and usage/consumption of brands endorsed/represented. It also made a diagnostic view of celebrities for talent management/PR firms The report is in 3 parts. The first one is mind share, market penetration and favourite ranking of celebrities. This is dimensioned by key demographics and category usage. Second part is Perceptual Mapping of Celebrities which involves ‘Real’ perception imprint of celebrities and understanding brand fit and the third part deals on real value of celebrity endorsements dimensioning into celebrity clout framework: Real value of Celebrity to brands within the Nigerian market (Awareness, Likability and Usage/Consumption Impact). Using Pierrine’s Brand Equity Framework; a limited number of Nigerian celebrities have positive Brand Equity Ratings, that is loved beyond current collection of creative work + visibility. The research also found out that the ability of Nigerian music celebrities to radically impact fans’ brand purchase behaviour and interaction with brands, is still low at less than 50% weight. It is said Nigerians are very pragmatic and utility driven. The research shows that it is about product promised delivered and some respondents felt there are at times mismatch of celebrities and brands. The research provides insight for brand owners/custodians to be clear on business objectives to be achieved, get data on real value or utility of celebrities under consideration and intelligently estimate potential benefits or ROI of celebrities related sponsorships. 2018 report will be out in February 2019, Seyi said.

Africa Magic marks 15 years of entertainment for Africa by Africans

frica Magic, provider of entertainment content for Africa by Africans, is marking 15 years of magic, quality content and the continuous development of the local African television entertainment industry. According to the Channel Director, Africa Magic Channels, Wangi Mba-Uzoukwu: “For 15 years the Africa Magic channels have entertained viewers and audiences with the best content coming from some of the most amazing talent behind and in front of the cameras. In doing this, we have also undoubtedly led the development of the current African television entertainment scene, a role we continue to play.” Beginning with just two channels in 2003, the Africa Magic channel roster now includes six channels with three local language

channels: Africa Magic Yoruba, Africa Magic Igbo and Africa Magic Hausa. Speaking on the milestone in a statment, the CEO of MultiChoice Nigeria, John Ugbe said: “The celebration of Africa Magic is also the celebration of Africa’s film and television industry. The growth witnessed in the industry can be linked to the impact of the Africa Magic channels in operation across 53 countries on the continent. The Africa Magic channels have also consistently proven to be a platform for the unearthing, promotion and celebration of existing and up and coming film and TV talent, and the channels’ various means and models of industry partnerships ensure a steady line of critical investment in the industry.” Over the years, Africa Magic

has developed original content that continues to entertain Africa: from the flagship TV drama, Tinsel, which already holds the record for the longest running series in Sub Saharan Africa; to the Pan African drama series, Jacob’s Cross, magazine shows 53 Extra and Jara; and comedy series The Johnsons and Hustle. The channels are also known the telenovelas which have become television staples over the years including Hotel Majestic, Hush, Battleground, Ajoche, Forbidden and Eve.

Cartalogs, online marketplace for Cars launches in Lagos

artalogs, an online marketplace for cars in Nigeria has launched in Lagos. The brand said it is keen on making, verifying, buying, and selling of cars seamless and stress free. “In today’s fast developing world, Cartalogs puts its customers first through a rewarding journey by enhancing their car experiences”, the brand said. “Over the last couple of years, we have been looking for a way to make lives easier for people, especially when buying cars” said Kelechi Idoko, Cartalogs Founder. “ Our market research and interaction with people confirmed that people have become busier and crave for convenience when they

want to buy, verify or sell cars. While we wanted to serve that fundamental human need, we also wanted to build a platform that is super easy to navigate and use, to truly enable people to live without stress. We must adopt a revolution where buying or selling a car should be as easy as ordering a taxi from your comfort zone” he said. “This is an exciting journey for us and marks a strategic pivot in our future direction as a brand,” said Ogbonna Ukwuaba, Head of Operations. “While we’re young, and our commitment to the community we serve will not change, there is incredible potential to grow. Our new brand proposition positions us for those opportunities.”

Hero brand empowers consumers with cash prizes

ero Lager, a foremost quality beer brand and one of the national treasures from the stable of International Breweries Plc, a proud part of the AB InBev family, has rewarded another set of 43 consumers with cash prizes and gifts in its ongoing national consumer promo, tagged, HEROnaires Mega Promo, 2018 Edition. The winners emerged at various draws held across the country, bringing the total number of consumers who have won N1 million and other consolation prizes to 97 since the promo kicked off on 1st October, 2018. The HEROnaires Mega promo is a reward scheme offering consumers who are above the legal drinking age of 18 with N1 million weekly wins for 17 weeks as well as cash prizes of N50, 000 over the next two months. “As a business, our dream is to bring people together for a better world. We are therefore delighted that Hero Lager is able to reward and empower loyal consumers via this exciting and life-changing promotion. We are committed to impacting lives for good and putting smiles on the faces of our consumers by creating an opportunity for them to become millionaires,” said Marketing Director, Interna-

tional Breweries Plc., Tolu Adedeji in a statement. “We encourage all our existing and potential consumers who are within the legal drinking age to participate in the ongoing promo and increase their chances of belonging to a tribe of HEROnaires,” she added. “As we enter the season of sharing, caring and giving, what better way is there to salute our teeming consumers than avail them with the opportunity to become success stories as HEROnaires.” On how to be the next HEROnaire, Tolu explained that all consumers need do is to simply text HERO and the unique code under the crown cork to 3810 and they will be eligible for the draws and subsequent entries will qualify consumers for the weekly cash prize of N1 million and other mouth-watering consolation prizes. Marketing Manager, Hero Lager, Obumneke Okoli, said, “HERO has continued to inspire Nigerians on their journey and helping them to achieve heroic feats and giant strides. Our products are highly famed for quality and also the exceptional consumer experience they provide. We are happy because this platform is an avenue that is translating the dreams of our consumers into reality.”

BUSINESS DAY

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Tuesday 11 December 2018

Nigeria’s multi-billion Naira Out-ofHome industry in a new phase Nigeria Out-of -Home industry is set for a new phase as JCDecaux, a Paris based multibillion dollar outdoor advertising industry enters Nigerian market. The 54 year old international company with presence in over 80 countries partnered an indigenous firm to establish JCDecaux GraceLake Nigeria. It has come not only for advertising purpose but social service concentrating on easing traffic and providing free-to-use toilets for Lagosians. Daniel Obi looks how the juxtaposition of social service blends with advertising drive. Traffic and economic implications ridlock on Lagos roads has worsened in the past few years. The deteriorating traffic situation is giving both the state government and commuters’ serious concern. Sometimes, commuters invest over 3 valuable hours for about 10 kilometres journey within the city. The cost of the traffic which has become perennial is not only on precious time but also on health and economic development. A report published in MedicalNewsToday states that cars waiting in traffic jams contain up to 40 percent more of air pollution than those that are moving. “Air pollution contributes to lung cancer, asthma, and other respiratory diseases, and it has been associated with heart disease and stroke”. The report further quotes World Health Organization (WHO) as describing outdoor air pollution as a “major environmental risk to health,” linking it to 3.7 million premature deaths worldwide in 2012. Traffic also costs man-hours which ordinarily could have been deployed for productive activity. When there is heavy traffic, commercial vehicles increase fares to the detriment of commuters. All these are unquantifiable economic costs to both individuals and the state. Private sector intervention Almost every challenge has solution and with creativity and out of box thinking, solutions will definitely come. This is the belief of JCDecaux, a Paris based outdoor advertising agency but with global presence and its local partners in Nigeria, GraceLake. The duo formed JCDecaux GraceLake Nigeria. JCDecaux operates in over 80 countries, 4,000 cities and employs 13,000 people. On entry into Nigeria, one major challenge that stared the officials of JCDecaux on the face, after being persuaded to come to Nigeria, was Lagos traffic. JCDecaux which is not just an outdoor advertising business but essentially an innovative public service business, in partnership with GraceLake was initially searching for social public service to embark upon in Lagos in addition to its outdoor services. The depth of the traffic challenge became obvious when officials of JCDecaux on the last day of their official visit to Nigeria were told to check out from their hotel on Island by 5 pm to airport for a flight of 11

pm to obviate traffic. At this point, it hit them that this is a challenge that needs solution. One of the partners of JCDecaux GraceLake Nigeria, Mark Cooper who is also CEO, Sub Saharan Africa for JCDecaux said at the unveiling of the company in Lagos recently that it was at this period that they realised that the ugly development is not sustainable. “This is not good to the city as it restricts the city’s capability for strong economic productivity”. The company did not stop at just the observation of traffic as a challenge, it further embarked on research, interviewing 60,000 Lagosians on their annoying issue in Lagos. The research confirmed that traffic is the second annoying issue to Lagosians. It was also discovered that commuters spend average of 30 hours on traffic a week. This is compared to some employment hours of 40 hours a week. “This is a lot of time in traffic”, Cooper said. Based on this, the company started working on putting together a public service project that can be part of the solution to traffic management in Lagos. The company came up with Lagos Transport Information System, LATIS, an electronic information board that gives drivers real-time information on traffic. Some of the JCDecaux GraceLake digital billboards are demarcated with one side serving the LATIS purpose. What the board does is to provide information on congested roads

by stating time it will take a driver on a particular road to arrive at his destination. This will allow drivers to decide to take alternative routes. This traffic information system, a first for the group, has been specially designed to meet Lagos’ needs and help ease traffic flow in the city by suggesting alternative routes and estimating times of arrival. Though there are no many alternative routes in Lagos. The information on traffic situation is gathered through about 100 sensors strategically located in some parts of Lagos. As people move on the road, their watches, laptops, phones, even when they are off emit some kind of rays which the sensors pick to understand how fast they are traveling. “With that, we can understand where people are going and how fast they are going and we can understand what is slowing them down. This data enables us to predict travel times to certain destinations on certain routes within the catchment areas we created”, Cooper further explained. The thinking behind this social project is to obviate traffic induced stress and reduce number of hours Lagosians spend on traffic and possibly deploy those saved hours to productivity. According to Mark Cooper, this system has been deployed in Mumbai and it has reduced number of hours commuters spend on traffic by 25 percent. “If we can achieve even 20 per-

cent of the 30 hours that Lagosians spend on roads, that is 6 hours for Lagosians to preserve their health, be productive and attend meetings and engage in many productive activities”, Cooper said. As part of its social service, JCDecaux GraceLake is installing network of solar-powered bus shelters and automatic public toilets in some bus terminals. After installing 5 toilets at strategic bus stops including at Iyana Oworo and Berger, 3 months ago for free of charge, over 37,000 have used them. It is believed that these facilities will help meet environmental and social commitments by encouraging mobility, easing road traffic, promoting hygiene on the public highway, creating sustainable skilled jobs and encouraging the training of a local workforce. Stimulating OOH in Nigeria Interacting with BusinessDay, Mark Cooper, said the company is in Nigeria to make a difference and improve the Out of Home industry so that more advertisers could be attracted to the industry. He believes that the quality of OOH in Nigeria still needs improvement as millennials want to be communicated with high technology. Today, he said there are many channels to reach the consumer and therefore it is imperative that out -ofhome industry continues to evolve to remain relevant. The arrival of JCDecaux GraceLake in the outdoor advertis-

ing market of Nigeria is expected to increase the market’s value estimated at €115 million, (about N47.8 billion); offering brands an unprecedented digital communications platform to grow their audience. This partnership gives JCDecaux a foothold in Nigeria, the largest economy of the continent, with GDP of over €332 billion in 2017 and the most highly populated country in Africa, with 190 million people (a population which will double in the next 30 years). The partnership will also help maximise the economic potential of Lagos, Africa’s biggest city, the economic capital of the country. With nearly 23 million people, it is market with huge potential for advertisers and media agencies. Cooper said local content operation of JCDecaux GraceLake in Nigeria is 100 %. “There are no expatriates working in JCDecaux GraceLake in Nigeria. Manufacturing of equipment and management is done by local people”. Considered as one of the busiest cities in the world, Lagos is planning to install urban infrastructure that will provide a high-quality public service and accelerate its transformation into a smart city pioneer on the African continent. Cooper who said the company which has already invested multimillion dollar in the business and it is here to stay for a long term further clarified that its intention is always to enter into a stable market.

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Marketing&Pr Gridlock, waste management top challenges facing Lagos next governor Daniel Obi

t may sound early to table challenges facing next Lagos governor as candidates are now focused on winning the election, but the challenges which are annoying to Lagosians could form part of the politicians’ campaign messages and winning strategies. Whoever therefore emerges as next governor of Lagos State should on day one of his assumption of duty on May 29, 2019 roll up his sleeves for work. This is because Lagosians expect much from him and his team as there is much work to be done. The governor is expected to immediately tackle waste which has given the city a new coloration. Lagos, Africa’s biggest city, and the economic capital of Nigeria has become filthier with waste dumps at every corner which does not create a positive image for it. Though the challenge of waste management is a global issue but some cities have become successful in dealing with the issue with good planning while others like Lagos is still struggling. Lagos is said to be over-populated as it report indicate that it was planned for about 17 million people but now houses 5

million more people. This therefore calls for more responsibility and pro-activeness on the city managers. The state may need to re-introduce the monthly environmental sanitation exercise as part of efforts of creating consciousness among Lagosians on waste disposal as it puts other plans in place for adequate waste management in the city. It is not clear what informed the choice of the ‘Centre of Excel-

lence’ sobriquet chosen in about 1992 when states adopted slogans during the introduction of Vehicle registration number but whether Lagos is living up to the slogan or not, next governor should have the determination to give Lagos a new chapter. Another annoying issue in Lagos is heavy traffic on Lagos roads which has worsened in the past few years. The deteriorating traffic situation is giving both the state government and commuters’ serious concern. Sometimes, commuters invest over 3 valuable hours for about 10 kilometres journey within the city. The cost of the traffic which has become perennial is not only on precious time but also on health and economic development. A report published in MedicalNewsToday states that cars waiting in traffic jams contain up to 40 percent more of air pollution than those that are moving. “Air pollution contributes to lung cancer, asthma, and other respiratory diseases, and it has been associated with heart disease and stroke”. The report further quotes World Health Organization (WHO) as describing outdoor air pollution as a “major environmental risk to health,”

linking it to 3.7 million premature deaths worldwide in 2012. Traffic also costs man-hours which ordinarily could have been deployed for productive activity. When there is heavy traffic, commercial vehicles increase fares to the detriment of commuters. All these are unquantifiable economic costs to both individuals and the state. A recent research by JCDecaux Grace Lake, an outdoor advertising firm reveals that Lagos commuters spend 30 hours on traffic weekly. This is huge when compared to weekly 40 working hours in some companies. The hours spend on traffic impairs productivity. The outgoing governor, Akinwunmi Ambode tried in his ‘Itesiwaju’ slogan, interpreted to mean ‘Lagos is moving forward’ by constructing laybys and filling potholes to ease gridlock, but narrow roads, indiscipline by motorists and congestion at Apapa which has reverberating effect in other areas have assisted to compound traffic in Lagos. Lagos State needs to assist to mount pressure on Federal Government to open other sea ports to decongest Apapa so that the city can breathe with flowing economic activity. Next Lagos governor also has the task of completing several ongoing projects in Lagos. Some of the road projects have made traffic unbearable, but when completed, Lagos will experience a better life. Ambode has equally expressed delight that the next governor would complete the projects. Indiscipline by motorists, driving against traffic and menace by ‘Okada’ riders are other issues next Lagos governor must look into towards creating a modern city. It is crazy that in some instances, it has become ‘lawful’ to drive against traffic in Lagos. This cannot continue in Lagos’ quest to position itself as tourist destination. Today, Lagos which is home to many Nigerians and foreigners has physical planning defects. Roads

have been taken over by markets; some buildings have unapproved attachments; some residential building are constructed without proper supervision and approvals leading to collapses; churches, mosques and filling stations are sited within homes with external very loud speakers and its attendant noise pollution; and kiosks in various ugly shades have taken over gutters and roads which assist in congesting the pathways leading to traffic jams. Lagos cannot continue this way and still attract the expected respect, brand and tourism within competing international cities. While next governor may take a second look at kiosks that are built on gutters, which, apart from their ugly looks, make it difficult to clean the drainage for easy passage of flood, it will be interesting if he revisits Makoko in Yaba for proper replanning. The view of Makoko from Third Mainland Bridge is not really good enough for Lagos brand. Within Lagos, there is increase in shopping malls. This is a welcome development in a city like Lagos to encourage consumer spending but it would be untidy to site any shopping malls without enough parking space. Some of these shopping malls are already causing traffic difficulty. Akinwumi Ambode, the 14th Governor of Lagos State Lagos State governor has tried his best towards moving Lagos to ideal model city. His application to re-construct the long abandoned and dilapidated but very important AirportOshodi road and the subsequent approval by Federal Government; removal of round-about along Lekki and the construction of layby on major roads to ease traffic are indications of his determination to give Lagos a new look and ease traffic-induced stress. He has also displayed determination for good transport system, enhancement of BRT system, and sustenance of lighting up Lagos. Lagosians are simply expecting much from their next governor as the city must be an ideal city.

2018 LAIF Masterclass: How African brands can compete against global rivals-experts

dvertising and brands experts in Africa have been advised to move beyond offering creative services by adopting strategic brand planning and being more innovative with their solutions in order to compete with global brands. This was the aggregate of views expressed by speakers at the 2018 Lagos Advertising and Ideas Festival (LAIF) Masterclass, organised by the Association of Advertising Agencies of Nigeria (AAAN). The session, which held recently in Lagos, had as theme: “Africa Brands Revolution: Why Global Brands Dominate Africa”. The speakers emphasised the need for advertising agencies and

brands experts to appreciate the huge potential of the market, improve the level of collaboration and own the narrative of the stories told through advertising campaigns in order to build brand visibility. In his opening remarks, Ikechi Odigbo, AAAN President, said the continent’s advertising agencies need to move beyond gaining the largest market share. He stated that Africans are endowed with creative people, but noted that creativity must be redefined for the industry to be acknowledged on the world stage. “If we look at the development market and the big nations, we would see that there are three pillars for driving growth organically. Infrastructure

is one, education is another and innovation is the third. “We may not have enough input to make the area of infrastructure and education, but we have a lot to contribute when it comes to innovation and I sincerely believe that as a community of strategic thinkers and creatives, the advertising sector is positioned to play a vital part in shifting the trajectory of the African story. “We can start by redefining our role as not just being advertising practitioners but creative business solutions providers; as not only existing to creative campaigns but to drive problem-solving innovations,” he said. Delivering the keynote address, Thebe Ikalafeng, founder and Chair-

man of South Africa’s Brand Leadership Group, noted that Africans had underestimated and sat on their ideas for long, with Europeans and Americans repackaging such ideas and selling them back to the continent at a premium price. He stated that Africans must rise to the challenge by creating made-in-Africa brands, control the narrative of advertising campaigns, create compelling stories to persuade African consumers to purchase local products, protect ideas and be more innovative. “We are a continent that no longer just fights; there is a relative peace. It is time to revolt and give back and take the fight to the global brands like

they’ve never had. “We need to understand that we need to take our business up the value chain, we need to add some value to what we do from the raw materials that is exported from the continent, we need to brand because that is the only way we are going to create economic value. “We need to create our own African brands, we need to support our own made-in-Africa brands and the only way to do it is to reclaim our culture,” Ikalafeng said. He also urged African agencies and advertiser to carry out more research before producing brands, adding that only two per cent of African companies carry out

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EDUCATION

Weekly insight on current and future trends in education

Primary/Secondary

Higher

Human Capital

How private sector is changing the narrative in funding secondary education KELECHI EWUZIE

o doubt, one major challenge education sector in Nigeria has continued to battle with is funding especially for the low income people. This major factor confirmed recent figures issued by the Universal Basic Education Commission (UBEC) that the population of Nigeria’s out-of-school children has increased from 10.5 million to 13.2 million. The increase in this number is basically tied to lack of fund to cater for basic education in Nigeria. To address this major gap, FoodCo Nigeria Limited, a consumer goods company has announced a long term scholarship scheme for various public schools in Ibadan. Some of the schools include Oba Akinyele High School; Basorun Ibadan; Queen School Ipata Ibadan; Government College Ipata; The Oyesina Model Secondary School; Community High

R- L: Tajudeen Akande, Senior Partner of PKF Nigeria with Ahmed Mohammed, President of Institute of Directors (IoD), and Chris Okunowo, First Vice-President, during the investiture of Akande as Fellow of the Institute in Lagos recently.

School Alegongo, Ibadan; Methodist Secondary School Ibadan, and Urban Day Secondary School, Jericho, Ibadan. Solomon Huesu, marketing manager, FoodCo Nigeria Limited while speaking dur-

ing the commencement of the scholarship scheme at Ibadan over the weekend, said the scholarship scheme is part of the company’s Corporate Social Responsibility (CSR) programme of giving back to the community.

“Today we are kick-starting the process of the Adegbenga Sun-Bashorun scholarship scheme. It is a CSR initiative where we want to give back to the society by giving scholarship to brilliant students in the city of Ibadan. They have

come here today to write an examination, after which we will pick the best among them to be awarded the scholarship. The results of the examination are not out yet. “Over 1,400 students entered to write the examination and we will pick the best among them and scholarship will be awarded to over 400 students. FoodCo has been here for over 30 years; we have served the community and have grown the brand. So, as a firm, we want to give back to our community. We want to raise leaders of tomorrow and to go beyond being a commercial entity that serves for profit to being that brand that gives back and invest in the society where it operates,” Huesu added. He explained that students that wrote the examination are from public schools and some of their parents are struggling with finance to take them to school, adding that what FoodCo is looking at doing is giving the students world class education,

thereby providing them a platform that will make them excel anywhere in the world. According to him, “If you educate one person, you have liberated a whole family, so giving scholarships to people who may not have been able to achieve this kind of education will change the story of the family that the scholarship is going into. The scholarship will cover from junior secondary school to senior secondary education. The scholarship will last as long as the student continuous to perform well. There are plans on how the scholarship will run and all of them are being worked out by a board in charge of the scheme. “This is the first edition of this award. We have several other CSR initiatives. We have done Christmas parties for members of the community but now we are taking it to another level. A couple of weeks back, FoodCo also announced a scholarship scheme for its staff and this is just an expanded part of the programme.

Educationists mull support to address challenges Pan Atlantic University honours 69 of children with special education need pioneer first-degree graduates

ducationists have called for both government and private sector support in order to address the challenges that children with special education need face. They observe that special education has always been a challenging area, as most institutions lack the resources and expertise to provide support for children with special educational needs in Nigeria. Femi Gbadebo, an education stakeholder at the official opening of Anthos House, an initiative of Greensprings School observes that the problem a lot of parents face especially those whose children suffer from intellectual disabilities is their inability to gain admission into a university after they finish secondary school. Gbadebo opines that Nigeria need to understand the purpose and meaning of inclusion adding that a child being disabled means

that they may not be able to cope in a normal classroom environment. According to him, “These children require special skill training that will enable them cope better in life which is what Anthos House is out to address”. Kimberley Scollard, head of Anthos House, says the center is built to help children to understand and connect with their learning styles adding that this will be supported by using systematic methods to discover their skills, abilities and individual needs. Scollard while speaking to journalists at the official opening of the center in Lekki Lagos says the center will care for children with special needs such as Autism Spectrum Disorder (ASD); Dyslexia; Down Syndrome; Attention Deficit Hyperactivity Disorder (ADHD) among others. According to her, “Anthos house is a community which not just admit students to

the school for special needs, it will provide: Therapy; Counselling and Assessment; Training”. She further urged parents searching for the right school for their children’s special education needs to bring them to Anthos House which is a unique place for children to learn and grow. Lai Koiki, chief executive officer, Greensprings educational services limited, speaking at the official opening of the Anthos House said there is need to managers of education to think of vocations that people with special education need can engage in after leaving secondary school. She said it is important to think of how to make people with special education needs become Independent and to reintegrate into the society, adding that there was a need to have some set up that will give them that one on one accommodation and support and train them to be independent.

an-Atlantic University has honoured 69 candidates as pioneer first-degree holders at the 15th convocation ceremony of the institution in Lagos. The beneficiaries include 19 Accounting graduates, 25 Business Administration graduates and 25 Mass Communication graduates. Oluwadarasimi Tijani who studied Accounting scored a CGPA of 4.93 out of 5 to top the graduating class. Augustine Chukwuma Nwosu with 4.60 CGPA led the Mass Communication class while Kehinde Olaide Kehinde with 4.90 led in Business Administration. Chisimchere Akunna Chukwu of the M.Sc. Journalism stream topped the master’s degree class. Kizito Alakwe, an entrepreneur in the integrated marketing communication space, emerged the first to earn a Doctor of Philosophy degree in Media and Com-

munication from the School of Media and Communication. The University also awarded cer tificates to 235 successful candidates at the event. The candidates emerged from three schools of the institution, namely the Lagos Business School (LBS), the School of Management and Social Sciences (SMSS) and the School of Media and Communication (SMC). They included four candidates from the Post Graduate Diploma in Media and Communication, 34 in the full-time M.Sc. in Media and Communication, seven from the part-time and one in the Doctor of Philosophy programme. The MBA programme of the Lagos Business School graduated 117 candidates. There were 27 from the fulltime programme; 69 from the Executive MBA, 21 from the Modular Executive MBA. There were also a successful

MPhil and two PhDs in Business Administration. Pat Utomi, Pioneer professor of entrepreneurship at the Lagos Business School of the university affirms that education matters and made the difference between Africa and Europe in development Utomi while delivering the convocation lecture stated that studies and experience have shown however that education, healthcare and culture are pillars of progress for societies across all areas of development. He observes that while the whims of government policy may hobble the trader, the educated man can more readily change course relying on the solid foundation of his education. Utomi charged the new graduates to go out as “values-driven leaders” confident in their capacity to tackle the challenges of a changing world including the age of the Fourth Industrial Revolution.

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Tuesday 11 December 2018

EDUCATION Students urged to Professionals want govt to give 30% focus on talents, abilities in choice decision-making positions to youths of careers Stories by KELECHI EWUZIE

rofessionals in the legal and religion sectors of the economy have called on governments to give youth the needed opportunities in decision making. According to them, Nigeria youths cannot be considered as failures if opportuni-

ties are not given to them to lead and be part of decision making in the society. Emperior Chris Baywood Ibe, founder/chairman, Board of Baywood Foundation, said unless managers of the economy make the youths part of decision making, the future of the country maybe in jeopardy. According to him, “The proposed affirmative action at the African Union

level advocates the reservation of up to 30 percent of decision-making positions in all offices particularly in governments for the youth”. Speaking at the official book presentation of ‘Beyond Rhetoric: Youth Empowerment and Political Voice in Nigeria’ in Lagos, Ibe said that the book represents his contribution to humanity. According to him, “The

reason I am on earth is to put smiles on peoples face, especially the youth. Therefore, I dedicate the book to every youth, my children and your children. The book is a legacy”. E m m a n u e l Ij e w e re, chairman of the occasion, said the book is about righting the wrong and it covers a wide spectrum of ideas adding it is a deliberate

Folake Oyewole, Lagos State Eduquality team leader presenting a certificate of excellence to Feyisara Ojugo, principal, Greensprings Secondary School, Lekki campus recently

policy to engage the youths for the political progress of the nation. Ijewere while emphasising on affirmative action opines that the only way out is for the youths to grab power. He further stated that Youths should take advantage of the opportunity and change Nigeria stressing rather than talk about affirmative action; it should be complemented with direct action. Abdul Hussaini, country director, Plan International, Abuja and in his keynote address said that issues concerning them have been key conversation globally, adding that Africa’s greatest strength are its youths and with them it can surmount the challenges ahead Hussaini expressed concerns about the marginalisation and misconception of Nigerian youths, stressing that youths are neither lazy nor criminal but only denied of their rights. To him, Political parties have failed to give youths the platform to make progress. Other dignitaries who spoke at the event included: Ayandiji Aina, vice chancellor, Caleb University; Patricia Donli; Hussaini Abdul; Odein Ajumogobia, A.A Madu and Emmanuel Afam Ugwu.

Lagos Eduquality team awards Greensprings School certificate of excellence ….As student wins national speaking competition

agos Eduquality assessment team has awarded Greensprings School, Ibeju-Lekki, Lagos a certificate of excellence for her outstanding contribution to the development of education in the state. The yardsticks for the award include the learning environment; leadership and management; outcomes for learners, teaching and learning curriculum, personal skills and participation and care guidelines and safety. Folake Oyewole, the Eduquality team leader while speaking after visiting the

school to assess its operational procedures for delivering education in the state, commended the management of Greensprings School for the high quality structures put in place for learning. Oyewole linked such infrastructure to a solid foundation for developing future leaders, as well as encouraging teachers’ professional development. Feyisara Ojugo, principal, Secondary School, Lekki campus of the school stated that it is an honour to be recognised as an outstanding institution that is adding value to the society.

A c c o r d i n g t o h e r, “Greensprings School prides itself as being the first Thinking School in Lagos; we are always ready to learn new ways of delivering quality and well-rounded education, in order to support our children to be the best they can be.” Meanwhile, Morayo Ajetumobi, a Year 10 student of Greensprings School, Lekki campus emerged the winner of the 2018 National Youth Speaking and Leadership Competition (NYSLC) for Secondary Schools and Sixth Form Colleges held at Oxbridge Tutorial College,

Ikeja, Lagos. Morayo Ajetumobi in her response after winning the competition stated that she is extremely happy, adding that she had no idea of the topic until the day before, but had no choice but to prepare for it, despite having series of tests in school. “I will definitely prepare better for my next speaking competition, because I am sure I can do even better”, she added. The event commenced on the 21st of November with training sessions for secondary school students in partnership with Associa-

tion of Private Educators in Nigeria (APEN). The project organisers Florence Olumodimu, Victor Ajufoh-Obi, Titi Idowu Akerele and Abiola Owolagba revealed that the competition was in two parts. The first part was a prepared speech which lasted for four to six minutes titled ‘The Role of the Nigerian Student in Nation Building’. The second part was an Impromptu speech for one to two minutes, on a topic assigned by the moderator. After careful evaluation by the panel of judges, each student is scored accordingly.

tudents across the country have been charged to focus more on their abilities and talents in order to take advantage of opportunities in their chosen career. Linda Onefeli, vice chairman, Association of professional bodies of Nigeria, Lagos State chapter and the incoming chairman said the annual career counselling is designed for senior secondary school students in public schools to expose them to career options and factors they need to consider before making a career choice. Speaking in Lagos at this year’s career talk which is part of activities of the Association of professional bodies of Nigeria professional week, Onefeli tasked participants on how to make a success of their career choices. She said the annual event is organised to ensure that professionalism does not dwindle under our watch and it is at this time that we get the interest of students in the profession. Onefeli called on the students to take advantage of the career guidance information they were provided which is in line with best practices, to achieve their full potential. She opines that career choice should be hinged on passion, adding that students should read wide, cultivate mentors and ignore distractions. While encouraging the students to dream big, she urged them to develop their passions and interests to guarantee a bright future. Other professional members of APBN who talked to the students about, the financial sector disclosed to the students that the knowledge they now have will help them find disciplines that they are passionate about.” They pointed out that students need to develop the skills needed to succeed in their various disciplines. Analysts urged the students to be diligent, prudent and keep good company. According to them, “Life is about your passion, but education is important. The relationship is symbiotic because it is actually your education that will determine how far you go with your passion. Don’t be upset that you don’t have anything now, but focus on what you are going to do in your own circle,” This years’ career counselling programme which held at New Era girls’ secondary school, Surulere, Lagos was introduced to complement other initiatives of the company targeted at the education sector.

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EDUCATION GE Nigeria commits to skills devt with launch of e-learning portal KELECHI EWUZIE

n line with its commitment to skills development and the empowerment of entrepreneurs in Nigeria, GE Nigeria has launched a new e- learning portal as part of a year-end series of events held annually at the Lagos Garage. The launched of the elearning portal for the Lagos Garage advanced manufacturing training programme with the objective of extending the training programme’s reach to thousands of Nigerians across the country. During Garage week, GE opens up its innovation hub to the public for interested entrepreneurs to register for carefully curated courses in advanced manufacturing and business development. Courses on offer introduce participants to principles of 3-D printing and rapid prototyping as well as a range of business development skills in Finance, Personal Branding, Marketing and

Innovation. Patricia Obozuwa, director, Communications and Public Affairs, GE Africa speaking at the portal launch expressed pleasure at the continued success of the Lagos Garage since inception. “Our goal is to empower Nigeria entrepreneurs with the relevant skills required to compete on a global scale. I’m happy to say that so far, over 250 people have successfully graduated from the advanced manufacturing training program we offer here at the Garage” she said. Obozuwa added that with the e-learning platform, interested entrepreneurs no longer have to be physically present at the Garage to benefit from the innovative training the hub offers. “This platform will make the training on offer at our GE hub reach a much wider audience than ever before, thus increasing the number of beneficiaries and making it more impactful. This has always been our goal: to reach the maximum number

Some pupils who benefited from the Foodco initiative tagged Adegbenga Sun-Bashorun Scholarship in Ibadan over the weekend.

of Nigerian entrepreneurs in a short period, delivering valuable training that they would otherwise not have access to.” Hakeem Fahm, commissioner of Lagos State Ministry

of Science and Technology commended GE on being a collaborative partner of the Lagos State Government for several years. Fahm who was who was represented by Kayode

Interswitch challenges Makoko children on solutions to Africa’s problems

an-African digital payment company, Interswitch Group, through its Foundation, has collaborated with the Slum2School initiative to mentor school children in a Mentorship Masterclass held in Makoko. The Mentorship Masterclass which is a vehicle of the Interswitch Group’ Employee Volunteer Network under the Interswitch Foundation, is dedicated to raising young people who will solve Africa’s problems. The first edition of the Mentorship Masterclass was themed: ‘Turning Problems

into Opportunities; The African Narrative’ and was attended by children living in Makoko, a slum in Lagos. Emuobosa Akpene, head, CSR and events, Interswitch in her opening remarks stated that the session was an avenue to nurture the untapped potentials in African children as problem solvers. She said: “There are so many underlying potentials within you and Interswitch believes in your abilities. We are counting on you to solve Africa’s problems”. The principal mentor of the day was Ehia Erhaboh, Group Head, Business Transformation and Excellence,

Interswitch Group. He encouraged the students to identify opportunities in every problem. Ehia supported his words with inspiring videos of young Africans who had made huge impact in their communities. The session was an educative, inspiring and interactive one for the Slum2school beneficiaries who were urged to turn the problems that exists within their environment into opportunities. There were many exciting activities for the students to participate in. The smiles on their faces proved that they had fun, as the students were very eager to answer questions and proffer

innovative solutions. Ehia further urged the students to always be ready to help and think of ways to make life better in their community. “More importantly, you must learn to take action. No matter how much knowledge you have, it would all go to waste if you do not act”, he added. The Interswitch Mentorship Masterclass is a mentorship series under the Interswitch Employee Volunteer Network. Each session will feature employees of Interswitch Group volunteering to engage, inspire and motivate students to achieve their dreams.

HP foundation to educate 100,000 youths across Africa by 2021

P Fo u n d a t i o n through its Learning Initiative for Entrepreneurs (HP LIFE) programme has pledged to empower 100,000 learners across Africa in the next three years through the HP opens a tech-enabled HP LIFE Center. Part of HP’s goals is to enable better learning outcomes for 100 million people by 2025, and to enroll a million HP LIFE users between 2016 and 2025.

“We believe that education is a human right, that technology in the classroom is a critical component for a 21st century education, and that in today’s economy our learning is never done,” said Nate Hurst, Chief Sustainability and Social Impact Officer, HP. “Africa is experiencing rapid urbanisation and digitisation and it’s essential that people have access to learn skills for the work of tomorrow. This new HP LIFE Cen-

ter provides a launch pad for innovation and opportunity across the continent.” “Sustainable Impact is fundamental to our reinvention and core to achieving our vision to create technology that makes life better for everyone, everywhere,” said Hurst. By 2030, Africa will be home to 32% percent of the population under the age of 30, and the largest working age population by 2035. Yet, today’s youth unemployment

in Africa is up to 3 times higher than adult unemployment. HP LIFE offers free, online learning for users to gain the skills to start and grow their own business or improve their employment opportunities. Building on the success of this global programme, HP is working with partners to open technology-enabled HP LIFE innovation centers to further support entrepreneurship and workforce development across the continent.

Ogunnubi, Permanent Secretary in the ministry congratulated the company on the launch of the Garage e-learning portal saying, “Lagos state is at the forefront of ICT development in Nigeria

and training programs like the GE Garage that equip youths with innovative skills is one of the ways we believe we can develop the economy of the state and by extension the entire country.”

OIS anniversary play addresses leadership issues in Nigeria

s part of its silver jubilee celebration, one of Nigeria’s prestigious secondary schools, Olashore International School, has addressed contemporary issues in a given Nigerian community one of which is leadership. The issue of leadership resonates with the leaderships in every sector of Nigeria. Staged in Osun, Lagos, Ibadan and Abuja recently, the Play which was written by Chief Jimi Solanke, a writer, titled “Etiti : All eyes on you” highlights the inconsiderate leadership of the elders of the community and the youth’s protest of neglect, unemployment, self-centeredness of the leaders. Derek Smith, principal, Olashore International School said the School decided to stage this big play in various cities across Nigeria namely Osun, Lagos, Ibadan and Abuja as part of our 25th Anniversary celebration. This stems from the fact that Olashore International School is committed to developing Nigerian leaders for the 21st century by delivering high quality all round education offering students the opportunity to excel in academics, sports, and of course the performing arts. According to him, “Our

commitment to academic excellence is demonstrated by children producing excellent results in external examinations. However, academic excellence is only one part of an Olashore education. Developing leaders for the 21st century is a key part of our mission statement and so we will also celebrate students who have excelled in activities that develop 21st century skills. These include debating, public-speaking and the ability to perform in high-pressure situations such as quizzes. “In order to ensure that Olashore graduates are prepared for the 21st century, we have identified a number of core skills that students must develop during their time in secondary school. These include creativity, imagination, collaboration and communication. The performing arts provide an excellent platform to develop these skills”. Similarly the chairman, Board of Governors, Olashore International School, Abimbola Olashore, reiterates “In the school, we believe in all round education, and drama fits into the key pillars. For us, we try to make our drama reflect Nigeria and its culture. Next year in Nigeria, is an election year, where people elect their leaders whom will serve them.

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BUSINESS DAY

Tuesday 11 December 2018

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Technology review; GPS on Tecno phantom 8 smartphone Stories by Jumoke Akiyode Lawanson

t is typical to see reviews about the specifications, amazing features and design of a new, premium smartphone. However, it is very rare to find reviews pinpointing one particular feature of the mobile phone to talk about the pros and cons. We all have specific interests and reasons why we get a particular smartphone. A lot of people seem to be much more interested in the camera feature of the phone; particularly focused on how clear and sharp the pictures/ videos taken on the device look, while music lovers may be more focused on sound quality and motorists may tilt more towards the accuracy of the phone’s maps feature/ GPS. For majority of the people in Nigeria, they are sold on battery life and capacity of the phone memory. A huge percentage of smartphone users are interested in these devices because of easy access to social media platforms. This is not surprising, as statistics from Statcounter.com shows that Nigeria has 82.14 percent of its smartphone users on Facebook between November 2017 and

November 2018. Six percent on twitter, just over four percent on Instagram and almost five percent on Pinterest, not forgetting other growing social platforms such as Snapchat, YouTube, reddit, LinkedIn and the rest. It is safe to say that just like the youth are more interested in social media and photographers are interested in camera features, so are motorists interested in the maps application of their smartphones. During a casual conversation with an Uber driver, which subsequently led to a small scale investigation, it was discovered that among mobile devices refused by both Uber and Taxify drivers, Tecno devices feature prominently. In Nigeria, Uber has over 267, 000 riders who actively utilise the app, and over 7,000 driver-partners. This is a significant amount of drivers faulting Tecno devices for inaccurate Google maps application. Asides obviously having a car in excellent working conditions, Uber and Taxify drivers are required to own a smartphone with its own designated SIM card, that has access to the Internet, email, WhatsApp, and other channels of communication. Tecno devices used to be the preferred choice for drivers,

as they had lower price points, making them more affordable ad equally functional. However, more recently, the drivers begun to blacklist not just Tecno devices but also its sister devices from Infinix, iTel. This development came into play because according to the drivers, the Global Positioning System (GPS) on the devices are not as “sharp” as other smartphones. And, this issue has been an incessant one that leaves them stranded or delays their operations. However, it has been discovered that this issue is not peculiar to just Tecno devices, it is a com-

mon problem with all 1GB android devices, but most users do not have the information. Reason why the devices may give them issues. * 1GB RAM (1 Gigabyte of random access memory) Android phones find it hard handling Google Maps or related map apps that use GPS. GPS on phones is very resource heavy and this accounts for the issue taxi apps are having when they are used on any phone that is 1GB and below with respect to RAM. The higher end Tecno Phantom 8 wouldn’t have this problem as it has 64GB storage with support for memory

card up to 256GB * Phones running older version of Android, even if they are premium devices, do not function very well when apps requiring GPS like maps and taxi apps are used on them.This explains why Uber/Taxify drivers who purchase old model Android phones, Android phones running old Android OS or Android phones with 1 GB RAM and less have issues with map and taxi apps. This case happens with old iPhones as well and this is the reason Uber has removed them from phones that should be used by Uber drivers. The Tecno Phantom 8 has been upgraded to eliminate this problem. It runs on the latest Android 7.0 (Nougat) with HiOS What I noticed using the Google maps on Tecno Phantom 8 On my first attempt to use the google maps for directions from Lekki to Yaba, I was automatically logged out after a few minutes and I wondered why. However, I used the maps to navigate around Lagos a few other times and directions where very accurate. The timing was also accurate and the voice directions were clear. It helped to avoid traffic congested areas, as places with heavy gridlock are highlighted in red and alternative routes were clearly displayed.

Experts discuss the importance of data gathering, analysis for digital transformation

echnology experts and stakeholders gathered at the maiden edition of TechPlus Breakfast Series, which held in Lagos recently, to discuss the important role that generation and analysis of data by organisations and government alike, could play in this era of digital transformation. Participants at the Breakfast Series spoke on the importance of data gathering, analysis and usage to rapidly grow organisations in the 21st Century. Eniola Edun, general manager, Techplus, said leaders need to de-

velop ‘a long-term holistic understanding of technology capabilities’, as the grasp will inform expedient decision-making and inspire newer business models. According to her, “TechPlus is Africa’s largest tech gathering featuring gaming such as e-Sports and exhibitions, which is a convergence of ideas from global thought leaders, providing participants with unrivalled access to the latest and most innovative tech developments of the present and future. “Since inception three years ago, we have hosted over 20,000 delegates from across the world. Our de-

cision to focus on B2B opportunities this year is aimed at deepening the vision and providing more valueadds to businesses of various sizes. Mohammed Mijindadi, managing director, Gas and Power, General Electric, who spoke at the TechPlus Breakfast Series, said that technology would continue to play an important role in organisational growth, as organisations need technology to analyse, monitor and use data very efficiently. “GE for instance, manufactures several equipment that are used to drive very sensitive aspects of industry growth. The important of data

generation and use is key for every organisation and that is one of the things being discussed at the 2018 TechPlus Breakfast Series. The essence is to share industry ideas and see how organisations can further grow their businesses, using the right technology tools and data,” he said. Speaking on the benefits of data to organisations, Aderemi Atanda, executive director, SystemSpecs Limited, said: “The benefits of data are numerous to organisations. It helps to monitor the flow, analyse trends and capitalise on the strength of the organisation.” The impact of technology is no

longer measured by investments in technology, but by the impact of the investments. FinTech players are playing key roles in helping organisations invest little but achieve much through the use of their software solutions that are driving growth in the financial sector,” Atanda said. Many businesses are not taking full advantage of the opportunities that digital transformation brings and that is part of what was discussed at the TechPlus Breakfast Series. So organisations must be proactive to leverage digital transformation and digital capacities, Atanda added.

BUSINESS DAY

Tuesday 11 December 2018

BDTECH

E-mail: jumoke.akiyode@businessdayonline.com

itex expands digital services to include mobile money, customised PoS terminals, others

Stories by JUMOKE AKIYODE-LAWANSON

tex Integrated Services Limited, an innovative fintech company that designs and deploys secure solutions to diverse customers has announced plans to expand its range of services for the PanAfrican market. The company has also unveiled a new brand identity that reflects its growth and transformation. With the Nigerian government’s push for a cashless economy and the payment industry’s shift towards electronic payments, itex has expanded its service offerings from payment channels to include PayVice, TAMS, Internet Payment Gateway, Afrimart and Bespoke Services for its clients. According to Ernest Uduje, the managing director and CEO, itex Integrated Services Ltd, “itex has continued to pioneer the payment landscape in Africa. As the fintech sector continues to grow, itex is well positioned to provide innovative solutions to clients across Africa. The new brand further demonstrates our commitments to transform our sector to offer more digital products and services. During this growth phase, the company will continue to expand its client base and technology partners. Consequently, fintech start-ups will be able to accelerate their business growth by leveraging itex’s robust infrastructure and network.” In partnership with the

L-R: Uche Okafor, country manager, West Africa, Taxify Nigeria; Gbolahan Thomas, head, legal and corporate services, Smile Nigeria; Terver Bendega; brand manager, West Africa, Taxify; Onamari Horsfall; general manager, sales and distribution, Smile Nigeria and Lotanna Anajemba, head, brand and communications, Smile Nigeria, after the signing of a partnership deal between Smile and Taxify to boost Driver- Rider trip experiences with 4G LTE mobile connectivity, which took place in Lagos recently.

Central Bank of Nigeria and the Nigerian Interbank Settlement System (NIBSS), itex says it played a key role in the initial implementation of an interoperability platform for the successful cashless Nigeria rollout; where TAMS platform supported 150,000 POS terminal deployed nationwide. In addition, itex facilitated the multi-card acceptance (Visa, MasterCard, Verve etc) and payment channels across all major financial institutions in Nigeria. Itex has continued to create the Implementation of cutting-edge technology to design secure solutions for diverse customers and has a flexible back-end that enables stakeholders plug in seamlessly.

itex’s brand revamp will also help to reflect the company’s unique approach to delivering flawless payment solutions. The creative mix of deep blue, pale blue and lime green signify stability, freshness, professionalism and nobility, reinforcing the company’s ethos as an innovative Fintech company with secured solutions. Its Terminal Application Management System (TAMS) platform, is a highly robust and multifunctional e-commerce platform with features including EMV cards switching and processing capabilities, as well as digital payment channels with features like QR code payment, reporting and automated fraud prevention systems, to name

a few. TAMS also enables the distribution of value added services like vending electronic airtime, Insurance and other bill payments, with the integration to core banking systems for transaction processing and other third-party platforms payments, it makes payment and value distribution seamless. Itex Internet Payment Gateway is a platform for processing online payments for online retailers, omni channels or traditional brick and mortar stores, while its Afrimart is a platform designed to create new business opportunities for African SMEs and general merchants on the quest for growth and expansion by creating visibility and accessibility to African

buyers and suppliers. Itex Point-of-Sale (POS) software/terminal application software is highly robust, with extreme flexibilities that allows for customized transactions (both traditional and digital) required by merchants or acquirers. itex has an extensive client portfolio spanning 19 African countries, with more than 67,000 POS terminals deployed to merchants, commercial banks, agent network, transnational corporations and governments across Africa while its PayVice is a valueadded service which includes an electronic wallet system that enables funds transfers, utility, transport and logistics bill payments. PayVice also enables QR Code payments.

VoguePay wins award for best practices in digital payment

oguePay, an indigenous digital payment service provider has won the global leading premium online payment solution provider of the year award, 2018 as World Quality Alliance celebrates World Quality Day. The prime financial technology company won the global leading premium online payment solution provider of the year award at the World Quality Day, 2018. The award, under the auspices of the World Quality Alliance and Chartered Institute of Quality, UK,

Smile, Taxify partner to boost trip experiences with 4G LTE mobile connectivity

celebrates organisations that focus on global quality standards. According to the organisers, the global quality excellence awards recognised individuals and brands that have excelled in quality management, and to create awareness on the important contribution that quality makes towards the national economic growth of a country. This is a memorable recognition for a company that combines European banking best practices with local financial frameworks to cement its leadership as

a leading payment gateway that adopts global best practices. While receiving the award, Quam Ojikutu, the co-founder and chief operations officer of VoguePay, used the occasion to reinstate the company’s commitment to quality and excellence. He noted that the award came on the heels of several other industry recognitions for VoguePay, the latest being the “most innovative online payment platform of the year, 2018.” at Finance, Mobile and Entertainment Summit

(FMES) 2018 organised by TechTV communication. In 2014, VoguePay became one of the first payment aggregators in Nigeria to comply with International Financial Reporting Standards (IFRS) and other financial best practices, including the recent GDPR data protection framework. Geoffrey Weli-Wosu, cofounder and chief legal officer noted that VoguePay has recorded notable feats in compliance and advocacy. It recently announced its partnership with INTERPOL and also volun-

teered to be part of the Central Bank of Nigeria’s fraud committee among several other advocacy initiatives. The central bank of Bahrain recently approved VoguePay to participate in its highly regulated program designed for global fintech and banking-focused institutions upon satisfactory assessment. With this approval VoguePay will commence operations in Bahrain in addition to its network of offices in Nigeria, United Kingdom and Estonia.

mile Communications Nigeria has announced a strategic partnership with Taxify to improve internet connectivity on trips and help drivers reduce operating costs. The partnership, available to all registered drivers across Nigeria offers them the opportunity to own a Smile device bundled with a bespoke data plan at an affordable rate. The service will also include free in-car broadband internet access to improve rider’s experiences on the go. “This partnership is very exciting for both organisations. It combines the innovative services that empower Smile customers stay in touch with loved ones and achieve more, with Taxify’s reliable and safe rides necessary for passengers to commute” says Onamari Horsfall, GM, sales & distribution of Smile Nigeria. According to Uche Okafor, country manager, Taxify Nigeria; “This strategic partnership with Smile is consistent with our mission to be the best way to move within the country. Better internet access equals a more reliable and rewarding service both on the driver end and the rider end, and this partnership will be instrumental to help guarantee an overall better experience for everyone within the Taxify ecosystem.” Acclaimed as the pioneer of 4G LTE technology in West Africa, Smile Nigeria has consistently provided value adding products and services. The company says that this partnership aligns with its global vision to be the telecommunications service provider of choice in its market while simultaneously enabling its customers to achieve more. Its partner in this venture Taxify is a popular European ridehailing platform, connecting millions of passengers and drivers around the world to make travel easier, quicker and more reliable. Taxify’s efficient and tech-enabled business model benefits both drivers who have to pay a smaller commission as well as passengers who end up paying less for their ride. Founded by Markus Villig, Taxify launched in 2013. It’s one of the fastest-growing ride-hailing platform in Europe and Africa with investors including Daimler, Didi Chuxing and Korelya Capital. Taxify has more than 15 million users in over 25 countries and 60 cities globally.

BUSINESS DAY

Tuesday 11 December 2018

BDTECH

E-mail: jumoke.akiyode@businessday.com

Study reveals Eutelsat as satellite market leader across Nigeria, Cameroon, Ivory Coast

n in-depth study, led by Nielsen, of television reception throughout Nigeria, Cameroon and Ivory Coast, has positioned Eutelsat as satellite market leader within these countries. The faceto-face interviews were conducted with 3,000 households in Nigeria, 2,000 in Cameroun and 2,000 in Ivory Coast, representative of the population of the geographical area surveyed. Satellite television is high in the rankings Satellite television reception is the dominant technology in Ivory Coast reaching 68% of TV households (1.5 million households) and is also a major technology in Nigeria reaching 41% (10.3 million households) and in Cameroon with 38% households (1.3 million households). “Eutelsat is pleased to have established a strong presence in the regional audiovisual landscape, providing millions of households with access to a wide range of local and international channels. This study confirms that Eutelsat’s 16° East position is the leading position for free-to-air broadcasting in Cameroon and Ivory Coast and that Eutelsat’s three positions, 36° East,

7° East and 16° East, serve the largest combined audience in the Nigerian market. It is a testament to our long-standing partnership with many of Africa’s leading TV channels and bouquets. We look forward to strengthening these partnerships to develop our services as these dynamic markets continue to evolve,” said Nicolas Baravalle, Vice President for Sub-Saharan Africa at Eutelsat. Eutelsat’s 16°East neighbourhood in pole position across Cameroon and Ivory Coast The study also revealed that Eutelsat’s 16° East neighborhood is the leading FTA position in Cameroon and Ivory Coast with a combined reach of 1.2M households in those 2 countries. In Cameroon, 16° East is the leading position and reaches a total of 940,000 households representing 73% of the DTH installed base. In Ivory Coast, it has the largest FTA installed base, reaching 240,000 households (37% of the DTH installed base). 16°East position caters for a wide variety of tastes with over 160 channels, among which are highly sought after local channels such as CRTV, Canal 2 International, Trace Africa, Novelas TV, RT1 and RT2 as well as popular

international channels in French and English. A winning combination across Nigeria Eutelsat has the highest combined reach across the Nigerian market between its 3 positions, 36° East, 7° East and 16° East. Over 5M households in Ni-

geria (one out of two DTH households) point towards a Eutelsat position. Eutelsat’s 36° East neighbourhood is Nigeria’s leading Pay-TV position, reaching 1.3M households. It hosts DSTV, the leading satellite Pay-TV platform in the region and

groups together around 400 channels including 43 channels in HD accessible throughout region and includes top most watched channels in Nigeria such as AIT International, CNN International, Silverbird TV and Zee World. Eutelsat’s 16° East

neighbourhood is a leading free-to-air position reaching a total of 2.2M households and offers a diverse line-up of popular Nigerian channels such as CRTV, Channel TV and Silverbird TV, local content specifically popular to the Hausa community; My TV Hausa and Alwilayah TV Hausa, as well as international channels such as Aljazeera, France 24. Eutelsat’s 7°East neighbourhood has a reach of 1.4M households in Nigeria, mainly catering to English-speaking locals, with Channel TV, TVC News Nigeria and international content such as CNN, Fox, BBC World news, Bloomberg TV Africa, CNBC Africa and Al Jazeera. High definition in high demand According to study findings, the need for HD is rising in Sub-Saharan Africa with a growing demand for HD content specifically in Pay-TV. This is coupled with a rise in the affordability of equipment such as televisions and set-top-boxes. The number of HDTV equipped households is already sizeable: in Nigeria 9.5 million (38%) households were identified to be HDTV compatible homes, 0.9 million (18%) in Cameroon and 0.5 million (22%) in Ivory Coast.

Sophos updates cyber security solution to defend organsations against threats Jumoke AkiyodeLawanson

ophos, a global leader in network and endpoint security, has launched the latest addition to its endpoint solution portfolio, Intercept X with end point detection and response (EDR). Powered by Sophos’ deep learning neural network, which is trained on hundreds of millions of samples to look for suspicious attributes of malicious code to detect never-before-seen threats, Intercept X with EDR provides organisations with

broad, expert analysis of potential attacks by comparing the DNA of suspicious files against the malware samples already categorised in SophosLabs to enable them to identify and respond to suspicious threats more quickly. Until now, effective investigation and incident response has only been achievable in organisations with a dedicated Security Operations Center (SOC) or specialised IT security team trained to hunt and analyze cyber attacks. With Intercept X Advanced with EDR, businesses of all sizes and those with limited resources can add threat tracking and

SOC-like capabilities to their security defenses, reducing the time criminal hackers can hide in their network. With a single click, IT managers have on-demand access to curated intelligence fromSophoLabs, guided investigations into suspicious events, and recommended next steps. To maintain full visibility into the threat landscape, SophosLabs tracks, deconstructs and analyzes 400,000 unique and previously unseen malware attacks each day in a constant search for attack novelty and cybercriminal innovation. “By providing access to

SophosLabs data, IT managers of all skill levels have first-responder forensics at their fingertips to best determine if and what types of attacks are happening. IT managers are regularly faced with questions whether or not there is an attack, where the attack is coming from and how to respond. But without a SOC or trained security experts who know how to analyze potential threats, interrupting a cyberattack in real-time is very difficult,” said Dan Schiappa,senior vice president and general manager of products at Sophos. “The sheer volume of malware, frequency of at-

tacks and wide availability of toolkits on the dark web has made EDR capabilities necessary to every business - especially those with limited IT security resources,” Schiappa said. Once cybercriminals get a foot hold, they usemultiple attack methods to escalate privileges and advance step-by-step. With Intercept X Advanced with EDR, IT managers can see if an attacker is moving laterally, and leverage the anti-ransomware and anti-exploit capabilities in Intercept X. “EDR initially evolved as an enterprise discipline, typically requiring a team of skilled security analysts

to use it to best advantage. Organisations looking to add EDR need to consider how they are going to integrate the technology into their overall security strategy, so triaging and remediating potential incidents is easier and more effective,” said Scott Crawford, information security research director, 451 Research. Sophos Intercept X with EDR is integrated withSophos Central, a cloudbased unified console for managing Sophos’ portfolio of products, allowing end users and Managed Security Partners to make decisions based on EDR intelligence from a single pane of glass.

BUSINESS DAY

Tuesday 11 December 2018

What Buhari’s return in 2019 will mean to real estate sector in Nigeria Stories by CHUKA UROKO

fter almost four years of dismal performance as reflected in sharp drop in productive capacity, reduced consumer purchasing power and poor standard of living for citizens, Nigerians are edgy and apprehensive of a possible return of Muhammadu Buhari-led government in the aftermath of the 2019 general elections. Experts are asking questions as to what another four-year term under Buhari would mean for the economy and its various sectors, including real estate, considering that the current business environment, which is not enabling, will persist. “Buhari’s government is anti-business which is why the business community does not want him back”, the experts note, arguing that if Buhari wins the 2019 elections, more young professionals and businesses will leave the country in search of friendlier business environments. Many companies and industrial concerns have left the country in the last three years for what the experts describe as “government’s anti-business stance” that does not support growth in both the services and productive sectors of the economy. Besides the locals who are leaving the country, relocating their children and putting them in schools abroad, many expatriates, especially those working in oil and gas, telecoms and other service companies are either returning to their home countries or relocating to other African countries. The fear is that these developments might increase in tempo if the status quo persists into 2019 and, for real estate, this has grave implications for the sector which is, at the moment, struggling. “The implication of these developments for the property market is that the high vacancy situation in the market will become worse; more buildings will be

empty and that will affect their market value”, Roland Igbinoba, President/ CEO, Pison Housing Company, affirmed in a telephone interview. The real estate sector in Nigeria has been in negative growth territory for quite a while. Indeed, the sector has been in recession in the last 10 consecutive quarters, long after the wider economy exited recession in the second quarter of 2017. By the last count, it was estimated that over 300,000 square metres commercial and 200,000 square metres residential real estate space are unoccupied and, according to Broll Property Services’ recent (Q3,2018) Viewpoint on the office market, about 40,000 square metres office space will be coming into the market in the next six to 12 months. Igbinoba stressed that there would be increased vacancy rate in the Grade A office market and his reason was that the expatriates who were leaving the country coupled with those who may live in the aftermath of the general elections are the ones that rent such office space. “The upper residential market will

suffer the same fate because it is only the corporates and expatriates that rent houses in that segment of the market”, he said, adding that even retail market would continue to struggle because of the drop in consumer purchasing power which is affecting that space. However, what is happening or is going to happen, according to Igbinoba, is beyond election or Buhari as president. “What we are looking at here is political risk, but it goes beyond that. Macroeconomic factors also play a major role and so focus should be more on them”, he posited. MKO Balogun, CEO, global Property and Facilities International Limited, affirms, arguing that if people and companies are leaving Nigeria, it is not because of Buhari as president or the likelihood of his return to power after 2019 elections. “People are leaving the country because of our economy which is a renteconomy; the economy is not standing on a sustainable model, so people come from outside, make what they can make and move on. That is what is happening. The economy has a weak super

structure”, he emphasised. Continuing, he said, “let’s not lose sight of one thing. Some of the companies that are leaving the country are running away from the anti-graft stance of the Buhari government which is making Nigeria uncomfortable for them. Take, for instance, The First Group which has relocated to Ghana”. The First Group is a Dubai-based British real estate development firm that helped a good number of Nigerians to buy and own property in choice locations in Dubai. The company had to close its Abuja and Lagos offices after it was fingered in the controversy surrounding some properties in Dubai allegedly owned by Tukur Turatai, the Chief of Army Staff. In addition to Baolgun’s suggestion on the need for an all inclusive government that will fix the economy, Igbinoba is of the opinion that there should be more focused attention on the real estate sector like what is done in Agriculture. “Let there be an intervention fund for the sector; recapitalize the Federal Mortgage Bank of Nigeria (FMBN), and build infrastructure”, he advised.

Why building with porcelain brand of tiles is better than ceramic

xcept for the highly professional, well informed and deeply experienced builders, a good number of people building for either residential or commercial purposes do not know the advantages of using porcelain brand of tiles over the ceramic types. Knowledge sharing on the differences between these same-butdifferent finishing products doesn’t come handy because manufacturers and their collaborators, mostly for ulterior motives, keep such knowledge to themselves in order to make all they can from ignorant and unsuspecting

Expectations as Kuramo Beach Residence inches closer to housing market

end-users. There are, however, commonalities in the body materials and manufacturing process of ceramic and porcelain tiles, which is why some local producers are producing ceramic white body tiles and mislabeling same on their packaging and passing them off as porcelain. But real porcelain tiles are distinctive. Generally, they are more expensive to manufacture than ceramic tiles and are, therefore, priced much higher. In terms of features, porcelain tiles are harder than ceramic and are, there-

L-R: Hossam Maher, GM, CDK; Bernard Longe, MD/CEO, CDK, and Mansur Ahmadu, president, Association of Consulting Architects Nigeria (ACAN) at the ACAN pre-AGM dinner hosted by CDK in Lagos recently

fore, more suitable for external use and high traffic areas such as schools, hotels, offices, etc. They are more resistant to cracks or failure when not installed over solid concrete floor such as wooden tongue and groove floor. A major distinguishing feature or quality is that porcelain tiles have very low moisture absorption of not more than 0.5 percent, making them more resistant to extremes of weather. Whilst all tiles can be used for walls, porcelain tiles are made for floors. It is, however, more suitable for bathroom and kitchen walls and externally for wall cladding because of their low moisture absorption attributes. These were part of the insights offered on the product by Bernard Longe, MD/CEO of CDK Integrated Industries Limited at a pre-AGM Dinner held by Association of Consulting Architects Nigeria (ACAN) and hosted by the company in Lagos last week. CDK are the producers of porcelain tiles and ceramic sanitary ware in Nigeria. The pre-AGM event presented an opportunity for them to offer insights on the production and quality control processes that account for the quality of their ‘proudly made in Nigeria’

porcelain tiles and sanitary wares. It was also an opportunity for ACAN members to interact with the CDK management. “Our specific objective from inception is to differentiate ourselves from competition by producing porcelain tiles and sanitary ware of export quality; today, we are satisfied that this objective has been achieved”, Longe enthused, pointing out that porcelain tiles could also be used for other walls depending on preference. In the case of sanitary ware, which in the absence of any meaningful sustained local production had always been import dependent, the well known and authentic European brands of old have been largely driven out of the Nigerian market by virtually indistinguishable cheap inferior imitations imported from East Asia. This is why it is advisable to buy CDK branded sanitary ware as there is no doubt whatsoever about the quality of the products. The company’s tile and sanitary ware manufacturing processes are fully automated, using state of the art machinery complemented by very highly experienced and committed production team.

xpectations are high in the Lagos housing market as Kuramo Beach Residence inches closer to the market to take away at least 140 out of an estimated 3million residents of the sprawling city who are there looking for homes to buy. A high end luxury development sitting on 40,000 square metres of land along Adetokunbo Ademola Street, Victoria Island, Kuramo Beach Residence is getting set for completion and the developers, ITB Nigeria Limited, a subsidiary of the Chagoury Group, says the twin-tower residential facilities will be delivering 140 apartments of different configurations. Besides the 140 residential apartments, there are also a clubhouse, two podium-parking levels as well as recreational sports facilities, all to be delivered to world class quality in line with ITB’s innovative engineering and construction standards. As an innovative construction company providing full and advanced integrated engineering and construction solutions to both private and public sectors, ITB was established in 1995 to address the growing demand for innovation and improved engineering expertise in Nigeria and has, ever since then, continued to raise the bar on Africabased training and development of civil engineering. The company is a leader in integrated engineering and construction solutions. Recognizing the huge role technology can play in the growth of Nigerian construction industry, the firm recently called for the digitization of the construction industry and continues to find ways to positively contribute to the construction industry, through its innovations, engineering expertise, use of technology and quality standards. Contract for the construction of Kuramo Beach Residence was awarded to the company in March 2016 and it is set to complete it according to its 36 months plan. The contemporary residential facility promises a new development with larger unit numbers and state of the art amenities that cater for millennials and individuals with a taste for luxury. The building is constructed with carefully chosen materials and strict adherence to quality and safety standards. “Kuramo Beach project will help to bridge the gap in the housing ecosystem by providing more residential options for citizens and thus reducing the housing deficit in Lagos”, Ramzi Chidiac, the company’s managing director, said. “We have committed a lot of time, resources, expertise, digitalized equipment and utmost competence to ensure the successful completion of this project and we cannot wait to unveil this masterpiece”, Chidiac add. He sees the project as one of the best high-rise residential buildings in Lagos State, hoping that not only will this futuristic building provide utmost comfort for its owners, it will also successfully answer the demand for more accommodation for Lagos amid its growing population.

Tuesday 11 December 2018

C002D5556

BUSINESS DAY

Time to buy as politicians, investors off-load properties to raise cash

...up-market residential property prices down considerably STELLA ENENCHE, Abuja

or home buyers and patient investors with long term view of the market, time is now to move cash to the property market as BusinessDay investigation reveals that the market has, in recent time, received huge supply from sellers, mostly politicians, in need of cash to run for elections in 2019 and other things. Our findings in the Abuja market show that, in a desperate bid to fund political campaigns and other activities leading to the elections, politicians have begun to offer houses, plots of land, etc at giveaway prices. In some instances, the reduction in prices of some of these properties is as high as 30 percent. Apart from the urgent need by political actors to fund their elections, it was also discovered that the uncertainty that hangs in the air, in the build-up to the elections, are also contributing to what now looks like an auction-drive in the market as some investors are also off-loading to raise cash. “There is, indeed, a sharp drop in property prices”, Ugochukwu Chime, president of Real Estate Developers Association of Nigeria (REDAN), confirmed to BusinessDay. He explained that the development was also caused by the rising quest to invest in more mobile investment outlets in order to have liquidity access, more so with the economic downturn. “A lot of people are off-loading their properties to enable them to

finance the elections, or for other reasons. Concerning the election, you never know what anybody wants to do until he wins election. In the past, we had promises that never got actualized, “ he added. Chime explained that those who have preference for mobile investments do so because they see that the economy is looking South and this is one of the challenges in the economy. He noted that a lot of people were abandoning property market for other more mobile investment outlets. “That is what is to be seen going forward and when that occurs, it becomes a bias market and because we have a lot of products in the market looking for buyers, the buyers have a lot of choice to make and can therefore determine some of the things including prices and that is how it is going to be for some times till after elections”, he said. The air of uncertainty in the polity is another factor adding to the slowdown in the market. People are afraid, especially because of comments by some of the political actors, giving the impression that there is going to be a problem. Chime reasoned that this also makes people withhold their investment till they are sure that there is a little bit of stability in the socio-political environment . It is only then that people can decide to invest. Right now, some people are thinking of investing in Ghana, Dubai and other parts of the world. “These investors may go into agriculture or some other service industry which have higher return on investment and which can allow

them to move away with their cash as an escape from the challenges in the economy, “ he said. As a result of these developments, the market has seen significant drop in property prices. Alomaga Olajide, an estate surveyor and valuer, affirms, citing instance of a duplex valued at N250 million now offered for between N200 million and N150 million. “As we speak, we have a huge supply of properties in the market and whenever it comes this way, because of the need for cash, it comes cheaper. Ordinarily , you can’t see a duplex valued at N250

million now going for N150million or N200million. This is simply because the seller has need for cash to do something tangible “If he or she does not bring it down like that, nobody will be ready to pay. So this is just to attract buyers so as to get the cash needed for other things. Property market during election period is cheap and there is always a huge supply of property”, Olajide revealed. According to him, politicians are all out to get cash to fund their campaign to be able to promote their political ambition and career. So, majority of them, because there is no cash anywhere else, have to

Casafina Capital out with financing solution for home buyers, investors CHUKA UROKO

s part of efforts to ease the challenges of financing housing projects in Nigeria, Casafina Capital Limited, an emerging real estate company, has launched a new residential and investment platform that allows subscribers to invest and co-own residential property in prime areas of Lagos, Abuja and other major cities in Nigeria. The online platform known as www.onesqm.ng enables members to earn guaranteed rental of up to 25 percent per annum with an investment capital that is as low as N250, 000. Driven by a desire to improve housing provision in Nigeria, Casafina Capital has also rolled out a rent-to-own house acquisition scheme, where investors are expected to move into their own houses after payment of two years rent and legal fee that equal a oneyear rent. The rent-to-own scheme, which targets middle class income earners, also allows the subscribers to continue to pay rent for about 18 to 20 years until the house becomes theirs.

“This new product allows people to invest in a set of real estate products and own a fraction of one asset of choice”, Oluwaseyi Olufemi, chief executive officer of Casafina Capital, explained to newsmen in Lagos last week. “This journey marks the beginning of a revolution in real estate financing in Nigeria. Investors can earn from one square meter through rental; commission from referring friends and families to create an account as well as earning extra value through co-ownership model,” Olufemi added. According to him, interested persons are expected to provide an account detail at the point of registration where the rentals will be remitted automatically at the indicated timeline. Olufemi, who acknowledged that such investment comes with risk that relates to documentation for the land asset used for the project and failure to meet up with the estimated timeline for the construction, said that the company only uses landed asset that has been verified and confirmed to have the requisite documents.

“We ensure that all our contractors and subcontractors are licensed professionals and can take a performance guarantee. In terms of fund, all funds on the platform are held by third party trustee known as Union Trustee. This means that, whether we exist or not, the asset on the Onesqm scheme is held securely and will continue to yield the required return or interest,” he assured. He listed Casafina’s active project locations which people can invest in to include 10 units of 5-bed room duplex in Opebi and 80-units of 4-bed room apartments in Ikate-Lekki Phase 1. “Once you invest in a project, you get an interest in the

nominated account instantly without needing to apply for it and you can as well terminate the investment by going to your dashboard to click on liquidate button,” he added. O n t h e r e n t- t o - o w n scheme, Olufemi said that the scheme allows investors to upgrade their accounts to a bigger one in the same location without losing the already existing equity and an investor can transfer his or her equity to another person. “The scheme does not encourage multiple payments as people will continue to pay the same amount until the ownership of the house is transferred to the subscriber and there is no hidden charges attached,” he assured.

work very hard. He noted that many politicians have invested in the past and they have quite a number of properties here and there and often time we experience a very huge supply of property in the market and high number of people are ready to sell their property to raise cash to pursue other things. “Whoever wants to invest or has the mind to invest in real estate should do it now because you will get property at a cheaper rate . Once the demand is low and supply is huge, price will definitely fall. That is what we are experiencing at the moment, “ Olajide observed.

New rent initiative in market to assist prospective home owners CHUKA UROKO

n spite of the lull in the property market, innovative solutions keep coming into that space with the aim of enabling investors, prospective tenants and home seekers to invest, rent or buy homes with ease. One of such solutions that has just entered the market is a flexible rent initiative for low and average income earners which will enable them to choose a convenient way of paying their house rent. “This is a departure from the annually or two-yearly rent payments demanded by landlords as it allows for monthly, quarterly and bi-annual rent payment”, explained Tunde Balogun, managing director of RentSmallSmall—promoters of the new initiative. Balogun, who spoke to journalists in Lagos recently, disclosed that the company was in partnership with Axa mansard, Nedcome OAKS, Estate Links, Furnisure, Northcourt Real Estate and Rydal Mews to create easy access to insurance, furniture and appliance rentals. Lagos as a commercial city

has a heavy housing deficit burden which is weighing on the residents. As a result, many mid-low income earners looking for homes are faced with problems of finding affordable houses within their budget. Many property owners demand rents of one to two years upfront and agents demand additional fees and payments. Placing this side by side with available statistics which shows that eight million people are involved in urbanization per year; there is a vacancy rate in Central Business District (CBD) areas of 72 percent and 130 million Nigerians living in rented houses, it is readily seen that there are challenges. Balogun is therefore urging prospective home seekers and property owners interested in the new initiative to visit the company’s website for further details, assuring that the platform will allow property owners to give info about their property. “We are here to help home seekers reduce amount of time spent searching for perfect property, find property that are closer to their workplace and with flexible duration and payments,” he assured further.

BUSINESS DAY

Tuesday 11 December 2018

UPDC Real Estate Investment Fund leads sector fund performance in 2018 ...as Funds’ total NAV up 55% Stories By ENDURANCE OKA-

usinessDay year-todate analysis of the performance of the three equity funds in Nigeria’s real estate sector from December 29, 2017 to November 2, 2018 shows UAC Property Development Company (UPDC) Real Estate Investment Fund topped the table. The fund which is managed by FSDH Asset Management Limited was up 1.66 percent in the review period, from N11.84 in December last year to N12.04 in November 2018, figures from the Securities and Exchange Commission (SEC) shows. Johnson Chukwu, MD of Cowry Assets Limited, said ordinarily, any good fund manager should perform well, because a portfolio investor has to first identify the instrument that qualifies for investment in their portfolio, and those should be the only instruments that have very good fundamentals. “The selectiveness of investors in picking instruments into their portfolio is such that any good portfolio or fund manager should ordinarily outperform the market index, because their choices will largely be on the good performers,” Chukwu told BusinessDay. Skye Shelter Fund and Union Homes REITS, both managed by SFS Capital Nigeria Limited, however reported negative return in their unit price in the same period under review.

Union Homes and Skye Shelter Fund had a decrease by 5 percent and 0.04 percent in their unite price respectively. The unit price of Skye Shelter Fund was down in the review period from N100 it reported on December 29, 2017 to N95 at the week ended November 5 2018 while Union Homes declined marginally in its unit price from N45.22 billion to N45.20 billion. A further analysis of the fund revealed that both Union Homes REITS and UPDC Real Estate Investment Fund increased in their Net Asset Value (NAV).

The NAV of the former increased by 0.95 percent, from N12.69 billion to N12.81 billion in the review period while the latter, with 67.94 percent share of the total Real Estate Fund of N47.27 billion, grew its NAV from N31.59 billion in December last year to N32.11 billion in November this year. Skye Shelter Fund on the other hand, reported a reduction in its Net Asset Value by 1.26 percent from N2.37 billion to N2.34 billion in the period under review. A mutual fund is an invest-

ment vehicle that is made up of a pool of funds collected from many investors for the purpose of investing in securities such as stocks, bonds, money market instruments and similar assets. Mutual funds are operated by money managers who invest in the fund’s capital and attempt to produce capital gains and income for the fund’s investors. The Real Estate Fund with total asset under management of N47.27 billion has 7.26 percent share of the total asset listed on the security exchange

which stood at N650.6 billion. This is lower than the 11.14 percent share the fund reported from the total of N418,83 billion in November last year, as compiled from the figures available on SEC website. Meanwhile, the total NAV reported for Ethical Funds, Mixed Funds, Fixed Income Funds, Equity Based Funds, Real Estate Funds, Money Market Funds, and Bond Funds in November this year at N650.6 billion is 55.3 percent higher than the 418.83 billion reported in the week ended December 29, 2017.

Lender-apathy persists as banks credit to real estate drops 5% in Q3

igeria’s real estate industry is among the least attractive sectors to the country’s commercial banks as it got one of the smallest portions of loan in the 3rd quarter of 2018. The figures compiled from National Bureau of Statistics (NBS) last week, shows that Nigeria’s real estate sector was only able to attract N710.2 billion in the third quarter of 2018 as against the N744.56 billion and N784.2 billion it got in Q2 and Q1 in 2018 respectively. Responding to the report, Olurogba Orimalade, the current Chairman of the Nigerian Institution of Estate Surveyors and Valuers (NIESV), Lagos State Branch, said a lot of banks got into trouble months back because of their heavy funding of real estate projects. “For the banks, before it was more of let’s take a bit of risk by investing in the real estate sector but now it is about let’s not even take any risk at all,” Orimalade told BusinessDay. A breakdown of the NBS report in the period under review showed that mining & quarrying and education also made the list of sectors that were least attractive to commercial banks in Q3.

Mining & quarrying received credit of N6.2 billion and education sector got N6.5 billion, as against N10.17 billion and N71.8 billion reported for the mining & quarrying and education sectors in Q2 respectively. Rafiq Raji, the chief economist at Macroafricaintel Investment, said the sectors “are not good credit for banks at the moment.” On the other hand, Oil & Gas and Manufacturing sectors got credit allocation of N3.59 trillion and N2.15 trillion to record the highest credit allocation in the period under review. Analysis of the bank credit to the real estate sector revealed that commercial lenders’ borrowing to the property industry has a record high of N798.3 billion reported in Q3 2017, as compiled by BusinessDay since it started tracking bank lending data in Q1 2015. Orimalade said a lot of the real estate assets banks invested in are now under the custody of Asset Management Corporation of Nigeria (AMCON), because there was default by the clients. “The truth of the matter is, why would banks even want to lend to

the real estate sector when there is Treasury Bills that can generate as much interest as they want,” Orimalade queried. Meanwhile, a previous survey by BusinessDay showed that the property and construction market in Nigeria seemed to depend heavily on commercial bank’s lending to fund its operations, as the decline in lending to these sectors affected their performance in 2017. According to the survey, total bank lending to Construction and real estate sector declined by 11 percent from 4.81 trillion in 2015 to 4.2 trillion in 2017. “As a result of the recession in Nigeria from 2016, lending to most sectors declined. Also, banks saw other sectors viable enough to give credit because they were more certain to get their return from those sectors in order to prevent bad debt which is not good for their books,” an analyst noted on condition of anonymity. The most recent Q2 report by the state stats reveals that Nigeria’s real estate sector reported Gross Domestic Product (GDP) growth of -3.88 percent in the second quarter of 2018 com-

pared to the -9.40 percent rate recorded in the previous quarter, in what is the 10th consecutive contraction since the last quarter of 2016. Although the Q2 figures reported for the industry in the review period is 5.52 percent points better than the contraction reported for the sector in the first quarter. Ayo Akinwunmi, Head of Research at FSDH Merchant Bank, says “the Q2 figures that seemed like an improvement in the sector is not actually good for the country in real term.” Bank lending to construction and real estate sectors in Nigeria have remained dismal when compared to South Africa’s, the continent’s mostindustrialised economy. With a population of about 55 million, mortgages in South Africa account for almost 30 percent of total credit, the largest component of banks’ assets, which amounted to about 5.14 trillion rands ($382 billion) at the end of January, according to central bank data. “Spreads between bank rates and MPR on approved new loan applications for all business sizes narrowed

in Q3 2018, but are expected to widen for all business sizes in Q4 2018,” the NBS report said. Nigeria Monetary Policy Committee (MPC) decided to leave its key interest rate at 14 percent to fight inflation and has kept rate unchanged since 2016. Eleven members of the MPC voted to retain the interest in its last meeting in November 2018. Speaking on the way forward, Orimalade said until Nigerian government, through the central bank, starts to set out loans like it’s doing to the agricultural sector, there will not be progress in the country’s property industry. “Until the government takes real estate and housing in particular, as a critical element that can stimulate the economy, we will remain the way we are,” he stated. “I do not see bank lending to the sector improving; I actually see it getting worse. Considering that we are getting to an election cycle which may or may not lead to the change of government, a lot of these banks are playing very safe,” he noted.

Tuesday 11 December 2018

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BUSINESS DAY

Energy Report Oil & Gas

Power

Renewables

Environment

Gas to power value chain not viable ....electricity consumers may not enjoy stable power supply OLUSOLA BELLO

lectricity consumers in the country may have to wait longer than expected before they are able to enjoy stable and steady power supply, as current gas-to-power value chain is neither viable nor sustainable according the Nigerian Gas Association. The association in a communiqué issued after its 11th international conference and exhibition in which a lot of issues concerning the gas sector were raised said the nation is facing an energy crisis and therefore called on the federal government to declare a power sector emergency in order to develop a holistic intervention plan to rescue the gas-to-power sector from collapse. It also urged the government to put in place plans for the immediate liquidation of the over one trillion naira debts within the gasto-power value chain and assurances for payment of generation and gas invoices from 1st January 2019. “The illiquidity crisis in the power sector is exacerbated by added market imperfections which do· not provide for adequate incentivisation of the entire

value chain, including: a non-market reflective pricing framework; ineffectual securitization and guarantees; infrastructure deficits; inadequate tariff; and the current situation in the foreign exchange market which creates significant exposures, losses and value erosion for investors” The association asked the government to urgently review the progress of the incomplete Nigerian Electricity Sector reform and take necessary steps to conclude the process and solve the pending issues. Emphasis was placed on decentralisation of the national grid and making way

for catchment power generation across the nation if the power sector was to meet the needs of Nigerians Pricing and payment assurance are strong determinants for private-sector operators and investors in gas projects, particularly for gas supply to power. The power sector represents the largest gas off-takers in the domestic market and because of this it is advocating that appropriate legislation and regulations should be put in place to set market-reflective tariffs that assure operators can recoup their investments. “The conference notes the drive to attain parity of domestic gas price to export

Nigeria should invest $3 trillion on infrastructure over 20 years OLUSOLA BELLO

he present infrastructural deficit in the oil and gas, power and other sectors of the economy will continue to adversely impact on its economic growth.To remedy this situation and be on sound economic footing she needs to invest over three trillion dollars in infrastructure across boards over the next 20 years. This was the view of Emeka Okwuosa, the Chairman, Oilserv Group, who spoke on “Infrastructural Development: A Key to Economic Growth and Development in Nigeria” at the 48th convocation of the University of Nigeria, Nsukka. He said the investment would also help to optimise the collective contributions from operators in various sec-

tors and for positive impacts in various sectors of the economy. According to him, the World Bank ranks Nigeria lowly as viable destination for doing business pointing to the poor state of its infrastructure. Nigeria needs to invest over US$3 trillion in infrastructure over the next 20 years,” he said. Okuwosa asked: Where can we source for this funding? It is evident that government alone cannot provide these resources. The Oilserv boss said that Federal Government must without delay, leverage the private sector capital in a variety of ways such as creating special purpose vehicles for financing creations and drive. He urged the government to also develop public-private partnerships, and investment funds with a variety of guaranty plans and arrangements. He said that government key

enin Electricity Distribution Company Plc is partnering Ekiti State Government (EKSG) on an arrangement for a more improved power supply to enable it power its streetlights for about 10hours a day as against the present situation where streetlights were powered for about three hours daily. The company in addition to this arrangement assured the state government that power would be restored to the tourism corridor of the state by the middle of December. Communities in the tourism hub which have been out of supply included: IkogosiEkiti, host of the Ikogosi Warm Spring Resort, IpoleIloro, base of Ariata Waterfalls and Erinijiyan Ekiti. This development came to be recently after a meeting between Benin Disco management team led by Funke Osibodu, the managing director/CEO and Ekiti State Governor, Kayode Fayemi in Ekiti. The CEO had earlier hinted that there was an on-going rehabilitation of Ikogosi/ Erinijiyan/Ipole Iloro on Aramoko 33kv feeder, adding that communities in these areas should have more stable power by next month and that 15 other communities were being considered for connection before end of December. She explained that in con-

necting some state public utilities directly, Maximum Demand (MD) prepaid meters would be connected to reduce complaints between the company and the state government. On the issue of total supply available to the state, she said this could be improved upon from the present level. As regards metering, Osibodu said the Meter Asset Power (MAP) is aimed at closing metering gap in the nation’s power sector, adding that her company has keyed into the scheme and would be ready for the implementation before the end of first quarter of 2019. Responding, Governor Fayemi who expressed optimism about the improved power supply in the state apart from the three communities said, “based on this meeting it is clear there will be improvement in power supply and relations in the state and this will translate to improved economy”. The meeting was called to work out an arrangement for improved power supply across the state, including how Benin Disco can connect communities that are out in the shortest time, how the state’s public utilities such as hospitals, schools, government and Water Corporation can be directly connected. The meeting also was also called to discuss how the total supply available to Ekiti state can be improved upon from the present state.

Energia, Oando JV deliver projects to host communities in Delta State ...plans to upgrade Kwale General Hospital to a first grade referral hospital

role could be to create and sustain an enabling environment by deploying instruments like the Nigeria Sovereign Investment Authority with its arm. Okwuosa suggested that the National Sovereign Wealth Fund should act as a catalyst for the provision of funding needed for development. The government and the private sector must, as a matter of urgency respond to these deficiencies in the economy by accelerating infrastructure development. “By this, I specifically refer to power, roads, rail, ports and telecommunication (especially broadband technologies). “Also equally important and in alignment, is the development and implementation of the legal and regulatory frameworks and environment and all other related processes that will enhance the ease of doing business in Nigeria.

Olusola Bello, Team lead, Analysts: Isaac Anyaogu, Stephen Onyekwelu, Graphics: Joel Samson.

to encourage entrepreneur investments in the Gas sector. However, consideration must be given to the fact that the gas supplied to Nigeria Liquefied Natural Gas (NLNG), based on export pricing, is unprocessed gas, whereas the requirement for domestic gas supply is for processed gas which requires significant additional capital investment”. The challenge of a shallow domestic financial market it stated is working against the local financing of the sector through high interest rates and shorter-tenured credit facilities and a mismatch of investment currency in US Dollars and income in Naira.

Benin Disco partners Ekiti for power restoration to communities, supply to streetlights

n its bid to maintain a harmonious relationship with host communities, Oando Energy Resources, (a subsidiary of Oando PLC) and Energia Limited, the Operator of their Joint Venture - Ebendo/Obodeti Marginal Field (OML 56), commissioned and handed over infrastructural projects to six host communities in Kwale, Ndokwa West Local Government Area, Delta State. The projects include a newly built health centre; housing estate; fully furnished community town hall; two new and fully furnished palaces; an integrated drainage system and roads and rural electrification for the benefit of the communities of Ebendo, Obodougwa, Umusam, Isumpe, Umusadege and Ogbeani. The projects are an actualisation of the promises made by the Joint Venture in

an agreed Memorandum of Understanding (MoU) with the host communities for the exploration and operations of the Ebendo/Obodeti oil field. These newly commissioned projects are in addition to 35 other social and infrastructural projects worth over N2 billion delivered over a 10- year period in line with the MoU. Projects have included the Ebendo Community Ultra-Modern Market, the Isumpe Community fully furnished Ultra-Modern Town Hall, and the provision of community buses and a robust Welfare Programme through a Trust Board for elderly community members. Speaking at the commissioning, the Governor of Delta State, Senator Ifeanyi Okowa, represented by the Commissioner for Oil and Gas, Freeman Fregene, said; “The existence of Oando and Energia

has brought rapid developments to these host communities. The performance of these companies reflects on the developmental strides of the communities and it is worth emulating at all levels”, he said. From inception the mission of the JV partnership has been to effectively drive the rapid and sustained development of its host communities. To do this they put aside a percentage of their gross production revenue for diverse community development projects. In 2009, they established the Community Trust Fund (CTF) Board, consisting of representatives from Oando, Energia and the host communities. So far, the CTF has spent N2 billion on over 35 infrastructural projects across the Emu Ebendo, Oboduguwa, Umusam, Isumpe, Ogbeani and Umusadege communities.

Email: energyreport@businessdayonline.com, Tel: +234-8023020011; +234-7037817378

BUSINESS DAY

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Energy Report

NNPC fast-tracks agreements with bulk purchase marketers Olusola Bello

he Nigerian National Petroleum Corporation (NNPC) has fasttracked agreements with bulk purchase Marketers in the country, in order to curtain any unforeseen circumstance that could cause disruptions in fuel supply during the Christmas period, a statement released weekend in Abuja by the corporation’s Group General Manager, Group Public Affairs, Ndu Ughamadu, has said. Quoting the NNPC Chief Operation Officer (COO), Downstream, Henry Ikem Obih, Ughamadu stated that all NNPC depots, Petroleum Products Marketing Company (PPMC) throughput partner depots, the Major Marketers depots and depots of Depot and Petroleum Products Marketers Association of Nigeria (DAPMAN) members who signed the Bulk Purchase Agreement, BPA, with PPMC as well as NNPC Retail stations, Major Marketers Association of Nigeria (MOMAN) and Independent Petroleum Marketers Association of Nigeria (IPMAN) filling stations, will continue to operate at maximum levels to ensure uninterrupted distribution

Tuesday 11 December 2018

of petroleum products nationwide. The statement said Obih urged motorists not to engage in panic buying of petroleum products during the festive season, adding that government had agreed to settle the first tranche of the verified claims of the Oil Marketers subsidy claims in line with the approval of Federal Executive Council (FEC) and National Assembly (NASS) by Friday, 14 December, 2018. The NNPC spokesperson explained in the statement that Obih applauded Marketers under the aegis of MOMAN, some BPA DAPPMAN members, IPMAN, National Association of Road Transport Owners (NARTO), Petroleum Tanker Drivers (PTD), Petroleum and Natural Gas Senior Staff

Association of Nigeria (PENGASSAN) and Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) for aligning with the Federal Government’s plan to pay the first tranche of the verified outstanding of N236bn subsidy claims during next week. The statement relayed that Obih explained that the payment of the verified subsidy debt would be in form of promissory notes, while assuring that the NNPC would continue to work with all relevant downstream stakeholders to ensure that the country is wet with petroleum products going forward. The statement signed by Ughamadu said as part of efforts to sustain the zerofuel shortage situation in the country, NNPC has assured

motorists and all relevant stakeholders that it has 2.6 billion litres stock of Premium Motor Spirit (PMS) otherwise called petrol and 90,000 metric tonnes of Dual Purpose Kerosene (Diesel), saying the holding is expected to last 52 days, assuming no single drop of products is imported from now. The stock, according to the statement, is the largest petroleum products inventory ever held by the National Oil Company since it was established in 1977, adding products are already strategically stored in all NNPC depots across the country. Ughamadu in the statement also quoted the managing director of the PPMC, Umar Ajiya, as disclosing that Nigerians should go about their normal businesses as adequate arrangements have been put in place by the NNPC and PPMC to ensure that there is continuous supply and uninterrupted distribution of petroleum products throughout the country. It said Ajiya assured that all the 618 NNPC retail stations and all the NNPC depots would be operational across the country throughout the festive season in order to ensure seamless supply and distribution of petroleum products.

Hope rises for steady electricity generation in Ghana, Togo and Benin ..as Axxela begins gas transportation To W/African Countries

ountries of West African region that are often faced with erratic power generation because of constant attacks on gas pipelines meant to supply gas to their power stations may heave a sigh of relief as Axxela Limited, an Indigenous midstream operator, has signed a Gas Transportation Agreement (GTA) with the West African Gas Pipeline Company Ltd. (WAPCo) to transport over 15 million standard cubic feet per day, mmscf/d, of natural gas via the West African Gas Pipeline (WAGP) to Lome, Togo. Countries like Ghana, Benin and Togo depend on gas supply from Nigeria to fire their power stations but have suffered consistent disruptions occasioned by attacks on gas pipelines or production lines in the Niger Delta region of Nigeria But with this development security of supply is guaranteed as the company would be responsible at ensuring that required volume gas needed by customers

fessionalism, strategic partnerships, and excellence across our business enterpr is e, w e remain firmly committed to the positioning of gas as a catalyst for socio-economic empowerment across the region’s key markets.” Also commenting at the signing ceremony, WAPCo Managing Director, Walter Perez, stated: “With public and private players increasingly working together to propel the gas advantage, our partnership with Axxela speaks to our overarching strategy for increased regional supply and participation. WAPCo is continuously driven to spur regional gas integration, and we are highly delighted to welcome Axxela on board the WAGP, and look forward to a fruitful and industrydefining collaboration.” Axxela is also developing a Floating Storage and Regasification Unit (FSRU) in West Africa’s main commercial hub, Lagos, with the capacity to serve Nigeria and the region. The concept will

Nigeria needs to prepare for rising mass of mismanaged plastics STEPHEN ONYEKWELU

igeria has ranked number nine on e a r t h d a y . o r g ’s ranking of top 20 countries by mass of mismanaged plastics. China, Indonesia, Philippines, Vietnam, Sri Lanka, Thailand, Egypt, Malaysia, Nigeria and Bangladesh are the top ten countries with the worst mass plastics management strategy. Nigeria has become the biggest market for import of plastics in primary form as petrochemicals set to drive oil demand. With about 70 percent of raw materials imported (mainly from the Middle East, Europe and Asia) and only 30 percent produced locally, the Nigerian market has great potential for exporters of plastics in primary forms. Plastics are petrochemicals, which are components derived from oil and gas that are used in daily products such as fertilizers, packaging, clothing, digital devices, medical equipment, detergents and tyres. They are becoming the largest drivers of global

oil demand, in front of cars, planes and trucks, according to a major study by the Parisbased International Energy Agency (IEA), ‘The Future of Petrochemicals published October 05. Despite its many uses, plastics constitute an environmental nightmare and if they are poised to even become more indispensible, then the world must embrace actions to curtail the drastic consequences. The seas and oceans are filled with plastics threatening aquatic life and the earth’s ecosystem. In a July 15 report, BusinessDay had pointed out that with Indorama-Eleme Petrochemicals churning out raw materials in the plastics industry, Nigeria is set to play big in the $370bn global plastics market now in existence, though Nigeria also faces huge risks in the emerging risks in beat pollution especially cancer and other poisons caused by plastics. Arthur Essaghah, a professor of environmental studies and senior research adviser in Shell, has raised alarm, saying six particular chemicals used in the production of plastics cause cancer and kill over one

million sea birds and over 700 organisms per year. Also, over 150 million tonnes of plastics are now sitting in the oceans of the world as wastes, and could overtake the population of fish stock in the oceans by 2050. Packaging is said to cause up to 44 per cent of plastics produced in both the developed and developing worlds. In the years 2008 to 2015, imports of plastic raw materials increased annually by 7.20 percent from 464 kilotons to 754 kt. This makes Nigeria, together with Algeria, Africa’s largest importer of plastics in primary forms, according to Europe Plastics and Rubber Machinery (EUROMAP), an umbrella organisation of the powerful European plastics and rubber machinery industry which accounts for some 40 percent of worldwide production and 50 percent export volumes. Demand for plastics, the key driver for petrochemicals from an energy perspective has outpaced all other bulk materials (such as steel, aluminium, or cement), nearly doubling since 2000. Advanced economies currently use up to 20 times more plas-

tic and up to 10 times more fertiliser than developing economies on a per capita basis, underscoring the huge potential for global growth. In 1950 the world produced only 2 million tonnes of plastics per year. By 2015, annual production had increased nearly 200-fold, reaching 381 million tonnes. For context, this is roughly equivalent to the mass of two-thirds of the world population. Over the period from 1950 to 2015, cumulative production reached 7.8 billion tonnes of plastic — more than one tonne of plastic for every person alive today. It is estimated that around three percent of global annual plastic waste enters the oceans each year. In 2010, this was approximately 8 million tonnes. To understand where plastic entering the oceans is coming from, the primary concern is with mismanaged waste in coastal populations, such as Lagos. Mismanaged waste is plastics which are disposed of in open landfills or dumps, littered, or otherwise discarded by means which can spill out to the surrounding environment.

L-R: Walter Perez, managing director, West African Gas Pipeline Company (WAPCo); Debo-K’mba Barandao, director-general, West African Gas Pipeline Authority (WAGPA); and Bolaji Osunsanya, chief executive officer, Axxela, during the recent signing of a gas transportation agreement between Axxela and WAPCo at the WAPCo Head Office in Accra, Ghana

from these countries are delivered to them as at when due. During the signing ceremony held in Accra, Ghana, Axxela chief executive officer (CEO), Bolaji Osunsaya, said: “The partnership between Axxela, WAPCo, and the West African Gas Pipeline Authority (WAGPA) portends major benefits for the West African gas markets. The flow of new molecules beyond the existing foundation contracts will diversify gas supply sources into the WAGP, and affirms Axxela’s proactive mid-term growth plan. “Propelled by our pro-

see the injection of gas via a regasification terminal at a strategic location along the city’s coastline, with gas supplied via LNG shuttle vessels. The virtual pipeline solution will also enable uninterrupted gas supplies and enhance gas utilization across key industrial clusters. The WAGP is a 678km regional pipeline linking the Escravos-Lagos Pipeline System (ELPS) in Nigeria to Takoradi in Ghana, with gas delivery laterals from the main line extending to Cotonou (Benin), Lome (Togo), and Tema (Ghana).

Tuesday 11 December 2018

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Energy Report

Stakeholders in gas sector identify gaps between gas to industrialisation Olusola Bello

he Nigerian Gas Association has said there is still a huge amount of work to be done in the gas sector towards actualising government’s aspirations in respect of economic development and industrialisation. The association in a communiqué issued after its conference in Abuja and signed by its president, AUDREY JOE-EZIGBO, urged the federal government to maintain a concerted push towards monetisation of Nigeria’s gas resources, noting that natural gas is a key ingredient for the success of the government’s identified ERGP key priority areas of: 1. Achieving Agriculture and Food Security – Natural Gas resource abundance supports increase in fertilizer production 2. Attaining Energy Sufficiency in Power and Petroleum Products – Natural Gas fueled power generation remains the lowest cost option for immediate and massive increase in national grid power generation as well as

increased LPG production 3. Improving Transportation Infrastructure – Natural Gas vehicles will enable in the first instance mass transit and large fleet operations 4. Drive Industrialisation by focusing on SMEs – Natural Gas will provide the fuel and energy required for local manufacturing including Petrochemicals to grow, providing the necessary Natural Gas the communi-

qué stated has the capacity to propel industrialisation, adding that gas exports are used for the development of other economies. Nigeria they said should therefore aim at balancing domestic and export needs with domestic gas consumption embracing gas-to-power, gas-based industries such as fertilizer, methanol and other petrochemical plants, transporta-

tion and other sectors. Maximizing capacity utilization of existing gas infrastructure is of as much importance, as the push for new gas infrastructure development. They stated further that there should be extensive due diligence by project developers in planning and execution of projects, as well as concerted efforts to enhance execution capabilities of contractors.

The NGA however lends its support to the NNPC 7 critical gas projects and therefore calls the on government to support these projects, including the expansion of the NLNG Trains, the Ajaokuta-Kaduna-Kano (AKK) Pipeline Project, the Brass Fertilizer Project and other similar projects that are imperative to the realisation of Nigeria’s Economic Recovery and Growth Plan (ERGP) priorities. The Minister of State for Petroleum Resources, Emmanuel Ibe Kachikwu, stated that infrastructure development is key stating that plans to launch the Gas Infrastructure Rebirth which will open up tariffs and create policy positions that enable investment by the private sector in critical gas infrastructure, to progress the nation’s national aspirations for gas-based industrialization. He reiterated the relevance of Natural Gas in economic development and industrialisation and noted that there is still a huge amount of work to be done in the gas sector towards actualising the government’s aspirations.

Nigeria’s flared gas can power three thousand households at 1000kWh monthly STEPHEN ONYEKWELU

igeria’s government has on separate occasions shown it is aware gas flaring comes at colossal economic and environmental costs but the gas commercialisation initiative of government still struggles to overcome lethargy. When crude oil is extracted from onshore or offshore oil fields it brings with it raw natural gas to the surface, where natural gas transportation, pipelines and infrastructure are lacking this gas is instead burned off or flared as waste product as this is the cheapest option, particularly when gas prices are low and fines are not collected by national regulatory bodies. Gas has been flared in Nigeria since the 1950s. Despite the acute energy poverty faced by Nigerians and legislative efforts to reduce gas flaring, it is still a major cause of human and environmental health issues in the Niger Delta and releases vast amounts of carbon dioxide (CO2)

and pollutant gases into the atmosphere. A document from the Department of Petroleum Resources (DPR), cited by BusinessDay July 27 stated that additional 3,000 megawatts (MW) of electricity can be generated from the current gas being flared in Nigeria. BusinessDay’s estimates show that additional 3, 000 MW can power three million households in Nigeria. This is because an average Nigerian household would need 1000kWh per month, depending on the energy efficiencies of appliances, for relative comfort. At 1000kWh per month, three

thousand households can be powered. Here is the reasoning. An average Nigerian middle class household uses about 300 kWh of electricity per month, which costs an average of N7500 but this is not sufficient to satisfy most families’ power needs because they receive electricity an average of six hours per day for 30 days in a month. Twenty-four hours of electricity, means the bill could go up to N30,000 per month and that would give about 1200 kWh which can satisfy an average Nigerian family of today. An average Nigerian household would

then need at least 1000 kWh worth of it per day but that may not be so quick in coming. So, if every Nigerian family has at least 1000 kWh of electricity per month, it would make life easier for them but since electricity generation is not sufficient for all Nigerians who need it, the power company normally does what is called load shedding, which means rationing of electricity to people and this offers about four to six hours of electricity on the average per day. Nigeria has over 150 flare sites, flaring hundreds of billions of standard cubic feet (scf ) of natural gas each year (in 2015, Nigeria flared 800MMscfpd of associated gas), losing billions of dollars’ worth of economic potential to gas flaring. The Nigeria Flared Gas Commercialisation Programme (NGFCP), seeks to reverse this trend. Gasflaretracker.ng, a website that promotes advocacy against gas flaring in Nigeria estimated the following totals per year, 333.56 Mscf, which amounts to $783.80 million and unpaid fines of $1.10 billion.

The group put power generation potential of flared gas at 27, 091.10 GWh and carbon dioxide emission at 17 million tonnes. DPR’s report shows Nigeria currently flares about 11 per cent of its gas production, bringing Nigeria to seventh biggest gas flaring nation in the world. The volume of gas flared is substantial and the wasted resource is capable of providing millions of Nigerian homes, as well as industrial areas with electricity access yearly. Apart from these alternative socio-economic resourcefulness of otherwise flared gas, flaring has been proven to have serious consequences on environmental health and social impacts in local communities in the Niger Delta and beyond. These include respiratory illnesses, acid rain and corrosion of roofs, among others. The alternative social-economic uses available for flared gas, alongside the need to curb negative environmental, social and economic impacts of gas flaring have made executing a national strategy for gas flare commercialisation necessary

World Bank $200bn climate action targets renewable energy, others OLUSOLA BELLO

orld Bank $200billion Climate Action Investments targets renewable energy, green building with the aim of reducing effect of climate change. According to IFC CEO Philippe Le Houérou, he said: “Our job is to go out and proactively find those opportunities, use our derisking tools, and crowd in private sector investment. We will do much more in helping finance renewable energy, green buildings, climate-smart agribusiness, urban transportation, water, and urban waste management” The World Bank Group has set new climate targets for 2021-2025, doubling its current 5-year investments to around $200 billion in support for countries to take ambitious climate action. In key sectors, efforts will include, support for the generation, integration, and enabling infrastructure for 36 GW of renewable energy and support 1.5 million GWh equivalent of energy savings through efficiency improvement and helping 100 cities achieve low-carbon and resilient urban planning and transit-oriented development and in food and land use, will help increase integrated landscape management in up to 50 countries, covering up to120 million hectares of forests. The new plan significantly boosts support for adaptation and resilience, recognizing mounting climate change impacts on lives and livelihoods, especially in the world’s poorest countries. The plan also represents significantly ramped up ambition from the World Bank Group, sending an important signal to the wider global community to do the same. “Climate change is an existential threat to the world’s poorest and most vulnerable. These new targets demonstrate how seriously we are taking this issue, investing and mobilizing $200 billion over five years to combat climate change,” World Bank Group President, Jim Yong Kim said. “We are pushing ourselves to do more and to go faster on climate and we call on the global community to do the same. This is about putting countries and communities in charge of building a safer, more climate-resilient future.”

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remittance inflows to hit record MMA2 not indebted to FAAN – BASL Nigeria’s high of $25bn in 2018 – World Bank

IFEOMA OKEKE

he Management of Bi-Courtney Aviation Services Limited (BASL), operators of the domestic wing of Murtala Muhammed Airport Terminal Two (MMA2), Ikeja, Lagos, has restated that it is not indebted to the Federal Airports Authority of Nigeria (FAAN). This is as the operator stressed its commitment to ensure seamless flight operations and services at the terminal. This is coming on the heels of the release by FAAN in the form of a Notice to Airmen (NOTAM) that with effect from Monday 10th December 2018, Aviation Security Personnel will be withdrawn from the terminal. This action is due to alleged financial infractions against BASL. Recall that FAAN had threatened to withdraw its personnel from MMA2 due to alleged indebtedness to the tune of N1, 943,323,516.50 billion naira. In a letter dated 30 October 2018 to BASL pertaining to outstanding personnel costs for FAAN staff deployed to MMA2, demand-

... Remains open for operations ing Bi-Courtney to pay for the provision of the Aviation Security, Rescue and Fire Fighting Services as invoiced by FAAN among other charges or face withdrawing its personnel. This was formally responded to in a letter addressed to FAAN reiterating BASL’s stance on the demands for payments of purported outstanding liabilities. In this letter addressed to FAAN, BASL states “We have consistently brought it to your notice that we have a judgment credit of N132, 540,580,304.00 (one hundred thirty-two billion, five hundred forty million, five hundred eighty thousand, three hundred four Naira) since 03 March 2009. This credit arose directly from the non-implementation of the Concession Agreement by the appropriate authorities. The Courts have consistently ordered that any liability we have to FAAN or any federal government agency should be deducted from this amount”. BASLsaiddespitethereceipt of it’s response, FAAN have flagrantly disregarded several

CourtOrdersincludingthemost recent with reference Suit Number - FHC/ABJ/CS/1422/18/ issued on Wednesday, the 28th of November 2018 pertaining to this matter, duly served to FAAN, ordering that “the status quo be maintained and that nothing that may disrupt and / or hinder the operation of the Airportshouldbedonepending the hearing and determination of the Motion on Notice”. BASL went on to state that ample safety and security measures have been put in place to ensure the withdrawal of FAAN personnel does not in any way impede or disrupt smooth flight operations and other business activities at the terminal, reiterating that there are adequately trained and NCAA certified personnel to man the various parts and all sensitive points at the terminal. According to statement made available to journalists in Lagos by BASL management, since inception, BASL said it has trained its own Aviation Security Personnel to work along with FAAN Security at the terminal.

“Since 2016, BASL have been performing the same service that FAAN performs in their absence. Staff are trained in accordance with the National Civil Aviation Security Training Programme (NCASTP) in respect of X-ray Image Interpretation and physical security screening. It should be noted that the withdrawal of FAAN personnel in no way jeopardizes security levels–infact,itisknownthatthe NCAA have conducted numerousauditsonFAANpersonnelat theterminalrevealingthatmany of the staff are absent and that the required number are not on duty or do not have the requisite training,” the statement said. BASL assured all air operators and the travelling public that the regulatory requirements for security and safety will be strictly adhered to and complied with in full. “BASL is prepared and continues to consistently ensure safety, security and smooth operations at MMA2, without entertaining compromise on aviation best practices,” the statement said.

OLUWASEGUN OLAKOYENIKAN & TEMITAYO AYETOTO

emittance flows into Nigeria in 2018 have been projected to hit its highest point in history at $25 billion. This would mark a 14 percent growth from $22 billion inflow into the country in 2017, according to a recent edition of the World Bank’s Migration and Development Brief. Although it is positive as the pace of growth seems on track to accelerate significantly in 2018, the Bank projects that the growth rate might weaken and grow even much slower in the coming year for SubSaharan African countries. The report indicates that the inflows account for 6.1 percent share of Nigeria’s Gross Domestic Product (GDP) in 2018. In 2016, Nigeria recorded •Continues online at $19.68 billion in remittances www.businessdayonline.com

Growth remains sluggish as Q3 GDP expands by 1.81% ... below analysts’ expectations ENDURANCE OKAFOR & BUNMI BAILEY

President Muhammadu Buhari (l) with Chidi Izuwah, Ag. DG/CEO, Infrastructure Concession Regulatory Commission, at the Enyimba Economic City Definitive Agreement signing ceremony at Aso Villa, recently.

Anchor Borrowers: Rice farmers can’t meet loan obligations ... seek fresh bailout from FG JOSHUA BASSEY & ODINAKA ANUDU

ome loans dispersed to rice farmers under the Federal Government’s Anchor Borrowers Programme may not be recovered, as the farmers say they can’t meet their loan obligations following extensive damage done to their farms by flooding. No fewer than 360,000 farmers that got loans from the Central Bank of Nigeria (CBN) are affected. Rice Farmers Association of Nigeria (RIFAN) is rather asking the government to bail out affected farmers by granting fresh loans to enable them to engage in dry season farming.

which grew by 11.8 percent to $22 billion in 2017. The country ranked second in Sub-Saharan Africa, outpaced by Egypt which recorded $25.68 billion remittance inflows in 2018, according to the World Bank’s latest estimate. Ghana is projected to record $3.8 billion inflows in the year in review while South Africa is seen recording $921 million inflows in 2018 compared with $873 million achieved in the previous year. For Sub-Saharan Africa Remittances, growth has been sustained since 2016 and it is expected to inch higher by 9.8 percent to $45 billion in 2018, on the back of strong economic conditions in advanced economies, specifically the United States where many of the region’s migrants rake their earnings.

Aminu Goroyo, national president of RIFAN, said this is only the way through which farmers who benefitted from the scheme can service their loans. Farmers in major rice producing states like Kebbi, Jigawa, Kogi, Anambra among states are believed to have been seriously hit by flooding which washed away their crops. As of last month, 850,000 smallholder farmers had benefited from the Central Bank of Nigeria (CBN)’s N160 billion Anchor Borrowers’ Programme (APB) in the last three years, Godwin Emefele, CBN governor, said. “In the past five years, the CBN has achieved a lot in agriculture, not restricted to

rice production but spread over targeted 15 different commodities. “For instance, since the launch of ABP in November 2015, over 850,000 small holder farmers have benefited from N160 billion disbursed under the programme,” Emefele said at a town hall meeting on Agriculture in Dutse, Jigawa. But Goroyo, who spoke in Abuja on Monday, lamented the plight of rice farmers, saying that the huge losses resulting from the massive flooding of their farms have compounded the difficulty of members in meeting their loan obligations to lenders. Goroyo, who commended the thoughtfulness of the initiative, said: “Most of the

affected farmers no longer have the capacity for loan repayment, having lost most of their crops to floods. Rice is one of Nigeria’s staple foods. Production has shot up following the ban slammed on imported rice by the Federal Government. The ban was to help grow more rice locally and in the long run not be self-sufficient but reduce the price of the produce, but it is yet to be seen whether this has been achieve. In May last year, CBN had said that benefiting farmers had paid back over N7 billion from the loans they got under the programme, contrary to insinuations in some quarters that the farmers were unwilling to pay back their loans.

igeria’s economic expansion remains sluggish and below expectations, analysts have said, noting that with the current growth rates, more Nigerians are falling into poverty. Gross Domestic Product (GDP) grew by 1.81 percent (year-on-year) in real terms in the third quarter of 2018, driven by the non- oil sector, the National Bureau of Statistics (NBS) said in a report Monday. The rate came in lower than analysts’ consensus as well as Afrinvest’s projection of 2.1 percent for Q32018, said Ayodeji Ebo, MD, Afrinvest Securities Limited. “The real GDP growth rate further confirms that a lot of

Nigerians are going into poverty when compared with the population growth rate of 2.6 percent,” Ebo said. The non-oil sector contributed 90.62 percent of the growth in the quarter under review, with the oil sector contributing the remaining 9.38 percent, the NBS said in a report released today. Nigeria, Africa’s biggest oil producer and exporter, has sought to diversify the economy away from dependence on oil. Nigeria fell into a fivequarter recession from Q1 2016 to Q1 2017 that resulted from the collapse of oil prices. Ibrahim Tajudeen, Head of Research, Chapel Hill Denham said there was a bit of improvement in the nation’s GDP. “Nigeria is delivering

Continues on page 35

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NEWS Buhari’s approval rating hits 4-year low... Continued from page 1

undecided.

There has been growing dissatisfaction with the 75 year old retired general’s rule that has witnessed an economic recession – the first in more than two decades. Even after coming out of recession, the economy continues to stutter, growing at a sluggish 1.81 percent rate in the 3rd quarter of 2018, far below the country’s population growth rate. Meanwhile, food inflation continues to grow at an alarming rate making most of the rural poor to fall into the extreme poverty. The country, Africa’s largest economy and biggest energy exporter, was recently tagged by the Brookings Institution as the poverty capital of the world, overtaking India. According to the Institution, over 87 million Nigerians were living in extreme poverty and 6 Nigerians fall into the extreme poverty hole every minute and 8,000 every day. A breakdown of the approval ratings across the geopolitical zones

shows that the president received the highest approval ratings of 62 percent in the North West, followed by the North East where he got 55 percent. In the North Central, a region that had hitherto supported the president but where the relentless Fulani herdsmen attack has seen the decimation of the local farming population, he got 31 percent approval rating. His approval ratings were generally poorer in the south. In the South West where he still retains some support due to his alliance with the region’s political masters that saw the region clinching the vice presidency and key government positions in the government, he managed to poll 24 percent. In the South South, his approval rating was a mere 18 percent and in the South East where he did not receive much support in 2015 and where his decision to send troops into the region to quell the Biafra secessionist group stoked anger, he polled only 8 percent. Meanwhile, confronted by his low approval ratings and the threat of the main opposition People’s

Democratic Party (PDP) to his reelection bid in next year’s election, the ex-general has resorted to type, ignoring democratic norms and setting security and anti-corruption agencies to ruffle and unsettle key members of the opposition. Earlier last month, security agents forcefully searched the private plane of his main challenger in the 2019 elections, former vice president, Atiku Abubakar, as he returned from Dubai, the United Arabs Emirates after a holiday. On Saturday the main opposition party, the People’s Democratic Party (PDP) said the bank accounts of its vice-presidential candidate, Peter Obi, had been frozen by the Buhari administration, saying the development followed relentless harassments of the politician’s family members by supporters of the ruling All Progressives Congress. The country’s main anti-corruption agency, the Economic and Financials Crime Commission (EFCC) denied the claim. Also on Saturday, another opposition member spokesperson, Doyin Okupe, alleged the EFCC visited his house and sought to arrest him for

L-R: Paul Gbededo, group managing director, Flour Mills Nigeria; Knut Ulvmoen, deputy president, Lagos Chamber of Commerce and Industry (LCCI); Babatunde Ruwase, president, his wife, Muhli; Toki Mabogunje, deputy president; Ganiyu Rufai, representative of Lagos State governor, and Jude Idimogu, chairman, Lagos House Committee on Commerce, Industry and Cooperatives, at the LCCI celebration of 130th anniversary, in Lagos.

A tale of two companies: How NLNG can... Continued from page 1

big brother,” Abba Klago an oil

industry stakeholder tweeted. Analysts have attributed the success story of the NLNG project to the shareholding and governance structure of the company that made it an independent incorporated joint venture, guaranteeing an independent board of directors, effective decision making as well as funding for its projects. “The answer is in the ownership structure; NLNG is run like a serious business where there is minimum government interference unlike NNPC,” Adeola Adenikinju, gas policy analyst for the World Bank and professor of Economics at University of Ibadan told BusinessDay. Unlike 100 percent government owned NNPC; NLNG is an incorporated company which is owned by the Federal Government, represented by NNPC (49 percent), Shell (25.6 percent), Total Gaz Electricite Holdings France (15 percent) and Eni (10.4 percent). Adenikinju noted that the Petroleum Industry Governance Bill (PIGB) would have helped to restructure the industry but it has not been passed yet; so NNPC will continually be at the mercy of its principal. “NLNG will continue to remain competitive to a large extent although they would face challenges for push of domestic utilization of gas to power household to drive our local econo-

my,” Adenikinju told BusinessDay. Emmanuel Afimia energy analyst at Afimia Consulting Limited said NLNG’s operations are similar to the operations of IOCs while on the other hand, NNPC is wholly owned by the Nigerian Government. “Absence of government’s bureaucracy in NLNG could be the reason for the difference between the two companies,” Afimia told BusinessDay. According to NLNG, the company has converted about 119 Bcm (Billion Standard Cubic Metres) or 4.2 Tcf (Trillion Cubic Feet) of Associated Gas (AG) to exports as LNG and Natural Gas Liquids (NGLs), thus helping to reduce gas ﬂaring by Upstream Companies from over 60 percent to less than 25 percent. “Gas can lift Nigeria, which is where NLNG comes in. NLNG is producing 22 Million Metric Tonnes Per Annum (MMTPA) but we are not resting on our oars. We want to construct a Train 7 that will increase our capacity to 30 MTPA. It is time for gas. It is time to unleash Nigeria’s potentials. That is how we can survive the future with increasing appetite for renewable energy,” NLNG CEO, Tony Attah said at the 2nd West Africa International Petroleum Exhibition and Conference (WAIPEC). NLNG was once touted as the fastest growing LNG Company globally, with the development of new trains which occurred between 2000 and

2007. The 6 trains have a total production capacity of 22mn tones/annum of LNG and 5mn tones/annum natural gas liquids (NGL) from 3.5bn cubic feet of natural gas reserves. In October 2017, approval for the FinalInvestmentDecisionfortheproduction of the Bonny Train 7 was given by NLNGLtd.Theprojectisadvantageous for both Nigeria and NLNG Ltd. The expectedincreaseinproductioncapacity would increase Nigeria’s gas export, enabling the country regain its place as one of the top three gas exporters globally, and encourage diversification of energy resources. The project is expected to cut down poverty through the creation of massive job opportunities. Consecutively, this will increase fiscal and FOREX revenue thereby boosting industrialization which will drive economic activity and growth. While NLNG seems to be performing relatively well, same cannot be said of NNPC which is still plagued with age long problems such as subsidy now called UnderRecovery, increasing pipeline maintenance cost and obsolete refineries. In August, NNPC recorded a trading deficit of N3.90 billion. The combined value of output by the three refineries (at import parity price) for the month of August 2018 amounted to N8.67 billion while the associated Crude plus freight costs and operationalexpenseswereN9.78billion and N9.68billion respectively which resultedtoanoperatingdeficitofN10.79 billion by the refineries.

“cyber stalking.” “They knocked and I told them to come in, but when they identified themselves as being from the EFCC, I asked for letter of invitation or arrest warrant, but they could not provide either,” Okupe said. “I immediately said I cannot follow them that they should give me time and also go back and obtain a warrant or invitation letter.” Also last week, a governorship candidate of the PDP in Lagos state, Jimi Agbaje, alleged that the Lagos state government removed and vandalised his campaign posters and boards from the streets of Lagos. In response, the Lagos State Signage and Advertisement Agency (LASAA) justified the removal saying the PDP candidate did not get authorisation before mounting the billboards and posters. “There are rules and regulations guiding the pasting of bills and posters in Lagos State which must be strictly adhered to,” Mobolaji Sanusi, General Manager of LASAA, said at a meeting summoned by the Lagos State CommissionerofPolicetoresolvethematter. On Saturday, the anti-corruption commission raided and searched a building in Abuja housing an apartment occupied by two sons of Atiku Abubakar, the PDP’s presidential candidate and Buhari’s main challenger. Meanwhile, the PDP Presidential Campaign Organization (PPCO) has condemned Saturday’s raid on the residence of the sons of its presidential candidate, Atiku Abubakar by the Economic and Financial Crimes Commission (EFCC). The Council described the raid as vicious, outrageous, dirty and reprehensible. A statement by Kola Ologbondiyan, Director of Media and Publicity, Presidential Campaign Council, urged President Muhammadu Buhari to stop “importing such vicious underhand tactics into our political hemisphere”. The Council also reminded the President to note that as an opposition Presidential candidate from 2003 to 2015, none of his children or family members were attacked or victimized by the PDP government. The statements reads: “The invasion of Aliyu and Mustapha Abubakar’s home, even in their absence, allegedly in search of imaginary cache of foreign currency, has further exposed how depraved the Buhari Presidency has descended in the desperate plot to harm, traumatize and malign the character of our Presidential candidate and his family, having realized that Nigerians have aligned behind him as the next President of our country.” “It is indeed appalling that the

Buhari Presidency can now go as low as engaging in wicked politics of chasing after family members of a Presidential candidate, who are neither government officials, government contractors nor involved in any underhand dealings, but young students pursuing their legitimate personal educational careers without ill will to anybody. “While nothing incriminating was found in the apartment, the PPCO has been made aware of how the squad, said to be acting on ‘orders from above’ ransacked the house and destroyed valuables belonging to Atiku’s children and we demand an explanation from the leadership of the EFCC. “The PPCO completely rejects the wicked politics that the APC and the Buhari Presidency are importing into our polity. We hereby urge all Nigerians, particularly the youths, to rise in condemnation of these vicious acts,” the statement said. This may just be history repeating itself. In his first coming as military head of state, confronted by the apparent failure of his command and control policies and his failure to revamp the economy as promised, the Buhari regime became more oppressive and intolerant of criticism. AsAdebayoOlukoshiandTajudeen Abdulraheem, scholars in Nigeria’s government and politics rightly noted, “The Nigerian Security Organisation’s powers were significantly expanded.” In his second coming, Buhari has often bemoaned his lack of adequate powers to deal with the corrupt unlike when he was a military general where his words were laws and where he locked up the corrupt and assumed them guilty until they could prove their innocence. Meanwhile the Presidency on Monday washed its hands clean on the purportedfreezingofthebankaccounts of the PDP Vice Presidential candidate in the 2019 elections, Peter Obi. This is just as Presidency also denied ordering raid of the home of the son of the party’s presidential candidate, Atiku Abubakar. A statement by the Senior Special AssistanttothePresidentonMediaand Publicity,GarbaShehu,onMondayadvisedNigeriansto“ignoretherumour”, describingitas“fairytale”fromthePDP. According to Garba Shehu, “ The story about the raid “ordered by Buhari-led government” on the home of PDP Presidential Candidate, Atiku Abubakar’s son and the fairy tale on the alleged blockage of the bank accounts of the running mate,Governor Peter Obi and his family are both untrue.”

Growth remains sluggish as Q3 GDP... Continued from page 34

growth rates below expectation of 7-8 percent. It reflects a slight improvement (over the Q2 rate) but below expectation. There was a recovery in agriculture to 1.19 percent in Q3 from 1.91 percent in Q2 but that is still below 3 percent that it recorded before,” Tajudeen told BusinessDay. Johnson Chukwu, CEO, Cowry Asset Management Limited said “we improved in terms of GDP growth rate, but in terms of real GDP per capita, it is still negative. The population is still growing at about 2.7 percent while GDP is growing at 1.8 percent .The GDP growth rate is an improvement from Q2 2018, but it is far from the growth rate that we need to reduce the incidence of poverty.” A breakdown of non-oil sector contribution to GDP in the quarter under review shows that services contributed 48.79 percent while agriculture contributed 29.25 percent and industries 21.97 percent. This is compared to the 53.97 percent, 22.18 percent and 23.18 percent

contributed by services, agriculture and industries in Q2 2017, respectively. Aggregate GDP in the review quarter stood at N33.37 trillion in nominal terms, the NBS said. This performance is higher when compared to the third quarter of 2017 which recorded a GDP value of N29.38 trillion thus, presenting a nominal growth rate of 13.58 percent. Growth in the nonoil sector was driven mainly by Information and Communication. Other drivers were Agriculture, Manufacturing, Trade, Transportation and Storage and Professional, Scientific and Technical Services. Speaking on GDP expectation for the fourth quarter, Tajudeen said he expects that the economy will record stronger growth. “If you look at it, the major focus is the non-oil sector because that is where growth came from in Q3 and one will expect further growth. We expect recovery in the agricultural sector and sustained growth in the trade sector,” Tajudeen said.

BUSINESS DAY

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LegalPerspectives

With

Tuesday 11 December 2018

Odunayo Oyasiji

The Role of E-Payment Systems in Doing Business in Nigeria (2) ROTIMI ADENIYI-AKINTOLA

of Perchstone & Graeys

1,000,000 naira. These measures have not been enough to catalyse Nigeria’s financial inclusion goals.

hat is financial inclusion, and why is it important? Financial inclusion is one of the major challenges to the growth of e-payments in Nigeria. Despite the Central Bank of Nigeria’s (CBN) target of 80% financial inclusion by the year 2020, the nation continues to struggle to provide financial products and services to its adult population, particularly the lowincome demographic. Financial inclusion matters, as it is one of the most important drivers of economic development. The benefits of financial inclusion for the poor are extremely significant. Money which sits outside the banking system; in drawers, mattresses and the like, is unable to appreciate in value by earning interest, and hence has a lower worth or net present value when used in the future. Financial inclusion would provide low income individuals and families with the means to safely make day-to-day transactions, safeguard their meagre savings, manage cash flow spikes and build working capital. This capital

can finance small businesses or microenterprises, mitigate shocks and expenses related to unexpected events such as medical emergencies, and improve overall welfare. According to a 2016 report by Enhancing Financial Innovation & Access (EFInA), a financial sector development organisation, 40.1 million Nigerian adults, representing 41.6% of the adult population are financially excluded – do not have access to bank accounts or financial services. This is a huge setback to the drive towards more advanced e-payment solutions. Radical measures are required

LOCUS CLASSICUS Central London Property Trust v High Trees House

rinciple: Doctrine of Promissory Estoppel was established in this case. Denning J “In my opinion, the time has now come for the validity of such a promise to be recognised. The logical consequence, no doubt is that a promise to accept a smaller sum in discharge of a larger sum, if acted upon, is binding notwithstanding the absence of consideration” Fact : Central L ondon Property gave out a property on lease to High Trees for a rent of 2500 pounds in 1937. High Trees (defendant) had a problem getting tenants to rent the property out to and the 2500 pounds became too high as the defendant was not making profit from the business. Many of the flats were still unoccupied in 1940 and the fact that there was war made the situation worse as the possibility of getting people to rent the unoccupied flats became very low. Because of the foregoing, the plaintiff decided to reduce the rent to 1250 pounds during the war years. This agreement was put in writing and the reduced rent was paid from 1941. After the end of the war, all the flats were fully occu-

pied and the plaintiff sought to return to the original rent of 2500 pounds. The court held that the rent will be returned to the originally agreed price for the future rents. The plaintiff was not allowed to claim back the amount reduced on the rent that was paid during the period of war. Promissory estoppel made it impossible for the recovery of reduced amount on the rent during the period of war despite the fact that the promise (of a reduced rent) was not backed by consideration.

to effectively provide a population of over 170 million citizens with access to financial services. To this end, the Nigerian government has introduced key regulatory initiatives to drive financial inclusion and electronic payments. In 2012, the cashless society project - to make Nigeria a top-20 economy by 2020 was introduced, as part of a larger Financial System Strategy 2020 vision to boost Nigeria’s financial system. Further, in 2017, the CBN reintroduced charges for cash handling, starting with 1.5% for cash deposits and 2% for cash withdrawals between 500,000 to

Boosting Financial Inclusion and E-payments A major untapped resource for advancing financial inclusion would be to leverage existing telecommunications networks. Current mobile penetration stands at over 238,116,977 active lines according to the Nigerian Communications Commission, with 21 million smartphones in circulation according to Jumia Mobile Report 2018. Compared to the 97.57 million bank accounts reported by the Nigeria Inter-Bank Settlement System (NIBSS) as being in existence as at February 2017, it is evident that more Nigerians own mobile phones than those that operate bank accounts, even accounting for double or multiple mobile line registrations. A report by KPMG Africa, estimated that only 30 million Nigerians have access to bank accounts. There is therefore a clear incentive to harness mobile penetration as a means of driving e-payments and in turn driving economic growth. The example of

Kenya could provide some guidance here. Kenyans transacted a record US$33 billion on mobile money transactions in 2016, up from US$27.8 billion from the previous year, according to data from the Central Bank of Kenya. In recognising this potential, and in an effort to bolster the use of mobile money, the CBN has repealed its decision to exclude telecommunications companies in Nigeria entirely from operating as purveyors of mobile money. Approval was given to Globacom, Nigeria’s second national operator, to create 500,000 mobile money agent outlets in the country through the Glo Xchange, a mobile money agent network in partnership with 3 commercial banks. Whilst this is a positive development, much more is required by the CBN in opening mobile payments to the telecommunications companies without restricting them to commercial banks. This will further harness their rich subscriber base. The CBN is advised to identify opportunities to engage stakeholders and experts in dialogue, to identify avenues for collaboration on mobile payments, and mitigate potential problem areas.

Jurisdiction, choice of law and evidence issues in e-commerce ADETOLA ADELEKE

Lead Partner, Crowncourt Attorneys

imply put, jurisdiction can be defined as scope of authority. It is the inauguration of legal authority. Jurisdiction is the authority which a court/tribunal has to decide matters that are litigated before it or to take cognizance of the matters presented in a formal way for its decision. The issue of jurisdiction is fundamental and it is the centre pin any litigation hinges on. Since most contracts set out the mechanism for the resolution of disputes between the contracting parties, the issue of jurisdiction and choice of law becomes a very important one in e-commerce. The problem is often a determination of which court assumes jurisdiction in a dispute arising from an e-commerce transaction. This is due to the fact that the parties may reside at different locations with different legal systems. Complex issues of conflict of laws arise here. Is it the law of the place of residence of the defendant? Where is that residence if the only address available is an email address? Do you use the residence of the registrar for the “url” for the email account or that of the ISP from where the mail was generated? Again is the law the place of performance or principal place of business of the defendants. What if the defendant has warehouse around the world and can direct supply from a warehouse in China to a call centre in Ghana, which is the place of performance? It could be argued that current conflict rules and conventions can be stretched to accommodate electronic transactions but this is not always an easy task. In International Private Law, the Brussels Convention on Jurisdiction

and Enforcement of Judgment in Civil and Commercial Matters apply to answer some of the above questions. However, the Convention is not domesticated in our laws. The jurisdictional challenge emphasises the need for regional and/or international harmonisation of e-commerce regulations and laws. Evidence Issues Prior to the amendment of the Evidence Act, one of the greatest challenges facing the courts in Nigeria was the (in)admissibility of computer-generated evidence. However, section 84 of the Evidence Act 2011 (EA) provides for the admissibility of computer-generated evidence. It makes computer-generated evidence admissible in any proceedings upon the fulfilment of certain conditions, including the production of a certificate identifying the document and confirming that the information contained in it were produced by proper operating computers. There is no gain saying that all evidence to be tendered in proceedings bordering on e-commerce will be of a computer-generated nature. Consequently, section 84 of the EA must

be complied with. Section 93 (2) and (3) also operates to recognise the admissibility of electronic signature in Nigerian courts, upon the fulfilment of conditions in section 84. In Kubor v Dickson (2013) 4 NWLR (Pt. 1345) 534, the Supreme Court held that for computer-generated evidence to be admissible in court, all the conditions set out in section 84 of the EA must be fulfilled. Despite the innovations of the EA, the precise nature of the requirement of section 84 of the EA remains unclear and it is certain that the admissibility of computer generated evidence will still remain a challenge. There is therefore the need for a liberal approach for the admissibility of electronic contracts and electronic signatures. A case in point is section 15 of the South African Electronic Communications and Transactions Act 25 of 2002, which provides that the ‘rules of evidence must not be applied so as to deny the admissibility of a data message, in evidence on the mere grounds that it is constituted by a data message.’ It further mandates that information contained in data messages must ‘be given full evidential weight.’

Tuesday 11 December 2018

BUSINESS DAY

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Tuesday 11 December 2018

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.’

FCMB records fastest profit growth among peers …Return on average equity surges 105 percent in Q3 BALA AUGIE

first glimpse at First City Monument Bank (FCMB) Group Plc finances shows the lender’s third quarter profit expansion is the fastest among peer rivals, according to data gathered by Markets and Finance. Its net income surged by 107.38 percent in the first nine months through September 2018, this compares with Fidel-

ity Bank’s net income increase of 24.12 percent; Stanbic IBTC Holdings, 59.25 percent;Union Bank, 18.75 percent; and Sterling Bank, 39.45 percent. Also, FCMB’s return on average equity (ROAE) surged by 105 percent as at September 2018, the fastest growth among Tier 2 lenders in Africa’s largest economy. An investor could conclude that the management and board of directors of FCMB are above average at using the company’s assets to create

profits. This is unsurprising as the lender’s digital services and subsidiaries are contributing to group revenue. For instance, the number of Point of Sales (POS) transactions were up 19 percent to 22.81 million in September 2018 as against 19. 22 million as at December 2017, 8.66 million in December 2016, and 4.37 million in December 2015. What is more, Value of POS transaction rose by 15 percent to N196.11 billion as at Decem-

Ladi Balogun, CEO, FCMB Group Plc

ber 2018, N171.14 billion in December 2017, N96.45 billion in December 2016, and N47.42 billion in December 2015. The lender has good asset quality, thanks to an excellent risk management strategy as it continues to use its cost control mechanism in curtailing costs. Growth in gross earnings supported by Non interest Income Gross earnings for the third quarter of 2018 increased by 11.83 percent to N132.87 billion from N118.81 billion as at September 2017; primarily driven by a 77.31 percent increase in Non Interest income(NIR) to N33.02 billion from N18.62 billion over the same period. The growth in non interest income was due to trading income, fees and commission income, and foreign exchange income that surged by 31.70 percent, 165.51 percent, and 906.80 percent respectively. Trading income got a boost from government backed securities. Net interest income grew marginally by 6.67 percent to N53.23 billion in the period under review from N49.90 billion the previous year; largely due to reduction in cost of funds from growth in low-cost deposits. Interest expense reduced by 9.03 percent to N42.18 billion in the period under review from N46.37 billion the previous year; compelled mainly by a slow growth in interest expense on customer deposit and debt securities issued and a reduction in borrowing. Increased Non-Interest Income and FX gains underpins profit

BD MARKETS + FINANCE Analysts: BALA AUGIE

FCMB’s pretax profit surged by 115.78 percent to N14.76 billion in September 2018 from N6.84 billion the previous year. The increase at the bottom line was largely driven by an uptick in non interest income and an upsurge in foreign exchange gains. Foreign exchange trading income surged by 421.71 percent to N1.94 billion in September 2018 from N368.17 million the previous year while foreign exchange gains surged by 692.36 percent to N10.38 billion from N1 billion as at September 2017. FCMB’s total operating expenses were up 15.34 percent to N56.87 billion in September 2018 as against N49.30 billion the previous year; the growth in operating expenses were driven by an increase in Asset Management Corporation Of Nigeria (AMCON) charges, brand awareness and expenses on alternate channels development. Bank performances improves efficiency ratio FCMB is able to turn each Naira invested in revenue generating in higher profit as net profit margin increased to 8.51 percent in September 2018 as against 4.59 percent as at September 2017. Furthermore, the lender is able to utilize shareholders’ resources in generating higher profit as return on average equity (ROAE) moved to 8.20 percent in the period under review compared to 4.0 percent the previous year. Return on average assets (ROAA) followed the same growth trajectory, it increased to 1.20 percent in the period

under review from 0.60 percent the previous year. Cost to income (CIR) ratio fell to 65.90 percent in the period under review from 71.90 percent as at September 2017. A lower CIR means a lender is efficient in curtailing cost while growing profit. While FCMB’s None performing Loans (NPLs) of 5.1 percent is slightly above the 5 percent regulatory threshold, the lender cost of risk (COR) fell to 1.90 percent in September 2018 from 2.10 percent the previous year. The YoY decline in COR is due to improved recoveries, which is expected to be sustained in the subsequent period. Growth in deposits buoy balance sheet FCMB’s total assets increased by 13.80 percent to N1.29 trillion in the period under review from N1.13 trillion the previous year; supported by 19 percent YoY growth in deposits. Total loans and advances to customers fell by 8.20 percent to N601.85 billion in September 2018 from N655.46 billion as at September 2017. Total deposits grew by 18.80 percent to N755.89 billion in September 2018 from N636.71 billion the previous year; driven by growth in CASA deposits, as a result of continued focus on retail banking. Low-cost deposits contributed 67 percent to the lender’s total deposits. Historical Background FCMB Group Plc’s roots date back to 1977, with the formation of City Securities Limited (CSL), a stockbroking and issuing house and registrar business. CSL rapidly climbed the league of issuing houses and brokers between 1977 and 1982, handling the listings and initial public offers of many of the leading blue-chip companies on the Nigerian Stock Exchange (NSE). First City Merchant Bank Limited was established in 1982 with seed capital from the success of CSL. It began operations as a licensed deposit taker and merchant bank on 11 August, 1983 assuming the corporate finance and issuing house activities of CSL and becoming the first Nigerian merchant bank to be established without government or international support

Tuesday 11 December 2018

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AVIATION

GUIDE

BUSINESS DAY

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American Express Global Business Travel targets double digits billion turnover in 2019 Stories by IFEOMA OKEKE

he American Express Global Business Travel, a multinational organisation providing innovative payment, travel and expenses management solutions for individuals and businesses of all sizes is targeting double digits billion turnovers in 2019 from its operations in Nigeria. This target is coming at a time when the organisation has invested in technology solutions that promises to disrupt Nigeria’s travel market, just as it is set to acquire HRG, another global travel management company. Speaking during the American Express Global Business Travel’s client forum and travel fair in Lagos, Amit Bapat, its chief finance officer told BusinessDay that next year, the organisation will be targeting double

digit billion turnover. According to him, “With HRG, another travel management company being a subsidiary of American Express Global Business Travel, all the global clients will be added to our current clients. The acquisition will be in the first quarter of 2019 and that shift is already in place now. We are looking forward to a beautiful year. Bapat noted that the company which was formed in 2006, is actually growing as it serves almost all companies that listed on the Stock Exchange with global presence. He said beyond selling tickets, the organisation offers diverse services ranging from advisory, visas, hotels, transport, security and transit visas, amongst others. Also speaking at the event, John Adebanjo, chairman, American Express Global Business Travel in Nigeria, said the economy of Nigeria has stabilised and this means more businesses for the organisation,

ICAO commissions FAAN ASTC as authority signs MoU with British Government

he International Civil Aviation Organization (ICAO), last week inaugurated the ICAO Aviation Security Training Centre (ASTC) at the Federal Airports Authority of Nigeria (FAAN) training school at the Murtala Muhammed Airport, Lagos, as it handed a Certificate of Recognition to the Authority. In the same development, FAAN signed a Memorandum of Understanding (MoU) on Aviation Security with the British government in a bid to further aid manpower development in the sector. Speaking at the inauguration ceremony, Saleh Dunoma, managing director of FAAN, said the objective of the centre is to contribute to the development of manpower, adding that it is also expected to meet the training needs of the West Africa region and even beyond. “It will provide opportunity to handle all aviation security training in West Africa and other countries”, he said. Also speaking, Muhtar Usman, director general, Nigerian Civil Aviation Authority (NCAA), said the endorsement of the school by ICAO showed that FAAN was ready to contribute to the ICAO global aviation security

training programme. According to him, “the request for the designation of FAAN AVSEC Training school as n ICAO Aviation Security Training Centre was made on June 8, 2017 after which an evaluation by ICAO was conducted in May 2018 by the Regional Security Officer for Western and Central African Office (WACAF) and under 24 months, the request was granted.” While thanking ICAO for the privilege, Usman said the reason for the request for an ASTC was purely for the provision of VSEC training courses to cater for the English speaking states in the West Africa Sub-region. “In furtherance of our position on this request, I wish to inform ICAO that presently in Nigeria, there are five certified ICAO AVSEC Instructors and over 60 qualified national AVSEC instructors that can be of service at the ASTC. “It is hoped that the designation of the FAAN training school as an ICAO ASTC will attract patronage from the airport communities of the West Africa sub-region and its environs thereby contributing to the development and improvement of aviation security training in the region and elsewhere,” he said.

adding that they have been able to come up with new products to benefit customers. “We have seen a massive growth in our businesses, which is an indication that the economy is doing well. This means that the companies that we service have confidence in the system. We service clients from oil and gas, discos and hotels amongst others. We are the largest business travel provider in the industry today,” Adebanjo added. Speaking on the reason for putting

up the client forum, he explained that the company gathers its clients together and share with them the businesses they have done during the year, its successes and projections. On its acquisition of HRG, he said, “We acquired a new group called HRG, to reduce the cost of business travel, which is very key to us.” Claude Vankeirsbilck, chief operating officer of American Express Global Business Travel told BusinessDay that the main focus on the business is being able to offer technology

solutions to its customers that will disrupt the market in Nigeria on a business travel point of view. According to Vankeirsbilck, “We already launched a project to implement our own technology solutions which we developed in South Africa and it has become a market leading technology solution in South Africa and I think there is a huge opportunity for that similar technology in Nigeria. Essentially it has been built by Africans for Africa and I think it will be great for the market. “It is on that foundation that we think we can achieve the great target of turnover. We also have a situation where we are taking a number of customers who are migrating across to us because of the American Express Global Business Travel and the HRG merger that happened and Nigeria is one of the first markets where that migration is taking place. We have been acquiring new customers that will help us achieve those targets.”

Dana Air wins best domestic airline award 2018

ne of Nigeria’s leading airlines Dana Air has won the award for Africa’s Best Airline of the year 2018 in the domestic operations category, at the Development in Africa Merits Award (DAMA) held recently at Sheraton Hotels, Lagos. DAMA awards is a yearly conference and awards ceremony organized annually by Delta Business School Limited to recognize Corporate organizations and Individuals who have contributed immensely to the development of Africa through their service, humanitarian activities, business model and creativity. The merit award also celebrates leading businesses and academics in Nigeria and Africa who have raised the bar, and setting new standards through creative and innovative products, ideas and services. The Media and Communications Manager of Dana Air, Kingsley Ezenwa , who received the award on behalf of the airline said: ‘We are honoured to be recognized as Africa’s Best Airline in the domestic category. This award is a confirmation that Africa and indeed the world is watching and we are glad that we are making Nigeria proud with our customer-centric products geared towards improving customer experience and value added services.’’

He noted that ‘exceeding the flying aspirations our guests, and giving back to the society in which we operate are part of our secrets of success having flown for 10 years in Nigeria, and this award is a motivation for us to continue to raise the bar of our operational efficiency, safety and service delivery. ‘’ He further stated that ‘our commitment to our core values, passion for

the industry and our superior understanding of the flying public and the industry have kept us going despite the challenges, and our mission is to constantly earn the loyalty and respect of our customers by consistently demonstrating our commitment to service, and providing affordable regional air transport services that focus on innovation, quality and service excellence.’’

Gbenga Oyebode, Guest Speaker; Bukola Ifemade, chairman Lagos Area Council of the Nigerian Council of Registered Insurance Brokers; Abiodun Ifemade, her husband; and Shola Tinubu, the president, NCRIB; after the investiture of Ifemade as the chairman of LAC.

BUSINESS DAY

Tuesday 11 December 2018

BUSINESS DAY

Tuesday 11 December 2018

Live @ The Exchanges Top Gainers/Losers as at Monday 10 December 2018 GAINERS Company

Market Statistics as at Monday 10 December 2018

LOSERS Opening

Closing

Change

Opening

Closing

Change

NESTLE

N1549

N1485

-64

MRS

N28.55

N25.7

-2.85

MOBIL

N174.8

N160

-14.8

N82.6

N80.4

-2.2

N80

N78

-2

STANBIC

N48

N46.05

-1.95

N10

N9.3

-0.7

DANGCEM

N186.9

N185

-1.9

VALUE (N billion)

N46.5

N46

-0.5

N11.4

N10.3

-1.1

MARKET CAP (N Trn

NB UACN STANBIC

Company

ASI (Points) DEALS (Numbers)

...Investors lose N93bn

tock trading on the Nigerian Stock Exchange (NSE) closed in red on Monday December 10 as investors negative sentiment towards equities persisted. Only 14 stocks gained against 26 losers at the sound of closing gong on the Exchange. The NSE All Share Index (ASI) depreciated by 0.82 percent to close at 30,614.73 points as against 30,866.82 points recorded the preceding trading day. Likewise, the value of listed equities decreased from preceding trading day high of N11.269 trillion to N11.176trillion representing N93billion loss. The stock market’s year-to-date (YTD) returns prinited further negative at -19.95percent. Equity traders in 3,193 deals exchanged 164,582,396 units valued at N1.666billion. Diamond Bank Plc, FBN

Holdings Plc, Sterling Bank Plc, UBA Plc and Zenith Bank Plc were actively traded stocks on Monday at the Nigerian Stock Exchange. Forte Oil Plc recorded the highest price increase from N18 to N19.15, adding N1.15 or 6.39percent. Okomu Oil Palm Plc followed after its share price increased from N72 to N73, adding N1 or 1.39percent. Dangote Cement Plc

stock price increased from N184 to N184.2, up 20kobo or 0.11percent. Vitafoam Nigeria Plc stock increased from N3.26 to N3.44, up 18kobo or 5.52percent; while UBA Plc stock price increased from N7.5 to N7.65, adding 15kobo or 2percent. Nestle Nigeria Plc recorded the biggest decline after its share price dropped from N1549 to N1485, down by N64 or

3,193.00

VOLUME (Numbers)

Stock market opens week in red Stories by Iheanyi Nwachukwu

30,614.73

4.13percent; Mobil Oil Nigeria Plc stock price decreased from N174.8 to N160, losing N14.8 or 8.47percent; Nigerian Breweries Plc followed after its share price lost N2 or 2.50kobo, from N80 to N78. UAC of Nigeria Plc declined from N10 to N9.3, losing 70kobo or 7percent; Stanbic IBTC Holdings dipped from N46.5 to N46, losing 50kobo or 1.08percent.

164,582,396.00 1.666 11.176

CSCS gets GLEIF accreditation to perform all LOU services

he Central Securities Clearing System (CSCS) Plc has been accredited by the Global Legal Entity Identifier Foundation (GLEIF) to perform all Local Operating Unit (LOU) services in Nigeria. This was contained in a letter dated November 26, 2018 addressed to the company. The accreditation followed an inspection visit by a team of GLEIF representatives. The letter signed by Stephan Wolf, the Chief Executive Officer of GLEIF, read in part “please be advised that CSCS Nigeria is being granted authorisation to perform all LOU services as defined in the Master Agreement and its Appendices. “As previously stated, please be assured that the entire GLEIF organization is here to assist and support your efforts and bringing continuous improvement to the entire GLEIS system by facilitating a dedication to “best of breed” practices and methodologies in service and operations”. In his reaction, Haruna Jalo-Waziri, the Managing Director/Chief Executive Officer, CSCS Plc, said “we are delighted at this accreditation by

GLEIF. CSCS is the only entity in Nigeria that can perform this function. The Legal Entity Identifier (LEI) would enable firms to strengthen the accuracy, integrity, and aggregation of data across entities and subsidiaries and thus improve counterparty risk data and management, as well as supporting enhanced data modeling and analysis”. Jalo-Waziri added that “LEI system will allow precise and accurate regulatory reporting, as well as support the production of data for recovery and resolution planning. This will inherently lead to operational efficiency that would allow for easy reconciliation of data. I encourage all business entities and organizations to acquire the LEI code or apply to CSCS for renewal if they have already registered”. Owing to its effectiveness in other jurisdictions, the LEI code is a mandatory global requirement that enables market operators to perform capital market functions; this will further deepen the Nigerian capital market and provide veritable identification of organisations, therefore compliance with this requirement.

from Stanbic IBTC Pensions Limited (accrued over two years), augmented the impact of the high underwriting expenses on profitability. In FY 2017, Linkage recorded posttax return on average assets (ROA) and post-tax return on average equity (ROE) of 13.3percent and 15.8percent respectively. While Agusto & Co considers the Insurer’s profitability ratios to be good by industry standard, they are concerned about the vulnerability of income to dividend from an investee company. In the same vein, weak underwriting income re-

mains a rating negative. The Nigerian Insurance industry has contended with multiple challenges which have been aggravated by the lingering macroeconomic slowdown. As a result, the insurance penetration ratio is below 0.5percent and premium per capita is one of the lowest in Africa, according to the Agusto & Co 2018 insurance Industry report. In spite of growing confidence in insurance products, the appetite of Nigerians for insurance remains abysmal. Nonetheless, potentials for the industry remain strong.

Agusto assigns ‘A-’ rating to Linkage Assurance …based on Capitalisation, investment returns, liquidity profile

igeria’s first credit Rating Agency and a pan African leader in credit reports, Agusto & Co limited has just assigned an ‘A-’ rating to Linkage Assurance Plc. The rating assigned to Linkage Assurance Plc is reflective of an insurer with good financial condition and strong capacity to meet its obligations as and when they fall due. The rating expires on 30 June 2019. The rating is underpinned by good capitalisation, good investment return and good liquidity profile. Linkage’s invest-

ment in Stanbic IBTC Pensions Limited (the largest pension fund administrator) which accounted for 50percent of its investment portfolio has supported the Insurer’s performance and liquidity position. The rating is however constrained by elevated underwriting expenses, sub-par risk management, concentration in the investment portfolio & investment income, sub-par underwriting performance and the fragile state of the economy. As at 31 December 2017, Linkage’s shareholders’ funds stood at ₦20 billion, significantly

above the regulatory minimum for non-life insurers. Retained earnings also swung to positive territory on account of high profit retention rate. This should pave the way for dividend payment and strengthen relationship with shareholders. The Insurer prioritises liquid assets in its investment management in a bid to maintain strong ability to meet obligations as and when they fall due. As a result, money market securities which are highly liquid represented about 45.5percent of the investment portfolio as at 31 December 2017.

As at the same date, liquid assets accounted for 39.5percent of total assets and covered outstanding claims 9.6 times. We consider the Insurer’s liquidity to be adequate for current business risks. During the financial year ended 31 December 2017, Linkage’s performance in the core insurance business was constrained by high underwriting expenses. As a result, underwriting profit margin plummeted to 0.1percent from 14percent in the prior year. The Insurer’s investment income which was bolstered by dividend

BUSINESS DAY

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Tuesday 11 December 2018

Live @ the Stock exchange Prices for Securities Traded as of Monday 10 December 2018 Company

Market cap(nm)

Price (N)

Change

Trades

Volume

Company

Market cap(nm)

Price (N)

Change

Trades

Volume

PRICES FOR MAIN BOARD SECURITIES (Equities) BANKING ACCESS BANK PLC. 218,406.19 7.55 1.34 66 3,033,383 UNITED BANK FOR AFRICA PLC 261,625.57 7.65 2.00 104 8,929,531 723,689.18 23.05 -2.12 257 8,922,806 ZENITH BANK PLC 427 20,885,720 OTHER FINANCIAL INSTITUTIONS FBN HOLDINGS PLC 271,009.46 7.55 -0.66 179 28,145,111 179 28,145,111 606 49,030,831 BUILDING MATERIALS DANGOTE CEMENT PLC 3,138,861.46 184.20 0.11 70 640,021 LAFARGE AFRICA PLC. 106,683.17 12.30 -1.60 129 1,998,883 199 2,638,904 199 2,638,904 EXPLORATION AND PRODUCTION SEPLAT PETROLEUM DEVELOPMENT COMPANY PLC 352,419.45 598.90 - 7 6,283 7 6,283 7 6,283 812 51,676,018 CROP PRODUCTION FTN COCOA PROCESSORS PLC 440.00 0.20 - 0 0 OKOMU OIL PALM PLC. 69,635.43 73.00 1.39 12 99,212 PRESCO PLC 62,150.00 62.15 - 7 21,000 19 120,212 FISHING/HUNTING/TRAPPING ELLAH LAKES PLC. 511.20 4.26 - 0 0 0 0 LIVESTOCK/ANIMAL SPECIALTIES LIVESTOCK FEEDS PLC. 1,410.00 0.47 -9.62 13 216,066 13 216,066 32 336,278 DIVERSIFIED INDUSTRIES A.G. LEVENTIS NIGERIA PLC. 714.77 0.27 - 1 4,267 JOHN HOLT PLC. 155.66 0.40 - 4 42,023 1,903.99 2.93 - 1 321 S C O A NIG. PLC. TRANSNATIONAL CORPORATION OF NIGERIA PLC 45,932.23 1.13 -0.88 50 3,629,517 U A C N PLC. 26,796.06 9.30 -7.00 32 240,850 88 3,916,978 88 3,916,978 BUILDING CONSTRUCTION ARBICO PLC. 711.32 4.79 - 1 300 1 300 INFRASTRUCTURE/HEAVY CONSTRUCTION JULIUS BERGER NIG. PLC. 27,720.00 21.00 - 10 74,731 165.00 6.60 - 0 0 ROADS NIG PLC. 10 74,731 REAL ESTATE DEVELOPMENT UACN PROPERTY DEVELOPMENT COMPANY PLC 3,845.63 1.48 - 4 10,156 4 10,156 REAL ESTATE INVESTMENT TRUSTS (REITS) SKYE SHELTER FUND PLC 1,900.00 95.00 - 0 0 11,300.89 45.20 - 0 0 UNION HOMES REAL ESTATE INVESTMENT TRUST (REIT) UPDC REAL ESTATE INVESTMENT TRUST 21,612.98 8.10 - 1 122 1 122 16 85,309 AUTOMOBILES/AUTO PARTS DN TYRE & RUBBER PLC 954.53 0.20 - 0 0 0 0 BEVERAGES--BREWERS/DISTILLERS CHAMPION BREW. PLC. 12,448.90 1.59 - 3 34,000 GOLDEN GUINEA BREW. PLC. 242.22 0.89 - 0 0 GUINNESS NIG PLC 159,897.95 73.00 - 27 52,894 INTERNATIONAL BREWERIES PLC. 253,148.13 29.45 - 8 195,249 NIGERIAN BREW. PLC. 623,758.36 78.00 -2.50 67 2,681,163 105 2,963,306 FOOD PRODUCTS DANGOTE FLOUR MILLS PLC 31,500.00 6.30 0.79 37 460,848 DANGOTE SUGAR REFINERY PLC 162,000.00 13.50 -1.85 59 971,979 FLOUR MILLS NIG. PLC. 82,007.59 20.00 -0.99 53 556,847 HONEYWELL FLOUR MILL PLC 8,723.22 1.10 -4.35 23 849,304 MULTI-TREX INTEGRATED FOODS PLC 1,340.10 0.36 - 0 0 N NIG. FLOUR MILLS PLC. 855.36 4.80 - 2 9,013 NASCON ALLIED INDUSTRIES PLC 47,424.95 17.90 -0.56 19 395,276 UNION DICON SALT PLC. 3,676.41 13.45 - 0 0 193 3,243,267 FOOD PRODUCTS--DIVERSIFIED CADBURY NIGERIA PLC. 17,749.01 9.45 - 17 64,551 NESTLE NIGERIA PLC. 1,177,094.53 1,485.00 -4.13 58 80,850 75 145,401 HOUSEHOLD DURABLES NIGERIAN ENAMELWARE PLC. 1,680.31 22.10 - 1 1,320 VITAFOAM NIG PLC. 3,585.75 3.44 5.52 9 204,321 10 205,641 PERSONAL/HOUSEHOLD PRODUCTS P Z CUSSONS NIGERIA PLC. 43,675.25 11.00 0.92 39 493,900 UNILEVER NIGERIA PLC. 223,480.71 38.90 - 27 151,167 66 645,067 449 7,202,682 BANKING DIAMOND BANK PLC 23,855.20 1.03 0.98 346 44,920,331 ECOBANK TRANSNATIONAL INCORPORATED 284,418.04 15.50 0.32 31 1,915,830 FIDELITY BANK PLC 55,052.11 1.90 -1.04 80 5,414,867 GUARANTY TRUST BANK PLC. 1,022,733.48 34.75 -0.43 335 8,020,869 JAIZ BANK PLC 12,964.27 0.44 - 1 111,686 SKYE BANK PLC 10,687.83 0.77 - 0 0 STERLING BANK PLC. 50,095.33 1.74 3.57 185 15,410,097 155,796.03 5.35 - 70 1,989,923 UNION BANK NIG.PLC. 8,065.64 0.69 - 4 33,824 UNITY BANK PLC WEMA BANK PLC. 20,830.21 0.54 -1.82 26 1,376,020 1,078 79,193,447 INSURANCE CARRIERS, BROKERS AND SERVICES AFRICAN ALLIANCE INSURANCE PLC 4,117.00 0.20 - 0 0 AIICO INSURANCE PLC. 4,643.24 0.67 -4.29 31 2,315,165 AXAMANSARD INSURANCE PLC 21,000.00 2.00 - 2 4,101 CONSOLIDATED HALLMARK INSURANCE PLC 2,660.00 0.38 - 2 197,750 CONTINENTAL REINSURANCE PLC 18,256.03 1.76 0.57 24 1,007,680 CORNERSTONE INSURANCE PLC 2,945.90 0.20 -9.09 4 200,400 GOLDLINK INSURANCE PLC 2,411.47 0.53 - 0 0 GREAT NIGERIAN INSURANCE PLC 1,913.74 0.50 - 0 0 GUINEA INSURANCE PLC. 1,535.00 0.25 - 2 4,200 INTERNATIONAL ENERGY INSURANCE PLC 487.95 0.38 - 0 0 LASACO ASSURANCE PLC. 2,123.80 0.29 3.45 12 693,000 LAW UNION AND ROCK INS. PLC. 2,019.28 0.47 - 4 72,000 LINKAGE ASSURANCE PLC 4,880.00 0.61 - 0 0 MUTUAL BENEFITS ASSURANCE PLC. 1,680.00 0.21 -8.70 6 383,300 NEM INSURANCE PLC 12,409.18 2.35 - 9 170,000 NIGER INSURANCE PLC 1,547.90 0.20 - 3 69,727 PRESTIGE ASSURANCE PLC 2,529.80 0.47 -4.08 8 402,716 REGENCY ASSURANCE PLC 1,333.75 0.20 -4.76 8 376,880 SOVEREIGN TRUST INSURANCE PLC 1,668.16 0.20 - 3 52,000 STACO INSURANCE PLC 4,483.72 0.48 - 0 0 STANDARD ALLIANCE INSURANCE PLC. 2,582.21 0.20 - 1 620 SUNU ASSURANCES NIGERIA PLC. 2,800.00 0.20 - 0 0 UNIC DIVERSIFIED HOLDINGS PLC. 516.46 0.20 - 0 0 UNIVERSAL INSURANCE PLC 3,200.00 0.20 - 0 0 VERITAS KAPITAL ASSURANCE PLC 2,912.00 0.21 - 0 0 WAPIC INSURANCE PLC 5,353.10 0.40 - 20 169,735 139 6,119,274 MICRO-FINANCE BANKS FORTIS MICROFINANCE BANK PLC 11,799.67 2.58 - 0 0 NPF MICROFINANCE BANK PLC 3,315.62 1.45 - 10 169,147

10 169,147 MORTGAGE CARRIERS, BROKERS AND SERVICES ABBEY MORTGAGE BANK PLC 4,452.00 1.06 - 0 0 7,370.87 0.50 - 0 0 ASO SAVINGS AND LOANS PLC INFINITY TRUST MORTGAGE BANK PLC 5,922.05 1.42 - 0 0 5,664.87 0.50 - 0 0 RESORT SAVINGS & LOANS PLC UNION HOMES SAVINGS AND LOANS PLC. 2,949.22 3.02 - 0 0 0 0 OTHER FINANCIAL INSTITUTIONS AFRICA PRUDENTIAL PLC 7,440.00 3.72 0.27 42 774,925 29,997.51 5.10 - 5 88,053 CUSTODIAN INVESTMENT PLC 660.00 0.44 - 0 0 DEAP CAPITAL MANAGEMENT & TRUST PLC FCMB GROUP PLC. 29,704.07 1.50 -0.66 82 3,979,968 411.91 552.20 - 0 0 NIGERIA ENERYGY SECTOR FUND ROYAL EXCHANGE PLC. 1,029.07 0.20 - 10 1,391,448 465,229.02 46.00 -1.08 21 2,106,453 STANBIC IBTC HOLDINGS PLC UNITED CAPITAL PLC 16,920.00 2.82 0.36 44 1,011,118 VALUEALLIANCE VALUE FUND 3,312.39 103.20 - 0 0 204 9,351,965 1,431 94,833,833 HEALTHCARE PROVIDERS EKOCORP PLC. 1,680.29 3.37 - 0 0 888.28 0.25 - 0 0 UNION DIAGNOSTIC & CLINICAL SERVICES PLC 0 0 MEDICAL SUPPLIES MORISON INDUSTRIES PLC. 544.04 0.55 - 1 7,910 1 7,910 PHARMACEUTICALS EVANS MEDICAL PLC. 366.17 0.50 - 0 0 7,350.00 4.90 - 2 30,000 FIDSON HEALTHCARE PLC GLAXO SMITHKLINE CONSUMER NIG. PLC. 17,340.21 14.50 - 15 46,573 MAY & BAKER NIGERIA PLC. 2,352.00 2.40 - 8 58,510 984.11 0.57 -1.72 9 794,900 NEIMETH INTERNATIONAL PHARMACEUTICALS PLC NIGERIA-GERMAN CHEMICALS PLC. 556.71 3.62 - 0 0 329.57 1.52 - 0 0 PHARMA-DEKO PLC. 34 929,983 35 937,893 COMPUTER BASED SYSTEMS COURTEVILLE BUSINESS SOLUTIONS PLC 710.40 0.20 - 0 0 0 0 COMPUTERS AND PERIPHERALS OMATEK VENTURES PLC 1,470.89 0.50 - 0 0 0 0 IT SERVICES CWG PLC 6,413.06 2.54 - 0 0 NCR (NIGERIA) PLC. 680.40 6.30 - 0 0 381.11 0.77 - 1 7,182 TRIPPLE GEE AND COMPANY PLC. 1 7,182 PROCESSING SYSTEMS CHAMS PLC 1,033.13 0.22 - 0 0 E-TRANZACT INTERNATIONAL PLC 16,590.00 3.95 - 0 0 0 0 1 7,182 BUILDING MATERIALS BERGER PAINTS PLC 1,883.85 6.50 - 5 13,609 22,050.00 31.50 - 7 14,867 CAP PLC CEMENT CO. OF NORTH.NIG. PLC 20,735.18 16.50 - 15 38,182 633.11 0.30 - 0 0 FIRST ALUMINIUM NIGERIA PLC 313.43 0.59 - 0 0 MEYER PLC. PORTLAND PAINTS & PRODUCTS NIGERIA PLC 1,999.41 2.52 - 0 0 PREMIER PAINTS PLC. 1,279.20 10.40 - 0 0 27 66,658 ELECTRONIC AND ELECTRICAL PRODUCTS AUSTIN LAZ & COMPANY PLC 2,256.91 2.09 - 0 0 CUTIX PLC. 3,469.80 1.97 - 10 163,161 10 163,161 PACKAGING/CONTAINERS BETA GLASS PLC. 34,148.09 68.30 - 5 17,460 GREIF NIGERIA PLC 388.02 9.10 - 1 500 6 17,960 AGRO-ALLIED & CHEMICALS NOTORE CHEMICAL IND PLC 100,754.14 62.50 - 0 0 0 0 43 247,779 CHEMICALS B.O.C. GASES PLC. 1,752.39 4.21 - 0 0 0 0 METALS ALUMINIUM EXTRUSION IND. PLC. 1,803.64 8.20 - 1 200 1 200 MINING SERVICES MULTIVERSE MINING AND EXPLORATION PLC 852.39 0.20 - 0 0 0 0 PAPER/FOREST PRODUCTS THOMAS WYATT NIG. PLC. 50.60 0.23 - 0 0 0 0 1 200 ENERGY EQUIPMENT AND SERVICES JAPAUL OIL & MARITIME SERVICES PLC 1,252.54 0.20 - 7 627,300 7 627,300 INTEGRATED OIL AND GAS SERVICES OANDO PLC 62,157.06 5.00 -2.91 42 681,203 42 681,203 PETROLEUM AND PETROLEUM PRODUCTS DISTRIBUTORS 11 PLC 57,695.24 160.00 -8.47 41 175,392 CONOIL PLC 15,613.92 22.50 - 13 18,001 ETERNA PLC. 5,477.41 4.20 - 12 161,668 FORTE OIL PLC. 24,942.51 19.15 6.39 47 1,729,253 MRS OIL NIGERIA PLC. 7,833.01 25.70 - 18 38,888 TOTAL NIGERIA PLC. 67,225.32 198.00 - 22 51,149 153 2,174,351 202 3,482,854 ADVERTISING AFROMEDIA PLC 2,219.52 0.50 - 0 0 0 0 AIRLINES MEDVIEW AIRLINE PLC 18,818.75 1.93 - 0 0 0 0 AUTOMOBILE/AUTO PART RETAILERS R T BRISCOE PLC. 447.02 0.38 - 1 2,488 1 2,488 COURIER/FREIGHT/DELIVERY RED STAR EXPRESS PLC 2,593.79 4.40 - 1 550 TRANS-NATIONWIDE EXPRESS PLC. 300.06 0.64 8.47 5 310,350 6 310,900 HOSPITALITY TANTALIZERS PLC 674.44 0.21 - 0 0 0 0 HOTELS/LODGING CAPITAL HOTEL PLC 4,801.22 3.10 - 0 0 IKEJA HOTEL PLC 3,887.35 1.87 - 3 942 TOURIST COMPANY OF NIGERIA PLC. 7,862.53 3.50 - 0 0 TRANSCORP HOTELS PLC 46,362.46 6.10 - 0 0 3 942 MEDIA/ENTERTAINMENT DAAR COMMUNICATIONS PLC 5,280.00 0.44 - 0 0 0 0 PRINTING/PUBLISHING ACADEMY PRESS PLC. 302.40 0.50 - 1 2,800 LEARN AFRICA PLC 972.03 1.26 - 13 137,591

Tuesday 11 December 2018

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Tuesday 11 December 2018

Electoral Act: Agbakoba urges NASS to override Buhari Iniobong Iwok

ormer Chairman of the Nigeria Bar Association (NBA), Olisa Agbakoba, has urged the National Assembly to override President Muhammadu Buhari and pass the electoral bill into law. In a release to the media in Lagos on Monday, Agbakoba noted that the passage of the bill will improve the credibility of the election and give legal basis for Independent National Electoral Commission (INEC) to deploy electronic technology in the conduct of the next year’s general election. “The decision of the President to withhold assent in respect of a bill to enact a law to amend the Electoral Act makes no sense. The final draft bill considered by NASS, was agreed with the

Olisa Agbakoba

President, precisely to avoid challenges, such as now occurred.

Why Atiku remains best man to lead Nigeria - Support group

L-R: Nze Jude; Stella Njideka Ezeh, founder and national coordinator of Atikufied support group; Paulinus Uche; Onamh Angela and others, during the group’s awareness summit held in Lagos

in critical areas of political leadership having been a former vice president. If you look at his blue printprint, it is aimed at taking Nigeria out of the doldrums. His choice of Peter Obi, who is a successful businessman is laudable, Obi’s zero corruption record as governor is yet to be beaten,” Ezeh said. Also speaking at the summit, Lagos State coordinator of the group, Paulinus Uche, said that the group had members and chapters across the 20 local government areas of the state, promising that the group would give four million votes in the state toward Atiku’s electoral success.

is simply incorrect and flies in the face of INEC’s announcement that it will not use Incident Forms or manual voting in 2019 elections,” he stated. According to him, “INEC is ready to deploy electronic technology for 2019 elections, and only requires that the Electoral Act provides a legal framework. “The 2018 Amendments will help to improve the credibility of our elections and also give legal basis for INEC to deploy electronic technology in 2019 elections, following doubts cast by the Supreme Court about the legality of the use of card readers because it was not provided in the old Electoral Act of 2010. Distinguished and Honourable Members of NASS, are pleased urged to override President and enact 2018 Electoral Act”.

Group urges FG not to fund 2019 elections with $322.5m Abacha loot IDRIS UMAR MOMOH, Benin

Iniobong Iwok

support group, ‘Atikutified’ has said that former vice president of Nigeria and presidential candidate of the main opposition, People’s Democratic Party (PDP), Atiku Abubakar’s, remained the best man for the top job in 2019. The group said that Atiku’s deep knowledge of the economy, vast political experience and promise to restructure the country qualified him as the best man to lead the country out of its current woes. Stella Njideka Ezeh, founder and national coordinator of Atikufied support group, stated this in Lagos during the group’s awareness summit held Lagos, noting that Atiku’s blueprint to diversify and reform the economy, invest in education and revamp the railway system would transform the country if elected into office. Ezeh added that Atiku’s choice of Peter Obi who had excelled as a businessman and governor of Anambra State as his running mate was an indication of his belief in generational shift and purposeful leadership for the country. “Atiku has been tested and trusted

“The President states that part of the reasons he has withheld

assent is to avoid confusion as to the applicable legal framework for 2019 elections and the administrative capacity of INEC to cope with the new Electoral Act, as it is all too close to 2019 elections,” he said. The legal luminary faulted the president’s decision to withhold assent to the electoral bill even when INEC had expressed its readiness to use card reader in the conduct of the general election, adding that President Buhari’s decision will create controversy and confusion in the polity, while further undermining the credibility of the general election. “The President claims that part of the reasons for withholding assent, is that INEC will not have enough time to become familiar with the 2018 Bill and that a new Act will generate confusion. This

Non-Governmental Organisation, Africa Network for Environment and Economic Justice (ANEEJ), has called on the Federal Government not to use fund meant for the implementation of Social Investment Programmes to finance the forthcoming 2019 general election. David Ugolor, executive director of the group, represented by Leo Atakpu, his deputy, made the call at the commemoration of 2018 International Human Rights Day on Monday in Benin-City with the theme, ‘Stand up for Human Rights’. Ugolor said the social investment programme fund should be protected and deployed fully to the targeted vulnerable citizens and groups. He noted that corruption affects human rights as well as the capacity of public institutions to fulfil their duty to respect and protect its citizens. While putting the debt profile of the country as at June at about $22.083 billion with 26 percent of the annual budget spent on debt servicing, he noted that the money could have been used to strengthen the health, education and transport sectors for the benefits of her citizens.

“This is a challenge that requires our collective efforts. We need to come out en masse to vote for leaders that would guarantee the fundamental human rights of Nigerians both at home and in the Diaspora”, he said. He however, enjoined Nigerians as the 2019 general election draws nearer to vote for the right candidates who would bring about good governance, transparency and accountability in the leadership of the country. He also added that there are about 30 human rights declaration that are determined and for the welfare of the humans. Meanwhile, the NGO said it has deployed over 500 personnel to monitor the disbursement of the recovered $322.5 million of the late General Sani Abacha’s loot by the Federal Government to the poorest of the poor in the country. Ugolor, executive director of the group, said the decision was in line with the Memorandum of Understanding (MoU) the Federal Government signed with the Swiss government before the money was released. He made the disclosure during a lecture/rally to commemorate the 2018 World Anti-Corruption Day with the theme, ‘Corruption must not pay’, in Benin-City. He said 500 filed monitors, 11

supervisors and 22 deputies drawn from members of the Nigerian Network on Stolen Asset (NNAA) and other civil society organisations across the country were to fact-check the Conditional Cash Transfer (CCT) to the poorest of the poor in eleven states that are beneficiaries of the Federal Government Social Investment Programme. He said the monitors will be interfacing with about 300,000 beneficiaries of the federal empowerment programme in 16 states of the federation to ensure that the monthly N500 get to them directly. Ugolor, who commended the government and Switzerland for ensuring that civil society were part of the negotiation for the release of the late Sani Abacha loot assured that they will not betray the confidence reposed in them. ANEEJ boss, who lamented, the non-inclusion of Edo and other South-South states except Cross River State in the programme, noted that the non-inclusion of the states was occasioned by the failure of the various state governments to sign into the Nigeria Social Register. He however, appealed to Edo and other state governments in the South-South to sign into the initiative in order not to deprive their citizens from the from the programme.

We will defeat them in 2019 elections – Saraki tells party supporters …As Kwara PDP inaugurates 42-man campaign committee SIKIRAT SHEHU, Ilorin

he Senate President, Bukola Saraki has declared that the leaders of the People’s Democratic Party (PDP), in Kwara State have all it takes to win next year’s general election. Saraki said that the PDP would not only sweep the elections in Kwara but would also win the presidential election by the grace of God.

He asked his supporters not to be afraid of the use of federal might in the forthcoming general election, pointing out that he had confronted such situations in two previous elections and floored the incumbents. Saraki, who spoke at the inauguration of a 42-man Campaign Council for the state PDP at ABS Constituency Office, Ilorin, the state capital, pointed out that “we are in battle field” saying, that is what campaign is all about.

He recommended change in campaign method for the victory of the party in 2019”. The Senate President said while the 2019 election, like any other election, has its challenges, experience has shown that with the right tactics and strategies, the PDP will win the state again. “Don’t be afraid, don’t create fears in your heart, I have heard all the talks of the opposition about using federal might. But we have

seen it all. We saw it in 2003, we saw it in 2015 or don’t you know that they used federal might in 2015? In 2015, with federal might we defeated them. It was you people that God used then and in 2019 with those who have come to join us we will defeat them again.” He, however, enjoined members of the Campaign Council to demonstrate utmost faithfulness in the discharge of their duties to achieve the desired results.

Saraki recalled that the Mandate Office has been the platform for every electoral victory of the party since 2003 and expressed confidence that God is with his political structure to win the next poll again. “Every election has its challenges. But, we have what it takes to tackle it and once you are committed, victory is ours”, he said, and tasked the party on the need to implement a rigorous campaign to ensure everyone is reached.

Tuesday 11 December 2018

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BUSINESS DAY

Voter Education: Missing link in Nigeria’s electoral process

Electoral Commission (INEC), which has the statutory responsibility of educating the electorate on the forthcoming elections, is failing in this duty. But it is understandable why INEC is not educating Nigerian on the electoral process. “The commission is a stooge of the government in power and it should not be seen to working against its pay master”, Olufemi Kadri, a public affairs commentator, explained on phone. Continuing, he said, it is not difficult to understand why voter education is not happening in Nigeria’s electoral system. It is deliberate. The political class is not only predative, but also selfserving. As much as possible, they don’t want hold the electorate down and keep them in the dark

so that they can continue to exploit the political system”. Unarguably, politicians know that voter education is very essential in any democratic system as a proper orientation of the electorate on the essence of casting vote and getting involved in the democratic system of the country. More importantly, they also know that voter education brings about high level of motivation and encouragement in the electorate just as it makes them have confidence in government. Yet they don’t want this education to happen because that will work against their ill-conceived and ulterior motives. The implication of this, however, is that the political system is put under intense pressure and the electoral process remains warped, leading to high level voter apathy and the birth of an ‘arrangee’ government that cannot be said to be truly democratic. Lack of voter education is reason for the non-participation of a large army of youths of voting age in the country’s elections. This explains why on an election day, these youths take to playing football or drinking at beer parlour instead of going to voting centres to vote and elect their leaders. The wider implication of this is the emergence of charlatans, self-seekers, rent-takers and, in some cases, fraudsters who run governments that are inept, insensitive, visionless, clueless and impervious to criticism. Executive arrogance and impunity run through the entire administrative structures and the electorate are generally helpless because they did not elect those in government.

Atiku Abubakar, PDP presidential flag bearer and other stakeholders, have also insisted that restructuring Nigeria is required to enhance national integration and stability. While supporting restructuring, former president of the Institute of Directors, Chike Nwanze, put total expenditures of various arms of government in the last 17 years at N55.4 trillion but regretted that this huge figure is without much achievement, saying that any effort towards economic development cannot be achieved without restructuring of the country. Speaking on ‘Leadership question and challenges ahead’ at Nigerian Institute of Management, NIM, Nwanze said it is difficult to believe that such colossal amount of money has been spent in the last 17 years with continued poor state of infrastructure, services and quality of life in Nigeria as about 100 million Nigerians still live without electricity. Equipping Local governments

for bigger impact According to Nwanze, the current effort of government towards diversification of the economy is commended, but successful diversification, which is needed to achieve meaningful economic development, cannot be achieved without restructuring the country. “This is the challenge of leadership”. Under restructuring, Nigeria needs not only to empower local governments to be totally autonomous from states’ hold on them but should have more funds to execute needed projects. Administration through the grassroots, especially local governments, would be more effective instead of the top- down approach that Nigeria has witnessed for years and which is yet to yield the expected result. It is expected that local governments, working with communities, will assess needs, apply funds, execute projects and protect them with proper attention.

CHUKA UROKO

ducation, it is said, breaks ignorance and also liberates the mind. Education is a very important component of an individual’s and even organisation’s development. In every field of human activity and in all processes, including elections, leading to man’s development and progress, education is important. In Africa, democracy is still tottering because elections and electoral processes, which are the hallmark of democracy, are largely tainted, not credible, free and fair, and in some cases, fraught with violence. In Nigeria, the continent’s big brother, the story is not different and the reason is not far-fetched. The voter is not educated which is a missing link in the country’s electoral process. Voter education means providing citizens of a democracy with basic information about participating in elections. In an electoral system, it is important that citizens know how their votes will contribute to the final result of an election. An appropriate voter education should provide citizens with sound knowledge of elections and, unlike what obtains in Nigeria, the focus should be on how to vote rather than who to vote for. By February 2019, which is about 60 days away, Nigeria will be holding general elections and apparently, nobody is talking to anybody. Voter education which ought to have started, at least two months ago, is not happening

anywhere in the country. If any, it must be on how to vote for a particular individual, rig elections by whatever means possible, or cause trouble if the result goes against a preferred candidate. Writing on ‘INEC and Voter Education’ in the recent edition of The Pointer magazine, Efe Adams notes, “voters’ education ensures that voters are ready, willing, and able to participate fully in the election process. Voters’ education is essential in ensuring that voters are well-informed and can effectively exercise their voting rights and express their political will on election day”. In mature democracies, there are always government departments and agencies that focus on voter education. This calls to mind an agency like MAM-

SER— an acronym for Mass Mobilization for Self Reliance, Social Justice, and Economic Recovery. This was an exercise in political orientation in Nigeria undertaken by President Ibrahim Babangida as one of the recommendations of the Political Bureau headed by Samuel Joseph Cookey. In the present political season, Nigerians need this kind of agency which did so well in educating and re-orienting Nigerians on democratic norms, especially on electoral process, during the period of transition from military to democratic government. Though MAMSER has since metamorphosed into National Orientation Agency (NOA), nothing is coming from that axis as a result of the name change. The Independent National

Next president must think restructuring Daniel Obi

or many years, the debate for restructuring has attained the same level of prominence as discussions on economy and insecurity. This is because proponents of restructuring see it as a lever to unearth Nigeria’s potential and move the country forward. Yes, for several years, Nigeria has marketed itself as a country of potential. This potential has lived with Nigerians for a long time, but the citizens are yet to connect with it. While other countries with less potential such as Malaysia, United Arab Emirates and Singapore and many more countries have turned their little potential into great advantages, Nigeria has always enjoyed just being a potential economy. It is true that Nigeria has all the abundant human and material resources including crude oil, solid minerals and arable land for agri-

culture that would make it grow at a faster rate, but growth has been sluggish. Amazing! Many people are asking why the ends are not joining, why the potential is not turning into great advantages quickly for the citizens. Nigeria was once a net exporter of food but now it imports some of its food products. The Minister of State for Agriculture and Rural Development, Heineken Lokpobiri, had in a report said that Nigeria spends about $22bn a year on food importation. A once booming textile industry has become comatose forcing Nigerians to import textile materials with pressure on exchange rate. So also are other industries including paper and pulp and many other manufacturing industries and SMEs. Nigeria is green and a land of honey but many people are not eating the honey. This results in frustration, which manifests in different colours among Nigerians who wait endlessly to see the potential turn into realities.

Fast-tracking development In addition to fast diversification of the economy from oil, improvement on education and health to raise necessary human capital, there have been calls for restructuring of the economy to enable the country to create viable federation units for planning and pursuit of economic development, and encourage the devotion of more powers to the regions to deal with issue of ‘do or die political competition’. Speaking recently, Emeka Anyaoku, former secretary-general of the Commonwealth, while identifying economic diversification from oil and vigorous industrialisation strategies as ways to turn the potential into advantages and grow the economy, said restructuring will help to control “the all-powerful centre, which will help to deal with the tendencies that are responsible for the country’s political instability and its socio-economic ill including the evil of massive corruption.” Anyaoku is not alone in the belief.

BUSINESS DAY

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Tuesday 11 December 2018

Buhari, Atiku, like in the past, are making vague job promises Christopher Akor

espite the massive shedding of jobs in the economy over the last three years, where a record nine million people lost their jobs – and despite the doubling of the unemployment figure from 8.9 percent in the second quarter of 2015 to 18.8 percent Q3 2017, the main challengers for the presidency, Muhammadu Buhari and Atiku Abubakar, have continued, like in the past, to make bogus promises of creating millions of jobs in their manifestoes and policy documents without going into specifics of exactly how those jobs are going to be provided and by whom. In the Buhari’s APC abridged manifesto entitled ‘Next Level: We are all going higher’, the president promised to scale up job creation by 19.5 million in the next four years. A breakdown of the promised jobs includes: employment of additional 1 million N-Power graduates, skill up 10 million Nigerians under a voucher system in partnership with the private sector, 1 million additional jobs through the Anchor Borrowers Scheme, 1.5 million jobs along dairy, beef, hide & skin, blood meal, crops, 5 million jobs through agriculture mechanisation policy with tractors and processors, 700, 000 jobs in the tech and creative sector through provision of $500 million innovation fund and the training of youth for outsourcing market in technology, services and entertainment, and another 300, 000 jobs through up scaling the school feeding programme. But the document is notoriously silent on the specific details of how the jobs are to be created. This new manifesto is a perfect replica of the 2015 manifesto where the president also promised to “make our economy one of the fastest growing emerging economies in the world with a real GDP growth averaging at least 10-12 percent annually”, and to create three million jobs annually, or as another policy document of the APC avers “to embark on vocational training, entrepreneurial and skills acquisition scheme for graduates along with the creation of Small Business Loan Guarantee Scheme to create at least 5 million new jobs by 2019”. The manifesto then was silent on specifics and strategies. However, since coming to power, the economy has not grown above

Buhari

2.5 percent. Indeed, Nigerian witnessed its first recession in 25 years under the administration and even after exiting recession, has not grown beyond 1.7 percent, far below the population growth rate of 2.6 percent, which is a key factor in the endemic spread of poverty in the country. Indeed, some months ago, the Brookings Institution declared Nigeria the poverty capital of the world with a record 87 million people living in extreme poverty and another 8,000 people sliding into extreme poverty on a daily basis. Regardless, the government has been stubbornly trumpeting its own facts: that since coming to power in 2015, it has successfully lifted 10.073 million Nigerians out of poverty to prosperity (according to minister of budget and national planning Udoma Udo Udoma) and that it has created up to seven million jobs (according to Chris Ngige, minister of labour and productivity) with many of those jobs domiciled in the rice production sector where the presidency claimed the nation is almost becoming self-sufficient in its production. However, the United States Department of Agriculture busted the government’s bubble when it released figures showing that rather than reducing, Nigeria’s rice import has increased and is projected to jump next year to 3.4 million metric

Atiku

tons, making the country world’s second biggest rice importer after China. On his part, Atiku promised to “Target the creation of up to 3 million self-and wage-paying employment opportunities in the private sector annually, across all the economic sectors, including agriculture, manufacturing, MSMEs, ICT and Sports and Entertainment.” He also promised to create “opportunities for large corporates as well as for small farm holders and microenterprises to nurture entrepreneurs and create jobs.” Unlike Buhari, though, Abubakar got some fundamental principles right by promising to first stimulate the growth of the economy by firmly committing to promote a “private sector-driven, competitive and open economy supported by efficiently run public institutions.” Only this can unlock the economy and enhance its capacity to provide opportunities for the economically active population to participate in the economy through wage or self-employment. It is also heartening that he has committed to the religiously pursue the active participation of the private sector in the economy through public private partnerships since government does not have the needed resources to provide infrastructure, and only the private sector holds the

key to providing the millions of jobs needed to absorb the over 35 million unemployed and under-employed Nigerians and also absorb the over two million Nigerians entering the job market annually. Having said that, and although the policy document lists the steps the aspirant will take to bring this about, the steps are desperately short of clear-cut, workable plans and innovative strategies on how to unlock these jobs across the various sectors of the economy. For example, in his plan on ‘what we will do’, he talks about skills acquisition, creation of incubation centres, clusters and industrial hubs and using a four-pathway agenda to job creation. The plans says nothing about the current jobs various sectors create, the untapped jobcreation potential of the sectors and specific plans on how to open up new sectors or expand existing ones and give numbers to the jobs that could be created from each of those sectors. In this, Buhari’s plan does better than Atiku’s. Besides, the plans of the frontrunners for the top job are so nebulous and difficult to pin down and track since they are mostly heavy on broad policies and not specific and detailed plans on how these jobs would be created. Like we have seen in the past, the government could easily claim to have fulfilled

its promise by making some policy announcements or creating some agencies to implement the policies regardless of the number of real jobs that are created through those policies. “It is difficult to see the innovation, freshness or what is spectacular of the Atiku’s plan to create 3 million jobs annually,” says Franklyn Ngwu, a senior lecturer in Strategy, Finance and Risk Management at the Lagos Business School and member, Expert Network, World Economic Forum, in an article in BusinessDay. There is need for clarification in certain critical areas that are central to the success or failure of the plan, the don concluded. Jobs are central to the economic development of any nation. Economists have long established a link between the employment rate and economic growth. When citizens are gainfully employed and produce valuable goods and services, both the citizens, the economy and the society prosper and vice versa. And the first indices with which leaders are judged in advanced economies is the number of jobs created and how low the unemployment rate is. If Nigeria’s current experience is anything to go by, they need to quiz the frontline presidential candidates for specificity on their job creation plans.

Monday 10 December 2018

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Theresa May aborts planned Brexit vote in humiliating setback Delay follows warning from aides of overwhelming defeat if prime minister pushed ahead GEORGE PARKER, LAURA HUGHES AND CAT RUTTER

heresa May has aborted a planned vote on her Brexit deal on Tuesday, according to several people close to cabinet ministers, in a humiliating setback for the UK prime minister, who was facing a heavy defeat in the House of Commons. At 11.15am on Monday, Downing Street said the vote was going ahead “as planned”, but shortly afterwards Mrs May told her cabinet on a conference call it would be postponed, according to officials briefed on the matter. Number 10 has so far declined to comment. In early afternoon trading, the pound fell 0.8 per cent to $1.2625, its lowest level since June 2017. Sterling slid 1 per cent against the euro to €1.1062. Yields on gilts fell, suggesting growing investor jitters about UK economic growth in the future, given the higher odds of a no-deal Brexit. Mrs May is due to give a statement to the House of Commons at 3.30pm explaining her decision to pull the vote and how she intends to find a way past the political impasse. She is expected to tell MPs that she has listened to their concerns and intends to travel to Brussels to try to renegotiate the terms of the Irish backstop. Jeremy Corbyn, the Labour leader, said the “eleventh hour” step was “desperate”, adding: “We don’t have

a functioning government.” He was urged by Nicola Sturgeon, leader of the Scottish National party, to lodge a motion of no confidence in the government on Tuesday. “We can then work together to give people the chance to stop Brexit in another vote,” Ms Sturgeon said on Twitter. “This shambles can’t go on — so how about it?” Mrs May’s decision followed warnings from Julian Smith, the Conservative party’s chief whip, that her Brexit deal would suffer an overwhelming defeat if she pushed ahead, with dozens of Tory MPs threatening to vote it down. The prime minister hopes the delay will allow her time to secure an improved deal and will travel to a planned EU summit on Thursday to plead for help from the 27 remaining member states. Her focus is on the Irish backstop — the insurance policy against a hard border in Ireland — which has become the main point of contention for Eurosceptic Tory MPs. More than 100 Conservative MPs have spoken out against the draft exit treaty, directing much of their criticism at backstop provisions that would keep the UK in a close customs arrangement with the EU if another solution is not found to prevent a hard Irish border. Northern Ireland’s Democratic Unionist party, which until now has provided Mrs May’s government with its parliamentary majority, is also fiercely opposed to the backstop.

Congo’s president prepares to step down but not walk away Joseph Kabila tells FT he is respecting constitution by leaving power after 17 years

TOM WILSON

fter 17 years in power Congolese president Joseph Kabila insists that he has answered his critics by preparing to leave office following a landmark election this month, but he says he has no plans to walk away from politics. The head of state in the Democratic Republic of Congo will step down after the vote in two weeks’ time in what will be the country’s first democratic transfer of power— a rare occurrence in central Africa where some presidents have ruled for three decades. “Back in 2006 nobody thought that we were going to organise elections, 2011 the same thing, and it wasn’t different this time around so we have proven them wrong,” said Mr Kabila in a rare interview with the Financial Times on Sunday in Kinshasa. If the polls do take place — and some doubts remain over the readiness of a new voting system — the vote will be historic. Congo has never had a change of government via the ballot box. Whether the transition will be the watershed moment in Congo’s troubled history that many hope is much less certain. Mr Kabila has built a sprawling coalition to contest the vote and picked a loyal ally to run in his stead.

He says he has no plans to step away from politics and refuses to rule out running for president again in the future, raising the prospect that little could change despite the handover in the ruling party. “In life don’t rule out anything,” he says in the grand but faded presidential palace on the banks of the Congo river. “Time will tell.” Mr Kabila was plunged into Congolese politics at 29 years old after his father, the rebel-leader-turnedpresident Laurent Kabila, was assassinated during a bloody civil war that left millions dead. With the backing of the UN, the young heir negotiated a fragile peace and, against all odds, began rebuilding the country, holding Congo’s first democratic elections in 2006 and relaunching mining activity in the country. Investors including Glencore and Freeport-McMoRan initially poured into the country, investing billions into copper and cobalt projects, which saw the economy expand from $7bn in 2001 to $38bn in 2015. More recently, however, progress has stalled, undermined by endemic corruption and the political uncertainty generated by the fastapproaching vote. Mr Kabila was due to step down in 2016 but the polls were repeatedly delayed, stoking suspicions that the Continues on page 48

Theresa May in Downing Street on Monday. The UK prime minister will travel to an EU summit on Thursday to plead for help from member states © Getty

“This vote has been pulled because it would have been overwhelmingly defeated,” said Nigel Dodds, the DUP’s deputy leader. “Deferring the vote is only of any use if the government is prepared to go to Brussels and insist on necessary changes to the withdrawal agreement.” Downing Street acknowledges that the treaty has been finalised and that reopening the text could lead to other countries adding their own demands: France wants more access to Britain’s fisheries, while Spain has demands over Gibraltar. Instead, Mrs May is thought to be seeking clarifications or assurances

from the EU to try to persuade Tory MPs that the backstop will not be permanent, but she knows that anything that is not legally binding is unlikely to sway opinion. The UK prime minister held talks over the weekend with European Council president Donald Tusk, European Commission president JeanClaude Juncker, Irish prime minister Leo Varadkar and German chancellor Angela Merkel to assess the scope for tweaks to the Brexit deal. Mr Varadkar said Dublin was open to statements of clarification but insisted that the substance of the

treaty could not be changed. “The withdrawal agreement including the Irish backstop is the only agreement on the table. It took over a year and a half to negotiate,” he told reporters on Monday. “It has the support of 28 governments and it’s not possible to reopen any aspect of that agreement without reopening all aspects of it.” In a big boost for anti-Brexit campaigners, the European Court of Justice said Britain was free to cancel its notification to leave the EU without the consent of other EU member states, in a ruling that placed no conditions on the decision.

Trump readies himself for Mueller’s final act Democrats say prosecutors have evidence of ‘impeachable offences’ by the president DEMETRI SEVASTOPULO

onald Trump is poised to announce his replacement for John Kelly as White House chief of staff as he prepares for the conclusion of the Russia investigation led by special prosecutor Robert Mueller. Mr Trump at the weekend said Mr Kelly was a “great guy” but that the retired general would leave the position this month. “John Kelly will be leaving toward the end of the year,” said Mr Trump, who added that he would announce his replacement over the next few days. Mr Kelly’s departure — the latest from an administration in which there has been heavy turnover — comes as Mr Trump faces mounting scrutiny over his ties to Russia and possible campaign finance violations during the 2016 campaign. On Friday, Manhattan prosecutors said Michael Cohen, a one-time lawyer for Mr Trump, took actions during the 2016 race ordered by Mr Trump that were aimed at influencing the outcome of the election. In a court filing, Southern District of New York prosecutors said Mr Cohen had paid two women — porn star Stormy Daniels and former Playboy model Karen McDougal — to stop them from publicly claiming that they both had sexual relationships with Mr Trump at a time when he was married.

“As Cohen himself has now admitted, with respect to both payments, he acted in co-ordination with and at the direction of Individual-1,” said the prosecutors, adding that he “sought to influence the election from the shadows”. Experts had said that “Individual-1” was a reference to the president, but the prosecutors wrote explicitly for the first time that it was a reference to Mr Trump — linking him directly to a felony. In a separate court filing, Mr Mueller said Mr Cohen had met with his investigators seven times and had provided information that was “core to its investigation”. One of the revelations outlined in the document was that a Russian national contacted Mr Cohen in November 2015 to suggest a meeting between Mr Trump and Russian president Vladimir Putin that was pitched as a way to help the then-real estate mogul build a Trump Tower in Russia. Mr Trump has long denied any relationship with Russia and describes the Mueller investigation as a “witch hunt”. But the filings showed there have been more ties between Trump campaign officials and Russia than the president has accepted. Mr Trump responded by tweeting, “Totally clears the President. Thank you!” Democrats leapt on the court filings, saying they provided more evidence that Mr Trump had taken

actions that could justify impeachment. Jerry Nadler, a New York Democrat who will chair the House judiciary committee from January, said Mr Trump had committed “impeachable offences”. “They would be impeachable offences. Whether they are important enough to justify an impeachment is a different question,” he told CNN. Mr Nadler said the filings showed Mr Trump had been “at the centre of a massive fraud” against the American people, and that the House, which will switch to Democratic control in January, would investigate the matter. Chris Murphy, a Democratic senator from Connecticut, said the filings — which said Mr Trump ordered Mr Cohen to make the payments — showed the investigation had “moved into a new phase” putting Mr Trump in more jeopardy. “The president has now stepped into the same territory that ultimately led to President Nixon resigning,” Mr Murphy told ABC television. “President Nixon was an unindicted co-conspirator.” Marco Rubio, a Republican senator, on Sunday said he wanted to reserve judgment until Mr Mueller had finished his probe, but added it had been a bad week for Mr Cohen and Paul Manafort, the former Trump campaign chairman who has been accused of violating the terms of his plea deal with Mr Mueller.

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FT Congo’s president prepares to step down but not...

Israel’s tech expansion stokes glaring inequality in Tel Aviv

Continued from page 47

leader was looking for a way to change the constitution to hold on to power. Mr Kabila denies that was ever part of the plan. “I stated that the constitution was going to be respected . . . and I kept my word,” he says. In August Mr Kabila stunned the country by picking a former interior minister, Emmanuel Shadary, to represent his ruling coalition — an unpopular figure according to polling data. Critics argue that Mr Shadary, who was sanctioned along with other Congolese officials by the EU in 2017 for alleged human rights abuses, was selected because he has been close to the president for 16 years and will be easy for Mr Kabila to control. Mr Shadary was chosen because he is a “patriot”, says Mr Kabila. “Someone who loves this country, someone who is capable of dying for this country.” “We wanted a candidate who was going to consider the Congo as priority and was not going to take any orders from anywhere else but from the Congolese people,” he adds. In the past decade, Mr Kabila has shied away from the press and the spotlight, making fewer and fewer public appearances. As protesters were killed in 2016 over the delayed election, he said nothing and made only one public statement in the whole year, an address to parliament. In person though he is relaxed and good-humoured “I don’t give lots of interviews” he chuckles. “I used to, until I got busy, very busy.” Initially surrounded by his late father’s advisers, Mr Kabila gained in confidence as the years progressed and has increasingly exercised direct control over many parts of Congo’s chaotic political, security and business establishments. He defends his record as one of reunification, peace and security, though he admits that many objectives are still “a work in progress.” Production of copper — the country’s main export — soared under Mr Kabila’s administration from 30,000 tonnes a year in 2001 to more than 1m tonnes today, but revenues have rarely filtered down to Congo’s 80m people, nearly two-thirds of whom live on less than $1.90 a day, according to the World Bank. Fighting continues to kill thousands of people every year in different parts of the country, infrastructure investment has been patchy and corruption remains rife. “All these are areas that work will have to continue to be done,” he says. Mr Kabila says he learnt from Mobutu Sese Seko, Congo’s former president, that one should always know when to quit. Mobutu was chased out of office after 32 years by Laurent Kabila’s rebel army and died in exile in Morocco. “Time is up. We make room for the next administration and we continue to be available for the nation,” he says. Opposition leaders have criticised the independence and preparedness of the country’s electoral commission, and say that insecurity and the world’s second worst Ebola outbreak will make voting difficult in parts of the country, rendering it easier for Mr Shadary to win. If he does, just how “available” the former president intends to be is the important question.

Monday 10 December 2018

City’s quest to rival Silicon Valley provokes discontent with echoes of San Francisco MEHUL SRIVASTAVA

T Africa over the last four yers made the most legislative progress aimed at tackling gender discrimination, according to new OECD data. © AFP

Africa has made most legislative progress for women Region has added laws to tackle discrimination. But practice slow to catch up, says OECD VALENTINA ROMEI

frica over the past four years made the most legislative progress aimed at tackling gender discrimination, however laws and social norms in the region and around the world stil hamper equality, according to new OECD figures. The Social Institutions and Gender Index (SIGI) looks at the gaps that legislation, attitudes and practices create between women and men when it comes to rights and opportunities. The findings, compiled by the OECD, reveal that despite advances in some countries, in many of the 180 nations covered, political commitments and legal reforms have not translated into real changes for women and girls. “The last few years have seen an unprecedented surge in support for women’s rights,” said Juan Yermo, a senior OECD official. “And as much as acknowledging the facts is a decisive step forward, now is the time to turn the rhetoric about gender equality and women’s empowerment into action.” The SIGI examined four types of gender discrimination: discrimination in the family, restricted civil liberties, physical integrity and access to financial resources. Here are three takeaways from the findings. 1. Africa made the most legislative progress Across the index’s four dimensions of discrimination, “the region

that has seen the most progress since the last [SIGI report] in 2014 is Africa”, said Bathylle Missika, head of the OECD’s gender division. She said that this is largely because of the introduction of national laws aimed at targeting gender discrimination and violence. Since 2014, 10 African countries introduced laws against domestic violence, including Kenya, Angola, and Uganda, and five countries added legislation to delay the age of marriage. Five countries also introduced quotas to increase the number of women in parliament. Most African countries now guarantee paid maternity leave for formal work, said Mrs Missika, which, she pointed out, is “something that the US still does not have”. The US is the only OECD member that has not passed laws requiring business and corporations to offer paid maternity leave to their employees. Gulf countries, including Bahrain, Brunei, Indonesia, Pakistan and Afghanistan, lag behind. In many of these countries, women do not have equal rights as men on inheritance or marriage. 2. Practices and attitudes are slower to change Despite the adoption of new legislation aimed at improving conditions for women, practices and attitudes were slower to change, according to the findings. The share of women in Africa who

reported domestic violence declined — so did the share of those who said domestic violence is justified — yet the figures are still high, said Mrs Missika. Child marriage also declined. In 2018, 16 per cent of girls aged 15-19 throughout the world have been married before turning 18, compared with 19 per cent in 2012, according to SIGI summary findings. At that pace, the report said, it would take 100 years to eradicate girl child marriage. “The norms that are the hardest to eradicate are the ones of family domain, because this is a private sphere,” said Mrs Missika. She added: “People have seen their mother’s, their father’s, their grandmother’s, their grandfather’s [behaviour] and it is embedded in their brains.” 3. Gender discrimination persists in advanced economies The OECD data show that women are less equal in developing countries, but gender discrimination persists in advanced economies too. The UK and US score below most peer economies because of gaps in legislation such as the lack of guaranteed paid maternity leave in the US, or, as is the case in the UK, an unequal split of housework between men and women, and more negative views of working mothers. Japan remains a largely traditional society across most measures and ranks below most advanced countries as well as emerging economies such South Africa, Brazil and South Korea.

Deloitte has fired 20 UK partners for inappropriate behaviour Chief says firm will not spare anyone involved in sexual harassment or bullying MADISON MARRIAG

eloitte has fired about 20 UK partners over the past four years for inappropriate behaviour including bullying and sexual harassment, the accounting group’s chief executive said. “We will fire people for any inappropriate behaviour. No one is protected,” said David Sproul. “There has been unfortunately a number of partners who have been fired for inappropriate behaviour, be it of a sexual nature or of a bullying nature. I’d like to say there weren’t any, but there are.” Deloitte is the first of the Big Four accounting firms to disclose the extent of dismissals for inappropriate behaviour in its senior ranks. It comes as the #MeToo movement

has exposed the pervasive sexual harassment of women at work. Mr Sproul said the firm, which has about 1,000 UK partners, has “reinforced” existing guidance on appropriate conduct in response to the #MeToo movement, such as the rules on socialising with colleagues after work. “You can’t meet someone more junior to you in a bar on a Friday evening after work and assume she or he is attracted to you [and is seeking] a one-night stand. You just can’t do it,” he said. “Some people definitely would have to have that explained to them. So we’ve been very clear on what is acceptable in our firm.” Deloitte introduced several initiatives to combat harassment and discrimination years before

the #MeToo movement, according to Mr Sproul. These included mandatory “respect and inclusion” training for all staff, helplines that enable employees to anonymously report problems and a video where employees explained why a situation made them uncomfortable. “About 10 of our people agreed to speak anonymously about behaviour that they had experienced. This wasn’t the most egregious behaviour, and they explained how it made them feel. It was probably one of the most powerful things we did, because it caused people to realise that . . . something some people would have thought was just banter was massively offensive to the person hearing that banter.” PwC did not respond to a request for comment.

he crowded central bus station is the hub of down-at-heel Tel Aviv, a grid of streets where police cars patrol for petty crime, warehouses stand abandoned, and poor Israelis live in crumbling apartments. Above them, however, a new face of the city is taking form. The Ybox apartment blocks tower over the gritty streets, home to upper-middle class Israelis who live in $1m-plus flats, drive expensive cars and buy Indonesian coffee from in-house cafés. Almost all of the tower residents are enjoying the wealth generated by Israel’s surging tech scene, which employs onetenth of Tel Aviv’s 4m residents and has brought billions of dollars of investment into the Mediterranean beach town. “For young couples working in tech, maybe those with a young child, this is the perfect place to live — it’s edgy and exciting, not dangerous and dodgy,” said Victoria Amrani, a sales manager at the apartment towers. “I mean, there’s a dangerous area close to here, but it does not spill over.” But Tel Aviv’s quest to rival Silicon Valley has exacerbated the kind of social ills that have become contentious in San Francisco: income inequality and growing discontent over the exclusion of working class citizens from the economic gains. Assaf Harel, a television journalist who won a seat on Tel Aviv’s city council last month with the campaign slogan “Not a City of Towers”, said the tech sector was picking at the fabric of society. “Every day in Tel Aviv, you see more and more towers, but if you’re an average person, you don’t know anyone who lives there,” he said. “You never go there to visit, no one from your daughter’s schools lives there. You feel like something was taken from you, from the city, and given to a complete stranger.” Israel’s tech sector has become an anchor for its steadily growing economy, doubling its share of gross domestic product from about 6 per cent in 1995 to about 12 per cent today. Half of the country’s exports by value are now classified as high tech goods and services, according to OECD data. Last year, Israeli tech companies were acquired in deals worth a total of $23bn, including the $15bn sale of Mobileye, a developer of self-driving vehicle technology, to Intel. Tech growth has exacerbated existing social inequalities. Some 15 per cent of the workforce are below the poverty line, including many ultra-Orthodox Jews and Israeli Arabs. While the average national wage is about $2,800 a month, average earnings in software research are almost $10,000, according to central bank data. In 2017, Amazon reportedly paid some new hires about $25,000 a month. Some 300 multinational companies from Facebook to Intel have taken office space, but the results are less ostentatious than the caricature of the Silicon Valley tech bro taking private jets. In a country built on frugality, most well-educated Israelis are averse to flashy displays of wealth. “There’s no word in Hebrew for a man who’s gotten too rich to hang out with his old friends,” said Hezi Cohen, a former urban planner now working at Waze, the Israeli mapping company bought by Google for $1.1bn.

Monday 10 December 2018

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India’s central bank governor Urjit Patel resigns amid tense stand-off Reserve Bank of India head has been at odds with the government over its independence AMY KAZMIN AND SIMON MUNDY

ndia’s central bank governor, Urjit Patel, has abruptly resigned in the culmination of a stand-off with Prime Minister Narendra Modi’s government over the institution’s independence and a wide range of central bank policies. In a statement on the Reserve Bank of India website on Monday afternoon, Mr Patel cited “personal reasons” for his decision to step down from the position he has held since the government declined to extend the tenure of his predecessor, Raghuram Rajan, in September 2016. His decision is effective immediately. Mr Patel’s exit comes just days ahead of what was likely to be a fiery meeting of RBI governing board, during which highly contentious issues — including New Delhi’s demand for higher payouts to the government from the central bank’s reserves — were tabled for discussion. Tensions between the RBI and Mr Modi’s government have been mounting for months over the central bank’s monetary policy, the tough measures it has taken to clean up a bad loan problem at India’s state banks and the liquidity squeeze that followed trouble in the shadow banking sector. At a 10-hour-long board meeting last month, under heavy pressure from government nominees, Mr Patel made a number of concessions including promising to review restrictions on fresh lending by banks that already have high levels of bad debt. Pressure on the RBI was expected to continue at Friday’s meeting. “I don’t think he wanted to go down in history as somebody on whose watch the RBI was put through an unreasonable wringer,” said Rajeev Malik, a strategist at River Valley Asset Management. Eswar Prasad, a professor at Cornell University, said Mr Patel’s abrupt

departure “is a dark day for the RBI” and marks “the culmination of the government’s taking the hammer to a cherished and widely respected institution”. “By forcing Mr Patel’s hand, the government has now made it clear who runs the show,” he said. Mr Rajan, whose outspokenness while in office annoyed the government, urged New Delhi to tread cautiously and “act appropriately” after his successor’s departure. The resignation is “a statement of dissent and therefore the government has to be very careful in dealing with it, to ensure the credibility of the institution is preserved”, he told an Indian television channel. Investors are likely to be jittery as financial and currency markets open on Tuesday, when Indian officials will also be counting results in three closely fought state polls seen as a dress rehearsal for next year’s general elections. “In the next 24 hours, New Delhi will have to step up and play a stellar role to reinforce market confidence in the RBI,” said Saurabh Mukherjea, founder of Marcellus Investment Managers. “We’ve got a tense geopolitical situation, difficult assembly election results tomorrow and still a very fragile shadow banking sector. The fact that Mr Patel is the second governor to depart under the rule of this government is “not something foreign and domestic investors will take lightly”,he added. “The RBI’s future hangs in the balance.” But analysts said the longer-term impact will depend on who the government chooses to replace Mr Patel, what type of policies his successor proffers and the kind of relationship the new governor has with New Delhi. So far, the government, which appears to have been caught off-guard by the timing of Mr Patel’s departure, has given no hint of a likely successor.

US futures offer spot of calm in wake of global sell-off PETER WELLS

all Street is looking to avoid its longest losing streak in a month, with US stock futures staging a comeback on Monday despite the preceding sell-off in global markets. The S&P 500 capped off a volatile week— its worst since March — with a 2.3 per cent tumble on Friday that saw the index rejoin the Nasdaq Composite in correction territory, defined as a drop of 10 per cent from a peak, and experience a “death cross” — a sign of bearish momentum that occurs when the index’s 50-day moving average falls below its 200-day moving average. That, continued investor unease about the temporary trade truce between the US and China, and — on Monday — media reports of UK Prime Minister Theresa May’s decision to abort Tuesday’s planned vote for her Brexit deal are weighing on market sentiment. Futures for the S&P 500 and Dow Jones Industrial Average trimmed earlier declines to sit flat to slightly lower around 8am local time. Those for the

Nasdaq Composite turned positive, up 0.2 per cent. Should the S&P 500 close lower today, it would be the benchmark’s first four-session losing streak in a month. London’s FTSE 100 was up 0.4 per cent as the pound sold off, but continental European markets were down by between 0.4 per cent and 0.7 per cent. Australia’s S&P/ASX 200 was the worst performer among major Asian markets, which all closed lower by more than 1 per cent, save for a 0.8 per cent decline for the Shanghai Composite. Government bonds were slightly weaker, with yields edging higher despite the gloomy mood. The yield on the benchmark 10-year US Treasury was up 0.6 basis points to 2.8557 per cent. Last week, yields drop to their lowest levels in three months, with some particularly chunky moves for shorter-term rates. The movement at the short-end helped widen the so-called yield curve, which — in its most common incarnation — tracks the difference between the two- and 10-year Treasury yields.

US-China conflict threatens trade’s tech advances

Behind the battle over tariffs lies a struggle over the technologies of the future JAMES POLITI

s news of the arrest of Meng Wanzhou, the Huawei chief financial officer, broke — adding a serious twist to the trade war consuming the US and China — I was in London for the World Trade Symposium, a two-day conference on what the future of trade might look like. The symposium was an eyeopener in that it highlighted the way in which new technologies are radically transforming the nuts and bolts of trade, changing the nature of products that are exchanged across borders, and the ways in which these sales are financed in the digital age. But here’s the catch. It is far from clear that these advances can thrive in a world of economic conflict and strategic confrontation between Washington and Beijing. The Huawei case dealt a significant blow to markets last week because it offered a stark reminder that behind the battle over tariffs and trade deficits between the US and China lies a struggle over the technologies of the future. The US has long believed that Huawei is a de facto agency of the Chinese government with the ability — and possibly

even a mission — to infiltrate foreign telecoms networks to steal details of systems used by companies and governments. Many other western countries now think the same. Huawei denies those accusations. But it is only the tip of the iceberg. Because of national security fears, last month the US commerce department produced a list of emerging technologies for which it is considering export controls. Although China was not mentioned by name, the move is clearly aimed at preventing Silicon Valley from selling products ranging from genomics to robotics and AI to Beijing and enabling it to leapfrog the US as an innovative economy and potentially as a strategic power. But the costs of such widespread controls could backfire on Washington if it follows through on the plan. US technology companies would be deprived of a major market for their newest products — their ability to participate in schemes to develop them that often involve researchers in other countries would be hampered. Yet China hawks in the US administration may think it’s a risk worth taking. A similar logic could apply to trade finance. As traditional

ways of funding the purchases of goods and services across borders are reshaped by fintech, including blockchain, the potential for large and small businesses to benefit from the expansion of export credit is huge. But governments may be uneasy allowing these products to flourish, and seem to be moving policy in the other direction. Trade tensions aren’t helping. In trade debates since the beginning of the digital revolution in the late 1990s, the biggest obstacle to greater commercial exchange of digital technologies has been privacy, with some countries insisting on preventing data from leaving their borders. Now the issue is national security, and it raises the stakes in a big way. Canada is caught in the crossfire Pity the Canadians. When Meng Wanzhou needed to travel from China to Mexico she must have known that it was unwise to arrange a layover in the US, instead deciding to stop in Vancouver. It is obvious now that the Huawei CFO did not count on Canada arresting her on US sanctions-busting charges, pending an extradition request from Washington.

Huawei, Cloud Exchange graduate first technical school trainees

loud Exchange West Africa data technical school in partnership with Huawei technologies have graduated its first set of trainees, following an intensive six months free training programme in networking and data management in Lagos. The 37 successful young Nigerian graduates, were also awarded Huawei HCNP-Cloud international certification which validates the knowledge and skills required to construct and manage cloud data centre and desktop cloud system. The technical school which started in June was designed to build the graduates knowledge specifically in networking, with a strategic intent to accelerate a solution-oriented application of technology in solving social and

business problems. Olebogeng Glad Dibetso, the CEO of Cloud Exchange Technical School in a statement charged the graduating trainees to keep improving on what they have learnt. “With the pace of change in technology, the goal for knowledge is continuous, do not let what you have learnt during the training be a final destination, push through every day to stay updated with the latest shift, that is only way to succeed in this career you have chosen, learning must be imbedded in your DNA”. According to Dibetso, the grandaunts must be open-minded on criticism and believe in themselves, noting that “creativity rises only in the presence of diversity”. Ken Zhaowenjun, the director of Huawei Nigeria enterprise

channel department said the company is out to add value to the lives of Nigerians. “For us as a company, being part of a programme like this is one we are very proud of. Our target has always been providing access to cuttingedge solutions for thousands in the Nigerian market; we strongly believe this training will contribute in closing the gap on technical skills,” said Zhaowenjun. Mohammed Aliyu, the executive principal of cloud exchange technical school noted that the training is an opportunity to add value to the lives of young Nigerians. “Throughout the training Huawei has been amazing, and also sponsoring one of our trainee Nicholas Kenechukwu to china to attend 2018 Seed for the future programme.”

Monday 10 December 2018

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BUSINESS DAY

ANALYSIS

Global political backlash spreads against central banks Economic danger is greatest in emerging markets where institutions are often weaker CHRIS GILES AND SAM FLEMING

Washington tariff relief backlog hobbles US auto suppliers More than 1,000 exemption requests await ruling as pain mounts from flagging demand ED CROOKS AND FAN FEI

uppliers to the largest US car manufacturers are waiting for decisions on more than 1,000 applications for relief from the Trump administration’s new tariffs, and have been denied requests for more than 300, in a sign of the pressure the industry faces from restrictions on imports. The costs added by the tariffs come as the US auto industry is grappling with flagging demand, and has been laying off thousands of workers. A Financial Times analysis of the exemption requests filed by 246 companies that supply Ford Motor and General Motors and published by the government shows these companies have filed about 1,780 requests for exclusions from the US tariffs imposed this year on steel and aluminium and on imports from China, arguing that the products are not available from American suppliers. Only 360 of those requests have been approved. Industry groups have warned that the cost increases could lead to job losses in the automotive and other manufacturing industries. General Motors said that the plans it announced last month to shut four factories in the US, with thousands of job losses as part of a global restructuring programme, were not connected to the tariffs. However, Mary Barra, GM’s chief executive, told analysts in October that she expected commodity costs, including the steel and aluminium tariffs, to be $1bn higher next year than this year. Ford has said it expects the met-

als tariffs to cost it $1bn over 2018-19. The US Department of Commerce said raw materials costs for US manufacturers were rising across the board, and not just for steel and aluminium. It added that average raw material costs for a vehicle built in North America had risen by about 12 per cent in the year to August, while the tariffs on metals had added only about 1 per cent. GM said in a statement that the “very complex and integrated” global supply chain in the automotive industry meant that it had to assess the potential combined impact of all of the recent and proposed measures, including the tariffs on steel, aluminium, retaliatory measures by other countries, and the possible new tariffs on vehicles and components being studied by the administration. Employment in the US automotive industry has been rising this year, and in October hit its highest level since 2007, before falling back slightly in November. Ann Wilson of the Motor & Equipment Manufacturers Association said the tariffs were putting pressure on the industry, especially for smaller suppliers that find it more difficult to pass on higher costs to their customers. “The two big expenses of the industry are raw materials and people,” she said. “If raw materials are going up, companies have to save money on people.” The administration has put in place processes for companies to secure exclusions from the latest rounds of tariffs, if they can show that the products they want to buy cannot be produced in the US. However, the volume of requests

for exclusions has strained the government’s ability to assess the merits of each individual case. Josh Zive, a lawyer at Bracewell who represents manufacturers and industry groups affected by the tariffs, said the workload for officials reflected the breadth of the tariffs’ impact on the US economy. “The tariffs were too wide-ranging and affected too many industries for the process to be able to handle it,” he said. “We appreciate that they are trying to make the process fair, but the problem is that at its very core the process is a market distortion.” German manufacturers have also raised concerns about China’s retaliatory 40 per cent tariff on cars imported from the US. President Donald Trump last week met senior executives from BMW, Daimler and Volkswagen, at which he “shared his vision of all automakers producing in the United States”, the White House said. BMW noted after the meeting that its plant at Spartanburg, South Carolina, employed nearly 10,000 people, rising to nearly 11,000 by 2021, and exported 70 per cent of its production, with China its largest market. The company said in a statement: “Free trade has made the success story of BMW in the US possible.” Ms Wilson warned that a new tariff on imported cars and components would “have a devastating effect on our industry”. She added that the uncertain outlook for tariffs, with the administration’s plans still unresolved, could deter investment. “The industry needs regulatory certainty,” she said.

China bans some iPhones in court victory for Qualcomm Preliminary injunction issued after finding that Apple violated two patents TIM BRADSHAW

ualcomm is claiming a key victory in its sprawling legal battle with Apple, after a Chinese court slapped a ban on sales of certain iPhone models in the world’s largest mobile market. The Intermediate People’s Court in Fuzhou, China, has granted a preliminary injunction against Apple after finding it in violation of two Qualcomm patents, related to photo manipulation and using apps on a touchscreen. Qualcomm said the ruling, which was made on November 30, means that Apple’s four Chinese subsidiaries are barred from importing and selling seven iPhone models, ranging from 2015’s iPhone 6s to last year’s iPhone X. However, Apple may design around the infringing patents through software updates and its latest mod-

els, including the iPhone XS and XR, are not caught by the ruling. “We deeply value our relationships with customers, rarely resorting to the courts for assistance, but we also have an abiding belief in the need to protect intellectual property rights,” said Don Rosenberg, Qualcomm’s executive vice-president and general counsel. “Apple continues to benefit from our intellectual property while refusing to compensate us. These court orders are further confirmation of the strength of Qualcomm’s vast patent portfolio.” But Apple said that the ruling would not affect the availability of its devices in China. “Qualcomm’s effort to ban our products is another desperate move by a company whose illegal practices are under investigation by regulators around the world,” Apple said. “All iPhone models remain available for our customers in China. Qualcomm is asserting three patents they had

never raised before, including one which has already been invalidated. We will pursue all our legal options through the courts.” Apple and Qualcomm have become embroiled in a series of lawsuits over the past two years, spanning the US, China and Europe. Apple has accused Qualcomm of abusing its position in mobile chips, prompting the San Diego-based supplier to retaliate with a series of allegations including breach of contract and patent infringement. The case in Fuzhou was first filed in November 2017. Another key decision will come later this month in Germany. Steve Mollenkopf, Qualcomm’s chief executive, has pointed to a series of legal milestones that he hopes will encourage Apple to seek a settlement but lawyers for the iPhone maker told a judge in San Diego last month that there have not been any such talks “in months”.

he technocratic tribe of central bankers is facing political scrutiny of an intensity not seen in decades. President Donald Trump ramped up his war of words with the US Federal Reserve, accusing it of having “ gone crazy ” by raising interest rates and expressing public regrets over his choice of Jay Powell as its chairman. The Reserve Bank of India has been under intense pressure to ease lending conditions, while Hungary has tussled with the EU over measures impinging on its central bank’s independence. Turkish president Recep Tayyip Erdogan has shaken market faith in his country by leaning on its central bank to keep rates low. Even the normal brotherhood of central bankers is fracturing with Mervyn King, former Bank of England governor, accusing his successor, Mark Carney, of “unnecessarily” pandering to the British government’s

State University, who has studied the issue. She said that “major disagreements between the central bank and the government . . . raise doubts about countries’ future prospects” which can show in their credit ratings and subsequent cost of borrowing. Frederic Mishkin, a former Fed governor who is a Columbia University professor, insisted that the overall trend in advanced and emerging economies remained towards greater independence, not less. He added that it was noticeable that in exceptions such as Turkey, where the lira has slid against the dollar this year, the shift back to greater government control has been “a very bad thing for the economy”. Nevertheless, the view that greater independence is always better is also questioned at the top of the profession. Raghuram Rajan, a former Reserve Bank of India governor and now a professor at Chicago Booth University, said: “I think as a com-

President Donald Trump has ramped up his war of words with the US Federal Reserve, expressing public regrets over his choice of Jay Powell as its chairman © Getty

desires over Brexit. Charlie Bean, former deputy governor to both men, said that such questions over central bank’s independence will not go away given the scope of their powers in politically contentious areas. “This area is going to be more fraught in the future than it has been in the past,” he said. Central bankers are likely to be unenthusiastic about such challenges after a decade in which their influence grew because of the crucial role of monetary policy in responding to the financial crisis. But while they are in the eye of the political storm in countries such as the US and the UK, the economic danger is greater in emerging markets where institutions are often weaker and from which money is more likely to flee. At stake is the trend, which gathered pace in the 1990s, of giving central banks independence to undertake monetary policy. Most research suggests the banks have been successful in setting interest rates to smooth the economic cycle. In so doing, they have limited the volatility of inflation without harming economic performance — although they signally failed to prevent the financial crisis. But in the aftermath of the crisis, Western central banks’ use of a broad array of instruments and new powers in areas such as financial stability have triggered a realisation among politicians of just how powerful the technocratic bodies have become. Recent years have seen a spate of clashes, which can have serious consequences, according to Cristina Bodea, associate professor at Michigan

munity, [central bankers] should be challenged and democracy has a right to ask what are you doing and why”. Mr Rajan maintains that greater political interference is inevitable. “The whole political movement is anti-establishment and you aren’t going to get more establishment than the central bank,” he said. Whether the new relationship between politicians and central bankers is damaging will depend on the individual circumstances of different countries. This autumn, President Donald Trump ramped up his war of words with the US Federal Reserve. In the US, Mr Trump’s demands for easy monetary policy have marked a violent breach of precedent. His most recent predecessors all kept quiet about central bank decisions, and previous interventions under Ronald Reagan and George H.W. Bush were largely (though not entirely) kept behind closed doors. Some Fed veterans are deeply worried by what they see. Janet Yellen, who stepped down as Fed chair at the start of the year, told the FT in October that if the public started losing confidence in the Fed it could trigger Congressional action to rein the institution in. Yet to date the story of Mr Trump’s fraught relations with the Fed has been a mixed one. Don Kohn, a former Fed vice-chair now at the Brookings Institution think-tank, said there was “no evidence” the Trump administration had sought to use its power of appointments to the Fed board to push decisions in a particular direction.

Tuesday 11 December 2018

BUSINESS DAY

Harvard Business Review

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Tips & Talking Points To pitch an idea, take a lesson from Hollywood screenwriters

TALKING POINTS Next Step 60%: MITSloan Technology Review reports that 60% of companies do not have short-term goals in place for new employees. +

Essential Excel 10%: In a recent survey, experts found that employees spend more than 10% of their time in the office working on spreadsheets. + Enter the Smart Speaker 43 million: According to a study from NPR-Edison Research, 43 million American adults own a smart speaker.

hen Hollywood screenwriters pitch their movie ideas, producers are typically listening for a logline: one or two sentences that explain what the movie is about. If there is no logline, more often than not, there is no sale. This is a valuable lesson for business leaders trying to answer basic, essential questions: What does your startup or product do? What’s your new idea? You should be able to respond in a compelling sentence that is both easy to say and easy to remember. Identify the

When a co-worker is struggling to be productive

one thing you want your audience to hold on to. The iPod, for example, was “1,000 songs in your pocket.” A sales rep for a large tech company might focus on savings: “Our product will reduce your company’s cellphone bill by 80%.” Your logline should specify the problem you’re solving and give people a story they can take to other decision-makers in their organizations. (Adapted from “The Art of the Elevator Pitch,” by Carmine Gallo.)

well-intentioned check-in to turn into a gripe session about what’s wrong with your workplace. Brainstorm small steps they can take to make progress on their most important goals. Of course, be careful that helping your colleague doesn’t drain your energy or hurt your performance. You don’t have to solve his problems — just give him the little push he needs to get unstuck.

(Adapted from “How to Help a Colleague Who Seems Off Their Game,” by Art Markman.)

eing a good mentor takes time. How can you make sure your schedule full of meetings, speaking engagements and travel doesn’t hinder your ability to be an attentive mentor? First, appreciate that some time is better than none. If 60-minute meetings aren’t possible, try to set aside 30 or even 15 minutes. These smaller windows will force your mentee (and you) to get to the point. And face-to-face meetings aren’t your only option: Text messaging, email, video conferencing and phone calls can all help you connect with your mentee. Most important, be fully present and engaged during mentoring sessions. Whether you are meeting in person, over Skype or even having a text conversation, demonstrate to your mentee that for the next few minutes, they are all that matters. If you start to get distracted by other tasks or your next meeting, refocus your attention and remind yourself: Be here, now.

(Adapted from “How Doctors Can Be Better Mentors,” by Sanjay Saint, M.D. and Vineet Chopra, M.D.)

Resolve cross-departmental problems by Surround yourself with people learning more about your counterparts who will push you to grow

C ometimes productivity is a team effort. If a colleague is struggling to stay focused and engaged, helping him may not be part of your job description, but it is the kind thing to do. Take time to chat with him at his desk, or invite him to grab a cup of coffee or a drink after work. Let him know that you’ve noticed he’s off his game, and talk openly about the times you’ve struggled with projects or had bad days, to show him he is not alone. But make sure the conversation stays productive; it’s easy for a

No matter how busy you are, you can be an attentive mentor

Early Adopters (of Change) 3.5 times: Research published by Willis Towers Watson found that companies with established strategies for dealing with change management are three and a half times more likely to outperform their peers. + New Low 3.7%: The unemployment rate in the United States dipped to 3.7% in 2018, a 49-year low. +

Tuesday 11 December 2018

ompanies naturally fragment into silos as they grow, and it’s common for those silos to feel competitive with each other. But c ro s s- d e p a r tmental tensions don’t have to get in the way of your team’s success. If you lead a function that historically has been at odds with another, reach out to your colleagues in the other department and let them know you’d like to collaborate better. The first step is for both sides to understand each other’s work. Spend time talking about what your departments do and what it’s like for your teams to interact. (You

may hear something like, “I had no idea you do that! No wonder our requests drive you crazy.”) Think through the decisions you’ll need to make together, and determine who will get the final call. You may also need to acknowledge the historical baggage between your departments. The goal of these conversations is to build mutual respect and commit to collective success.

(Adapted from “How to Permanently Resolve CrossDepartment Rivalries,” by Ron Carucci.)

hen it comes t o planning our careers, we carefully choose our companies and jobs. But rarely are we deliberate about selecting the advisers and confidantes who help us succeed. Cultivate a support group for your career by thinking about whose advice and expertise you wish you had on speed dial. Consider who you feel inspired by, whether they’re colleagues, senior leaders or peers in your field. Seek these individuals out, and be candid about why you admire them and why you want to connect. Focus on building a relationship that will benefit both of you. As you get to

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

know each other, don’t be afraid to explore big life questions: What do you want to do with your life? What motivates you? What are you doing that you really don’t like to do? Work together to become better versions of yourselves.

(Adapted from “The Key to Career Growth: Surround Yourself With People Who Will Push You,” by Claudio Fernández-Aráoz.)

Tuesday 11 December 2018

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BUSINESS DAY

FEATURE

Accountable, evidence-based collaboration drives innovation in education The 2018 Nigeria Education Innovation Summit (NEDIS) sought to drive home the need for accountability and transparency, in order to improve efficiency and learning outcomes in Nigeria’s educational system. STEPHEN ONYEKWELU writes that a sustainable education ecosystem is built on institutionalising evidence-based accountability.

biageli Ezekwesili, a former minister of education, once said the problem with Nigeria’s education system is not more funding but accountability and transparency. The co-founder of Transparency International iterated that the fundamental challenge of education in Nigeria is the many decades of poor sector governance and entrenched dysfunction with no mechanism of accountability and performance. Education world over is seen as the cornerstone of development. It forms the basis for literacy, skills acquisition, technological advancement as well as the ability to harness the natural resources of the environment for development and this allimportant sector is faced with myriad of problems in Nigeria. Prominent among the problem areas that brings to light the poor show of the sector are the poor quality of school products, flawed administrative procedures and lack of accountability in the school system, politicised employment and appointment of school heads, improper supervision and defective quality assurance and control mechanism. While education spending levels and enrollment rates in schools have increased across the developing world, a variety of research studies and datasets show that learning levels remain low. Roughly 50 per cent of fifth-grade students could not read a second-grade text in rural India, and only about 45 per cent could correctly compute a two-digit second-grade subtraction problem. In East African countries, only about 50 per cent of fifth graders could read at a second-grade level in English, while only about 60 per cent had attained basic second-grade numeracy and a slightly higher proportion could attain second-grade literacy in Kiswahili. These data also show that these low learning levels have persisted over some time and are especially dire in rural areas, highlighting some of the pressing challenges facing many developing countries. William C. Smith, United Nations Educational, Scientific and Cultural Organisation (UNESCO) Policy and Research Expert, advocates collaboration amongst all stakeholders in the Education Sector as the only sustainable way towards attaining the much-needed reforms in Nigeria. Whilst delivering the Keynote Address at the recently concluded 2018 Nigeria Education Innovation Summit (NEDIS), Smith who led the thematic section of the 2017/8 GEM Report Accountability in Education: Meeting our Commitments recommended this best practice to participants drawn from the public, private and non-profit sectors from within and outside Nigeria. Nearly 250 high-level delegates and key players in the education ecosystem converged in Lagos at the Nigerian Education Innovation Summit (NEDIS) 2018; a 2-day convening designed to strengthen the design,

implementation and scaling up of education innovations in Nigeria. This year’s summit themed, ‘Accountability and Transparency in the Education Sector: Issues, Challenges and Opportunities’, hosted by The Education Partnership (TEP) Centre attracted experts and stakeholder to share knowledge and discuss issues, challenges and innovative practices pertaining to accountability and transparency in Nigeria’s education sector. Every organisation either commercial or otherwise including schools are established and sustained essentially to achieve certain assured objectives. In the education system, one of the vital mechanisms to be put in place towards achieving the goals of the school and ensuring quality service delivery to the society is accountability. Accountability etiquette tends to imply that performance is related to the organisational goals. During her opening remarks at NEDIS 2018, Modupe Adefeso Olateju, the convener and managing director, TEP Centre remarked on the importance of the conference, “Collaboration, networking and partnerships have been the biggest outcomes from this platform every year”. Olateju also added that adequate planning and proper reporting and verification should be imbibed in order to ensure responsibility is taken for performance and non-performance. When giving a brief context to the summit theme, Chinenye Mba-Uzoukwu, a steering committee member of the National Innovation Collaboration on Education, highlighted that only students are held accountable through testing because they are regarded as the weakest in the ecosystem while other stakeholders within the ecosystem are hardly held responsible. Education as an investment in human capital has become a matter of priority for both government and individuals. The general belief is that education helps to enhance the well-being of the individual and the society at large. With this socioeconomic satisfaction, education in Nigeria is seen as a big industry with large investment. The media was charged to be actively engaged and diligent at ensuring that citizens have a good perception of the transparency models being recommended in the education sector in order to effectively advocate for the desired change. Media professionals were told to communicate properly the vision of the educational system developed by Government so it can be understood by every citizen. As an investment, there are problems associated with its financing. One of the factors that have contributed to these problems is the widening perception of education as the key to upward economic and social mobility. This has implication in expecting that education should be able to yield dividends in line with the need of the nation. Therefore, on

L-R: Wiliam Smith, senior policy analyst, UNESCO Global Education Monitoring Report (GEMR); Modupe Adefeso-Olateju, managing director, The Education Partnership (TEP) Centre; Ronke Soyombo, director-general, office of Education Quality Assurance; Joe Abah, Nigeria country director, Development Alternatives Inc (DIA); Yinka Ogunde, CEO, Edumark; Ifeanyi Peters-Uguwoke, national programme manager, DFID’s Partnership to Engage, Reform and Learn-Accountable, Responsive and Capable (PERL-ARC) and Simbo Olatoregun product marketing manager, Grow with Google, Google Nigeria.

societal grounds and from economic perspectives, great investments were found on societal grounds, whereas from economic perspectives, great investments in education can be justified because of its expected generous returns. While calling for transparency and accountability in the education sector, Manos Antoninis, director of UNESCO, Global Education Monitoring (GEM), in his 2017 report said: ”Governments should develop credible and efficient regulations with associated sanctions for all education providers, public and private, that ensure non-discrimination and the quality of education. They should allow for democratic participation, respect media freedom to scrutinise education and set up independent institutions to handle complaints.” He added that “Governments should design accountability for schools and teachers that is supportive and avoid punitive mechanisms, especially those based on narrow performance measures. Whereas transparency would help identify problems, only one in six governments publishes annual education monitoring reports.” Antoninis stressed that strong independent bodies such as ombudsmen, parliaments and audit institutions are also needed to hold governments to account for education because lack of accountability opens the door to corruption. According to the report, the European Union in 2009-2014, 38 per cent of education and training tenders only had one bidder, compared to 16 per cent of tenders in the construction sector, indicating that the risk of corruption is higher in education than in the building industry. The Report argues that it is crucial to set and enforce regulations ranging from contract tendering to teacher qualifications. Fewer than half of low and middle-income countries had standards for early childhood education and just a handful had mechanisms to monitor compliance.

There are no regulations on class sizes in almost half of countries. ”No approach to accountability will be successful without a strong enabling environment that provides actors with adequate resources, capacity, motivation and information to fulfil their responsibilities,” Antoninis added. While citing Lagos State as an example, Antoninis said:”In Lagos, Nigeria, only 26 per cent of private schools in 2010/2011 had been approved by the State Ministry of Education.” Pointing out the danger of unapproved schools, he warned that in countries with weak accreditation processes, thousands of students would graduate with unrecognised degrees. ”In countries with weak accreditation processes, thousands of students graduate with unrecognised degrees,” he said. He noted also that in Kenya and Uganda, private schools were operating without qualified teachers and with inadequate infrastructure before regulations were put in place and courts shut them down. Antoninis however, advised that where formal mechanisms fail, citizens could play a vital role in holding governments to account for meeting their right to education. In Colombia, he said, a citizens’ campaign successfully challenged the government in court leading to the establishment of free education. The Report emphasises the importance of accountability in addressing gaps and inequalities. Globally, less than 20 per cent of countries legally guarantee 12 years of free and compulsory education. There are 264 million children and youth out of school and 100 million young people currently unable to read. Education from the investment point of view is an input-output process. The process in terms of desirability is a function of cost-benefit, cost-efficiency and cost-effective-

ness analysis, which is measured in terms of utilisation of real resources. The cost-expenditure in education is escalating. This trend has bugged the minds of many investors in education because of the deficiency seen in the educational products. Over the years calls for accountability has become imperative because of the demand for constructive changes in our education system. In the schools, administrators and their subordinates have been said to neglect these essential ingredients in the performance of their administrative functions. The effect is that there are neglect returns and wastages in the system. Wastage of real resources, human, fiscal and materials is now rampant in the system, some resources are misallocated and misused. Huge direct and indirect loss involved is of great concern to investors. Obviously, administrators are confronted with enormous challenges as regards matter of accountability during their managerial function. Accountability in education has become very imperative considering the fact that the society expects very much from the school system. All operators in the school system have an obligation to live up to their responsibilities by making the education system very responsive, competitive and productive. Educational administrators are both accountable to the entire stakeholders in education as well as accountable for achieving the goal of education using available resources. An important conclusion from the summit was the clear focus on long-term planning and investment for sustainable development of the education sector in Nigeria. Speakers and delegates discouraged the short-term spending habits of public and non-state actors in education. According to them, education funding and development can only be sustained by establishing evidencebased accountability measures.

54 BUSINESS DAY NEWS

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Eroton E&P, operator of OML 18, spreads relief in needy homes in Port Harcourt IGNATIUS CHUKWU & INNOCENT ETENG

omes for the needy, the motherless and the elderly in Port Harcourt, Rivers State, usually filled with grief and want, came alive last week when the management of Eroton Exploration and Production Limited stepped into them with relief items and other forms of intervention. Eroton gave out support including cash, power-generating sets, home appliances and foodstuffs to three charities catering for children and the elderly across Port Harcourt. Eroton is a joint venture with the Nigeria National Petroleum Corporation (NNPC) in the operation of oil Mining License 18, which until 2014 formerly belonged to Shell in the Cawthorne Channels and areas around Asoi-Toru and Buguma local

council areas. The donations were part of the JV’s “Give Back” campaign. The gifts were given to the benefiting charities by a team of NNPC and Eroton representatives on Thursday, December 6, 2018, during a tour to the three charities. Port Harcourt Children’s Home, a childcare charity owned by the Rivers State government and run by the Ministry of Social Welfare and Rehabilitation, was given a 22 KVA power generating set to help light up the centre whose existing generator was found to grow faulty regularly. Compassionate Centre, a charity catering for handicapped children and run by the Religious Sisters of Charity, received a cash donation of N4 million in two separate cheques of N2 million each; while a deep freezer, a refrigerator, a five burner gas stove, 10 bags of rice, two bags of beans, four gallons of groundnut oil, a gallon of

palm oil, several tubers of yam and a bunch of plantain were handed to the Home of the Elderly, which is run by the Catholic Bishop of Port Harcourt, Camillus Archibong Etokudoh, and other three board members. According to Eroton’s head of business development, Dele Akiomare, the donations were Eroton’s response to challenges facing children and the elderly in society. “We want children to be children. Children are supposed to enjoy life; they are supposed to enjoy the early days before they start taking up responsibilities,” he said. During the presentation of the donations, being Eroton’s first in the give back campaign, he promised, on behalf of the NNPC/Eroton joint venture, that from henceforth, the company is going to render support to the children and elderly on a regular basis.

“So, our mission is to ensure that during this period and going forward, we make their lives better. This is the first step and I promise, on behalf of NNPC/Eroton Joint Venture, we are going to continue this. “We are going to appoint somebody to monitor cases that would undergo scrutiny and whatever the need, going forward, we would, to the best our ability, provide.” Apparently devastated after seeing the condition of children at the Port Harcourt Children’s Home, in his own personal capacity, promised to send up to N200,000 to enable a child who needed an eye surgery to get help. “I was (affected) by what I saw there because our children deserve a lot better support. The children I saw there, no child deserves that and this is the least we can do. A society that allows children to be in that state is not a decent society,” he said.

The condition of the bridge has been worsened by the array of trailers and petroleum tankers making their way to Apapa, as they have taken over one lane of the two-lane bridge, stretching inward Eko Bridge and Ijora-Olopa. The impact has been such that motorists and commuters are daily cramped in traffic snarl at the risk of their lives. Adedamola Kuti, the Federal Controller of Works, Lagos, told BusinessDay on Monday that the scope of work would include resurfacing of the bridge, changing of damaged hand railings, replacement of damaged expansion joints and the drainage system. Kuti said the Federal Ministry of Works, Power and Housing, would be leveraging the experience garnered during the just

completed 326 metres Ijora 7U-Apapa Bridge, to fix the Alaka Bridge, and therefore will take a shorter period to complete. “We hope to complete the work faster learning from our experience at the Ijora-Apapa Bridge. I believe within three-months or so, we would be done,” Kuti said. He added that most of the repair works would be carried at night hours to reduce the level of inconvenience to the public, except during the replacement of the expansion joints, which would require a temporary shutdown of the bridge. Recall that the Federal Government, on Friday, after five months of closing and barricading Ijora end of Ijora 7up-Ijora Bridge for repairs, re-opened the facility to traffic.

posted to work in the state will also enjoy the accommodation.” He said the first five units would be delivered before April 2019, noting that once completed, the state would start work on a 20-unit estate for judges by next year, which would be constructed in the Government Reservation Area (GRA). The governor said his administration had employed over 4,000 youths engaged at the various roads, building construction and other infrastructure sites across the state. He noted that the state was gradually fulfilling its electioneering promise to create 200,000 jobs for Edo people and residents. His Chief of Staff, Taiwo Akerele, and other top government officials accompanied the governor on the inspection tour.

Group urges FG not to fund 2019 elections with $322.5m Abacha’s loot

FG begins repair works on 1.4km Alaka Bridge in Lagos ome level of respite is in the offing for distraught motorists inbound Eko Bridge, as the Federal Government has begun repair works on the Alaka Bridge inward Iganmu, Lagos. The rehabilitation work, which was flagged off on Saturday, December 8, with the deployment of equipment, is coming shortly after the completion and re-opening of the Ijora 7UpApapa Bridge. The 1.4km Alaka Bridge had been in a state of disrepair for a couple of years. It is currently riddled with potholes and uneven surface. Most of its expansion joints had since given way, with serious impact on traffic flow inward Eko Bridge.

do State governor, Godwin Obaseki, has assured that the ongoing construction of judges’ quarters in Benin City, by the state government, is part of plans to reposition the state as the judicial hub in the South-South region. The governor, who said this while inspecting the houses, explained that the project was in line with his administration’s promise to build decent and comfortable houses for judges in the state. According to Obaseki, “Our goal is to ensure that by the end of 2019, we would have enough accommodation for all our judges in the state. It is not only for judges in the State High Court but also judges of the Federal High Court and the Court of Appeal. Judges who are

non-governmental organisation, Africa Network for Environment and Economic Justice (ANEEJ), has called on the Federal Government not to use fund meant for the implementation of Social Investment Programmes to finance the forthcoming 2019 general elections. David Ugolor, executive director of the group, represented by his deputy, Leo Atakpu, made the call at the commemoration of 2018 International Human Rights Day on Monday in Benin City, with the theme, ‘Stand up for Human Rights.’ He said the social investment programme fund should be protected and deployed fully to the target-

Pic by David Apara

JOSHUA BASSEY

Judicial reform: Edo intensifies work on Judges’ quarters

IDRIS UMAR MOMOH, Benin

L-R : Peter Bankole, director, Enterprise Development Centre; Bayo Rotimi, CEO, Quest Advisory Services Limited; Cecilia Olayide Amotsuka, graduand, and Olufisayo Okunsanya, business development director, Medical Credit Fund, at the graduation ceremony of healthcare professionals under the Health Management Programme of the Enterprise Development Centre, Pan Atlantic University in Lagos.

Tuesday 11 December 2018

ed vulnerable citizens and groups, saying, “Corruption affects human rights as well as the capacity of public institutions to fulfil their duty to respect and protect its citizens.” While putting the debt profile of the country as of June to about $22.083 billion, with 26 percent of the annual budget spent on debt servicing, he noted that the money could have been used to strengthen the health, education and transport sectors of the nation for the sole benefits of her citizens. “This is a challenge that requires our collective efforts. We need to come out in masses to vote for leaders that would guarantee the fundamental human rights of Nigerians both at home and in the Diaspora,” he said.

FG’s SDG on healthcare gets Broll Nigeria’s support CHUKA UROKO

ederal Government of Nigeria’s sustainable development goals (SDGs) on healthcare have got support from Broll Nigeria, who gave the support in the realisation that it could go a long way to help families. Broll, a real estate firm that offers services, including commercial broking, occupier services, facilities management, industrial and investment broking, property and project management, donated safe delivery kits at various maternity centres in Lagos, hoping that this would promote maternal health and reduce child mortality rate in Nigeria. “Our aim of providing these needs is to improve safe delivery and to reduce maternal mortality. We believe that this will go a long way to sup-

port families through the joy of safe delivery. This support will ensure that we contribute to the sustainable development goals of the government and we hope to continue doing more,” Bolaji Edu, Broll’s CEO, assured. Edu noted that the period of birth was a special time for both mother and child. “Here in Nigeria, it can also be a time of challenges when some of the utilities needed by the expecting mothers are not available,” he said, adding that this effort would do more to consolidate government’s effort at various levels to reduce maternal mortality in the country. Health experts believe that although global maternal mortality rate has reduced by 43 percent, Nigeria is still ranked as one of the countries with high maternal mortality rate in sub-Saharan Africa ahead of Sierra Leone, Central

African Republic and Chad. A joint report by WHO, UNICEF, World Bank and United Nations Population Fund on Trends in Mortality 1990 - 2015, estimates maternal deaths in Nigeria at 58,000, representing 19 percent of global maternal mortality rate. It should be noted that, with this effort, Broll has shown its willingness to work with stakeholders to reduce maternal mortality rate through the provision of these safety kits for pregnant women at public health centres. The ‘Broll Mama Kit’ was distributed to expecting mothers by a team of Broll officials at public health centres in various zones including Lagos Island Maternity Hospital, Onigbongbo Healthcare Centre, Sura Primary Health Centre, Oba Adeyinka Oyekan Memorial Health Centre and Agarawu Health Centre.

Tuesday 11 December 2018

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Eroton points to education as pillar, doles millions of naira to first 40 scholars IGNATIUS CHUKWU & INNOCENT ETENG

roton Petroleum and Exploration (P&E) has staked out education as a pillar of development, which the company will pursue vigorously in the coming years. For a start, a scholarship scheme has been flagged off in Port Harcourt, Rivers State, to build human capital development, especially in host communities. At least, 40 secondary school students carted away between 100,000 and 150,000 each from the scheme of Eroton P&E, operator of oil mining license (OML) 18. The benefiting students cut across several communities in Rivers State who host the indigenous oil company that started operations in 2014. The awards were presented last week in Port Harcourt. According to Ebiaho Emafo, CEO of Eroton, the scholarships, overall, run into millions of naira, and the awardees will be under the sponsorship of Eroton till they finish secondary education. Emafo says the reason

for granting the scholarship scheme, which is in its maiden form, is because education is one of the company’s pillars as a way of giving back to the host communities and the state. “Eroton has been in operation since 2014, and so we decided that education is one of our pillars, one of the ways we show appreciation to the communities for accepting us to work within their environment. So, we thought, education being one of our pillars, it would be good to give scholarship to young students who have done exceptionally well in their studies because we felt that the youth are the future. “By giving them this scholarships, we hope (that they) be able to complete their studies, go on to the higher education and arm themselves for life (and) possibly get employment within Eroton or employment in other companies,” the CEO states. The CEO discloses further that the company will soon provide scholarship opportunities up to undergraduate and Master’s degree levels, while assuring that the scholarship programme is sustainable as the company would

continue it without defaulting. “It is very sustainable; we are going to be working with the (host) communities for as long as our licenses are in operation. So we are going to continue to do this for the communities. There would be opportunity to sponsor university students - undergraduates. There would be opportunity to cover Master’s students and we would continue doing secondary education sponsorship as well,” he says. Responding to Eroton’s gesture, Tamunosisi Gogo Jaja, Rivers State commissioner for education, praised the company and said it was encouraging for a company that started operations in less than four years to think about giving back to the communities and the state, a feat he said many companies that had long been operating in the state had failed to achieve. “I wish to first of all thank Eroton E&P for the scholarship awards extended to the host communities. I have had (the) opportunity of discussing with one of the staff and he told me that this company is just three years old and this is what you have thought of doing.

Security agencies, obstacles to credible elections - Saraki, Dogara OWEDE AGBAJILEKE, Abuja

s the 2019 general elections draw near, Senate president, Bukola Saraki, and speaker of the House of Representatives, Yakubu Dogara, on Monday lamented the role of security agencies in promoting vote buying during elections. The two presiding officers spoke in Abuja at a day public hearing on ‘Vote Buying and Improving the Electoral Process in Nigeria.’ While Saraki said security agents were beginning to emerge as major clogs in the electoral process, Dogara, on the other hand, said the nation must not surrender to vote buying. Dogara pointed out that a

more worrisome dimension to vote buying was the alleged use of security agents and INEC officials to induce, or intimidate and coerce voters to vote for particular candidates. Condemning the use of Incident Form to bypass the lawful process of accreditation, Saraki said, “It is all too clear that security agents are beginning to emerge as major clogs in the election process. Reports of collusion with political actors to disenfranchise voters are very worrying indeed. “We cannot under any circumstances militarise elections, because that defeats the purpose of free, fair and credible polls. In an election, access to the polling units for the purpose of casting one’s vote is the bare minimum. Once a voter is denied the opportu-

nity to vote through bullying, intimidation and other forms of harassment, then vote rigging and electoral malpractice have free reign. “Let me, at this point, mention that our major concern should be entrenching global best practices in our electoral process, and ensuring that these are backed by legislations to make them sustainable and permanent. For example, the use of Incident Form to bypass the lawful process of accreditation and voting is not good for the country. We must do away with it.” The Senate president, however, said, “Nigeria cannot at this time fail, especially as the world is looking forward to what happens in the forthcoming elections.”

Olubuade, Adejumoh join Nosak Group

osak Group, an indigenous diversified business group, has announced new executive members to the group. Keji Olubuade is now the Group ICT manager and Kenneth Adejumoh as Corporate Communications manager. Keji brings on board his wealth of experience as a strategic IT leader with a dependable track record in Automotive, Real Estate, Aviation, FMCG, Industrial Equipment, and IT consulting sectors. He has attended several local and international trainings with

certifications in PRINCE2 Practitioner (Project Management), Oracle 10g Database – OCP, ITIL (IT Service Management), and several Microsoft technologies. He is also a certified IT Business Manager from Belmont University /MDE Enterprises Inc., TN, USA. In the role of Corporate Communications manager, Kenneth will be responsible for developing and executing brand communication strategies and activities to ensure the group and its Strategic Business Units maintain and enhance brand presence in the market.

He is to ensure effective communications and campaigns to increase market penetration and share of voice. He will also oversee and coordinate activities of the corporate communications department. “We welcome Keji and Kenneth on board with their broad base of operational expertise and experience. Their appointments come in tandem with our vision to deliver value and excellence in all our businesses and they have come with fresh ideas and energy to contribute to the growth of the Group,” Toni Ogunbor said, on behalf of the Group.

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BUSINESS DAY

58 BUSINESS DAY NEWS Buhari needs political will to criminalise vote buying - NASS, INEC KEHINDE AKINTOLA, Abuja

resident Muhammadu Buhari has been urged to demonstrate sufficient political will to enforce relevant provisions of the Criminal Code and anti-graft laws in the bid to end the menace of votebuying during elections in Nigeria. This admonition was given at the opening of a public hearing on vote-buying and improving the electoral processes by the National Assembly Joint Committee on INEC and Electoral and Political Parties Matters in Abuja. Some of the stakeholders that spoke at the public hearing include: Senate president, Bukola Saraki, speaker Yakubu Dogara, Mamhood Yakubu, chairman, Independent National Electoral Commission (INEC), Aisha Dukku, among others. While speaking, Dogara noted that the issue of voting buying was one of the most topical issues of the

moment, which should be addressed before the conduct of 2019 general elections. He specifically expressed grave concern over the “alleged use of the officials of the electoral umpire (INEC), and officers of security agencies to induce, or intimidate and coerce voters to vote for particular candidates. “Elections are so attractive that even pretentious democracies lay claim to holding elections just in order to confer some aura of legitimacy on their rule. But not all elections are democratic elections. It has been said that for elections to qualify as democratic, they must be competitive, periodic, inclusive and definitive. “Free, fair, credible and transparent elections therefore, is the very basis for translating the consent of the governed into governmental authority. It is democratic elections that have propelled true democracies since the 17th Century. “Indeed the Fundamen-

tal Objectives and Directive Principles of State Policy enshrined in our Constitution envisages that Nigeria shall be a State based on the principles of Democracy and that sovereignty belongs to the people of Nigeria, through which government derives its authority, powers and legitimacy. “Therefore, any form of contrivance by any person or authority to unduly influence the choice of the voter is condemnable as it is patently an assault on this constitutional guarantee. “Undue influence of voters has always existed in different forms all over the world. However the recent phenomenon of direct pricing and buying of votes as if in a market square is very disturbing. It is one of the highest forms of corruption. “The high prevalence of vote-buying in the electoral system of the country is, without any doubt, of great concern to all Nigerians and members of the global community who truly love democracy. It is disheartening

that this absurd phenomenon has assumed alarming proportions in recent times. “As citizens, we must not surrender to this criminality as we cannot do so and still expect honour. When political office holders defy the law and corruptly assume office, they will always operate as if they are above the law. “Vote buying and other sundry criminal manipulation of the electoral process in Nigeria have left our citizens in a state of unmitigated disaster. As a result, we have been married off to a mob. A mob that rules us by the example of their power nor by the dictates of law. “A mob that rules by fear as an inalienable tool rather than by courage. A mob that accepts the status quo rather than challenges it. Mobs don’t grow others, they only destroy others in order to grow themselves. “We follow the Mob because we must, not because we are receiving any sense of significance for our own lives from them”.

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Lagos commuters lose 75% of weekly working hours to traffic DANIEL OBI

f you are a Lagos resident and sometimes wonders what happens to your 24 hours in a day, then here is part of the answer: commuters in Lagos spend an average of 30 hours on traffic weekly. This is according to finding of a research by JCDecaux Grace Lake Nigeria. The research took about 18 months to conduct, and confirms that the traffic challenge in Lagos is impairing productivity in the city, Nigeria’s commercial capital. It is also the country’s largest city and indeed Africa’s most populous. The research also confirms that traffic is the second annoying issue to Lagosians. In some companies, the working hours are from 8am to 4pm, giving a total of eight hours per day or 40 hours per week for the five days, Monday to Friday. The finding of this research thus means that an average commuter who works in such a firm spends the equivalent of 75 percent of a week’s total working hours commuting. Gridlock on Lagos roads has worsened in the past few years owing to several factors: arrow roads, increased number of vehicles on the roads, indiscipline of road users, and congestion

at Apapa. The deteriorating traffic situation is giving both the state government and commuters serious concern. In some cases, commuters invest over three valuable hours for a journey of just 10 kilometres within the city. In the past, traffic snarls in the city were limited to some places. Those places were regarded as no-go areas, and if one for any unavoidable reason had to pass through them, then he must be prepared. Now, the “go slow” snarl has spread virtually round the state, and nobody is immune from its venom. The cost of the traffic, which has become perennial, is not only on precious time but also on health and economic development. Based on this, the company has put together a public service project that can be part of the solution to traffic management in Lagos. The company, according to Mark Cooper, CEO of JCDecaux for sub-Saharan Africa, came up with Lagos Transport Information System (LATIS), an e-information board that gives drivers real-time information on traffic. Some of the JCDecaux Grace Lake digital billboards are demarcated, with one side serving the LATIS purpose.

Why oil marketers suspend strike OLUSOLA BELLO

T L-R: Emeka Obegolu, president, Institute of Chartered Mediators and Conciliator (ICMC); Adetokunbo Kayode, president Abuja Chamber of Commerce and Industry (ACCI), and Adesoji Adesugba, provost of the Business Entrepreneurship Skills and Technology (BEST) ACCI, during the ACCI 28th annual general meeting in Abuja. Picture by TUNDE ADENIYI

CBN includes fertiliser in list of items restricted from accessing FX HOPE MOSES-ASHIKE

entral Bank of Nigeria (CBN) on Monday included ‘fertiliser’ in the list of items restricted from accessing foreign exchange. In a circular signed by Ahmed Umar, director, trade and exchange department, the new policy takes effect from December 7, 2018. The CBN on July 1, 2015, restricted accessibility of foreign exchange to the importation of 41 items that are competitively produced within Nigeria. The circular read: “In the continued effort to sustain

the achievement recorded from the classification of 41 import items as “not valid for foreign exchange”, in the Nigerian foreign exchange market, authorised dealers and general public are hereby notified of the inclusion of “Fertiliser” on the list effective December 07, 2018.” However, the CBN said it would ensure that transactions (Form “M”) on fertiliser for which payments were outstanding were settled at the appropriate settlement dates. The policy has resulted in massive investments and the establishments of cottage industries that now engage in the production of the restricted items across

Nigeria, the CBN said, adding that the growth and employment benefits have been phenomenal. However, in a letter to all banks on Monday, signed by Kevin Amugo, director, financial policy and regulation, the CBN said the information available to it indicated the circumvention of the policy, as the restricted items were being dumped in the country. The implications are that the growth and employment benefits arising from the policy may be eroded if not checked. Consequently, the CBN said its economic intelligence unit in collaboration

with the Economic and Financial Crimes Commission (EFCC) would commence immediate investigation of the accounts of the corporates and entities engaged in the unwholesome act with a view to visiting severe sanction on all the culprit. Such sanction would among others include blacklisting the corporates and their directors, closure of their bank accounts and restricting them from maintaining any bank accounts in any bank under the CBN remit, adding that banks that provided their platforms for such economic abuses would also be appropriately sanctioned.

he intervention of the National Assembly through its committee on downstream and officials of the various unions in the oil and gas industry, which are said to have had constructive engagement with Federal Government officials, has made the oil marketers suspend their intended strike. The unions involved include Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), National Union of Petroleum and Natural Gas (NUPENG), National Association of Roads and Transport Organisation (NARTO), and the Petroleum Transport Drivers (PTD). BusinessDay learnt that it was impressed on the government by these pressure groups that allowing the strike to take place would not be too good both for the economy and the government, especially when it has not resolved the issue of minimum wage. It was after these groups had talks with government and got assurance that the mediators decide to reach out to the marketers and urged them to give the

government the benefit of doubt by suspending their action for a while. Consequent upon this, the marketers had to reconsider their position and gave the government another five days of grace to see what would happen. According to Olufemi Adewole, executive secretary, Depot and Petroleum Products Marketers Association (DAPPMA), the association had to revise it earlier decision at about 1.30am on Monday morning to mitigate the possible impact it would have on Nigerian. “We had already given a directive that the depots across the country should shut down from loading petroleum products effective from 12-midnight today (Monday). He however stated that if the government failed to act appropriately they would resume the action without given any notice. “The unions have resolved to recall its disengaged personnel for five days to give the Federal Government’s team the opportunity to conclude its process of paying marketers the full outstanding of N800 billion with the first trench being the amount already approved by the Federal Executive Council (FEC),” Adewole said.

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Global investment outlook for 2019 signals NDDC scholar who saved $1bn in investor resilience to capture opportunities Canada’s road project design mo IGNATIUS CHUKWU

MODESTUS ANAESORONYE

nvestors will need to weather more volatility in order to capture opportunities in 2019, according to the Year Ahead report from UBS, the world’s leading wealth manager. Global economic growth will decelerate next year to 3.6 percent from 3.8 percent in 2018, and company earnings will grow at a slower rate. However, a 2019 recession still looks unlikely, and the price of many financial assets has already moved to reflect uncertain prospects. UBS Global Wealth Management’s chief investment office (CIO) enters the year with an overweight position in global equities. However, as the market cycle matures, investors should diversify

and hedge their portfolios to guard against volatility as well as political and other risks. They should also take advantage of growth in fields like sustainable and impact investing, and pockets of value where financial asset prices are excessively low. Mark Haefele, chief Investment officer at UBS Global Wealth Management, says: “Investors should retain positions in global equities but plan for market volatility. A slight slowdown in economic and earnings growth doesn’t mean no growth, and the recent sell-off has left a number of assets more attractively valued, but investors must also take into account the tense geopolitical environment as well as monetary policy tightening.” The CIO recommends

that investors should retain an overweight position in global equities as we enter 2019. Nevertheless, they should also hedge against volatility by holding overweight positions in medium-duration US government bonds and the Japanese yen, as well as focusing on quality companies and avoiding excessive credit risk. They should also look to neglected areas of the market, including value stocks in the US and emerging markets, energy equities globally, and shares of financial companies in the US and China. Sustainable and impact investing continues to provide longer-term growth opportunities, as do emerging market and Japanese stocks, and US dollar-denominated emerging market sovereign bonds.

he good name brought by a Niger Delta Development Commission (NDDC) PhD scholar in far away Canada is said to have boosted the determination and resolve of the intervention agency to continue its postgraduate scholarship scheme. The Commission has therefore flagged off the second year of its support for the ‘Moot Court and Mock Trials System’ aimed at boosting court competence of future legal practitioners in the oil region. It is also to boost educational development in the region. The Commission mentioned several feats topped by the feat of one Charles Igwe (PhD scholarship student) who made waves in Canada by saving $1 billion in the $3.67 billion Turcot Road interchange project. Disclosing the motivation in the education sector, -L-R: Duncan Mackay, acting interim general manager and head, Management Centre, South Africa Roche Diagnostic; Alash’le Abimiku, executive director, International Research Centre Excellence Institute of Human Virology; Nqobile Ndlovu, team leader, African Society for Laboratory Medicine, and Taofik OlorukoOba, country head, Roche Diagnostics, during a press briefing on the preventing and controlling the next epidemics: the role of the Laboratory in Abuja. Picture by TUNDE ADENIYI.

EU earmarks €500m to tackle violence against women, girls in Nigeria, others INNOCENT ODOH, Abuja

igeria is one the countries to benefit from €500 million European Union spotlight initiative aimed at ending violence against women and girls in the country and others. Head of the EU Delegation to Nigeria and ECOWAS, Ketil Karlsen, made this known at the EU Delegation event to mark the end of the “16 days of activism against gender-based violence campaign’’ on Monday in Abuja. He noted that the initiative to be launched on global stage would respond to all forms of violence against women and girls. The fund’s objective is to eliminate domestic and family violence, sexual and gender-based violence and

harmful practices, ‘femicide,’ trafficking in human beings and sexual and economic (labour) exploitation. “We are adding our contribution as EU, supporting this campaign. We are also supporting a number of projects. Very soon the EU will launch a spotlight initiative on the global stage with €500 million investment. Nigeria is one of the key and pilot countries. “That is because we know that so much needed to be done to make sure that not just to tackle early marriage, to make sure that Internally Displaced Persons (IDPs) are treated. “To make sure that there is fundamental understanding and respect for women from everybody,’’ Karlsen said. He called for concerted effort by all stakeholders to end violence against women and girls, saying, “The message

we are passing here today is that women rights are fundamental rights that must be protected. “We call out to all men and boys that it is not been manly to treat girls wrongly, on the contrary we need to protect, we need to care, we need to make sure that there are equal opportunity to all.’’ The EU ambassador said further that the campaign against gender-based violence campaign was important as the statistics on it was becoming worrisome, saying abuse of daughters, wives, sisters, friends must fundamentally stopped. Karlsen that the closing date of the 16 days activism campaign was historic as it coincided with the 17 years of adoption of universal declaration of Human Rights of United Nations by all the participating countries of the world.

the managing director of NDDC, Nsima Ekere, stated at the Moot Court and Mock Trial competition at the Rivers State University that the Commission would continue to support education and build infrastructure. “This is why, in this institution, you will find that the best hostel was built by the Commission as one of the 18 NDDC hostel projects in universities across the Niger Delta region,” Ekere said. Ekere, who was represented by the director of Special Duties, Princewill Ekanim, said: “Beside infrastructure, we have sponsored over 1411 postgraduate students to different foreign universities in nine skill areas, including oil and gas law, plus another 200 just to join.” Mentioning other feats in the area of education support, the NDDC boss stated thus: “The latest batch would join other outstanding scholars such as Ubong Peters, a Ph.D student who

won the three-minute thesis competition in Australia, and Augustine Osarogiagbon of Memorial University who completed his PhD in less than the stipulated time and was offered a dual PhD with two graduate assistants to work with. There is Charles Igwe, who, while studying in Construction Engineering at Concordia University in Canada, saved the Montreal Area Municipality over $1 billion by redesigning the TURCOT interchange road construction project costing $3.67 billion.” He said the Commission was also investing in e-learning because it is the future of education. “Our partnership with the government of Sao Tome and Principe is designed to channel their excess internet capacity to the Niger Delta so that our people can enjoy the robust benefits and help build the new generation we are helping to facilitate.”

NSE: Index closes southward with 0.82% loss, amid Yuletide mood

igerian Stock Exchange (NSE) All-Share Index resumed trading for the week on Monday southward, shedding 0.82 percent. The News Agency of Nigeria reports that the index closed lower at 30,614.73 compared with 30,866.82 achieved on Friday, following huge loses posted by some blue chip. In the same vein, the market capitalisation, which opened at N11.268 trillion, dipped N92 bil-

lion or 0.82 percent to close at N11.176 trillion as investors prepare for Yuletide celebrations. Nestle topped the losers’ chart, dropping by N64 to close at N1,485 per share. Mobil Oil followed with a loss of N14.80 to close at N160, while Nigerian Breweries dropped N2 to close at N78 per share. UACN went down by 70k to close at N9.30, while Stanbic IBTC Holdings depreciated by 50k to close at N46 per share.

TCN targets 20,000mw by 2021

ransmission Company of Nigeria (TCN) is working toward achieving a transmission capacity of 20,000 megawatts (mw) by 2021, its managing director, Usman Mohammed, says. Mohammed, who briefed State House correspondents on Monday at the Presidential Villa, said the capacity of transmission was a combination of the capacity of the transformers and the lines. According to Mohammed, TCN had installed over 3,000mw since he assumed office in February. “But you cannot say you have added the whole of that capacity; some of them are constrained by lines. “The capacity of transmission in 8,100mw as of now but this cannot translate into capacity into houses. There has to be a balance of generation and demand and then supply.

“The total load that is connected to our network which is coming from the distribution is not more than 5kva; that is the problem. The capacity of TCN before 2017 was 5,000; it increased to 7,124 in December 2017 and now it is 8,100mw. “We established the transmission, rehabilitation and expansion programme and the developmental objective is to rehabilitate, stabilise and expand the wheeling capacity of TCN to at least 20,000mw by 2021. “It is supposed to be four years; if you look at 2017 to 2021, it is four years; so this is the plan; we are on track and I believe we are going to achieve that target,’’ he said. He also said that efforts were being made to expand the combined capacity made up of generation, distribution and transmission. According to him, it is more difficult to build a

transmission network than to build that of distribution. The managing director said that many of the equipment needed for distribution were manufactured in Nigeria while none of the transmission equipment was manufactured in Nigeria. “When we came in, there were eight transformers in failed contracts but TCN engineers had already installed six out of the eight transformers. The remaining two are in the various stages of being installed. “Some transformers on our network are not up to standard, so, we decided not to install them. We have taken a decision to standardise our transformers; we have hired a consultant and we have a standard design for our transformers. “So, all those transformers that get easily burnt will not happen again,’’ he said.

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news you can trust I TUESDAY 11 DECEMBER 2018

INSIGHT/INNOVATION The “progressives” from the West and the support for President Buhari

Ogho Okiti Dr. Okiti is the president, Time Economics Ltd @ Dr_Okiti 081.7153.0058

rowing up in the 1980s, my first contact with what Nigerian politicians describe as progressives was the establishment of 400 secondary schools by the then governor of old Oyo State Chief Bola Ige in 1980. That singular decision expanded access to education for thousands of children in the state. Now, to better understand the ramifications of that policy, I need to describe myself a bit. As my name will probably suggest, I was born to parents from the old Bendel state. My dad is from Kiagbodo in Burutu local government of Delta State, while my mum was from Benin. We migrated to Ibadan after my dad got a job at the International Institute of Tropical Agriculture (IITA) as an accountant. Mind you, he applied for the job from Benin, following an advertisement. Very quickly we settled, and joined many other growing number of Nigerians from other parts of Nigeria that started to settle in Ibadan.The University of Ibadan, at the time, was especially a melting

PROPHYLAXIS

Ayuli Jemide Ayuli Jemide is Founder and Lead Partner of Detail Commercial Solicitors. An entrepreneur, public speaker and writer. Email: AJ@ayulijemide.org Twitter: @JemideAyuli

ne of the buzz words during an election period is ‘’corruption’’. Candidates are being accused of corruption or candidates are promising the electorate that they will tackle corruption if voted into office or incumbents are being measured on how well they tackled corruption. Corruption is just a hot topic from different perspectives and it is not a topic that will fade away anytime soon in Nigeria. Alan Greenspan is an American economist who served as Chairman of the Federal Reserve of the United States from 1987 to 2006. His famous quote is that ‘’Corruption, embezzlement, fraud, these are all characteristics which exist everywhere. It is regrettably the way human nature functions, whether we like it or not. What successful economies do is keep it to a minimum. No one has ever eliminated any of that stuff.’’ Alan Greenspan thinks corruption will never be eliminated and I daresay I agree with him. I think the challenge therefore is to reduce

pot for academia, irrespective of where you were from. But it was not only the university that attracted skills from outside the city and region, other research centres in Ibadan, multinational companies, and enterprises springing up in the city also did. I gave a little bit of my history and background to demonstrate that, as a young man, I was really enamoured by the politics of the South West, the politics of the Yoruba. The politics and the quest for power was interesting, and it was interesting because it was for a purpose – transform the lives of people. In school and in life, I understood the role of Chief Obafemi Awolowo played. He was larger than life, and regarded as the father of the region and the country’s progressive politics. And as a young man, you must be an ingrate not to understand the weight of the achievements of this powerful politician. The first television station, Liberty stadium, the most ambitious secretariat of any kind in Nigeria (even compared to the recent one built in Abuja), Cocoa House Ibadan, and the Odua Group of Companies are all to his credit. Now, times change, and my economics may not even take me in the direction of Chief Awolowo today, but there are two ingredients that he embodied that makes one wonder if what APC that christen themselves progressives today actually understand what it means. The first is that Chief Awolowo demonstrated that a progressive politician must be ambitious. We are not referring to ambition by the number of convoys or the size of their security vote. We are referring to ambitions to take people out of poverty. Ambitions underlined by serious and sustained appetite for excellence. The second point about being progressive is inclusiveness. Read through the history of the Awo era and his adherents that followed in Oyo (Bola Ige), Lagos (Lateef Jakande), Ambrose Alli (Bendel State) etc, they were

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their manifesto may be progressive, ambitious, inclusive, and exactly what Nigeria and Nigerians need. It may have truly been about change, but these politicians are not progressives, nor are they inclusive. They are what a friend described as “jeun jeun” politicians

comfortable in their skin in the quest for excellence, not only for themselves, but for others also. They were so particular about the role of education in the prosperity of nations that they were the first to set up universities, including Ondo, Ogun and Bendel (now Ambrose Alli) State Universities. So, while there is no doubt in my mind that those ambitions seemingly left our politics following the disastrous reign of the military in the 1980s and 1990s, there was a slight hope that the progression of those that have labeled themselves progressive politicians will change the fortunes of Nigerians when they arrive at the centre. To buttress their progressive credentials, their manifesto included the amendment of constitution towards the devolution of powers to states (but alas 4 years is too short for them), strengthen INEC to re-

duce and or eliminate electoral malpractices (but we are now told the bill is too close to election), restructure government for a leaner, more efficient and adequately compensated public service (they will not even sign off on minimum wage), and begin widespread consultation to amend the constitution to enable states and local governments to employ state and community police (but they are arresting people for cybercrime). Today, they are so ashamed, so they only promise us Next level (whatever that means). Now, take their most important policy – trader moni. This is the most pedestrian and shallow policy towards the reduction of poverty. This policy is selective, given that not all those that fulfill the criteria actually receive it, extremely biased, with the focus on areas it can be used to bolster their support for 2019, and incredibly non transparent, and so its anyone guess the magnitude of loophole for corruption. Worse, it is not tied to any form of production. But when some criticize this policy, they argue back that we allowed multi billions as loans to those that have access to government. However, no one will condone the access to multi billion loans just by the very few. Worse still, the progressives in power have done nothing about it in four years. Also, both the billion naira loans and the trader moni loans are underlined by insincerity of purpose. In conclusion, their manifesto may be progressive, ambitious, inclusive, and exactly what Nigeria and Nigerians need. It may have truly been about change, but these politicians are not progressives, nor are they inclusive. They are what a friend described as “jeun jeun” politicians. If you do not understand what jeun jeun politicians are, ask a friend. They will tell you they are the ones without principles. They are not adherents of Awo principles. I thank you.

Seven feeders of corruption it to the barest minimum. To do this, I think we need to first understand the factors that feed corruption and make it thrive. If we can starve it from its source then you are on your way to reducing its weight. The first thing that feeds corruption, particularly with public servants is that the pay is actually very poor and not enough to meet basic needs. In one word we can call it poverty. Today in Nigeria, the monthly salary of a police recruit is N9, 019.42, while his annual salary amounts to N108, 233. When he gets promoted to police constable his monthly salary becomes N43, 293.80, while his annual salary is N519, 525.6. How many people on this kind of salary who are exposed to the elements (sun, rain, violence) would not accept or demand bribes? The day anyone accepts the job as a policeman you know that you are going to have to generate sundry income to make ends meet. This theory applies to judges. Many people join the judiciary for the sundry income – favours,

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The seventh and perhaps most dangerous feeder of corruption is when the anti-corruption agencies or law enforcement agencies become tools in the hands of government or private citizens to settle scores. And you will agree with me that this is where the pack of cards come tumbling down and hope ebbs into hopelessness

bribes, and extra curricula payments. Many years ago, I had a friend who was a fantastic litigator but he was still struggling to survive in the early days and he said to me one day he was thinking of applying to become a magistrate and I said ‘’but magistrates are poorly paid how will you survive’’. His response was swift and simple: ‘’litigants will bring goats to my house, I will never lack’’.With this mindset, the goats will surely keep coming and so will compromise. The second phenomenon that feeds corruption is the fact that to stay relevant in politics in Nigeria one must have enough money to throw around as you ply your trade. Therefore, many governors fight tooth and nail to ensure they have a proxy based 3rd, 4th and 5th terms. They enthrone proxies so they can continue to steal from the till. That is why career politicians feed fat on public funds so they have enough stash to continue to strut their stuff when they become ex-governors. Until we can stop such grand larceny such monies would only go to buy judgments, buy votes, compromise our agencies and institutions. Theodore Roosevelt, who served as America’s 26th President (19011909) said: “A man who has never gone to school may steal a freight car; but if he has a university education, he may steal the whole railroad.” Many of these politicians own the railroads! The third catalyst that nurtures corruption is the fact that there is no social welfare system that guarantees a Nigerian public servant or even a private citizen a basic standard of living. Judges and policemen also want to send their kids to the best schools because the public school system has broken down. They want to have enough money to afford healthcare because the healthcare system is in the dumps. They want to own a retirement home but there is no housing policy or affordable mortgage system to make this dream come true. To afford what should otherwise be basic amenities in their twilight they must have a side hustle

and accept favours or cut the chase and simply ask for bribes. The fourth feeder of corruption is opportunity. Many institutions have such porous accounting checks and balances that the cash is simply there for the taking on a discretionary basis. Have you ever wondered why people steal pension monies that are supposed to be the commonwealth of millions of citizens? How? The fifth feeder is inflation – if the cost of goods and services continues to increase then actual income is shrinking. Inflation in Nigeria in 2014 was 8.05%, in 2015 it became 9.01%, in 2016 it was 15.7% and became 16.5% in 2017. So, incomes have shrunk by 8% over the last 4 years. It is clear that many more people would have accepted and demanded for more bribes in this period to subsidize their salary. The sixth feeder of corruption in Nigeria is the bottom to top approach to fighting corruption. Our anti-corruption agencies spend more time castigating our institutions – civil service, judiciary, police – for being corrupt without corresponding efforts at fighting those who are actively corrupting our institutions. These people who can afford to give six to nine-digit bribes in foreign currencies are the people enticing our judges. If nobody makes judges offers, perhaps they would simply do their jobs. These high net-worth individuals and corporates (Nigerian and foreign) are the people who have high stakes that require mind blowing bribes. Until major corporates begin to feel the heat from our anti-corruption agencies, we would only be scratching the surface in the fight against corruption. The seventh and perhaps most dangerous feeder of corruption is when the anti-corruption agencies or law enforcement agencies become tools in the hands of government or private citizens to settle scores. And you will agree with me that this is where the pack of cards come tumbling down and hope ebbs into hopelessness.

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