Businessday 11 may 2018 by BusinessDay

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… and 3 other things learnt from S&P conference LOLADE AKINMURELE

lobal ratings agency Standard and Poor’s held its annual Nigerian ratings and capital markets conference on Thursday. Here are four things we learnt at the event which held at the Wheatbaker hotel Ikoyi. What Buhari’s probable second term could mean for economy President Muhammadu Buhari has overwhelmingly disappointed some Nigerians, with his administration growing a penchant for dragging on badlyneeded economic reforms to lift inclusive growth. It took the 74-year old leader Continues on page 4

Inside INEC urges potential voters to go for registration P. 4 The rise and rise of OGE MODIE

Adidas sales decline as World Cup date approaches

Sell

$-N 361.00 364.00 £-N 491.00 501.00 €-N 422.00 432.00

news you can trust I **friDAY 11 may 2018 I vol. 15, no 52 I N300

What a Buhari victory in 2019 could mean for economy

Buy

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FMDQ Close Foreign Exchange Market

Spot $/N

I&E FX Window 361.36 CBN Official Rate 305.75

fgn bonds

Treasury Bills 3M

5 Years

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1.09 12.77

0.25 12.41

0.18% 13.43%

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0.08% 13.10%

Leadway, AIICO, NEM, CRe, AXA M, FBNIns, CHI well capitalised for big ticket risks Solvency margins above 100% regulatory benchmark

Modestus Anaesoronye

nsurance industry regulator, the National Insurance Commission (NAICOM) has confirmed that leading insurance companies in Nigeria including Leadway Assurance Company Limited, AIICO Insurance Plc; NEM Insurance Plc; Continental Re-

insurance Plc, AXA Mansard Insurance Plc; FBNInsurance and Consolidated Hallmark Insurance Plc have strong solvency margins well above the regulatory benchmark of 100 percent. NAICOM is the apex regulator for the Nigerian insurance industry and is governed by the Insurance Commission Act 1997 and Insurance Act 2003.

Section 24(2) of the Insurance Act 2003 stipulates that the solvency margin of an Insurer shall not be “less than 15 per cent of the gross premium income less reinsurance premiums paid out during the year under review or the minimum paid up capital whichever is greater”. In other words, the solvency margin assessments are based

S/NO COMPANY

GROSS SOLVENCY MARGIN %

SOLVENCY MARGIN SURPLUS

NEM INSURANCE PLC

302%

202%

2. 3. 4.

AIICO INSURANCE PLC LEADWAY INSURANCE LTD FBN INSURANCE LTD

195% 645% 486%

95% 545% 386%

5. 6. 7

CONTINENTAL RE PRESTIGE INSURANCE PLC WAPIC INSURANCE PLC

168% 377% 385

68% 277% 285%

8. 9. 10. 11. 12.

LAW UNION & ROCK INSURANCE PLC LASACO INSURANCE PLC AXA MANSARD INSURANCE PLC CONSOLIDATED HALLMARK INSURANCE PLC CUSTODIAN & ALLIED INSURANCE LTD

184% 156% 126% 156% 504%

84% 56% 26% 56% 404%

13.

CUSTODIAN & ALLIED ASSURANCE LTD

248%

148%

on admissible assets only, as inadmissible assets are normally excluded in line with section 24 (1-4) and (13) of the insurance Act 2003. According to the Commission, these companies have strong solvency margins (ratios) and strong capacities that enable Continues on page 2

2019 elections: Obasanjo’s CNM transforms into political party ... Merges with ADC RAZAQ AYINLA, Abeokuta

he three horse race presidential poll for 2019 Nigeria general elections seems to have begun with the fusion of Coalition for Nigeria Movement (CNM) created by former Continues on page 4

Source: NAICOM

The Solvency margin assessments are based on admissible assets only, as inadmissible assets are normally excluded in line with Section 24(1-4) and (13) of the Insurance Act 2003

Watch out for BusinessDay MTN preIPO Equity Research Report out Monday

2 BUSINESS DAY NEWS

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Friday 11 May 2018

urges potential voters Iran’s deal: MTN may lose $237m INEC to go for registration Dipo Oladehinde

TN Group, South A f r i ca n t e l e coms giant, says United States President Donald Trump’s decision to pull out of the nuclear accord with Iran may make it difficult to repatriate $237 million of its fund in the country, which it has being operating in since 20o5. Iran is MTN’s second-largest market with 43 million customers at the end of 2017; MTN Group Ltd. said efforts to repatriate about 200 million euros ($237 million) from its Iranian unit will become tougher after U.S. President Donald Trump reinstated economic sanctions on the Islamic republic. MTN issued a statement saying: during 2018 MTN Group has repatriated approximately $104 million from MTN Irancell including $72.44 million relating to the full 2017 dividend due to MTN as well as a further $32 million of historic dividends, it said.

“The remaining balance due to MTN is about €200m,” MTN said. Irancell is an Iranian telecommunications company that operates Iran’s second largest 2G-3G-4G-4.5G mobile network, and fixed wireless TD-LTE internet services. The company’s joint venture in 2006 with MTN Group owning 49percent and Iran Electronics Industries owning 51percentwere launched in Iran. The company said this decision will “limit the ability of MTN Group to repatriate cash, both dividends and loans, from MTN Irancell”. “We will continue to monitor the situation including the response of the Iranian authorities and the other JCPOA members,” the company announced. Trump on Tuesday signed a presidential memorandum withdrawing from the 2015 agreement and said he is planning to reinstall sanctions on the Iranian regime. “It is clear to me that we cannot prevent an Iranian nuclear

bomb under the decaying and rotten structure of the current agreement,” Trump said from the White House. “The Iran deal is defective at its core. If we do nothing we know exactly what will happen,” US President said. Early this month, Africa’s biggest mobile phone operator recorded 9.1 percent increase in its revenue for the first quarter of 2018 ended March 31. The rise in revenue of the South African telecom firm was due to growth in Nigeria and Ghana, where voice revenue expanded. A further breakdown of the report revealed that MTN Group voice revenue grew by 5.4 percent. The group’s data revenue was up by 26.9 percent, as it executed on dual-data strategy, ensuring appropriate data coverage across their footprint. The MTN group said they have made good progress on the IPO processes in Nigeria, and they aim to conclude it during 2018.

... As BusinessDay publishes list of registration exercise venues in Lagos Monday Iniobong Iwok

ollowing the widespread complaints by many prospective voters in Lagos about their inability to track the venues for the continuous voter registration to enable them prepare for the forth coming general election, the Independent National Electoral Commission (INEC) in the state has urged residents to avail themselves of the opportunity of the published venues. The comprehensive list of the venues for the rotational schedule in Lagos State is available at INEC’s offices in the state. The list, containing the venues in the twenty local government areas of Lagos State, obtained by BusinessDay will be published in full in the Monday edition of the newspaper. To be published also is the transfer procedure for those who wish to transfer from one part of

the state to the other as well as those who want to transfer from one state to the other. A breakdown of the registration venues released to BusinessDay by the Lagos office of INEC indicates that registration centres are rotated within the INEC offices in the LGAs and some other special registration venues mostly public primary and secondary schools across the state. Recall that there have been so much complaints over the seemingly difficulty in obtaining the permanent voter’s card (PVC) ahead of the 2019 general election. INEC had last year April commenced a continuous voter registration exercise, citing inadequate funds to continue with the former format in which the commission carried out the exercise in wards across the country.

Leadway, AIICO, NEM... Continued from page 1

them meet claims obligations, as shown in their 2017 financial statements approved by the Commission. In a statement issued by the NAICOM, confirming the companies’ solvency margin strengths, the Commission said “while not holding brief for any company, NAICOM, being the apex regulatory and supervisory body of the insurance sector in Nigeria does hereby affirm that the companies mentioned above are financially strong and solvent. In document accessed by BusinessDay from NAICOM, NEM Insurance Plc has gross solvency margin of 302 percent and a solvency margin surplus of 202 percent; AIICO Insurance Plc has gross solvency margin of 195 percent and a solvency margin surplus of 95 percent; Leadway Assurance Company Limited has gross solvency margin of 645 percent and a solvency margin surplus of 545 percent; Continental Reinsurance Plc has gross solvency margin of 168 percent and a solvency margin surplus of 68 percent; Prestige Assurance Plc gross solvency margin of 377 percent and a gross solvency surplus of 277 percent; and Wapic Insurance Plc gross solvency margin of 385 percent and a solvency margin surplus of 285 percent. Others: Law Union and Rock have gross solvency margin of 184 percent and a solvency margin plus of 84 percent; Lasaco Assurance gross solvency margin 156 percent, while solvency margin surplus is 56 percent; FBNInsurance gross solvency margin 486 percent, and solvency margin surplus 386 percent; AXA Mansard 126 percent, and solvency margin plus 26 percent; Consolidated Hallmark gross solvency margin 156, and solvency margin surplus 56 percent; Custodian & Allied

L-R: Abidemi Ademola, legal director and company secretary; Nnaemeka Achebe, chairman, board of directors, and Yaw Nsarkoh, managing director, all of Unilever Nigeria plc, during the 93rd annual general meeting of Unilever Nigeria plc in Lagos, yesterday.

Insurance (general) gross solvency margin 504 percent, and solvency margin surplus 404 percent; while Custodian and Allied Assurance (life) gross solvency margin is 248 percent, while solvency margin surplus is 148 percent. BusinessDay had published a

story on May 8 indicating that five top insurance companies have solvency margins that are below 150%. But we have since found out that our mode of calculating the solvency ratios is totally different from that used by the insurance regulator in estimating solvency

margins and this is backed by the Insurance Act, 2003. We have since retracted our story and expressed our apologies to the concerned insurance firms and our reading public in line with our commitment to remain a credible and trusted platform for business and

Re: Solvency ratio of 5 insurers below regulatory threshold

he attention of the Ma na g e m e nt, B o a rd o f D i re c t o r s, S ha re holders and other Stakeholders of AIICO Insurance Plc has been drawn to a publication by Business Day n e w s p a p e r, d a t e d Ma y 8 , 2018 with the caption “Solvency ratio of 5 Insurers fall below regulatory threshold” where AIICO Insurance was named as having solvenc y ratio of 55%. The report is completely inaccurate as it is not based on

established facts. AIICO’s financials which was approved by The National Insurance Commission (NAICOM) has since been published in the public domain, including The Nigerian Stock E xcha ng e s h ow s s o l ve n c y margin based on extant laws at 195% contrary to the alleged 55% in Business Day. AIICO’s submission of 2017 financials to The Nigerian Stock Exchange can also be referenced on their portal by following the link below:

Our solvency position is also stated on page 114 of our 2017 Annual Report, which has been attached for ease of reference. AIICOhas brought this issue to the attention of NAICOM and other vital stakeholders for necessary action. While we take necessary corrective measures, we urge the general public to kindly accept our assurances of unwavering commitment to best practice and service excellence.

economic news. Insurance companies in Nigeria have proven in recent times that they are liquid and have the required capacity to meet claims obligation when losses crystalise. As at 2016 financial year, underwriting companies in Nigeria paid claims totaling N110 billion. According to a 2015 Pwc report, the Nigerian insurance industry is ranked 62nd in the world and has a total premium volume of $1.64 billion. Insurance premium penetration rates of 0.7% of GDP, is ranked 87th in world terms, and average premium per capita of $9.4, reflecting an industry that is still struggling to gain acceptance. But in order to improve penetration levels, the National Insurance Commission (NAICOM) launched the Market Development and Restructuring Initiative (MDRI) in 2009, to among others, enforce compulsory insurances and eradicate ‘fake’ that is procured by motorists from unregistered insurers in the country.

BUSINESS DAY

WOMEN’S HUB

Friday 11 May 2018

World Maternal Mental Health Conference

Practically in Our Environment: Approaches that Work, The Influence of Environment on Maternal Mental Health: Social Support and the Role of /New/ Social Media and Improving Early Detection and Access to Maternal Mental Health Services (Research Training, Protocols). “Our goal at PSN Africa is to ensure no woman in Nigeria suffers alone. Mothers need all the support they can get during the perinatal period. We are more than ever committed to educating women across Nigeria about Postpartum depression. Onyedikachi Ekwerike, Founder, PSN Africa said. “I greatly commend the work PSN Africa is doing to raise awareness and support women struggling with postpartum depression, it is such an important work that everyone should support.” Femi Olugbile, Former Permanent Secretary, Ministry of Health, Lagos, stated.

Looking beyond the stigma KEMI AJUMOBI

he 2nd annual World Ma t e r n a l Me n t a l Health Conference in Nigeria brought together the maternal mental health stakeholders in Lagos Nigeria to learn, share experiences, network and proffer workable solutions to maternal mental health problems in Nigeria. The event also featured women who shared their personal experiences. Many of whom were helped to recover from postpartum depression by PSN Africa. The theme for this year was “Looking Beyond the Stigma”. The conference featured international high level professionals;

Against All Odds

y name is Benoite. In September 2008, my partner had a headache for three days. He’s never been to the doctor before – he was raised on an island and never had any type of health care. I knew it was serious when I offered to take him to the ER and he agreed. Three days later, he was diagnosed with AIDS and a raging case of cryptococcal meningitis. His CD4 count was just 3. I went for a rapid test in the clinic attached to the hospital and never expected the answer to be that I was positive. I fell to the floor, cried like I was in a soap opera, and asked: “who’s going to raise my children?” The tester was so amazing, so helpful in talking me down from this reaction, telling me he’d known people living with HIV for 25+ years. I latched on to those words like a life vest those first few months. I was paralysed with fear and couldn’t bring myself to test my

there were expert speakers from mental and public health sector, midwives, mothers and media personalities who spoke about the challenges, approaches, treatments and intervention modules that could work in managing postpartum depression in Nigeria. “I wish every woman was at this event. The Maternal Mental Health conference was the true definition of support. I almost cried when our warrior mums, the survivors of PPD braved the audience to share their story, some still surviving. God truly bless PSN Africa because they are really touching a lot of lives! Well done for a very well put together event, thank you for inviting me to speak, definitely

will be looking forward to future events!’ Shirley Anne Bello Psychologist and Director of Iyabeji Online, said. Femi Omololu, Head of Clinical Services and Training, Island Maternity Hospital, Lagos, said “Thanks so much for the opportunity and the exposure. I learnt so much that will definitely positively impact my practice and training of others. Keep up the good work.” The participants also shared their experience. One of them was Lolo, O.A.P on WAzobia FM. According to her, “Postpartum depression is real; we need to break the stigma and keep the conversation going. Thanks to PSN Africa for championing this

cause and for inviting me as a speaker.” Another member of the audience who spoke was Okorie Judith. In her words, “The maternal mental health conference was informing and inspiring. The highlight of the event was when mothers who have gone through and survived PPD narrated their experience. I shed a few tears. I’ve heard about and know what PPD is but I’ve never heard someone who has gone through it narrate it the way these mothers did. They are indeed warriors.” There were 4 Plenary Sessions including Maternal Mental Health /PPD in Nigeria, Managing Postpartum Depression

Living with HIV/AIDS little girls (they were 1 and 2 at the time). Someone at AIDS Action told me it would be ok to wait a bit, and it was like permission to get myself together first. I needed that and it made all the difference. My man was so sick, we had to change insurance companies, change paediatricians, and I was still at work full time. I just knew I’d be frozen if I found out bad news about my babies. I’d had a negative test during pregnancy number 1 and I think I must have told the midwife she didn’t need to test me for pregnancy number 2. I was in a monogamous relationship! I still think my man got it from his ex-wife years ago... hopefully that’s true. Anyway, when I was ready, I got the girls tested and they are both negative – Thank God! I immediately started seeing the docs, and since my CD4 was in the “grey area” they didn’t need to push me onto meds. But when I eventually started, in Nov 2009, my viral load dropped like a bad habit and my

CD4 crept up to over 850! I used to feel like if I saw a drop of my blood that it was disgusting, dangerous to my kids and tainted. Since being on meds, I don’t feel that way anymore. I know I need to take

precautions, but I don’t feel TAINTED, and that’s huge for me. I’ve disclosed to more people than I expected to at first. It’s getting easier as time passes, as I can explain that I’m okay

and doing well on meds. My relationship with my partner is strong, my kids are healthy, and I have a supportive and loving group of family and friends. I’m blessed! -Avert

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Growth: Nigeria to mobilise more revenues as tax base hits 19m – Adeosun onyinye nwachukwu

he Honourable Minister of Finance, Kemi Adeosun, disclosed on Thursday that the Federal Government would mobilise more revenues to drive its growth plan for the economy. The Minister made this known in Abuja at a meeting with a World Bank Mission of 10 Executive Directors led by Patrizio Pagano. She stated that the Government would accelerate Nigeria’s growth level and also improve the ‘Ease of Doing Business’ in the country. “The Nigerian Government is working towards accelerating the country’s growth level. The growth will be underpinned by stimulat-

ing the ‘Ease of Doing Business’ in Nigeria and improving our capital expenditure which we have done in the last two years. “Nigerians should trust the Government to deliver on its promises of improving the economy and providing sustainable infrastructure development. We are very optimistic but we will remain vigilant,” Adeosun said. The Minister revealed that the country’s tax payers’ base had risen from 14 million in 2016 to 19 million in 2018, grossing additional five million tax payers into the system. “By 2019, the growth will be stronger than the present level in 2018. We are optimistic in sustaining Nigeria’s economic growth.

That is why we are driving the mobilisation of more revenues. “We have been able to grow the tax payers’ base to 19 million in two years from the 65 million economically active people who are not tax complaint,” she added. The Leader of the World Bank Mission to Nigeria, Patrizio Pagano, explained that the team was in the country to acquaint itself with the Government’s growth and power priorities. “We have met with several Nigerian entrepreneurs and have seen how vibrant the private sector is. We want to understand how the power sector is evolving in Nigeria,” Pagano said. The World Bank officials had earlier met with the organised

private sector in Lagos and undertaken a tour of LAPO Microfinance project in Lagos. The 10 World Bank’s Executive Directors, representing 96 countries, are expected to inspect the Azura Power Plant in Edo State in the course of their three-day visit to Nigeria. The visit is expected to provide a first-hand impression of the challenges that both the Federal and State Governments face in implementing development projects as well as ensuring good governance overall. It will further enhance the goal of the Bank for member-countries and the effectiveness of the Executive Directors in providing the necessary support.

What a Buhari victory... Continued from page 1

six months to appoint cabinet ministers and another 16 months to keep the naira from weakening in vain. His supporters point to achievements in taming the Islamist terrorist group, Boko Haram, who have killed thousands in the country’s northern region. The pace of reforms will not change if he successfully grabs a second term at next year’s polls, according to Frank Aigbogun, who shared insights on the political risks that stare the country in the face ahead of 2019. “There isn’t anything on the horizon to suggest that reforms will move at a faster pace,” Aigbogun said. Reforms are badly needed particularly in the oil and gas sector, as well as power sector, where investor-friendly policies and market tariffs are non-existent. Downstream oil companies have had to stick to a retail petrol price pegged at N145 per litre ($0.48), when the rally in oil prices alone has shut up landing costs. Consensus estimates point to a landing cost per litre of N180. Buhari has resisted raising fuel prices, given that many Nigerians see cheap fuel as one of the few benefits they get from the government. Increasing pump prices could also dent the central bank’s efforts to curb inflation which slowed to 13.34 percent for the fourteenth successive month in March. It remains above the target range of 6-9 percent. Despite being an OPEC member and Africa’s biggest oil producer, Nigeria imports nearly all its fuel because of the decrepit state of its refineries. Most oil producing nations, including Saudi Arabia, are all in the middle of a planned increase in petrol prices, amid efforts to cut down on spending and diversify their revenue source. CBN in no hurry to divorce multiple exchange rates After the 2014 crash in oil prices that triggered acute dollar shortages in Africa’s largest oil producer, the central bank turned to a system of multiple exchange rates; each designed to meet separate dollar needs depending on who is buying and why they are buying. S & P’s short term outlook on the practice, which some foreign investors and the International Monetary Fund (IMF) have since urged the country to scrap, may squash any hopes for a rate convergence any time soon. “The sense we are getting from

L-R: Kabiru Isa Dandago, professor of accounting, Bayero University, Kano/former commissioner for finance, Kano State; Cyril Ede, president, Chartered Institute of Taxation of Nigeria (CITN); Sani Dambo, executive chairman, Kano State Internal Revenue Services, and Temitope Samagbeyi, tax partner, Ernst & Young, during the 20th annual tax conference, with the theme ‘Institutionalising Tax-Paying Culture in a Developing Economy’ in Abuja, yesterday. Pic by Olawale Amoo

the CBN is that there would be no adjustment anytime soon, to the multiple exchange rate practice,” said Gardner Rusike, S & P Global ratings Associate Director. “For stability and predictability, it is important to have a single exchange rate,” Rusike said. “Hopefully, the current practice will be adjusted in the near future.” There’s the long-standing official CBN rate of N305 per US dollar. It was at this rate that the recent currency swap deal entered with China for some $2.5 billion was implemented. There’s also the interbank rate of N330 per dollar, which the commercial banks carry on their books and is used by the central bank as a guide to sell dollars to banks during weekly auctions. Airline operators also enjoy a custom made rate of N360 per dollar. Then there is the N360 NAFEX rate introduced April 2017 to serve the dollar needs of investors and exporters. The NAFEX rate is a short crawl away from the black market rate of N361 per dollar. Some may argue that the practice has delivered gains in boosting dollar liquidity, stabilising the exchange rate and clearing a demand backlog that choked the economy and put pressure on external reserves. As of May 9, external reserves touched an 18-month high of $47 billion. Critics say the system encourages round tripping, with beneficiaries of subsidised rates taking advantage of the huge differential and can get a little confusing for investors. In explaining the reserve accre-

tion, they are careful to point the impact of higher oil prices and the government’s external debt issuances of about $6.8 billion in the past two years. Naira faces election pressure The general consensus among panel guests (which included Bismarck Rewane, MD of Financial Derivatives Company, Friday Idise- the Group head at Guaranty Trust bank, Sam Ocheho- Head of global markets at Stanbic IBTC and Omega Collocot- Director of S & P global ratings) was that the naira may weaken marginally on the back of portfolio flows reversal which is typical of election years. Rewane sees an 8 percent decline in exchange rates to N390 per dollar from N360 at the Investors and Exporters window- which foreign portfolio investors rely on to get dollars. “If you discount possible capital reversals and a possible election spend of 1 percent of the country’s $420 billion GDP ($4 billion), the impact of the upcoming election on reserves could be huge,” Rewane said. “Given the current level of reserves ($47 billion), that may not significantly dampen investor confidence,” Rewane added. Ochecho of Stanbic IBTC expects a 10 percent decline as the rate hikes in the United States forces capital reversals from emerging and frontier markets. “Some portfolio investors with maturities at the end of the year are likely to exit, to leverage the decline in government bond yields which have collapsed from 22 percent to under 10 percent this year,” Ochecho said.

The naira exchanged for N360 per dollar at the I & E window Thursday, as has been the case for months now. Per capita GDP is going nowhere Despite exiting a five-quarter recession in the second quarter, GDP growth rate of 0.8 percent for the full year 2017 period hasn’t moved the needle for many households and businesses. Average per capita income has retreated for four straight years and unemployment has ballooned to a six-year high of 14 percent. Youth unemployment is over 40 percent. Rather than government reforms, it has been the recovery in oil sector that has lifted the economy out of recession. The same thing that got it into one in the first place. The decline in global oil prices was complemented by a poorlytimed production shortfall, after a militant group (Niger-Delta Avengers), clamouring for a larger share of the oil revenue extracted from their region, damaged oil pipelines. That created a perfect storm for Nigeria, battling with decade low oil revenues and a need to boost infrastructure spend to provide a stimulus for the economy stuck in the middle of its worst recession in 25 years. Oil prices and production have since rallied this year on the back of OPEC’s supply cut and a relative calm in the Niger-delta. The oil rally has improved investor sentiment about Nigeria, but worries remain if the Niger-Delta militants will return. Brent crude prices traded at $74 per barrel on Thursday, almost double the price in 2016.

Friday 11 May 2018

2019 Elections:... Continued from page 1

President Olusegun Obasanjo in February this year with a political party - African Democratic Party (ADC) on Thursday, May 10. Although, 68 registered political parties may be in the electoral race for the 2019 Nigeria general elections, the reality on ground may limit serious political parties that will field presidential candidates in the next year elections to three political parties, namely, ruling All Progressives Congress (APC), People’s Democratic Party (PDP) and new entrant - African Democratic Congress (ADC). The emergence of African Democratic Party (ADC) which drew ‘Democratic’ from PDP and ‘Congress’ from APC, may be a game changer in the 2019 general elections going by increasing population of Nigerians trooping into CNM and ADC as well as the political influence of the founder - former President Obasanjo, who still insists that he will not join, but he is canvassing Nigerians to join CNM and ADC. It will also be recalled that some political parties, including the Social Democratic Party (SDP) and its leaders, mainly the Nigerian politicians who had defected from People’s Democratic Party, led by Olu Falae, former Secretary to the Government of the Federation had earlier come to Obasanjo for possible coalition with his Movement. However, he has ignored their request and decided to adopt ADC whose sponsors, apart from Obasanjo, are still unknown. Speaking at a Press Conference which he entitled “My Treatise for Future of Democracy and Development in Nigeria”, former President Obasanjo said, “Let me start by welcoming and commending the emergence of a renewed and reinvigorated African Democratic Congress (ADC), as a political party. “Since, the inception of Coalition for Nigeria Movement (CNM), many of the 68 registered political parties had contacted and consulted with the Movement on coming together and working together. The leadership of the Movement after detailed examination, wide consultation and bearing in mind the orientation, policies and direction of the Movement, have agreed to adopt ADC as its platform to work with others for bringing about desirable change in the Nigeria polity and governance”. “In recommending the CNM to join the ADC, let me give you some points that are of interest. From the beginning, CNM is not a political party but a popular grassroots movement to stimulate the interest and participation of youth and women in particular, in bringing about change in democratic dispensation, governance and development in Nigeria in such a way that power addicts will be forced to yield places for new entrants and participants in the power equation in the country. “They will sanitize the system. With the ADC, embracing the policy of 30 percent for youths under 40 and 30 percent for women in all organs of the party, a significant paradigm shift has been brought about in the power equation. The ADC is a reformed and reinvigorated party, it will embrace all the features and policies, which make CNM attractive and a source of hope and inspiration to millions at home and abroad.”

•Continues online at www.businessdayonline.com

Friday 11 May 2018

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BUSINESS DAY

6 BUSINESS DAY NEWS

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50% decline in Lagos land revenue raises concerns over 2018 projections … controversial Land Use Charge may impact negatively on estimates CHUKA UROKO

hough the Lagos State Land Bureau grew its revenue from N9.279 billion in 2015 to N20.773 billion in 2016, the 2017 revenue dropped significantly by 50 percent to N10.579 billion, raising concerns of likely impact on the state’s projections in the N1.046 trillion 2018 budget. Recently, the state announced an InternallyGenerated Revenue (IGR) of about N103.5 billion for the first quarter of 2018, which, according to Olusegun Banjo, commissioner for economic planning and budget, is about 57 percent of the projected IGR. Although the N1.046 trillion revenue is higher than N96.8 billion generated for the same period last year, it represents a shortfall of 43

percent for a state that had projected to generate internally N60 billion monthly to finance its budget. The bureau explained, however, that the drop in its revenue was a result of the decision by the state government not to sell land in their ongoing schemes until the necessary infrastructure had been put in place. “The revenue of the bureau will definitely improve at the kickoff of the new schemes, subsequent transactions on state land, payment of defaulters of capital development levy and the recent redesigning and upgrading of the land registry,” Yetunde Onabule, special adviser to the governor on urban development, who spoke at the state’s annual ministerial briefing, said. But analysts argue that aside the slowdown on the property market where de-

mand and prices have come down considerably, the controversial Land Use Charge may have a significant impact negatively on the bureau’s revenue projections for 2018. The state government in February this year announced a new land use law that raised charges on land by over 400 percent, sparking widespread anger and protest against the law and its provisions, which residents of the state described as insensitive and punitive. The state had explained that proceed from the new law would enable it provide and complete ongoing infrastructure development in the state. Real estate professionals and stakeholders argued against the timing of the law, saying, “agreed it is the civil responsibility of everybody to pay tax, but the ability to do that may be fur-

ther impaired by laws such as this; this is a very difficult and wrong time in terms of the current economic realities to enact this kind of law.” Erejuwa Gbadebo, CEO, International Real Estate Partners, noted, “The real estate sector has been in negative growth for, at least, 8 quarters; what it needs now are incentives for growth. This new law is punitive in nature and will only serve to put more pressure on the residential market, especially on those who having been paying the tax over the years.” The analysts are concerned that the impact of this law, which seems to have been put on hold, perhaps, for political expediency, may further drag down the state’s revenue and, by extension, incapacitate the state in its infrastructure development.

Friday 11 May 2018

FG, states, others share N1.9trn in three months - NEiTI

… expresses concern over projected revenues, budget disparity of most states The report projected brightHARRISON EDEH, Abuja er prospects for higher revenue ederation Account disbursements for the rest of Allocation Commit- the year because of the rising tee (FAAC) disbursed oil prices, which currently N1.938 trillion in the hovers around $70 per barrel, first quarter of 2018. in addition to increase in oil The amount shared rep- production. resented an increase of 37.3 The report however called percent when compared with for caution while celebrating N1.411 trillion shared during the amounts disbursed in the the same period in 2017, and first quarter of 2018, because 71.1 percent of the N1.132 tril- of the volatility of the internalion shared in the same quarter tional oil market. of 2016. “The year started on a bright A breakdown of the FAAC note as all tiers of government allocations shows that the received higher revenues than Federal Government received corresponding quarters in the N812.8 billion, the 36 states past two years. This was largely got N683.4 billion, while on the account of sustained N393.3billion went to the 774 increase in domestic oil prolocal governments. duction and global oil prices,” A further breakdown shows the NEITI report noted. that N655.2 billion was disOn allocations received by bursed by FAAC in January, each state, the report reveals N635.6 billion in February, that Akwa Ibom got the highand N647.4 billion in March est amount of N50.44 billion this year. while Osun State received the The information is con- lowest net share of N4.99 biltained in the quarterly review lion, a variance of 920 percent latest edition of the Nigeria between the highest and the Extractive Industries Transpar- lowest. ency Initiative (NEITI). The report explained that The publication observed these disparities in FAAC disthat even with increasing bursements suggest differtrends in the revenue dis- ences in revenue capacities of bursements to the three tiers different states and the impliof governments, the disburse- cations for expenditure deciment in the first quarter of sions in the affected states. 2018 was still 25.6 percent The publication expressed lower than the N2.6 trillion concerns about the relationdisbursed during the same pe- ship between the projected riod in 2013, before the crash revenues of states and their in global oil prices. proposed budgets.

Over 7.7m students, 46,000 schools benefitting from home-grown feeding programme - FG KEHINDE AKINTOLA, Abuja

N L-R: Sulaiman Baffa, non-executive director, First Registrars; Ibironke Vanghan-Adefope, non-executive director, First Registrars; Bayo Olugbemi,MD/CE, First Registrars; Ahmadu Abubakar, chairman, and Sunday Nwosu, national coordinator,Independent Shareholders Association, during the official introduction of First Registrars Mobile App in Lagos. Pic by Pius Okeosisi

Rotary international president, Ian Riseley, visits Nigeria

Nigeria gets first risk management training provider

CHUKS OLUIGBO

resident of Rotary International Foundation, represented by Mary Beth Selene, paid a visit to Nigeria Wednesday, as a build up to its upcoming conference, which started yesterday in Abeokuta. The three-day conference, in celebration of the end of year for the foundation in its entire “rotary clubs throughout the world,” and would be an avenue to address paramount issues that would support and further facilitate the eradication of polio in the country. Giving the reputation of the foundation in the precinct of serving humanity, the event also would enable them plan for the next coming year to do more for humanity, and the presence of the foundation’s president in Nigeria holds strong assurance for support in the fight against polio in monetary terms; and also

particularly to help maintain the image of Nigeria as a polio free nation. Received by high-ranking Rotarians and the heavy presence of the media at the Muritala Mohammed International Airport at exactly 4:45 pm, Selene, who has served Rotary International in many capacities including Fund National Adviser and International Training Leader, with excitement etched in her face, said, “I’m bringing the confidence that the rest of the world is supporting Nigeria, we’re a year and four months away from being declared polio free in Nigeria, a so the rest of the world is behind you and we want to give you our support as much as we possibly can, both personally and financially” When asked to be specific about the type of support she would be bringing, Selene simply said “money”.

he Institute of Risk Management (IRM), an international professional body for risk management, has announced the accreditation of Risk Management Consulting Limited (RMCIR) as the first licensed Fundamentals of Risk Management training provider (FoRM) in Nigeria. The IRM, which offers a variety of in-house and short courses on over 20 risk-related topics for all levels of role from FoRM to Risk in the Boardroom, said in a statement that it was very pleased to be working with RMCIR, a comprehensive Enterprise Risk Management (ERM) training, consulting and risk management awareness advocacy firm, to deliver the course in Nigeria. “Our Fundamentals of Risk Management (FoRM) course is well respected and attracts students from a wide variety of organisations from all over the world. We are delighted that students in Nigeria will now have

the opportunity to increase their risk management knowledge, accessing the FoRM course locally through an approved quality training provider,” Sanjay Himatsingani, director of training, IRM, said in the statement. “FoRM gives students an introduction to the principles and practices of enterprise risk management and can be applied to anyone from any sector globally; it is also a great introduction to the International Certificate in Enterprise Risk Management,” Himatsingani said. According to Robert Mbonu, managing partner, RMCIR, RMCIR is now a local partner with the IRM, bringing the training to Nigeria to develop the capacity of the workforce. “Through this training, firms will discover how to embrace opportunities and uncover threats,” Mbonu said. “Firms will be enlightened on how to adopt effective risk processes to support better decision-making through good understanding of risks and their likely impact.”

o fewer than 7.7 million students and 46,000 schools across 24 states of the federation are currently benefitting from National Home Grown Feeding Programme (NHGFP). The programme is also expected to be extended to additional 12 states in the next few months, according to Abimbola Adesanmi, NHGFP national manager, who spoke with BusinessDay at the sideline of the two-day workshop for FCT stakeholders. Adesanmi said total number of 3.2 million eggs, 50 tons of fishes; 255 cattle slaughtered and millions of tons of local rice had been consumed across the 24 states so far. In his remarks, Ismaeel Ahmed, senior special adviser to the Vice President on Social Investment, noted that 30,000 chickens were required to produce the entire eggs needed for the beneficiaries. He expressed optimism that the home-grown feeding programme would provide opportunities not only for poultry farmers but also private sector, just as he warned against politicisation of the scheme. Speaking earlier, Mariam Uwais, senior special adviser to the President on Social Investment, disclosed that

the scheme will directly empower thousands of Nigerians engaged in the scheme including poultry associations, cooks as the money will be paid directly to their accounts. According to Uwais, the cooks and other suppliers are to be working within the communities where the schools are located, and that no money should be removed as supply during the implementation of the scheme. Uwais expressed the need to share experience garnered from various states where the programme were currently being implemented. She explained that the office of the National Home Grown School Feeding Programme had to liaise with various State Universal Basic Education Boards to generate the population of beneficiaries. While declaring the stakeholders’ workshop open, Muhammad Bello, FCT minister, expressed satisfaction through the successes recorded in the implementation of other components of Social Investment programme including: N-Power-N-Teach, N-Agro, NHealth, N-Build Government Enterprise Empowerment Programme (GEEP), State Operations Coordinating Unit (SOCU), State Cash Transfer Unit (SCTU), among others.

Friday 11 May 2018

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NEWS Buhari’s medical trip: Adesina comes under fire BY OUR REPORTER

pecial adviser to the President on media and publicity, Femi Adesina, has come under attack for saying that the Presidency cannot guarantee President Muhammadu Buhari’s return within the stipulated four days given for his medical trip to London. BusinessDay gathered at the Presidential Villa, Thursday, that Adesina was verbally queried by the Chief of Staff to the President, Abba Kyari, over the telephone interview he granted to the Channels Television breakfast programme, Sunrise Daily. Adesina, in response to one of the questions, said, “When you talk of guarantee, man cannot guarantee. Nobody can guarantee anything.” Adesina was asked by the Channels crew “if it is guaranteed that Buhari’s stay in London will not exceed four days.” Adesina however expressed hopes that the President “will be back in the country on Saturday by the grace of God,”

Retraction

usinessDay reported on Wednesday, April 4, that Erisco Fo o d s L i m i t e d took N2 billion from the Central Bank of Nigeria in

even as he added, “On Monday and Tuesday, he will visit Jigawa State.” But BusinessDay Villa sources Thursday revealed that Kyari had invited Adesina to his office where he literally lambasted him for saying that “nobody can guarantee anything.” Our source also talked of his overbearing attitudes as he was regularly seen breathing down heavily on other political appointees. This is not the first time Kyari is involved in such verbal attacks with his fellow political appointees. On November 1, 2017, at the swearing in of the new secretary to the Government of the Federation (SGF) and the official launching of the 2018 Armed Forces Remembrance Day celebrations and Emblems, Kyari was involved in similar attacks with the Head of Service of the Federation, Winifred Oyo-Ita. BusinessDay also gathered that the Office of the Chief of Staff to the President was created to assist the President in coordinating his personal staff.

Part of his duties includes the supervision of key presidency staff, controlling access to the office of the President as well as managing communications and information flow. Other major roles include facilitating smooth relationship between the executive branch and the National Assembly, as well as smooth relationship between the Ministries, Departments and Agencies (MDAs) and the National Assembly. The Chief of Staff traditionally ensure good relationship between the office of the President and external political groups to implement the President’s agenda. The current Chief of Staff has played very little roles in removing frictions between political appointees and the National Assembly, which is partly blamed for the lingering Executive Legislature imbroglio and the long delay in the passage of the 2018 budget, despite the massive control of the National Assembly by the All Progressives Congress led government.

two tranches for the purpose of processing fresh tomatoes into triple concentrate. Erisco Foods has come out to state that it did not

take money from the CBN for this purpose. On this basis, we express our apologies to Erisco Foods Limited for this report.

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Friday 11 May 2018

NEWS Why World Bank should fund investments in Lagos public transportation - Ambode JOSHUA BASSEY

agos State governor, Akinwunmi Ambode, has made case why the World Bank should see reason in funding investments in efficient public transport system, energy and water resources in Nigeria’scommercialcity,whichis morecompellingthaneverbefore. According to Ambode, with the confirmation by the United Nations that the population of the city is now about 24 million, the task of efficient movement of people and goods in a seamless mannerisnowcompellingandrequires huge resources, which the government alone cannot fund. Ambode, who received the World Bank team led by Patrizio Pagano in his office, Wednesday, said though the state government in the last three years had invested inprovisionof infrastructure across sectors, there was the strong need for collaboration with the Bretton Wood institution in

key areas to boost the economy and make life a lot comfortable for the people. Available statistics from the United Nations confirm that an average of 86 people enter Lagos every one hour, which is the highest in the world, with attendant impact on infrastructure and social amenities, the governor said, adding that the complexity of the state makes the need for support in funding key projects unavoidable. “The significance of Lagos to the overall economy of Nigeria itself is not what we want to toy with and so when I read in the brief that the delegation would be coming to Lagos, I thought it was a very good decision that you would be able to see some of the sectorsandsomeoftheimpactwe have made. “So, if the World Bank were to generally support the development of the Nigerian economy, beyond the fact that you would be having anything to do with

World Bank executives arrive Edo today

ollowing the sustained progress that has been recorded in critical sectors of Edo State, such as reforms of the public sector and the huge investment in infrastructure that have rekindled economic growth, officials of the World Bank, a major development partner of the state, will arrive Benin City today, to assess the impact of the bank’s sponsored projects across the state. Edo State has prudently applied its receipts, portfolios as well as technical support from the bank, which account in part, for the erosion control projects, road projects, sanitation, water, agricultural and policy reforms in institutions spread across the state, designed to engender inclusive growth. Specifically, the Bretton Woods institution will take stock of the number of people that have been moved out of poverty, projects’ s impact on the environment, reduction in child and maternal mortality figures, gender mainstreaming amongst other considerations, underlying the World Bank’s partnership with various states and countries. The May visit of 11 World Bank executive directors to Edo

and Lagos states as well as the Federal Capital Territory, Abuja, according to those keeping steps with the activities of the bank, shows the interest in the Nigerian economy, especially since exit from recession. The 11 executive directors – considered to be an interestingly large delegation – will assess the performance of the states on key development indicators, and review activities to determine the feasibility of extending more support to some of the programmes funded by the bank in the country. In the World Bank mission are the Executive Directors for Switzerland, France, Italy, Peru, Germany, South Africa (representing Angola, Nigeria and South Africa), Burkina Faso (representing Francophone sub-Saharan Africa), Zimbabwe (representing Anglophone Sub-Saharan Africa), United Kingdom and Indonesia. Experts familiar with the development say that the focus on Lagos and Edo states is as a result of the relative satisfactory performance seen in the two states after the World Bank’s extension of funding to strengthen institutions, develop infrastructure and reduce poverty.

Celebrities delight, ‘StillBroke’ Clothing, set to launch

izkid, Tiwa Savage, Annie Idibia, and Lilian Esoro have been captured rocking the first of its kind collection of designer underwear ‘Still Broke,’ set to launch on the May 13. The company, in a statement, describes the clothing line as unique, and that customers will enjoy the comfort of the fabric that rivals some of the world’s most popular designs. Still Broke also promise fans its resolve to ensure products are very stylish and affordable. As subtly described by the CEO, Michael Uyi Agho, the brand’s name ‘Still

Broke’ promotes positivity, instilling a sense of hard work and responsibility in its wearer. He describes the theme of the brand as a tool to evoke appreciation of ones means of living, emphasising on the need to keep working hard despite recording success. ‘Still Broke’ has in its collection; an array of tracksuit bottoms, sports bras, briefs, among others, which customers can choose from. Inside sources reveal the launch will have some of the industry’s biggest names in attendance; ranging from socialites to personalities.

the Federal Government, I think that the greater part of what you should concentrate on should be issues that relate to major sectors that have to do with Lagos because anything that is driven by Lagos more or less has an overall positive impact on the Nigerian economy,” he said. He said already his administration had commenced the process of implementing major reforms in the transport sector with major bus terminals and lay-bys springing up in key areas across the state, adding however that major support was also needed in areas of integrated transport system involving road, rail and water transportation. “With the huge population of Lagos, we just have some effective operation of one mode of transportation which is road. So, technically, when you’re having a whole lot of people coming into the state and you’re having so much expansion around the west coast, it is important that we review the integration of our publictransportmanagementsystem in a manner that we can actually stand to say that we are planning ahead of the kind of urbanisation challenges that we are having in our hands.

Energy, oil/gas, manufacturing account for over $6.3bn Q1 2018 investment inflows - NIPC HARRISON EDEH, Abuja

nergy sector, oil and gas as well as the manufacturing sector top list of ‘announced investments inflows’ monitored from 26 states of the federation and the Federal Capital Territory (FCT), in the first quarter of 2018, the Nigeria Investment Promotion Commission (NIPC) said. Yewandu Sadiku, executive secretary, NIPC, said although most of the announced investments were yet to mature, the Commission now had a seamless collaboration with the states to enable it monitor closely investments inflow into the country, as a one-stop centre. Speaking with some select journalists on Thursday in Abuja, Sadiku said, “In the year 2016, the total capital inflow was $5.4 billion, in 2017, there was a material increase in the volume of flows, and it is $12.4 billion. The bulk of it is portfolio investment and is still yet to mature.” According to the executive secretary, “In 2018, actual capital flows translated to $6.3 billion. The investment inflow in the first quarter of 2018 is more than all of the flows that

came into 2016, signalling that this year is going to be far better than the previous years.” The executive secretary clarified further that investments announcements were not the same as investments, saying the investments reflected in 112 projects tracked in 26 states and the FCT. “This figure gives us a sense, but I tell you that there are investments that may not be disclosed, since investors are not really under obligation to,” she said. Also, she explained that the highest proportion of such announcements came from Nigerians who indicated interest in investing into the country. “We are interested in seeing more Nigerians invest in the country, and we have a Domestic Direct Investment model now in the commission, and we are working with the National Bureau of Statistics to track investments inflow into the country,” she said. While speaking on further collaboration with the states to track up their investments inflows, she said, “The current efforts of the NIPC in working more closely with the states is to increase the level of investment

inflow into the country, and to ensure seamless collaboration and proper tracking.” She noted, however, that the states however has a certain level of autonomy, and could go for investments on their own, but what is important is that there is active collaboration, and ensure proper harmonisation. “We currently have a Whatsaap group with all the state investments and promotion agency in Nigeria, various commissioners of investments and special assistant to the governors on investments matters, to share information and also exchange ideas, aimed at better collaborations,” he said. Speaking further on how the Federal Government is handling incentives with appropriate safeguards, she said, “In 2017, we completed a reform that started on 2015-2016. The reform was aimed at bringing greater transparency on pioneer status incentives,‎ and guidance to the government on the incentives that is being given and to ensure its value to the overall economy.” It is really from 2017 when we had completed such reforms, that we deepened tracking of our various incentives.

EY L-R Adedapo Adewole, director, advisory services, EY; Bunmi Akinde, senior partner, advisory services, EY; Bolaji Chandrasekaran, regional finance director, Olam, and Ashih Bakhshi, deputy market leader, EY, at the consumer prducts and retail event organised by EY Nigeria in Lagos. Pic by Pius Okeosisi

Organisation links business growth to stable, quality leadership DANIEL OBI

nsure business optimum productivity and growth, the China Europe International Business School (CEIBS) has encouraged entrepreneurs to imbibe the culture of effective business management and quality leadership role within an organisation. This was the outcome of the breakfast session with the theme “Entrepreneurship and Stable Leadership: Building the Next Generation of Leadership,” held for alumni of the Nigeria chapter of CEIBS in Lagos, recently. Speaking at the event, according to a statement, Sunday Agboola, president of

CEIBS, Nigeria chapter, said the session aimed at enhancing the knowledge attained by the alumni of the school on how entrepreneurs can take advantage of innovative business trends and how to demonstrate leadership qualities that could be emulated for growth and business expansion. He said quality leadership is very essential for the development of any business or organisation because it is all about influencing people, making equitable decision, and the direction which the workforce should follow in order to achieve desired results. In his remark, Kelechi Nwosu, executive vice president, Hartford Allied Projects, an alumnus of CEIBS, said the

school helped to build business and managerial skills in members, essential for the advancement of any organisation, whether small, medium or large-scale enterprises. Nwosu affirmed that the country is endowed with mineral resources and the challenge it has, is that of poor leadership and lack of managerial skills, areas where CEIBS can make constructive impact. He explained that CEIBS would help in the area of effective policy formulation and governance since its members cut across the various sectors of the economy and are disposed to make meaningful contribution for developmental purposes. He said the key learning

from CEIBS helps in activating the salient opportunities that are within the environment, to impact positively on an organisation, society and the nation. According to him, the combination of Chinese and European style of education would be advantageous to the country and the African continent, since China is one of the largest economies in the globe. Also, Temi Abimbola, lead advisor to the senior vice president of the African Development Bank, said an entrepreneur should have integrity and competence to discern and solve problems, while a good leader should be able to inspire others to attain success in business or in their profession.

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Friday 11 May 2018

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Sorting the snakes out SOJI APAMPA Olusoji Apampa is the CEO of The Convention on Business Integrity. Twitter: @sojapa E-mail: aviga@ cbinigeria.com

n a recent trip to Nairobi, Kenya, I learnt an important lesson. The day before my arrival, my host had aired the room and my flight from Abuja via Addis got me to Nairobi about 1am the following day. Later that morning, I attended to various Skype meetings, kneeling between the bed and the nice bay window behind me but with forearms and elbows on the bed. In the middle of the call I felt something land on my legs and shuffle off at speed and instinctively I knew whatever the thing was, it was alive! At first, I thought it was a mouse, but turning my head in the direction of the eerie feeling I had, I saw it, there, coiled in the corner only about 1.5meters away from where I was, with head poised for a strike, the most beautiful, slim, not-too-long, but stillterrifying, green-snake I had ever seen! Out of good manners and proper upbringing, all in auto-pilot, I managed to close the call in less than two seconds and high-tail it out of the room. After a lot of commotion and those who made out they were

brave finally admitting they actually had some phobias, the slim, beautiful, green, short-for-a-snake creature was sorted out. Apparently, as a tree snake, it had hopped across from some very generous palm fronds overlapping the window while it was open and blended in with the ver y green w indow blinds I had pulled back to enjoy the sunshine before my call started. What almost killed me were the what-ifs (since I had shared the room from about 2am with the snake) and various scenario constructing thoughts that kept flashing up in my mind. I was officially traumatised and each time I closed my eyes or blinked, all I could see was the snake. Needless to say, the snake dominated my conversations for the rest of the trip till I began reflecting a little deeper on all sorts of symbolisms. I will share one of the allegories that stuck with me out of the hundreds I must have scanned over what was just a few days. Can one describe as a dense mass of snakes, the myriad political economy actors creating blockages to progress in the development of Nigeria? These would be the “snakes” that incite violence, perpetrate fraud and corruption, warp systems and procedures for private profit, bribe judges, sabotage public service delivery for private gain; they know what is right, refuse to do it, and also prevent others from doing it … you know, snakes! If we don’t sort the snakes out, can we make progress? So, I

Can one describe as a dense mass of snakes, the myriad political economy actors creating blockages to progress in the development of Nigeria... In Nigeria’s current political economy, we would have to have the power of analysis to identify each snake in the morass and then take an informed decision as to whether or not an intervention had a chance to succeed imagined upon reflection, that we were only able to confront the slim, shortish, agile but light weight snake precisely because despite being terrified, we felt it was one that could be contained. So, the size, mass, length and agility of the snake mattered. In Nigeria’s current political economy, we would have to have the power of analysis to identify each snake in the morass and then take an informed decision as to whether or not an intervention had a chance to succeed. Let me illustrate this with the tense situation in Kenya around the 2017 elections. We may recall the Supreme Court of Kenya took the unprecedented step of annulling the elections based on irregularities it claimed were in the process. There was a re-run and around that was

drama as the leader of the main opposition party had issues with the arrangements. For a brief period, it seemed like the violence of the 2012 elections were bound to be repeated. The opposition seemed to have the power to call people out onto the streets at the drop of a hat. Anyone opposed to the government in power appeared to have the ability to join forces with all others and threaten the stability of the country. The impasse between the leader of the opposition and the President appeared the biggest blockage to progress in the country. It seemed like Kenya was doomed, but that was until “the handshake.” It appears the President of Kenya was decisive, did something in the background which resulted in a public handshake between him and the leader of the opposition. After that, a lesser opposition figure, feisty and agile, who tried to throw influence around was summarily sorted out – he got deported on a technicality (I refuse to comment on this instrument) and the country did not burn! Had he been deported before “the handshake” it might have drawn the main opposition figure and his supporters into the fray, but the timing was after things had been “sorted out.” I admit it is hard to tell at this point “how” things were sorted out. We see the major opposition figure now acting like a de facto Prime Minister and the longer-term implications for peace and stability are not so clear at the moment. But, is there a lesson in all this for those who believe they are

not too young to run? I think there might be. First, it appears self-evident that interventions that do not address what must be addressed but instead focus only on what can be addressed are doomed to failure. The fact that power is currently in the hands of heavily entrenched interests should not be glossed over – there should be a strategy for ‘sorting the snakes out.’ Before you throw your hands up in despair I want you to consider that there might be four sources of power (according to Cambridge Political Economist, Michael Mann) and perhaps they have not monopolised all the sources: control of vast resources (alliances have always been the way to tip this balance), control of state policy (here they may have the edge), control of ideology (this could be anyone’s game) and control of the use of force (which can include neutralizing their monopoly by changing the paradigm for their agents – young people). Of the four sources, they might at first appear to have a choke hold on three. Closer inspection suggests this can be whittled down to two. Hard work in alliance and coalition building, setting the ideological narrative and neutralizing their monopoly over the use of force might well tilt the balance of power in favour of those not too young to run. Whatever emerges would depend on how good they are at ‘sorting the snakes out.’ What do you think? Send reactions to: comment@businessdayonline.

Nigeria’s external reserve @ $47bn: The more you look; the less you see VINCENT NWANI Dr Nwani is the Director of Research and Advocacy at the Lagos Chamber of Commerce & Industry (LCCI) Feedback email: Vincent_nwani@ yahoo.com

t 47 billion in March 2018, foreign reserve recorded significantly 104 percent growth from a low of $23 billion in October 2016, the highest since 2014. This is good news that is worth the celebration by stakeholders both at the public and the private sector. It is widely b e l i e v e d t hat t hat g row i ng

reserves should impact positively on the appreciation of local currency, investors’ sentiments, stability and liquidity of the exchange rate. However, the realities on ground seem not to have reflected the ideals of an economy experiencing exponential growth of its reserves. To begin with, the CBN currently report external reserves as gross figures without clear disclosure of the reserve components or baselines. There is increasing concern about the sources, real owners and costs of Nigeria’s growing reserves. Thus, before Nigeria celebrate the wealth that does not belong to her it is important to shed some light on the sources of the remarkable growth of

reserve and how much actually belong to the country. * According to the National Bureau of Statistics (NBS) Q42017 report, $4.6 billion was imported into the country out of which 60% ($2.76 billion) was directed to portfolio investments. The figure has grown to well over $3bn at the end Q12018. This money is a liability waiting to crystalize and did not form part of our wealth. * Since February 2017, Nigeria has issued about $7.5bn worth of Eurobond debt compared to $1.5bn of Eurobonds raised by the country between 2 0 1 1 t o 2 0 1 5 . Th i s a m ou nt, $7.3bn is added to Nigeria’s reserves as part of the Funds on paper. Again, the FG cannot spend the money because it

has already collected the naira equivalent. * Remittances of Nigerians in diaspora, bank balances f ro m d o m i c i l i a r y a c c ou nt s o f Ni g e r i a n s, i n f l ow s f ro m grants/donor and NGO sources are hard to tell due to lack of detailed and timely numbers from CBN. Again, this part of the reserve fund does not belong to FG. To my conviction, the only part of the current reserves that is devoid of prior commitment, interest payment or refundable is the ECA which has about $2.5bn. This is the ready for use and available reserve value that belongs to the FG. This may serve to moderate the ceremonies building around our rising reserve figures.

It is our wish that net external reser ve numbers are reported along with the gross figures. There is need to determine the net or unencumbered part of our forex reserve at any point in time. Also, commitments such as forward obligations and the components of the external reserve such as oil sale, non-oil export proceeds, portfolio investment and FDI proceeds, grants, receipts from debt liabilities and aggregate balance from individual domiciliary accounts in the bank should be reported by CBN. This w ill assist analysts to make informed decision and sustain investors’ confidence. Send reactions to: comment@businessdayonline.com

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Militicians within the democratic space: The APC ward congress MARTIN IHEMBE Ihembe is a Political Scientist with research interest in political development. He can be reached via 08023688848

fter civil rule crested in 1999, there was so much optimism among Nigerians about the future of democracy, having experienced two relapses to military dictatorship. Sadly, few years later, the ills of the past, namely, legislative gridlock, executive arrogation of power and the culture of impunity, corruption, profligacy etc., started manifesting. For those who have lived long enough, this was déjà vu. By 2003 and 2007, our politicians’ veracious appetite for violence in their quest for political power surpassed what happened in 1960s and 1980s. For this reason, Attahuri Jega classified them as “militicians” – a special breed of politicians – within our democratic space who believe that political power has to be DR OLUFEMI OLUWATAYO Oluwatayo, Consultant Psychiatrist & CEO, The Retreat Healthcare, Ikorodu, Lagos email: olufemi@theretreathealthcare. com

s widely reported i n t h e m e d i a, o n Wednesday 3rd of May 2018, the Nigerian Police Force Public Relation Officer, Jimoh Moshood released this statement regarding the arrest and arraignment in Court of a current Senator of the Federal Republic of Nigeria: “Senator Dino Melaye was arraigned in Court by the Police at the Chief Magistrate Court, Wuse, Abuja today for Criminal Conspiracy, causing damage to government property and attempted suicide and escape from lawful custody” Though thankfully picked up by the media and highlighted in many newspapers’ headlines, not many Nigerians would have given the charge “Attempted Suicide” a second thought or appreciate its implication. Nor would they realise that had the Police been following the letters of the law as it currently stands in Nigeria, people who had for one reason or another attempted suicide or self-harmed would have been charged, tried

secured by any means possible. Nigerians were presented with this episode by the APC in its ward congresses. Over the weekend, Nigerians watched the militicians on rampage during the ruling party’s ward congresses which took place across the federation, and the party’s primary election in Ekiti state. Supposedly, this was the party Nigerians massively voted into office to steer it away from the “politics anxiety” which had stalled political and economic development to a state of political and democratic maturity in order to attain meaningful social progress. The violence unleashed by the APC militicians is now public knowledge. With what looks like an apocalypse before us, it will amount to sheer foolishness to be upbeat about 2019 general elections. While I was deeply disturbed about the political future of this country on account of the renewed political violence, I asked myself: must Nigeria go through this brutality again? I mean, I thought we have made incremental progress between 2011 and 2015, even though those elections were not entirely democratic!

Truth is, no matter the amount of time our policy makers invest in electoral reform and its implementation, it cannot deliver the desired result because of the total lack of tolerance and forbearance among the political class. Institutions do not drive themselves. Human beings drive institutions While I asked myself that question, Steven Levitsky and Daniel Ziblatt’s new book - How Democracies Die came to my mind. According to them, democracy does not endure because of a well drafted constitutional design because, this could be abused by the militicians who are good at circumventing institutional designs targeted at ordering and advancing the course of liberal political order. Therefore,what is written in the constitution is not good enough to guarantee democratic survival. Bastions of democracy like America and other

established ones in the West have witnessed constitutional failures as a result of violent and intolerant behaviour on the part of political actors (originally called: militicians). In their analysis, democracies work better and endure when they are “reinforced by unwritten democratic norms”, namely: “mutual tolerance and “forbearance”. In their view which I found rather persuasive, mutual tolerance is a situation where competing parties or candidates in an electoral competition see themselves as legitimate rivals, not foes. That is to say, regardless of howopposing candidates disagree with each other, they should recognize publicly that they are law abiding citizens who love the country equally; and they have the same constitutional right to compete for office. Secondly, institutional forbearance is the notion that political actors holding public office should soft paddle in exercising their institutional prerogatives. In other words, forbearance is the under-utilization of power by a president, governor, parliament and the like, by not using the letter of constitution as provided by law

in ways that threaten democracy, and embracing the spirit of the constitution. That Nigeria’s electoral and governance spaces are constantly engrossed in crisis is because the militicians in these spaces have willingly refused to embrace the norms of tolerance and forbearance which serve as the “guardrails of democracy”. Both the APC as we have seen over the weekend, and the PDP in its previous activities and last convention are culpable. Haven’t these militicians learnt enough lesson? Will electoral reform save Nigeria from this brutality in every election circle? Truth is, no matter the amount of time our policy makers invest in electoral reform and its implementation, it cannot deliver the desired result because of the total lack of tolerance and forbearance among the political class. Institutions do not drive themselves. Human beings drive institutions. And when they drive them to advance selfish interest(s) against public good, democracy will definitely be imperiled. That is the Nigerian experience since 1999. Send reactions to: comment@businessdayonline.com

The irony and shame of that Senator Melaye’s charge for attempted suicide and imprisoned. So also those that helped them. In writing this piece, I have no interest whatsoever in the plight or otherwise of the Senator involved in this charge or in his shenanigans. Neither do I wish to join other Nigerian in castigating our ridiculously deficient law making system and its selfish operators. My aim is to highlight how our failure to expunge this archaic charge from our statute books morally legalises the way we treat the mentally vulnerable in the society and worsen their stigma. That failure, in my opinion, also constitutes a shame on the elites for failing to do more to protect the most vulnerable amongst us. So how come that a suicide attempt, an act performed in a heightened state of personal emotional despair with no harm directed at others is considered a crime against the state with anyone aiding and abetting it also considered a criminal? In early civilisation, suicide was accepted by the society as

an act of courage to defend ones dignity and as an honourable way to escape certain shameful or hopeless situation. However, with the advent of the main religions and the enlightenment, suicide was considered an abominable act and a taboo with laws being promulgated against it. Thus began the era of criminalisation of suicide in most civilised countries that lasted for centuries. But with modern civilisation and better understanding of factors that lead to suicide and its associated acts comes the decriminalisation movement that swept through Western Europe in the late 50s and early 60s, leading to laws that specifically decriminalised suicide, for example, The Suicide Act 1961 in England & Wales. Unfortunately the laws of many African countries including Nigeria on suicide have remained stuck in the past as legacy of the colonial masters and have not changed to reflect the modern view of suicide and its associated acts. The changes in law came about because of better knowledge and understanding of the

reasons why people attempts or completes suicide with an alarming discovery that the vast majority of people who die from suicide didn’t actually intend to die from the act. So majority of deaths are accidental deaths from an act that is meant to communicate distress and cry for help. Increasingly, the role of mental disorders and societal anomie leading to temporary emotional distress are being recognised as the immediate precursors of suicide attempts and suicide. Whether that mental vulnerability is temporary for example from a bereavement or job loss or long term as a result of a mental disorder such as depression is irrelevant, what is required is immediate intervention in form of help, care and support rather than a criminal label that further dehumanise and alienate the person. As of today, The Nigeria Penal Code Chapter 27, Section 327 states “Any person who attempts to kill himself is guilty of misdemeanour and is liable to imprisonment for one year”

and Section 326 of the same chapter criminalises abetment of suicide. So in light of what we currently know about suicide and why people attempt it, does this piece of legislation currently make any sense and for how long will it remain on the penal code? Unfortunately, I can’t see this changing anytime soon judging by the failed attempt to repeal the 1958 Lunacy Act by a Mental Health bill which is yet to be passed by the National Assembly since its introduction in 2003! Who knows when one of the lawmakers would become mentally unwell and suffer the consequences of not passing the Mental Health Bill since 2003 and have their rights illegally deprived? The irony of this Senator’s case is that the failure of him and his colleagues to do their job has led to him being charged with a crime that should have been consigned into the dustbin of history. Indeed, the chickens have come home to roost! Send reactions to: comment@businessdayonline.com

BUSINESS DAY

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Editorial PUBLISHER/CEO

Frank Aigbogun EDITOR-IN-CHIEF Prof. Onwuchekwa Jemie EDITOR Anthony Osae-Brown DEPUTY EDITORS John Osadolor, Abuja Bill Okonedo NEWS EDITOR Patrick Atuanya EXECUTIVE DIRECTOR, SALES AND MARKETING Kola Garuba EXECUTIVE DIRECTOR, OPERATIONS Fabian Akagha EXECUTIVE DIRECTOR, DIGITAL SERVICES Oghenevwoke Ighure ADVERT MANAGER Adeola Ajewole MANAGER, SYSTEMS & CONTROL Emeka Ifeanyi HEAD OF SALES, CONFERENCES Rerhe Idonije SUBSCRIPTIONS MANAGER Patrick Ijegbai CIRCULATION MANAGER John Okpaire GM, BUSINESS DEVELOPMENT (North)

Bashir Ibrahim Hassan

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

Ethical implications of President Buhari’s many medical trips to England

uring the electioneering campaigns, one of the promises made by then General Muhammadu Buhari and his brand new All Progressive Congress, APC, is to place a general ban on all government officials from seeking medical care abroad. President Buhari seemed to repeat the promise, though, with a caveat, in April 2016 in a speech to the Nigerian Medical Association (NMA) that the government would cut back spending on sending public officials abroad for treatment when there was evidence of expertise in Nigeria. The president has not kept any of the promises. A month after making the promise to the NMA, he travelled to London to treat an ear infection after the presidency said he was evaluated by his personal physician and an ENT specialist in the capital Abuja. Dr Osahon Enabulele, a former president of the Nigerian Medical Association described Buhari’s medical trip then as a “national shame” despite the presence of more than 250 ENT special-

ists in Nigeria and a National Ear Centre in Kaduna state. Last year alone, the president spent a whooping 154 days in the UK on medical leave without any explanation to Nigerians who are picking the bills for his treatment on what ails him. Besides the questions about his continued fitness for office and the political and economic uncertainties his frequent medical journeys entails, there is the question of the morality of the trips. How does the president feel travelling each time at the country’s expense for medical treatment in the best hospitals abroad when the health sector in his country has almost collapsed under his watch and where health workers have been on strike for more than a month without the government doing anything to resolve the problem? The health sector under the president’s watch has received one of the lowest budgetary allocations. The sector got N259,751,742,847 (3.82 percent of total budget) in 2015 and N250,062,891,075 (3.82 percent of total budget) in 2016. In 2017, it got N304, 109,961,401 (4.17 percent) was allocated to the health sector. On the average,

the country spends about N1700 per annum on the health of its citizens – one of the lowest such spending in the world. The consequence has been catastrophic as expected. Primary healthcare in Nigeria, which ought to be the first port of call for every citizen seeking medical care, are either ineffective or moribund thus pilling pressure on the tertiary healthcare facilities that are also grossly inadequate. Nigeria is the second-largest contributor to under-five and maternal mortality rate in the world. A recent UNICEF report indicates that 145 women die daily during childbirth in the country. In the country’s worst affected areas, 1 in 13 women die during childbirth. Nigeria also loses about 2,300 underfive year olds every single day, 25 percent of whom are newborn babies. More worrisome is the fact that more than 70 percent of the estimated under-five deaths in Nigeria are caused by preventable or treatable infectious diseases such as malaria, pneumonia, diarrhea, measles and HIV\AIDS. Recently billionaire philanthropist and founder of Microsoft, Bill Gates reiterated

the grim statistics bluntly to the president and his team when he said: “Nigeria is one of the most dangerous places in the world to give birth, with the fourth worst maternal mortality rate in the world, ahead of only Sierra Leone, Central African Republic, and Chad. The collapse of health infrastructure isn’t limited to the ordinary citizens alone. Even in Aso Rock, where the clinic reportedly receives a budgetar y allocation of N4 billion naira, the President’s wife and daughter recently alleges that the clinic couldn’t even boast of common syringe or paracetamol. For Mrs Buhari, even though the clinic was supposed to cater for the immediate health needs of the first family, ministers and presidential aides, her aides advised her not to use the facility because it wasn’t functional and they advised her to seek medical treatment abroad for any medical complaints. Perhaps, it is time the president re-evaluates his trips in the context of the situation of his countrymen and women at home whom he claims to love so much and on whose behalf he claims to act always.

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Friday 11 May 2018

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BUSINESS DAY

MoneyInsight Personal Finance: Investing Retirement

Taxes

Credit Cards

Home Buying

Small Business Shopping

Indonesia scramble for Nigeria’s market will benefit small businesses - Wicaksena

iger ian small businesses can benefit from Indonesia’s desire to capture more market share in Africa’s largest economy. Indonesia, a Southeast Asian nation made up of thousands of volcanic islands, is home to hundreds of ethnic groups speaking many different languages. It is known for beaches, volcanoes, Komodo dragons and jungles sheltering elephants, orangutans and tigers. On the island of Java lie Indonesia’s vibrant, sprawling capital, Jakarta, and the city of Yogyakarta, known for gamelan music and traditional puppetry. BusinessDay’s interaction with some Indonesian companies recently shows they want to enter the Nigerian market but are cautious given Nigeria’s sometimes treacherous investment environment. Small and Medium size Nigerian businesses can profit from this opportunity by doing due diligence and serving as distributors for these companies’ products. There is indeed the argument as to whether Nigeria is not stifling local industries when it allows import of certain products. However, some economists have said the concept of comparative advantage is important and nations have to find a way of plugging into the global economy as producers of specialised goods and no country can be selfsufficing. “It is amusing sometimes when you hear people talk about import substitution. Nigeria cannot produce everything it consumes, this is common sense. It is important for us to understand where in the global production value

Stakeholders announce influence to inspire 2018 conference ANGEL JAMES

STEPHEN ONYEKWELU

chain we want to play as a country” Bongo Adi, Faculty at the Lagos Business School, Lagos said. Indonesia is working to improve bilateral relations with Nigeria, promote business ties and improve peopleto-people relations between both countries. The balance of trade between Indonesia and Nigeria in 2014 was $4 billion but came down to $2 billion in 2015 and further down to $1.8 billion in 2016, Harry Purwanto, the Indonesian Ambassador to Nigeria, said, April 2017 during a press briefing in Abuja. This is a remarkable opportunity for Nigerian small and medium businesses that want to go international. “Our main objective is to promote Indonesian products in the Nigerian market and strengthen bilateral relations between the two nations and between Indonesia and West African countries” Bagus Wicaksena, director, Indonesian Trade Promotion Centre, Lagos, told BusinessDay in an exclusive interview at the Food West Africa 2018, in Lagos, the leading food and beverage trade exhibition in West Africa. Indonesia wants to boost its export development to non-traditional countries, besides Europe, the United States of America and Asia. “We see that Africa is go-

ing to be our new potential partner, in terms of trade or investments. Africa has been developing fast. Nigeria in particular is one of our potential markets because its large population represents a huge market opportunity. Nigeria is our gateway to the West African market, especially. Nigeria has growing middle class in addition to its large population” Wicaksena said. The Indonesian Trade Promotion Centre has been in Nigeria since 2009/2010, designed to promote especially non-oil and gas products. It is part of the Ministry of Trade in Jakarta, Indonesia. Four big Indonesian FMCG companies seeking to break into the Nigeria retail and consumer goods market include; Mayora Group, which began producing biscuits in 1948 but has long become a giant in the Indonesian packaged food industry whose products can be purchased in more than 100 countries on five continents. “We are the second largest food producers in Indonesia and have been exporting to Nigeria since 1994. We set up shop in Nigeria in 2014 but closed shop in 2016 due to dollar shortages that made it difficult for us to pay our parent company in Indonesia. Now, we rely on Nigerian distributors to export our products

to Nigeria” Dipa S. Komala, Group Country Manager in Nigeria, Mayora Group told BusinessDay. Dua Kelinci is another Indonesian FMCG firm looking to break into the Nigerian retail and consumer goods market. Established in 1985 and has vast experience in the food industry. It exports to Europe, the Middle East, Canada, USA, India and China. “In Indonesia we are one of the leading companies for peanuts and snacks, our sales volumes last year was over $2 billion. We are present in many countries around the world and are now focusing on developing products for the African market. We have been in the African market since 2015 and in Nigeria we started in 2016” Abdullah Mujahid, Head of Area International at Dua Kelinci, told BusinessDay. The other two of the four big Indonesian FMCG companies are Marizafoods and Kapal Api Global. Marizafoods exports to Saudi Arabia, China, Russia, Singapore, USA, Australia and the United Kingdom but without any footprint on the African continent. Kapal Api products have been exported to more than fifty countries. It has more than 50 percent market share in Indonesia’s coffee industry.

Financing

takeholders have announced the ‘influence to inspire Leadership’ empowerment programme slated for July 19 to 20 at the Eko hotels and suites. The conference themed “sustainable leadership and growth for a thriving economy” is targeted to raise influencers who will embody the true meaning of leadership while inspiring others towards attaining same leadership horizon. According to Jane Ivhurie, founder and chief host of influence to inspire programme, the conference will host the guest speaker John Maxwell, New York Times bestse l l i n g a u thor, coach and speaker known to have trained millions of leaders worldwide. “I am delving out to setting up a platform that will groom influencers, our targeted audience are leaders, individuals, decision makers basically everyone within the sphere of industry that wants to grow with their teams can attend, we are bringing in John Maxwell as a host, a world re nowned leadership expert in Nigeria to share his ideas, visions and hidden skills” She stated that what defines the success of a leader is when those whom they have led can say that they have being positively impacted or they have

grown from a certain level to another. “For us as leaders we have to try see things differently, we have to let the people know that we are there for them, the idea is to inspire people and motivate them to reach their highest leadership potential, and to adopt influenced based leadership and lifestyle for professional growth” Ivhurie said. According to the organisers 100 attendees including leaders, CEOs, and individuals are expected for the first day of the programme which is tagged ‘think tank master mind with John Maxwell’ it is going to be a powerful interaction on major issues with John Maxwell, the second day is targeted at 2000 attendees in expectation of employees at cooperates offices and individuals. Ivhurie further said “The idea of the change we need starts from the top, everybody needs to grow, we also have community leadership empowerment programme free of charge but our focus for now is the influence inspire conference 2018, We are not just having a conference, John Maxwell is a brand on its own a renowned leadership expert and I believe our audience will achieve a lot and see the value, the theme of this conference is where we find ourselves as a nation john Maxwell has a whole lot of interest around this area”

How Studio Contra Mundum is seeking to change interior design ISAAC ANYAOGU

arely do you find a practice that fuses the best of architectural, interior and furniture design to create an engaging indoor experience for clients. What seems to be a common practice, is to have the services delivered by different firms. However, a new firm, Studio Contra Mundum is seeking to harness the power of collaborations to improve upon the customer’s experience thereby creating value for customers. Contra Mundum is an architectural, interior and furniture design practice based in Nigeria with studios in Lagos and Abuja. It was officially launched in Lagos with an

L-R: Jeffrey Adjei, Olayinka Dosekun and Nelson Byun at Studio Contra Mundum, Lagos

event on May 4, in their bright and contemporary offices and rooftop space overlooking the Onikan district.

The practice is headed by Olayinka Dosekun, a Harvard-trained designer and Jeffrey Adjei, a Ghanaian-British

architect, with Nelson Byun, a Korean-American architect, also Harvard-trained. Collectively they have experience

in Nigeria, Ghana, Britain, Germany and the USA. Contra Mundum means “in defiance of norms”; the Studio is forward-thinking and outward-looking with collaborative partners in London, Boston, Madrid and Hong Kong who participate in the research and design processes; they are committed to the delivery of innovative and thoughtful contemporary architecture for clients with an equal enthusiasm for design. “Our practice is committed to the delivery of sensitive, innovative and thoughtful contemporary architecture for clients with an equal enthusiasm for design and the process of design,” says Dosekun.

According to information on the company’s website, the company says it is poised to revolutionise design. “Above all we value conceptual rigour, cultural rootedness and craftsmanship in execution. At the studio, we employ diverse methods both digital and analogue to develop, test and communicate new ideas, including material prototyping, fabrication, physical modelling, drawing and photography. According to the company, “Contra Mundum is a forward thinking and outward-looking practice with collaborative partners in London, Boston, Madrid and Hong Kong who participate in our research and design processes.”

14 BUSINESS DAY Policy

Investments

Market

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Insight

Friday 11 May 2018

Influencers

MARKET

Offgrid energy operators counter threat of poor used battery disposal Stories by I SAAC ANYAOGU

ith a possible volume of 250,000 tonnes of imported battery into Nigeria yearly and annual generation of used lead acid batteries put at over 110,000 tonnes, proper management of ULABs appears to be the biggest downside to solar adoption in the country. As more people embrace renewable energies, especially solar, the current method of managing ULABs where local smelters extract lead inglot through a crude recycling method can no longer be suffice due to health and environmental challenges it presents. It seems operators are now getting more bullish to confront the threat it presents. This is why Cleantech Hub together with the Renewable Energy Association of Nigeria (REAN) with the support of the Heinrich Boell Foundation Nigeria recently

held a one-day workshop on how to properly manage ULABs in Nigeria. The workshop brought together numerous stakeholders in the Nigerian renewable energy sector to share ideas on how to tackle this issue of improper disposal of ULABs It was disclosed during the workshop that an Alli-

ance for Responsible Battery Recyclers (ARBR) had been formed by some stakeholders to create a template for the management of ULABs as a form of Extended Producer Responsibility. It was out of these series of workshops and engagements that the Alliance was formed in order to set the template for how renew-

able energy companies and other companies across the country including importers of batteries and recyclers should manage used batteries. Environmental-wise, this is a ticketing time-bomb unless operators commit to responsible management. This is important because, ULABs projected to be generated

from solar energy will triple those from the transport sector. Solar energy is the future, and Nigeria’s ambition to generate 30% of its power from renewables by 2030 is projected to further increase the volume of used batteries that would be generated in the country. Yet there are still serious gaps in the knowledge of responsible management of ULABs by solar operators in Nigeria. The Extended Producer Responsibility (EPR) concept, a guide to sound environmental management of ULABs, is only just catching on. Lead-acid batteries contain sulphuric acid and large amounts of lead. The acid is extremely corrosive, and a good carrier for soluble lead and lead particulate. Lead is a highly toxic metal that produces a range of adverse health effects particularly in young children, including cardiovascular, neurological and gastrointestinal diseases like anaemia, and mental retardation. Experts say long term ex-

posure can result in cancer, brain and kidney damage in human. Further dangers include hearing impairment and it can affect children’s cognitive development. I cannot be sure if that is why I had practically scream at battery dealers in Onitsha before they can hear me – but then again it could easily have been the result of the organised chaos in the rowdy market. The danger this time is not solely from poorly equipped battery recycling sites, as a clampdown by the Lagos state government is sending many out of the business of crude recycling, the present danger is collectors draining acid into underground waters that can contaminate water sources, endangering human health. The market is moving towards collection of used battery rather than recycling and the growth of the solar energy industry means that operators will generate more ULABs, which would constitute even more environmental challenges.

cess, private investment is needed to complement public spending. Governments need to ramp up investments in de-risking tools, provide affordable financing and a clear enabling policy framework to attract the private capital. Household electrification strategies implemented by governments especially in rural areas should take into account other development goals and opportunities to use energy access to stimulate sustainable economic ac-

tivity. It should incorporate and support technology development and standards. Decentralized systems are benefiting from innovative control and payment solutions, such as smart metering, customer data management and communications, and mobile payments, M more of this innovation should be encouraged. Electrification planning needs to take into account the dynamic and integrated nature of energy demand and storage, and ensure technical standards and energy efficiency in end-use appliances. Governments should also address affordability, which remains a critical barrier, by lowering upfront costs in providing targeted financing and subsidies, harnessing new business models such as the pay-as-you-go model, integrating energy efficient appliances with electricity access solutions, and creating sound policies and institutions.

INSIGHT

How Africa can achieve energy-related SDGs through renewables

ccording to the United Nations, the world is not on track to achieving energy-related Sustainable Development Goals for universal energy access and increasing renewables and energy efficiency though considerable progress has been made in global energy access. The number of people without access to electricity fell to around 1 billion in 2016 from 1.7 billion in 2000 says a policy brief published by the International Energy Association (IEA). The number of people gaining access to electricity each year is accelerating, due to strong successes in some countries, including Bangladesh, Ethiopia, India, Kenya and Tanzania. Grid electrification has been the source of almost all energy access gained since 2000 and is likely to remain the most favourable option for many households, especially in more

densely populated areas. To deliver universal energy access by 2030, decentralized options are the least-cost option for 60 per cent of people currently lacking access. Public programmes and privatebusiness models providing electricity access with offgrid solar are thriving, and many countries are also exploiting their renewable potential in the centralized electricity mix. “ How e v e r, hav i n g a source of electricity is not a guarantee of full access. To serve the needs of households, schools, health centres and local enterprises, electricity needs to be available at the right time, at an affordable price and with a reliable supply and appliances. “Current progress towards delivering universal access is promising in many parts of Asia and some countries in subSaharan Africa, but not in all. Based on recent trends and policies, the number of people without electric-

ity access is expected to remain over 670 million in 2030, with over 80 per cent of those lacking access concentrated in rural areas of sub-Saharan Africa. Government’s priority roles The UN says key action is to guarantee leadership, commitment and strategic planning. This can be achieved by elevating universal access to electricity to a high level on the political agenda, backing up commitments with

strategic planning, clear policies and regulatory frameworks, and dedicated institutions. Governments especially in Africa need to identify a strong champion institution for electrification programs, with a clear mandate, the authority and resources to fulfil the mandate, and accountability for achieving that mandate are equally important. To achieve the estimated US$ 52 billion per year in investment necessary to deliver universal ac-

Isaac Anyaogu, Email: isaac.anyaogu@businessdayonline.com, 07037817378, Graphics: Joel Samson

Friday 11 May 2018

BUSINESS

COMPANIES & MARKETS

DAY

Caverton Group records 328% profit growth, rewards shareholders with 15k dividend

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Co 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

Lasaco Insurance’s profit jumps on good underwriting performance ...Underwriting profit surges 128.65% in Q1’18 BALA AUGIE

asaco Insurance Nigeria Plc’s net income has surged in the first quarter of the year despite a tough and unpredictable operating environment, thanks to a good underwriting performance. For the first three months through March 2018, the insurer’s net income spiked by 55.70 percent to N190.36 million from N122.26 million as at March 2017 The growth in profit was largely driven by an efficient underwriting performance as evidenced in an efficient underwriting performance and improved efficiency ratios. Underwriting profit surged by 128.65 percent to N563.92 million in the period under review from N246.80 million the previous year. Lasaco is profitable and there are no threats to its going concerns as combined ratio of fell to 56.61 percent in the period under review from 107.91 percent the previous year. Despite the challenges inhibiting the growth of insurance firms in Africa’s most populous nation, Lasaco’s gross premium income increased by 23.10 percent to N3.73 billion as at December

2017 while gross premium written (GPW) was up 5.50 percent to N2.11 billon the same period. However, a breakdown of the component of gross premium income shows revenue from motor business fell by 10.44 percent to N99.10 million in the period under review as against N110.66 million the previous year. The analysis shows revenue form motor business make up just 2.60 percent of the total gross premium of N3.73 billon as at December 2018.

Stakeholders have bemoaned the rates charged by operators in the industry for third part vehicle insurance. Firms still charge N5000 for third party motor insurance, an amount that is abysmally poor and unrealistic in the light of inflationary period. The rates should be N50,000. I got my 1st car in the late seventies for N3000, according to peter Irene, managing director of CEO of International Energy of Nigeria (IEE).

Irene added that he wondered why third party should be N3000 and that insurers could find it practically difficult to record huge premium with such rates. Only 36 percent of vehicle plying Nigeria’s roads are currently insured. Only about 4.5 million vehicles out of 12.5 million plying Nigeria’s roads are registered on the Nigerian Insurance Industry Database, NIID, which captures all legitimately insured vehicles in Nigeria, according to Chairman

of Nigerian Insurers Association, NIA, Eddie Efekoha This means only 36 percent of vehicle plying Nigeria’s roads are insured as most are fake insurance. Analysts are of the view that fake document are common in other states as compliance remains weak. Further analysis of the financial statement shows reinsurance assets increased by 33.70 percent to N2.38 billion as at March 2018 from N1.78 billion.

19m Nigerians now pay taxes – Osinbajo

he Vice President, Yemi Osinbajo on Wednesday declared open the 2018 edition of the Chattered Institute of Taxation of Nigeria (CITN) conference with a revelation that the nation had increased its tax net from 14 million in May 2017 to 19 million this year. Osinbajo, who was the Special Guest of honour at the event, stated that as at Dec. 2017, only 943 Nigerians paid self-assessed taxes of less than N1 million. “Earlier, I noted that as of May 2017, only 14 million economically active Nigerians pay taxes. “I am pleased to note that the number is now in excess of 19 million and still growing. “This means that efforts led by the federal Inland Revenue Service in collaboration with many of the states inland revenue services have already added more than five million new tax payers to the tax base. “But there is still a lot of work

ahead of us; as Nigeria races to catch up with the rest of the world in terms of tax compliance we all have a role to play in this.’’ Cue out audio The Vice President noted that tax issues were not exciting to anyone but added that it was an argument on whether one should pay taxes or enjoy dividend of governance. According to him, in reality it should not be debated as compliance and good governance should exist side by side as the head and tail of a social contract that binds citizens and government. He said it was difficult to explain the cynicism displayed by Nigerians about governance and about fulfilling their tax responsibilities. “Governments generally have the nonchalance of fulfilling their own part of the social contract. “But it is also a fact that when people pay taxes, they are more inclined to hold their governments to account.’’

He noted that it was almost 300 years since “no taxation without representation’’ became the rallying cry for the U.S. covenant and one of the main triggers of their revolution that earned U.S. colonies at the time independence from Great Britain. Osinbajo noted that Nigeria had experienced the Aba and Abeokuta tax riots incidentally both championed by women. “The moral is a simple one that when citizens pay their full share of taxes they take more than a passing interest in how they are governed and how public funds are utilized and accounted for,’’ he stated. Osinbajo said that government had relied more in the past on oil revenues than on taxation adding that a decline in taxation depicted a decline in government’s accountability and ability to deal with the needs of the people. He said that poor tax management was one of the issues that

increased corruption in the system adding that the fact remained that the tax payer was less tolerant of corruption than another who failed to pay. He stated that because what government spent was oil money and taxes of few persons a lot of people saw government’s money as belonging to no one. Osinbajo stated that the present administration was determined to change the state of affairs and also determined to restore the social contract between the government and the citizens by ensuring prudence in public expenditure. “We have aggressively expanded the implementation of the TSA and IPPIS both designed to ensure that public funds are transparently managed and spent. “In the process we have succeeded in proving that process reforms are only as good and effective as their implementation. “The TSA’s unified system of bank

account domiciled in the CBN has proved to be far more transparent and cost effective than the old scenario where government agencies maintained thousands of accounts across many commercial banks because of the TSA the federal government realizes monthly saving of at least N4billion which could have gone on commercial bank charges alone. “The Presidential Initiative on Continuous Audit (PICA) has also tightened controls on federal payrolls and pension systems elimination tens of thousands of ghost workers and saving us more than N200 billion that would have gone to these ghost workers,’’ he added. Osinbajo stated that such savings were instrumental to the huge government expenditure on infrastructure and human capital development than any previous government in spite of the recession and dwindling earnings.

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COMPANIES & MARKETS Caverton Group records 328% profit growth, rewards shareholders with 15k dividend

averton Offshore Support Group Plc, (COSG), Nigeria’s foremost indigenous offshore logistic services provider, on Tuesday declared a dividend of 15kobo per ordinary share of 50kobo each for its shareholders during its 9th Annual General Meeting in Lagos. Caverton, which was listed on the Nigerian Stock Exchange (NSE) four years ago, grew Profit after Tax (PAT) by 328 percent from N612.28million in the financial year ended December 31, 2016 to N2.62billion in the review financial year ended December 31, 2017. Profit before Tax (PBT) increased by N2.81billion or 256 percent from N1.10billion in 2016 to N3.91billion in 2017. The management of Caverton was shrewd in cost management in the review financial year to achieve a robust bottom-line as revenue only grew marginally by 6.4 percent to N20.54billion in 2017 compared to N19.31billion recorded in 2016. Over the years, the group has positively impacted the socio economic development of the country through various stakeholders; client, employees and communities alike. Its global workforce has equally

Source: Company Financials; BusinessDay Analysis

grown remarkably with just below 700 employees in West Africa. With its rapid expanding fleet of aircraft and vessels coupled with its acquisition of key offshore assets and strategic partners, the group is able to provide a diverse range of services to its clients ensuring objectives are completely fulfilled, offshore to land. COSG also takes pride in putting safety and quality at the core of its business and has been rewarded for this by its growing customer base. In September 2014, September Shell Petroleum Development Company (SPDC) awarded the compa-

ny the Shell ‘Safety Conscious Award’ recognising its safety conscious effort. Welcoming stakeholders to this year’s meeting, Aderemi Makanjuola, chairman of Caverton Group, said the impressive record of the company’s increase in revenue was due to stability of exchange rate, Nigerian economic growth courtesy of the massive government intervention in the agriculture sector and a ramp up oil production. He also gave a pass mark to the company’s financial performance in spite of enormous challenge of economic

US firm launches $5m global venture challenge for Lagos start-ups Daniel Obi

onnecticut Innovation, a U.S organisation that provides strategic investment for early-stage technology companies, has announced Lagos as its next location for its VentureClash global venture challenge. In a statement, the organisation said it has chosen Lagos as an ideal location to expand the footprint of its VentureClash global venture challenge because it identified Nigeria as a promising hub of innovative, high-growth-potential businesses. VentureClash is Connecticut Innovation’s worldwide competition for companies that are actively advancing disruptive solutions in digital health, financial technology (fintech), the Internet of Things (IoT) and insurance technology (insurtech). A two-day tech fair, to be

held on May 22–23, 2018 at the Radisson Blu in Lagos, the statement will bring together the most promising companies from Africa to compete for one of three semifinalist spots in VentureClash, a $150,000 investment from Connecticut Innovations for the firstplace winner, and $5,000 grant awards each for the three top winners to visit and explore Connecticut as a place to live and grow a business. To be considered, companies must have been in business for at least one year, have paying customers or customers who are actively testing their product, and agree to the terms and conditions, which include maintaining a presence in Connecticut. Those who meet the contest criteria must complete an application prior to May 14, 2018, by visiting: www.ventureclash.com/apply. The top 10 or 20 companies among those applicants will be invited to pitch at the event in Lagos. They will each be

given eight minutes to present their companies to a live audience followed by a brief Q&A by a panel of judges. After deliberation by the judges, the three winners will be selected to move on to the semifinals round of VentureClash. The Lagos event was inspired by Oni Chukwu, a Nigerian native who, after emigrating to the U.S. 25 years ago to pursue advanced education, went on to achieve remarkable success in several entrepreneurial ventures including his current role as CEO of etouches, a Connecticut Innovations portfolio company that was recently acquired at a highly attractive premium, the statement further said. Chukwu is a technology investor, via his investment company, Frontiers Acquisitions. Among his vast professional accomplishments, Chukwu also established the AfricaPlan Foundation, which assists aspiring entrepreneurs in developing countries.

environment in 2017. This,he attributes to continued effective execution of his team strategy as they innovate and break barriers to boost bottom line in building a clientcentric group and generate sustainable long-term value of shareholders. As he professes a prosperous business future in 2018 and beyond, Makanjuola seized the opportunity to thank the ‘Cavertonians’ for their value contributions and deep commitment to the company. Thanking their esteemed shareholders for their continued support, the Chief

Executive officer of the company, Mr. Bode Makanjuola assured them that the company would continue to wax strong. “In 2017, throughout a period of profound political and economic change around the world, our company remained steadfast in dedication to our clients in the host communities we serve while earning a fair return for our stakeholders. Also, our financial results for year ended in 2017 displays positive performance confirming our company’s ethos to deliver a cost effective and efficient service to our customers”. He concluded, “Our desire is to continue to be a strong and financially sustainable group that puts our stakeholders at the heart of everything we do.” Though shareholders of Caverton Offshore Support Group Plc expressed the opinion that their company could do better in the years ahead; they were unanimous in applauding the Board of Directors of the group for paying a dividend of 15kobo per share in the review financial year. Moses Ogundeji, a shareholder affiliated to the Independent Shareholders Association of Nigeria (ISAN) at the AGM held at the Civic

Centre in Lagos, praised the company for paying 15kobo per share as dividend but urged the Board of Directors to make the largesse better subsequently. Patrick Ajugo, another shareholder however differs, saying that the company must come up with a track able dividend policy. According to Ajugo, a dividend of 15kobo per share out of an Earning per Share (EPS) was not good enough. He however commended the Company for the excellent performance of its Marine Business, which he said must be given a greater attention. Nona Awoh, one of the shareholders, had a reservation on the ability of the company to sustain the dividend declared on Tuesday as he said the business the group runs is capital intensive and that it needs all the capital available to grow its businesses at the moment. Meanwhile Makanjuola is confident that Caverton will improve on its revenue as well as bottom-line as he said more contractors signed by the Company in 2017 will boost revenue. Herevealed that Caverton Offshore Support Group Plc was able to add 11 new Helicopters to its fleets by April 2018 would further boost its revenue base.

Currency Swap: Analysts fear deal will stifle Nigerian economy

inancial analysts have expressed concern that the currency swap deal recently signed by the Central Bank of Nigeria (CBN) and the Peoples Bank of China (PBoC) will stifle the Nigerian economy. The News Agency of Nigeria (NAN) reports that the Currency Swap Deal was signed on April 27. Boniface Okesie, the president Progressive Shareholders Association of Nigeria, told NAN that the currency swap deal was unnecessary. He said the deal would ensure that majority of the country’s foreign trade deals were channeled to the Chinese economy. “This will lead to economic dependence despite that Nigeria is a sovereign nation. The policy will lead to the influx of Chinese goods into our country considering that we are con-

tending with weak regulation,” he said. Si m i l a r l y , Au s t i n e Nwaeze, a lecturer in the department of Economics, Pan Atlantic University, Ibeju-Lekki, Lagos told NAN that the deal was only good on its surface value. He noted that in the long run, the initiative would allow the Chinese to compete with our local businesses, thereby, impeding the growth of indigenous firms. Nwaeze said the only benefit of the currency swap deal for Nigeria was that in the short run, it would address third party sourcing of the Chinese currency by Nigerian importers. “However, it will take the trade deals with the Chinese to a new height and reduce the pressures of our foreign exchange,” he said. NAN reports that the CBN and the PBoC have begun the execution of a 2.5 billion

dollars (Renminbi 16 billion) bilateral currency swap agreement entered into over two years ago. Godwin Emefiele, CBN Governor led some officials of the apex bank to the signing ceremony in Beijing, China. His PBoC counterpart, Yi Gang, headed the Chinese team. The pact was the result of over two years of negotiations between both banks. The transaction is aimed at providing adequate local currency liquidity for Nigerian and Chinese industrialists and other businesses in order to reduce their difficulties in the search for a third currency. In a statement, CBN Acting Director, Corporate Communications Isaac Okorafor, explained that Chinese businesses would get naira liquidity and Nigerian businesses, RMB liquidity under the agreement.

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COMPANIES & MARKETS Heritage Bank reiterates commitment to agricultural financing HOPE MOSES-ASHIKE

eritage Bank Plc, one of Nigeria’s most innovative banking service providers, has reiterated its commitment to the sustenance, growth and development of Nigeria’s agricultural sector. Divisional Head of Corporate Communications, Heritage Bank, Fela Ibidapo, who disclosed this in a statement said the bank is committed to leading the way in agricultural financing in the country. Ibidapo explained that Heritage Bank, in its determination to deliver on this promise, is currently funding various agricultural projects in several states of the country, especially in Oyo, Kaduna and Zamfara states. He said Heritage Bank has entered into a partnership with the Oyo State Government to support the multibillion Oyo State Agricultural Initiative (OYSAI), a pro-

gramme designed to revive agriculture, boost agro-allied businesses and empower the youth and women across the state through the creation of thousands of jobs in the sector. According to him, Heritage Bank is also supporting an agro-investor, Triton Aqua Africa Limited (TAAL), with a N2 billion facility in collaboration with the Central Bank of Nigeria (CBN) under the Commercial Agriculture Credit Scheme (CACS). The facility will enable TAAL to set up a fishery production chain in Lagos, Oyo and Osun states. Ibidapo said this support to the agro-investor became imperative after research showed that Nigerians consume about 2.7 million metric tonnes of fish yearly compared to the paltry 800,000 metric tonnes of fish that is produced locally every year. Consequently, the country has had to rely on importation to augment the shortfall with an estimated cost implication of about $700 million yearly in

foreign exchange. He said the partnership between Heritage Bank and TAAL would help reverse the trend, adding that the firm will use the facility to expand its aquaculture businesses by setting up a nursery/hatchery for the production of fingerlings and brood stock as well as earthen ponds for catfish and tilapia in the three states. Under the arrangement, TAAL is expected to assist small-scale farms in the three states to increase their fish production by making fingerlings available to them. In the short term, the loan is expected to help the group double its current production capacity of 25,000 metric tonnes with a projection to scale it up to 100,000 metric tonnes in five years. Ultimately, the partnership between Heritage Bank and TAAL will help to boost local production, conserve scarce foreign exchange and enhance food security, and ultimately result in the creation of hundreds of new jobs.

Longrich to site $20m factory in Lekki Free Zone SEYI JOHN SALAU

s part of efforts to grow its market reach and sustain the current trade exchange between Nigeria and China, Longrich, a Chinese firm on Tuesday lay foundation to a $20 million factory at the Lekki Free Zone, Lagos. The factory is the first of its kind to be sited by the Chinese firm outside the shores of china. Alex Jia, GMD, Longrich Africa said the company in its growth trajectory plan to be the 5th largest company in the world in five years, thereby growing Longrich supply chain in Nigeria and Africa. According to Jia, Longrich have invested over $30million into the Nigerian economy

and are ready to bring in technological support needed with the foundation laying of its first factory outside China to scale up its market share in Nigeria. “Longrich is building its first oversees manufacturing plant in Nigeria because the government and the people deserve Lonhrich for a better living. It will create over 1000 direct job opportunity especially for the local people,” he stated. Akinwunmi Ambode, Governor, Lagos State said the state will continue to put measures in place to ensure sustainable business environment in Lagos, and especially along the Lekki Free Zone area, as he reiterate the state willingness to partner with the private organisations in the state towards women and youth empowerment. Ambode who was repre-

sented by Olayinka Oladunjoye, Commissioner for Commerce, Industry and Cooperation said the government will give maximum support to every investment coming into Lagos as the economic hub of Nigeria. Biodun Dabiri, Chairman, Lekki Free Zone appreciated Longrich effort of siting its first factory outside China in the zone as he pledged their support for the factory and other business interest in the Lekki Free Zone. However, the construction authorization contract was signed by Huang Xi Gong, CEO Lekki Free Zone and Xu Zhi Lun, Vice President, Longrich. With the authorization signing, the company proceeded onto the sight to lay its foundation blocks for Longrich Nigeria factory.

Business Event

L-R: Omar Fischer, co-founder, TellCo Switzerland ; Wale Omole, chairman , TellCo Europe Nigeria; Victor Fadeke, MD, TellCo Europe Nigeria ; David Collett, group chairman, Catch Energy; Kelvin Odior and Rudolph Fielder, CEO, Europe TellCO, during the inauguration and official unveiling of TellCo Sol off- Grid Solar Power System in Lagos ye sterday . Pic by Pius Okeosisi

LR: Nino Ozara, director manufacturing - Honeywell Flour Mills Plc, Narendra Nargarka, head national sales business-to-commercial, HFMP, Rotimi Fadipe, director supply chain, HFMP, Opeyemi Raji, 1st position, Noodles, Pasta,Wheatmeal &Semolina category; and Lanre Jaiyeola, managing director, Honeywell Flour Mills Plc,during the company’s annual customers’ forum, in Lagos...on Tue

L-R: Adebimpe Adebiyi, director Family Health, Federal Ministry of Health; Ifeanyi Okoye, MD/CEO, Juhel Nigeria Limited, and Frank Jacob, president, Manufacturers Association of Nigeria (MAN), at the press conference on the unveiling of Oxytocin and Magnesium Sulphate injections in Lagos.

Fuel Communications launches campaign for Children’s Day

s part of activities to mark its eighth anniversary, marketing agency, Fuel Communications has launched The Priceless Gift Challenge in commemoration of Children’s Day. In a twist of creativity and corporate social responsibility, the campaign seeks to increase the amount of time that parents spend with their children in order to bring about healthier families and better societies. Launched on Fuel’s Life Brief Initiative, the campaign will ignite this movement by challenging parents and parents-to-be to

post online a 15 seconds video of themselves promising to spend more time with their children and tag two of their friends. The Challenge will not just set up parents and parents-to-be to fulfil that promise, by tagging their friends it will create a chain of awareness on the importance of the quality time that parents spend with their children all over the world. Tunji Abioye, managing director of Fuel Communications, says the agency put together this campaign because, of all the sacrifices that parents make for their children daily, it is getting

almost impossible to get them to spend more time with their children. He explains that while it is important to provide for the child, it is equally important to spend quality time with them. To be a part of this project post the video on Facebook, Instagram or Twitter with #fuelchallenge tagging two friends from May 12 to 26. On May 27, share a picture of quality time spent with your children with #fuelchallenge for a chance to win the family dinner prize. The Life Brief is Fuel’s initiative for providing solutions to salient life matters.

L-R: Roman Troedthandl , managing director, Canon CCNA; Mohini Ufeli, MyNaija winner ; TY Bello, Canon brand influencer; Deji Oyebamiji ,MyNaija winner, and Stefano Zenti ,head of emerging markets business unit, Canon, at the Canon Showroom during the visit of Stefano in Lagos. Pic by Pius Okeosisi

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Hygeia HMO’s strategic investment is driving Healthcare service OBINNIA ABAJUE the Chief Executive Officer and Director of Hygeia Healthcare Nigeria, with over 20 years’ experience across a number of sectors including banking and health. He spoke to BusinessDay’s OBOKOH ANTHONIA on a number of issues regarding health insurance industry over the next few years not only in terms of market penetration and coverage but also a significant increase in technological sophistication. Excerpts:

Hygeia’s success story ygeia has over 30 years extensive experience implementing healthcare solutions to corporate and non- corporate clients that cut across all sectors of the economy with strategic investment from notable global institutional investors including Swiss Reinsurance Company Ltd, generally known as Swiss Re; International Finance corporation (IFC), the private sector arm of the World Bank Group; Investors For Health in Africa (IFHA), an Africa-focused Healthcare fund backed by FMO, Goldman Sachs and Social Investor Foundation for Africa; CIEL healthcare: A French healthcare company based in Mauritius, providing hospitals in partnership with Fortis Healthcare of India; and The Elebute Family: Professor and Professor Elebute who are the founders of Hygeia HMO and still remain shareholders. Hygeia has been at the forefront of health care provision in Nigeria. Hygeia has also been active in driving the quality of care delivery and access and has contributed towards setting the standard for provider accreditation in the country.

would therefore say that our plans, products and services are appropriate, affordable, transparent and convenient to use.

With 2 decades of banking experience, how was your journey to becoming the CEO of Hygeia HMO? Well, banking is probably the most sophisticated services industry in Nigeria today and having worked with some of the finest and leading financial institutions in Nigeria and Africa, I believed that it was time for me to apply that learning and experience to an area with a bigger impact on the Nigerian society. The fundamentals of any society are its education and its health systems. Investment in these areas is what guarantees the availability of human

Constraints in your sector and strategies Hygeia put in place to mitigate those threats?

resources/skill and the competitiveness of the society and its labour force over time. The biggest attraction of developed countries to our people which is what supports emigration is the opportunity for a better education and/or healthcare. It may also surprise you that the biggest deficits in labour are also in these areas so continuing improvement of these sectors provides for increased employment opportunities in these societies. In addition, when you consider the maturity of our country and the gradual reduction of maternal and infant mortality, the demand for better health care and access to it means that there is a significant opportunity for intermediation and inclusion in the health sector. So, it made sense, when the opportunity presented itself for me to move into the health insurance industry to contribute my quota to developing Nigeria actively. Plans, products, servic-

es and what makes them unique? At the heart of mission at Hygeia HMO is the provision of affordable access to quality healthcare. We are committed to making healthcare available for all. Fortunately, this is completely aligned with the government’s commitment to Universal Health Coverage. In keeping with our mission, we have developed plans that cater to the needs of various Individual, SME and Corporate needs in the market. So, in addition to the typical corporate health insurance services that we offer, we now make it possible for an individual to purchase a health plan to cover himself or his/family without being part of a company. To ensure that our enrollees/beneficiaries across the country are able to access healthcare more easily, we are also putting more power in the hand of our enrollees via our Hygeia Mobile App. I

As I mentioned earlier, limited awareness is a major issue as most Nigerians are not aware and do not understand or appreciate the need for health insurance. This is why we see so many cases of people begging for assistance to take care of health conditions/issues that have befallen them or their loved ones. Most of these were avoidable if they had purchased health plans when they were healthy. They would have had access to periodic health checks and would have been in a position to detect and manage the conditions early before they degenerated. A key benefit of health insurance is the reduction of the financial risk of ill-health which many have not taken advantage of. Additional issues that impact the industry include that absence of provider regulation and quality standards for hospital care and management. There are also issues of fraud and the limited availability of data which impacts product development and risk management. Hygeia is working with various partners to address most of these issues starting with product development and awareness through various media and channels. We are deploying technology across the value chain to improve access to healthcare as well as improve the transparency and service process for healthcare access. Services like our mobile app, online claims payment for providers and USSD verification tools help to improve access to healthcare while

protecting against identity fraud at hospitals. Hygeia is a thought-leader in the health industry and responsible for critical engagement for a for key industry participants. Current trends prevalent in the healthcare industry. Your projections for the sector in the nearest future? There is currently a lot of focus on new investments in hospitals and some in health industry technology. However, over the next few years, I see the top 2 issues being (1) technology because of the environmental constraints. Awareness and capacity deficiency can be mitigated by technology adoption. Smartphone technology is getting cheaper still and more available and affordable while health apps and virtual reality technology are also coming mainstream. These developments will make it easier to reach more people for preventive and primary care services. Self Service technology also means that more people can get help through nontraditional medical centres reducing the need to more specialised medical centres. (2) Health insurance coverage because the assurance of payment is critical for investment and the access to finance is based on guaranteed cash flows which are only available with health insurance. Furthermore increased risk awareness will encourage more people to see to transfer the financial burden of ill health which will drive product development and demand for insurance products in the health space. Based on the above, I expect significant growth in the health insurance industry over the next few years not only in terms of market penetration and coverage but also a significant increase in technological sophistication.

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Ugwuanyi approves N17mn monthly for free maternal ANTHONIA OBOKOH

nugu state Governor Ifeanyi Ugwuanyi has approved monthly contribution of N17 million as counterpart fund for Free Maternal and Child Health. The programme was designed to provide primary healthcare to children under the ages of 0 to five and pregnant women at the grassroots level. The Enugu state Commissioner for Health, Fintan Ekochin, who briefed newsmen after the meeting of the State Executive Council (EXCO) noted that the local governments in Enugu State was contributing the sum of N8.5 million monthly. Ekochin said that the council noted that the amount being contributed by local governments to fund the programme was not sufficient to provide treatment to all the pregnant women and children under five years at the primary health centres, and decided to approve additional N8.5 million monthly, totaling N17 million every month for effective and efficient healthcare services in the state. He said that the council’s

N8.5 million approval was “one of the greatest approvals in the history of Enugu State”. The Commissioner noted that the counterpart fund would provide succor to the teeming young mothers and children who were unable to afford better healthcare services. He stated that the new approved funding was a prelude to better things to come in the primary healthcare delivery in the state, saying: “With this funding approved, the Enugu State Primary Healthcare Development Agency in line with federal guidelines, is going to commence repositioning, refurbishing and reactivation of primary healthcare centres”. Ekochin further stated that the programme implementation will come in three phases, explaining that the first phase will be the establishment of flagship primary health centres in the three senatorial districts of the state, while the second and third phases will be focused on having one and two healthcare centres in ten local governments, respectively. “Now with all these primary healthcare centres repositioned, you can imagine the ease and comfort women who are pregnant and chil-

Governor Ifeanyi Ugwuanyi

dren under five will have accessing the free maternal and child health programme. “This is why EXCO approval of counterpart funding is really a big deal. This funding puts Enugu State in a very big position to fulfill the World Health mandate of universal health coverage, and kudos must therefore, go to His Excellency, our dear Governor, Rt. Hon. Ifeanyi Ugwuanyi for this positive step towards qualitative and affordable healthcare delivery in Enugu State”, Commissioner said. In a related development, Ekochin also told newsmen

that following the mandate given to the Federal Ministry of Health to set up a National Steering Committee to evaluate the implementation of the Regional Disease Surveillance (REDIS) Project, Enugu State was selected to represent the South East geo-political zone in the committee. He equally added that accreditation has been granted and restored to the School of Basic Midwifery, Awgu, Awgu L.G.A and School of Nursing and Midwifery, Bishop Shanahan Hospital Nsukka, Nsukka L.G.A, respectively, by the Nursing

and Midwifery Council. The commissioner explained that Gov. Ugwuanyi’s administration in its concerted effort to ensure that the midwifery school in Awgu was accredited approved the sum of N35 million in the third quarter of 2017 for the accreditation exercise. Ekochin also disclosed that the state government has been regular in the payment of counterpart bill for the Bishop Shanahan Hospital, Nsukka, which contributed highly to the restoration of accreditation to the health institution’s School of Nursing and Midwifery.

Nestle intensifies fight against malnutrition, trains health workers in Ogun RAZAQ AYINLA, Abeokuta

s part of efforts to fight nutrients deficiency in the country, especially among infant population which accounts for stunted growth, cognitive impairment and anaemia, Nestle Nutrition Institute Africa has intensified training and empowerment of health workers across the country with a view to fighting malnutrition and nutrients deficiency in Nigeria. The global health and wellness firm - Nestle Nigeria PLC, organised a two-day Nutrition Academy for scores of health workers, paediatricians and other health personnel drawn from various primary and secondary health centres across Ogun state where main clinical issues as regards malnutrition as well as nutrients deficiency among infants were discussed and the

HBL TEAM

L-R: Iyabode Dedeke, Consultant Pediatrician, Federal Medical Centre (FMC), Abeokuta; Chioma Emma-Nwachukwu, Co-ordinator, Nestlé Nutrition Institute Africa (NNIA); Elijah Ogunsola, Executive Secretary, Ogun State Primary Health Care Development Board and Morufat Ogundeyi, Head, Pediatric Department, Federal Medical Centre (FMC), Abeokuta, during a two-day Nutrition Academy organized recently by NNIA in collaboration with the Ogun State Ministry of Health Abeokuta.

KEMI AJUMOBI, Editor - kemi@businessdayonline.com

solutions were also proffered by experts in attendance. Speaking at the Nutrition Academy organised by Ogun State Ministry of Health in conjunction with Nestle Nutrition Institute Africa held in Abeokuta recently, Chioma Emma-Nwachuckwu, Coordinator of Nestle Nutrition Institute Africa in Anglophone Central and West African Countries, declared that Nestle Nigeria organised “the training in line with the vision we have set for ourselves, here in Africa, we have our children dying young, we’ve a lot of challenges in that area. “That is why Nestle has to the African continent where our people will live healthier and longer and not dying young. We are organising this training in 22 Countries of both Anglophone and Francophone African Countries. 12 of such are being held in Anglophone Countries, we have

done 11 and reamians one. One of the trainers, Morufat Ogundeyi, Consultant Paediatrician and Head, Paediatrics, Fedeal Medical Centre, Abeokuta, noted that the clinical training was apt and would address health challenges as regards malnutrition and nutrients deficiency which she said, contributed to low reasoning, thinking and productivity of man that affects gross domestic product and brings poverty. Also, Bamidele Bashorun, Chief Nursing Officer in Paediatrics Department, Federal Medical Centre, Abeokuta, solicited for constant and adequate information as regards what constitutes healthy and nutritious diets, saying expectant women and nursing mothers as well as care givers must be well informed on what is needed to boost man’s diets.

ANTHONIA OBOKOH, ANI MICHAEL, Reporters I David Ogar, Graphics

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Products Review

Technology Review

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Company Review

TECHNOLOGY REVIEW

Low internet numbers show why ATM queues wonâ&#x20AC;&#x2122;t go away soon Stories by FRANK ELEANYA

igerians preference for Automated Teller Machine (ATM) continued to grow in the first quarter of 2018, according to new data from the National Bureau of Statistics (NBS). The implication is that pressure on the 17,449 ATMs available for 84.37 million active cards across the country will only grow and could get to crisis levels if internet service does not improve. The NBS report showed that 212,270,853 volume of ATM transactions valued at N1.568 billion were recorded in the first quarter of 2018. In contrast, the Nigeria Communications Commission (NCC) has revealed that the number of fixed and wireless lines shrunk by 0.6 percent in March to 136,781, as against the 137,570 recorded in February, showing a decrease of 2,082 lines. To be sure, this is not the first decline in 2018. The number of lines

also dropped in January to 137,262 from 139, 344 it saw in December 2017. The NCC combines both fixed and wireless in its monthly measurement. While the decline in fixed lines could be attributed to the increased attractiveness of mobile broadband (wireless), a situation where both are in decline has serious implication for the growth of a cashless economy. It should be noted that the poor state of fixed and wireless broadband infrastructure means internet penetration is more widespread in urban centres such as Lagos, Abuja etc, where internet operators can access relatively reliable infrastructure. It also means that a greater number of ATMs and financial services are concentrated in these urban areas, leaving the most parts of the rural areas underserved. ATMs need a good internet service to function at full capacity. They need to connect to, and communicate through a host processor. The host

processor is analogous to an Internet service provider (ISP) in that it is the gateway through which all the various ATM networks become available to the cardholder (the person wanting the cash). An executive in one of the companies that provide ATMs

services for financial institutions told BusinessDay that more than 70 percent of ATMs are located in just three cities including Lagos, Abuja and Port Harcourt. The same applies to the 84.37 million active cards across the country. The impact of poor internet

services is underscored by the significant number of subscribers migrating from one mobile internet provider to another. The NCC data showed that Airtel gained the most new internet users in March with 401,209 people joining its platform and increasing its

subscription from 25,075,110 in February. Operators like MTN lost 534,769 internet users in March, 9Mobile lost 1,346,470, and Globacom also lost 40,233 internet users. Although there may be other factors that cause ATMs to break down, poor internet service however is at the top of the list. It is also a disincentive for ATM operators. The state of the internet of a place is a major consideration in whether to locate an ATM there. Internet penetration is also part of the factors driving the cost of running an ATM. In the place of increasing the number of ATMs they run, most banks have resorted to investing more in their digital offers. But without good internet service the digital offerings will struggle in many parts of the country. It is therefore incumbent on regulators such as NCC to intensify the drive for internet penetration by providing adequate infrastructure for providers to thrive.

PRODUCT REVIEW

From LEO to Ada: How Nigerian banks get creative with chatbots

t Facebook F8, an annual developer conference that held from 1 to 2 May at San Jose, California, one of the innovations Mark Zuckerberg, founder and CEO of Facebook, highlighted was a Nigerian chatbot called LEO, created by United Bank for Africa (UBA). It may have been a brief moment, but it was no less a significant introduction to the global technology community that innovation does live in Nigeria

too. It was also a plus and a testament to the fact that Nigerian banks are not pushover in the disruption landscape. A chatbot refers to a computer program or artificial intelligence designed to simulate conversation, answer queries, and handle specific requests. In so doing, it mimics critical human actions like thinking and decision. The technology has been around for a while, its uniqueness however lies in its capacity to learn and improve.

Companies can choose launch their chatbot on any major chat product like Facebook Messenger, Slack, Telegram, and Text Messages. In Nigeria, Facebook has played a major role in the adoption of chatbots by businesses. Specifically, in April 2016, the social media giant, started to allow businesses deliver automated customer support, e-commerce guidance, content and interactive experiences through chatbots. Bots are able

to send more than just text using the Facebook Messenger platformâ&#x20AC;&#x2122;s Send/Receive application programming interface (API). Since Facebook opened its platform to businesses, only a few companies have leveraged the opportunities that in chatbots. However chatbots from non-Nigerian companies such as Google, Twitter, Amazon, Samsung and Apple have already become quite popular with people that use them. UBA happens to be the first

commercial bank in Nigeria to launch a chatbot on the Messenger app in January 2018. The financial services industry is one of the sectors projected to see the most disruption with chatbots. Prior to UBAâ&#x20AC;&#x2122;s launch, fintech companies such as Kudi.ai and CowryWise already offered services using their homegrown chatbots. Jumia, the ecommerce giant also launched a chatbot in 2017. Diamond Bank has followed

in the footprints of LEO, by unveiling Ada. Like LEO, Ada provides personalised experience for Diamond Bank customers. The opportunities chatbots offer to companies are underscored by the increasing number of people now spending more time in messaging apps than on social media and that is a huge turning point. Messaging apps are the platforms of the future and bots will largely be how users access all sorts of services.

BUSINESS DAY

Friday 11 May 2018

CityFile 9 killed in fresh attack in Taraba

L-R: Funso Ayeni , manager, senior brand-mainstream brands NB plc; Ariya Repete Drumming/Dance Group finalists, and actor, singer and film-maker, Odunlade Adekola, at the Goldberg Ariya Repete semi finals in Lagos. Pic by Pius Okeosisi

C’River’s pace of industrialisation amazing, says Akpabio MIKE ABANG, Calabar

ormer governor of Akwa Ibom State and senate minority leader, Godswil Akpabio says he is amazed by the level of industrialisation in Cross River State. Akpabio who was dazed by the technological sophistication of the state’s rice seedlings plant under construction, during an inspection of the industrial complex, described Governor Ayade of Cross River as a ‘digital transformer’. The senate minority leader said for Ayade who became governor at a time of recession and receiving meager federal allocations to have achieved such accomplishments was sheer intellectual capacity. “To come to Cross River and witness these giant strides being made in the area of industrialisation for food sufficiency and employment creation, I strongly believe that if I talk, Nigerians will not take it as mere political talk because I have seen it with my two eyes and I am equally

inviting other Nigerians to come and bear witness to what is happening in this state. “I’m a bit shocked as I arrived this site. I knew that Governor Ayade was doing well but I didn’t know the extent to which he has gone. I’m shocked because this is the period of recession when even payment of salaries is a difficult thing for many states. “And again, this is a period of insecurity were people are dying almost on a daily basis in Borno, Benue, Plateau, Yobe, Adamawa and Zamfara, either from herdsmen attack or Boko Haram. So, sincerely Nigeria is not a very attractive destination for investors. Yet Ayade has achieved this much,” Akpabio said. He explained that the seeds multiplication plant was the first of its kind in sub-saharan Africa and with a very high yield producing rice seedlings, fully vitaminised that when cultivated, would not only feed the people of Cross River and Akwa Ibom States but other parts of the country. At the Calabar garment factory, Ak-

pabio said: “This is the biggest garment factory I have ever seen. It provides employment and skills for thousands of youths. “I was a governor and I know how difficult it is to start a project and end it successfully and payment of salaries is itself a major project. And if Governor Ayade is doing this effortlessly with lean resources and in the period of recession, the people should be appreciative of this gesture and I pray that God will give him the enablement. On his part, Ayade said: “We know Senator Akpabio does not mince his words, when he speaks, his comments carry weight and the testimonials that he has given here are classical elucidation of his truth and dialectical dissection of what he has seen on ground. “I believe that the people of Cross River will listen to this man of quality whose foot prints in Akwa Ibom, Nigeria and indeed Africa remain indelible long after his tenure as governor. And so, for him to endorse me is very ceremonial and calls for true celebration.

150 benefit from Edo’s career kick-starter

do State has commenced a threeweek employability skills training for 150 youths in its Career Kickstarter programme to equip them with relevant technical and soft skills for the workplace. The state’s skills development platform, EdoJobs, organised the training after short-listing participants from its database. The 150 youths are the second batch of trainees under the Career Kick-starter initiative, being executed by GidiJobs. Senior special assistant to the state governor on skills development and

jobs, Ukinebo Dare, said that the Career Kick-Starter programme was developed to help disadvantaged youths become competitive and employable within the job market. “It is a career building platform aimed at bridging the gap between the knowledge gained from the formal education sector and the knowledge, skills, and abilities required to function effectively in today’s global work environment,” she said. She noted that the initiative is being championed in a bid to create 200,000 jobs by 2020 by the Governor Godwin

Obaseki led-administration, adding that the training will culminate in a jobs fare. According to her, the modules to be taken includes, business writing, accounts for non-Accountants, problemsolving and use of initiative, workplace ethics and telephone etiquette, professional dress sense and confidence building. Others, she said, are excellence in customer service, selling skills and information and communication technology skills. She said the target was for the beneficiaries to become directly engaged/selfsufficient upon completing their training.

ine persons have been confirmed killed in a fresh attack in Taraba State. The attack was launched early morning on Wednesday at Tutuwa community in Ussa local government area of the state. David Misal, the police public relations officer in Taraba, who confirmed the killing, blamed it on a yet-to-be identified armed militia. According to Misal, a police team head by Aliyu Tafida, a deputy commissioner of police, Taraba command, and heads of other security agencies in the state have moved in to assess the situation. Rimansikwe Karma, the chairman of Ussa local government council, while also confirming the attack to newsmen, added that three people were injured. Karma said that the attackers rounded up the village at about 5 a.m. and launched the attack when members of the community were going for early morning prayers. “Every Wednesday morning, the community conducts mid-week service and most of them were on their way, when the armed militia attacked them. Nine persons were killed and three others sustained life threatening injuries and are currently receiving medical treatment. “The unfortunate thing is that the attackers left before the arrival of security personnel,” Karma said.

Firm launches empowerment initiative

arkhust Group has launched an initiative geared towards adopting, training, mentoring and empowering start-ups and providing the needed support to small medium enterprise in Nigeria. The initiative, launched in Lagos recently, is called Parkhust Empowerment Entrepreneurship Initiative (PEEI). Present at the event was Ololade Valentina Abuta, the executive director of Parkhust Group; Olalekan Alabi, managing director of Parkhust Group; Kamal Ayeni, board member of Parkhust Group, and delegates chosen from different sectors of Nigerian business community. According to Alabi, the managing director, his opening speech, there are many brilliant people with business ideas in Nigeria that are wasting because they are not exposed to proper training and mentorship needed for growth and success in business. He emphasised the mission of the initiative as one that had come to train and empower people to set up their business ideas, which in turn would combat poverty, a major scourge in the country and pivotal to crime and insurgence. The initiative would be offering grants to successful entrepreneurs who enrol for the programme. Following the Group’s core value, which is “we believe we rise by lifting others,” the executive director, Ololade Abuta, said for entrepreneurs to participate, all they need to do was to visit the Group’s website and follow through a training and deliver business projects and plans, and they would be then screened to get the grant. The delegates, who attended the event, were also told to be leaders in their community and identify business ideas that need support for growth.

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Hotels Marriott International matches expansion plans with actions

Top BusinessDay Partner Hotels Novotel Port Harcourt Address: 3 Stadium Road Rumuomasi, Port Harcourt Rivers State, Tel: 0809 713 5734

… opens new hotels in West Africa OBINNA EMELIKE

ince the acquisition of Protea Hotels, a once South African-based brand in April 2014 and Starwood Hotels & Resorts Worldwide, Inc., in 2016, Marriot International has assumed the world’s largest hotel company. However, the Bethesda United States of Americabased hotel company is committed to the expansion of its footprint in Africa, especially in the sub Saharan region with the quality hospitality offerings in recognition of the fact that travel to and within sub Saharan Africa has continued to grow at impressive rate. Recently, the global hotel company opened two flagship hotels in West Africa. Shortly after opening Accra Marriott Hotel, a new hotel in the capital city of Ghana owned by African Hospitality Limited in April, Marriott International opened yet another brand new hotel; Sheraton Bamako Hotel, marking its entry into Mali, in West Africa. While the Accra hotel is strategically located opposite the Kotoka International Airport, making it the perfect “Gateway to West Africa”, Sheraton hotel is located in close proximity to Bamako’s Modibo Keïta International Airport in one of the city’s most sought-after neighborhoods. Besides offering a panoramic view of the Niger River, the Bamako hotel features 200 well-appointed guestrooms including; 27 Sheraton Club rooms and 32 suites, Sheraton® Club Lounge, a state-of-the-art Sheraton® Fitness Centre, a spa and an outdoor pool for

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

Protea Hotel Apo Apartments Address: Ahmadu Bello Way, Apo, Abuja Tel: 09 480 1818

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

guests to relax and recharge for the day. As well, with an enviable location, the hotel seamlessly blends modern, elegant design, with distinct local touches to create a vibrant aesthetic and a compelling sense of place. Signature brand programing and an elevated guest experience create a warm and welcoming atmosphere that makes for an ideal gathering place for business and leisure travelers, as well as, the local community. In the other hand, the Accra hotel offers 208 well-appointed rooms, three enticing dining venues, 800-sq-m of meeting space, a pool and a fully equipped fitness centre. Amenity-filled guest rooms, progressive dining, cuttingedge technology, flexible and exemplary meeting facilities and a brand new social event experience make every guest stay special, while innovative spaces, such as The Greatroom allow guests to seamlessly blend work and play. Modern and sophisticated in its approach, providing experiences that keep the mind balanced, sharp and

inspired, the hotel is the ideal starting point for travellers to do their business or discover the bustling city of Accra. Speaking on Sheraton Bamako Hotel, which is an outcome of a collaboration with Koira Holding Group, promoter of the project, Alex Kyriakidis, president and managing director, Middle East and Africa, Marriott International, said, “We are thrilled to build on Sheraton’s proud heritage in Africa that dates back to 1971. Over the last four decades, the brand has maintained its first mover advantage through strategic pipeline development and growth, giving global travelers access to more destinations across the continent. Sheraton Bamako Hotel not only marks our entry into a new country, but also serves as a great example of our transformation efforts around the brand.” Expressing his satisfaction over the opening of the hotel in Bamako, Cesse Kome, chairman/CEO, Koira Holding Group, said, “I am very proud to partner with Mar-

riott International to bring the Sheraton brand into Mali and I am confident this hotel will set a new benchmark in hospitality within the country.” For the Accra hotel, Kyriakidis explained that Marriot International is thrilled to open the Accra Marriott Hotel, a highly anticipated addition to its Africa portfolio and a significant milestone in its journey. “Accra is the heartbeat of Ghana, a dynamic city bustling with energy. A commercial, manufacturing, and communications centre with great shopping and excellent nightlife, it makes an interesting travel destination both for business and for leisure. The Accra Marriott Hotel will add to the city’s maturing hospitality scene, inspiring guests with more forward-thinking experiences and aesthetically inspiring spaces that speak to their inventive nature”, he said. Boldly transforming itself for mobile and global travellers, Marriott Hotels, according to him, inspires brilliance leading the industry with innovations.

Sheraton Lagos Hotel to mark Hamburger Day on May 28th

he innovative food and beverage teams of Sheraton Lagos Hotel are happy to participate in yet another exciting global food festivity.The hotel teams are set to celebrate Hamburger day. According to Damian Cooper, deputy general manager and equally in charge of Food and Beverage operations for the hotel, “Our location strategically positions us at the epicentre of Ikeja’s

bustling area and enables us to frequently welcome visitors and diners calling in to snack and dine at our newly renovated outlets and enjoy our offerings”. “In this regard, our hotel will go beyond to celebrate one of the cornerstone foods of western civilization – the hamburger. While this food was initially invented in Hamburg, Germany, its popularity has spread like throughout the World. This is why May 28th is penciled

down as a day to celebrate the burger”. “Our mouthwatering burgers are renowned for its deliciousness and as one of our customer favorites topping our list on request; therefore our goal is to for exceed our burger foodie’s expectations”. “We gladly urge everyone to come and enjoy a classic burger with your favorite choice of toppings alongside a free Pepsi Cola for just N6,000”.

“At Sheraton Lagos, we ‘Go Beyond ’to position ourselves not just as a hotel for business travelers but also a destination that creates enriching experiences for leisure seekers too”. “With the hotel’s proven success and exceptional reputation in culinary expertise,Sheraton Lagos Hotel looks forward to celebrating one of the world’s favourite sandwiches with loyal guests and customers”, says Cooper.

Chida Hotel International Address: Plot 224, Solomon Lar Way, Utako, Abuja Tel: 0810 871 8882

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

206 Hotel Plot 206 Cadastral Zone B02 Opposite Kenuj 02 Mall, Oladipo Diya Road, Durumi District, Abuja Tel: 08119707993 Email: 206abuja@gmail.com

Protea Hotel (GRA Ikeja) GRA Ikeja

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

Gombe Jewel Hotel, 22, Njamena Street, off Aminu Kano crescent Wuse 2, Abuja.

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

BUSINESS DAY

Friday 11 May 2018

Harvard Business Review

ManagementDigest

Do entrepreneurs need a strategy?: It’s not about the framework Uber and Yahoo — to which today’s entrepreneurs look.

CARL SCHRAMM

HAT MANY BUSINESS SCHOOLS TEACH HAS LITTLE TO DO WITH ENTREPRENEURIAL SUCCESS. Imagine that you’re an entrepreneur at a crossroads. You’ve worked hard to develop a new platform, and you feel that it’s time to take it to market. But the vice chairman on your board says that your product needs at least three more months of development and that he will recommend further investment only if you define a clear go-tomarket strategy and present a plan for implementing it. Should you follow his advice? Without empirical data on the track record of ventures similar to yours, it’s impossible to know which course of action would be better for your startup. In his book “The Lean Startup,” drawn from his experience birthing a software company, Eric Ries tells readers that co-designing products with customers is a better path to success than writing a business plan. That complements a thesis proposed by Steve Blank and Bob Dorf in “The Startup Owner’s Manual”: that every startup’s principal task is to search for a scalable opportunity — an entirely experiential learning process that is not amenable to a pre-articulated strategy. Joshua Gans, Erin Scott and Scott Stern argue that following the advice of Ries, Blank and Dorf would usually be wrong, because the absence of a strategic framework for evaluating options leads to uninformed strategic choices. I disagree. THE ENTREPRENEURSHIP INDUSTRY Until the 1980s no one really taught entrepreneurship, and business academics had no apparent interest in how com-

panies actually came into existence. They focused on preparing students for careers in giant banking, manufacturing, transportation and consumer products enterprises. Then came Bill Gates and Steve Jobs. Eager to emulate their success, a growing number of MBA students insisted on getting instruction in what was soon called entrepreneurship. The resulting curriculum, drawn from the disciplines of strategy and finance, crystallized around a novel pedagogical exercise — namely, writing a business plan for an imagined startup. Soon a format with common elements, reflecting the criteria applied by potential investors, emerged. It’s easy to understand the appeal of this approach. All of us seek to reduce the risk of future events — an impulse that grows with the complexity of a project and the potential cost of failure. Developing a strategy and an action plan makes starting a business look more predictable and certain. THE PROBLEM WITH PLANS A deeply flawed assumption underlies the discipline of entrepreneurship as taught in many business schools. It is that a uniform logic can be applied to the process of starting a business — a logic that can be described and, if followed, will increase the likelihood of success for the

startup. But that assumption has never been properly tested: Although business historians have described the early years of a number of today’s large companies, business academics never developed longitudinal data regarding how new ones come into being, detailed the common characteristics of startups or described entrepreneurial behavior that could be replicated. Only recently have economists started to build such records. Instead, entrepreneurship scholars rely on case studies of successful startups. But those accounts are often highly suspect. Entrepreneurs don’t commonly keep diaries and orderly documentary trails in real time, which means we must rely on ex post facto recitals that are riddled with confirmation and other biases. Furthermore, failed startups leave few records, and failed entrepreneurs are less likely to succeed with subsequent attempts. Thus we cannot establish in any credibly empirical way what some experts refer to as a “science of startups.” The evidence we do have suggests that business school orthodoxy is at best questionable. None of the companies for which MBAs traditionally trained, including Alcoa, Disney, General Electric, IBM, PepsiCo, Procter & Gamble, Macy’s, United Airlines and Walmart, started with plans. Nor did iconic younger companies — Apple, Cisco, Facebook, Google, Nike,

THE NON-PLAN PLAN The traditional business plan familiar to students in the 1990s and 2000s has ceded ground to other approaches. But these newer alternatives don’t, it seems to me, represent much of an advance. Efforts by Alan Gleeson and Blank to rebaptize business plans as “models” rest on a very fine distinction. And in “Business Model Generation,” Alexander Osterwalder and Yves Pigneur propose a process that has would-be founders creating a visual canvas of their imagined enterprise. They compare the process to composing a successful painting, in which a set of specified and necessary components are in balance — in this case, infrastructure, customer needs, channels and finances. Neither of these efforts escapes the linearity of the planning process; one or more steps serve as required precedents of others. The entrepreneurial strategy compass advocated by Gans, Scott and Stern is more of the same. The authors argue that newly forming businesses will benefit from a systematic evaluation of four competing go-tomarket strategies: protecting the startup’s intellectual property, disrupting competitors, working within the existing value chain or creating an entirely new value chain. It is sad that 30 years into a period we might consider “the entrepreneurial revolution,” the advice academics hand out has progressed no further than this. LEARNING BY DOING In the absence of data permitting prescriptive advice, the entrepreneur really has no alternative but to learn by doing — a practice rooted in phenomenology, the school of philosophical thought that claims as proponents the likes of Hegel,

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

Heidegger and Derrida. According to phenomenology, people learn about the world through their experiences of it. Rather than analyze past data, they create new data of their own, and on the basis of what they discover they engage in new experiences, building up an understanding of their world as they proceed. It’s an approach taken by one of the world’s most successful businesses, Apple, which uses a learning-by-doing process called challenge-based learning in its Classrooms of Tomorrow project. It is also the only practical way for an entrepreneur to proceed. Predicting consumer reaction is nearly impossible without trial and error, because expert opinion on what is likely to catch on consistently fails. How else to explain the 1-7 ratio of successful investments in venture capital funds, many of which have four or five decades’ worth of experience on which to draw? Ultimately, entrepreneurs know that starting a business is fraught with risk only they can manage. Their task is to make decision after decision in unforeseeable circumstances. As events unfold, they present opportunities or dangers that cannot be evaluated before making a choice. Launching and managing a startup will never be reducible to a strategic framework, let alone run smoothly according to a pre-established plan.

(Carl Schramm is a university professor at Syracuse University, where he teaches innovation. An active venture investor, he was the CEO of the Kauffman Foundation for 10 years. His new book is “Burn the Business Plan: What Great Entrepreneurs Really Do.”)

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The day Lagos laughed Stories by OBINNA EMELIKE

hile the w orld celebrated World Laughter Day on May 6, 2018, the event took a more hilarious turn in Lagos. The city, which is better known as the entertainment capital of Africa lived up to its billing as it witnessed the largest gathering of comedians who rattled the fun loving audience with loads of jokes. It was a mixture of the old and upcoming comedy merchants. While the old thrilled with known jokes, the upcoming ones, with eyes on stardom, cracked jokes never heard before. If you were in the shoes of the unknown comedians, you will do same because there is N1million to be won that evening. The N1 million, courtesy of Akinwunmi Ambode, governor of Lagos State, is the star prize for the Ibile Comedy Challenge; a segment of the Lagos Laughs show, which is now in its second edition. The prize money set the tempo for the 15 contesting upcoming comedians at Eko Hotel and Suites, Victoria Island, Lagos to unleash their best; cracking jokes never heard before to woo the judges’ favour. But the interesting thing is that the judges were all the members of the audience listening to the jokes and hence the best truly carried the day. The audience kept choosing the jokes that resonate with their sense of fun till the winner emerged. For impressing the audience cum judges with his very hilarious jokes, Igbomgbo Gift Loveday won the star prize of the 2018 edition of the Ibile Comedy Challenge. The lucky guy won the governor’s N1million cash prize.

Some guests showing appreciation to hilarous jokes at the event

But how hilarious were Loveday’s jokes, if one may ask? The upcoming comedian used his less-charming looks to impress the audience. He called himself ugly and explained why he is ugly as well. With the self-battering humour, Loveday beat other 14 comedians to win the audience’s favour and governor’s money. “When I was in Primary School my teacher regularly used me as a specimen anytime he wanted my classmates to draw a monkey. Even when I grew up I become uglier. Till date, bouncers at clubs easily spot me out and deny me entry because my face is too ugly and will scare customers”, Loveday explained, and noted further that even if he manages to sneak in, other party dancers or members of the audience will report him to the bouncers. Speaking on the reason for voting Loveday, Funmi Daramola, a member of the audience, said that the comedian’s jokes were natural

and the delivery was seamless. “I see him going far with his passion for comedy if he continues to keep it fresh because we are tired of same jokes at every event”, she said. However, the comedy contest, which held the audience spellbound till late night, also witnessed other highlights, especially from older comedians. From comedic performances by SeyiLaw, Gordons, Gbenga Adeyinka, Omobaba, Basketmouth, Kennyblaq, SACO, DeeOne, Princess, Woli Arole, Lasisi Elenu, to Koffi, the show reeled the audience to an unreserved and unapologetic laughter. As well, DJ Bell Cheque and DJ Consequence thrilled the audience with music that complemented the comedy onslaught. As well, the Shuga Band, one of the biggest live bands in Nigeria, led by Akin Shuga, a polio ambassador, heightened the excitement at the event. The band offered live rendition of some of Nigerian classics, which some guests

danced to. The event, which is also in celebration of World Laughter Day, was a feast of celebrities who simply came out to enjoy themselves. From movie actors such as Ramsey Nouah, Deyemi Okanlawon, Nse Ikpe Etim, Toyin Abraham, Linda Ejiofor, Gifty Powers, Kunle Afolayan, to BBNaija’s Anto and Ahneeka and others, it was excitement galore. A major highlight of the show was the stage drama that humoured the Big Brother Naija housemates. Frank Donga and EmmaOhMaGod were the judges and comedian Ebiye was the police officer to bring in the culprits. Instagram sensation, Josh2Funny came on stage as Alex and eventually as Tobi. The judge gave their comedic verdicts to the applause of the audience but nothing could prepare the audience for the entrance of fast rising comedian, Mc Lively who posed as Collins (the supposed ex-boyfriend of Nina) and came to vent his anger to Nina and

the judges. The word hilarious does not explain his performance before he was dragged off the stage. The power show also play host to the Governor of Lagos State, represented by Senator Olamilekan Adeola ‘Yayi’, Commissioner for Information, Steve Ayorinde and a league of Lagos State top government officials. The minister for information, Lai Mohammed was also in attendance to support the project and share the message of the Federal Government in the area of arts. The minister, in his two minutes speech, commended Lagos State for being the art loving state and for supporting the comedy industry and other arts. Some of the other celebrities who commended Lagos for being the most supportive administration for the comedy industry are Comedian TeeA and Gbenga Adeyinka. Speaking concerning the successful show, Ayorinde said that the administration of Governor Akinwunmi Ambode decided to put its weight behind Lagos Laughs 2018 as part of effort to make Lagos the most thriving place for art and culture. “We are impressed with today’s showing. I am not disappointed at all. The show represents our resolve to put the Nigerian comedy industry on a pedestal with that of other parts of the world. It shows how we are deeply interested in putting smiles on Lagosians faces and more importantly, it represents how we are positioning Lagos as the tourism hub of Africa. The administration of Governor Ambode will always do everything within its powers to push art and culture in an unusual way”, he concluded. The World Laughter Day takes place on the first Sunday of May of every year. The first celebration was on May 10, 1998, in Mumbai, India, and was arranged by Dr. Madan Kataria, founder of the worldwide Laughter Yoga movement.

HiLife Fest 2018: Championing the cause of a sustained Igbo and highlife culture among millennials

nitsha, the commercial hub of the South East, Nigeria, got a taste of the HiLife Fest, themed ‘The Complete Experience, recently. The festival, which is a highlife music competition celebrating the cultural rituals and values of Igbos through music witnessed a host of talented upcoming artistes slugging it out for a position in the quarterfinals. The music fest, an initiative of Life Continental Lager Beer, featured stunning music performance from Obiligbo Brothers, Tipsy Kelvano, 2017 Hilife Fest King Chibest and Flavour; the king of Afro hip pop himself. The winners from Onitsha region were Don Ifeanyi Frank and Destiny Onochukwu while Ofuobi Cultural Group came tops and qualified to be in the quarterfinals

in the cultural dance category. The decision was not an easy one, as all contestants impressed the panel of judges, which included David Jones, Jude Aguize, Nicholas Akas, guest judge -Michael Ndubuisi and Bright Chimezie; a highlife veteran. In Owerri Regional Final, Elendu Chuks and Dozie Arthur were joint winners of the highlife performance, while the Asino Dance Group won the competition from the dance category. Also two contestants from Nsukka region, Prince Ngwu and Chinedu Obiajuru in the highlife music category and Umuchiziri Egwu Dance Group qualified to be in the quarterfinals. The winners from Onitsha, Owerri and Nsukka will now join Chukwudi Agbom, Emma Agbom and PC Nwabuzo dance group,

who are winners from Asaba, Kalapi Ojuka, Kelvin Emmanuel and Kanayo dance group, winners from Port Harcourt alongside Obiora Ikechukwu, Onuoha Philip and Master Stars who emerged winners from the regional finals in Aba, as the Hi-Life Fest train moves on to other designated eastern regions. Speaking after the event, Emmanuel Agu, portfolio manager, mainstream lager and stout brands, Nigerian Breweries, said, “HiLife fest is our way of paying homage to the cultural heritage of the Igbo people through highlife music”. On why this year’s edition was themed ‘The Complete Experience’, he said that the platform was enlarged with the inclusion of cultural dancers. “We understand the relevance of these classic tunes to the people here and

we delight in bringing a full package music festival to our esteemed consumers”, he added. Destiny Onochukwu, one of the quarter finalists from the singing category in Onitsha, out of excitement expressed himself saying, “I really cannot believe that I’m one of the winners from regional finals. I can testify to the fact that the competition was tight and the judges must have had a difficult task selecting me as one of the winners, but I thank God for making it possible. Now it is time to focus on the quarterfinals”. Also, Bright Chimezie, the Zigima king, expressed satisfaction on display of talent saying, “I am not so surprised by the level of talents that we’ve seen in the cities covered so far, especially Onitsha being the home of Osita Osadebe,

Oliver De Coque and many other highlife music icons. It shows highlife music culture is very much alive and is in safe hands”. With six successful selection parties concluded, fans can expect the complete experience in what is to come. The HiLifeFest 2018 has been to Aba, Port Harcourt, Asaba, Onitsha, Owerri, Nsukka and train rides on to produce another set of regional champions. HiLife fest is an initiative of Life Continental Lager Beer, the fine quality lager beer from the stables of Nigerian Breweries Plc., made from the choicest grains, hob extracts and the purest of waters. Life is expertly brewed to give that rich, crisp distinctive taste and well-rounded aroma in true quality fashion of the master brewer.

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BUSINESS DAY

Business Etiquette

Movie Review: Divorce Not Allowed

f you enjoyed the 2016 movie “couple of days,” then this movie might also be quite appealing to you. It is about three different couples going through a lot in their marriages and at the verge of a divorce. Although, we have being seeing a lot of movies about marriages and couples recently, this one had a unique story and a couple of lessons one could take home. This is a fantastic movie for singles and even those already in marriage, please take your time, when you need to make life changing decisions that would affect your lives and that of others around you. I liked the twist and the suspense towards the end, and for me I felt happier, that the end had a happy ending. Who likes it when couples divorce? This movie was produced by Mike Ezuruonye and I must confess that I was impressed, considering his first entry in 2016 with Bro Jekwu, which didn’t quite cut it for me. I would say that this is a quantum leap and in the right direction. I really didn’t understand the storyline of his first ever directed movie, so I was worried to go watch this again, but then he proved me wrong this time. We could see that he paid more attentions to details and provided the audience, with something more engaging, interactive and interesting. One could tell that they gave in more this time. The script was good, the locations chosen were nice, cast, costumes, crew and production were also on point. The movie started well with the 3 different couples telling us a brief history about their families and what made them unique, how they cope and why they couldn’t divorce their wives. It was like a narrative, where one person talks to the screen and then ask us some questions or our opinion like they really counted. For most of the scenes and questions, you could associate with them or even better still have a friend going through one of those problems or the other. So to Mike’s

with Janet Adetu

Climbing with Executive Manners Are you a professional? Are you a self -employed business person? hatever your line of business be it in the service or production industry, your attitude, behaviour and ways of communication determine whether a new acquaintance, colleague, client or customer will want to know you more, or even do business with you. The first impression you send out is the determining factor that will make or break you. It is what you leave in the minds of people you meet. The idea of mastering manners in today’s business world is fast becoming more and more essential. Corporate organisations have come to realize that your ability to develop and manage your soft skills (manners + etiquette) is now far more important than mastering your technical skills Becoming a leader of respect, repute and recognition involves learning the rules of the game. Though these protocol rules are unwritten, people expect you to know them whether no matter the situation. Executive manners will guide your business and social behaviour and set the necessary framework for building your moral IQ. .

Cast: Mike Ezuruonye, Angel Okorie, Bolanle Ninalowo, Greta Grabo, Iyabo Ojo Director: Mike Ezuruonye Producer: Mike Ezuruonye Casting 1hr 48mins Genre : Comedy & Drama Ratings: G family, he was married to a very religious and disciplined woman, who would not bend the rules or disobey God, she took it to the extreme, if you may ask me, she virtually prayed about anything and everything and was so quick to cast and bind, each time any little incidence occurred, she totally ignored the physical and sexual need of her husband, thereby leaving him with no choice but to cheat on her, with one young, hot and sexy young lady. He almost left her for this young girl, till he saw at the very end that it wasn’t all that glitters that were truly gold and he learnt his lesson. The second family was a young vibrant, famous actor who was popular at what he did, but had a wife he couldn’t display to anyone, despite all he did to make her leave and divorce him, she was determined to stay and make it work. He couldn’t understand the kind of patience she had towards him and why she was always willing to forgive him despite all that he did to her. The last couple had a man who was willing to sacrifice anything in the world to make the marriage work, despite his

selfish, bossy and arrogant wife, who wasn’t willing to make any sacrifices on her end. She neglected and disrespected her husband even in the presence of her staffs, this hurt him so badly that he wanted to file for a divorce. There was something different about each couple and how they fought their different battles and were able to come out victorious, they all understood that for you to succeed in marriage you had to make sacrifices and give up some certain things. They also had to learn patience considering the varying backgrounds they all came from and the issues in life that fashioned them into who they were now. It was a beautiful end as they all had to learn to study and understand each other.

To my verdict I score this movie a 7.5/10. It’s an 80% recommendation from me.

Feel free to review any movie of your choice in not more than 200 words, please send us a mail to linda@businessdayonline.com and stand a chance to win a free movie ticket. Linda Ochugbua @lindaochugbua

How do you show Executive Manners? Visualize entering a board room for a very important meeting with potentially high prospect clients. The meeting is an all day affair and will include lunch. How best do you show executive manners? In five easy steps your executive manners will be determined by: (i) Whether you present yourself positively (ii) Your ability to communicate with utmost care . (iii) Your strength in networking and building a rapport for better relationships. (iv) Your personal conduct and body language in the meeting. (v) How well you dine with confidence and ease. Strategic reasons for Executive Manners Executive manners are what

you learn on a daily basis and practice regularly to stay on top and outclass your competitors. They become a part of you and your daily demeanour. Ultimately executive manners will be your route to success in your professional and personal life. Because the lack of manners can cost millions in business, health, relationships and success it is essential we identify why we need executive manners. First Impression You only get one chance to make a good first impression; you must always put your best image forward. Good executive manners will create the most need-

ed first impression to get ahead start in business. If you consider how important your reputation is, you will guard it with all your life. A good reputation commands power, where a successful reputation is based on how well your executive manners propel you to the top. Ensure that in your appearance, clothes, gestures, words and actions portray the right first impression congruent with your goals and values in life. Feeling Good If your executive manners are on point you may experience a spring or a bounce in your step. What do I mean by this; generally your self esteem will be boosted because of that extra air of confidence. Good executive manners will enable you navigate any awkward situation and you will feel comfortable, at ease and command well deserved respect. Leader skills You can spot a leader from a mile away, there is always something extra ordinary about them, and they tend to have that exceptional attribute. Using your wide base

of soft skills to your advantage will exhibit leadership skills that make others want to know you better and benefit from your experience. Knowledge of executive manners will surely accelerate you to heights, greater than your imagination. . Interpersonal Rapport Developing your networking skills, ensures that you are able to work a room with confidence, comfort and ease. You would be able to engage in discussions of all manner and nature and nature without becoming wall paper (i.e tied to the corner of a room). If you are called upon at any point in time as an executive, to comment on

any particular thing, you will not be caught unaware. Executive manners will expose you to the tricks of small talk and public speaking. Respect Respect they say is earned comes to whom it is due. The moment you are able to show excellent skills in manners and etiquette you begin to command and show respect: Respect must be for yourself, others, corporate property and your environment. A perfect gentleman or elegant lady, never goes unnoticed. Carriage of you with grace and calm is the epitome of respect. Develop your executive manners today and see how much respect you are able to earn. Conclusion With executive manners you are an invaluable asset to your organisation. As an asset you will be able to lead and achieve successful results, the ultimate objective of every organisation. Take that bold step today Goodluck! Janet.adetu@gmail.com

BUSINESS DAY

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Sports

Friday 11 May 2018

W/Cup: Akinwumi confident Nigeria will defeat Argentina Stories by Anthony Nlebem

igeria Football Federation (NFF) 1st Vice President, Seyi Akinwumi, is confident the Super Eagles will defeat Argentina when the two teams clash again irrespective of the presence of play maker, Lionel Messi. Akinwumi disclosed this ahead of Super Eagles’ preparation for the forthcoming World Cup in Russia; he added that Nigeria has the players to repeat the feat when the two sides meet in June. “I learnt that some people are saying that Nigeria defeated Argentina in the pre-World Cup friendly in Russia because Lionel Messi, the Argies’ mercurial star

was not featured. “I want to assure you that with Messi or no Messi, Super Eagles will beat Ar-

Budweiser kicks off ‘Light Up The FIFA World Cup’ campaign … To celebrate the energy of 2018 Fifa World Cup

he Official Beer of the 2018 FIFA World Cup, Budweiser has launched its new global campaign “Light Up the FIFA World Cup.” A major highlight of the campaign features the largest beer delivery to date and a selection of integrated experiential, digital and social programs happening worldwide. “Light Up the FIFA World Cup” encapsulates the unparalleled euphoric energy of the world’s biggest sporting event and is Budweiser’s largest campaign to date, which includes a variety of fan programs running in almost 100 countries worldwide. The ad spotlights the jour-

ney of thousands of drones as they carry Budweiser from the St. Louis brewery through Lagos and head for Moscow with the ultimate goal of delivering a stadium full of fans with Budweiser Beer. A hero drone, Bud 1876, is seen overcoming a dramatic journey around the world, full of obstacles, culminating with an arrival to Luzhniki Stadium in Moscow to deliver a Budweiser to the lone beerless fan in the stadium. @budweiserng #lightuptheworldcup Find link to the captivating TVC below: Light Up Your World Budweiser

gentina again,” he affirmed. The Super Eagles players came back from two goals down in the first half to beat

an Argentine team 4-2 on November 14th, 2017 in a pre-World Cup friendly. Akinwumi, who is bank-

ing on the crop of young talents and a technically sound coach in Garnet Rohr, said Nigeria is battle ready to confront the world in Russia. “Most of our players like Victor Moses, Alex Iwobi, Odion Ighalo and Brian Idowu are doing well in their respective club sides abroad. “ Again, I learnt that the injuries of Mikel Obi and Wilifred Ndidi are not too serious as they have started playing again. “Also, with the Eagles’ superlative performance in the friendlies, beating Argentina and Poland 4-2 and 2-1 respectively, Nigeria is rearing to go,” he said. Akinwumi also confirmed Port Harcourt as the venue for the NigeriaCongo DR clash on May 22, gave an assurance that the team would get better when

the players move into full camping. “Full preparation for the World Cup will commence when the players move into camp against Congo DR. “ After the remaining two friendlies against Congo DR on May 22 and England on June 2, a good team would have evolved,” he added. He assured the Super Eagles players of a good welfare package, efficient transportation, funding, feeding and adequate medicals during the final camping in Austria, the NFF top official said that the team would be in good stead in Russia. The Supers Eagles are drawn in the same group with Croatia, Iceland and Argentina in the first round of their Russia World Cup campaign.

Eto’o, Ohen top the list of African LaLiga goal-scorers

any African players have made outstanding contributions to LaLiga over the years, with links between Spanish football and the entire continent growing stronger day by day. Ex-Barcelona and Cameroon legend Samuel Eto’o tops the list of all-time African scorers in LaLiga. Former Sevilla and Mali striker Frederic Kanoute, now an official LaLiga ambassador, is in second spot with 1990s SD Compostela and Nigerian forward Christopher Ohen third. 23 players of 22 different African nationalities have found the net in LaLiga through the years. The first was pioneer Alhaji Momodo Njie – known as Biri Biri – at Sevilla in the 1970s. The connection between the continent and LaLiga looks set to long continue, with young Kenyan international Michael Olunga the latest African to open his goal scoring account with Girona during the 2017/18 season. Top 10 African LaLiga goal-scorers 162 – Samuel Eto’o – Cameroon (Real Madrid, Real Mallorca, Barcelona) The top African footballer of all time in LaLiga is of course Samuel Eto’o, who scored 162 goals (108 in 144 appearances for Barcelona and 54 in 128 appearances for Real Mallorca) in the competition. The former Cameroon international, who started his career in Real Madrid’s youth system, won three LaLiga titles during his time at the Camp Nou

[04/05, 05/06 and 08/09], as well as the top scorer award in the 05/06 season with 26 goals. 89 – Frederic Kanoute – Mali (Sevilla) Frederic Kanoute became a hero at the Sanchez Pizjuan during his seven seasons as a Sevilla player, during which time he scored 89 times in 209 LaLiga appearances. The ex-Mali international’s best season was 2006/07 when he found the net 21 times in 32 games in the competition as Sevilla challenged all season for the LaLiga title before eventually finishing third. 48 – Christopher Ohen – Nigeria (SD Compostela) Christopher Ohen came through the youth ranks at Real Madrid, playing for their Castilla youth team before joining second tier side SD Compostela in 1991. An immediate hit with the Galicians, he helped them to promotion three years later before hitting 48 goals in 117 games during four seasons in the top flight. To this day he remains Compostela’s record goal-scorer in LaLiga. 43 – Youssef El Arabi – Morocco (Granada) Youssef El Arabi joined newly promoted Granada from Saudi side Al-Hilal in the summer of 2012 and quickly settled in as a key member of the team, spending four seasons in LaLiga. The Morocco international’s 43 goals in 130 games included hat-tricks against Malaga and Levante and a fine strike against Real Madrid in his final season at the club. 34 – Valdo – Cape Verde (Real Madrid, Osasuna, Espanyol, Malaga, Levante,

Racing Club) Valmiro Lopes Rocha – known as Valdo – is another ex-Real Madrid youth teamer who scored 19 times in five seasons at Osasuna from 2002 to 2007. The twice capped Cape Verde international also represented Espanyol, Malaga, Levante and Racing Club as an attacking midfielder. Now aged 37, he is still turning out for Peña Sport in Spain’s third tier. 33 – Rodolfo Bodipo – Equatorial Guinea (Racing Santander, Alaves, Deportivo La Coruna) Seville-born Rodolfo Bodipo forged a long and successful career as a centre-forward for six different Spanish sides. The Equatorial Guinea international starred in particular at Racing Santander with 16 goals across the 2002/03 and 2003/04 seasons, while his famous header for Deportivo La Coruna in a 1-1 at the Camp Nou in 2009 is also well remembered. 31 – Cedric Bakambu – DR Congo (Villarreal) Cedric Bakambu was a firm favourite with Villarreal’s fans during his two and a half seasons at the club during which time he scored 31 times in 75 LaLiga appearances. A hat-trick against Eibar in October 2017 saw the pacy international centreforward become the first African winner of the LaLiga Player of the Month award. 24 – Manucho Gonçalves – Angola (Real Valladolid and Rayo Vallecano) Powerful centre-forward Manucho landed in LaLiga

after joining Real Valladolid from Manchester United in 2008 and is most remembered for his brace against Real Madrid in December 2012. In the summer of 2014 he joined Rayo Vallecano, where he is currently a LaLiga 1l2l3 cult hero at the age of 35. 24 – Mohammed Tchite – Burundi (Racing Club) Mo h a m m e d Tc h i t e racked up three excellent

LaLiga campaigns with Racing Club, scoring 11 goals in his final season of 2009/10. A double strike from the Burundi international against neighbors Sporting Gijon on the final day of the 2009/10, which saved his side from relegation, will live long in the memory of football fans in Santander. 22 – Sofiane Feghouli – Algeria (Almeria, Valencia) After an initial year on loan at Almeria, Sofiane Feghouli became a key member of the Valencia team during four seasons in the first team at Mestalla. The attacking midfielder’s best campaign was 2013/14, when his performances brought him the official award as the top African player in LaLiga.

Friday 11 May 2018

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BUSINESS DAY

BUSINESS SOUTH-SOUTH

COMPLETE COVERAGE OF SOUTH-SOUTH / SOUTH-EAST

Power hiccups hampers Champion Breweries production TCN inaugurates 60MVA transformer to

…we spend N1bn on generators annually – says MD

boost electricity supply in Akwa Ibom

ANIEFIOK UDONQUAK, Uyo

hampion Breweries in Uyo, Akwa Ibom State has identified epileptic power supply as one of the major hurdles affecting its production, as well as the entire manufacturing sector in the country. The company, which produces brands like Champ Malt, Champion lager Beer and Amstel Malt, decried that the non-availability of electricity has raised its cost of production, and eaten up its profit margin, as it spends about N1 billion annually in buying fuel to power its generators. Patrick Ejidoh, the managing director, who stated this in an interview with BusinessDay, also decried what he described as “the negative impact of multiple taxation on businesses in the country,” as well as the spiraling inflation in the country. He said though they have made efforts to link the plant to public power supply, it did not work out due to recurring interruptions; adding that it would also amount to incur-

ring huge costs to depend only on public power supply. “When the production is on, and suddenly public power supply is interrupted, it would affect the production line. Some machines may develop faults due to abrupt power outage,” Ejidoh said. The Champion Breweries managing director also lamented the inflationary trend in the country,

which he said has affected the cost importation of raw materials for production of goods. He attributed the high cost of doing business as frustrating; stressing that the government tax system does not give room for business growth. “Sometimes our trucks have to ply the roads at nights to avoid double taxation, which is very risky,” he lamented.

Community cries to Wike over bad roads in Azuabie

…don’t be selective – Okujagu urges governor BEN EGUZOZIE, Port Harcourt

zuabie, a seedy densely populated community in Port Harcourt City Local Government Area (PHALGA) is ironically bereft of development, despite being within the sprawling oil hub. The community is only minutes away from the Trans Amadi industrial layout, a high octane oil industrial estate, but it is hardly accessible. The link roads, as well as its internal roads network have hardly seen any attention from the Rivers State government in more than 30 years. For eight years, the Chibuike Amaechi administration never stepped into Azuabie, let alone awarding any road contract in the area. Sadly, since three years since Governor Nyesom Wike assumed office, he has yet to include the community on the list of ongoing road construction and rehabilitation projects in parts of the state. In a direct reaction to the unfortunate situation, Belema Basgshaw Okujagu, a human rights lawyer and

a prominent son of the area, alleged in an interview that “Azuabie roads have been abandoned since 1967 when Rivers State was created.” “It is regrettable that Governor Wike, who has been popularly addressed as ‘Mr. Projects,’ is yet to come to address the abandoned roads in and around Okujagu–Azuabie community,” Okujagu said. He described his community as “a stone’s throw from Rivers State Government House, within the Port Harcourt City LGA, but it is sadly mired in dreadful roads. He observed that since the rains are setting in, awarding the contract for the construction and rehabilitation of the roads has become very imperative. “In the last 2015 general elections, Azuabie community voted for Wike and the PDP massively. Therefore, I urge the governor to expedite action to award the construction of Azuabie internal roads, ahead of the 2019 general elections.” Okujagu said he had written several letters to Governor Wike,

and published same in several newspapers, yet the governor has been surprisingly adamant, and has refused to step in and address the deplorable road conditions in Azuabie community. The human rights lawyer said he recalled recently, when the governor went to flag-off the construction of roads in Ward 20 in PHALGA, but Azuabie community was deliberately omitted in the list of benefiting communities. He added that Azuabie is part of Ward 20, and wondered what sin the community had committed to be neglected by Rivers State government, including the administration of Governor Wike. He opined that improving on the road networks in the area will add value to schools within the area, and help protect school children from regularly falling into dirty gutters. However, Okujagu said he appreciated the jobs undertaken by Governor Wike in the State, but added that touching his own community, Azuabie, will improve life and wellness of his people.

Ekweremadu calls for youths to be involved in leadership REGIS ANUKWUOJI, Enugu

eputy Senate President, Ike Ekweremadu has called on Nigerian youths to take over the leadership of this country now and deliver the country from the continuous rotation old men whose ideas were no longer in line with modern technology of leadership. E kw e re m a d u s t a t e d t h i s w h i l e a d d re s s i n g Ni g e r i a n youths in Enugu at the 7th annual Enugu Youth Summit with the theme “Promoting Youth Participation in Governance and National Development.” He pointed out that “future is no more for the youths, but today;” and urged the youths to strive harder for leadership positions.

The Deputy Senate President, who came into the venue of the function at the Nnamdi Azikiwe Stadium, Enugu, in a black T-shirt and jean trousers, said he was dressed in that because the country was in a mourning mood; referring to the dozens of people killed in Benue, Taraba, Zamfara and other states in the North East Central zone. He cited the continuous killings of innocent Nigerians in different parts of the country, and the kind of humiliations and treatments given to Dino Maleye, a Senator from Kogi State, in a so-called democratic government. He said that it is only God that determines one’s fate. He said that the three key things that make and justify a

leader are: fair play, equity and justice; and advised Nigerian youths aspiring for leadership positions to be mindful of the key words. Ac c o rd i n g t o t h e f o r m e r speaker of the ECOWAS Parliament, the Senate will reduce the age limit of Nigerian for the post of president from 40 to 35, and other positions from state governors to local government chairmen to accommodate the youths; and promised to support the youths in practical terms. At the occasion, six persons including the speaker of Enugu House of Assembly, Edward Ubosi, Nollywood actor, Chinwetalu Agu, were given Performer’s Awards, while 50 most influential young people in Enugu State were recognized.

he Transmission Company of Nigeria (TCN) has inaugurated a new 60MVA, 133/33KV power transformer in Uyo, the Akwa Ibom State capital, as part of efforts by the Federal Government to improve electricity supply across the country. While commissioning the project, TCN noted that it is implementing the transmission rehabilitation and expansion programme to fast track the implementation of transmission projects nationwide; adding that it would provide necessary flexibility and expand its wheeling capacity. Managing director and chief executive officer of TCN, Usman Gur Muhammed explained that the capacity of the substation, prior to the installation was 120MVA; adding that with the commissioning of the 60MVA, it has now increased the capacity of the substation to 180MVA. According to him, with the commissioning of the transformer, some local government areas including Oron, Uyo, Mbo, Ikot Ekpene, Abak, Essien Udim, Onna, and areas around the airport axis and their environs will experience remarkable improvement in their power supplies. Represented by Victor Adewumi,

head of transmission, he said TCN is collaborating with Akwa Ibom Government to install two 60MVA substations at Ekim in Mkpat Enin LGA based on Governor Udom Emmanuel’s efforts to improve the economic development and social wellbeing of the people. He said on completion of the Ekim substation project, the station will provide electricity to Ikot Abasi, Mkpat Enin, Onna, Oruk Anam, Eastern Obolo LGAs, where such institutions including, Akwa Ibom State University (AKSU), Metering factory, Syringe factory, Coconut refinery, among others, are located. He called for significant investments in the distribution network as inadequacies in that area will limit the amount of power delivered to end users. The TCN boss advised developers against building structures under transmission right of way; saying that catastrophe is better imagined should a high voltage power conductor snaps. He advised the Port Harcourt Electricity Distribution Company (PHED) to fully take advantage of the additional capacity of the transformer inaugurated by radiating more 33KVA feeders out of the station to service their consumers.

Ayade commences rural feeder roads rehabilitation in Cross River communities MIKE ABANG, Calabar

wing to poor dilapidated roads in rural communities across Cross River State, Governor Ben Ayade has commenced massive rehabilitation of rural roads. The roads, which naturally serve as feeder roads to the urban areas, have been in deplorable states. Many are saying that the rehabilitation was welcome, as accessing most communities, especially during the rainy season had been a nightmare. Some of the feeder roads are in Yala Local Government Area, beginning from Yahe/Gabu flank through direct labour intervention, spearheaded by Steve Odey, who doubles as the executive chairman, State Universal Basic Education and acting managing director, State Water Board. respectively. During the groundbreaking ceremony of the rehabilitation of rural feeder road network at Uchu Yache last weekend, the directorgeneral of Urban Renewal, and the road project supervisor, Uko Inaku, said the age long suffering of the people of the area will soon be history, as Governor Ayade has ordered immediate intervention on the rehabilitation of rural roads to save rural dwellers from their long sufferings. “We know how long our people have suffered from neglect. But the case is now different under Governor Ayade. As you can see, we have commenced work in earnest beginning with bulldozing of the

roads, after which we will get to grading and tarring,” Inaku stated. He said the project, which will start from the Benue/Cross River boundary along the Lord Lugard forest area, will extend to Gabu community. He maintained that, in order to make a difference from the past remedial measures, the Ayade administration intends to asphalt the roads to make them more durable, all-season roads. Uko Inaku said on his part, he will do everything possible within his abilities to ensure effective supervision of the road networks up to Gabu community. Odey, the SUBEB chairman, who now doubles as Cross River Water Board (CRWB) acting chairman, noted that he felt fulfilled because all his dream to improve on the wellbeing of his people was being accomplished, courtesy of Governor Ayade. Speaking on behalf of Gabu, a neighbouring community to Yahe, Mathias Oko, former secretary of Yala LGA, commended the governor for a prompt intervention on the road project, as well as quick release of funds towards the project. He also appreciated Odey for his resilience in standing by the governor at all times, to deserve the needed attention. In his remarks on behalf of the traditional rulers’ council of Yache and Gabu communities, Godwin Abru, the Clan head of Aji-Endichwi Clan, said the areas have never had good roads; hoping that the project would completed.

BUSINESS DAY

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Friday 11 May 2018

BUSINESS DAY Online

Highlight of the news reports on our digital platforms this week

Best five stories this week still in their farms, a group of ‘bandits’ rode into town on motorcycles and went on a killing spree.

Iran’s deal: MTN may lose $237 million

2018 budget is the most delayed in 19 years The proposed 2018 budget which Nigerians thought would take a paradigm shift from the traditional practice of delay in passage, has failed expectations as the budget sets a record of the most delayed in 19 years, BusinessDay calculation shows.

Views from Dubai-Trusted News platform still sell

Yakubu Dogara, Speaker of the House of Representatives has stressed the need for Economic and Financial Crimes Commission (EFCC) on the need to demonstrate courage in the prosecution of corruption cases in the country.

Last week in Dubai, editors from across Africa gathered to discuss the changing media landscape. In many newsrooms this has become the major issue as publishers struggle with finding the best business model.

When killers kill without consequence, they kill more At 2.30 pm on Saturday, May 5, in Gwaska village in Birnin Gwari Local Government Area, when most men were

Poll of the week MTN Group, South African telecoms giant, says United States President Donald Trump’s decision to pull out of the nuclear accord with Iran may make it difficult to repatriate $237 million of its fund in the country, which it has being operating in since 20o5.

Dogara tasks EFCC on prosecution of corruption cases, law enforcement

Tweet of the week

Cartoon of the week

POLL RESULTS: The poll results are out concerning whether Lagos is cleaner today than it was two years ago. The people on social media say that Lagos is actually dirtier. 92% say that Lagos is dirtier while 8% say that Lagos is cleaner. What do you say? Write us at digital@businessdayonline. com in agreement or in dissent.

Video of the week

Friday 11 May 2018

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BUSINESS DAY

CITN 20th Annual Tax Conference Live coverage of the 20th Annual Tax Conference of The Chartered Institute of Taxation of Nigeria

Osinbajo insists FG, States must bring more Nigerians into tax net Stories By HARRISON EDEH, Abuja

ice President Yemi Osinbajo on Wednesday said that without the monthly allocation from the Federation Accounts Allocation Committee, it would be difficult for most states of the federation to survive. Osinbajo said this while declaring open the 20th annual tax conference of the Chartered Institute of Taxation of Nigeria. The conference which is the single largest gathering of tax practitioners in the country has as its theme, “Institutionalising tax paying culture in a developing economy.” The event was attended by the Executive Chairman of the Federal Inland Revenue Service, Babatunde Fowler, the President of the CITN, Cyril Ikemefuna and other top officials of government. Osinbajo said prior to the discovery of oil, many regions in the country generated adequate revenue through taxes from agricultural produce to the extent that they still contributed money to run the central government. Osinbajo lamented the low tax paying culture of Nigerians, adding that at six per cent, Nigeria has one of the lowest tax to Gross Domestic Product ratio in the world. He said as at May 2017, only 14 million out of the country’s 70 milkion Nigerians who are economically active paid taxes to the government. He said through deliberate strategies to ensure voluntary tax compliance, the Federal Inland Revenue Service had been able to increase the number of tax payers from 14 million in May last year to 19 million. He said out of the total tax pay-

Osinbajo

ers in the country, only 943 of them paid self assessment taxes of N10m and above. Giving further breakdown of the 943 tax payers who paid N10m and above, the VP said 941 of them reside in Lagos while the remaining two are residents of Ogun state. He said, “Today the states in the whole Western region apart from Lagos do not even earn enough in taxes to pay salaries let alone do any major project. “Without federal allocation, most states cannot survive. Lagos state alone takes as much IGR as 31 states combined. This tells you how little the other states generate in IGR.” He said when people pay their taxes, they tend to hold government more accountable on how the country’s resources are being managed. He said the reason why mismanagement of funds thrived in the past

was because oil monies were readily available thus reducing the necessity for people to pay taxes. He said the current administration has put in place measures to check the mismanagement of government resources. For instance, he said through the implementation of Treasury Single Account, about N4bn monthly bank charges is being saved by the government. In addition, he said the audit of government payroll through the Presidential Initiative on Continuous Audit had saved the government over N200bn personal costs. This N200bn, according him would have been paid to ghost workers if government had not cleaned it’s payroll. “When people pay taxes, they are more inclined to hold government accountable and they tend to be less passive in governance,” he added. In his speech at the event, the CITN President said that the conference was vital in view of the efforts of government to shore up tax revenue. He said during the conference, tax practitioners would review the implementation of the Economic Recovery and Growth Plan, the Voluntary Assets and Income Declaration Scheme, transfer pricing, arbitrary tax incentives as a disincentive in a tax system among others. He said, “The heartbeat of any economy is its deft use of taxation for promoting economic growth and development. “Through taxation, government ensures that resources are channeled towards important and critical activities in the society. “Thus the imposition of taxes is essential to economic and social development in any given economy.”

Tax expert decries Arbitrary incentives ... says it is a disincentive to Nation building

emitope Samagbeyi, Partner, Business Tax services Ernst& Young Nigeria said poorly designed incentives can result in giving money away without positively impacting investment,even as he said it is a disincentive to Nation building. Ta x i n c e n t i v e s a r e deductions,exclusions or exemptions from a tax liability offered as an enticement to engage in a specified activity(such as investment) for a certain period. Samagbeyi,who spoke at the on going Chartered Institute of Taxation of Nigeria (CITN) 20th annual tax conference. He spoke on Tuesday on the topic: “Arbitrary Tax incentive as a Disincentive to Nation Building” that the benefits of tax incentives are widely exaggerated while the costs are often understated. The Tax expert pointed out however that there are positive as well as negative effects of incentives in Nigeria. Clar ifying fur ther on the negative effects of incentives in Nigeria,the Tax expert said,”Poorly designed incentives can result in giving money away without positively impacting investments and operating decisions. He also cautioned that incentives can be captured by politically connected firms and used as a means of diverting public funds into political finance,while also encouraging perverse results such as stretching out investment over time time to extend tax holiday. He listed Arbitrary Tax Incentives’ Loopholes to include:”Round-Tripping,which occurs where tax incentives are restricted to foreign investors or to investments with a prescribed

minimum percentage of foreign ownership. The Tax experts also listed Asset stripping and “Fly-byNight”Operations as one one of the arbitrary Tax incentives Loopholes noting that many countries have experienced problems with “fly-by-night” operators that take advantage of tax incentives to make a quick tax-free profit and disappear to begin operations in another country that offers tax priviledges. The Tax expert pointed out that the benefits of Tax incentives are widely exaggerated while the costs are often understated or overlooked altogether,while adding that,”Investment tax incentives may work well in some contexts,but they work poorly in many others,decisions taken about these incentives should be with caution.” He adds that,”Corruption can constitute a major barrier to foreign investments. The granting of tax incentives,where the process involves a high degree of discretion will lead to a strong risk of corruption.” Also speaking at the event,Kennedy Iwundu Chinyere,as associate memner of the Association of Forensic and investigative auditors said the government at all levels must demostrate a high level of transparency in Tax matters to gain confidence of the people. “It will not be out of place for the state and local government authorities to promote transparency by stating the roads and infrastructural developments embarked upon through tax payers money,since tax is not always as palatable and appealing to tax payers”he said.

FIRS faults non-professional handling of tax filing ...says agency to work with CITN to harvest more people into tax net, improve professionalism

he Federal Inland Revenue Service (FIRS) has decried filling of tax returns by ‘Businessmen’ who parade themselves as Tax consultants, saying that henceforth the agency would relate only with Chartered Instituted of Taxation of Nigeria (CITN) or other recognised professionals in handling such professional transactions. Babatunde Fowler, Executive Chairman of the FIRS disclosed this at the on going Chartered Institute of Taxation of Nigeria 20th annual tax conference. He delivered a paper titled:”Institutionalising a Tax Paying Culture in a Developing Economy”‎ and said effective January 2019, the FIRS will not accept any tax returns prepared by non

professionals other than from CITN or other recognised professionals. According to the FIRS helmsman,working with the professionals from CITN would ensure more efficiency in handling tax related transactions in the country,while shoring up revenue for the nation,anf properly engaging professionals in their chosen endeavour. “We must be engaging professionals and members of CITN to improve our revenue targets and give a professional outlook to what we have been doing to improve taxation in Nigeria.We are currently leveraging on Technology to ensure proper tracking and expanding of our Tax returnsy”Fowler said.

Fowler also informed the agency has been leveraging on technology to facilitate easier filling of returns in its operations,noting further that the agency is concerned that “On e-services,we have perfected the ability to upload returns and assesment notices together with assesment calculations to the tune of 97% completion nationwide,and they include: e-registration,e- filling,etaxation,e-stamp duty,e-WHT credit notes,e-reciepts,e-TCC” Fowler argued further in his presentation that,”The extent to which an economy is able to grow sustainably depends largely on its ability to generate tax revenue to finance it’s expenditure and the

efficiency of its tax system. It would be noted that the Association of Charted Certified Accounts global suggests that the IMF recommended minimum threshold of Tax to GDP ratio of 15%. As confirmed by the federal Ministry of Finance(FMF),Nigeria falls far below this threshold and is low compared to other countries. As a result of this development,Fowler said the federal government is doing all possible to improve its projects and development through improved taxation. “A look at the World’s most development economies and societies dhows that there is clearly a relationship between tax and

development as these are countries with established tay system where Public infrastructure,institutions and systems can be sustainably developed and maintained from tax revenue.”he said. Ac c o rd i n g t o t h e Int e r na tional Monetary Fund,IMF ,the typical developing economy collects just 15percent of GDP in taxes,compared with 40percent collected by a typical advanced economy. On the heels of this development,Fowler said working closely with the CITN professional would assist Nigeria reach the target set by the IMF and have more resources for development projects across the country.

BUSINESS DAY

Friday 11 May 2018

CITN 20th Annual Tax Conference

L-R: Adebimpe Balogun, past president, CITN; Idowu Atashili, guest, and Titus Ayewumi, past president, CITN.

L-R: Gladys Simplice, vice president; Cyril Ede, president, and Adefisayo Awogbade. Registrar/ choef executive, all of CITN.

L-R: Adesina Adedayo, deputy vice president, CITN; Aminu Mikailu, and Aliyu Muhammad Gwaram, former council member, CITN.

Gabriel Fasoto, (l), with Kamoru Adigun, both are past president, CITN.

Sunday Jegede, (l),withRasaq Quadri, both are past president, CITN.

L-R: Kwame Boasiako Omame-Antwi, council member, Chartered Institute of Taxation, Ghana; Kwame Owusu,deputy commissioner, administration, Ghana Revenue Authority.

Samuel Agbeluyi, honourary treasurer, CITN, (l), with Makinde ASK, council member, CITN.

L-R: Mike Kofi Afflu, past president, CITG; Adefisayo Awogbade, registrar/chief executive, CITN, and Godwin Oyedokun, council member, CITN.

Friday 11 May 2018

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BUSINESS DAY

CITN 20th Annual Tax Conference

L-R: Jumoke Aderemi; Odeneye Kehinde, and Yejide Wyse.

Sani Dambo, executive chairman, Kano State Internal Revenue Services,(l), with Emmanuel Kofi Nti, commissioner general, Ghana Revenue Authority.

Bratuma Guire, president, Tax Institute Burkina Faso, (l), with NiiAyi Aryeetey, president, CITG.

David Alaribe, council member, CITN, (l), with Taorid Ramon, chairman, finance sub-committee.

Wole Obayomi, partner and head, tax regulatory and people services, KPMG, (l), and Abiola Sanni, professor of commercial law specialty in tax law, University of Lagos.

Francis Essel-Okyeahene, vice president, CITG, (l), with Fred Tetteh, registrar, CITG.

Elizabeth Adebanjo of CITN, (l), with Gbolahan Bilewu, deputy director, membership and professional conduct, CITN.

Cross section of the participants at the conference Pictures by Olawale Amoo

BUSINESS DAY

Friday 11 May 2018

CITN 20th Annual Tax Conference

HOW TO BE AN EFFECTIVE TAX ADMINISTRATOR BY OSENI ELAMAH, mni, Executive Secretary, Joint Tax Board Paper presented at the 20th Annual Tax Conference of the Chartered Institute of Taxation of Nigeria (CITN) Wednesday 9th May, 2018 Protocols Introduction Delivering this paper during this Stakeholders Forum of this CITN 20th annual tax conference is indeed a privilege for me because it tells me that in our own little way, we have created a positive impact on the Nigerian Tax system that peers can learn from. This forum will avail us the opportunity to exchange ideas and share experiences as tax administrators so that we can apply knowledge gained to strengthen the efficiency of tax administration in our various tax jurisdictions. In all modesty, my experience as a tax administrator has been quite unique as I have indeed been privileged to have traversed all spheres within the unique context of the tax environment in Nigeria which is tiered into three jurisdictions. My discourse here today are an accumulation of knowledge acquired from my stint as the Executive Chairman, Edo State Internal Revenue Service which also made me the Chairman of the State Joint Revenue Committee, a Committee statutorily charged with supervising all tax/revenue matters in the State (including the Local Governments), and my current sojourn as the Executive Secretary, Joint Tax Board (JTB), and I hope to share some of the knowledge gained as we make progress. The Tax Administrator As we all know, a Tax Administrator is one who performs the coordination of tax activities under the guidance of a specific law or laws within a particular jurisdiction. A Tax administrator is anyone that is involved in the administration of tax which includes everything from identifying the potential taxpayer, profiling the taxpayer, raising of assessment, collection, enforcement, arrears management and litigation (i.e. appeals and dispute resolution). Tax Accounting, Audit and Investigation as well as revenue reporting are also a part of this process. In a much broader sense, the management of the process which entails supervising the conduct of tax officials, the execution and application of the relevant tax laws or related statutes and tax conventions are also an integral part of tax administration. The main responsibility of Revenue Authorities and Tax Administrators is to ensure compliance with tax laws. Their efficiency and effectiveness is dependent on a variety of both external and internal factors. Some of the external factors include the political will of the governing authority, the state of the economy, degree of public support for the priorities of the government, the awareness and willingness of taxpayers to comply with tax laws, among others. The internal factors may include the level of professionalism of the tax administrator, the quality of manpower of the revenue authority (which may range from operational capacity to personal integrity) and the ability to deploy automated processes in achieving set goals and objectives especially in a 21st century world that is driven by technology. Fundamentals of Effectiveness In an ever-changing environment, the tax administrator must have a clear focus and direction on what their goals are and continually review their operational approach and procedures to ensure they are making the most effective and efficient use of the resources available to them. Adam Smith, in his classic publication “The Wealth of Nations” identified four canons of Taxation which are: Equality; Certainty; Convenience; Economy While the practice of taxation may have evolved into a more complex concept than that which obtained in the 18th Century when the treatise was first published, it is imperative that an effective tax administrator imbibe these four canons as they form the bedrock on which contemporary requirements have been built on. In the light of the foregoing, an effective tax administrator should be seen to be promoting the above listed canons which are explained as follows: Equality: He must ensure that every person should pay to the Government according to his ability to pay, which should be proportionate to the income or revenue enjoyed under the protection of the State. Certainty: He must ensure that the tax to be paid by any individual is certain and not arbitrary. He must ensure that the time of payment, the manner of payment, and the amount to be paid are clear and unambiguous to the contributor and to every other stakeholder within the tax environment. Convenience: He must ensure that the amount, time and manner of payment of a tax should be certain and convenient to the contributor within the provisions of extant Laws. Economy: He must ensure that the cost of collection is commensurate with the tax collected and that such cost should be at the most minimal. It makes little economic sense when the cost of collection becomes too unwieldy in relation to total revenue collected The very objective of tax administration is to elicit not just compliance but voluntary compliance under a tax friendly environment. While the above four canons may provide the basis for effectiveness in the administration of tax, the prevailing policy within the tax jurisdiction may impact on compliance levels within the environment. According to Richard Bird (World Bank, 2010) “the best tax policy in the world is worth little if it cannot be implemented effectively”. Voluntary compliance is promoted not only by an awareness of rights and expectations of a fair and efficient treatment, but also by clear, simple and “inclusive” administrative systems and procedures. Voluntary compliance is enhanced when it is easier for taxpayers to do so. When compliance is not achieved on a voluntary basis, the tax administrator and to a larger degree, revenue authorities must identify and address the risks associated with non-compliance by developing strategies targeted at those risks. Voluntary compliance is optimised when tax administrators are aware of major developments and trends in the social, economic and legislative environment, and are responsive to their implications on tax administration and compliance. This brings us to the issue of what to expect of an effective tax administrator under the contemporary dispensation. Achieving Effectiveness In an attempt to address the issue of what to expect of an effective tax administrator under the contemporary dispensation, we have identified a number of factors that promotes effectiveness of the tax administrator towards ensuring effectiveness in dispensing their mandate. These are listed as follows: Adequacy: This implies that the tax administrator must ensure that taxes provide enough revenue to meet the basic needs of society. An efficient tax system meets the test of adequacy if it provides enough revenue to meet the demand for executing public works and enhances the ability of the government in providing services to the people. Simplicity: This applies to policy design and implementation as well as administrative efficiency. It entails that the contemporary tax administrator should strive towards ensuring that taxpayers are not encumbered with a labyrinth of taxes. A simpler tax system helps taxpayers understand the system better, it also reduces the cost of compliance. Transparency: This simply implies that the tax administrator must ensure that taxpayers and all stakeholders can easily source for and find information about the tax system and how tax money is utilised. Inclusiveness: The tax administrator must ensure that there are effective mechanisms for engagement with every stakeholder in the administration of tax. Engagement requires co-design of policies, consultation among a wide spectrum of stakeholders as well as responsiveness to the dynamics of the environment. Education, enlightenment, and sensitization: There must be a deliberate effort by the tax administrator to educate the public on development in tax and taxation related issues. This exercise which must be continuous must be able to adequately enlighten and sensitize not only the taxpaying population, but the entire society. Technology: The use of technology has become a necessity if the contemporary tax administrator is to achieve effectiveness in carrying out their responsibilities. While technology is increasingly being applied to the entire process of tax administration as enumerated earlier, it has become imperative for modern revenue authorities to maximize the inherent potentials in the tax environment by adopting technology especially in the automation of tax administration processes and procedures. Global Trends: Another factor which will aid the tax administrator in becoming more effective is for

him to be mindful of emerging trends in the global tax environment. The world has become a global village and national boundaries are increasingly becoming less of barriers in the face of international financial flows and fiscal mobility. This has raised a number of morality issues as complex tax planning measures and schemes are being devised by High Net Worth individuals and Multinationals for the sole purpose of evading tax. This trend has introduced a new dimension to taxation and as such, an effective tax administrator must have firsthand knowledge and understanding of emerging global tax trends and developments. The Edo Experience Upon my assumption of office as the Executive Chairman of Edo State Internal Revenue Service, the environment of taxation in the State was recovering from years of neglect and gross abuse. The impetus for a positive turnaround was laid by the government of the day which exhibited the right political will and sought about laying the foundation for needed reforms to occur. These reforms which were hinged on fundamental restructuring of the institutional framework of the entire Internally Generated Revenue (IGR) process led to the passage of the Edo State Revenue Administration Law and the subsequent attainment of administrative and financial autonomy for the Revenue Service. The process of reforms saw a reorganization of the governance structure of the Service, the strengthening of the Legal Department to drive enforcement, the development and consolidation of internal capacity in the Tax Audit Department, the strengthening of the Tax operations process by re-engineering the process from that hitherto driven by a tax-type approach into a functional approach via the segmentation of taxpayers into Large, Medium and Small Taxpayers as well as the introduction of a new Human Resource Management Department in line with international best practices to cater for the human assets of the Revenue Service. We also introduced innovative measures geared at enhancing dispute resolution. The ‘Tax Assessment Review Committee (TARC)’ which is a statutory Committee charged with the responsibility of addressing objections and complains from taxpayers promptly and fairly, was introduced as a provision in the Edo State Revenue Administration Law. This Committee which is chaired by the Head of the State Economic Team also had professionals drawn from outside the Revenue Authority as members. TARC provides the taxpayers with an alternative objection option to assessments raised. The fair and equitable manner the Committee addressed issues increased the level of taxpayer confidence in the Edo State Tax Administration process which led to a drop in the number of cases that ended in litigation. This was a landmark achievement as Edo State was the only State in the Federation at the time with such an arrangement. With the same mindset that the taxpayer is king, there was a deliberate focus on enhancing Taxpayers Services. We ensured that the Revenue Service had and maintained a regularly updated web presence via the launch of a dedicated website, as well as presence on other social media platforms. We introduced a Customer Service desk where enquiries from the public are responded to. We also engaged the taxpaying public directly via a number of public stakeholders forum which were held on a regular basis. We also sought to educate the public on issues of tax and taxation in a strategic way, and this informed the creation of a full Media and Corporate Affairs Unit equipped with state of the art media equipment which facilitated a number of tax education, enlightenment and sensitization programmes that cut across all spheres of media platforms, electronic, print, social etc. One of the most critical success factors if not the most crucial was the development of internal capacity through training and retraining. While the number of personnel was quite short of the ideal post reform manpower requirement, we ensured that the quality of personnel that remained with the Revenue Service were the cream of the crop and encouraged their professional aspirations by sponsoring staff to Conferences, Training Programmes and qualifying exams as members of CITN. We also commenced the process of automating the revenue administration processes and procedures via an Integrated Tax Administration System (ITAS) and it is gladdening to note that our successors have taken the automation process to another level. However, it is pertinent to note that none of the above would have been possible were it not for proper planning. As the popular saying goes “he that fails to plan, plans to fail”. One of the first things we embarked upon after assumption of office was to map out a Ten years Sector Strategic Plan (SSP) 2010-2020. This plan from the onset identified the strengths, weaknesses, opportunities and threats confronting the IGR environment of the State and sought to identify short, medium and long term objectives and goals, initiatives and strategies for achieving them and measurable indicators to gauge progress. The cumulative effect of all of these led to a more efficient revenue administration system that was evidenced by an over 58% increase in IGR from a monthly average of N1.356billion as at September, 2011 when we came on board to N2.36billion by February, 2017. The JTB Reality Now, my experience being the Executive Secretary of the JTB is a whole different ball game all together. The JTB which was established as far back as 1961 under the Income Tax Management Act (ITMA), has been embedded in successive evolutions of the Act leading up to the subsisting Personal Income Tax Act (as amended). As an umbrella body of all tax authorities in Nigeria the main objectives of the JTB are to exercise the powers or duties conferred on it by express provisions of the Personal Income Tax Act, exercise powers and perform duties conferred on it by any enactment of the Federal Government, promote uniformity and ensure harmonisation of Personal Income Tax Administration across the country, impose its decisions on matters of procedure and interpretation of the Personal Income tax Act on any State for purposes of conforming with agreed procedure of interpretation as well as to advise all tiers of government on tax matters. The Board comprises the Federal Inland Revenue Service (FIRS), the 36 States and the FCT Internal Revenue Service and co-opted members, such as the Federal Ministry of Finance (FMoF), the Revenue Mobilisation, Allocation and Fiscal Commission (RMAFC), Federal Road Safety Commission (FRSC) the Nigeria Immigration Service (NIS), Nigerian Custom Service and Chartered Institute of Taxation of Nigeria (CITN). In Edo State I was a tax collector. Now, my role in the JTB has transformed into supporting the tax administrators and tax authorities towards ensuring a tax friendly environment in the country for the tax collector to be able to maximise tax collection while ensuring that the taxpayer remains happy paying his tax under a tax friendly environment. Under the astute leadership of the Chairman, Mr. Tunde Fowler, the JTB is currently being given a new direction in line with emerging trends both at the domestic and international level, this is against the backdrop of emerging global developments in the practice of taxation. It is pertinent to note that such trends also dovetail into strengthening the capacity of tax administrators towards effective tax administration. This is in respect of designing strategies aimed confronting tax evasion as well as ensuring that institutions and systems are strengthened to effectively meet with the core functions of tax administration. We are confident that with the knowledge gained thus far, and armed with a strategic plan that is aimed at fundamentally reforming the national tax environment in line with the National Tax Policy, the tax administrator in Nigeria will become even more effective for better service delivery to the taxpayer and to the nation as a whole. Conclusion Frankly speaking, the requirements to be an effective tax administrator are inexhaustible. It entails a potpourri of qualities and characteristic traits that encompasses professional discipline, personal integrity, unwavering courage and an avowed focus on set goals and objectives. There can indeed be no one prescription that will bring about effectiveness, but the manner and dexterity with which the individual pool these qualities juxtaposed with the factors that enhance effectiveness in tax administration will determine the extent to which one can aspire in the task of achieving effective tax administration. Thank you for your attention.

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35 NEWS

BUSINESS DAY

ECOWAS Youth Council honours Moghalu with Mandela Award

C O WA S Yo u t h C ou n c i l ( EYC ) , representative body for the youth populations of the 15-nation ECOWAS, has honoured Kingsley Moghalu, former deputy governor of the Central Bank of Nigeria and 2019 presidential aspirant, with its Nelson Mandela Award for Integrity and Meritorious Service to Humanity. The award was presented to Moghalu at a ceremony in Abuja yesterday. A delegation of the EYC led by Emmanuel Seun Williams, its president/youth ambassador, said while presenting the award that the Council deliberated and decided to confer the unique award on Moghalu in recognition of his vision, service to humanity in the United Nations and the CBN. Also, because of the inspiration he had been to youth in Africa, as a role model. The youth leaders noted that they were further impressed when, upon investigation they confirmed

that Moghalu’s nomination for the award was not selfsponsored. Moghalu thanked the EYC delegation for finding him worthy of the Nelson Mandela Award, and noted that the great world leader in his lifetime was also his own personal role model. The presidential hopeful explained his vision for the youth and future of Nigeria as articulated in his four published books: Rwanda’s Genocide, Global Justice, Emerging Africa: How the G l o b a l E c o n o m y ’s L a s t Frontier Can Prosper and Matter, and Build, Innovate and Grow (BIG): My Vision for Our Country. This vision, he said, “is focused on unifying Nigeria to rise to its true potential as a world leader, and tackling poverty and unemployment through specific policies such as education reform, an innovation-led economy, and the creation of a publicprivate venture capital fund that will boost youth entrepreneurship and create new jobs.”

German Ambassador to Nigeria, Bernhard Schlagheck, represented by Christopher Wenzel, head of corporation, German Embassy, Abuja, at the laying of foundation stone of Thompson and Grace Medical University Community Primary Healthcare Hospital in Afaha Obong, Uyo. With him are Moses Frank Ekpo, deputy governor of Akwa Ibom state; Emmanuel Umoh, director of Project Management Office, Thompson and Grace Medical University, and Isaac Thompson Amos, managing director, Thompson and Grace Investment Limited, promoter of Medical University (l).

Why Obaseki reinstated Ojuromi of Uromi

overnor of Edo State, Godwin Obaseki, has explained the reasons for the reinstatement of the Ojuromi of Uromi, His Royal Highness, Anselm Aidenojie II, by the state government, who was deposed by the administration of Governor Adams Oshiomhole. Obaseki said, “Consequent upon his tendering of apology to the Edo State

government and a plea for leniency from well meaning citizens of Edo State, the Executive Council of the state, approved the reversal of his deposition and was reinstated as His Royal Highness Anslem Aidenojie II, the Ojuromi of Uromi.” The governor said, “The people who pleaded for his reinstatement reported that the Ojuromi of Uromi had

been sober and remorseful and we are happy that he has undertaken to eschew acts unbefitting of his royal status.” Prominent sons and daughters of Edo had pleaded on the Ojuromi’s behalf, and begged for his reinstatement, as his conduct, mien and relations in public and private showed his readiness to work with the state govern-

ment in manners worthy of the exalted Ojuromi throne. It is said that the Oba of Benin, Oba Ewuare II, also waded into the matter and pleaded for leniency for the Onojie. News of the reinstatement was greeted with excitement in Uromi and other parts of the state, on Wednesday after the Edo State government announced the decision.

Genocide, hegemony and power in Nigeria Continued from back page

ethnic composition of Guinea, according to recent estimates, is as follows: Fula (41%); Mandinka (33%); Susu (12%); Kissi (5%); Kpelle (5%); and others (4%). Ever since independence from the French, Sekou Toure, an ethnic Mandinka, ruled the country with an iron hand. He was particularly hard on the Fula, whom he accused of plotting with the French to undermine his government. One of the prominent casualties was Diallo Telli, a Fula. He was the pioneer Secretary-General of the then Organisation of African Unity (OAU) before becoming Minister of Justice under Sekou Toure. In March 1977 Toure accused him of being the arrowhead of a Fula complot to overthrow the government. He was thrown into the notorious Camp Boiro prison where he died a gruesome death. Subsequent rulers of the country, from Louis Lansana Beavogui, Lansana Conté, Moussa Dadis Camara and the incumbent Alpha Condé, have all been non-Fula. It would seem that all the other ethnic groups have ganged up to ensure that a Fula will never rule over them. One of the closest who came to grabbing power was the brilliant Fula economist and banker Cellou Dalein Diallo. He had been prime minister under the late Lansana Conté where he acquitted himself as an effective administrator. He has become a rallying point of the opposition Union of Democratic Forces of Guinea (UFDG). But it would seem that the rest of the ethnic groups are already determined that they would never be ruled by the Fula, who remain the majority as well as being the most educated and among the most moneyed classes. The Mandinka, the Susu and others believe the Fula are a highly clannish and racist group and that once they seize power, they would turn the rest of them into slaves in their own ancestral homeland. Perhaps this explains why the Fulani

have turned their attention to Nigeria. They remember the great success of the Fulani Jihad led by Usman Dan Fodio and his son Mohammed Bello. They believe that if they cannot establish hegemonic power in their own ancestral homeland then they have a right to turn to Nigeria, a land they believe was given to them by God Almighty Himself. They have been encouraged by the fact that the population of Fulanis in Nigeria is even threatening to overtake that of their original home in Guinea. They are also inspired by the fact that three Nigerian leaders have been of the Fulani ethnic extraction, namely, Shehu Usman Aliyu Shagari, Murtala Ramat Mohammed (through his mother), Umaru Yar’Adua and the current incumbent of our High Magistracy Muhammadu Buhari. Under the Nigerian constitution, the Government of Nigeria has a duty to cater for all our citizens. Unfortunately, the Fulani from throughout West Africa and beyond believe Nigeria belongs to them by right. They are under this illusion that they can come from across the border with their cattle and the next day, have a right to demand land for settlement. They also forget that under the ECOWAS Protocol on the movement of peoples, visitors from our region can live only for 3 months as visitors. If they plan to live beyond the statutory 3 months they have to apply to regularise their stay. Unfortunately, recent Fulani emigrants recognise no such regulations. They can come today and tomorrow they are demanding all the rights and privileges appertaining to all bona fide citizens. Not only that, they are laying legal claims to ancestral lands belonging to the peoples of Benue, Taraba, Plateau and the rest of the Middle Belt. Before the arrival of the British, the Fulani spearheaded raids throughout the Middle Belt in a bid to capture slaves and for material booty, land and conquest. The peoples of the Middle Belt

heroically resisted them. Usman Dan Fodio was himself wounded by the Tivs in Benue, of which he later died in April 1817. Perhaps it was on account of this that the Fulani established a relationship of “abokanin wasa” (playmates) with the Tivs. For the better part of a century, the Tivs regarded the Fulanis as their friends and playmates. This relationship has foundered on the full realisation of their renewed ambitions for conquest, subjugation, genocide and dispossession. During the era of British colonial rule, the Caliphate was strengthened to bolster the moral economy of British imperial power. The Emirs were strengthened to lord it over the peoples of the Middle Belt, so long as they were satisfying the expectations of the colonial masters. Thus it came about that Emirs were created in areas that were 99% Christian, including such areas as Jema’a, Lafia, Keffi, Jere and Wase. They were even touting with the idea of creating emirates in Makurdi and Jos, were it not for the grace of God! Where they could not create new emirates the people were placed under the tutelage of Caliphal feudal overlords. A good example is the Tiv people, who for many years in the fifties and sixties were placed under the tutelage of the Emir of Muri. In Nigeria the original Habe Hausa peoples have become integrated into a new mongrel race known as “HausaFulani”. It is a constructed identity of very recent times. Most Fulani in today’s Nigeria are largely a settled urban community. Today, their foot soldiers are their pastoralist herdsmen that they have armed with sophisticated weapons to wreck bloodshed and pillage throughout the vast expanses of our ancestral savannah homeland in the Middle Belt. The Fulbe language is rarely spoken by most Fulanis in Nigeria. Contemporary Fulbe speakers are to be found mainly

in Gombe, Adamawa, Katsina and Kano. Although all the Emirs are Fulanis, you are most unlikely to hear their language spoken in their palaces. Hausa has become their lingua franca. By lumping themselves as HausaFulani, the Fulanis have successfully hidden their oppressive stranglehold on Northern Nigeria. The truth is that the Hausa people make up the bulk of the Talakawa. No Hausa person could ever aspire to be Emir. The Fulani have successfully exploited the Caliphate to consolidate their stranglehold over the North and over the rest of Nigeria which they believe to be their patrimony by right. What the peoples of the Middle Belt today face is a tragedy that can best be described as genocide. Fulani militias in their thousands have been rampaging across the primeval savannah, killing, pillaging and burning down entire villages. Not only do they maim and kill; they destroy farmsteads and repopulate them with their own people. I myself do not believe in preaching hatred. We must preach the gospel of love. We would never advocate for people to go about hunting Fulanis and doing reprisal killings. But nobody should deny the leaders of the victim communities the right to voice their legitimate concerns. When General T. Y. Danjuma raised alarm about it, he was told to “use his influence wisely”. General Danjuma urged his people to “defend themselves”, which is not only in line with the constitution of Nigeria; it is in conformity with the sacred precepts of the Law of Nations, Natural Justice and the dictates of Just Law Theory. The customs and international laws of war since time immemorial demand that people who face a direct threat to their own existential survival have a duty and right to engage in legitimate self-defence. It is not only a principle derived from law, it derives from morality and international ethics.

A1 BUSINESS DAY NEWS

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National Assembly considers $50 oil benchmark Respite for APC as Oshiomhole vows to reposition party ... to lay 2018 budget Tuesday KEHINDE AKINTOLA, Abuja

ational Assembly is considering $50 crude oil benchmark in the 2018 budget against the $47 benchmark adopted in the Medium Term Expenditure Framework (MTEF), BusinessDay gathered on Thursday. The development was part of ongoing discussion between the leadership of both Senate and House of Representatives and Executive, as part of efforts aimed at boosting projected revenue and reduce the fiscal deficit pegged at N2.005 trillion fiscal deficit and borrowing estimated at N1.699 trillion. Ibrahim Babangida, chairman, House Committee on Finance who spoke with Legislative correspondents on Thursday, expressed optimism that the budget will be laid next week Tuesday. “So far all the committees have submitted their budgets and throughout this week, we’ve been on the collations of the budget. The budget was supposed to be laid yesterday (Wednesday) but unfortunately, we

couldn’t conclude, so we are hoping by Tuesday, it will be laid on the floor of the House. “This is to show that it is almost concluded. What you are supposed to look at is not the size of the budget but the revenue projections. You know government has a lot of responsibilities and government budge is on activities on uncertain revenues even though we are still operating a deficit budget but I can assure you that the revenue potentials is higher in 2018 than it was in 2017. “It was on the basis of that, that the budget has to go on. If you should look at the crude price last year and this year, they’re different and the House is still looking at the possibility of slightly jerking up the benchmark again. Possibly to $50. You know we have passed 47 but if you look at the average price of crude now, it’s slightly above 60. That’s why we are thinking if jerking up the benchmark price from 47 to 50. So that we have more revenue to reduce the size of the deficit,” Babangida told the select Correspondents. While reacting to ques-

tions relating to abysmal poor implementation of the budget, Babangida argued that the procurement process adopted by Federal Government is deficient. “I think it has to do with the procurement process and I know recently the Federal Government has signed an Executive Order on ease of doing business. Because the budget was passed in May last year, if you look at the procurement process, it has to be advertised for a period of time, they have to open tender and do this and that, so it takes a lot of time. “But what we want to advice the Federal Government is to be making releases as at when due not to wait until when you have signed the budget or whatever. Because at the end of the day even though the budget is not signed, once it is signed immediately all money that is due should be sent to the respective ministries because if you conclude your procurement process and the money is not there, what we have is that they don’t even award until when there is money now! Which I believe is not in line with the financial regulations.

… it is APC governors’ project - Okorocha JAMES KWEN, Abuja

espite seems to be coming the way of the governing All Progressives Congress (APC) as Adams Oshiomhole, an aspirant to the position of the national chairman, promised to ensure a total overhaul of the party if elected. Oshiomhole said if given the opportunity as national chairman, he would rebuild a credible membership register and ensure continuous registration of members to make APC a membership driven party and integrate them accordingly into relevant structures. The former Edo State governor, who was recently endorsed by President Muhammadu Buhari and APC governors for the position of national chairman, said this Thursday during his formal declaration in Abuja, where he reeled out the strategies of how APC under him could be rejuvenated. “As I present myself for the position of the National Chairman of our great party, it

is pertinent to reflect on what constitutes the APC. The APC is a progressive party, which represents the collective will of all the members of the party in all the 36 states of the federation and the Federal Capital Territory (FCT). “It is my hope that if and when elected as national chairman of the party, we will reposition and re-organise the party based on its philosophy of social democracy, which basically means people-oriented, membership driven and mass based political organisation. “To be able to translate these into concrete action that is visible and verifiable. Under our leadership, we will naturally have to do a couple of things differently, in the day to day management of the party, while interfacing with all those elected on the platform of the party at all levels, the APC national chairman aspirant declared. He promised to promote internal democracy within the party, ensure APC operate on the basis of its rules which is the party Constitution and other laws of the Federation

as they relate to the formation and administration of political parties, hence the Constitution of the party is the basis of the contract between the party members. According to Oshiomhole, as a governing party founded on the values of social democracy, APC must be seen to play politics of inclusion, which encourages debates, contestation and consensus on policy choices. Oshiomhole stressed that his leadership would give effect to article 25 of the APC’s constitution, which provides that ‘National Convention of the party shall be held once in two years; National Executive Committee (NEC) every quarter and National Working Committee (NWC) once every month’ while annual platforms would be organised to review not only the activities of the party but even of governments elected on the platform of the party at all levels. “Similarly, other organs of the party including those at the zonal and state levels will be encouraged to meet as stipulated by the Constitution.

AfDB’s new investment forum to explore PPP model MIKE OCHONMA

n a move that seeks to attract investment and public-private partnerships aimed at transformative development on the continent, the African Development Bank (AfDB) this week launched the Africa Investment Forum (AIF). Speaking at the formal launch in Johannesburg, South Africa, Akinwumi Adesina, president, AfDB, said the institution was championing the AIF as a platform to actively engage the private sector and to facilitate projects that have the capacity to transform the continent. He added that the AIF, which would take place in November, would provide a much-needed global platform that would help catalyse private-sector investments in Africa, by bringing in developers, strategic investors, venture capital funds, pension funds, global sovereign wealth funds and insurance companies. Adesina added that the forum was a unique path for investment and that it would be a “genuine African market place” for closing deals and accelerating development of the continent. According to the AfDB

president, “Africa is growing economically resilient. We are swimming with a fastmoving current of global finance, trade and economic growth…but we must go faster. We have much ground to cover,”. Adesina highlighted that the forum would focus on five key aspects including pipeline development, project preparation, policy environment, project bankability and investment promotion. “This is not a talk shop. There will be no political speeches. The AIF will provide an open platform to organise efforts among multilateral institutions, governments and the private sector to improve a pipeline of projects capable of transforming the continent,” he added. He noted that the AIF would also harmonise processes among the bank and its partners, reduce intermediation costs, improve quality of project information and documentation, and increase action-oriented engagements between African governments and the private sector. Some stakeholders who spoke during the gathering stated that, the meeting is the biggest investment platform on the African continent.

Board of Directors: L-R: Kojo Poku, Sina Alimi, Wencelav Safrega (managing director), Millison Narh (chairman), Chris Oshiafi, Eric Okoruwa, and Michael Ebbi, at the official launch of PanAfrican Capital Ghana Limited in Accra.

Lagos advances N5bn loan to start-ups, SMEs JOSHUA BASSEY

s part of the strategies to boost the economy and create job opportunities, Lagos State has advanced loans totalling N5.22 billion to some 6,462 start-up, small and medium scale enterprises (SMEs). The loans were sourced from the N25 billion Lagos State Employment Trust Fund (LSETF) initiated by the government three years ago, with the aim of encouraging start-ups, artisans, traders and young entrepreneurs to

translate their business ideas into reality. Uzamat Akinbile-Yussuf, the commissioner for wealth creation and employment, told journalists on Thursday that in addition to the above, more applications had been received and processed and successful had been contacted to “meet the conditions that precede the disbursement of their loans.” “In fulfilment of the state government’s mandate, the LSETF has now disbursed N5.22 billion to 6,462 beneficiaries, out of the approved loans totalling N5.98 billion

for 8,229 beneficiaries received. Akinbile-Yussuf also added that as part of efforts to encourage start-ups in innovation and technology, the state government launched innovation-driven enterprise programme tagged “Lagos Innovates” where access to high quality infrastructure, learning and networks are provided. According to AkinbileYussuf, the projection is to cement the place of Lagos as the leading destination for start-ups in Africa. The government, she said

through the Lagos State Employability Support Project, had also concluded plans to produce 10,000 skilled persons within three years to cater for demand in key sectors such as manufacturing, healthcare, construction, entertainment, garment making and tourism and hospitality. “In addition, the project will place at least 6,000 trained persons in jobs and upgrade the equipment and improve the curriculum at two of Lagos State Technical and Vocational Education Board (LASTVEB’s) colleges,” she said.

Politics & Policy

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APC reschedules Ekiti guber primary to Saturday ...Impunity has encourage fraud, electoral Violence - Stakeholders INIOBONG IWOK

he leadership of the All Progressives Congress (AP C ) has rescheduled the Ekiti governorship primary to Saturday, May 12th from the earlier fixed date of Friday, May 11th. Publicity Secretary of the party, Bolaji Abdullahi, said that the primary would now hold on Saturday from 8a.m. Recall that last Saturday’s primary was disrupted by agents of some of the aspirants who accused the governorship primary committee of colluding with some party chieftains to manipulate the exercise. But speaking yesterday, Abdullahi disclosed that the rescheduled date was arrived at after due consultation among the party’s National Working Committee (NWC), all the aspirants and other parties. The APC publicity secretary said after reviewing the report of the election committee, the party had decided to cancel the first primary, while banning the agents of

Oyegun

the aspirants fingered in the crisis from further participating in the primary election in any capacity. The APC disclosed that

all the aspirants would be allowed to participate in the rescheduled primaries, to give a level-playing field due to the time limit, adding that

LGs poll will hold Saturday – Oyo Govt …restricts movement tomorrow AKINREMI FEYISIPO, Ibadan

he Oyo State Government says local government elections will hold on Saturday, May 12, 2018 as scheduled, saying that there will be restriction on movement between 8am and 3pm. The Attorney-General and Commissioner for Justice, Oluseun Abimbola said that the supposed legal impediment towards the conduct of the election has been vacated as a Federal High Court in Ibadan struck out the suit filed by some persons from Eruwa against Oyo State Independent Electoral Commission (OYSIEC) and others challenging elections into newly created wards in Oyo state. Abimbola said that in the suit FHC/IB/CS/47/2018 (Olugbenga Adeyemi & Others V INEC, OYSIEC and OYSG, the presiding judge, Justice Abdul Malik of the Federal High Court in Ibadan held that the subject matter of this suit

is clearly on the powers of OYSIEC being challenged by the plaintiffs, and not the powers of INEC joined as a federal agency. “She agreed with the submissions of the Oyo State Attorney-General, Oluseun Abimbola Esq, that the joinder of a federal agency will not automatically confer jurisdiction on the court if the subject matter contested is outside the jurisdiction of the Court. “The court then held that the suit was not for the Federal High Court, but for the State High Court and accordingly struck out the suit in its entirety along with any previously made orders,” Abimbola explained. “It will be recalled that the court had earlier made an order of injunction, restraining defendants from using the new ward delineation for the elections. That order is equally now vacated. With this ruling, the coast is clear for the exercise of democratic rights by all residents of the State to elect Chairmen

and Councilors into all Local Government Councils, Local Council Development Area (LCDAs) and their constituent wards on Saturday, May 12,” he further said. The State Government said that there would be vehicular restriction between 8am and 3pm on tomorrow during the conduct of the local government election in the state. The State Commissioner for Information, Culture and Toursim, Toye Arulogun said that Students sitting for National Board of Technical Examination (NABTEB) with proof of evidence would be allowed to move to their examination centres. Arulogun explained that election will hold in 33 local government areas and the 35 local council development areas, urging the general public to troop out en masse to cast their votes for candidates of their choice. He appealed to residents to bear with the commission on the restriction.

necessary actions will be taken against agents found to have disrupted last Saturday exercise. However, the names of

the agents disqualified from taking part in the party activities are Ayodeji Omowaye, Rotimi Faleye, Kayode Afolabi, Oladele Ademola Samuel, Oyetunde Ojo, Akintade Olayisade and Temitope Adewumi. It was also decided that the agents would wear tags that bear the names of the aspirants they represent. However, political stakeholders in the country have disclosed that the spate of electoral violence in the country could only be curtailed if electoral offenders are punished, while berating the Independent National Electoral Commission, (INEC) for refusing to follow the provision of the electoral law on punishment of election offenders. Wale Ogunade, activist, lawyer and president of voter’s awareness initiative Lagos, said that the disruption of the APC primary in Ekiti without any punishment for the perpetrators signalled danger. “What do you expect in this kind of system where impunity is the order of the day; there was a man who

came out to say he used to rig election for PDP; what has been done to him? What happened in Ekiti is unfortunate, but it would continue because no one is punished, even the electoral law gives INEC the power to punish electoral offenders but how many have they punished? It is danger and means anybody can just come and kill INEC officers on election duty without anyone doing anything,” Ogumade said. David Bayesha, a lawyer and senior advocate of Nigeria (SAN), has however, blamed the desperation of Nigerian politicians to occupy public office for the increased electoral violence in the country, adding that the refusal of successive administrations to punish electoral offenders has also fueled it. “Of course, you know the kind of politics we play here; it is a do-or-die affair; winner takes all, and considering the lifestyle they live after being elected, they want to do everything to be there. But you have to also blame the system for encouraging impunity,” Bayesha said.

Ekiti: Direct primary is the only way to go – Concerned APC elders

oncerned elders of the All Progressives Congress (APC) in Ekiti State have called for adoption of direct primary (an election in which voters choose candidates to run on a party’s ticket in a subsequent election for public office, without the use of delegates) to avoid a repeat of the crisis that attended the party’s gubernatorial primary last Saturday. In a communiqué they signed after a meeting, the elders said they favoured direct primary because “the members of the party should have equal rights to express their will as to who should be the flag bearer of their party in the Ekiti gubernatorial race. Direct primary will achieve this. Delegate primary has been highly compromised as witnessed last Saturday and doing it again exposes the party to repeating the same mistake only at a greater level. “The NWC itself has shown bias and given that delegate primary is more susceptible to its manipulation, especially since it is secret ballot of selected delegates and in selection of officials to administer the same. Direct primary provides a counter balance to

NWC biased influence. “Direct primary provides an easier and cheaper option since it will be on decentralised basis and it will be Option A4 with no ballot papers printed, just result sheets and minimal security. “Candidates will be able to canvass more widely and less likely to have opportunities for circumventing the democratic process either with bribes.” According to the elders, “The demand of Ekiti is direct primary as evidenced by the way the aspirants voted at the SW leader caucus meeting. Any other plan implemented will be unsafe and dangerous even for our party officials. We must be cautious. The situation is tense in Ekiti today and no security guarantees can be provided to any position that counters the position of our elders and the candidates that met them.” The concerned citizens also noted with dismay the irregularities that preceded last Saturday’s botched primaries, including the alleged “shoddy arrangements by the organising committee, lack of clear guidelines by the primary committee, the conflict of interest of its members, use of levers of violence and

security agencies at the primary grounds and violation of secret ballot rules including evidence of primary delegates compromised by bribes, threats and intimidation.” “We also note with dismay the incoherent response of the NWC of the party, which seems to be acting at cross purposes with the state executives who had their offices invaded by thugs as well as statements issued seemingly in coordination with one particular candidate to the detriment of others. We also note that one or two NWC members have since claimed no meetings to discuss Ekiti post primary has been held which further puts to test the claim of NWC’s impartiality and ability to constitute an even-handed primary committee now and in the future,” they said. The elders also commended the intervention of the Southwest leaders on the instruction of President Muhammadu Buhari on the crisis in Ekiti. “We enjoin the NWC to do the right thing and toe the path of honour and respect Ekiti for the collective benefit of our party. They cannot love Ekiti better than Ekitians and their regional leaders.

Friday 11 May 2018

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FINANCIAL TIMES Donald Trump to meet Kim Jong Un in Singapore on June 12

Oil market awaits global reaction to Trump’s Iran move Page A5

Page A4

World Business Newspaper

Russian tycoon dragged into Trump porn actress scandal Viktor Vekselberg links under scrutiny after targeting by US sanctions KATHRIN HILLE

or a man who tries to stay out of the limelight, Viktor Vekselberg is failing badly. Not only has his metals, energy and telecoms empire become embroiled in US sanctions but now the 61-year-old Russian tycoon has been dragged into the fallout from porn star Stormy Daniels’ lawsuit against US president Donald Trump. Columbus Nova, a US-based investment management company, paid $500,000 to Essential Consultants, a vehicle through which Mr Trump’s lawyer Michael Cohen paid Ms Daniels, whose legal name is Stephanie Clifford, before the 2016 US presidential election to keep silent about an alleged affair with Mr Trump 10 years earlier. Mr Trump denies the affair. Ms Clifford’s lawyer, Michael Avenatti, claims that Columbus Nova’s payment was money from Mr Vekselberg. Columbus Nova has denied that Mr Vekselberg used the company as a conduit for a payment to Mr Cohen. Describing itself as American-owned and American-controlled, Columbus Nova has said it is independent from the Russian businessman. The payments to Mr Cohen were for his services as a “business consultant regarding potential sources of capital and potential investments in real estate and other ventures”, it said. The Ukrainian-born Mr Vekselberg is Russia’s ninth-richest man with a net worth of $13.5bn, according to Forbes. Last month he was targeted, together with six other leading Russian businessmen, by tough US sanctions intended to respond to Russia’s actions in Crimea, Syria and elsewhere. Mr Vekselberg set up Renova Group, his holding company, in 1990 as a joint venture with former college classmate Len Blavatnik, a Soviet-born US citizen. Mr Vekselberg made his fortune through the privatisation of the Russian aluminium

industry in the 1990s after the collapse of the Soviet Union. The single biggest contribution to his wealth came from the sale of a minority stake in oil joint venture TNK-BP to Russian state oil company Rosneft for $7bn in 2013. A spokesman denied any ties to Mr Cohen. “Neither Viktor Vekselberg nor Renova has ever had any contractual relationship with Mr Cohen or Essential Consultants,” said Andrey Shtorkh, via email. But Mr Vekselberg could struggle to disassociate himself completely from Columbus Nova, which described itself as “the US-based affiliate of the Renova Group of companies”, in a May 2017 SEC filing by Columbus Acquisition Corp. Columbus Nova also identified its chief executive, Andrew Intrater, as Mr Vekselberg’s cousin, in the same filing. According to other corporate filings, Mr Intrater has served as a director at Renova US Management LLC and held other executive positions at Renova Group. Mr Shtorkh, Mr Vekselberg’s spokesman, said: “As to [the] relationship between Columbus Nova and Mr Cohen, you have to ask Mr Andy Intrater, because Columbus Nova is a company owned and managed by him.” According to reports by CNN and the New York Times, both Mr Vekselberg and Mr Intrater were questioned by US investigators about the payments this year. It was reported that Mr Vekselberg was confronted by federal prosecutors as he disembarked from a private plane at a New York area airport. He has not been accused of wrongdoing. There are other intersections in the orbit of Mr Vekselberg and Mr Trump’s wider entourage. Mr Intrater was a big donor to the Trump campaign, giving $250,000 for the US president’s inauguration fund in January last year. He also contributed $35,000 to a committee for his re-election five months later. Mr Vekselberg was among the Russian guests at Mr Trump’s inauguration last year — on a ticket supplied by Mr Intrater, as his guest.

Mahathir sworn in as Malaysian premier after stunning poll win Veteran former PM’s comeback ends coalition’s 60-year grip on power HARRY JACQUES

ahathir Mohamad was sworn in as Malaysian prime minister on Thursday after sealing a historic general election victory that ends the sixdecade rule of the governing coalition he once headed. The south-east Asian nation’s election commission earlier announced the Mahathir-led Pakatan Harapan (Alliance of Hope) opposition bloc had won 113 seats, one more than the 112 required to hold a simple majority. Former prime minister Najib

Razak’s Barisan Nasional (National Front) coalition claimed 79, with the Malaysian Islamic party (PAS) and others taking the remainder. The result marks the first democratic transition to an opposition party since Malaysia achieved independence from Britain in 1957, albeit in an unorthodox manner. The 92-year-old Mr Mahathir, who once repressed opposition parties during his 22 years as prime minister from 1981 to 2003, handpicked his two successors, including Mr Najib, before turning on his protégé and creating a new opposition Continues on page A4

Viktor Vekselberg with Russian president Vladimir Putin, right, in Sochi in 2014. The oligarch has been described as ‘close to Mr Putin’ © AFP

Daimler leads new investors in SoftBank’s $100bn Vision Fund German carmaker, Japanese banks and Larry Ellison are among venture’s final backers ARASH MASSOUDI, LEO LEWIS AND PATRICK MCGEE

ermany’s Daimler and Japan’s three largest banks are set to become investors in SoftBank’s Vision Fund as the Masayoshi Son-led company looks to complete fundraising for its $100bn technology investment fund, according to people briefed on the matter. The Mercedes-Benz maker along with MUFG, Mizuho and Sumitomo Mitsui Banking Corp will be among the final investors in the fund, which is the largest ever created in private equity or venture capital, these people said. They added that other new investors will include Larry Ellison, the billionaire US co-founder of software group Oracle who is investing personally, and the sovereign wealth fund of Bahrain.

Mr Son, founder of SoftBank and the person who has final say on the Vision Fund’s investment decisions, is also set to make a personal investment as well as create structures that allow the company’s executives to participate in the fund. The new investments will allow the fund to reach its goal of hitting about $100bn, set out when it was launched with the backing of the state investment funds of Saudi Arabia and Abu Dhabi just over a year ago. SoftBank is debating internally when it should begin fundraising for its next fund, one of these people said, which is expected to be named Vision Fund II. Daimler and the Japanese banks are set to be among the smaller ones in the fund, alongside earlier participants such as Apple, Qualcomm, Foxconn and Sharp. About $88bn of the fund comes from Soft-

Bank, Saudi Arabia and Abu Dhabi. Daimler has been among the most active carmakers investing in ride-hailing and car-sharing platforms in recent years. In 2014 it acquired MyTaxi, a cab-hailing service that now has 70m passengers in Europe. Last year it acquired Chauffeur Privé in France, a rival to Uber. It also owns the car-sharing company car2go. To build up scale, Daimler and BMW announced in March that they would merge their new mobility services on everything from electric vehicle charging to ride-hailing. Individuals close to the three Japanese banks said their decision to invest had a twin motivation: the quest for returns in Japan’s ultra lowinterest environment and the desire to further strengthen their relationships with what is by far Japan’s most active corporate name.

Donald Trump declares trade war on China No sovereign power could accept the humiliating demands being made by the US MARTIN WOLF

he Trump administration has presented China with an ultimatum on trade. That is what the US’s “draft framework” for the trade talks with Chinese officials in Beijing last week actually is. China could not accede to its demands. The US administration is either so foolish that it does not understand this or so arrogant that it does not care. This may be a decisive moment for relations between the world’s two greatest powers. The US side demands the following “concrete and verifiable actions”. China is to reduce the US-China trade imbalance by $100bn in the 12 months beginning June 1 2018, and by another $100bn in the 12 months beginning June 1 2019. China should also immediately eliminate all “market-distorting subsidies” conducive to excess capacity. It will strengthen intellectual property and eliminate technology-related requirements for joint ventures. “Furthermore, China agrees to . . . cease the targeting of [US] technol-

ogy and intellectual property through cyber operations, economic espionage, counterfeiting and piracy. China also agrees to abide by US export control laws.” Moreover, China will withdraw requests for World Trade Organization consultations relating to tariff actions on intellectual property. “In addition, China will not take any retaliatory action . . . in response to actions taken or to be taken by the US, including any new US restrictions . . . China immediately will cease all retaliatory actions currently being pursued.” China “will not oppose, challenge, or . . . retaliate against US imposition of restrictions on investments from China in sensitive US technology sectors or sectors critical to US national security”. But “US investors in China must be afforded fair, effective and non-discriminatory market access and treatment, including removal of . . . foreign investment restrictions and foreign ownership/shareholding requirements”. By July 1 2020, China will reduce tariffs in “non-critical sectors to levels that are no higher than” equivalent US

tariffs. It will also open access to services and farm products as the US specifies. The agreement is to be monitored quarterly. Should the US conclude that China is not in compliance, it may impose tariffs or import restrictions. China “will not oppose, challenge or take any form of action against” any such US impositions. China will also withdraw its WTO complaint that it is not being treated as a market economy. What is to be made of these demands? The call for a reduction of the bilateral deficits by $200bn (up from $100bn) is ridiculous. It would require the Chinese state to take control over the economy — precisely what, in other respects, the US demands it not do. It is a violation of the principles of non-discrimination, multilateralism and market-conformity that underpin the trading system the US created. It should be ashamed of itself. It ignores the overwhelming probability that this will not reduce overall US deficits, particularly given US fiscal irresponsibility. It ignores the inevitable adverse effects on third countries.

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NATIONAL

Italy’s populist parties edge closer to deal to govern Five Star and League hail ‘significant steps’ after Berlusconi gives blessing to tie-up JAMES POLITI

he anti-establishment Five Star Movement and the far-right League moved closer to forming a Eurosceptic government in Italy after Silvio Berlusconi, the former prime minister, gave

his blessing to a deal that would secure power for two avowedly populist forces in the eurozone’s third-largest economy. Luigi Di Maio, the Five Star leader, and Matteo Salvini, the League leader, met to try to thrash out details of a potential agreement, including who would secure the job of prime minister. Key cabinet positions,

including the finance ministry and foreign ministry, were also being discussed. In a joint statement after meeting on Thursday, Mr Di Maio and Mr Salvini described a “positive climate to define the government’s agenda and priorities” and said “technical” meetings among staff would begin in the afternoon.

“In terms of the composition of the executive, and the premier, significant steps forward were taken amid constructive collaboration on all sides, with the aim of quickly giving an answer and a political government to the country,” they said. The parties’ talks could take until Sunday.

Anbang’s Wu Xiaohui sentenced to 18 years for fraud

Mahathir sworn in as Malaysian premier after stunning... Continued from page A3 movement. He is remembered for his fiery political style. During the Asian financial crisis in the 1990s he blasted currency traders, describing them as “unscrupulous profiteers” and slapped capital controls on global investors. His policies won criticism at the time, but Malaysia swiftly recovered and was seen as having weathered the crisis better than most of the “tiger” economies. Mr Najib, 64, on Thursday acknowledged the “people’s verdict” in a concession speech, saying that, since no single party won a majority, he would respect whatever decision was made by the king, who constitutionally chooses the head of government. Crowds outside the official state palace in Kuala Lumpur, where the swearing-in ceremony was held, cheered and waved flags in support of Mr Mahathir. Theebham George Sandanasamy sat on the roof of a truck with his two daughters. “Our hero took back our country,” he said. “He was a legend, and today he made history.” Mr Mahathir “is the right leader for the right time. There was so much controversy with [Mr Najib]”, said Sharifah Dalilah, a voter from Kuala Lumpur. Markets were closed in Malaysia — both Thursday and Friday have been designated as public holidays — but one-month forward ringgit contracts dropped as much as 4.7 per cent on Thursday, putting the currency at RM4.265 to the US dollar. Later in afternoon trade in Hong Kong the contract indicated a 1.5 per cent drop for the ringgit. It is unclear how Mr Mahathir will bring unity to Alliance of Hope, which is comprised of four political parties with different aims. His longer term future is also unclear. While on the campaign trail he promised to step aside after the election and hand power to Anwar Ibrahim, who is in jail on sodomy charges. Mr Mahathir also said he would seek a pardon for Mr Anwar, who has denied the charges and is scheduled to be released on June 8. Wan Azizah, Mr Anwar’s wife and president of Alliance of Hope, is set to become deputy prime minister under Mr Mahathir. Rating agency Moody’s struck a cautious tone over the prospects for Malaysia’s economy, saying that while “little was known” about Mr Mahathir’s economic policies it was wary about the proposed abolition of a goods and services tax and the reintroduction of fuel subsidies. Such campaign promises, “if implemented without any other adjustments, would be credit negative”, said Anushka Shah, a senior analyst at Moody’s.

Mr Di Maio and Mr Salvini have held on-off talks about forming a governing alliance for weeks, following Italy’s indecisive general election in March. The talks were agreed by Sergio Mattarella, Italy’s president, after the two leaders asked for more time to reach a deal and avert a caretaker administration and a fresh election.

Shanghai court cements downfall of Chinese insurer’s flamboyant former chairman

GABRIEL WILDAU

Donald Trump and secretary of state Mike Pompeo, behind the president, welcome released prisoners Kim Hak-song, left, and Kim Dong-chul © EPA

Donald Trump to meet Kim Jong Un in Singapore on June 12 Announcement comes as US welcomes home three Americans detained in North Korea SAM FLEMING, KATRINA MANSON AND JOSHUA OLIVER

S president Donald Trump said his meeting with North Korean leader Kim Jong Un will take place in Singapore next month, as the two countries lay the groundwork for high-stakes discussions over denuclearisation. The US president tweeted that the meetings would take place on June 12. “We will both try to make it a very special moment for World Peace!” Mr Trump said. The announcement came hours after Mr Trump welcomed three American prisoners who had been held in North Korea and declared their release a sign of Mr Kim’s good intentions towards the US. Mr Trump is gearing up for his North Korean talks just as he walks away from America’s agreement aimed at freezing Iran’s nuclear ambitions, upending years of global diplomacy.

The North Koreans have announced a moratorium on nuclear and missile testing and the closure of a testing site, as well as holding top-level talks with South Korea. However some experts doubt that the North Koreans are willing to jettison weapons capabilities the country has spent decades developing. Mr Trump had ruled out Korea’s demilitarised zone as a venue for the talks, which will be the first between a US president and North Korean leader. Mike Pompeo, the new secretary of state, has now been to Pyongyang twice in recent months to hold discussions with the North Koreans over the parameters of the summit. Earlier Mr Trump stood on the tarmac at Andrews Air Force Base near Washington and thanked Mr Kim following the release of the three prisoners. “I think this will be a very big success. It’s never been taken this far, there’s never been a relationship like this,” he said. Two of the three former hostages,

Kim Hak-song and Tony Kim, were detained during the Trump administration while a third, Kim Dong-chul, was detained at the tail-end of the Obama administration. They walked off the plane unaided and stood alongside the president as he spoke to the media. Kim Dong-chul, who spoke through a translator, said: “It’s like a dream and we are very very happy.” Mr Pompeo, who had travelled to North Korea to retrieve the three men, said they appeared in good health. One man said he had to do hard labour while a prisoner, but that North Korea provided medical treatment when he was ill. The fate of the three men contrasted with that of the former American prisoner Otto Warmbier, who was sentenced to 15 years hard labour following his 2016 arrest in North Korea. The Trump administration secured his release last year but he was sent home in a coma and died shortly afterwards.

Comcast to include $2.5bn break fee in any new Fox approach Latest twist in cable group’s battle with Disney after Murdoch rejected initial offer MATTHEW GARRAHAN AND JAMES FONTANELLA-KHAN

omcast will include a $2.5bn break fee in any new offer for the entertainment assets of Rupert Murdoch’s 21st Century Fox after an earlier proposal was rejected by the mogul, according to people briefed on the deal. The break fee would be payable in the event that any Comcast-Fox deal ran into regulatory trouble. The US cable group, which also owns NBCUniversal, did not include a break fee in its first approach to Fox in November, when an offer that valued Fox’s entertainment assets at about $60bn was rebuffed. The Fox board instead recommended an all-stock offer from Walt Disney that valued the Fox assets, including its movie studio, cable chan-

nels and 39 per cent stake in European pay-TV group Sky, at $52bn, or $66bn including debt. However, Comcast will pitch its new offer at a significant premium and is in talks with US banks to secure up to $60bn in financing, according to people briefed on its plans. The inclusion of a break fee is the latest twist in a months-long battle that will reshape the global media landscape. Mr Murdoch’s decision to break up a company that took him decades to assemble has triggered a race by Comcast and Disney, which are keen to strengthen their hands against deep-pocketed streaming players such as Netflix and Amazon. The inclusion of a break fee would be an important component of a new Comcast bid. A recent Fox regulatory filing revealed it walked away from Comcast’s November approach because the cable group did not offer to

include such a fee. The filing said that “party B” — widely known to be Comcast — “was unwilling to agree to an acceptable allocation of regulatory risk” associated with the purchase of the Fox assets. The subject of a break fee was raised multiple times in discussions between the two sides, according to the filing, but Comcast never included one in its offer. Disney included a $2.5bn break fee in its own offer, which was ultimately recommended by the Fox board. Comcast is now ready to make a comeback offer but people briefed on its plans cautioned that a new bid was not guaranteed. The final decision on whether it makes a new move is likely to hinge on the approval by a US judge of AT&T’s $85bn takeover of Time Warner, which is being challenged in court by the US Department of Justice.

he former chairman of Anbang Insurance Group has been sentenced to 18 years in prison for financial fraud, cementing the downfall of the former car salesman who rose to the pinnacle of global high finance. Wu Xiaohui had pleaded for leniency at his trial in March, where prosecutors accused him of diverting insurance premiums for personal use and making false disclosures to regulators. Wu’s punishment is the most severe among a group of once-highflying Chinese tycoons who have had their wings clipped by Beijing’s crackdown on outbound dealmaking and systemic risk. Other privately owned conglomerates, including Dalian Wanda, HNA and Fosun International, have all been forced to sell assets or scale back new foreign acquisitions but their owners have avoided prison. Xiao Jianhua, the billionaire with close connections to elite political families who was abducted from Hong Kong last year, is believed to be in custody but has not been publicly charged. Analysts viewed the crackdown in part as a move by President Xi Jinping to reassert control over privately owned groups whose pursuit of foreign trophy assets at a time of rampant capital flight and currency depreciation was seen as undermining financial stability. “The message here is that socalled ‘barbaric expansion’ will not be tolerated,” said Dong Ximiao, senior researcher at the Chongyang Institute for Financial Studies at Renmin University of China. “Anbang’s asset expansion in recent years was extraordinarily fast. In the financial sector, development must be orderly. If you violate these norms, there will definitely be a problem.” Political connections aided Wu’s rise but ultimately failed to protect him. He is married to a granddaughter of former paramount leader Deng Xiaoping, while Anbang counted influential princeling Chen Xiaolu among its former board members. Wu also sought political relationships in the US. Shortly after the 2016 presidential election, he met Jared Kushner, Donald Trump’s adviser and son-in-law, about a possible New York real estate deal. It never materialised. Wu’s sentence is longer than the five-and-a-half years given to Xu Xiang, the billionaire hedge fund manager convicted of market manipulation in the aftermath of China’s 2015 stock market rout.

Friday 11 May 2018

C002D5556

BUSINESS DAY

FINANCIAL TIMES

COMPANIES & MARKETS

@ FINANCIAL TIMES LIMITED

Oil market awaits global reaction to Trump’s Iran move Biggest immediate risk is threat to non-US companies and banks’ desire to finance trades GREGORY MEYER, DAVID SHEPPARD AND ANJLI RAVAL

he decision by the US to pull out of the Iran deal and reimpose sanctions on the country had an immediate impact on the oil industry. Prices jumped above $77 a barrel for the first time since 2014, as traders tried to assess how the country’s 2.5m barrels a day of exports would be affected. But predictions for how much crude will eventually be lost from the market — and Tehran’s state revenues — still vary wildly. While there are six months before sanctions take full effect on Iran’s oil, some in the industry are already predicting the nation’s exports could fall by more than 1m b/d. Others, though, believe that European powers choosing to remain in the deal could soften the impact down to as little as 200,000 b/d. The biggest immediate risk is that the threat of so-called secondary sanctions on non-US companies will have a chilling effect on international banks’ willingness to finance trades. That could essentially cut off some of the world’s largest independent commodity traders from the country, who had played a key role in helping Tehran raise its exports after the nuclear deal was agreed in 2015. “This will largely shut down trade with Iran for those who got back in early,” said one executive at a major commodity trading house. “There may eventually be some wiggle room carved out between the Europeans and the Americans, but for now it will quickly become a no-go area, especially for banks who have financed the trades.” The risk of falling foul of the US was already clear on Wednesday. A London-based shipbroker said one major oil company that had been looking to hire an Iranian tanker to move crude had called off the search after the US announcement. “Everyone knows there is this 180-day grace period, but people are

already starting to change behaviour because they just don’t want to take the risk,” the shipbroker said. He said that while there was a big question mark over how European governments react, even if they push back against the US there was no guarantee that banks and insurers would be comfortable handling these transactions. The EU’s options include using so-called “blocking regulations” to shield their companies from the reach of the US. These were previously used to allow European companies to trade with Cuba, despite the risk of US penalties. A previous round of international sanctions imposed on Iran in 201112 took a maximum of 1.4m b/d off world markets. Those restrictions eased after 2015, when Iran reached a deal with the US, the UK, France, Germany, Russia and China to curb its nuclear programme. The US will reinstate a system whereby big buyers of Iranian crude can apply for waivers to continue purchases, provided they show “a commitment to decrease substantially” the volumes they buy. South Korea, one of the biggest buyers of Iranian crude after China, said on Wednesday it would seek an exemption. Richard Nephew, of Columbia University’s Center on Global Energy Policy, who worked on the earlier sanctions in the Obama administration, said the consequences of Mr Trump’s decision would depend on how other countries responded. “Now we have the million-dollar question of what kind of co-operation we are going to get from the rest of the world’s companies,” Mr Nephew said. “Companies are going to be exploring their options.” He estimated there was likely to be a varying degree of compliance, with Iran’s oil exports cut by perhaps 400,000-500,000 b/d. Some countries are likely to try to avoid reducing their purchases of Iranian oil for as long as possible. “China will completely ignore this,” Mr Nephew said. Rouhani says Iran will remain in nuclear deal

Turkey to take steps to curb inflation amid lira’s fall LAURA PITEL

urkey’s president Recep Tayyip Erdogan and his top economic advisers will take steps to curb inflation and halt the lira’s slide, the country’s presidency said on Wednesday after the currency hit a fresh record low. Mr Erdogan convened an emergency meeting at the presidential palace in Ankara as the lira continued to tumble amid fears about high inflation, a wide current account deficit and a flurry of election spending promises. The announcement of the meeting caused the currency to rebound to 4.29 against the dollar as investors bet that the Turkish central bank would call an emergency meeting

and announce another rate increase just weeks after it raised its key rate by 75 basis points. Following two-and-a-half hours of discussions, the presidency said in a statement that measures would be taken to reduce interest rate and exchange rate pressures, and to combat inflation. It did not specify what the measures would be. “The Central Bank will continue to effectively use the instruments that it has in its possession,” it said. In comments unlikely to calm fears that the Turkish economy is overheating, the statement also attributed Turkey’s success to growthorientated policies, adding: “In the period ahead, our country will continue on the path of growth-based policies.”

German push for ‘class action’ lawsuits will benefit VW drivers Berlin plans form of collective redress that could allow consumer groups to launch claims TOBIAS BUCK AND PATRICK MCGEE

s many as 2m German drivers of diesel cars are set to benefit from the introduction of a type of collective damages lawsuit as part of a push by the government in Berlin to bolster consumer rights. Volkswagen, which has admitted guilt and paid a $2.8bn criminal fine in the US for equipping cars with testcheating software, has long maintained that similar software used in 9m cars in Europe was not illegal. It has also offered technical fixes to make these cars compliant with European laws, whereas in the US such fixes were not available and VW was compelled to buy back hundreds of thousands of cars. The company’s stance is now set to be tested in its home market after the German government approved a draft law on Wednesday that would allow

consumer groups, automobile clubs and similar organisations to launch a “model” damages claim against companies on behalf of multiple individuals. It would be the closest legal tool Germany would have to a US-style class action lawsuit. Under current German law, such claims have to be made individually, typically putting consumers at a disadvantage when facing a large corporation. The new means of recourse would still require consumers to seek compensation individually but the model ruling would be binding in subsequent cases. Katarina Barley, the German justice minister, pointed to the diesel scandal that engulfed Volkswagen and other carmakers in recent years as a crucial example. “There are estimates that around 2m diesel drivers could benefit

from this new type of legal action,” she said in Berlin on Monday. Ms Barley said many claims were due to expire by limitation at the end of the year, adding that the looming deadline was one reason why the government had vowed to push the law through parliament as soon as possible. The minister said she expected the new legal tool to come into effect at the beginning of November. “It will not be the consumers themselves who will have to go to court. An association will go to court for them,” Ms Barley said. She described the new instrument as a “one-for-all” claim. Volkswagen said it supported “the effective enforcement of legitimate consumer rights” but said any planned collective action against VW did “not change the fact that there are no legitimate claims in Germany” because VW’s software did not break any law.

Energy stocks leap as US exit from Iran deal lifts oil prices Yield in 10-year Treasury auction falls short of 3% DAVE SHELLOCK

hat you need to know • Brent and WTI crude hit three-and-a-half-year highs • S&P 500 up 0.8%; energy sector gains 2.3% • Auction of 10-year Treasuries draws yield of 2.995% • Dollar index steadies after hitting 2018 high • Emerging market currencies stabilise after recent weakness • Turkish lira rallies amid talk of emergency rate rise Overview Energy stocks were standout gainers on both sides of the Atlantic as oil prices climbed to their highest levels since late 2014 in the aftermath of President Donald Trump’s decision to pull the US out of the Iran nuclear deal and reimpose sanctions on the country. The gains for oil stocks helped push the main US equity indices higher, although some observers sounded a note of caution as they highlighted the potential wider impact of Mr Trump’s actions. “Geopolitical risk will be a primary source of uncertainty for the foreseeable future,” said Paul Shea, strategic economist at Miller Tabak. “Rising oil prices, especially when

caused by tighter supply, are still a small drag on the US economy, perhaps worth 0.1 per cent of GDP growth. We are more worried about the higher risk of military conflict in the Middle East as a result of President Trump’s withdrawal from the Iranian nuclear deal.” Brent crude rose as high as $77.43 a barrel and US West Texas Intermediate hit $71.36, with further support coming from news of a bigger than forecast drop in US crude and gasoline inventories last week, helping the S&P 500 energy sector rise 1.9 per cent. European equity indices comfortably outperformed their US counterparts, most notably the FTSE 100 in London. Meanwhile, the dollar paused after reaching its highest level this year against a basket of peers. Several recently-battered emerging market currencies managed to stabilise, with the Turkish lira rallying off a record low amid talk of an emergency interest rate rise. But the Argentine peso weakened back towards Tuesday’s all-time trough despite the country’s request for International Monetary Fund aid. Sterling edged higher against the dollar as participants waited to see what signals the Bank of England might deliver after today’s Monetary

Policy Committee meeting. The pound has retreated sharply since the middle of last month as hopes for a rate rise at the May meeting faded away. The chief focus in the Treasury market was on the sale of $25bn in new 10-year paper. Despite widespread expectations for the auction to carry a 3 per cent-plus coupon for the first time in almost seven years, the notes sold at 2.995 per cent — still the highest yield since January 2014, according to Reuters data. Commodities Brent oil was last trading at $77.00 a barrel, 2.9 per cent higher on the day, and up nearly 25 per cent from the intraday low below $62 it hit in mid-February. US West Texas Intermediate was 3.2 per cent higher on Wednesday at $71.25. Gold failed to take advantage of the dollar’s softness, with the metal down $1 at $1,312 an ounce. Forex The dollar index slipped back after earlier reaching its highest level since late December. The gauge was down 0.1 per cent at 93.04, with the euro flat at $1.1860 and the greenback 0.5 per cent stronger versus the yen at ¥109.66. Sterling was up 0.1 per cent at $1.3562.

BUSINESS DAY

Friday 11 May 2018

Live @ The Stock Exchange Top Gainers/Losers as at Thursday 10 May 2018 GAINERS Company

Market Statistics as at Thursday 10 May 2018

LOSERS Opening

Closing

Change

Opening

Closing

Change

N81

N85.05

4.05

SEPLAT

N750

N725

-25

CCNN

N24.6

N27.05

2.45

DANGCEM

N248

N245

-3

CAP

N37.1

N38.9

1.8

N40.85

N40

-0.85

MRS

N28.35

N29.75

1.4

NASCON

N21

N20.4

-0.6

N27.5

N27.95

0.45

GUARANTY

N45

N44.5

-0.5

OKOMUOIL

ZENITHBANK

Company

ASI (Points)

40,914.94

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

3,804.00 244,924,308.00 4.096 14.820

Jaiz Bank assures on sustainable growth Stories by Iheanyi Nwachukwu

he management of Jaiz Bank at the Nigerian Stock Exchange (NSE) outlined the five-year growth plan of the pioneer noninterest bank, with an assurance that it will sustain year-on-year growth over the next five years. Managing Director, Jaiz Bank Plc, Hassan Usman, said overall vision of the bank is to become the leading non-interest financial institution in Sub Saharan Africa. He said the bank has been positioned to sustain its growth trajectory, pointing out that the bank has the necessary resources to achieve its growth targets. According to the fiveyear financial forecast, total income is expected to be about N81.17 billion while profit after tax is projected at N11.09 billion for the five-year period. Gross income is expected to rise to N10.07 billion in 2018 and subsequently to N12.59 billion, N15.73 billion, N19.27 billion and N23.51 billion in 2019, 2020, 2021 and 2022 respectively. Profit before tax is projected to rise to N1.33 billion in 2018 and grow consecutively to N2.03 billion, N3.01

Hassan Usman, managing director, Jaiz Bank Plc

billion, N43.03 billion and N5.47 billion in 2019, 2020, 2021 and 2022 respectively. After taxes, net profit will rise to N927 million in 2018 and grow further to N1.42 billion in 2019. Profit after tax is projected to jump to N2.11 billion in 2020 and rise consecutively to N2.82 billion and N3.83 billion in 2021 and 2022 respectively. Balance sheet of the bank is also expected to increase over the years. Total assets is projected at N123.61 billion in 2018 and subsequently to N150.5 bil-

lion, N182.6 billion, N220.02 billion and N262.80 billion in 2019, 2020, 2021 and 2022 respectively. Deposit is projected to rise consecutively to N88.55 billion, N113.34 billion, N142.81 billion, N177.09 billion and N216.05 billion in 2018, 2019, 2020, 2021 and 2022 respectively. Shareholders’ fund is projected to rise to N28.6 billion in 2018 and grow consecutively to peak at N35.23 billion by 2022. Shareholders’ return is also expected to grow over the years. Return on equity is expected to firm up to 4.39

per cent in 2018 and improve consecutively to 4.87 per cent, 6.92 per cent, 8.79 per cent and 11.22 per cent in 2019, 2020, 2021 and 2022 respectively. Usman said the bank’s growth strategy of focussing on the real sector, though painstaking, will ensure sustainable growth and better returns over the years. According to him, Jaiz Bank wants to develop small and medium enterprises (SMEs), grow with them and support them not only for profit making but to ensure the country achieves real growth. He said the bank would soon start to disburse $20 million financial lifeline to SMEs as part of the commitments of the bank to drive the growth of the real sector of the economy. Jaiz Bank and Islamic Corporation for the Development of Private Sector (ICD), the development arm of Islamic Development Bank (IDB), had recently signed a $20 million line of agreement to finance SMEs in Nigeria. “We shall continue to internally develop new customers, new markets and new product for both our physical and virtual channels. We remain committed to continuous up-scaling of

AXA Mansard shareholders approve N630m final dividend

he shareholders of AXA Mansard Insurance Plc approved a total dividend of N630 million for the year ended December 31, 2017. The shareholders gave their approval on Thursday at the company’s 26th Annual General Meeting (AGM) held in Lagos. The approved dividend of N630 million represents six kobo per share. At the AGM, the shareholders applauded the company for not incurring any penalty or fine during the year and for prompt settlement of claims. They also urged the company to embark on expansion and roll out new products that will boost

the company revenue and profitability, saying that the company should ensure its subsidiaries contribute to the Group. Addressing the shareholders, the chairman of the company, Olusola Adeeyo stated that the company closed the year with positive results despite the slow recovery of the economy. Reviewing the year, he

stated that “We grew Gross Premium by 30 per cent to N26.8 billion, from N20.7 billion in 2016, driven by the sustained growth of our health business as well as large ticket property and causality transactions. “Net premium income also grew by 26 per cent to N13.8 billion from N10.9 billion in 2016. While we experienced some large claims on our portfolios during the

year, we were able to make significant recoveries aided by our strong risk focused reinsurance strategy.” He noted that “although profitability was affected by claims and interest rate impacts on our life reserves, we were still able to grow profit before tax to N3.2 billion in 2017, from N3.1 billion in 2016 and profit after tax to N2.7 billion from N2.6 billion.” According to Adeeyo, the company’s balance sheet remained strong in 2017, with total assets amounting to N66.5 billion by year end and the shareholders’ funds grew by 17 per cent year-on-year to N20.3 billion, remaining well in excess of regulatory requirements.

our governance mechanism to meet the highest operating standards. Cost efficiency is at the heart of our value creation model. We shall strive to be a low cost operator,” Usman said. He noted that while the bank would continue to expand its operations across the country by opening more branches, it will significantly leverage on technology to reach the nooks and crannies of the country and bring the semi-banked and unbanked population into the formal economy. Jaiz Bank had recorded significant growths in key performance indicators in 2017 with the Islamic bank making an average of a double of previous profit on every unit of transaction during the period. Key extracts of the audited report and accounts of Jaiz Bank for the year ended December 31, 2017 showed that pre-tax profit-marginwhich measures the underlining profitability of the company- doubled from 5.5 per cent in 2016 to 11 per cent in 2017. The pretax profit margin denotes the efficiency of the core operational and administrative cost management, and it is usually taken as a more definitive index of performance than top-line margins.

The report indicated a well-rounded performance as gross earnings rose by 40 per cent from N6.18 billion in 2016 to N8.10 billion in 2017. Gross profit grew by 34 per cent to N6.705 billion in 2017 as against N5.003 billion in 2016. Profit before tax jumped by 160.6 per cent from N343.02 million in 2016 to N894.01 million in 2017. However, the bank’s tax provision leapt by 1,024 per cent from N31.75 million in 2016 to N356.89 million in 2017. This moderated the net profit growth to 14.7 per cent from N311.27 million in 2016 to N356.89 million in 2017. Chief Executive Officer, Nigerian Stock Exchange (NSE), Oscar Onyema, said Jaiz Bank has demonstrated ability to grow sustainably, urging the bank to continue to uphold high corporate governance. Doyen of Stockbrokers, Sam Ndata, commended Jaiz Bank for continuing to keep investors up-to-date on its operations. Former president of Chartered Institute of Stockbrokers (CIS) and Vice Chairman/Chief Executive Officer, Capital Assets Limited, Ariyo Olushekun also commended the management of the bank for its commitments to sound corporate practices.

IOSCO annual conference focuses on key challenges facing securities regulators

embers of the International Organization of Securities Commissions (IOSCO) met at the organization´s 43rdAnnual Conference in Budapest this week to discuss and address issues facing securities market regulators and supervisors today. In their meetings, the IOSCO Board, IOSCO´s Growth and Emerging Markets (GEM) Committee, the four Regional Committees and the Affiliate Members Consultative Committee (AMCC) advanced their initiatives aimed at protecting investors, ensuring fair, efficient and transparent

markets, and mitigating systemic risk. The public sessions of the conference opened today and focus on four key issues: (1) the sale of unsuitable products to retail investors; (2) the challenges of Fintech and digitalization, (3) the shift from active to passively managed collective investment schemes, and (4) SME access to funding through capital markets. The Magyar Nemzeti Bank, the Hungarian central bank, hosted the 2018 Annual Conference, which has attracted some 650 securities regulators, industry representatives and other financial market participants from around the world.

Friday 11 May 2018

BUSINESS DAY

Friday 11 May 2018

Live @ the Stock exchange

Prices for Securities Traded as of Thursday 10 May 2018 Company

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PRICES FOR MAIN BOARD SECURITIES (Equities)

Price (N)

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BUSINESS DAY

C002D5556

NEWS YOU CAN TRUST I FRIDAY 11 MAY 2018

Opinion THE NEW WEALTH OF NATIONS

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

he Italian Marxist political philosopher Antonio Gramsci was one of the most original thinkers of the twentieth century. I admire his freshness of approach and his critical spirit in approaching issues of domination and power in world politics. Gramsci invented the notion of “hegemonia” (hegemony) to explain the structure and anatomy of domination in political

Genocide, hegemony and power in Nigeria society. He identified varying forms of domination economy, culture and politics. According to him, dominant elites manipulate capital, political power, ideas, information and knowledge to consolidate their stranglehold on society. Hegemony can be so effective that the people dominated begin to accept their fate as a part of the natural order and the best of all possible worlds. I find this concept of hegemony so relevant with what is going on in relation to the genocide being perpetrated by the Fulani militias in the Middle Belt of our country today. Historians the world over agree that the original home of the Fulani people is Futa Jallon (also known in the French as Fouta Djallon) in the Upper Guinea highlands of the West African Republic of Guinea. Also known as Fula, Fulbe or Pullo, the Fulani are thought to have emigrated from North Africa and the Middle East in ancient times, settling in the Futa Jallon Mountains and intermarrying with the local population and creating a unique ethnic identity based on cultural and biological miscegenation. Futa Jallon is also the source of the great River Niger that undulates a vast region of our beloved West Africa; traversing over 4,000 km. It is a region of great beauty, with a near-temperate

What the peoples of the Middle Belt today face is a tragedy that can best be described as genocide. Fulani militias in their thousands have been rampaging across the primeval savannah, killing, pillaging and burning down entire villages climate. It has been described by a European visitor as “the Switzerland of Africa”. The Malian writer and ethnologist Amadou Hampaté Ba famously described Futa Jallon as “the Tibet of West Africa”, on account of its surfeit of Muslim clerics, Sufi mystics, itinerant students and preachers. The second traditional home of the Fulani is Futa Toro, by the banks of the Senegal River in the current nation of Senegal. Over the centuries the Fulani converted to Islam and some of them

became zealous Muslim clerics and itinerant proselytisers. Through war and conquest they formed several kingdoms, among them Tukolor, Massina, the Caliphate of Usman Dan Fodio and Fombina in the early nineteenth century. Today, the Fulani number about 20 million worldwide. They are spread all over West and central Africa, particularly Guinea, Nigeria, Mali, Senegal, Ghana, Niger, Sudan, Chad, Mauritania, Guinea-Bissau, Cameroon, Burkina Faso and The Gambia. Their population is between 7 and 8 million in their original homeland in Guinea. The Fulani are the world’s largest single pastoral ethnic community, ahead of the Maasai of Kenya and Tanzania and the Karamajong of Uganda. Out of their population of 20 million, a third are pastoralists while the rest are settled, sedentary communities consisting of farmers, traders, artisanal craftsmen and Muslim clerics. The Fulani who once enjoyed great political power as founders of empires are today largely powerless. Despite the fact that they constitute the single largest ethnic majority in their original homeland of Guinea, they have never enjoyed political power in that country. The Continues on page 35

Donald Trump declares trade war on China No sovereign power could accept the humiliating demands being made by the US

MARTIN WOLF Wolf is the Chief Economics Commentator of The Financial Times.

agrees to abide by US export control laws.” Moreover, China will withdraw requests for World Trade Organization consultations relating to tariff actions on intellectual property. “In addition, China will not take any retaliatory action . . . in response to actions taken or to be taken by the US, including any new US restrictions . . . China immediately will cease all retaliatory actions currently being pursued.” China “will not oppose, challenge, or . . . retaliate against US imposition of restrictions on investments from China in sensitive US technology sectors or sectors critical to US national security”. But “US investors in China must be afforded fair, effective and non-discriminatory market access and treatment, including removal of . . . foreign investment restrictions and foreign ownership/shareholding requirements”. By July 1 2020, China will reduce tariffs in “non-critical sectors to levels that are no higher than” equivalent US tariffs. It will also open access to services and farm products as the US specifies. The agreement is to be monitored quarterly. Should the US conclude that China is not in compliance, it may impose tariffs or import restrictions. China “will not oppose, challenge or take any form of action against” any such US impositions. China will also withdraw its WTO complaint that it is not being treated as a market economy. What is to be made of these demands? The call for a reduction of the bilateral deficits by $200bn (up from $100bn) is ridiculous. It would require the Chinese state to take control over the economy

— precisely what, in other respects, the US demands it not do. It is a violation of the principles of non-discrimination, multilateralism and market-conformity that underpin the trading system the US created. It should be ashamed of itself. It ignores the overwhelming probability that this will not reduce overall US deficits, particularly given US fiscal irresponsibility. It ignores the inevitable adverse effects on third countries. The demand that China have exactly the same tariffs as the US is almost as ridiculous. There is no economic case for such a policy. It would be far more reasonable to demand that it move towards the same average tariff as the US or EU. A serious discussion should indeed be had on the terms of foreign investment in China and Chinese investment in the US. So, too, must there be a discussion of intellectual property protection and cyber-espionage. But China could never accept the idea that the US may prevent it from upgrading its technology. The notion that the US may insist on unrestricted access for investment in China while reserving the right to restrict Chinese investment, as it wishes, must also be unacceptable. Finally, the idea that the US will be judge, jury and executioner, while China will be deprived of the rights to retaliate or seek recourse to the WTO is crazy. No great sovereign power could accept such a humiliation. For China, it would be a modern version of the “unequal treaties” of the 19th century. The Americans seem sure they can

force the Chinese to sue for terms, however foolish and humiliating these are. China would indeed be hurt more by a tit-for-tat tariff war than the US. This is because its exports to the US dwarf those from the US to China. A recent analysis from the Hoover Institution suggests that China’s economic growth might be reduced by 0.3 percentage points in a tariff war. That is far more costly than to the US, but it would be survivable for an economy as dynamic as China’s. To China’s leaders, such costs would be dwarfed by those of abject surrender. Both economically and politically, the US is going about this in the wrong way, not only because it is seeking to humiliate China, but because it is simultaneously waging commercial war on its potential allies. The right path for everybody would be to make the discussion multilateral, not narrowly bilateral. China should recognise that, though still a developing country in some respects, it is also a superpower. It should embrace the principles of rulesgoverned openness and liberal trade. A renewal of the lapsed multilateral trade negotiation, built around opening up the Chinese economy, could, as the Chinese say, be a “win-win” for everybody. China should take the lead. The Europeans and Japanese should support the idea. Americans who are better aware of the national interest than the administration need to understand that the US will find itself on its own if it seeks conflict. That is what must happen when a leader turns into a self-regarding bully.

Published by BusinessDAY Media Ltd., The Brook, 6 Point Road, GRA, Apapa, Lagos. Ghana Office: Business Day Ghana Ltd; ABC Junction, near Guinness Ghana Limited, Achimota – Accra, Ghana. Tel: +233243226596: email: mail@businessdayonline.com Advert Hotline: 08116759801, 08082496194. Subscriptions 01-2950687, 07045792677. Newsroom: 08169609331 Editor: Anthony Osae-Brown. All correspondence to BusinessDAY Media Ltd., Box 1002, Festac Lagos. ISSN 1595 - 8590.

WOMEN’S HUB Friday 11 May 2018

2nd annual World Maternal Mental Health Conference in Nigeria

1st year... Done and dusted – Osa

BUSINESS DAY

CODEINE IN FOCUS

4 female medics speak on drug abuse

WORKPLACE PALAVER

Belinda needs to focus or else, she might lose her job

The rise and rise of

OGE MODIE

Chief of Staff to the Honourable Minister of State, Petroleum Resources

EDITOR’S NOTE

elcome to another interesting edition of WOMEN’S HUB this week. Our cover Personality who is also our LEADING WOMAN is the multi-tasking Chief of Staff to the Honourable Minister of State, Petroleum Resources and Coordinator of the Ministry of Petroleum Resources’ Project Management Office, Oge Modie. She has indeed come a long way and is every bit a woman of substance. The 2nd annual World Maternal Mental Health Conference in Nigeria organised by PSN Africa brought to the fore various challenges women experience, especially postpartum depression and how to recover from it. We share with you views of 4 female medics on drug abuse with codeine in focus. You will find this enlightening. In WORKPLACE PALAVER section, Belinda needs to focus or else, she might lose her job. Find out why. These and more we have for you this week. Enjoy!

KEMI AJUMOBI kemi@businessdayonline.com

Graphics by David Ogar

Leading Woman

Friday 11 May 2018

BUSINESS DAY

WOMEN’S HUB

The rise and rise of

OGE MODIE Chief of Staff to the Honourable Minister of State, Petroleum Resources KEMI AJUMOBI Biography

ge doubles as both the Chief of Staff to the Honourable Minister of State, Petroleum Resources and Coordinator of the Ministry of Petroleum Resources’ Project Management Office, charged with the implementation and provision of leadership direction for the 7 Big Wins – Nigerian Petroleum Roadmap of the Ministry which focuses on short and medium term priorities to grow Nigeria’s Oil and Gas industry. Oge earned a Bachelor of Science with honors in Economics from University of Nigeria Nsukka (UNN). She attended the Cranfield School of Management where she was awarded a Master of Business Administration degree. She is the founder of a youth capacity building organisation called Kairos Knowledge Centre and also founder of First Born Foundation. She is a member of ESOMAR World Research (Netherlands), a Distinguished Honorary Fellow of the Institute of Brand Management of Nigeria (FIBN) and a Fellow of the Institute of Credit Administration of Nigeria (FICA). Early years and influence till date I was born in Ibadan on the 12th of January, and my most intimate childhood memories were shaped growing up in Enugu, Nigeria. Growing up for me was a fun and great experience. My upbringing was well fashioned by parents, who were astute professionals and devout Christians, their values shaped my thinking and values. Last out of five kids, I was a late bloomer to my parents and was mainly at home whilst my siblings were in boarding schools and in University. Dad (God rest his soul) was my best friend and mentor, retired as the Associate Dean School of Medicine at the University of Nigeria, Enugu Campus, he played a vital role in cheering me on my chosen career path, he was a positive influence and taught me the important lessons of hard work and integrity. Mum who retired as the Chief Nursing Administrator at the University of Nigeria Teaching Hospital, Enugu was a woman of great strength and ambition. She taught me tenacity, boldness (standing up for your beliefs) and administration. Transitioning from NOI to NNPC The transition was quick, exciting and challenging. It was just the kind of growth I needed at that time of my career. I was headhunted from my role as MD/CEO NOIPolls (a pioneer opinion research company) and had only about a week to make a decision and move to NNPC. New and uncharted for me, I was hungry for knowledge. My role as the Chief of Staff (CoS) to the GMD revolved largely around leading teams, managing institutional change and coordinating every activity in the GMD’s office, later about three months later this role doubled as the CoS to the GMD/Honorable Minister of State for Petroleum. The Public sector isn’t radically different from the Private sector, navigating my first year was helped mostly by a great team in NNPC that were absolutely supportive and mentors that encouraged me to be my very best at this new territory and to own it. Transiting required me to work extra hard, I took lessons on the global and local petroleum industry, I once went to meet with a former CoS to the President of SaudiAramco to understudy and exchange notes about the job and its challenges. The CoS role was new to NNPC. I have been first person and woman to have this role at NNPC, so I basically had to define the role and execute clear responsibilities. It was tough but exciting. I must also say that my previous roles over the years in Management Consulting, Corporate Finance, Private Equity and then Opinion Research also helped immensely in transiting as core business and general management principles apply. Counting into my third year, there is still much to learn and to do. Managing being both the Chief of Staff at the Ministry of Petroleum Resources’ and the Coordinator of its Project Management Office It has been a roller coaster of deliverables both on the job and outside the job. To succeed in any given role, the value of leading a team cannot be over emphasized. My job roles demand an excellent level of both servant leadership and transformational leadership. Aside managing people and ensuring that targets and deliveries are not only met but exceeded, I also ensure to help my team members to not only discover their greatest strengths

but also to confidently bring these strengths to the table. That way, we all succeed not only because the job demands it but also the necessary ingredient of self-motivation is assured for everyone. Ensuring integrity and probity in the energy sector within and outside Nigeria Integrity and probity have been issues of great concern to Stakeholders in the sector. Reforming the sector and establishing the right policies help with showing integrity and probity in the sector. The 7 Big wins (www.7bigwins.com) Petroleum Road Map was designed to do this. Also, the restructuring of NNPC through the 21 Fixes now integrated into the 10 Business Focus Areas is concentrated on making the Corporation transparent and commercially viable. A clear example of en-

suring probity in the sector was the commencement of the publishing of the Monthly Financial and Operation report of the Nigerian National Petroleum Corporation (NNPC), initiated by the current Honourable Minister of State, Petroleum Resources, when he was still the Group Managing Director (GMD) in August 2015 and still ongoing. We have developed processes that have seen the need for integrity and probity in the energy sector to move from mere words to tangible and actionable elements. I personally believe that the three-pronged personal attributes of character, competence and capacity when intentionally embraced by the players in the energy sector will improve the existing gains and herald even new frontiers.

The short and medium term priorities to grow Nigeria’s Oil and Gas industry The 7 Big Wins embodies a set of aspirations to grow the Nigerian Oil & Gas Industry, aimed at developing a stable and enabling oil and gas landscape with improved transparency, efficiency, stable investment climate, and a well-protected environment. The 7BigWins was launched by President Muhammadu Buhari, GCFR on the 27th of October, 2016 in recognition of the critical role of oil and gas in the development of the Nigerian economy. The 7BigWins has seven major areas of focus including Policy and Regulation, Business Environment and Investment Drive, Gas

Revolution, Refineries and Local Production Capacity, Niger Delta and Security, Transparency & Efficiency and Stakeholder Management and International Coordination. We have made key successes in each of these 7 areas- The National Oil Policy and the National Gas Policy has been approved by the Federal Executive Council and has now been gazetted. The peace building activities in the Niger Delta region has led to stabilizing production in the area and moving from a low of 800,000bpd in November 2016 to 2.1mbpd in May 2018. More results on the implementation of the 7 BigWins can be found on the website. Though rich in oil, must Nigeria only focus on this for wealth generation? What are your suggestions? As an Economist, I believe that focusing on a single item for wealth generation is economically unstable. The most economically viable Nations are known to have multiple wealth generation streams with more Nations moving towards the knowledge economy. Diversification is the way to go and I believe that is the focus of the Government. You sit on boards that have women and youths as its core purpose. Kindly share on reasons for your choice of association I worked as a fund director and helped to generate interest in investing in women owned/managed SMEs across West Africa. I just have that in-born passion to see women succeed in their chosen careers and most importantly, in their places of assignment and purpose. I have a core ministry of mentoring young people and I am quite deliberate in my associations to ensure that the focus is consistent. I believe that young people are the catalyst for any real change. Kairos Knowledge Centre and First Born Foundation The Kairos Knowledge Centre and First Born Foundation are projects that are very dear to my heart. They are in their very early stages of existence. For Kairos Knowledge Centre; the word “Kairos” means- timely, opportune moments in our lives where anything is achievable, everything is doable. This Knowledge Centre has as its mission, to daily create ‘Kairos’ moments for the Nigerian Youth

through specialised courses and interventions. The Centre has three (3) key units: which comprises of the Youth Centre, Training School and Library. First Born Foundation is focused on bringing souls to the knowledge of Jesus, the firstborn of the church and our mission statement is to daily contribute to the overall wellbeing of individuals through our three core activities, namely; Instruments of PeaceTM: Arbitration within three units: Family, Community, Country. The second is TentsTM: Providing temporary shelters for homeless and vulnerable poor, soup kitchen and skills workshops and the final one is WellsTM: provision of seed/growth fund for MSMEs and also serves as a business incubator, youth outreach centre and entrepreneurial development hub. Final words Women are gold. I believe more women should aspire to political office.

BUSINESS DAY

WOMEN’S HUB

Friday 11 May 2018

World Maternal Mental Health Conference

Looking beyond the stigma KEMI AJUMOBI

Against All Odds

precautions, but I don’t feel TAINTED, and that’s huge for me. I’ve disclosed to more people than I expected to at first. It’s getting easier as time passes, as I can explain that I’m okay

and doing well on meds. My relationship with my partner is strong, my kids are healthy, and I have a supportive and loving group of family and friends. I’m blessed! -Avert

CMYK

Imposition Studio 5.1.1

BUSINESS DAY

From Her Point Of View

Friday 11 May 2018

CODEINE IN FOCUS

WOMEN’S HUB

Female Medics speak on drug abuse

he Federal Government’s ban of production of cough syrups containing codeine in Nigeria is a good start. The onus is now on all of us to police the outlets and report non-compliance. There are many who argue that this is a solution. However, putting in our context and the magnitude of the problem, it is necessary. At least to break the cycle.

All through my training in the UK as a Paediatrician, not once did I prescribe or see cough syrup in the hospital. Cough is a symptom. You treat the cause. So what’s the use? None! The BBC documentary further exposes the complicity of Pharmaceutical companies. Well done to all the advocates and the Honorable Minister of Health, Professor Isaac Adewole.

SYLVIA COLE Consultant Anaesthetist

Does the dose of codeine really matter? Answer:Yes it does

will like to look at the ban of codeine from a different angle. Looking at the effect it will have in Nigeria, I will take only one slant, it needs to be available for nursing mothers who need pain relief when they are nursing their babies in and out of hospitals. I say so because a local study needs to be done on how it affects our local communities and our different tribes, then we can adjust the dose to fit the different tribes. Take for instance the findings following the incidences with codeine intoxication associated with ultra rapid CYP2D6 metabolism; breastfeeding mothers were given 2 tablets of co codamol 8/500 instead of 30/500 regularly for pain relief on our unit. This study aimed to determine whether the dose of codeine made any difference to the intensity

of pain felt. A secondary aim was to determine if multimodal therapy also reduced pain felt. The method used was a prospective observational study of 174 parturient caesarean section deliveries with neuraxial anaesthesia conducted. All the patients received diamorphine 300-400mirograms in their spinal or diamorphine 1-3mg in their epidural top up. They were all prescribed regular co codamol dose adjusted if breastfeeding and diclofenac unless contraindicated. The patients were followed up post operatively. Factors assessed were regularity of analgesia, worst pain felt since operation, requirement of morphine, whether pain affected care of baby. The result was that150 patients received spinal anaesthesia while MAYMUNAH YUSUF KADIRI Medical Director, Pinnacle Medical Services Consultant Psychiatrist

he rate of drug abuse is increasing and this is very alarming. Here are some of the reasons why our youths abuse these substances: To fit in: Many teens use drugs “because others are doing it”’ or they think others are doing it. To feel good: Abused drugs interact with the neurochemistry of the brain to produce feelings of pleasure. To feel better: Some adolescents suffer from depression, social anxiety, stress-related disorders, and physical pain. Using drugs may be an attempt to lessen these feelings of

24 had their epidurals topped up. In the breastfeeding group (BF)(n=90) 71.11% had mild pain, 23.33% moderate pain and 5.56% severe pain. In the non-breastfeeding group (NBF) (n=84) 78.57% had mild pain, 17.85% moderate pain and 3.57% severe pain. 83.33% of all patients received regular co codamol. In the BF group reporting mild pain 76.71% of patients received regular co codamol while 54.79% of the patients received regular co codamol and diclofenac while in the NBF group reporting 74.24% received regular co codamol and 53.03% received regular co codamol and diclofenac. The conclusion was that the findings identify that the dose of codeine did matter and that multimodal analgesic therapy reduced the intensity of pain felt.

distress. To do better: Some adolescents may turn to certain drugs like illegal or prescription stimulants because they think those substances will enhance or improve their performance. To experiment: Adolescents are often motivated to seek new experiences, particularly those they perceive as thrilling or daring. Recently, @bbcafrica crew went undercover to review the epidemic of codeine cough syrup among our youths in Nigeria. The role the different sectors, families, schools, religious organisations, media houses, social media, policy makers, government, law enforcement agencies, and so on play is key to this time bomb waiting to explode.. What’s your role in fighting drug abuse in your community? What is our government doing to help curb this issue?

ZAINAB SHINKAFI BAGUDU

Her Excellency, The First Lady Of Kebbi State Consultant Paediatrician

he use of cocaine, tramadol, codeine, dexamethasone, marijuana, and other types of mind altering substances have a far more negative effect than it seem on the surface. Many of those engaged in such practices will not only have their lives’ dreams cut short, they also become less contributory to the society. A man who is degraded due to hard drugs will of course be unable to add value to the society. Hard drugs cause a number of vices, including armed robbery, kidnapping, raping, prostitution, and even health challenges like madness. There is also a high risk of liver and kidney diseases, including cancer, and other terminal illnesses. Sometimes when these youths approach a pharmacy for the drugs and they are rejected, they simply

ABIOLA PAUL-OZIEH

Immediate Past Chairman of the Association of Community Pharmacists of Nigeria, Lagos State branch

go to another shop (most often quacks) and buy them. So it’s becoming too easy to get these drugs. Codeine, tramadol, rehypnol, are becoming too easy for them to get. When people are not accessible to drugs, it will be easily controlled. As long as we have the open drug market places, as long as people walk into anywhere, hawk drugs, we will always have issues with drug abuse. You can imagine how many times closure of open drug market has been postponed; now we are saying by December it will be totally out. We are praying it will happen. It is left for stakeholders to see how we can get rid of uncoordinated system of drug distribution and install a sane distribution system where people can get drugs that are documented and can even be traced to the last user of the medicines.

BUSINESS DAY

Workplace Palaver

Friday 11 May 2018

Focus Belinda…Focus!

WOMEN’S HUB

KEMI AJUMOBI

elinda works in YumYum Creamy Delight and they are known for making delicious pastries and cakes. They are always busy and are usually booked back-to-back. Belinda is at the reception area, receiving calls, delivering packed cakes to clients who come to pick their cakes and despite often being under pressure, there had never been a mix up in her 4 years of working there until the 19th of September 2017. Dele Williams had called in to order for a chocolate cake with chocolate cream for his birthday. He intended to share with his staff. There were only 5 in number and the business was barely a year old so he wasn’t expecting anything from his staff. His order was taken but to his surprise, when the cake was delivered, it was a red velvet cake decorated in pink. “The lady I spoke to on phone… uhmm Belinda…yeah, that’s her name…I remember. She sounded bright and brilliant. I was so sure she got the details I requested for, but to see a cake decorated in pink? Now that is sooo off the line” Dele thought to himself. He had to find a way to get over it so his day would not be ruined. “Patricia!” he called out to his secretary and when she came in he said “It’s my birthday today, please cut this cake and share with the others. Make sure it gets to my driver and the gateman too.” He said “Ok sir, will do just that” she responded. Four days later, he drove by YumYum Creamy Delight and decided to buy a few pastries. As he walked in, he saw a lady peeved and shouting at Belinda “Belinda or whatever you say your name is, if you are tired of this job please take a break, when I called, I requested for carrot cake. The only reason I decided to come pick it by myself

is because I knew I was going to drive along this route. So if I had sent my driver, he would have brought this to me? Then receiving it back would have been an issue for you. Please, I need my money now! I do not want the cake anymore; this is not what I requested”. The lady expressed angrily. Belinda was in between trying to calm her down and looking around to ensure her superiors were not listening and were not in any way close. Her eyes were teary and she was jittery. She kept apologising to the woman but it felt like the more she apologised, the more the situation escalated. Seeing all that happened, Dele knew if something wasn’t done fast, someone was going to be in trouble…someone who certainly messed up his own order too. He walked to where both of them were, looked at Belinda and asked, “How much is her money?” Belinda was shocked; she wasn’t sure what was happening. A quick thought came to her mind “could this be a relative of any

of my superiors? My God! I am finished” she thought to herself but knew she also had only a few minutes to respond fast to the situation. So she thought to herself again “Whether he is a relative of my superiors or not, I better respond fast, this woman isn’t leaving here without her money and I do not need more scenes” she thought briefly so she responded, “It’s N25, 000 sir”. Dele brought out his phone and asked the woman for her account details. She gave him and he responded “Good! It’s a Diamond Bank Account, I have an account with them too, you will get the transfer real quick”. As he was punching the figures in, one of Belinda’s superiors came by and asked if everything was ok and Belinda responded quickly “Yes ma, everything is fine”. Immediately her superior left, all she could say was “Whew! That was close”. The woman confirmed she received the alert in her Diamond Bank account and thanked Dele. She walked out of the place and without saying a word to Belinda, Dele moved to the other room

where the pastries were sold. Belinda became more confused. “What just happened? Okay… he just paid off someone who almost cut my head, he left without saying a word, is he a human being? Is he an angel?” she thought to herself. As she attempted to run after him, another client came and she had to attend to the client. She made up her mind that no matter what happened, when leaving the building after buying his pastries, she was going to run after him to say thank you. Dele was done with buying his pastries, he walked out of the building briskly but Belinda wasn’t going to let him go without reaching out to say thank you. As he was about to open the door, Belinda had met up with him “I am so so grateful sir, I do not even know you and you decided to help me. God bless you, provide for you, enlarge your coast, meet your needs, supply all your…” “AMEN! Pastor Belinda, AMEN!!!” Dele interjected without allowing her to continue and added “can we take the ‘offering’ now? Or isn’t that what

normally happens after sermons and a lengthy prayer like yours?” He teased. “You surely have a good sense of humour sir…plus a generous heart I must add” Belinda said. “You are welcome Belinda. Truth is, you did same for me, you sent me a wrong cake too on my birthday but had to find a way around it. I came here to lay a complain about it and also to buy some pastries and I found someone else complaining about the same thing with the same person. Please try your best to concentrate and if stressed, ensure your superiors know so you can take a break and rest okay?” Dele said and Belinda took all he said and promised to do as he advised. She has been very cautious at work since then. She wasn’t going to let it happen ever again “Not everyone is going to be like Mr. Dele. I have been ‘beaten’ twice, there will certainly be no third” she thought to herself. So far, Belinda hasn’t had another occurrence. She is learning to be efficient at work but cautious in deeds.

The social activities were ever so abundant. Hall week this, department week that, and to crown it all, dinners. After all, all work and no play make Jack a dull boy. But let’s remember that Jack doesn’t play all day. A typical Nigerian parent would say “I sent you to school to read your books, not to be pressing phone”. Everyone should have a social life however, we should be able to balance between work and play. Truly, it was tough choosing elective courses seeing that we were clueless of who the lecturers were or what the courses entailed. Our fate lied in our predecessors who were able to fill us in on what and what not to do. Gradually, we got used to the system and even got tired of being called freshers. As for independence, I learnt to discipline myself as regards spending, setting priorities and just being who I wanted to be and not what others wanted to see. So,

working and living with others eventually became a norm. Final exams came and they’re gone. In our minds, we were feeling fly and proud to move from the status of a fresher to a ‘stallite’. Our predecessors decided to burst our bubble by telling us our first year was just baby steps and I kept wandering how my 7am classes,10-15 paged term papers and jumping from one tutorial to another were baby steps. Although I still have 3 years ahead, I can’t but remember tailing on lecturers to sign course form, meeting seniors to know which courses would favour our GPA, the fear of being locked or sent out of class for coming late, having classes back to back and the aroma of Klazz Restaurant never ceasing to remind our stomachs of their delicacies. Now that I actually think of it, it brings a smile to my face. Resumption is here and as for the incoming freshmen, I’ll be

ever ready to inform them about the ‘baby steps’ they are going to be taking. Walking into university now as a stallite brings back some

nostalgia and will still bring with it some changes but we’ll survive; I was born to survive. Done with the first, on to the next!

1st year... Done and dusted

arly 2017 the journey started. The journey of 4 years, 8 semesters, months of higher education. The electricity of anticipation to resume was common among the ‘Freshers’. Beginning from the clearance and registrations to fresher’s welcome here and there to medicals and eventually classes. The scent of university life, hostel living and independence lingered pungently in the air. For me, it was a great deal acclimatizing with the new environment. As my mother would say ‘university is a jungle’. One in which you meet different kinds of people and characters and sometimes people say your university friends are the ones you keep the longest. Hostel life indeed showed me different characters and the occasional drama never ceased to draw crowds. Although some people proved difficult to live with, I was always surrounded by friends turned sisters.

OSARENNOMA A. OGBEIDE 200level Psychology student

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ANALYSIS

ADIDAS SALES DECLINE AS WORLD CUP DATE APPROACHES Stories by Anthony Nlebem

eading sports merchandising outfit Adidas fears a decline in sports products sales during the FIFA World Cup finals, starting in 34 days. The global sports goods manufacturing giants are worried about the feared decline in sales during the quadrennial football gala amid controversies and geo-political tensions surrounding the host nation. FIFA World Cup in Russia 2018 will feature 32 nations for the sport’s most coveted title. Kasper Rorsted, Chief Executive of the German multinational sports manufacturers Adidas in a recent interview on CNBC has confessed that they are expecting a commercially less strong world cup this year. Asked whether the ongoing geo-political tensions between Russia and other countries will result is sales slump especially after investing a huge chunk around World Cup, Rorsted said, “I think a normal football fan is less impacted by such tensions

and Russia will have a very strong show this world cup, but it will be commercially less strong world cup edition. “However, from the brand’s point of view, it is still going to be the most viewed event in the world of sports irrespective of where it is happening. We are still expecting strong performance from our 12 teams in Russia. Even though with less commercial upside, but brand wise, it will be a very strong experience for us in Russia and I hope Team Adidas wins the world cup.” In the first quarter, Adidas reported a strong double-digit growth in North America despite 6% slump in sports apparel sector and rivals Under Armour and Nike which saw no growth at all. The German brand has said that the online segment, North America, and China continue to be their key growth drivers with 27%, 23% and 26% growth in the respective seasons. Japan and South Korea remain slow-growth areas.

Editor: Anthony Nlebem Tel: +234 803 836 9508 Email: tony@businessdayonline.com

Adidas’ strong football market includes partnerships with FIFA, UEFA and their respective events FIFA World Cup, UEFA EURO 2012 and 2016, UEFA Champions League; national federations such as reigning FIFA World Cup champion Spain, Germany, Argentina, Russia, Mexico, Japan, Denmark, Greece; top leagues such as Major League Soccer in the USA); clubs (e.g. Real Madrid, AC Milan, Chelsea FC, FC Bayern Munich) and individual players (e.g. three-time FIFA World Player of the Year Lionel Messi, Xavi, Thomas Müller, David Villa, Nani, Robin van Persie and David Beckham). The build-up to 2018 edition of the World Cup has been marred by various controversies and countries taking a tough stance against Russia because of rising geo-political tension. The choice of Russia as a host nation has remained controversial since they last hosted the 2014 Winter Games at Sochi. Controversial issues have included the level of racism

Friday 11, May 2018

in Russian football, and discrimination against LGBT people in wider Russian society among several other issues. Russia’s involvement in the ongoing conflict in Ukraine has also caused calls for the tournament to be moved, particularly following the annexation of Crimea. In 2014, FIFA President Sepp Blatter stated that “The World Cup has been given and

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voted to Russia and we are going forward with our work”. The same stance has been followed by the current president Gianni Infantino. The host nation has also faced allegations of corruption in the bidding processes for the 2018 and 2022 World Cups caused threats from England’s Football Association has

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threatened to boycott the tournament after the allegations of corruption in the bidding processes for the 2018 and 2022 World Cups. The British PM in response to the March 2018 poisoning of Sergei and Yulia Skripal, has announced that no British Ministers or members of the royal family would attend the World Cup, and issued a warning to any travelling England fans. Sergei is a former Russian military officer and British spy who acted as a double agent for the UK’s intelligence services during the 1990’s and early 2000’s, until his arrest in December 2004. On March 4, 2018, he and his daughter Yulia were poisoned in Salisbury, England. Later in March, the British government accused Russia of attempted murder and announced a series of retributive measures against Russia, including the expulsion of diplomats. Country like Iceland, considered a friendly and politically neutral country for many years, has decided to diplomatically boycott the Russia-held 2018 FIFA World Cup. Adidas and Nike will be producing team jerseys of majority of qualified teams. Other manufacturers include Umbro, New Balance, Puma and Errea.

CAN SUPER EAGLES STOP CROATIANS MIDFIELD MAESTRO?

hile Croatia are not among the favourites for this year’s FIFA World Cup, they do have one clear and considerable area of strength, which is in the midfield department. Nigeria coach Gernot Rohr pinpointed it without hesitation, stressing that his Super Eagles must be set up in their opening match to combat “one of the best midfields” in the competition. Some have even suggested it will be the most formidable of all in Russia. Super Eagles will be up against these three Croatian midfielders; Barcelona Ivan Rakitic, Real Madrid duo of Luka Modric and Mateo Kovacic in the first game. But, Rohr recently stated that he doesn’t have star players who can turn a game on its head, but with team and tactical discipline, the Eagles can make a head way at the FIFA World Cup tournament starting next month. Rohr who has played three top notched friendlies with Argentina, Poland and Serbia said those matches have helped a lot in improving the team. ‘’In the team we are

working on improving all segments of the game, only if you have everything you need, you can succeed in today’s football. ‘’I said already, today I do not have a lot of stars, but we want to have a big team with a winning mentality, great discipline in the field and beyond, and a great deal of mutual solidarity and communion. This is the way to success.’’ The Super Eagles came from two goals down to beat Argentina 4-2 in Krasnodar last November before a hard-fought 1-0 win over Poland followed by a 2-0 loss to Serbia in London in March. ‘’Friendlies are completely different from the matches at the mundial. Friendly games are like an experiment in the lab, while matches in the World Cup are realistic, real life,’’ Rohr explained to Sportske Novosti. ‘’I do not bother too much of the victories and defeats in the preparatory games, we are focused on building the best teams for the World Cup.’’

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NEWS

‘ENGLAND VS NIGERIA MORE THAN A GAME’

he World Cup kicks off in thirty four days from today, and about 90 percent of the tickets to the FIFA World Cup matches have been sold, chairman of the tournament’s organizing committee Alexey Sorokin said. Sorokin was speaking at a meeting hosted in Sochi by Russian President Vladimir Putin on the state of preparation for the World Cup, business daily Vedomosti reported. According to Sorokin, fans have already purchased 2.374 million tickets to the 64 matches of the international football tournament, which accounts for 89 percent of all available tickets. “We can already predict that we will have full stands at each match of the World Cup,” Sorokin said. Russian fans acquired 46 percent of the tickets, while foreign fans have a 54 percent share. Among the foreigners, fans from the United States, China, Colombia, Mexico and Argentina have bought up the most tickets. This is despite the U.S. and Chinese national teams failing to qualify for the tournament. The last phase of ticket sales began on April 18 and will continue through to the tournament final on July 15. Fans were given the option of buying tickets in person when ticket offices opened in the 11 host cities on May 1. Tickets can still be purchased via the FIFA website.

xcitement ahead of next month’s prestigious international friendly between the Super Eagles and the Three Lions of England have began to build up after the President of Nigeria Football Federation, Amaju Melvin Pinnick and the 2nd Vice President, Mallam Shehu Dikko, met with the British High Commissioner to Nigeria, His Excellency Paul Arkwright. His Excellency Arkwright received the NFF chieftains at the British High Commission in the Federal Capital Territory, Abuja and used the opportunity to inform the Football Federation that the High Commission will organize a number of events around the match both in the United Kingdom and Nigeria. “Let me also assure you that England is taking this match very serious. It is more than just a game; it is a big preparatory game towards the FIFA World Cup. More than that, the historical ties between our two countries are there to be considered, so it will also serve to strengthen and enhance relations and good collaboration between our countries,” said Arkwright. Contines in page 5

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NEWS

RUSSIA: FANS WARNED OF FAKE ATM MACHINES

scam involving fake ATM machines could hit thousands of visitors planning to visit Russia during the 2018 FIFA World Cup this summer, law enforcement officials have warned. Based on ticket sales and requests, at least 1.5 million foreign tourists are expected to visit Russia during the World Cup between June 14 and July 15. Last week, Russia’s Central Bank issued a set of recommendations ahead of the competition, urging card owners to avoid “malfunctioning” ATMs, among other suggestions. A Russian law enforcement official has told the Kommersant business daily that fake ATM machines installed in the 11 World Cup host cities in Russia will pose a “significant problem” for visitors. “Our residents usually use the same ATM and are unlikely to try to withdraw

...MORE THAN A GAME’ Pinnick informed Arkwright that the Nigerian High Commission in the United Kingdom is also involved in efforts to ensure the match is a huge success, coming less than two weeks before the opening match of the Russia 2018 FIFA World Cup finals. “We appreciate the excellent cordial relations between our two countries and that is one of the reasons this is more than just a match. It is coming up only two weeks before Nigeria’s first match at the FIFA World Cup, and 16 days before England’s first match in Russia. “Ours are two countries that have so much in common. We believe this match

money from a suspicious and unfamiliar device. Newcomers, however, can find it difficult to tell the difference between a fake ATM from a real one,” the official was cited as saying by Kommersant. Scammers are buying retired ATM machines for up to 100,000 rubles ($1,700) and refitting them to target tourists, the source said. According to digital security consultant Andrei Gayko, fraudulent ATMs can be made to “mimic a popular bank’s machine.” “If it doesn’t arouse suspicion from anyone, it can continue to work for a very long time,” he said. Meanwhile, Russian banks have learned how to prevent ATM skimming, a type of fraud in which perpetrators steal information from customers’ bank cards to make fake cards, Kommersant reported.

will go a long way in strengthening England-Nigeria relations in several areas.” Also present at the meeting was Louise Edwards, who is Second Secretary, Political of the British High Commission in Nigeria. The Super Eagles and t h e Three Lions will lock horns at the Wembley Stadium on Saturday, 2nd June, in what will be the Eagles’ penultimate friendly match before flying to the World Cup finals in Russia. Officially, both countries have clashed only twice previously at senior level: one competitive match

acker attacks are becoming more frequent and complex ahead of the 2018 FIFA World Cup and the situation is only expected to worsen, the Kommersant newspaper reported, citing cyber crime analysts. Hacker incidents have been on the upswing in recent months. In April, for example, there were twice as many distributed denial-of-service (DDoS) attacks as there were in March, and these attacks are expected to become more frequent when the international tournament kicks off on June 14. The most popular scams include spam emails about winning tickets in the FIFA lottery and fake websites about cheap flights and accommodations in Russia. Hackers also create duplicates of bank websites and popular tourist sites, such as Booking.com and Airbnb, and use them to gain access to the users’ banking information. Another common attack is for hackers to put harmful viruses on popular websites. Even Fan ID could be at risk for hacker attacks, analysts say. Football fans need a Fan ID in addition to a ticket to enter stadiums for matches, but analysts warn that hackers could tamper with identification symbols on the documents and block a fan’s access to stadiums and public transport. Analysts noted that increased hacker activity was also seen at major sporting events in recent years — the Olympics in Rio de Janeiro, Sochi and PyeongChang — and steps have been taken by the Central Bank, FinCERT, and others to combat the attacks.

and one friendly. The friendly was on 16th November 1994, when the Three Lions pipped the Eagles 1-0 at old Wembley Stadium thanks to a first half header by David Platt. The second time was a group phase tie at the 2002 FIFA World Cup finals in Korea/ Japan, where both teams ended it 0-0 at the Nagai Stadium in Osaka.

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Friday 11, May 2018

ANALYSIS

POTENTIAL TEAMS LIKELY TO WIN FIFA WORLD CUP

he 2018 FIFA World Cup date get closer as expectations continue to build. 32 nations will be playing, in first stage; the teams have been divided into 8 groups, 4 teams into each group. CIES Football Observatory has revealed the most likely World Cup winners. The conclusion is derived from an exclusive Power Index. The index combines the average percentage of the matches played at domestic league level since July 2017 by the 23 most fielded players per team in the World Cup qualifying campaign with the average sporting level of employer clubs. Spain tops the list ahead of Brazil. Spain is tipped to be in the best position to win the FIFA World Cup 2018 title. The 23 Spanish footballers, most fielded in the qualification stage, have on an average played 81.1% of domestic league matches in the current season. This happens to be the highest percentage among all the measured teams, who have made it to the FIFA World Cup Finals 2018. The average sporting level of the clubs employing Spanish players is also the greatest overall at 1.37. These analytics place Spain in a strong position with a perfect 100 Power Index to repeat their FIFA 2010 World Cup title triumph. Brazil, France, and Germany are the other three teams to have an 80 plus Power Index. Panama is placed at the bottom of the Power Index chart with a mere 12 points. Iran and Saudi Arabia too have Power Index scores of less than 25. The reports suggest that teams with less than 25 Power Index points will struggle to reach the pre-quarter-finals stage. The Russia FIFA World Cup Finals are scheduled to start on June 14 with hosts Russia taking on Saudi Arabia in Mexico. Here, we look at top teams who will go into the tournament as favourites

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GERMANY The current world champions, Germany, won the 2014 FIFA World Cup and will be chasing history as they look to be the first team in 56 years to win back-to-back World Cup tournaments. Strength The ability to win games and play as a team. The German national team has the nickname Die National Mannschaft, which refers to working together to achieve a common aim and thus being responsible for each other. World Cups Titles: 1974, 1954, 1990, 2014

BRAZIL The Brazil is undisputedly the best team in the history of the World Cup. They are

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the only nation with five titles and will be looking to add a sixth as they try to avenge their 2014 humiliation at the hands of Germany in their own backyard. Strength The SeleĂ§ĂŁo have talented players in abundance, known for their flair. Brazil can call on a list of players to produce moments of magic to win a game. From Neymar to Coutinho, Willian, Firmino, Marcelo and Gabriel Jesus, the team will be banking on the talented roster to bring home the trophy. World Cups Titles: 1958, 1962, 1970, 1994, 2002

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ARGENTINA The 2014 FIFA World Cup finalists will be looking for redemption in Russia as they aim to go one better and win the cup that has eluded the country and one particular player, Lionel Messi. To be considered the best, you must have won a World Cup. Argentina will want to write their names in the history books and win their first World Cup since 1986.

FIFA’s $25b mini World Cup revenue higher than traditional World Cup

World Cups Titles: 1978, 1986

SPAIN Spain, the 2010 FIFA World Cup champions who made history in South Africa, are going through renaissance as they usher new generation of Spanish technical maestros. They will be hoping their expansive brand of football can land them a second World Cup title. Strength Tiki-taka football is a style of play that involves short passes and starving the opposition of possession, meaning they can dictate the game.

BELGIUM Belgium have been dark horses since the 2014 World Cup, but disappointing results 2014 and the 2016 Euros, as well as the lack of a top-quality manager, have cost the side dearly. Belgium may have failed to live up to their potential in those competitions, but may turn things around at the 2018 World Cup. Strength A talented starting 11 with top-quality bench make Belgium a potential contender in Russia.

FRANCE Le Bleu will be coming to this year’s tournament off the back of a successful 2016 Euro campaign, even though they lost in the final against Portugal. The team’s depth is unreal, with at least three top quality players in each position. Can Le Bleu win the World Cup exactly 20 years after France last won it? Only time will tell. World Cup Title: 1998

resident Gianni Infantino has finally unveiled the plans to launch Global Nations League and football’s Mini World Cup. According to the news agency Associated Press, the plans backed by $25billion funds from international consortium were discussed by representatives of the six continental federations in Zurich. The highlight of the entire discussion was how lucrative the entire model can be for the top national football federations, who are projected to earn $75million every two years. The tournament, known as the “Final 8”, would be the climax of a proposed global Nations League competition, part of an ambitious plan to reform international football which FIFA believes could be worth $25 billion in a 12-year cycle. Infantino had suggested that the new tournament would take place every October or November of every odd year starting from 2021. The FIFA president during the discussions said that an international consortium, which last month tabled an offer to run the proposed competitions, would guarantee revenues of at least $25 billion over 12 years to create an expanded version of UEFA Nations league running on a two-year cycle for more than 200 national teams. In a proposal from Infantino specific to Europe, FIFA forecasts that the five top countries could each be guaranteed to receive between $37.5 million and $50 million to play six games in the initial phase of the Nations League. Those that progress to the final eight would then land an addi-

tional $15 million and another $5 million for being runner-up or $10 million for claiming the title. The cumulative $75 million for a European winner would dwarf the $35 million received by Germany for winning the 2014 World Cup and the US$38 million on offer for the winner of this summer’s edition in Russia. FIFA’s global format would begin with regional qualifying groups featuring promotion and relegation, which would then lead to intercontinental finals brackets in seven divisions. The top sides would then compete in an eight-team tournament comprising nations from five continents, including three European countries and two from South America. Infantino’s letter added that the funding would also allow FIFA to expand the Club World Cup from an annual seven-team tournament into a quadrennial event for 24 participants. The Confederations Cup, which serves as a warm-up event for World Cup host nations, would be replaced by the expanded Club World Cup, which would see $3 billion in revenue guaranteed for each edition by investors. Infantino also moved to assure FIFA council members that the plans do not threaten the future of the World Cup. Both the new Nations League and the Club World Cup would be run by FIFA, while an agency would be used to commercialise the competitions. Before any progress can be made, however, both tournaments still need to be approved by FIFA’s 37-member ruling council.