Businessday 12 jun 2018 by BusinessDay

news you can trust I **TUESDAY 12 JUNE 2018 I vol. 15, no 73 I N300

The numbers that tell how bad Goldman Sachs tips Brazil for Nigeria’s healthcare system is World Cup using See commodities on page 4

CALEB OJEWALE, ANTHONIA OBOKOH, MICHAEL ANI & CYNTHIA IKWUETOGHU

87 out of 190, is how low the World Health Organisation ranks Nigeria’s healthcare system in the World Health Report 2000 – Health systems: Improving performance” published in February 2017.

Nigeria’s health system only ranks better than the health systems in Democratic Republic of Congo, Central African Republic and Myanmar. Liberia and Malawi rank just above Nigeria on the quality of healthcare provided to their citizens. “WHO’s assessment Continues on page 4

statistical model …Nomura, UBS disagree Endurance Okafor

oldman Sachs, a global investment banking firm says Brazil is poised to win the 2018 world cup after a final match against Germany, in what will be the country’s sixth world cup finals victory. The New York-based investment bank used 200,000 statistical models, from data on individual players and recent teams’ performance to one million simulations of the tournament. “While selecting the best starting eleven requires human judgment and experience, choosing

Continues on page 33 President Muhammadu Buhari

M.K.O Abiola

25 years after, we are back to June 12

…. same faces, same personalities, same issues JOSHUA BASSEY

wenty-five years after, questions are still being raised, as to how Nigeria, the biggest democracy in Africa began its ignoble journey to the dark political era that the annulment of the June 12, 1993 presidential election represents in the nation’s political history.

The June 12 election was an attempt to return Nigeria to a democratic path truncated in 1983. On December 31, 1983, the military, led curiously by President Muhammadu Buhari, aborted the second term of former President Shehu Shagari, citing gross electoral misconducts in the election that produced Continues on page 4

Inside

Reps approve N396bn promissory notes, bonds to reflate economy P. 4

Economic Insight Peak Oil, fiscal policies and Nigeria’s growth To be published tomorrow

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The numbers that tell how bad Nigeria’s .... Continued from page 1

system was based on five indicators: overall level of population health; health inequalities (or disparities) within the population; overall level of health system responsiveness (a combination of patient satisfaction and how well the system acts); distribution of responsiveness within the population (how well people of varying economic status find that they are served by the health system); and the distribution of the health system’s financial burden within the population (who pays the costs).” Not surprisingly, Nigeria fared very low on all the indices. Also the Legatum Prosperity Index, published in 2017, which ranks 149 countries on the level of prosperity ranks the Nigeria’s healthcare sector 142 out of 149 countries. This means that the country’s healthcare system is only superior to about that of seven countries on the list, a further indication of the poor state of the Nigeria’s healthcare system. They used three main indices in arriving at their ranking; basic physical and mental health, health infrastructure and preventative care. Healthcare spend is low in the country. N1,800 ($5) per head is what the 2018 budget provides for the health of each of Nigeria’s 198 million citizens, when the N340 billion health budget is calculated on per capita basis. This is completely dwarfed by South Africa which proposed a health budget of R205.446 billion ($17.1 billion) in 2018, representing $299 per head when compared to its population of 57 million. Yet, Nigeria is the continent’s largest economy. Industry experts have told BusinessDay that the country has a shortage of 200,000 beds at the tertiary level. A bed costs a minimum of N50,000 and up to N500,000 depending on the special needs required. Using the lowest cost, Nigeria requires at least N10 billion to meet up the barest minimum in number of beds required for the country’s hospitals. “We need seasoned administrators to manage the teaching hospitals and ensure that the little money that is allocated for these training centers are adequately utilized,” said Ogbonnaya Igbowke, head, Health Thematic Group, human capital policy commission, Nigeria Economic Summit Group (NESG), expressing the view that the abysmally scarce resources should still be managed for the country to get the best healthcare delivery. “The committee of Chief Medical Directors of all the teaching Hospitals in Nigeria must come up with a workable strategy that will ensure that the various facilities get the best infrastructure. Again they must believe in these institutions and utilize them,”

said Igbokwe, who is also CEO of Heartwells Group. For Nigeria to also measure up considerably, at least 120,000 doctors are still needed in the country, yet many of the country’s bright minds leave in droves as they seek greener pastures in Europe, North America, and other parts of the developed world. As at yesterday, BusinessDay checks showed there were 14,916 doctors of African descent registered by the UK General Medical Council, and of these, 5,339 are Nigerians. This represents 36 percent of doctors practicing in the UK. These are individuals whose primary medical education was in the UK, but when the numbers are expanded to include Nigerians trained in other parts of the world, the figure will go up substantially. Yet, the country struggles to get adequate doctors and nurses. Francis Faduyile, president, Nigeria Medical Association, in response to BusinessDay enquiries, decried the terribly low doctor-patient ratio in the country, saying “it is one of the reasons why we have a lot of quacks within the medical profession.” “And a lot of Nigerians are dying at the hands of these quacks,” said Faduyile. According to the World Health Organisation, Maternal mortality rate in Nigeria is 814, per 100,000 live births only outperforming Chad with 856, Central African Republic; 882, and Sierra Leone; 1360. War torn countries like Somalia and Democratic Republic of Cong even outperformed Nigeria. Also, while Botswana and Mauritius have the proportion of births attended to by skilled health personnel as 100 percent, Nigeria is again down the pyramid with 35 percent, competing with countries like Eritrea, Ethiopia, South Sudan, and Chad. The statistics get worse, for every 1,000 births in Nigeria, 108 infants (and children) die before the age of five, and again, the country sits comfortably close to the bottom of the ladder in Africa. Data from WHO world health statistics 2017 further shows that over 72 million Nigerians are at risk of malaria, with 380.8 at risk out of every 1000 Nigerians. Whereas, malaria has ceased to be a health concern for many other countries all over. Yet, Africa’s largest economy shares the three bottom slots on the continent with Burkina Faso and Mali. Based on global standards and in line with the country population, the country is expected to have 145 radiotherapy machines for treating cancer patients, but as at 2016, BusinessDay investigations found out the country only has eight, and out of this, only three were functional. Cancer Continues on page 33

L-R: Oluseun Olatidoye, head, debt capital markets, and Taiwo Okeowo, deputy managing director of FBNQuest Merchant Bank; Patience Oniha, director-general, Debt Management Office; Lolade Sasore, head, communications and knowledge engagement, and Afolabi Olorode, deputy head investment banking of FBNQuest Merchant Bank, receiving awards for Best Local Currency Bond House; Best Naira Bond, Best Social Development Bond, Most Innovative Bond in Africa; and Best M&A Deal in Africa (mid-market) in London, recently.

Reps approve N396bn promissory notes, bonds to reflate economy KEHINDE AKINTOLA, Abuja

igeria’s House of Representatives has approved President Muhammadu Buhari’s request to issue promissory note and bonds worth N396 billion as payment of refunds to 19 states. The approval was granted to mark the third year anniversary of the 8th session of the House of Representatives. Adeyinka Ajayi, chairman, House Committee on Aids, Loans and Debt Management who acknowledged the concerns raised by the monetary policy authorities and effort to control liquidity in the economy in order to put inflation under control, however expressed optimism that the fund would go a long way to reflate the economy. Based on geopolitical zone, South West gets the highest allocation of N143,877,697,406.31, followed by South-South region with N99,212,953,260.08; North West gets N48,490,679,508.11; South East gets N40,867,282,521.34 while North Central gets N26,746,086,891.40 for various federal road projects constructed on behalf of Federal Government. President Buhari had in a letter dated 8th March, 2018 requested for the approval to commence a promissory note and bonds issuance programme to clear longstanding obligations inherited by

Continued from page 1

Shagari. In the bloodless coup, then Major-General Muhammadu Buhari was announced as the Head of State and CommanderIn-Chief of the Armed Forces. But Buhari’s stay in power was short-lived. With the allegation that the Buhari led military regime had no intention of returning power to a democratic government, General Ibrahim Babangida, then Chief of Army

the present administration. According to the document obtained by BusinessDay, the obligations include: unpaid obligations to pensioners, salaries and promotional arrears to civil servants; obligation to petroleum marketers; contractors and supplier debts; unpaid power bills and obligations from tariff reversal in 2014; Export Expansion Grant (EEG) scheme debts; Judgement debts and refund to State Governments for projects undertaken on behalf of the Federal Government.” Buhari’s request was in compliance with the provisions of the 1999 Constitution (as amended), Debt Management Office (establishment) Act, 2003 and Fiscal Responsibility Act, 2007. Breakdown of the funds to be refunded on state basis shows that: Lagos state gets N114.606 billion; Akwa Ibom state gets N78.782 billion; Zamfara state gets N39.919 billion while Anambra state gets N37.970 billion. Similarly, Ebonyi state is to get N15.447 billion; Enugu state gets N13.564 billion; Osun state gets N13.291 billion; Plateau state gets N12.152 billion; Ekiti state gets N11.684 billion while Kwara state gets N11.254 billion. The House also approved the sums of N10.720 billion for Jigawa state; N10.431 billion for Edo state; N6.928 billion for Gombe state; N4.425 billion for Kano state;

N4.332 billion for Ondo state; N4.246 billion for Adamawa state; N3.026 billion for Benue state; N2.897 billion for Imo state while N333.860 billion is for Niger state, respectively. According to Yinka Ajayi, chairman, House Committee on Aids, Loans and Debt Management, a technical sub-committee that liaised with appropriate Ministries, Departments and Agencies (MDAs) responsible for various areas intended to benefit from the proceeds of the promissory notes and bond issuance programmes. “One of such technical subcommittees was one set up to verify claims for refund to State Governments for projects executed on behalf of Federal Government. “The sub-committee was to liaise with the Federal Ministry of Finance and the Federal Ministry of Power, Works and Housing to verify the authenticity of the claims as regards the execution of the federal highway projects in the various states contained in the request by Mr. President. “The technical sub-committee resolved to visits locations of the projects. Due to the enormity of the task before the technical subcommittee set up to verify the claims in respect of the 25 states, it adopted a phased approach to the verification exercise,” Ajayi (APCOsun) informed the House at the Committee of the Whole.

25 years after, we are back to June 12 Staff to Buhari, seized power in another bloodless coup on August 27, 1985 and soon began a never ending transition to civil rule programme that saw him stay in power for eight years. After several false declarations, the Babangida led military administration found itself under much pressure from within and outside the country to return power to a democratic govern-

ment. The military regime eventually set up an electoral body; National Electoral Commission (NEC) under the chairmanship of Professor Humphrey Nwosu to conduct an election that will usher in the much desired democratic government. Two political parties were registered by NEC: Social DemoContinues on page 33

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Apapa Port records 79% of foreign trade by port operations OLALEKAN IPELE

papa Port, according to Q1 2018 trade statistics released by the Nigerian Bureau of Statistics (NBS), accounted for 79 percent of total Nigeria foreign trade by ports. Total value of exports through the port was N4.18 trillion, while total import stood at N1.4 trillion. Compared with the Apapa Port, total value of foreign trade via the Tin Can Island Port in Q1 2018 was N539.09 million, Port Harcourt (3) N523 billion, Port Harcourt (1) N53.5 billion, and Warri Port N35 billion, representing 8 percent, 7 percent, 1 percent and less than 1 percent share of total trade by port operation in the quarter under review. Growing pressure on the port gives credence to calls by stakeholders in the trade and commerce sector for government to as a matter of urgency bring operations in other ports across the country near optimal level to foster ease of transporting goods within and

outside the country. According to recent reports, more than 3,000 containers are trapped inside the Apapa Port as a result of new policy introduced by the Nigerian Ports Authority (NPA) on the return of containers to the port. The new arrangement directs all trucks to first go to a shipping company’s loading bay from where they are to be called into the port. Speaking with journalists on the matter, chairman, Association of Maritime Truck Owners (AMATO), Remi Ogungbemi, confirmed the development, noting that the truckers were agitated by the new policy. “The new directive is not going down well with the truckers because they were at the receiving end of the policy. NPA is saying the terminal operators should give them the list of containers they want to load and number of trucks they are expected to load the previous day before they start coming the next day. So that is what is generating the issue,” Ogungbemi said.

Nigeria’s participation in World Cup seen raising media spend DANIEL OBI

very four years, the F I FA - o r g a n i s e d World Cup comes with great interest and enthusiasm in different nations with viewership estimated at over 3.2 billion worldwide. Nigerian top brands that have also positioned to tap into the local and global large audience are already boosting the local advertising spend with brand messages. Daily, the print, social and electronic media in Nigeria contain adverts around the 2018 World Cup, but some media practitioners cannot put a figure to total World Cup expenditure by brands. “I cannot tell you what my client is spending on the World Cup, but I can say that it is not a peanut,” according to a source. For instance, in the UK, the World Cup will add an extra £40 million to ad expenditure in 2018, a report quoting a research from Zenith said. The report monitored in TheDrum site says host nation Russia will experience a $64 million boost to ad spend, accounting for 2.1 percent of all Russian advertising expenditure in 2018. “Meanwhile, the biggest increase will come

from China. It will contribute $835 million in extra ad spend, or 1 percent of the entire ad market in response to the World Cup.” However, some marketing experts in Nigeria say media spend by Nigerian brands during this year’s World Cup kicking off in Russia Thursday will be huge on account of Nigeria’s participation in the global tournament. Those who spoke with BusinessDay said marketing and promotions around the World Cup would double this year compared to total spend in 2014, when Nigeria did not qualify for the tournament hosted in Brazil. Major players in Nigeria’s FMCG sector, pharmaceutical companies, pay-TV stations and ICT firms are engaging in sponsorships around the World Cup, but they are careful in using images and icons that suggest direct association with the World Cup, as this will pitch them against the World Cup organisers. Already, brands like NBL, Emzor, Aiteo Group, and many others have joined the passion with encouragement and congratulatory adverts for Nigeria, stating that ‘Russia here we come.’ The brands are encouraging Nigerian team for the World Cup,

L-R: Efe Akhigbe, co-CEO, Planet Capital, lead issuing house/book runner; Wale Agbeyangi, MD/CEO, Cordros Capital, joint issuing house; Andrew Otike-Odibi, MD, C&I Leasing plc; Chukwuma Okolo, chairman, C&I Leasing plc; Larry Ademeso, non-executive director, C&I Leasing plc, and Emeka Ndu, vice chairman, C&I Leasing plc, exchanging the signed documents after the signing ceremony of C&I Leasing N7 Billion Bond Issuance in Lagos, yesterday. Pic by Pius Okeosisi

Experts seek good road, rail networks for effective cargo movement in $1.5bn Lekki Deep seaport AMAKA ANAGOR-EWUZIE

ndustry experts have called on Federal Government to ensure perfect operations of deep seaports in the country, especially the $1.5 billion Lekki Deep Seaport in Lagos, expected to kick off in the next two years. According to them, a functional inter-modal transport system that ensures effective movement of cargo from the port using road, rail and inland waterways, would help to eliminate the problems associated with Apapa and Tin-Can Island ports from repeating itself in Lekki. Speaking on the ‘Imperatives of Deep Seaports in Nigeria, a Case Study of Lekki Deep Seaport,’ during a training programme for journalists in Lagos on Monday, they described the $1.5 billion project as a noble idea that would significantly boost the economy of the country. Frank Ojadi, a maritime expert and professor at the Lagos Business School, said

deep seaport was essential because good nautical access was essential for port connectivity. “Over the last decades, ships have rapidly become bigger and deeper. For example, the draft of the largest container ships in Nigeria at this moment is approximately 14.5 meters, which is deeper than what most ports can accommodate. Port depth has become a competitive advantage for attracting the largest ships,” Ojadi said. He noted that deep seaports would create opportunities for trans-shipment operations, generate more employment, promote local shipping business, and boost trade in the country. According to Ojadi, the bulk of cargoes carried by Panamax vessels are delivered at a particular port while importers will have to move them to other destinations through feeder vessels, thus the need for trans-shipment. He urged the federal and state governments to begin to think of good road and rail

networks as well as inland navigation to Lekki, considering the huge traffic that would be created by the deep seaport and Dangote Refinery, among the other major projects cited in that area. He expressed worries that the Senate Committee on Ports Harbours and Waterways and the Nigerian Shippers’ Council (NSC) had earlier identified this issue, but nothing concrete had been done. The government has to do proper planning to guarantee the viability of the many deep seaports springing up within the country, he said. Also speaking on the economic prospects of deep sea ports in the country, Bolaji Akinola, CEO, Ships and Ports Communications, said the multi-billion dollar projects cited in the Lekki Free Zone corridor might face access challenges if plans for road and rail infrastructure to evacuate products from the refinery and seaport were not immediately begun.

Ghana, others to import petroleum roducts from Nigeria’s Dangote Refinery

head of the completion of the Dangote Oil Refinery, petroleum importing African nations and Bulk Oil Distributors based in Ghana have expressed eagerness to patronize the Nigerian Refinery when production starts. The oil buyers said arrangements have been put in place to import petroleum products from the world’s largest single-train refinery, situated, Lekki, Lagos state owned by the foremost industrialist. Hintsofeagerexpectationand hopes on the Dangote Refinery wererevealedatthisyear’sGhanaian International Petroleum conference (Ghipcon 2018), which held in Accra, Ghana. Participantsattheinternational Conference as well as oil distributors and marketers from various countries were eager to know how they could key in for supplies from the 650,000 barrel per day refinery,

that is preparing to take the continent by storm. TheGhanaiangovernmentexpressed the view that dealing with Dangote refinery for petroleum import would be a better business forAfricannationsthandepending on the international market for the supply of refined petroleum products,“wewillratherpurchasefrom the Dangote Refinery due to the proximity of the refinery to Ghana and other neighbours. President of Ghana, Nana Akufo-Addo, who was represented by Vice-President Mahamud Bawumia, said African nations are anxiously waiting for Dangote Refinery. During their visit to the Dangote oil exhibition stand, the Ghanaian Vice-President and the Minister of Energy Hon. Boakye Agyarkowereamazedatthesizeof the project and expressed satisfaction with the pace of work being doneattherefineryasexplainedto

thembyEngr.BabajideSoyode,the Technical Adviser to the President ofDangoteGrouponRefineryand Petrochemical matters, who led the Dangote Refinery team to the Conference. Vice President Bawumia commended Aliko Dangote on the initiative, which is 100% privately funded and expressed the hope that Ghana would stand to benefit from the project when it is completed. On his part the Minister of Energy Hon. Agyarko said it would take a big heart to embark on such a gigantic project and lauded the efforts of Africa’s richest man of in trying to meet the needs of the people. He noted that projects such as thisiswhatAfricaneedstodevelop, andthatGhanaisreadytofullysupport Aliko to achieve his objectives of building a petrochemical plant tomeettheenergyneedsofGhana and the rest of Africa.

Keep eyes on trophy, Obaseki charges Super Eagles

ith less than three days to the commencement of the 2018 world soccer tournament in Russia, the Governor of Edo State Godwin Obaseki has charged the national team, Super Eagles, to set their eyes on the trophy as the team has all it takes to win the tournament. According to Obaseki, the current Super Eagles team is made up of young and talented players who have distinguished themselves in their various teams, home and abroad, and are determined to make their mark in history as the soccer fiesta begins this week. “The team has our support and we are hopeful that we will make it to the final and win the trophy. All that is required of the players is to keep their eyes on the trophy and approach each match with a high sense of commitment to national duty,” the governor advised. He urged the players to see themselves “as ambassadors of Nigeria who have the rare chance to advance a new narrative about Nigeria on the world soccer stage.” Obaseki said: “The World Cup has become a very strong tool for diplomacy and image refresh. I urge our players to appreciate the bigger picture and comport themselves in a manner that befits the new Nigeria that we are working hard to build. “I am confident that the Nigerian spirit, coupled with the strict adherence to instructions by their technical team, will take our Super Eagles to victory.” The month-long soccer event will see the Nigerian side lock horns with Croatia on Saturday in their opener, a match, analysts say will set the tone for the Super Eagles’ aspiration to win the highly coveted trophy.

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‘Egina FSPO project shoots up Nigeria/ Korea trade volume to $2,622,405bn’ GODFREY OFURUM, Aba

he total trade volume between Nigeria and Korea, which declined in 2016, increased massively in 2017 to $2,622,405 billion, due to the Egina floating, production, storage and offloading (FPSO) project, Bohyun Pyun, commercial attaché, Embassy of the Republic of Korea, says. Out of the $2,622,405 billion, export to Nigeria was $2,121,967 billion, while Korea’s import from Nigeria declined to $500,438 million from previous year - 2016. The FPSO vessel for the $16 billion Egina deepwater oilfield project by Total Upstream Nigeria Limited arrived Nigeria from South Korea at the last quarter of 2017. The Egina FPSO, described as the largest ever installed in Nigeria (330-metres long), berthed at the newly built 500-metre FPSO integration quayside at the SHI-MCI Yard, Ladol Island, Lagos. According to the oil major, Egina is the deepest offshore

development carried out so far in Nigeria, with water depths of over 1,500 meters and will add 200,000 barrels per day to Nigeria’s oil production. It said that the Egina FPSO had been designed for 25 years of operations and would produce 200,000 barrels of oil per day. Pyun, who was a special guest at the “Business Opportunity Forum” of the Aba Chamber of Commerce, Industry, Mines and Agriculture (ACCIMA), held last week, said the total trade volume between Nigeria and South Korea in 2015 was $1,809,295 billion, out of which Korea’s export to Nigeria was $685,804 million, while Korea’s import from Nigeria was $1,123,491 billion with trade balance in favour of Nigeria. He stated that 2016 witnessed a decline in the total trade volume between both countries to $985,673 million, out of which export to Nigeria was $460,813 million, while Korea’s import from Nigeria declined to $524,860 million. He revealed that the total trade volume between both countries as of April 2018,

stood at $319,248 million, out of which export to Nigeria was $178,025 million, while Korea’s imports from Nigeria was $141,223 million. The major export items from Korea to Nigeria include but not limited to petrochemical products, automobiles, machinery, electrical/electronic products, battery, medical/pharmaceutical products and textiles, while the major import products from Nigeria to Korea are LHG/LPG, lead/aluminium scrap and solid minerals. The Korean commercial attaché noted that they were aware that Aba, as one of the commercial hubs in Nigeria, was a highly industrialised area with thousands of businesses. In his words, “This collaboration with the ACCIMA to us is a right step in the right direction, as it will help us checkmate unreliable and unhealthy business proposals, while enabling us build stronger ties and partnerships between Korean companies and credible Nigerian companies in Aba, who are members of this esteemed chamber.

Tuesday 12 June 2018

Reasons for terminating Amaechi’s $195m maritime security contract with Israeli firm AMAKA ANAGOR-EWUZIE

wo weeks back, the President Muhammadu Buhari-led government, terminated the controversial maritime security contract valued at $195 million, awarded to an Israeli firm, known as HLSI Firm Security and Technology. The contract, alleged to have been surrounded by fraud, was approved by the Federal Executive Council (FEC) in December 2017, and was promoted by Rotimi Ameachi, minister of transportation. The contractor was expected to procure security equipment and assist in training Nigerian security personnel including the Navy, Army and Police to fight piracy and other illegalities on the nation’s maritime domain. In the agreement, the firm was also require to acquire three helicopters, three aircraft, three war ships, 12 vessels and 20 amphibious cars to secure Nigerian waters. For Amaechi, the three-year contract became imperative given the high charges, which he claimed oceangoing vessels pay for security escort on Nigerian waterways, in addition to high insurance premium paid on laden consignments by shippers. The Israeli firm, the minister

said, assured Nigerians that after the training of her security operatives, attacks on the nation’s waterways would become history. They asked Nigerians to hold them accountable if such harassment persisted on the nation’s waterways after the training. Ironically, amid the contract, Nigerian maritime domain was still faced with security challenges, as cases of attacks on vessels and kidnapping of crew were reported repeatedly. This was evidence in the first quarter report of the International Maritime Bureau (IMB), which revealed that the Gulf of Guinea, which houses Nigerian maritime domain, accounted for 29 incidents in Q1 of 2018 out of a total of 66 incidents recorded globally. This represents more than 40 percent of the global total. Also, four vessel hijackings reported within the period, took place in the Gulf of Guinea, where two product tankers were hijacked from Cotonou anchorage in mid-January and early February, another two fishing vessels were also hijacked 30 nautical miles off Nigeria and 27 nautical miles off Ghana in the end of March. In the period under review, IMB said that out of 29 incidents that took place in the Gulf of Guinea, Nigeria alone recorded

22 incidents while out of the 11 vessels fired upon globally, eight were off Nigeria. Recall that in the days of ex-President Goodluck Jonathan, the Federal Government through the Nigerian Maritime Administration and Safety Agency (NIMASA), gave similar contract to a firm named Global West Vessel Specialists Nigeria Limited (GWVSNL), which was erroneously linked with the popular Niger-Delta warlord, Government Ekpemupolo, also known as Tompolo. GWVSNL , which was owned by late Romeo Itima, a captain, who until his death was the managing director/ CEO of the firm, was specifically asked to acquire and outsource security patrol vessels for the use of NIMASA and Navy as well as ensuring that vessels calling Nigerian ports pay all the necessary levies to the NIMASA, of which a percentage of that payment went to Global West. On his appointment after the All Progressives Congress (APC) won the 2015 presidential election, Amaechi went further to stop Global West from executing the contract on allegation of fraud, only for him to end up replacing Global West with another company, which close watchers alleged that its ownership was loyal to him.

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Buhari, Abiola, June 12 & the march to neo-democracy

MAZI SAM OHUABUNWA OFR sam@starteamconsult.com

igeria seems to be on the March to neo-democracy. A nation that seemed to have been in denial for 25 years finally came home to face the truth. On June 12, 1993, Nigerians went to the polls to elect a civilian democratic President. The election was generally adjudged to be peaceful, free and fair but the official result was not released. The military President in power, Nigeria’s own IBB cancelled the elections using all kinds of subterfuge or so it seemed. A motley group of cash & carry politicians led by then irrepressible Arthur Nzeribe, connived with an equally cash & carry judiciary to give IBB an alibi to cancel the elections. The nation, especially, Southern, Nigeria rose up in protest against IBB and his henchmen. I fully remember late Beko-Ransome Kuti, Femi Falana, and the trade unionist Frank Kokori leading protests which many of us joined on Ikorodu road and Airport road marching to Alausa in Lagos. There were bon fires all over Lagos and other parts of the South West and for the real first time in modern Nigerian history since the women riots, a full blown civil disobedience was in full swing dragging economic activities to a halt for weeks. Many Nigerians panicked, afraid that another civil war was imminent causing many to relocate (Oso Abiola). The peoples ‘force’ compelled IBB to step aside, enthroning Chief Shonekan’s interim National Government (ING). Nigerians were not sure whether to support Shonekan or not despite the very spirited efforts which his government made to reset the nation for a new phase of economic development. The empanelling of the vision 2010 committee was one of such strategic initiatives by Shonekan. Sensing that Nigerians were ambivalent regarding

the interim national government and perhaps more in keeping with written secret scripts held between IBB and his man Friday, Sani Abacha, Shonekan was forced to resign and with it his government came crashing. Abacha, the ultimate dictator assumed office. It is on record that Chief MKO Abiola the then presumed winner, but now confirmed (by PMB), of the June 12 1993 election was one of the earliest persons to pay a courtesy call on Abacha. Why he did so? Only historians will tell. But some of us suspected that Abacha played a fast one on him. Perhaps he naively believed Abacha was going to’ restore the kingdom to Israel’. Rather, Abacha locked up MKO as the man made efforts to claim his victory. Abacha latter died after he had seized and put Nigeria in his pocket but God delivered Nigeria. Soon after Abacha’s death, hope was raised that MKO would be sworn in as president. But that was not to be. The nation woke up one day to hear that MKO Abiola had been despatched to his ancestors. I thought the nation was going to burn. Only a tepid response perhaps similar to the one David made when his son born out of adulterous relationship with Uriah’s wife died. While the child was sick, David was in visible agony, refusing to eat or bath. So when the child eventually died, his aides thought he was going to kill himself. But the guy thought otherwise. No need to cry over split milk. He shaved, had his bath and ordered a sumptuous meal. Nigerians moved on with the fast transition to civil rule plan of Abdulsalami Abubakar or so it seemed. Olusegun Obasanjo was thrust on the nation by the Northern military establishment led by the irrepressible IBB himself. Against all odds including sidelining those who mid-wifed the new democracy and who prepared to assume the presidency, people like late Alex Ekwueme and Olu Falae, OBJ, past military head of state returned as a civilian democratic President of Nigeria. It was said that the North gave the presidency to the West to appease them for denying Abiola the presidency. But was the West appeased? It did not look so, as the West at first, essentially, did not seem to have supported OBJ. In the 1999 elections, it was predominantly the North, the Middle

Let him score all the political points (cheaply or costly). For one thing, they will help write off his current political deficits and perhaps place him on the positive. Won’t that be a good thing for Nigeria? belt and the East that gave OBJ victory. The initial hostility of the West led by Bola Tinubu’s Alliance for Democracy (AD) continued almost through OBJ’s 8-year tenure. Whether this was the main reason OBJ never paid any attention to Abiola and the June 12 movement, one may never know. But throughout his tenure OBJ hardly brought Abiola or June 12 into any discussion and one could conclude he wanted the issue buried and forgotten. President Umaru Yardua’s health did not give him enough time to pay attention to several critical national issues and so it is difficult to say if he would have had a different view about Abiola and June 12, even though the national honour he gave to Gani (which Gani eventually rejected) showed a softness to human right activists. Jonathan, who was in my view the first and perhaps till date the only true democrat in this 4th Republic to rule Nigeria showed more understanding to the June 12 issues. It is on record that he decided to honour the memory of MKO by naming an important national institution after him- University of Lagos. Again the AD now turned ACN political movement of the South West Nigeria mobilized very strongly to oppose that honour. The democratic Jonathan retreated and perhaps that laid to rest any other plans that he may have had. Then enter President Muhammadu Buhari (PMB) under the political amalgam called APC as arranged between Tinubu’s Southwest dominated ACN, Buhari’s Northern dominated CPC and the Bugaje/Amaechi/Saraki minor-

ity belt-led nPDP. This party paraded democratic principles at formation but as at now has become a Democratic Party with very few true democrats if any at all. Much of the promises it made during the campaigns, including those in its manifesto have been largely ignored or denied. Majorly, it promised to restructure Nigeria but came to power and became the major obstacle to restructuring Nigeria. Because of the apparent poor performance of PMB, in its chosen key result areas- security, anti-corruption and the economy, it has lost some of its most ardent supporters. Prominent among these are the leading lights of Nigeria’s military establishment - IBB, TY and OBJ. In addition, the country seems to be slowly descending into a dictatorship with the unfolding erosion of the powers and relevance of the legislature and a patently evident repression and intimidation of the main opposition party- the PDP. As last week closed OBJ issued a statement claiming that his freedom and life were in danger essentially because of his criticism of PMB’s lacklustre performance. As I read that statement, my mind went back to the Abacha days and I asked myself: are we seeing the reincarnation of Abacha? It is in this charged political milieu where we were wondering how we got here that PMB sprung the greatest surprise of his tenure. In a twinkle of an eye, he rewrote history and did what Napoleon could not do. According to the media reports, he acknowledged for the first time that Chief MKO Abiola of blessed memory actually won the June 12, 1993 elections. To demonstrate this, he awarded MKO the highest national honour of the nation- GCFR, reserved for only Heads of State of Nigeria. Abiola’s Vice-Presidential candidate Babagana Kingibe was awarded GCON- the honour for Vice-Presidents. He also gave similar Honour to Gani Fawhenmi, the late human rights crusader and democratic icon. To cap it up, he changed the date for the observance of Nigeria’s democracy day from May 29 to June 12. These are issues which the June 12 movement, other pro-democracy groups and Abiola’s family have consistently canvassed over these many years. Since this surprise was sprung, there have been several comments in the media. The consensus is that this is a good move but done with a mo-

tive to score political points (cheap or costly). And then I ask, what is wrong with that? My wish is that PMB would score many more of such political points. How wonderful it will be for us to wake up tomorrow to hear that a man from the South East has been made the Inspector-General of Police for example! (Please this is not to say that I have joined the Senate to fight IGP Idris and I pray that my humble suggestion is not mischievously transmitted to him). Or how will it be wrong to hear tomorrow that he has accepted the recommendations of the 2014 political conference and ordered immediate implementation or agreed to drastically restructure Nigeria using the six -geopolitical zones as federating units for example. Let him score all the political points (cheaply or costly). For one thing, they will help write off his current political deficits and perhaps place him on the positive. Won’t that be a good thing for Nigeria? Additionally I have heard suggestions that he should do more than what he has done. People have suggested that Abiola and Kingibe should be paid arrears of their salaries as President and Vice President. This is only fair. Others have suggested that Kudirat Abiola who died in the struggle for her husband’s mandate should be equally honoured and I agree. Others are requesting that government should help rebuild Abiola’s businesses that have failed. I demure on that. Indeed I am hoping that other heroes of June 12 like Beko Ransome-Kuti, Tony Enahoro, Balarabe Musa, Ndubuisi Kanu, Yinka Odumakin and comrade Frank Kokori should also be honoured. In similar manner, Nigeria must not forget the sacrifices of leaders like General Thomas Aguiyi- Ironsi, Col Adekunle Fajuyi, Shehu Musa Yardua, Alfred Rewane, Dele Giwa and many others who have died in the bid to bring peace and unity to Nigeria. They and their families and businesses need recognition, honour, resuscitation and restitution. What is good for the gander is good also for the goose! Note: the rest of this article continues in the online edition of Business Day @ https://businessdayonline.com/

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Smart Lagos (6): Status, prospects & opportunities

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

Silicon Valley already positioning itself lobal tech giants are expectedly following up on their top management’s newfound Africa bug. In late 2017, Facebook announced plans to facilitate training in digital and business skills for 50,000 SMEs. It would also be partnering with

local innovation hub operators to set up tech hubs in major cities in Nigeria. In Lagos, together with Co-creation Hub, which Facebook CEO Mark Zuckerberg visited in August 2017, Facebook announced the launch of NG_HUB in December 2017. Starting in 2018, NG_HUB would provide support to tech SMEs, product developers, coders, and the tech community at large. And the hub’s incubation programmes are quite ambitious. It aims to build local expertise and products in such advanced fields as artificial intelligence and machine learning, for instance. Considering NG_HUB would be Facebook’s first tech space in Africa, it speaks to the importance the American tech firm attaches to the tech opportunities in Nigeria and Lagos specifically. It is not just intuition. There are 22 million Facebook users in Nigeria. And 10 million of them log into

their Facebook accounts daily via mobile devices.When Mr Zuckerberg visited Lagos in August 2017, he also announced the investment of $24 million in Andela, the software talent developer earlier mentioned. Google led the way, though. Its own training initiative, launched in July 2017, aims to train 10 million Africans. Its flagship programme in this regard, the “Google Developers Launchpad Start,” was first started in Johannesburg in 2017. In March 2018, Google launched the Lagos leg: “Launchpad Start Lagos,” a “1-week problem-solving bootcamp for early stage startups focused on product strategy, technology, marketing, business development and presentation skills.” The acceleration programme would provide equity-free support to promising tech startups with “a minimum viable product and little or no revenue or users,” with their teams also allowed access to Google

engineers for support and mentoring. Incidentally, CcHub is also Google’s partner. Conclusion The tech startup opportunity in Lagos is promising. And judging from the recent strides of global tech companies towards seizing this opportunity, this is a fact. What is today a vibrant ecosystem, at first evolved organically with little or no government support. Tech talent is relatively cheap, and the market size is potentially the largest on the continent. There are challenges, of course. Infrastructure remains problematic, for instance. Taxation could be unpredictable and draconian. But clearly, that has not stopped local and international entrepreneurs from chasing the opportunity. Besides, unlike in the past, there is now government recognition and support for the tech-

nology sector. Just as Facebook and Google are setting up accelerator programmes to support tech startups, the government also launched its own, for instance. The focus, as has been argued, is for the focus to be on Lagos as a smart ecosystem in which the government’s “Lagos Smarty City” initiative is just one component. • The author, Dr Rafiq Raji, is an adjunct researcher of the NTUSBF Centre for African Studies, a trilateral platform for government, business and academia to promote knowledge and expertise on Africa, established by Nanyang Technological University and the Singapore Business Federation. This article was specifically written for the NTU-SBF Centre for African Studies

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COMMENT STRATEGY & POLICY

MA JOHNSON Johnson is a marine project management consultant and Chartered Engineer. He is a Fellow of the Institute of Marine Engineering, Science and Technology, UK.

t’s been observed that as globalization spreads, exploitation, oppression and violation of children are on the increase while efforts to prevent child labour have been a challenge. Today, the twelfth day of June 2018, the entire world is celebrating the World Day against Child Labour. The International Labour Organization (ILO) has mapped out numerous events to mark this year’s ceremony. This year, the World Child Labour Day shines a spotlight on the need to end child labour, improve the safety and health of young workers, and to give voice to children who can’t be heard. Child labour is endemic worldwide as there are more than 168 million children: 100 million boys and 68 million girls trapped in labour, according to the United Nations Economic Scientific and Cultural Organization (UNESCO). These figures account for almost 11 percent of the overall child population globally. Child labour takes place in developed nations and it is worse

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Children in child labour in less developed countries. Child labour entails work that is mentally, physically, socially or morally dangerous and harmful to children and deprives them of opportunities for schooling and development, according to the United Nations Children’s Fund (UNICEF). Asia pacific is the region with the largest incidents of child labour despite being a vibrant economic zone. Within the region, a few children are boxers, fishermen, machinists, sugar cane farmers, blacksmiths, and prostitutes etcetera, in order to make ends meet. Recently, the National Bureau of Statistics (NBS) in its 2017 Multiple Indicator Cluster Survey (MICS) says about 50.8 percent of Nigerian children, ages between 5 and 17 are involved in child labour. While the number of working children under the age of 14 in Nigeria is estimated at fifteen million, according to the International Labour Organization (ILO). In Nigeria, child labour is rampant in street vending, begging, car washing and shoe shining. Other children work as apprentice mechanics, vulcanizers, hairdressers, and bus conductors while a large number work as domestic servants and farm hands. Some children do these jobs without any pay while others are paid stipends. From the NBS report, the North Central has the highest burden of child labour of 56.8 percent followed by the North West accounting for 55.1 percent. South-South region has 48.7 percent; South East 46.6 percent and South West 38 percent. In Nigeria and most countries in Sub-Saharan

How do state and federal governments intend to tackle poverty under this program in Nigeria when most parents are jobless and fifteen million children are engaged in child labor? Africa, major causes of child labour include poverty, rapid urbanization, breakdown in extended family affiliations, the rate of high school drop-out and lack of enforcement of legal instruments meant to protect children. One of the most common practices of child labour is the use of children as domestic servants. In years past, children have worked only for their families. But today, children are forced to work for their own survival and that of their families. Although disturbing, money earned by a child for his or her family members is a significant part of poor families’ income. These children who work suffer from fatigue, irregular attendance at school, lack of comprehension and motivation, improper socialization, exposure to risk of sexual abuse and high possibility of being involved in crime. Some children especially young girls between the ages of 14 and 17 are exploited against their will to operate as “Nigeria’s baby farmers.” Baby farming is an industry

in Nigeria where new babies are sold to human traffickers. This is a very sad development to observe. It’s because we’re in a society where corruption is endemic, healthcare and childcare systems are prone to the schemes of the criminal and corrupt. As the population increases to 200 million in Nigeria, poverty equally rises. To make matters worse in Nigeria, insatiable killings of innocent citizens by insurgents in which homes are burnt, and farmlands destroyed have fueled poverty. High rate of poverty is at the heart of child labour while greed, culture, family size and others are contributory factors. With millions of children out of school, there is bound to be child labour. The first pillar of the United Nation’s Sustainable Development Goals (SDGs) states that nations should “end poverty in all its forms everywhere.” How do state and federal governments intend to tackle poverty under this program in Nigeria when most parents are jobless and fifteen million children are engaged in child labor? If jobless parents are not free from the shackles of poverty by creating opportunities for them to work, their children would remain poor. Although, poverty is a devastating problem of global magnitude, it is ruthless and relentless, giving rise to infant mortality, hunger, disease, illiteracy and child labour amongst others. Almost three-fifths of the world’s extreme poor are concentrated in just five countries: Bangladesh, China, the Democratic Republic of Congo, India and Nigeria, according to World Bank report in 2015. Where

lies the hope of children who are “indentured servants” and have suffered unspeakable abuse for years? There is hope but more needs to be done by individuals, families and governments. In Nigeria, some indigent parents still give out their underage daughters in marriage for food and money from another family. The “money marriage” in Obanliku Local Government Area of Cross River State is a case in point. This is another variant of child labor that has existed for decades. In this community, girls are sold to elderly men to clear debts owed by a poor family. This act is savagely cruel and must be stopped. This writer believes children are a source of joy to those who have them and they must not be exposed to child labor. The reason why some parents willfully choose to subject their children to labour is mainly due to poverty and lack of education. With poverty and lack of education, child labour continues for fifteen million Nigerian children. So drastic steps must be taken by states and the federal government to enforce necessary laws on child labour. Enforcement of laws will stem the tide and perhaps reduce the burden on the larger society. Parents must have the number of children whose health, education and well-being can be provided for. The change must start from everyone of us, and ends only when all our children are free to be children.

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Smart partnership ecosystems Business today demands not only smart partnerships – it demands ways of unlocking trapped value

KABELO MAKWANE Kabelo Makwane, Managing Director for Accenture Operations in Africa

hink about a typical South African business and you’ll likely be thinking about a company where everything, or nearly everything, remains insourced. From HR to finance, supply chain and procurement, an ‘in-house’ mindset often pervades. At the same time, when management is focused mainly on the business’s ”core” operations, the upshot is often inefficiency in the non-core functions. And when it comes to ‘non-core’ functions – including procurement, marketing, HR, finance and others – many South African companies haven’t considered outsourcing. Yet, internationally, that inclination exists – tapping into business process services (BPS) and leveraging smart partnerships are far more the norm, and with good reason. According to a report from HfS Research and Accenture (NYSE: ACN), organizations that leverage Intelligent Operations to make decisions and act in real-time will be best placed to thrive in the

future. Establishing an ecosystem of smart partnerships allows organizations to leverage these partners’ innovation potential, complementary skill sets and new technologies to drive innovation. In fact over 90% of survey respondents said working closely with partners would be important to help them meet business objectives. Organizations that partner with a business process service provider can expect to achieve more than streamlined operations. Business process services can also help break down the silos between the front and back offices, which is essential to delivering a superior customer experience and deftly responding to evolving business needs. By tapping into business process services and intelligently leveraging and embedding applied intelligence, it has become possible not only to drive efficiency, but also to unlock trapped value in often-overlooked areas – such as HR, supply chain and procurement. Part of the value stems from the automaton of routine processes. Yet there’s an additional value gain in insight. With data analytics and machine learning, it becomes possible to leverage an understanding of how both customers and staff operate. With that comes knowledge of how machines can best automate,

augment and assist. The result is that people, process and technology come together – freeing human beings to focus more of their attention on tasks that require uniquely human ingenuity. A relevant example is account opening. Whether a retail or supplier account, the process has become highly standardised: gather and check bank statements, confirm addresses, verify identities and business names and so forth. Given the standard nature of the inputs and the process required to compile them, it’s easy to automate. In this case, anomalies are thrown out as exceptions – and from there passed to an agent to resolve. BPS and beyond But the paradigm of single-business BPS solutions extends even further – into cross-industry ecosystems. Here, technological advancements are not only disrupting traditional value chains but also lowering barriers to industry entry. In financial services, for example, by leveraging open Application Programming Interfaces (APIs), it has become possible to create fintech spinoffs that handle processes formerly part of banking core value chains. In fact, disaggregation of the banking chain is no longer a novelty. Be it in the realm of payments, customer relations or even capital markets, the insourcing paradigm is being superseded. From an eCommerce perspec-

tive particularly, tapping into a platform is not only efficient, but also necessary. Businesses wanting to transact digitally need access to platforms flexible enough to allow customers to interact with the business on demand, and with the levels of personalisation today’s consumers expect. Business owners don’t own all the necessary capabilities, however: driving click-throughs to payment, for example, or leading customers from viewing a product in a digital showroom to making a purchase often require outside capabilities that organizations wanting to sell online need to tap into. The value chain encompasses a number of specialist processes; each of which is a key aspect of the buying experience. Proactive advertising, specialist product parameters, access to funding options – all need to come together in a user-friendly platform that enables organizations to compete with others already in the marketplace. Sales is one application; sourcing is another. Platform-based analytics tools can help drive supply chain efficiencies by suggesting input items and price, based on product comparisons and buying histories; automation and machine learning continually refine the suggestions, making the process more efficient over time. From an HR perspective, business process services offer clients

an ability to pursue and accelerate their transformation agenda. Improving the employee experience with intelligent self-service means repetitive tasks such as employee queries about policies, entitlements and medical aid can be handled by a chatbot, freeing HR staff to address more complex, human issues such as company culture. Cloud HCMs, automation, artificial intelligence and analytics are part of an integrated platform, enabling intelligent operations. Far more than simply enabling efficiency and savings, through Intelligent Operations, business process services have the ability to unlock value formerly hidden in often-overlooked ‘cost-centre’ functions such as procurement and finance. Our report found that organizations which harness the combination of innovative talent, diverse data, and applied intelligence will be in the best position to overcome digital disruption and use data-driven insights to drive superior business outcomes. Nearly 90% respondents from our survey believe automation and AI will help them achieve their business goals. Technology is changing how business is done. But using that technology effectively requires human ingenuity and businesssavvy talent.

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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 MANAGER, CONFERENCES & EVENTS Obiora Onyeaso 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

Tuesday 12 June 2018

Food security in Nigeria

he current spate of killings by Fulani herdsmen and the rampaging Boko Haram insurgency is posing serious risk to government’s efforts to ensure food security and Nigeria’s capacity to attract investors in the agricultural sector. Frequent clashes between herdsmen and farmers in different parts of the country; Benue, Nassarawa, Ekiti, Delta, Kaduna, Ebonyi, among others, are undermining farm activities, as farmers in many areas stay away from farms for fear of attack. In the North Eastern states of Adamawa, Yobe and Borno, for instance, where the Boko Haram insurgency has been most rife, over the past four years, farmers are no longer able to go to their farms or grow crops for fear of attacks by the dreaded Boko Haram sect who kill, destroy their crops or harvest them to feed their flock of fighters. Many rural farmers have been displaced, while others have been restricted from going to their farms because of checks and heavy military approach being adopted by the govern-

ment in fighting terrorism. While the Boko Haram insurgency is taking its toll in the North East, Fulani herdsmen are on the loose, destroying farmlands in North Central Nigeria, killing farmers and their families and burning their villages and farm produce for sports or in revenge attacks. Many investors who were persuaded to invest in agriculture and had farms in the North Central part of the country are reporting the carnage being done to their farms by Fulani herdsmen who not only destroy their farmlands, but also kidnap farm workers for ransom in the region. The government, which is always preaching economic diversification and agriculture as the future of Nigeria outside oil meanwhile, looks on unperturbed by the excesses and atrocities of the herdsmen. In the south, kidnappers are turning to local farm workers whom they regularly whisk away to later demand ransom from farm owners. BusinessDay investigation in Lagos, for example, show that a few investors, some of whom were encouraged to return to Nigeria from overseas by the Federal Government’s cam-

paign to focus on agriculture as the next economic growth driver; are reappraising their decision, as they lament frequent payment of ransom to kidnappers to rescue workers abducted from their farms around Egans oyindo, Ketu and Igbodu in Epe. According to findings, farm workers engaged in poultry, piggery, fishery, crops and vegetables, including watermelon, are moving out of farm settlements, leaving them desolate as fear spreads over the activities of kidnappers. Most of the entrepreneurs who went into farming to ensure food security and create jobs are now reappraising their continued involvement in commercial agriculture. Alth oug h, th e Lag o s State House of Assembly recently passed a law authorising death penalty for kidnappers but so far nobody has been successfully prosecuted. Soon, their activities will lead to the abandonment of commercial agriculture in the state. We urge both the state and federal governments to take seriously the issue of food security and ensure that both local and commercial farmers are able to go about their ac-

tivities without fear of attacks by Boko Haram, rampaging Fulani herdsmen and, in the case of the south, Kidnappers. The government must also explore the option of ranching cattle to stem the tide of herdsmen/farmer clashes. The current system where herdsmen move their cattle around the country, beyond the conflicts it engenders, has been adjudged by experts to be inefficient and leads to needless loss of cattle and significant loss of value in terms of quality of milk and meat production capacity. In many ways, Nigeria remains, perhaps, one of the few countries in the world where cattle rearers move cattle over thousands of kilometres on foot in search of food and water and to the market. The time for the government to act is now. We cannot be mouthing the platitude of ‘diversification’ of the economy and continue to do nothing but hope on oil prices to rebound and expect anything to change in the country. Most importantly, government action will ensure peace and security in the country, which is increasingly becoming a mirage by the day.

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Tuesday 12 June 2018

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APCON council: The endless wait on Buhari by Nigeria’s advertising industry Stories by Daniel Obi Media Business Editor

he more the Nigeria’s advertising industry waits on Muhammadu Buhari for the re-constitution of the board of the Advertising Practitioners of Nigeria, APCON, the more the industry suffers. Today, some of the industry practitioners are not showing enough zeal on relicencing order, which could have been informed by the absence of the council. The industry has waited in vain for over three years for the re-constitution of the board so that the council can function maximally to the advantage of the industry. All the entreaties and visits to Aso Rock for this purpose have not yielded results. Regulation of the about N200 billion industry is weak without a council of the apex advertising regulatory body. But perhaps, the industry’s neglect by government may have been informed by the industry not showing and demonstrating enough of its importance to the economy. In December, 2017 the present government announced names of politicians and non-advertising professionals as members of the council, in contrast to APCON law. The government has since reversed itself after much pressure from the industry that the appointment was illegal.

It will be recalled that in 2014, the government under former President Goodluck Jonathan similarly appointed a non-advertiser as APCON Chairman. There was uproar in the industry, and Jonathan reversed the decision, replacing the rejected council with another one headed by Udeme Ufot, the group CEO of SO&U. But in July 2015, Buhari government dissolved APCON council alongside parastatals’ boards. Since then, the APCON council has not been re-constituted which has been delaying the effective functioning of the apex advertising body. Delay in appointing a board or flouting of APCON rule by the government especially on the appointment of non-advertising practitioners in to the council may continue as APCON continues to collect yearly subvention from the government who sees the organisation as a po-

litical entity. Wrestling APCON from government Some stakeholders are however favourable disposed to wrestling the advertising regulatory body from government as other similar bodies are run without government intervention and subvention. Tunde Adedoyin, the President of Outdoor Advertising Association of Nigeria, OAAN who supports an independent apex body said the law establishing APCON has to be amended to achieve this for APCON. He however remarked that getting the National Assembly now to amend the law will take a long process. According to him, National Assembly may not consider it urgent in view of other national priorities “unless someone inside is pushing it” Another top stakeholder in the advertising industry, Akinbobola Babu would like to see another in-

dependent body aside APCON to be established for the interest of the advertising community. “Various sectorial groups should come together to protect the business” Biodun Shobanjo, chairman of Troyka Group has always believed that government has no understanding of what APCON represents. His view is informed by delay in constituting APCON council, and when government attempts to constitute the council, it flouts the law. Sharing the same view, Lanre Adisa, CEO of Noah’s Ark has also expressed his concerns not only for advertising industry but more for the country over non-council for APCON for over three years. Steve Omojafor, former Chairman of Zenith Bank Plc, who assessed the development in a report echoed other stakeholders believe that as long as APCON collects yearly subvention from the government, it shall continue to remain a lackey on government political chess board. The industry should take learning from constant disregard to APCON law by the government and prepare the industry for future occurrence. The recent establishment of Nigerian chapter of International Advertising Association, IAA which has membership of all players in the advertising and marketing community could be a platform to address how to wrestle APCON from government to make the industry more formidable.

Winners in Hi-Life Fest share over N6m prize

he Hi-Life fest 2018 talent hunt show which began few months ago has ended on a winning note as a total of nine winners emerged from the two categories of Igbo highlife music and cultural dance, for which all of the winners were presented with cash prize totalling N6. 6m The winner in the highlife music category, Dons Ifeanyi, a Musician from Anambra State was presented with a cheque of N2m and was decorated as the Hi-Life fest 2018 King Also, the winner in the cultural dance category, Umuchiziri dance group had its leader, Chuzzy Anene presented with their first prize money of N2 million and equally decorated as Life Royalty dance group, amidst wild jubilation by the team members. Meanwhile, the 1st runner up in the highlife music category, Chuks Arthur Uwazie was presented with a cheque of N500,000. Kalapi Ojuka, who came third, also got N400,000 as compensation, not forgetting Obiajulu Adachi and Agbom Emanuel who got compensated with N300,000 and N200,000 as 4th and 5th respectively As for the 2nd runner up in the cultural dance category, Kanaowo Cultural dance Group, from Port-Harcourt, received its cheque of N500,000, while the 3rd runner up group, Asinodrick Cultural dance Group, received N400,000, in all ramifications, a keenly contested cultural dance competition indeed.

IAA berths in Nigeria seeks UN approval of World Communication Day

nternational Advertising Association, IAA a global umbrella body of all individuals and organisations in the business of advertising, marketing, branding, communication, PR and related disciplines recently established the Nigerian chapter. The executive members of the global body led by its president, Felix Tataru from Romania inaugurated the Nigerian chapter in Lagos with the Group CEO of Verdant Zeal, Tunji Olugbodi voted as the new President of the Nigerian chapter. The body, established in 1938 with headquarters in New York which have unprecedented international network in over 76 countries serves as a platform for practitioners in marketing communication industry not only to network and share industry best practices but to share experiences on industry issues and possible solutions. The country chapters of the global body are seen as significant, especially in Nigeria where there is segmentation of associations representing various players in the marketing communication industry. In Nigeria,

there have been attempts to bring representatives of all associations under one roof to highlight and address myriads of challenges confronting the industry which one segment of the association cannot handle alone. They believe that the associations are

inter-connected with the challenges such as media debt, unhealthy competition and multiple taxations. In a chat with BusinessDay, Felix Tataru commended the founding fathers of IAA for the great idea of putting together agencies, media

L-R: Tunji Olugbodi, Group CEO of Verdant Zeal and President of IAA, Nigerian chapter; Felix Tataru, President of IAA global, during the inauguration of IAA Nigerian chapter recently in Lagos

and clients at the same table to work together for the overall interest of the industry. He believed that local chapters will continue in that direction. Speaking specifically on what local chapters stand to benefit from the global association, Tataru said it is for every chapter to be connected with the best practices within the world. “It is most important thing for progress as we have a lot to learn from African experiences and I am sure African countries have a lot to learn from other experiences in the world. The most important thing is that when we are meeting , we share experiences. “Secondly, the main role of IAA is to raise standards of marketing communication industry in any territory we are in. This means externally and inside the industry we have to raise the level of people working in the industry. But more importantly it’s raising standard in relation with consumers. Our industry needs image improvement for the consumer and to show that we are much more responsible. We have the power to make the world a better place for everyone. You need

inspiration, tools and courage to express it. We need to understand what is happening in the market as we are here to serve the consumer. The industry needs forum to get inspiration and learn. In this time of dynamism and changes you need a compass”, he said. Assessing the importance of Africa and dominant Nigerian economy on the continent, Tataru regretted that IAA Nigerian chapter did not come earlier. He however said “The importance of your market within Africa is clear. It will be an interesting partnership between IAA global and Nigeria on how to help expand in to Africa, for us it is a priority”. On the present goals of the association, Tataru wished to see UN recognise a day for World Communication Day. “We support this idea because we need to increase the equity of our industry. It is our role to increase the appreciation for our industry” Looking at the issue of dearth of talents in the marketing communication industry, Tataru said the association is addressing it from different levels “Five years ago we launched a project called the Apprentice.

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Marketing&Pr Gulder brand re-strategizes for growth, wears new identity

n a new strategic thinking to reposition Gulder brand for market leadership sustainability, Nigerian Breweries Plc has unveiled a new brand identity for brand. Made from premium barley, Gulder contains a mix of the finest hops and the purest of water which gives it a crisp and distinctive taste. Since its entry into the Nigerian beer market in 1970, Gulder has achieved remarkable success and now seek to consolidate that success story with the launch of a new label for the premium beer brand. On the new label design, one of Gulder’s strongest brand assets, ‘The Gulder Knight’, now faces forward giving the Gulder brand a

more progressive outlook. This change also symbolises the Gulder man as the drink

of modern man. Olayinka Bakare, Portfolio Manager, National Premium Lager, Nigerian Breweries, speaking at the Gulder Masterclass said the brand in 2004 changed its look to a slimmer, distinctive, attractive and more contemporary bottle. According to him, with the new relaunch, Gulder is repositioning by going for a more refreshed identity. “We are all about inspiring our customers to live the ultimate life and be all they can be”. The new label aims to change the perception of non Gulder drinker, away from seeing the brand as ‘Gulder is the beer for my father’ to ‘Gulder is my beer’, while also giving existing Gulder consumers another reason to be proud of their beer.

Bidemi Zakariyau makes Forbes under 30 list, her PR agency wins SABRE

SF PR led by its founder Bidemi Zakariyau, has been awarded a SABRE certificate of excellence for her company’s “Philips through Your Life “ campaign . The campaign created for Philips and executed by the agency was used across Africa by Philips last year. The SABRE Awards - with a 25-year heritage recognizes campaigns that demonstrate the highest levels of strategic planning, creativity and business results. The awards cover the entire global public relations business and are the world’s biggest and most prestigious awards programme in the PR world. In a statement, Bidemi Zakariyau said “We are very pleased to be recognised for our work. This goes to show the quality of work we deliver is of global standards consid-

ering the fact that I started this company with a legal background and no previous experience in PR. “In our five years of operation, we have achieved a lot in terms of diversifying our client portfolio to many sectors, it is very encouraging for my team and myself, we will continue to work hard to ensure that we serve our clients by delivering results that move their businesses forward”. Recently, Zakariyau was listed on the prestigious Forbes Africa 30 under 30 list in the business category. The 2018 Forbes Africa Under 30 list is the most definitive list of Africa’s most promising young change-makers. This year is Forbes Magazine’s fourth edition of the list and for the first time its inspired by the growing number of young men and women entrepreneurs, who

Bidemi Zakariyau

are game changers in their industry. Zakariyau has previously been recognised for her work in leading one of the fastest growing PR agencies in Nigeria. In 2017 she was awarded the prestigious LaPRIGA (Lagos PR Industry Gala and Awards) Rising PR Practitioner by the Nigerian Institute of Public Relations.

Nigeria can reduce huge damage to fire with strict regulation, efficient equipment, says expert

very year, Nigeria loses property running into multibillion Naira to fire incidents but a fire disaster prevention expert says this national destruction can be reduced drastically if Nigeria ensures efficient fire fighting equipment brands are imported and sold in the market but more importantly if Nigeria implement its fire prevention laws. Lagos State Government recently said that the state lost 84 people and N12.8 billion worth of properties to fire in the last one year alone. Regretting the huge lose in private and commercial properties annually to fire nationwide, the CEO of Surveillant Fire Limited, Jumade Adejola, in a chat with BusinessDay recently, linked it to weak regulation of fire fighting laws, poor fire prevention practices, poor awareness and fake or inefficient fire fighting equipment. “On fake products for fighting fire, there is nothing anybody can do without government regulation. Strict regulation will discourage people that are bringing in fake products. A situation where NAFDAC and SON go from shop to shop identifying fake products is an aberration instead of stopping it at the port of entry. There should be strict regulation that whoever that brings substandard product is either jailed or punished

severely. Then unscrupulous people will withdraw from it”. Jumade who has been in business of selling fire fighting equipment for over 20 years strongly believed that Nigeria has trusted and qualified engineers that can identify fake products from genuine ones at the ports before entry. He also warned consumers that price is not a determinant of fake or genuine product, especially extinguishers. “Some extinguishers cannot put out fire when it happens”, he said. Demonstrating how desperate some Nigerians and foreigners could be in their desire to sell fake product, Jumade said his company imports genuine products from a Dubai company. But he was surprised to see that the Dubai Company’s name has been registered in Ni-

Jumade Adejola

geria by some people with intention to import different products in the brand name of this Dubai company. “This will mislead the consumers” he said. Jumade also identified ignorance as major reason some properties including vehicles lack fire fighting equipment such as fire extinguishers. “We need to clear the ignorance in the society about protection against incidents such as fire. Many homes don’t have fire extinguishers and many people have died due to lack of fire extinguishers. We also need to educate people about safety laws”, he said regretting poor implementation of fire fighting codes in the country. With understanding of the consequence of fire to property, Jumade who

said his company imports its products from UK, US, Dubai and Singapore said Surveillant Limited prides itself in quality delivery. “From day one, we decided that we will not compromise quality. “Every product we sell is not just quality but approved products. These are products that have been approved by the quality approval institutions such ISO. Why we are interested in quality is that any thing that concerns life and property no mistake is accepted” According to him, before his company embarks on a job, it first designs. “It is from this design that we actually know where to mount fire prevention equipment, and then we select the appropriate products. We don’t just design for our clients but we provide after sales services”. Jumade who blamed epileptic electricity in Nigeria for the delay in siting powerconsuming fire fighting assembly equipment plants in Nigeria with his partners commended Lagos State government’s efforts in fire fighting and prevention in the state. Apart from procuring equipment and trucks for fire fighting, he said Lagos is organising a conference to further create awareness on its Vision Zero which means zero tolerance to accidents or mishap in especially workplaces.

9mobile Moreblaze wins three top Cristal Awards

mobile has earned more international recognition with the adver tising campaign for its reloaded data service, Moreblaze, winning three top awards at the just concluded African Cristal Awards in Marrakesh, Morocco. The c o mpa ny sho ne brightly at the prestigious African Cristal Festival as moreblaze won three bronze awards in the Film African Cristal - Media Category; Film African Cristal - Telecommunications Category; and Film African Cristal Brand Entertainment & Content for TV/Cinema Category respectively. The annual African Cristal Awards also dubbed African Cristal Festival, rewards the best advertising campaigns created and broadcasted over the African continent on any media. C o m m e nt i ng o n t h e

awards, Vice President, Marketing, 9mobile, Adebisi Idowu, in a statement said the African Cristal Awards affirmed the unwavering commitment of 9mobile to creativity, which reflects in its continuous development and offering of innovative products and services typified by the trailblazing moreblaze data offering, and complementary advertising campaign. “As a leading telco in innovation, 9mobile is committed to leveraging technology to continue to offer its customers products and services that creatively empower them to exceed limits and solve everyday problems. 9mobile moreblaze typifies this commitment; we have demonstrated to Nigerians that it is possible to enjoy uninterrupted, superfast browsing and online streaming experience 24/7 without burning a hole in your pocket”, he stated.

Tuesday 12 June 2018

BUSINESS

COMPANIES & MARKETS

DAY

Sigma Pension CEO canvases public, private collaboration to achieve Govt plan on ERGP

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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

South Africa’s Absa Group targets Nigerian banking license ...Cites valuations as concern MICHEAL ANI

outh African financial services group ABSA, formerly the whole owned subsidiary of Barclays Africa Plc is considering getting a banking license in Nigeria after it begins trading on the Nigerian stock exchange by the end of July, as part of its plans to provide financial services to its international clients who are willing to get exposure to the Nigerian market and vice versa. ,” Garth Klintworth, head of markets for Barclays Africa Group, which was recently acquired by Absa told BusinessDay in a side interview at the Financial Times Summit in Lagos last week. “As a bank, we are considering how we enter Nigeria possibly from the point of view of a commercial banking licence perspective. We will love to have the luxury of just acquiring something but valuations are quite high so entry is just going to be a mixture of organic growth as well as acquisition possibly but it depends on valuation. The problem with organic

growth is that it takes too long and Nigeria is a competitive market. There are good banks run by competent people and it is quite difficult to enter.” Klintworth said that it is important Absa has a presence in Nigeria for the bank to be looked at as an African bank in Africa that provides regional relevance. “We have a strong presence in many other countries that accounts for about 6070 per cent of Africa’s Gross Domestic Product (GDP) but we have to have a presence in Nigeria and that is what is missing in our strategy. That is why we are thinking very hard on how we can credibly call ourselves an African bank in Africa by including Nigeria in our presence.” For acquisitions of existing banks to be attractive as an entry strategy, Kintworth explained that current valuations of Nigerian banks will have to drop by at least 20 percent. He also ruled out the possibility of acquiring any of the existing troubled banks in the country because of the fear of finding out that they have too much issues to be dealt with after acquisition. He also disclosed that all is

set for the securities subsidiary to open in July on the Nigerian Stock Exchange (NSE). “We have a representative licence that has been working for years, in addition to that, we have what is called a security licences that allows us to do underwriting and

RM Pension Managers (PFA) Limited, the number two pension fund administrator by assets under management in Nigeria, has announced the coming on board of LeapFrog Investments as one of its shareholders. LerapFrog Investments is a dedicated profit with purpose investor in high growth financial services and healthcare companies in Africa and Asia. According to the pension

company, LeapFrog’s acquisition of a stake in ARM Pension Managers (PFA) Limited, brings to the company over a decade of experience in investing and growing financial services companies in Africa. “The company has a track record of investing capital, people and knowledge in purpose driven businesses, helping them to grow; become profitable; and, achieve real social impact.” Leapfrog’s investment follows the exit of Helios Investment Partners from the company. ARM Pensions, a subsidiary of Asset & Resource Man-

we should be able to start trading directly and transact securities on the stock exchange,” He added On the things that he would like to see improved on based on his experience trying to get a trading license, he said that getting approval for entry

L-R: Chuks Enwereji, vice chairman, IADC Nigeria; Moyo Cole, administrator, IADC Nigeria; Ote Enaibe, chairman, IADC Nigeria; Ubong King, chairman, Protection Plus Services LTD; Toks Akinuli, secretary, IADC Nigeria, and Hisham Zebian, IADC Regional Representative - Middle East and Africa, at the annual IADC Nigeria Chapter Health, Safety and Environment Awards Ceremony.

LeapFrog Investments acquires stake in ARM Pensions Modestus Anaesoronye

investment banking activities. We also have in principle, a licence that we are closing on with the Nigerian Stock Exchange to allow us to do stockbroking and security trading.” “We have also employed people and by the end of July,

into the Nigerian financial market takes too long and wish it could be shorter. The Absa group is one of Africa’s major financial service providers offering personal and business banking, corporate and investment banking, wealth and investment management. Barclays Africa Plc, which used to be the majority shareholder has sold its majority stake to minority shareholders. This will see a change of name of the Barclays Africa subsidiaries to Absa by the end of 2020. “We have always wanted to do something in Nigeria but Barclays Plc was our largest shareholders and there was limited appetite for them to come to Nigeria. But now that Barclays Plc are divesting from Barclays Africa group Ltd and are no longer the highest shareholders, we are able to execute our own strategy and our own strategy is seeing us opening up in Nigeria,” Klintworth explained on why Absa is just looking at establishing in Africa’s largest market. “We should hopefully bring more capital investment into Nigeria by way of our international client base.

Treasure Bakery blames rising prices of Bread on lack of local raw materials Victoria Nnakiaike, Kogi

agement Holding Company, is reputed for its investment management track record. Its partnership with LeapFrog Investment is geared towards further strengthening the company’s position in the pension industry. LeapFrog, a private equity firm, backed by pension funds from Western countries, had in 2014 made a $3 million buy-in into Petra Trust, one of the biggest private pension fund trustees in Ghana. And early this year announced its exit from Ghanaian independent pensions trustee Petra Trust Co.

he non availability of raw materials for production of bread has been linked to rising prices of bread in Nigeria. The CEO of Treasure Bakery, Femi Akande who disclosed this during an interview with BusinessDay said Wheat products are not sourced locally in Nigeria as that has continued to affect the price of raw materials for bakery. Akande who stated this in Lokoja added that Wheat was not grown in commercial quantities in Nigeria. So, manufacturers still depend on importation. But custom duties and other payments manufacturers face has been the baker’s headache. He also said if the Federal

Government can reduce all these payments for manufacturers, definitely bakers plan to down tools due to high price of raw materials, will not come up. Akande equally lamented that it is unfortunate that before government listens to people plight, things might have gotten to a very bad situation. “It is unfortunate that before government listens to people’s plight in terms of down tooling or resolving to down tooling, going on strike before they listen. I think if Federal government can come in talk with them, let them know the areas where they can help so that raw materials could be available. I don’t think it has to go to that extent of going to strike, planning to down tool before government could do the needful”.

He emphasized that if Federal government can come in and cushion the effect to make the raw materials available it will be alright, adding that the economic situation across the country is biting seriously and it’s affecting every sector. He urged the Federal government to come out with a programme that will reduce the burden on importation as it will fizzle down the agitation for down tooling while stressing that bakers buy directly from the importers and so manufacturers need the government to succeed. Akande also urged consumers to look out for quality and nutritious bread with NAFDAC / SON logo, adding that both agencies at the moment are certifying bakeries now. They should always watch for SON/ NAFDAC logo in all the bakery products especially bread.

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Sigma Pension CEO canvases public, private collaboration to achieve Govt plan on ERGP Modestus Anaesoronye

he Managing Director, Sigma Pensions, Dave Uduanu has called for more collaboration between the private and public sector to enable the country achieve economic growth and development, in line with government’s growth plan as contained in its ‘Economic and Growth Recovery Plan (ERGP) document. Uduanu also called on government to do more in creating sustainable investment opportunities for private sector to thrive in Nigeria. He said this recently at the Rand Merchant Bank’s 5th anniversary in Lagos recently. Speaking on the side-lines, Uduanu said: “The key is for the private sector to engage more with the government, suggesting that investment banks and intermediaries should develop projects that investors such as insurance

and pension funds can invest in.” When asked if pension’s funds would invest in infrastructure development, he said: “The pension funds are looking at forming a consortium to look at such investments because those are large scale investments and such investments are usually beyond one pension fund. So we can work with some of the Development Finance Institutions (DFI) to help prepare, teach and organise these investments and then bring them to the market essentially, to make them investable.” He further added that with the ERGP in place, engaging the private sector to support funding in infrastructure requires prompt action to meet its growth plan as stated in the ERGP document. Uduanu added: “The economic growth and recovery plan envisages increasing the government’s revenue from 6 percent to 15 percent in 5

L-R: Funmilola Paseda, retail head, Lagos & South-west region, First City Monument Bank (FCMB); Oliver Opara, regional head, Lagos; Daniel Obaze, one of the winners of television set and Olufemi Bakre, executive director, institutional banking, (UK and Nigeria), FCMB, during the first draws of the FCMB Millionaire Promo Season 5 in Lagos Region.

SPAR Nigeria celebrates Nigerian children FRANK ELEANYA

s part of activities to mark Children’s Day, 12 SPAR Nigeria stores across the country treated hundreds of children to a special fanfare. The Children’s Day is a day recognised to celebrate children. Different countries have various calendar dates they mark the day. Children’s Day is celebrated globally by most of the countries in the on 1 June,

but Nigeria commemorate the day on May 27. “The SPAR Kids Fun Day has become a tradition for us,”John Goldsmith, SPAR Nigeria said. “Being a family oriented hypemarket, we are keen on always celebrating Children’s Day because it gives us the privilege to appreciate and excite children. We are always happy to go the extra mile in making the day special and memorable because today’s children are tomorrow’s leaders and evidently, tomorrow’s shoppers.”

At SPAR Ilupeju, celebrities such as the Peace Ehiguese, the 41st Miss Nigeria, and Yomi Gold, a rising actor played host to children, parents and fans. They engaged them in recreational activities such as Balance Beam, Pin the tail on the donkey, Identify Parent, Hot Potato and Pass the parcel, Musical chairs, Snatch, Simon says, Egg and Spoon race, Doughnut Eating, Suck ‘A’ Way, Dress up Contest, and Toss the coin. There were also skills development games like Smart Race,

Medicine Ball Throw, Circuit Race, and Colour Ball Race. “The Fun Day has been so exciting for the children and their parents who also joined us in the fun,” Ehiguese said. “I am so proud of the indigenous spirit exuded by SPAR.” SPAR Nigeria has grown from one retail store to 12 major outlets nationwide. The store specialises in a wide range of products covering grocery, bakery, butchery, fruits and vegetables, hot meals, wine and spirits and many others.

Seplat debunks violation of local content law ABDULLATEEF ENIOLA-

he recent speculation that the Federal Government has decided to halt Seplat’s ANOH gas plant project, for allegedly violating local content law has been has been debunked by the Company. The company had earlier debunked the rumour through Chioma Nwanchukwu, its spokesperson, who stated that the Final Investment Decision (FID) has not been signed and contracts have not been awarded. Therefore, no violations could have taken place. Seplat has now further stat-

ed in the recent statement by Mirian Kachikwu, the company secretary, and submitted to the Nigerian Stock Exchange (NSE), that in consultation with the Nigerian Content Development Management Board (NCDMB) it has “reviewed the contracting strategy for the ANOH project and both the NCDMB and SEPLAT will continue to work together to obtain all applicable approvals which capture Nigeria’s content commitments”. The announcement is in accordance with the provisions of the NSE’s rulebook, 2015 (Issuers Rule), which guides on reporting rumours whenever an issuer becomes aware of such, true or

false, in the press or the media, which is likely to have a bearing on an investor’s investment decisions and the value of the shares. Last month, some media reports had suggested that the FG had stopped Seplat’s ANOH Gas project in OML53 over a violation of Nigerian Oil and Gas Industry Content Development (NOGICD) Act of 2010. The violation was said to have involved contracting a UAE firm for engineering and fabrication of the project. The ANOH gas plant project is according to Seplat, part of its initiative of a Nigerian focused growth strategy and the company is well positioned in future divestment programmes by the

international oil companies, farm-in opportunities and future licensing rounds. Seplat’s current share price of N711.10 represents a 56.86 percent growth year-on-year as at Friday and a 13.55 percent increase from January 2018 to date. In June 2013, Newton Energy Limited, a wholly-owned subsidiary of the Company, entered into an agreement with Pillar Oil Limited to acquire a 40 percent participating interest in the Umuseti/Igbuku marginal field area with OPL 283. In February 2015, Seplat completed the acquisition of a 40 percent working interest in OML53 and a 22.5 percent working interest in OML 55, Onshore Nigeria.

years. So that seems to me that they are in a hurry. So in terms of timeline, these are things that need to happen now. So if you look at tax breaks government can begin to do it now. But increasing the revenue of government, essentially, government needs to improve tax administration. On the fiscal side and some of the interest rate incentives we are asking for, it is for government to focus on the right things and they are not difficult to do and I think if you concentrate and put your mind to it, it can be done within a period of one year. Furthermore: “We are looking to come together to invest alongside with the government on a PPP basis on big projects. Some of these projects are beyond the capacity of individual pension funds. I am optimistic that some infrastructure deals would be done. We are cautious of the fact, but we don’t want to rush into it without doing our investment analysis.”

ICT investor tasks government on elimination of multiple taxes IDRIS UMAR MOMOH

he group managing director of De-Steward Resources limited, an Information and Communication Technology (ICT) marketing firm, Bamidele Joseph has called on government to address the problem of multiple taxation militating against the development of the sub sector in the state. Joseph made the call during the launching of Canon technology, a foremost global player in the manufacturing of Information and Communication Technology (ICT) products in Edo state for the distribution and marketing in the state. He also appealed to the state government to provide enabling environment for investors in the ICT-related sub sector, Small, Medium Enterprises (SMEs) and entrepreneurs to thrive in the state. He opined that elimination of multiple taxes would encourage small business owners, and that if entrepreneurs and small business owners are not encouraged there was every tendency that more jobless youths would embrace criminal activities. While noting that SMEs is the bedrock of economic development of any nation, he added that the ICT and other small

business in the state have huge potentials to contribute to the socio-economic development and growth of the state. De-Steward Resources limited boss, explained that the establishment decided to partner with Canon technology because the products are relaible, tested and trusted as well as the kind of business his company is into, which is marketing in ICT, hardwares and softwares products among others. He however, urged Nigerian youths to take advantage of the Canon technology limited products to empower and navigate themselves out of unemployment and poverty. Earlier, Fady Abi-Nader, Sales Manager, Canon Central and North Africa (CCNA) said Canon technology is a foremost global player in the manufacturing of and Communication Technology (ICT) products. Nader, said the company was partnering with Ro-Marong Nigeria Limited and De-Steward Resources Limited for the distribution and marketing of its products in the state. He explained that the company is engaged in the research and development of various technologies centered on its current core products, including exposure, imaging, electrophotography, display and inkjet technologies products supported by technological synergies.

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BUSINESS DAY

COMPANIES & MARKETS Arik Air launches new Mobile App to Business Event boost customer experience IFEOMA OKEKE

rik Air has introduced a new mobile booking app to further boost customer experi-

ence. The new mobile app makes booking, boarding, accessing products and services by Arik Air easy and convenient. Personalized to the customer, the app gives passengers instant access to the information they need, when they need it all

the time. This user-friendly service allows the booking of tickets up to three hours before flight departure, and can accommodate any last minute travel plans. The features of the mobile app include: Book and pay for a flight; Manage your booking; Online check in; Access to frequent flyer program; Flight status and many other useful features. Free to download on Google Play store and IOS

App Store, the app presents consumers with an intuitive, easy-to-use interface. Roy Ilegbodu, Arik Air’s chief executive officer, said the airline is proud to introduce the app to our esteemed customers. He said: “This is another in the series of innovations aimed at positioning Arik Air as a truly customer friendly airline. “We believe that this will improve customer interaction with our airline, while boosting customer experience.”

L-R: Gbenga Oyebode, chairman, Teach For Nigeria; Wendy Kopp, CEO, Teach For ALL, and Folawe Omikunle, CEO, Teach For Nigeria, at the inaugural Teach For Nigeria dinner with the Nigerian Business Community in London.

Otudeko calls for more women in business leadership FRANK UZUEGBUNAM

hairman, Honeywell Group and Group Chairman FBN Holdings Plc., Oba Otudeko, has stressed the need for active gender sensitivity in the Nigerian corporate environment, calling for increased recruitment and participation of women in board leadership and management positions in the country as applicable in developed nations. Otudeko made this assertion while speaking at the maiden edition of the Women on Boards WIMBOARD Executive Mentoring Programme organized by Women in Business (WIMBIZ) in Lagos. The revered entrepreneur and business mogul said: “Participation of women on boards

of major conglomerates in Nigeria is low compared to other developed nations like Norway which reserves 40 per cent of director seats for women and Canada with 50 per cent women representation on board seats of 14 crown companies.” Otudeko who was the Guest Speaker at the Forum, stated that mentoring is vital to leadership building, adding that “A board will only be described as effective if it has worked with the executive team to reach strategic decisions which have supported long-term financial performance, improved brand value, attracted investors and generated returns for all stakeholders according to ethical practices.” He encouraged women to aspire for top positions and overcome public perception

and other barriers attached to women leadership capabilities in developing countries, adding that women must imbibe leadership qualities to become effective board members. “The major obstacle which women need to overcome is the public perception about their leadership abilities. This, no doubt, at some point would impact aspiration of women. Women must reinforce their position as builders, value creators and growth enablers, to deserve board positions as of right”, Otudeko added. Oba Otudeko emphasized the need for women participation on boards to become a norm, supported by legislation and stakeholders such as WIMBIZ for improved women leadership recognition in Nigeria’s corporate environment.

L-R: Richard Amuwa, president, Child Safety Education and Protection Initiative; Olabisi Sonusi, deputy route commander, staff officer, Federal Road Safety Corp; Adeagbo Adebowale, chief operating officer, Academy Halogen; Biyi Adegoroye, editor/media expert, during the Free Security and Safety Seminar held at the Lagos State Secretariat to mark Children’s Day

IFRS 17 will attract more investors to insurance sector – Deloitte FRANK ELEANYA

xperts at Deloitte Nigeria have advised players in the insurance sector to work towards fully implementing the latest International Financial Reporting Standard (IFRS) 17. The IFRS 17 which was promulgated by the International Accounting Standards Board (IASB) on 18 May 2017 replaces IFRS 4 on accounting insurance contracts. It becomes effective for companies that report under IFRS after 1 January 2021. The objective of IFRS 17 sets out the requirements that a company should apply in reporting information about insurance contracts it issues and reinsurance contracts it holds. At an IFRS 17 breakfast meeting with players in the Nigerian insurance sector, Fatai Folarin, CEO of Deloitte West

Africa said the new standards will only open up the insurance space and encourages big investments. “Insurance business has a lot of influence on financial institutions,” Folarin said. “Abroad they have a lot of money and even own banks. IFRS 17 will make it easy to attract investors for Nigerian insurance businesses. If we implement IFRS 17, insurance businesses would attract big names into Nigeria, to come and introduce products that we are yet to see here.” The IFRS 17 began as an IASB project to undertake comprehensive review of accounting for insurance contracts when the IASB added the project to its agenda in September 2001, taking over the equivalent project started in April 1997 by the IASB’s predecessor body. For the past 16 years, the project was known as IFRS 4 Phase II.

The IASB issued a discussion paper in 2007 and the first exposure draft “ED/2010/8 Insurance Contracts” in July 2010. A second targeted revised exposure draft “ED/2013/7 Insurance Contracts” was established on 20 June 2013. The IASB finalised its deliberations in February 2016 and made the last set of amendments in February 2017 as a result of the field test activities conducted during the summer of 2016. The IFRS 17 comes with significant changes from its predecessor. According to Julius Faure an Audit Manager with Deloitte, the current IFRS 4 does not specify how the actuarial reserves should be calculated. IFRS 17 will specify how to calculate it. The new standard measures insurance contracts either under the general model or a simplified version called the Premium Allocation Approach.

Diran Olojo, group head, corporate affairs, First City Monument Bank (FCMB), and Felicia Obozuwa, divisional head, corporate services of the Bank, with some students of Liberty Bells Secondary School, Badore in Lagos, during the celebration of this year’s World Environment Day, organised by Nigeria Conservation Foundation and supported by FCMB, held at the Lekki Conservation Centre, Lekki in Lagos.

Ademola Tayo, president/vice chancellor, Babcock University, (l) with Babatunde Onadeko, one of the new Ph.D Graduates, during the convocation ceremony of the University at Ilishan-Remo, Ogun State.

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Tips & Talking Points

Harvard Business Review TALKING POINTS Is Corporate Social Responsibility the Future? 80%: A report from Bentley University found that over 80% of millennials believe creating positive change in the world is more significant than professional achievement. + Company Training in the Digital Age 9 times: The online space for corporate online training and e-learning has grown nine times in the last 16 years, according to recent research. + Flexible Work Hours for U.S. Professionals 7 a.m.-3 p.m.: In a survey on flexibility in the workplace from the startup Werk, employees with long commutes typically opted to work 7 a.m.-3 p.m. over the standard 9 a.m.-5 p.m. workday in order to avoid rush hour traffic. + Frequent Business Travel Is Bad for Your Health 92%: People who traveled 21 nights or more per month were 92% more likely to be obese than those who traveled one to six nights per month, according to a study published in the Journal of Occupational and Environmental Medicine. + Asian-Americans and the Glass Ceiling 11%: Bloomberg Businessweek reports that 27% of U.S. professionals working in New York banks are Asian-American, but only 11% hold executive or senior manager roles.

Stop asking ‘what do you do?’ when networking

We’ve all been in the situation of meeting someone and having to find something to talk about. Many people — especially Americans — break the silence with a standard question: “So, what do you do?” But talking about work, even at networking events, isn’t always the best way to build rapport. Instead, ask people about their hobbies, the charities they support, where they grew up, or even who their favorite superhero is. If steering away from work doesn’t feel comfortable, you can ask a question like “What excites you right

now?” or “What’s the best thing that happened to you this year?” These kinds of queries invite a range of answers and let the other person talk about work, their kids, their new boat — whatever they want. Asking open-ended questions can lead to a more interesting conversation, and you might even make a new friend.

(Adapted from “8 Questions to Ask Someone Other Than ‘What Do You Do?’” by David Burkus.)

Two rules for making better decisions Establish norms for how your There are many ways to improve your decisionmaking, but two simple rules can be particularly helpful. First, be less certain — about every part of your decisionmaking process. Think choice A will lead to outcome B? It’s p ro b ab l y l e ss likely than you believe. Think outcome B is preferable to outcome C? You’re probably too confident about that as well. Revisit the logic of your decisions. What else would you think about if you were less sure that A causes B, or that B is preferable to C? Second, always ask yourself, “How often does that typically happen?” For example,

team will work together

if you were considering funding a startup, you might ask: What percentage of startups fail? (Or, what percentage succeed?) Accepting that you know less than you think you do is one of the best ways to start making better decisions. (Adapted from “3 Ways to Improve Your Decision Making,” by Walter Frick.)

Is your team struggling to work well together? Perhaps a few people dominate your meetings, or team members constantly revisit past decisions. If so, create norms about how you’ll work with one another. Start by looking at past team experiences to identify norms that have made the team more productive and effective, and then break down the norms into specific behaviors. For example, a norm might be equal participation in meetings, and the behavior might be going around the room and soliciting input from everyone on key

issues, starting with the person who’s spoken the least. Discuss how team members will hold one another accountable if someone violates the norm. Establishing team norms in this way, and sticking to them, will increase trust, save time and improve performance. (Adapted from “How to Create Executive Team Norms — and Make Them Stick,” by Sabina Nawaz.)

One of the most challenging parts of working remotely is feeling shunned and left out. Managers can counter this problem by proactively making sure distant workers feel included. How? First, check in frequently and consistently. Just because someone works remotely doesn’t mean you can leave them alone. Stay in touch with them often, and clearly communicate your expectations for projects, roles and deadlines. Second, and most important, be available to remote employees no matter what time zone they’re in. This doesn’t mean you have to respond to emails at all hours of the night, but be reachable

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Going on Vacation? Try Somewhere New It’s tempting to default to the same vacation each year: a familiar beach town, your favorite city, that resort the kids loved. But traveling can be an opportunity for personal growth, especially when you venture outside your comfort zone. By spending time in unfamiliar cities or countries, you become more comfortable with feelings of discomfort and more confident in your ability to navigate ambiguous situations, which enhances your emotional agility. Research has shown that people who travel to other countries develop a greater tolerance and trust of strangers, which alters their attitudes toward not only strangers but also colleagues and friends, resulting in greater empathy. And going to new places can boost your creativity. Experiencing other cultures, having international friendships and studying languages are all linked to unconventional problem-solving. As you’re making summer plans, consider taking a trip to someplace new — and encourage your colleagues to do the same. (Adapted from “The Mental Benefits of Vacationing Somewhere New,” by Todd B. Kashdan.)

Managers, make yourself available to your remote employees

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at designated times and in multiple ways (instant messaging, Slack, Skype, email, phone, text). Remote employees should always be able to count on you to respond to pressing concerns, no matter where they work. (Adapted from “A Study of 1,100 Employees Found That Remote Workers Feel Shunned and Left Out,” by Joseph Grenny and David Maxfield.)

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Tuesday 12 June 2018

In association with

We are changing Nigeria’s digital marketing narrative – ADE Michael Ebia is the CEO and co-founder of ADE, a digital marketing firm in Lagos. In this interview, he talks about ‘Free Digital’, a social initiative that promotes the possibilities of digitasation. He also talks about the ups and downs of digital marketing in Nigeria. Excerpt. What prompted your decision to establish ADE Digital? DE Digital was born out of the hungry desire to solve marketing inefficiencies, and also to deliver marketing campaigns that is of interest to millennials. Also, we wanted to help increase performance rates for digital marketing projects, help brands understand and drive meaningful conversations with their audience, create digital solutions and products for our space as well as explore trends and the opportunities they present for business growth. ‘Next level’ and ‘truly relevant’ innovation were major keys in our approach to create solutions that emerged through the clutter. Also, for the clients, campaigns and the projects we work on, we needed to deliver tangible growth and profitable returns on investments for the clients.

provides in improving the socioeconomic possibilities of Africans, accelerate digital inclusion, provide a platform for Africa’s digital citizens to experiment and create innovative solutions that are commercially viable and improve human development outcomes. Free Digital’s goal to educate and inform yielded the ‘Nigeria Digital Outlook’, our annual compendium of trends, insights and perspectives on digital in Nigeria.

What would you say your main challenges are within Nigeria’s digital marketing landscape? One of our biggest challenges in the tech industry is skillset. There is a huge demand for people with certain digital skills and understanding of tools and platforms. Not a lot of people are versed in very niche categories within the digital marketing spectrum. There is also the issue of metrics, it is so recurring to hear clients say they cannot make any correlation between their digital marketing efforts and impact on bottom line objectives. In our industry, we do not have a lot of professionals; permit me to say, we just have a lot of people appropriating titles. The fact that you can set up ads doesn’t necessarily make you a digital marketer. – even though we understand that this is quite common with a growing space. ‘Professional’ doesn’t mean certificates in the bag; it would mean as little as how much do you follow through on global best practices, while considering local realities. We still have a lot of practitioners who would rather cut corners and overpromise unachievable KPIs. These things dent client’s perception of the industry and we can do better. Data is also one worthy of mention. Most of the investments we make and the products we try to build are not well

Michael Ebia

informed, causing tech businesses to suffer a lot. In most recent times, we have had some brands sell out, some merged, and some failed out rightly, while others haven’t turned over a profit in years. We have struggled because we do not have granular data – we are misinformed. The Nigerian market is special and very diverse. I also think that our approach to Funding is a big problem. Many businesses can just bootstrap and learn a lot as they go, rather than pick up funds. So, not funding in terms of available money, but our approach to it. Some ideas never got off the table because funding didn’t come through; some died; some achieving ‘slow growth’ from ‘too much’ funds received from investors. What strides have ADE Digital made in the industry since its establishment? Proudly, we have executed over 60 digital projects, about half of which are with multinationals. We have been quite fortunate to work with forward thinking brands like; Peugeot, Interswitch, 9mobile, Access Bank, Quickteller, Tony Elumelu Entrepreneurship Foundation, EMC2, Oracle and Skye Bank. We are humbled that in many instances, we have been able to contribute to their business growth. We currently have two products; Sandy, our media buying agency focused on reaching digital natives and today’s online audience

with our full-suite data driven programmatic platform for Africa. Also, we have Eventiso, our end-to-end event management platform. Recently, we launched our animation studios; ScamStudios, a full-service design-centric 2D/3D animation studio combining creative artistry and resonating storytelling powered by technology. While most of our products are in their early stages, the growth and adoption have been on a steady increase. We are quite optimistic they are all performing well in the market and we believe there is always room for improvements. What is the motive for launching the social initiative – ‘Free Digital? We are always trying to defy the odds and just create! Create, that’s the keyword for us. So we started asking ourselves, how we can democratize digital especially in our space, and questions led to more questions and the answers did come. Technology has a huge role to play in achieving the 17 sustainable development goals of the UNs agenda 2030. While Africa has made significant strides in digital technology adoption; to fully take advantage of it, we need to expand the current demographic scope for digital. In line with this, we launched ‘Free Digital’ as part of our 3rd year anniversary in December 2017 where we rolled out Free Digital’s plan to promote an understanding of the possibilities digital

More insights on the Nigeria Digital Outlook Interesting things are happening in the markets we operate in and it falls on us to make meaning of them. The Nigeria Digital Outlook does just that. We took the time to look at locally relevant insights through four broad lenses; Trends to watch, projections, landscape and market opportunities. We are brimming with expectations of the conversations and innovations it will spark. On internet economics, we have the fact that the internet has the potential to contribute as much as $300 billion a year to Africa’s GDP by 2025. This is contingent on Governments and the private sector building the right foundations across various sectors; ranging from healthcare, agriculture and retail. On governance, the collision of digital and new technologies is creating new possibilities. According to the CIA Fact book for 2016, total government spend globally is about $25trillion. Nigeria’s contribution to this was about $21 billion dollars. Globally, governments stand to gain 3.8% savings on annual expenditure by digitizing public services. In Nigeria, this brings the potential savings to about $805.9million or around N290 billion. Running a tech business in Nigeria, what unconventional lessons have you learnt about the consumers? Firstly, tech adoption is still very tough. A lot of marketing and promotion would have to go into literally any tech product to gain great traction – still not a guarantee. Secondly, a larger percentage of Nigerian consumers are still not as tech savvy as we assumed or thought. As a basic example, we still have more feature phones than smartphones. We are

still largely influenced by the west, the more reason why we could build a local streaming app for movies and for some reason, there is still a lot of buzz on the foreign ones even with a solution closer home. This influences how we build as well. Thirdly, our space and challenges are unique. For me, the Nigerian consumer is typically ‘abusive’ and would explore opportunities to cut corners on a product. Our effect on platforms and products is a reflection of who we are; advantageous. While this is not typically a bad thing, product designers as well marketers need to arm ourselves with these realities. Fourthly, the Nigerian market is still not very sensitized. We still thrive on incentives and promos rather than brand loyalty and this is exciting to watch when you take a laid back and realistic view of things. This is the reason why a good number of brand campaigns or even patronage on products and platforms come from promos. This comes with its positives and negatives, but again we expect that for the big brands that have been here for so long, there should be some sense of loyalty from the consumers. What advice do you have for tech startups operating in today’s market? Taking a look backwards and how far we have come, I’d say passion is the true startup capital, it is a priceless currency in business. Your passion has to be in excess, it has to consume you, it has to intoxicate you so much that it rubs off on your team. On funding, only go for it if you ‘really’ need it. You must be able to distinguish between the hypes and realities if you want to get it right in today’s tech industry. Also, you have to truly understand the market, it is a marathon, just keep at it! The Nigerian market is unfolding, so build products and businesses with that in mind. We are not a sudden change market, in fact, very few markets are. Notice the incremental growth as well as opportunities and hedge your business to take advantage of them. Lastly, stop prioritizing technology over the business in itself, technology will make more businesses fail than succeed, especially when it isn’t viewed as an enabler, see technology as the bridge.

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Tuesday 12 June 2018

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E-mail: jumoke.akiyode@businessdayonline.com

Education and collaboration – Essential for the Fourth Industrial Revolution MEGAN SMITH, Trainee Solicitor and WILLIAM F. FERREIRA, Partner, Hogan Lovells London

he Fourth Industrial Revolution is upon us and countries across the world are grappling with ways to capitalize on its opportunities and mitigate its risks. Across the African continent, the younger generations are poised to benefit as disruptive technologies clear the way for innovation and entrepreneurship. As with all countries, African nations must continue their efforts to prepare their future work forces, through targeted, forward-looking education systems and better collaboration with the private sector. Industry 4.0 The occurrence of a Fourth Industrial Revolution or “Industry 4.0” has been discussed and debated for a number of years now, gaining prominence and momentum at the World Economic Forum in Davos in 2016. The first Industrial Revolution mechanized production using steam and water; the second used electricity to facilitate mass production; and the third was characterized by digitization. The fourth will build upon the revolution before it, leading to a blurring of the lines between the physical, digital and biological, with advanced digital technology such as artificial intelligence, the Internet of Things, block chain, biotechnology, 3D printing and robotics rapidly progressing. This will change the nature of our jobs and the skills required to succeed in the labour market. Governments – and especially

R-L: Gboyega Fatimilehin, co-founder of Diya & Fatimilehin Co. Ltd., presenting the CIAN award to Hillary Nwaukor, CEO of i-Naira.com, recently.

education systems – need to be prepared and willing to adapt and change to ensure they are not left behind. Opportunities for Africa Africa has the largest and youngest workforce in the world. By 2030 the African working-age population is set to increase by two-thirds, from 370 million adults in 2010 to over 600 million. In Sub-Saharan Africa it is estimated that 41% of all work activities will be susceptible to automation. In South Africa, 39% of the core skills required across industries will be entirely different by 2020. In its 2017 report entitled “The Future of Jobs and Skills in Africa”, the World Economic Forum (WEF) said that African nations need to develop “future-ready curricula that encourage critical thinking, creativity and emotional intelligence as well as accelerate

acquisition of digital and STEM skills to match the way people will work and collaborate in the [Fourth Industrial Revolution]”. This is not only necessary to adapt to the rapidly changing global landscape, but also to work towards the fulfilment of the fourth of the UN’s Sustainable Development Goals – to ensure inclusive and quality education for all. To enable this, more focus must be placed on science, technology, engineering and mathematics (STEM) in schools, emphasising practical skills over theory and focusing upon computer literacy from an early age. However, the ability to succeed requires more than technical skills; it requires creativity, agility, emotional intelligence and problem solving. In other words, preparation for the Fourth Industrial Revolution requires a holistic approach. However, preparing the

young for Industry 4.0 is not something that educational institutions can do alone, and neither should it be. In countries where there is both a skills gap and a lack of access to resources to develop digital literacy and the required “soft skills”, the role of business, as future employers, is vital. Collaboration amongst all key actors, i.e., government, educational institutions, civil society, unions and the private sector, is necessary to ensure that education and skill development is informed by and aligned with market demands. Over the past few years there has been increasing recognition of the need for this kind of collaboration. For example, South Africa has announced the launch of a national publicprivate collaborative task force, the first of its kind developed under the World Economic Forum’s Closing the Skills Gap project. This aims to build upon

Freshworks aims for easier internet accessibility through cloud based software existing initiatives and ensure coordination between the two sectors. Another example is the corporate-sponsored African Girls STEM Camp, led by the Working to Advance African Women (WAAW) Foundation, which aims to attract girls between 13 and 17 into STEM disciplines, providing them with the opportunity to build renewable energy systems, and get to grips with basic computer science and app development. However, the private sector does not need to wait for governments or non-profits to take the lead. The corporateled annual Africa Code Week is a collaboration of more than 100 partners including local governments, non-profits, businesses and educational institutions, offering training in coding to both teachers and students. There are also examples of this on a smaller scale all over the continent, including specialised entrepreneurial technology schools; ad hoc practical workshops using fun experiments to introduce children to STEM careers at an early stage; and the establishment of digital hubs to build teacher capacity and facilitate student education. A multi-stakeholder approach to preparing the youth of Africa for the next phase of global development is a trend that must continue; it is the key to unlocking the potential in a growing, ambitious work force and to making the most out of the challenges that the Fourth Industrial Revolution will bring. Now is the time for both governments and private actors to invest in Africa’s future.

I-Naira, Nigeria’s first online auction platform gets CIAN award JUMOKE AKIYODE-LAWANSON

-Naira Integrated Resources Limited has been awarded and recognised by the Certified Institute of Auctioneers of Nigeria (CIAN) on the basis of industry standard and professionalism. The auction company is the first online auction platform adjudged as transparent by the Organised Private Sector (OPS). I-Naira’s strength is derived from the innovative use of technology to deepen the need for accountability while running auction events for its’ clients. Speaking at the ceremony, Samuel Ilori, former Chief Judge of Lagos State, said that the auction profession is witnessing great leaps and bounds in Nigeria, despite the fact thst it is relatively new in

the public and private sector. Ilori said the profession is constituted by the finest professionals in the country with the wealth of experience in their respective professions. According to Olayinka Oladunjoye, the commissioner for Commerce and Industry, the State Government will not relent in its efforts in designing and implementing innovative policies that would strengthen auctioning practice. The commissioner disclosed that the government is at the forefront of creating a conducive business environment to make auctioneering practice more operational and attractive in Lagos state. Oladunjoye also confirmed that the state government has written agencies of government (state and federal), manufacturing companies, insurance companies as

well as financial institutions within the state on the implication of auctioning their assets without working with a recognised and licensed auction company in Lagos. While receiving the award, Hillary Nwaukor, the Founder/CEO at i-naira.com,said that he felt honoured owing to the fact that an idea to build an auction solution for the Organised Private Sector (OPS) five years ago has become a reality; “not only has it become a reality, we have equally become a force to reckon with after three years of operations. Thus, indeed, I am happy and thankful to the registrar, Adeleke Hassan, the chairman of Lagos state CIAN chapter, Jogunola Onabanjo and the governing council of Certified Institute of Auctioneers for the recognition.” Nwaukor said.

He stated that i-naira.com auction system is a stable software that is designed with transparency. “Our customers and clients alike are happy with bid outcomes whenever we run an auction event online”, he said. Nwaukor, further said that the firm is steadily bridging a major gap in the Nigeria business space - where most auction events in Nigeria are considered opaque and marredby lack of clear-cut transparency. The convenient narrative by the management of some of these organisations, is that auctioned items are mostly not recognised in their books (fully depreciated assets), thus they cannot be bothered with how the departments assigned to dispose of such assets carry out supposed auction events. Nonetheless,

the foregoing justification does not in itself make it right or legal for businesses not registered as auction companies to carry on the affairs of auctioning without engaging professionals. i-Naira.com was recently engaged in April/May 2018 to dispose of the assets of Mobilising for Development (M4D) - a DFID sponsored project in Kano, Jigawa, and Kaduna. Nwaukor said; “emphatically, there can’t be any more assurance or validation required to evidently demonstrate the strategic importance of iNaira.com auction solution in closing the transparency gaps in auction processes in Nigeria while giving corporate entities the opportunity to earn more from assets they consider fully depreciated in their accounting books”.

OLUSOLA BELLO

reshworks Inc, provider of cloud-based business software, recently announced its expansion into the African market in order to reinforce easy accessibility to internet usage by business concerns. The company plans to substantially increase its commitment with specific investments in marketing, sales and partner resources to better serve its customers in the region and Nigeria in particular. Speaking in Lagos, Saurabh Prabhuzantye, head, Business Development, Middle East and Africa, Freshworks, said that cloud computing helps to provide the basic software for internet use and this makes it more convenient and easier for organisations to access internet rather than putting up resources zapping infrastructure in place. “The opening of Africa is an important milestone for us, as it demonstrates our expanding commitment to the region and strengthens our position as a leading software provider. The combination of our industry-leading solutions along with a growing customer base in the region will augment our local operations. Our aim is to build rich, meaningful engagement with enterprises of all sizes that are looking for new cuttingedge solutions to power their customer and employee experiences.” “What you see is a huge application in terms of internet access. Africans are accessing internet through smart phones but cloud computing will help you to provide basic software for that process which is easy and convenient instead of wasting a lot of infrastructure,” he said. According to Prabhuzantye, even though cloud computing awareness in Nigeria appeared hazy, the company is doing a bunch of things to create awareness among the general public and that it is going to invest in human resources and marketing. Speaking on whether the company has the knowledge of the Nigerian market, he said even though they are still learning, it already has some customers which they are putting through the process of the technology and through which they are trying to penetrate the market. Prabhuzantye said the only challenge the company has currently is creating awareness for the product; stating that it has no problem with the technology.

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Energy Report Oil & Gas

Power

Renewables

Environment

Fears of insecurity threaten establishment of gas industrial hubs in Niger delta OLUSOLA BELLO

he Nigerian Gas Association (NGA) held both its yearly Natural Gas Business Forum and 19th annual general meeting in Lagos, June 05, tagged Gas Policy, Market and Regulation. All who have major stakes in the industry showed up to contribute to one of the most interesting topics titled “Catalysing Development of Gas Industrial Hubs”. The topic elicited a lot of contributions from participants some of who have seen it all in the Nigerian oil and gas sector. The forum also revealed some of the inadequacies of the sector that must be addressed before a truly industrial hub can be realised in different parts of the country and the Niger Delta in particular. One of the most critical issues raised was that of security, which they said has contributed largely to why major gas industrial centres

L - R: General Manager Commercial, Nigeria Gas Processing and Transport Company (NGPTC), Justin Ezeala; Business Development Manager, Shell Nigeria Gas (SNG), James Makinde; Managing Director SNG, Ed Ubong; Managing Director NGPTC, Babatunde Bakare; Social Performance Discipline Adviser, SNG, Babatunde Olaleke; and General Manager, NGPTC, Nnamdi Nwachukwu, during a recent visit to the NGPTC in Warri, Delta State to discuss opportunities to further improve Nigeria’s domestic gas utilisation to industries and manufacturing clusters.

are outside the gas producing areas. Except for Port Harcourt, most gas processing areas are in Abia, Lagos and Ogun states. The reasons for this are not farfetched. It is because those areas enjoy relative peace compared to what

is obtainable in the Niger Delta. Gas industries are mostly in Lagos and Ogun states hence 30 percent of gas infrastructure laid is in the South west; the level of sanctity has improved such that gas factory is secured and

taxes are paid to the state governments. The federal government is not oblivious of this anomaly and is making efforts to correct it. Justine Ezeala, general manager, commercial Nigeria Gas Processing and

Transportation Company Limited (NGPTCL), a subsidiary of the Nigerian National Petroleum Corporation (NNPC), said it is evident that those close to some gas infrastructure do not benefit from it, but the government is addressing the issue. According to him, his company is primarily focused on existing gas infrastructure and processing of gas. On security of gas pipelines, he stated that even though efforts are being made to prevent vandalisation by the Niger ian Gas Marketing Company (NGMC), it is not easy either to protect gas facilities since people have intruded the Right of Way. The company he disclosed is working with International Oil Companies (IOCs) to empower host communities to secure pipelines. “There is collaboration with the IOCs to protect the pipelines and in some communities they have been provided with electricity, the generating capacity is changed from diesel to gas,

if the gas pipelines are attacked then power goes off because the power generating facilities have been changed In his own contribution, Chris Ujah, commissioner for Gas Resources in Cross River State, explained that the state government is making efforts to have a gas industrial hub, adding that the government would all it can to ensure it cooperate with NGMC in this respect. “The state government is building a lot of industries tagged Ayade Corridor”, he said, Layi Fatona, managing director of Niger Delta Petroleum Resources was of the view that for sustenance and maintenance of gas infrastructure in the country, there must be infrastructure before maintenance. He stated that any investors who invest in gas infrastructure since it is an expensive venture will definitely provide a space for protection, “just as it is in the oil business today, onus will be on the owner of the asset to ensure that they are protected.”

Nigeria’s 0.14 kWh per capita lags peers’, shows distressed power sector STEPHEN ONYEKWELU

igeria, Africa’s most populous nation lags peers’ in terms of electricity consumption, signalling the power sector is unable to meet available demand in a 182 million people strong economy, data compiled by BusinessDay show. In contrast to Nigeria’s 0.14 kWh per capita and 64.44 metric tonnes (Mt) energy-related CO2 emission, South Africa, Africa’s most industrialised nation-state consumes 4.14 kWh per capita, with energy-relation carbon dioxide (CO2) emission of 427.57 metric tonnes (Mt); Kenya, consumes 0.17 kWh per capita with energyrelated CO2 emission of 14.14 Mt and Indonesia has 0.82 kWh per capita with energy-related CO2 emission

of 441.91 Mt, according to data from the World Bank. “Electricity plays an essential role in modern life, bringing benefits and progress in various sectors, including transportation, manufacturing, mining and communication sectors” Solarin Sakiru Adebola, of the College of Arts and Science, Universiti Utara, Malaysia said in a paper ‘Electricity Consumption and Economic Growth : Trivariate investigation in Botswana with Capital Formation’. “Electric power is vital for economic growth and quality of life not only because it fosters the productivity of capital, labour and other factors of production, but also that increased consumption of energy, particularly commercial energy like electricity signifies high economic status of a country” Adebola said.

Five years ago, Nigeria set off a comprehensive reform of the power sector, in a privatisation move that was acclaimed by players in the space as one of the boldest reforms but faced by insufficient cash flows due to losses along the power value chain. This reform was designed to achieve two things: fix chronic efficiency gap in old public utilities and at-

Olusola Bello, Team lead, Analysts: Kelechi Ewuzie, Isaac Anyaogu, Graphics: Joel Samson.

tract private capital needed to drive the sector to meet Nigeria’s fast growing electricity demand. Half a decade later, the power sector has not recovered from one of its biggest challenges, ‘shortage’. From gas availability to electricity units delivered to the end-user, there are severe constraints that not only threaten the viability of the sector, but practically repel

fresh funding and investment across the value chain. This has led to sub-optimal utilisation of generating capacity, inadequate transmission infrastructure and distribution losses and low rates of collection. To illustrate this, over 3, 000 MW of generating capacity is stranded due to gas constraints. Transmission capacity can transport 50 – 60 percent of installed capacity, while collection losses range between 40 – 60 percent at the electricity distribution companies (Discos) level. People with deep knowledge of the sector say insufficient cash flows have significantly impaired the ability of electricity generating companies (Gencos) and Discos to recover all costs and generate appropriate return on investment. BusinessDay investigations show that to make

Nigeria’s electricity market competitive some urgent steps must be taken to push reforms in the sector further along market oriented lines. It is widely accepted by people with knowledge of the energy sector that electrical energy plays a vital role in modern economies, not only because it affects various aspects of the economic activity but also because it has a massive influence on a country’s efforts towards long-term economic growth and promotes the quality of life. Forecasts for the period 2011-2020 indicate increasing consumption of electricity and positive growth rates from 2013. Policy makers will need to liberalise the electricity sector and to turn the economy towards renewable and natural gas sources in order to reduce imports of oil and coal dependency.

Email: energyreport@businessdayonline.com, Tel: +234-8023020011; +234-7037817378; +234-8036534708

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Energy Report

Why Nigeria should pay attention to global electric car market ISAAC ANYAOGU

he number of electric and plug-in hybrid cars on the w orld’s roads exceeded 3 million in 2017, a 54 percent increase compared with 2016, says the latest edition of the International Energy Agency’s Global Electric Vehicles Outlook, hence oil producing countries including Nigeria should pay attention. Perhaps what is most troubling is the fact that some of the world’s biggest crude oil markets is turning to alternatives, especially China. Yet the club of oil producing nations seem preoccupied with shortterm market prospects. China remained by far the largest electric car market in the world, accounting for half sold last year. Nearly 580,000 electric cars were sold in China in 2017, a 72 percent increase from the previous year. The United States had the secondhighest, with about 280,000 cars sold in 2017, up from 160,000 in 2016. Nordic countries remain leaders in market share. Electric cars accounted for

Electric car

39 percent of new car sales in Norway, making it the world leader in electric vehicle (EV) market share. In Iceland, new EV sales were 12 percent of the total while the share reached 6 percent in Sweden. Germany and Japan also saw strong growth, with sales more than doubling in both countries from their 2016 levels. However, electric mobility is not limited to cars. In 2017, the stock of electric buses rose to 370,000 from 345,000 in 2016, and electric

two-wheelers reached 250 million. The electrification of these modes of transport has been driven almost entirely by China, which accounts for more than 99 percent of both electric bus and two-wheeler stock, though registrations in Europe and India are also growing. Charging infrastructure is also keeping pace. In 2017, the number of private chargers at homes and workplaces was estimated at almost 3 million worldwide. In addition, there

were about 430,000 publicly accessible chargers worldwide in 2017, a quarter of which were fast chargers. Fast chargers are especially important in densely populated cities and serve an essential role in boosting the appeal of EVs by enabling long-distance travel. Last month, the Indian government said it will start selling only electric cars by 2030, a pronouncement with grave implications for Nigeria who currently supplies the Asian country

12 percent of its crude oil volumes. The growth of EVs and other alternatives to fossil fuel has largely been driven by government policy, including public procurement programmes, financial incentives reducing the cost of purchase of EVs, tightened fuel-economy standards and regulations on the emission of local pollutants, low- and zero-emission vehicle mandates and a variety of local measures, such as restrictions on the

circulation of vehicles based on their pollutant emission performances. The rapid uptake of EVs has also been helped by progress made in recent years to improve the performance and reduce the costs of lithium-ion batteries. However, further battery cost reductions and performance improvements are essential to improve the appeal of EVs. These are achievable with a combination of improved chemistries, increased production scale and battery sizes, according to the report. Further improvements are possible with the transition to technologies beyond lithium-ion. This is why oil producing countries should take note. Despite Nigeria’s stated intention to diversify its economy from crude oil, the commodity still accounts for over 80 percent of the revenue. The oil sector employs less than 1 percent of the populace and while it is only now beginning to gain traction, the agricultural sector employs 50 times more. Yet more brain matter is dissipated on the oil sector at the expense of others. This policy would no longer be relevant in the new scheme of things.

PNG achieves one million man-hours LTI-free operation OLUSOLA BELLO

odern day best g l o b a l p ra ctices in operations of companies in the oil and gas industry lay emphasis on both human and material safety, in his light, PNG Gas Limited, a subsidiary of Gas Train Limited, has achieved a safety record of one million man-hours without lost-time incident (LTI) at its Egbaoma Gas Processing Plant. Lost Time Incident or Injury (LTI) is a measure of injury or incident that occurs on a job that is capable of preventing a worker from performing or continuing with his or her task resulting in downtime in the operation. It is an oil and gas industry benchmark that evaluates adherence to safety and environmental requirements during operations. The operational safety milestone achieved by PNG Gas in January 2018 is a demonstration of its conformity with oil and gas industry best practices. This achievement, the management said, was made possible through the joint efforts and hard work of the entire workforce.

Bolaji Ogundare, chairman of the board of directors, while commenting on this achievement said: “This achievement reflects how best we have excelled. It shows the degree of excellence in our strategy, organisational leadership, process systems and health, safety and environment (HSE) culture, despite the business challenges in today’s economy.” He enjoined the management to maintain this record. Also speaking in relation to this development, Charles Osezua who is the promoter of Gas Train and a director in PNG Gas Limited, and championed several gas projects in Nigeria, stated that this safety landmark was achieved by God’s grace and the well thought out process the company was built on.” He commended the effort of the management of PNG for their adherence to the industry procedure and practice that ensured the investors’ vision was kept alive. Osezua who is also the chairman of Owel-Linkso Group said, “We are excited to have partnered with African Capital Alliance (ACA) and look forward to achieving the objectives of Gas Train. Furthermore, he reiterated that ACA is still ready

to support future Gas Train project development initiatives for the greater development of our country”. Gabriel Illenreh, managing director of PNG, in his remark said the total man-hour that culminated in achieving the one million zero LTI operation is the overall man-hours for carrying out the engineering, procurement, construction, installation and transiting into operational phase of Eg-

Egbaoma Gas processing plant

baoma Gas Processing Plant. He further stated that through strategic thrust, with cautious innovative efforts, PNG could achieve this milestone. PNG is enthusiastic to leave its footprints in the energy space under his visionary leadership, Ilenreh added. He also expressed gratitude to the company’s shareholders for their unwavering support. PNG’s business model is structured with the aim of

protecting the environment and creating value from our natural resources through its operations, Ilenreh said, adding that the company converts waste (gas that ordinarily could have been flared) to wealth. The company processes gas from its raw state into finished products such as liquefied petroleum gas (LPG), Propane, Condensate and Lean Gas. PNG’s operation empowers over 500 people in her

value chain. It also expects to be producing about 78 tons of LPG per day, 57 tons of propane, 315 barrels of natural gas liquids and 25 million standard cubic feet of lean gas daily. The Wet Gas feed to the gas plant is from the Platform/Newcross JV marginal field (OML 38) The managing director also noted that another key success factor is that the company holds Community Affairs, Safety, Health, Environment and Security management in a holistic manner. PNG believes that an efficient CASHES culture is the fulcrum of interactions among people, environment, equipment, processes and procedures in the organization. The incorporation of safety into PNG’s core values was made possible through her vision for its valued personnel and assets. This achievement today was not without challenges, but the lessons learnt are immeasurable. However, persistent commitment to internalising HSE process driven policies with the cooperation of our team has made this accomplishment possible. PNG looks forward to establishing a lasting presence in the gas industry space,” Ilenreh said.

BUSINESS DAY

Tuesday 12 June 2018

EDUCATION

Weekly insight on current and future trends in education

Primary/Secondary

Higher

Human Capital

Absence of fit-for-purpose university curriculum stifle graduates competitiveness Stories by KELECHI EWUZIE

uman resource professionals in corporate organisations have identified Nigeria’s faulty academic curriculum especially at the university level as a major reason employers faced in their search to identify Nigeria graduates with requisite skills that match their requirement. In the developed world, tertiary institutions are identified as centres for societal development. This is because ideally, their syllabi tie in with what employers of labour seek, and they constantly provide avenues for students to develop their latent skills so as to measure up to current demands by both the public and private sectors. Those who know in the education space after a careful appraisal of Nigeria’s curricular agreed that the country has a faulted educational system that is not functional to the needs of the people and the economy. They opine that Nigerian universities’ graduates are not equipped to impact positively

Students listening to presentations

on the present day economy, adding that sadly most graduates are not trained to meaningfully engage in the development of Nigerian economy. There is a need to work on how students are taught, there is a science of learning, and universities should bring it to bear on the way students are

instructed says Chinedu Duru, a human resource practitioner. According to him, “The whole concept of a curriculum change would, no doubt, provide human capacity development that addresses key gaps, especially amid the current socio-economic challenges involved in graduate employ-

ment. National Bureau of Statistics, NBS in its latest report on unemployment, shows that 7.53 million out of Nigeria’s labour force of 85.08 million were unemployed. Duru said the clamour for a change in curriculum more than before has become nec-

STEM development: JCI set to honour ten young persons

unior Chamber International (JCI) Nigeria, has announced the names young personalities who have emerged award honorees of the 2018 edition of the annual JCI Ten Outstanding Young Persons (JCI TOYP) of Nigeria Awards. The ten honorees were selected from the different categories of the awards programme that include; Personal Improvement and Accomplishment, Academic Leadership and Accomplishments, Medical Innovations, Scientific and Technological Development, among others. Among the list of those to be honoured at the awards ceremony slated for August 25, 2018 Oluseun Onigbinde, co-founder of BudgIT - a civil start-up that has brought more openness and transparency in gover-

nance and Kechi Okwuchi, one of the two survivors of the popular Sosoliso plane crash, who went on to earn a first class degree in the University of Thomas Houston, Texas. Others include: Stanley Arinze, Omowunmi Ogunrotimi, Charles Immanuel Akhimien, Caleb Adebayo, Nasir Yammama Reginald Aziza, Jacinta Uramah and John Oluwadero. While Oluseun Onigbinde emerged top in the Political, Legal and Government Affairs category of the awards programme, Kechi Okwuchi won in the personal improvement and accomplishment category. Oluwatoyin Atanda, chairperson for the award initiative said this announcement comes months after a rigorous and thorough process, adding that the eventual process leading

to the choice of the finalists can best be described as a thorough one stating that the quality and pedigree of the honorees bears testimony to the awards initiative. Atanda said the ten finalists that were shortlisted meet all requirements stipulated and are well deserving of the prestigious awards. Atanda then congratulated the honorees ahead of the awards ceremony stating that the recognition comes as a result of their breathtaking innovations, success and leadership skills in their different fields of endeavour. The list of award judges whose selection activities determined the eventual honorees include Isaac Orolugbagbe, Founder/Director, Red Star Express Plc; Ndidi Edozien, founder, Growing Business Foun-

essary, especially now that the country is faced with a dearth of competent and skilled human resources required to steadily address the critical issue of unemployment in the nation. “Skills gap remains a burning issue in the structural academic, vocation and planning challenges which face the government today. Unfortunately, Nigeria professors and lecturers continue to teach students the same thing, year in year out, expecting a different result that is not possible. We don’t consider the dynamic nature of the economy”. “Regrettably, products of our tertiary institutions are challenged by the fact that employers have to commit additional resources in training them. This unfortunate state has existed in our country for long and there is now an urgent need to raise far-reaching actions to stem the tide of this situation which consistently hampers progress in many facets of endeavour,” Duru said. Curriculum is the vehicle through which knowledge is transmitted; policymakers should therefore make every effort to draw up a practicable curriculum. This will in the

long run provide educational, cultural and intellectual enrichment which comes with social benefits, development and progress. If Nigerian graduates are to compete favourably on a global scale, there is the urgent need for those at the helm to structure a curriculum that includes cutting-edge content which can produce excellence in information technology. Isaac Adebayo Adeyemi, former vice chancellor, Bells University of Technology, Ota advocated for the introduction of a practicable business management education style to foster an uncompromising standard of personal and ethical behaviour in students, who would lead the nation’s future workforce. To him, “The main criterion by which products from universities around the world are assessed is through the relevance of their curriculum to the goals of corporate organisations that would engage their services in the long run. “This is not a management system that is practicable within a sustainable business agenda, but a way of meeting corporate business goals,” he said.

‘Teachers must build skills required to engage 21st students’ dation; Alexander Goma, managing director, PZ Cusson Plc; 2018 JCI President, Adeniyi Balogun; Head of Department, Chemical Engineering, Federal University of Technology, Minna, Muktar Abdulkadir; executive director, Fate Foundation, Adenike Adeyemi; and Prince Lekan Fadina. It would be recalled that the award process began with nominations by members of the general public, followed by various stages of screening, selection and voting during which the long list of nominees were narrowed down and then this final 10 selected. The JCI Ten Outstanding Young Persons (JCI TOYP) Programme is a Junior Chamber International initiative to formally recognise young people who excel in their chosen fields and create positive change.

he need for Nigerian teachers to constantly retool themselves to be able to engage effectively with 21st century students has once again been reiterated. To remain relevant in the industry they play in, teachers who are molders of future generation in focusing on the 21st century learning outcome must be skilled in critical reasoning, problem solving, creativity and imagination, communication and collaboration, digital literacy, citizenship, students’ leadership and personal development. Babs Olugbemi, founder, Positive Growth Africa founder, (PGA) a not-for-profit organisation and author of the teachers’ fortress while speaking at a 6-hour capacity enhancement programme for teachers and school leaders from Redeemer’s International Schools, Apapa, Lagos, observes that students of the 21st century cannot learn from the teachers with the 17th century

skills. Olugbemi said the capacity development training is the maiden engagement with teachers under the Individual Social Responsibility (ISR) platform with the sole aim of taking strength-based, leadership and patriotism education to schools and the youths. Olufunke Owolana, head teacher, Redeemer’s International Schools commended the organisers of the capacity development training programme for its relevant and rich contents. She urged the teachers to take learning as a continuous exercise and to participate fully in the 60days post-event activities and impact assessment exercise. Yomi Olugbenro, a partner and West Africa Tax Leader with Deloitte, partnered with the PGA for the training. Other presenters, Olumide Osunyomi and Christy Oladeji spoke on personal-finance management and teaching techniques respectively.

BUSINESS DAY

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EDUCATION

Tuesday 12 June 2018

INSIGHT

University education in Ghana, an undergraduate perspective Agnes Iboroma

n recent years, Report shows a steady increase in the number of Nigerian students who yearly sojourn to neighbouring West Africa countries like Ghana and Benin Republic in search of tertiary education. This realisation is perhaps made even worse with the fact that it does not appear as if the end is in sight, at least not anytime soon. Schooling abroad is expensive. To be candid, the cost has been on a rise, particularly since countries like Nigeria are now major exporters as it were of students that are in search of admissions. Using myself as an example, I wrote Jamb, WAEC and every other examination that was required to get into the university. After three trials, I wasn’t admitted into the University, not because I wasn’t smart enough, or that I didn’t get the required scores. Far from that, I had good grades in every examination I had written. The frustration of not getting in began to make me feel worthless at some point. A sentiment that a lot of students in Nigeria will be able to attest to. It appears as if universities in Nigeria no longer admit students based on their merit but rather, on a man- know -man basis.

Students’ perspectives may defer from mine on this, but that does not eliminate the question of why it is so difficult to get an admission or a qualitative education for that matter in the single most populous black nation in the world called Nigeria. Now don’t get me wrong, being a student in Ghana, I sort of get the feeling like our much smaller and supposedly less sophisticated neighbours have a much grasp of things than we do. At least in the education sphere. Now if I were asked to choose between the education system in Ghana and Nigeria which is better, I honestly would not have a direct answer because both have their pros and cons. I never got the opportunity to study in any Nigerian university, but I was privileged to have visited at Ahmadu Bello University Zaria when I went for my first post UTME exam, one of the many examinations one has to go through before being admitted. Seeing that I cannot say which is better, I am going to compare a few issues. Admission process: The mere process of gaining admission into any university in Nigeria is so tedious thereby preventing genuinely qualified candidates from gaining admission. In Nigeria today, we seem to be emulating a lot from the westerners from the way we dress, to generally our

L-R: Olumide Osunyomi, a personal finance advisor; Yomi Olugbenro, partner and tax leader with Deloitte; Olufunke Owolana, head teacher Redeemer’s International Schools Apapa; Babs Olugbemi, Author, “The Teachers’ Fortress”; Hannah Babs and Peter Ehigiator, directors at Positive Growth Africa; Christy Oladeji, Owner, UTOL Schools and Kendra Asimi, deputy head teacher, Redeemer’s International Schools, Apapa; at the Capacity Enhancement Programme organized by Positive growth Africa for the teachers recently held in Lagos.

entire way of life but I honestly do not know why we cannot emulate the way they run their educational system. In Nigeria one has to write numerous examinations before one can be admitted not saying that is a guarantee that you are going to get admitted anyways, as compared to Ghana and other countries abroad where all you have to do is apply to the school of your choice, write an essay on why you would like to study and then get interviewed. So whether you get in or not is dependent on your perfor-

mance rather than some other reasons. So like me what I couldn’t achieve in three years of applying here in Nigeria, I did in just one trial applying to a university in Ghana. A lot of people say students from Ghanaian universities are lazy, but I beg to differ, universities in Ghana are more considerate, they make their lecture times very convenient for the student, and make the learning environment conducive for students; you never find a lecture room containing more than the

required number of students, as supposed to universities in Nigeria where the lecture hall are over packed and you find students sitting on the floor or even standing due to lack of chairs. The nemesis of regular Strike action: It is quite disheartening for a student that applied to study for a four year programme in Nigeria only to end up spending up to five or six years because of consistent academic interruptions occasioned by industrial actions by academic and non- academic unions in

the universities. Most universities in Nigeria lack many learning facilities, for instance I was opportune to have spoken to a graduate from one of the first generation university who studied engineering and had gone to apply for a job at a manufacturing industry. According to him, he was amazed when he saw the big production machineries that were being used because he had only seen them in pictures from his text books and he never thought they actually existed, whereas in Ghana, students are very much conversant with the various equipment and tools that are related with their studies because they are presented with practical opportunities interact with those equipments. I had a discussion with a friend who said that most Nigerian students run to Ghana to study because they are unable to pass JAMB and Ghanaian universities just require you to have your six credits in WAEC , but that is not true because speaking from my school and other schools I have had the opportunity to interact with their student, after your first year and you don’t meet up to the school’s academic standard, you will be asked to withdraw, so before you get to your final year, you would realise not everyone that started with you are still in the race.

Ogun, Rivers students lead in Cowbellpedia qualifying exam FGGC Gkoko Alumni donates hostel facility to alma mater

gun State students led the rest of the states in the country as the National Examination Council, NECO released the results of 2018 Cowbellpedia Qualifying Examination results with 15 candidates in the second stage. Rivers State followed with 10 candidates while Osun State and the Federal Capital Territory, Abuja had five candidates each. Further breakdown of the results shows that Ambassador College, Ota, Ogun State, which produced champions in both categories in 2016, topped the school chart with nine students in the second stage, while Graceland International School, Port Harcourt, Rivers State came second with seven students. Also, there were three perfect scores in the junior category from two schools. According to the results released, the students with 100 percent scores are Favour

Okarike and Benny Sampson from Graceland International School, Port Harcourt, Rivers State; and Chiedozie Okezie Uzochukwu of Nigerian Tulip International College, Abuja. About 40,000 students sat for the examination conducted on Saturday, February 17, 2018 to participate in the competition sponsored by Cowbell, the flagship brand of Promasidor Nigeria Limited. The junior category had 21,000 candidates, while the remaining were senior secondary school students. At the end of the qualifying round, 108 students (54 each for junior and senior categories) will proceed to the second stage, which is the Television Quiz Show. The second stage, which is in a quiz format, will involve the candidates going through the preliminary, semi-final and final rounds. The show will be broadcast in 13 weekly episodes on major television stations

across the country including DSTv. Anders Einarsson, managing director, Promasidor Nigeria Limited, acknowledged the support of NECO, State Ministries of Education across the country, school principals, teachers; media and partner agencies on the initiative over the years. He opines that the company has demonstrated its unwavering commitment to the project by significantly increasing the prize money for both winning students and their teachers. According to him, “This year’s prize money has been doubled as the ultimate winner in each of the categories will be rewarded with N2,000,000 (Two million Naira) plus an all-expense paid educational excursion outside the country, while the first and second runners-up will receive N1,500,000 (One million five hundred thousand Naira) and N1,000,000 (One million Naira) respectively”.

n demonstration of its belief in a multi-pronged effort to encourage hands-on involvement by past students with their alma mater, Federal Government Girls College, Gboko, Benue State, Class of 1991 has formerly handed over a newly renovated hostel block, Charity House, to the school’s management. The project undertaken and funded by the Old Girls Association to commemorate their 25th anniversary of the association and as a support to boost accommodation problem as some of the hostel was no longer safe for the young girls living in it. Chisom Ajaero, Class of ‘91 Project Management Team lead while speaking on the occasion of the handing over said as we commemorated the 25th-year milestone since leaving school, we learnt of the deplorable and unhygienic conditions of some hostels and welfare facilities. “We were moved to tears

as to what had become of our great school and were confronted with the magnitude of neglect of this once prestigious learning institution and even more importantly, the imminent threat to healthy living and academic achievements of students in the school”, she said. Ajaero observes that whilst recognising that the responsibility to improve and maintain living and learning conditions in the school is not our association’s primary responsibility, the current situation serves as a call to action to give back to this learning institution, which we are products of and this we did with selfless contributions from our sisters, which has culminated to this joyous occasion. Grace Danbaba, Principal, FGGC Gboko, in her address expressed joy for the project, which she said was a seed that was nurtured in the hearts of the students and had thus grown into the numerous intervention proj-

ects being carried out by the alumni. “We salute the courage of our ‘Gboko Angels’ from the class of 1991 set, especially with the very high standards they have set with this project. We are indeed appreciative of the giving spirit because lasting happiness does not come from what you get but from what you give to make other people’s lives better.” “I also want to emphasise here that the Federal Government is committed to providing quality education to the masses through its determination to sustain the unity colleges evidenced by the huge current and capital expenditure expended on the 104 colleges yearly.” Frank Omale, a director with the Federal Ministry of Education also commended the Class of ’91 alumni for their selfless giving and assured the students that the government takes education seriously and will continue to do everything to improve the quality of education and infrastructure.

Tuesday 12 June 2018

C002D5556

BUSINESS DAY

In association with

Apple Island project: What Banana Island residents’ action tells Nigerians …Lessons for VGC, Osborne Foreshore, Lekki Phase 1, others Stories by CHUKA UROKO

hen on Friday last week a detachment of soldiers ‘invaded’ Banana Island, ostensibly on the orders of the Nigerian Army Properties Limited (NAPL), to take over the estate’s children’s playground and the adjoining recreational area to create an access to their proposed Apple Island project, it was not lost on the residents of that highbrow neighbourhood that trouble was lurking right in their house. Apple Island is to be developed on 43 hectares of land to be reclaimed from the Lagos Lagoon adjacent to Banana Island, Nigeria’s most exclusive and expensive real estate destination. The proposed estate which has the German construction giant, Julius Berger, and Van Oord as main contractors, and Tauraf International Limited as developer, is planned as a mixed-use development that will deliver 100 housing units. Majoroh Partners, the architectural firm that designed the island, says a link-bridge will also be constructed on the island. But residents of the adjoining Banana Island did not see the workability of an access to the new Island without an encroachment that would involve creating a thoroughfare through their estate. The visibly enraged residents were surprised that the army and its representatives thought it possible for them to forcibly enter the estate, take over private property and build an access to their project. When Tukur Burutai, the Chief of Army Staff (COAS) showed up at the project site Saturday morning, apparently, to flag off construction of the new island, the Banana Island residents did not mince words in telling the army general that building access to their project

through the estate would not work. “Nobody can come here to do a development of this magnitude without letting us know. We are not saying you should not do your development but access to that development is going to be a problem. “Besides, this road is already servicing two estates within. So, allowing another estate use the same road will not augur well for residents of this estate,” Chudi Ubosi, the chairman of the resident’s association told Burutai. The fear was that if the invading army and their collaborators were allowed, they would build a highway and thoroughfare right in the middle of the estate, deny children of their playground, and open the estate to environmental hazards which follow water displacement that have been the nemesis of some locations not far from the estate. “This island would lose its ‘virginity and sanctity’ if we allow this kind of development to happen here. We pay so much to live here and to throw this place open by giving access to this development means we have lost the exclusive nature of the estate which we paid for ”, said Wahab Dosumu, a resident.

“If the army has become commercial estate developers, why Banana Island? If it must be this Island, fine; there are still empty plots of land here which they can buy and develop. Why the interest in that particular area we have planned to build our boat club house? This is an invasion and we must resist it”, the angry resident fumed. Confronted with all these, Burutai was humbled enough to tell the residents that the army would not, for whatever reason, go against their interest. “We will resolve it”, he assured, adding, “nothing is going to happen here without due process; maybe my people are too proactive by doing what is already on ground, but be rest assured that nothing is going to happen against your interest”, he assured. It was on this note that Burutai ordered NAPL and its collaborators to look for an alternative access to the proposed island project, laying to rest what many had thought would be a futile and risky resistance by the residents of the elite estate. In many ways, it has been a worthwhile and rewarding protest that has not only demonstrated that a lot of things are possible in Nigeria if the will to ‘fight’ a just cause

is there, but also served as a huge lesson for other estates in Lagos such as Victorian Garden City (VGC), Lekki Phase 1, Parkview Estate, and Osborne Foreshore where residents are at the mercy of seasonal inclement weather conditions arising from the unwholesome activities of land speculators and grabbers. The Banana Island residents have shown that most, if not all, the injustices and bad leadership that Nigerians have endured for ages in this country could be stopped if only the people, using their citizen power, can stand up and say NO and stick out their neck to defend that resolve. Though some people see the action of the Banana Island residents as a manifestation of elitist and protectionist instinct, the take-away in all of these is that they have been able to chase away an invader who was a mission to violate the peace, quiet ambience and exclusivity of their estate. July 12, 2017 remains a red letter day in Lagos State when ‘the rich also cried’ from the devastating impact of flooding that submerged all the highbrow neighbourhoods including Victorian Garden City (VGC), Lekki

Phase 1, Parkview Estate, and Osborne Foreshore as much as the slum areas. All these are victims of uncontrolled land reclamation and grabbing which is what NAPL and its sponsors are alleged to be out to do. The residents of these endangered estates can also rise to protect their environment from further degradation by resisting land grabbers who have caused them untold hardship and pain. BusinessDay checks show that there is no such thing as the so-called Apple Island on the Lagos Masterplan. Besides this, it remains to be ascertained if Tauraf, the main sponsor or its front, NAPL , has carried out the necessary Environmental Impact Assessment before attempting this Aple Island project. “It is very encouraging that Burutai appreciated the point immediately that there was no due diligence carried out by the sponsors of the socalled Apple Island Project, and he was responsible and quick to dissociate himself and the Nigerian Army from such a controversial project that could have caused breakdown of law and order”, an estate developer, who did not want to be named, told BusinessDay.

Why has Nigeria’s Real Estate Sector been in recession for 9 consecutive quarters?

he end of first quarter 2018 marked the 9th consecutive negative growth quarter for the Nigerian real estate service sector and its worst quarter in over 5 years. Why? To begin with, the Nigerian Bureau of Statistics (NBS) tracks the performance of the sector by recording the sum of fees and commissions for services rendered through data retrieved from tax authorities (FIRS) and also through informal household surveys. For the most part, the figures indicate that the profitability levels of many real estate service firms currently trading is poor and this may be largely driven by a slowdown in market transactions during the recession, especially in the luxury segment. The sector has been in the red since first quarter of 2016 and contracted by -9.40 percent in comparable quarter of 2018, worse than the -9.26 percent recorded in fourth quarter 2016 at the heart of the recession. This means that the real estate service sector is the worst performing economic subsector in over two years, after a few sub-categories in the Manufacturing sector including Post and Courier Services and Motor Vehicle & Assembly. The construction sector, which the NBS defines as the value of work done in the construction of buildings, civil engineering and specialised construction activities with consumption including cement, metal/iron bars, wood, gravel, stone and more, noted a relatively better but still poor performance. It was in recession from second quarter 2015 to fourth quarter 2016 but swung to growth in the first quarter of 2017 as increased access to foreign currency supported a minor reduction in costs within the highly import-dependent sector. This trend, however, was not sustained as the sector slipped back into negative growth territory with -1.54 percent recorded in first quarter of this year. As the Nigerian economy recovers from a recession, the real estate service and construction sector are refusing to leave the negative territory.

BUSINESS DAY

Tuesday 12 June 2018

How online platforms are changing Nigeria real estate industry ENDURANCE OKAFOR

nline property platforms in Nigeria are making transactions among, developers, property owners, prospective buyers, and potential tenants easier, compared to the cumbersome processes witnessed few years ago. Propertypro.ng (formerly ToLet.ng), Hotels.ng, myPadi. ng, and Nigeria Property Centre are some of the property online platforms that render different services, like leasing of landed property, house & office acquisition, hotel accommodation, and provision of hostels for university students. “Think back to the 80s and 90s, if you were going to purchase a property you would spend many days trying to find a decent agent who will charge you high fees to take you from property to property in only a few locations -meaning he was limited,” Yemi Johnson, the Chief Operating Office of Hotels.ng told BusinessDay. Statistics have shown that for 7 out of 10 every Nigerian feels house hunting is painful, as it usually starts with calling friends of friends or walking long distances with a road side agent who more often than not do have direct access to landlord thereby making one pay multiple ‘agent’ fees. Property owners on the other hand had it challenging to get regular streams of new tenants, as the prospective tenants are not able to eas-

ily have knowledge of a vacant apartment, office space and vacant shop. Nnamdi Chineme, CEO of Nigeria Property Centre said one of the reasons his company was as a result of his varied experience in renting a flat in Nigeria in 2008 and the UK in 2009. He said it took about six months to find a flat in Lagos while in the UK he found one in just a week. The difference he said was down to the use of technology. “Historically, in Nigeria, the speed of finding a property to rent or buy was mostly dependent on the estate agents the person knew and the network of those estate agents. Today, with the use of technology in the form of Property Portals, people can find a property as much as ten times faster,” Chineme said in an email response. Joel Amawhe ,CEO of myPadi.ng said the hassles that were accompanied with house haunting are becoming history especially in the student housing space where myPadi. ng operates as they are leveraging the internet to make house hunting seamless and accessible to students across Nigeria’s tertiary institutions. “Now, a student could seamlessly find and rent an accommodation in no time whenever and wherever he/ she may be as we provide critical information such as photographs, reviews & ratings, pricing, etc about available spaces for rent,” Amawhe said. Expert in the sector said the

involvement of technology in the Nigeria real estate and hospitality industry has led to increased consumer demand, cheaper costs, and a bigger market that allows for a more robust value chain which create a lot of jobs. The bigger market comes from making the properties easily accessible to consumers which allow for economies of scale for the businesses which result in a price drop. “The internet and smartphones opened up the economics of real estate and ushered in a bigger market of property buyers, led to increased competition amongst real estate agents which led to lower fees and a variety of

apartments to choose from which is good for the consumer and the same thing goes for hotels,” Johnson of Hotels.ng concluded. Although, some real estate sector observers raised issues around how prospective property buyers still have to go in person to survey the property which they had seen the visuals online, and as such see the online platform as almost the same with the regular agent system. Meanwhile, a survey by BusinessDay showed most property agents are registered with companies that have online platform, which creates an agreement for the agents to provide the various vacant

properties to be listed on their websites while the online platform companies help with the customers to fill the vacant property. The online market place in Nigeria is not only limited to the real estate alone, it spread across other sectors like retail, education, job placement & employment, media & entertainment, hospitality, and finance. This has led to the existence of many tech stat ups in Africa’s largest economy. This reflected in a report by Global System for Mobile Communications Association (GSMA) where Nigeria was second African country with highest technology hub after South Africa with Lagos

taking the first position among the cities with highest tech hub in the continent. Although service (in terms of connectivity), power failure (energy to power the system) and cost (of obtaining data) are the challenges that influence and determine the effective use of the internet for real estate transactions in Nigeria, as compiled from BusinessDay survey. An analyst familiar with the sector who preferred not to be quoted said the government does not in any way regulate the use of the different medium and the various platforms where Nigerians search for properties online and as such does not portend any threat to its use or non-use.

Cadwell launches LET initiative, an opportunity for property buyers, investors CHUKA UROKO

adwell Limited, a specialist Real Estate entity offers new opportunity for prospective homeowners and investors through the Live, Earn and Transfer (LET) initiative which will allow them live or invest in mansions, villas or townhouses at upscale and secure environments

categorised as ‘Life-Cycle Assets’. The company envisions the initiative as a place for homeowners to ‘Live, Earn and Transfer’ (LET) as it will complete the human life cycle but uniquely, keeps the legacy going. “Insofar as life has become more fast-paced and competitive, we realise that people are busy and can barely keep track of their

loaded work and family schedules let alone plan for the future. All these efforts are clearly geared towards the pursuit of one aspiration or the other, hence there is no other meaningful aspiration than to think wisely and buy into the Life-Cycle LET concept,” the company said in a statement. The LET initiative was born out of the company’s decision to reposition itself

as an Investment-led Company because it believes in the infinite investment nature of Real Estate and as such decided to be the apostles of such message. The real estate company examined the market, identified the imbalance in demand and supply, and came up with a noble idea to correct the market unevenness which effectively made it reshape and rescope its product concept and design. The Life-Cycle LET concept is a package that will allow; homeowners to ‘live’ in their homes be it a Mansion, Villa or Townhouse at a prestigious and most sought after secured locations such as S.E & S.W Ikoyi, Banana Island, Victoria Island, Lekki, Ikeja GRA, and Abuja. Secondly, it will enable the homeowners and investors to potentially ‘earn’ annual rental income whilst living in their homes and watch their investments grow in value overtime. This initiative will also create an opportunity for the property owners to ‘transfer’ assets to their loved ones and family members as an

inheritance and have their wealth outlive them. The LET concept by the Lagos-based real estate firm could not have come in a better time, as the concept aims to contribute its quarter in easing the challenges faced by the Nigerian real estate sector. As figures reported by the National Bureau of Statistics (NBS) showed that the sector plunged deeper into recession in the first quarter of 2018. A breakdown of the report showed that the real estate sector contracted by -9.40 percent in Q1 2018 from -5.92 percent in Q4 2017 and -4.12 percent in Q3 2017. The quarter contraction was -6.3 percentage points worse than the -3.10 percent reported in the comparable period of 2017. The real estate firm has the intention to help the new and matured generation find the right path home, perhaps help them build castle of Life-Cycle Assets that will enable them to finish well. As statistics showed that the first stage in the life cycle of a real estate buyer/investor occurs between the ages

of 25 and 35. A stage when young adults are coming into their own, getting married, starting families, and growing their businesses; it is no wonder this demography typically accounts for 30 to 40 percent of first-time home buyers globally. “Our advice is to always seek opportunity in Real Estate regardless of the mood of the economy. Nice enough, now the economy is on the upswing, it is therefore the best time to invest. Now is not just the best time to invest, now more than ever before is the best time to invest in Cadwell’s newest and distinguished product - “LET”. It is an excellent opportunity for potential investors and home owners to benefit from a noble concept,” the company concluded. The 21 years-old company is positioned to be the market leader in developing Ultra Luxury structures such as Residence (Apartments & Homes), Retail (Office Block & Commercial Outlets) and Residences (Hotel Apartments & Suites) for Investments through Partnerships.

Tuesday 12 June 2018

BUSINESS DAY

STRATEGYBRIEFING C002D5556

IDEAS THAT POWER HIGH PERFORMANCE

Rethinking Strategy

‘A desk is a dangerous place from which to view the world’

t is fundamentally wrong to think of strategy in terms of the competition. Strategy is about the customer and how to deliver value to him. Two key words stand out here: the customer and value. That is where I will like to begin this discourse. The average business executive today claims that his organization is customer oriented. But many times the very word, customer has in recent times become one of the most ambiguous in management literature. But, clarity of understanding of who the customer really is defines the beginning of a successful strategy. All else is commentary. A working definition might be that your customers are the people or entities that buy your products and services and supply your revenue. That includes any number of actors in a company’s value chain: consumers, wholesalers, retailers, purchasing departments, and so forth. Some companies go as far as to label internal units as customers: Manufacturing is a customer of R&D, for instance, and both are customers of HR But this definition doesn’t apply to every company. For example, the German global pharma giant

defines its customers as research scientists in universities and laboratories around the world. Merck requires its researchers to act like university scientists by conducting basic research, publishing papers, and presenting results at conferences, all with the intent of discovering groundbreaking compounds that can then be commercialized by Merck’s marketing and sales group. As a result of this, Merck’s centralized R&D unit receives the bulk of organizational resources. Consider social media giant, Facebook. Facebook offers a set of development tools and application programming interfaces to developers to help them create web and mobile apps for Facebook platform. When users purchase virtual and digital goods from the developer apps, Facebook receives a fee from the developers for the use of its payment infrastructure. Facebook also offers advertising placements over its website and mobile apps to marketers to help them reach people on Facebook. In 2017, Facebook made $39, 942, 000, 000 from advertising placements and $711, 000, 000 from developer fee. Yet Facebook does not consider the developers or the advertisers

as its primary customer. Facebook business model is not designed to please the developer or advertiser. It is rather designed to satisfy the Facebook user who brings in no revenue! MySpace approach was different, the pressure to drive revenue led the company executives to accept $900 million for a three year advertising deal from Google. When they did their goal shifted from satisfying their over forty million unique monthly visitors to satisfying their advertisers of which Google was chief. They basically doubled the ads on their site which soon became an eyesore, and created a miserable experience for users. The result? The users headed to Facebook and the advertisers went with them! The lesson is that a clear definition of the customer is the beginning of a successful strategy. And it is important to understand that your primary customer may not necessarily bring in the most revenue. He rather may be the one that unlocks the most value in your business. For some businesses, the primary customer will be the end user or consumer of the product or service. For others, an intermediary (such as a reseller or a broker) will be the critical customer to which organizational

resources should be devoted. The emphasis on beating the competition as the essence of strategy is a lousy approach that blinds executives. By failing to grasp this critical issue, too many executives today impose great anxiety on themselves and their subordinates, whose efforts end in failure and frustration. The second issue I will want to discuss is value. According to John le Care, ‘a desk is a dangerous place from which to view the world’. The purpose of every business is to deliver some sort of value but in business value is created and/ or destroyed at the market place, not at the office or in strategy meetings. According to a 2004 survey by Strativity, a global research and consulting firm, 50% of sales-

people don’t know what attributes justify the prices of the products and services they sell. If sales people don’t know what values they are really selling how can they deliver superior results at it? So managers will need to explicitly define and adequately communicate the value they intend to deliver to their clearly defined customers. But again, what is value? How do you determine what value customers are willing to pay for? Within the same market and industry, different primary customers may value different things: Some demand the lowest possible price, others want a dedicated service relationship, and still others are looking for the best technology or brand or other specific attribute. It is the responsibility of the strategist to understand this, create it and communicate it.

Brian Reuben(@brianoreuben) is an advisor on strategy and leadership. He regularly conducts keynote presentations and senior executive workshops with companies around the world on strategy and leadership. He heads BusinessDay Training Was this article helpful? Share your thoughts with us on Facebook @bdtraininglive or email us on trainings@businessdayonline.com

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BUSINESS DAY

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Tuesday 12 June 2018

Markets + Finance

BD Zenith General Insurance improves on key indices ‘Providing proprietary research, commentary, analysis and financial news coverage unmatched in today’s market. Published weekly, Markets & Finance provides all the key intelligence you need.’

...Gross premium written up 12.55 percent in FY’17 BALA AUGIE

Historical Background enith G eneral Insurance Company Limited (ZGIC) is wholly owned subsidiaries of Zenith Bank Plc. General Insurance Company Ltd. is a buy-over of Piccadilly Insurance Company Limited, which was incorporated in 1970. The company is one of Nigeria’s leading financial Institutions. Solvency margin exceeds regulatory threshold Zenith General Insurance Company Limited, one of the youngest in the industry, has a solvency margin of 734 percent in 2017 as at December 2017. A solvency ratio of 734 percent means Zenith General Insurance is able to cover its minimum regulatory solvency requirement seven times over. It also means the company’s assets can cover all its debt, and it has enough money to fund an aggressive expansion plan. Diversified Product Base underpins Premium income

For the year ended December 2017, Zenith General Insurance grew gross premium written by 12.96 percent to N12.55 billion from N11.11 billion the previous year. Gross premium income increased 14.39 percent to N12.80 billion in December 2017 as against N11.18 billion as at December 2016. The company’s strict adherences to corporate guidelines combined with the introduction of market penetrating products are major drivers of revenue amid a tough and unpredictable macroeconomic environment. The insurance company continues to leverage on its trusted brand, responsive service to clients, and development of mutually partnership to deliver quality service to clients. The company’s reinsurance expenses were up 25.93 percent to N4.71 billion in December 2017 from N3.74 billion the previous year. However this did little to affect the company’s net premium income as it increased by 8.73 percent to N8.09 billion in the period under review as against N7.44 bil-

Jim Ovia, chairman, Zenith General Insurance

lion the previous year. With respect to insurance benefits and claims paid out, the insurer’s claims expenses increased by 43.06 percent to N4.85 billion in December 2017 from N3.34 billion the previous year. Underwriting expenses were up 17.29 percent to N1.56 billion in the period under review from N1.33 billion as at December 2016. Claims expenses of in-

surers in Africa’s largest economy have been mounting on the back of foreign exchange movement and awareness on the part of policy holders. Zenith General Insurance is one of the most profitable insurers in Nigeria Zenith Insurance is one of the most profitable insurers in the in Nigeria as its bottom line is larger than

most of its peer rivals. It recorded profit before tax of N4.75 billion in the period under review. Zenith Insurance’s profitability ratio of 37.84 percent in the period under review is also one of the largest in the industry. Net underwriting income increased by 11.73 percent to N9.33 billion in the period under review as against N8.35 billion the previous year. Zenith Insurance’s investment income increased by 57.14 percent to N3.63 billion in December 2017 from N2.31 billion as at December 2016. An increase investment income means insurer used the resources of shareholders in generating higher investment returns. It also means the firm has an excellent asset allocation strategy. Management expenses were up 14.08 percent to N3.32 billion in the period under review from N2.91 billion the previous year. Zenith Insurance Maintains Efficient Underwriting Performance validates Zenith Insurance’s combined ratio (CR) increased to 79.29 percent at as at December 2017 from 41.75 percent recorded the previous year. A ratio below 100 percent indicates that the company is making underwriting profit, while a ratio above 100 percent means that it is paying out more money in claims that it is receiving from premiums. Even if the combined ratio is above 100 percent, a company can potentially still be profitable because the ratio does not include investment income. The combined ratio is calculated by taking the sum of incurred losses and underwriting expenses and then dividing them by earned premium. Zenith Insurance’s favorable combined ratio otherwise known as policy holder dividend resulted in a real

BD MARKETS + FINANCE (Business Team lead: PATRICK ATUANYA - Analysts: BALA AUGIE and LOLADE AKINMURELE)

underwriting performance of N2.32 billion as at December 2017. Real underwriting performance is arrived at by deducting combined ratio from 1 then multiplying the answer by 100. It shows the extent to which a firm has managed claims and underwriting expenses in producing underwriting profit. Z e n i t h I n s u r a n c e ’s claims ratio increased to 60 percent in December 2017 as against 44.75 percent the previous year. In other words, the company spent on claims N60 in generating every unit of premium income. Underwriting expenses ratio fell to 19.28 percent in December 2017 from 17.84 percent the previous year. This firm has spent N19 on underwriting expenses in generating every unit of premium income. Modest Increase in Balance Sheet The company’s balance shows slight positive changes in total assets, net assets and total liabilities, as the financial position as at year ended December 2017. Total assets increased by 1.09 percent to N37.02 billion in December 2017 as against N37.0 billion the previous year. In terms of obligations, the company’s total liabilities shows a growth of 1.72 percent to N13.54 billion in December 2017 from N13.31 billion the previous year. The key drivers of the slight improvement in total liabilities were an increase of 12.35 percent insurance contract liabilities to N9.46 billion from N8.34 billion, 71.90 percent rise in current income tax liabilities. Zenith General Insurance’s shareholders’ fund otherwise known as net assets increased by 1 percent to N23.47 billion in December 2017 from N23.31 billion the previous year.

Tuesday 12 June 2018

C002D5556

BUSINESS DAY

THE BIG HEART DIGEST In association with Delta State Micro, Small and Medium Enterprises Developement Agency (DEMSMA)

Delta to support more businesses in 11 vocations MERCY ENOCH, Asaba

ndications have emerged that more indigent persons in Delta State would be transformed through more plans by the Ifeanyi Okowa administration. These emerged from townhall meeting series embarked upon by the state governor whose tenure enters the final year from May 29, 2018. At least, 11 vocations have been identified by the Delta State Micro, Small and Medium Enterprises Development Agency (DEMSMA) and they include those who are into motor spare parts dealership, those in welding and fabrication, butchers, hair-dressers, and those in road transport sector, amongst others. Shimite Bello, DEMSMA’s executive secretary, in a media chat in her office, said the agency would be empowering more Deltans under these vocations with loans to do their businesses. “There are certain key people we haven’t done enough to because we did a lot of focusing on agriculture based businesses and its value chain. We also focused on market men

Gov. Ifeanyi Okowa

and women especially those in agro sales. We did a lot in cassava, fish farming and the rest of it”, she said. What should Deltans expect in the fourth year of Okowa’s tenure? “Definitely, we know we have not satisfied everybody we need to satisfy. We have done quite a bit, we are still going to try much more to ensure we are not

Shimite Bello

saying , ‘vote us (during the election) before you get more’.. Even before that time, let us also see how we can satisfy you”, she said. “So, one of the things we’ve done is to go to the town hall meetings with the governor and see people lay their complaints, lay their grievances, ask for more certain things. Based on those comments, we sent in a docu-

ment to His Excellency,” she said. She said, “We noticed that since we commenced, we haven’t done much for spare parts dealers. We wouldn’t have known that if we were not in the town meeting to know that there is a particular segment of people we haven’t done things for in this dispensation. So, the governor has made provision so

that we can start disbursing as soon as we get the funds.” “From the town hall meetings, we were able to deduce that except the hair-dressers from the STEPreneurs, we haven’t done much for those who are already established (not STEPreneurs). We are looking at areas where we have not done too much. We’ve identified about 11 different vocations that we are not touching”, she revealed. “Now, we have heard the complaints in Sapele LGA. We’ve looked into our books and found out that really we haven’t done much for butchers. So, all the butchers in the 25 LGAs of the state, we would make provisions for them in these budgetary allocations. We haven’t done much for people in welding; we are making those provisions for them. We haven’t done much for the people in NURTW that is the road transport sector. Some people had put in application to buy Keke (tricycle) and things like that. We have really focused on the agriculture value chain from the SMART agenda and didn’t look in these directions. Now we are looking at some of these other

trades”, she said. Definitely, based on the number of people in this state that are in markets, we are going to be quadrupling what we have done before to ensure it goes round, she disclosed. Bello said what the agency now decided to do is to know the number of markets in the state, number of markets in each LG and the number of markets in each ward. Then, how many people who need to be given loan so that there would be even one testimony in each market. The agency has been giving loan to beneficiaries through associations but she said that with that method, the loan does not go round as according to her, “even in the associations, when you remove one market, you disenfranchise one for the other.” Going forward, she said she would leave that as a blueprint for anybody who would take over her seat - Her successor would be enriched with information on some of the works she (Bello) and her team have done in terms of knowing where anybody is, to make sure nobody feels bad.

and I believe that by now, the commercial banks, the microfinance banks must have confidence in us now, to work with us and the micro-credit agency of the state government. He said the state government funded the first and the second cycles while the third cycle was funded through the partnership between the state and the World Bank through SEEFOR. According to him, World Bank/SEEFOR partnership was as a result they could trust the state’s process of the engagement of the youths. This was even as the governor expressed

gladness that the success story of the first set of the programme was what led to the partnership. He then expressed hope that the commercial banks, the micro-finance banks must have confidence in the state, to work with her and the microcredit agency of the state government. He assured that “We would not relent in our efforts to continually engage our Delta youths in such a manner that will keep hope alive in these very difficult times just as he observed that the difficult times were getting over.

STEP, YAGEP plan gets approval for 2018/2019 cycle MERCY ENOCH, Asaba

elta State Executive Council on Tuesday, May 22, approved the implementation design and expenditure plan for 2018/2019 cycle Skills Training Entrepreneurship Programme (STEP) and Youth Agricultural Entrepreneurs Programme (YAGEP) of the job creation programme under Governor Ifeanyi Okowa’s administration. This is the fourth cycle of the programme since its pilot scheme in 2015/2016. At the induction ceremony of the 745 beneficiaries of the

STEP and YAGEP 2017/2018 which is the 3rd cycle of the programme, governor Okowa had expressed satisfaction over the success of the first and second circle, saying their success story encouraged him to continue with third circle even as he expressed confidence that the beneficiaries in the third cycle would do well “I am truly very excited that I have had this opportunity to talk with you, and because we are confident that you will do well, we are already starting the process of a fourth cycle”, he told the third cycle beneficiaries who gathered at the Orchid

Hotel, Asaba for the induction ceremony. He explained that there would be new introduction in the 4th cycle as communities, religious bodies and other persons would be involved, adding that the executive had commenced the fine-tuning of the cycle, just as he promised it would be approved the next week (Tuesday, May 22). Like the Ekwueme (talk and do) that he is called, his word came to pass as the council gave its approval to the programme’s fourth cycle. Information Commissioner, Patrick Ukah while briefing

newsmen on the outcome of the council meeting said the approval of the 4th cycle of the programme was part of the state government’s drive to create wealth. Gov Okowa had also disclosed of the further plans his administration has for the STEP and YAGEP, saying “We are also looking forward to engaging those who have been trained even before now, but they have not had opportunity to start their own lives; to take them up and have them go through refresher course and to establish them”. We have done three cycles

Editorial coordinator’s corner:

Understanding Delta’s 2018 fiscal direction:

Five small business & investment opportunities in Delta IGNATIUS CHUKWU

DELTA STATE MSME CREDIT PRODUCTS pportunities are being made available for Delta’s willing entrepreneurs with various loan packages. The 10 being run by DEMSMA include: Small Vocational & Technical Credit (SVTC); Leather-Works Credit (LWC); Cold Chaian Micro Credit (CMC); STEP Smart Credit (SSC); YAGEP Smart Credit (YSC); GEEP Smart Credit (GSC); Micro

Retailers Credit (MRC); Business Support Credit (BSC); Agricultural Advancement Credit (AAC); and Cottage Industry Development Credit (CIDC).

soft & hardware technicians, tailors, vulcanizers, shoe makers, plumbers etc. The Facility will only serve micro entrepreneurs in the first instance with the opportunity to scale up.

SMART VOCATIONAL AND TECHNICAL CREDIT (SVTC) Product Description This credit product plan is designed to support the asset acquisition and cash flow requirement of MSME such as auto mechanics, electricians and electronics installations service providers, mobile handset repairers, computer

Who Qualifies Individuals and cooperatives that have the capacity to run their chosen enterprise in accordance with DEMSMA lending framework; Non Loan defaulters /On time Payers; It will be an added advantage if such individuals or cooperatives have run their enterprise for at least six months; ability of

beneficiaries to demonstrate efficient business projection and repayment plans. Features/Requirements Beneficiaries under this programme must be skilled artisans as defined by DEMSMA Loan Assessment Guidelines; Individuals will get a maximum of N250, 000(Two Hundred and fifty Thousand Naira) only each, subject to technical determination of the scope of business and cash flow requirement; Beneficiaries must provide acceptable guarantors in line with DEMSMA Risk

Management Framework ; the loan tenure is between 6 months and 1 year subject to Business Asset Conversion Cycle. The moratorium is between 1 to 3 months subject to needs assessment. Interest rate is 9% per Annum (Subject to fund provider). The facility will target largely youths (especially in rural and sub-urban areas). Loans in SMEs may attract collateral security and lien contribution. Asset must be purchased from DEMSMA accredited vendors. A special

window is available for People Living With Disabilities (PLWD) and widows. A special window is available for prisoner rehabilitation and re-integration. LEATHER-WORKS CREDIT (LWC) Product Description Leather-Works Credit is designed as a follow up to beneficiaries that have primarily graduated from the Delta state Leather-Works Skill Acquisition Programme. This credit is meant to enable start up and scale up.

BUSINESS DAY

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Tuesday 12 June 2018

Live @ The Stock Exchange Top Gainers/Losers as at Monday Wednesday 11 June 2018 GAINERS Company

Market Statistics as at Monday 11 June 2018

LOSERS Opening

Closing

Change

PRESCO

N70.35

N73.7

3.35

NASCON

N22.4

N24

1.6

N117

N118

FLOURMILL

N32.4

N33

0.6

GUARANTY

N41.15

N41.6

0.45

Company

Opening

Closing

Change

WAPCO

N39.8

N39.05

-0.75

BERGER

N8.55

-0.45

ETERNA

N6.56

N6.25

-0.31

VOLUME (Numbers)

BOCGAS

N4.43

N4.21

-0.22

VALUE (N billion)

IKEJAHOTEL

N2.63

N2.53

-0.1

Presco, 29 other stocks lift NSE further Stories by Iheanyi Nwachukwu

igerian equities pushed higher on Monday June 11, 2018, shrugging off last weekend’s profit-taking trade drama as investors showed interests in thirty (30) stocks led by Presco Plc. The Nigerian Stock Exchange (NSE) All Share Index (ASI) increased by 0.45percent, while the Yearto-Date (ytd) return stood at 1.57percent. The All Share Index closed at 38,844.32 points against the preceding day close of 38,669.23 points while Market Capitalisation closed at N14.071 trillion against preceding day close of N14.008 trillion, an increase of N63billion. Thirty (30) stocks gained as against 20 losers. Analysts at Lagos-based United Capital Plc had expected stocks performance to close sideways as investors weigh the outcome of Fed meeting, the US/ North-Korean talks and the divisive outcome of the G7meeting. Presco Plc recorded the biggest advance from

N70.35 to N73.7, up by N3.35 or 4.76percent. NASCON Plc followed, from N22.4 to N24 , up by N1.6 or 7.14percent; Nigerian Breweries Plc stock price advanced from N117 to N118, up by N1 or 0.85percent. Flourmills Nigeria Plc rose from N32.4 to N33, up by 60kobo or 1.85percent; while GTBank Plc stock gained 45kobo or 1.09percent, from N41.15 to N41.6. Lafarge Africa Plc stock price recorded the biggest loss, from N39.8 to N39.05,

22kobo or 4.97percent; while Ikeja Hotel Plc lost 10kobo, from N2.63 to N2.53, down by 3.80percent. The volume of stocks traded increased by 187.19percent, from 210.026 million to 603.175 million, while the total value of stocks traded remained at N3.888 billion in 3,832 deals. Ikeja Hotel Plc, United Capital Plc, Africa Prudential Plc, Dangote Sugar Refinery Plc, and Access Bank Plc were actively traded

down by 75kobo or 1.88percent. Berge Paints Plc declined, from N9 to N8.55, down by 45kobo or 5percent. Eterna Plc declined from N6.56 to N6.25, down by 31kobo or 4.73percent. BOC GAS declined from N4.43 to N4.21, down by

stocks on Monday June 11, 2018 at the NSE. The Services sector led Monday activity chart with 282.5million shares exchanged for N712 million; Financial Services followed with 254.4million shares traded for N1.778 billion.

ASI (Points)

38,844.32

DEALS (Numbers)

3,832.00 603,174,648.00 3.888

MARKET CAP (N Trn

14.071

SEC to collaborate with grassroots groups on Financial Literacy

he Securities and Exchange Commission (SEC) has expressed its readiness to collaborate with various grassroots groups in its financial literacy campaign. This, the Commission said is in a bid to ensure that Nigerians in the rural areas are effectively sensitised on the benefits of investing in the capital market. Mary Uduk, Acting Director General of SEC stated this during a meeting with executive members of National Youths Initiative for Peace and Governance (NYIPG) at the Commission’s head office in Abuja. Uduk who was represented by acting Executive Commissioner Corporate Services of SEC, Henry Rowlands, commended the organisation on the various good governance and entrepreneurship sensitisation campaigns they have carried out and expressed the desire of the commission to tap into their already existing structures to also sensitise the grassroots on financial literacy. She said “we are delighted at the various sensitisation you have carried out to enlighten the people in your region on the need to engage in meaningful vocations. When someone is fully engaged, he will work for the peace of the country as he would

not want any activity that would destroy his business. “The SEC as part of its market development mandate would like to partner with you to educate the people on the best ways to invest the money they are making from their businesses.” “As a regulator, we need peace to function properly and we are willing to support any initiative that will promote peace in our country. The acting director general said the Commission has been in the vanguard of inculcating financial literacy for quite a long time because SEC had realised that it was very important for Nigerians to imbibe the culture and habit of being financially literate and be familiar with the operations of the capital market. Uduk disclosed that already, the Commission is involved in various campaigns that take its staff to schools, rural areas among others all in a bid to ensure that Nigerians are aware of the benefits of investing in the capital

market. “We have school children come to our office on excursion visits where we educate them on various themes like saving culture, investment opportunities in the Market among others and are also infusing Capital Market Studies (CMS) into schools’ curriculum. We have already signed the Memorandum of Understanding (MoU) with the Nigerian Educational Research and Development Council (NERDC). She therefore commended them for their efforts at promoting peace and good governance adding that it is only in an atmosphere of peace that the capital market can function effectively. Speaking earlier, the Vice President of the organisation, Abdulmalik Alfo, commended the SEC on its various initiatives as contained in the 10 year capital market master plan and pledged the readiness of his association to collaborate with the Commission in any area necessary.

Investors also largely brushed off tensions over the divisive G7 meeting, when Trump threw the allies’ efforts to show a united front into disarray after taking aim at Canadian Prime Minister Justin Trudeau and announcing that he was backing out of the joint communique. “Markets are generally overlooking negative takeaway following this weekend’s G-7 meeting,” said Peter Cecchini, chief market strategist at Cantor Fitzgerald in New York.

At 11:29 a.m. EDT the Dow Jones Industrial Average .DJI was down 1.23 points, or -0.00 percent, at 25,315.30, the S&P 500 .SPX was up 4.25 points, or 0.15 percent, at 2,783.28 and the Nasdaq Composite .IXIC was up 11.63 points, or 0.15 percent, at 7,657.14. The biggest percentage gainer on the S&P 500 was Sempra Energy (SRE.N), which surged 15 percent after two shareholders, including Elliott Management, urged a strategic review of the U.S. utility’s business.

Wall Street edges higher ahead of Trump-Kim meet

.S. stocks edged higher on Monday, helped by gains in Facebook (FB.O) and a handful of healthcare stocks ahead of a highly anticipated meeting between President Donald Trump and North Korean leader Kim Jong Un. Officials from both countries sought to narrow differences on how to end a nuclear stand-off on the Korean peninsula as the stage was being set for the first ever meeting between the two leaders in Singapore on Tuesday.

Investors are also bracing for monetary policy changes, with three of the world’s top central banks - the U.S. Federal Reserve, the European Central Bank and the Bank of Japan - set to meet this week. The Fed is almost certain to raise rates again on Wednesday, inching closer to a neutral policy stance, while the ECB is likely to signal on Thursday that its 2.55 trillion euro bond purchase scheme will end this year, a key move in dismantling crisis-era stimulus.

“No one expects anything concrete to come of the meeting ... but if the tone is positive afterwards, it won’t be a head-

wind for stocks,” said Ken Polcari, director of the NYSE floor division at O’Neil Securities in New York.

Tuesday 12 June 2018

BUSINESS DAY

Live @ the Stock exchange

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Tuesday 12 June 2018

Prices for Securities Traded as of Monday 11 June 2018 Company

Market cap(nm)

Price (N)

Change

Trades

Volume

Company

Market cap(nm)

Price (N)

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PRICES FOR MAIN BOARD SECURITIES (Equities) BANKING ACCESS BANK PLC. 313,868.49 10.85 1.40 246 22,345,221 UNITED BANK FOR AFRICA PLC 374,483.66 10.95 0.46 112 18,838,265 857,124.28 27.30 0.92 242 3,791,653 ZENITH INTERNATIONAL BANK PLC 600 44,975,139 OTHER FINANCIAL INSTITUTIONS FBN HOLDINGS PLC 389,463.93 10.85 2.84 308 10,719,747 308 10,719,747 908 55,694,886 BUILDING MATERIALS DANGOTE CEMENT PLC 4,018,151.65 235.80 - 34 59,701 LAFARGE AFRICA PLC. 338,697.37 39.05 -1.88 112 3,030,994 146 3,090,695 146 3,090,695 EXPLORATION AND PRODUCTION SEPLAT PETROLEUM DEVELOPMENT COMPANY LTD 418,442.93 711.10 - 41 82,638 41 82,638 41 82,638 1,095 58,868,219 CROP PRODUCTION FTN COCOA PROCESSORS PLC 440.00 0.20 - 1 100,000 78,220.62 82.00 - 23 34,850 OKOMU OIL PALM PLC. PRESCO PLC 73,700.00 73.70 4.76 11 323,899 35 458,749 FISHING/HUNTING/TRAPPING ELLAH LAKES PLC. 511.20 4.26 - 1 50 1 50 LIVESTOCK/ANIMAL SPECIALTIES LIVESTOCK FEEDS PLC. 2,610.00 0.87 - 4 41,080 4 41,080 40 499,879 DIVERSIFIED INDUSTRIES A.G. LEVENTIS NIGERIA PLC. 1,403.06 0.53 - 7 92,841 214.03 0.55 - 6 178,455 JOHN HOLT PLC. S C O A NIG. PLC. 2,111.93 3.25 - 0 0 60,159.03 1.48 3.50 99 3,964,132 TRANSNATIONAL CORPORATION OF NIGERIA PLC U A C N PLC. 42,355.06 14.70 - 24 112,776 136 4,348,204 136 4,348,204 BUILDING CONSTRUCTION ARBICO PLC. 711.32 4.79 - 3 1,150 3 1,150 INFRASTRUCTURE/HEAVY CONSTRUCTION JULIUS BERGER NIG. PLC. 36,300.00 27.50 - 8 23,585 165.00 6.60 - 0 0 ROADS NIG PLC. 8 23,585 REAL ESTATE DEVELOPMENT UACN PROPERTY DEVELOPMENT CO. LIMITED 5,222.78 2.01 - 8 347,280 8 347,280 REAL ESTATE INVESTMENT TRUSTS (REITS) SKYE SHELTER FUND PLC 1,900.00 95.00 - 1 5 UNION HOMES REAL ESTATE INVESTMENT TRUST (REIT) 11,300.89 45.20 - 0 0 26,682.70 10.00 - 1 10 UPDC REAL ESTATE INVESTMENT TRUST 2 15 21 372,030 AUTOMOBILES/AUTO PARTS DN TYRE & RUBBER PLC 1,431.80 0.30 - 0 0 0 0 BEVERAGES--BREWERS/DISTILLERS CHAMPION BREW. PLC. 15,502.40 1.98 -1.00 23 682,448 GOLDEN GUINEA BREW. PLC. 242.22 0.89 - 0 0 GUINNESS NIG PLC 218,490.69 99.75 - 29 65,935 INTERNATIONAL BREWERIES PLC. 358,877.24 41.75 -0.12 14 109,713 NIGERIAN BREW. PLC. 943,634.44 118.00 0.85 122 302,939 188 1,161,035 FOOD PRODUCTS DANGOTE FLOUR MILLS PLC 53,250.00 10.65 0.47 91 1,443,369 DANGOTE SUGAR REFINERY PLC 238,800.00 19.90 -0.50 95 32,515,323 FLOUR MILLS NIG. PLC. 135,312.53 33.00 1.85 106 2,629,818 HONEYWELL FLOUR MILL PLC 18,318.76 2.31 0.43 27 852,342 MULTI-TREX INTEGRATED FOODS PLC 1,489.00 0.40 - 2 50,100 N NIG. FLOUR MILLS PLC. 1,167.21 6.55 - 3 20,000 NASCON ALLIED INDUSTRIES PLC 63,586.52 24.00 7.14 63 2,730,226 UNION DICON SALT PLC. 3,676.41 13.45 - 0 0 387 40,241,178 FOOD PRODUCTS--DIVERSIFIED CADBURY NIGERIA PLC. 23,477.53 12.50 - 42 147,051 NESTLE NIGERIA PLC. 1,149,510.10 1,450.20 - 70 56,344 112 203,395 HOUSEHOLD DURABLES NIGERIAN ENAMELWARE PLC. 1,680.31 22.10 - 1 500 VITAFOAM NIG PLC. 3,335.58 3.20 -2.44 22 848,188 23 848,688 PERSONAL/HOUSEHOLD PRODUCTS P Z CUSSONS NIGERIA PLC. 82,387.40 20.75 - 19 9,003 UNILEVER NIGERIA PLC. 315,975.30 55.00 - 31 2,367,282 50 2,376,285 760 44,830,581 BANKING DIAMOND BANK PLC 37,519.83 1.62 6.58 79 8,521,792 ECOBANK TRANSNATIONAL INCORPORATED 366,991.02 20.00 - 26 121,011 FIDELITY BANK PLC 67,801.03 2.34 2.63 181 17,910,823 GUARANTY TRUST BANK PLC. 1,224,337.06 41.60 1.09 158 10,501,716 JAIZ BANK PLC 19,446.40 0.66 -2.94 28 1,411,250 10,549.03 0.76 - 44 1,600,276 SKYE BANK PLC STERLING BANK PLC. 39,154.97 1.36 1.49 28 1,297,074 UNION BANK NIG.PLC. 170,356.40 5.85 4.46 41 895,539 UNITY BANK PLC 10,286.62 0.88 -3.30 15 500,810 WEMA BANK PLC. 28,545.10 0.74 -3.90 37 1,648,340 637 44,408,631 INSURANCE CARRIERS, BROKERS AND SERVICES AFRICAN ALLIANCE INSURANCE COMPANY PLC 4,117.00 0.20 - 0 0 AIICO INSURANCE PLC. 4,504.63 0.65 4.84 26 1,771,708 AXAMANSARD INSURANCE PLC 26,145.00 2.49 - 4 52,755 CONSOLIDATED HALLMARK INSURANCE PLC 1,960.00 0.28 3.70 5 327,500 CONTINENTAL REINSURANCE PLC 14,936.75 1.44 0.70 2 312,258 CORNERSTONE INSURANCE COMPANY PLC. 5,155.33 0.35 - 1 1,440 EQUITY ASSURANCE PLC. 2,940.00 0.21 5.00 4 650,000 GOLDLINK INSURANCE PLC 2,411.47 0.53 - 0 0 GREAT NIGERIAN INSURANCE PLC 1,913.74 0.50 - 0 0 GUINEA INSURANCE PLC. 2,333.20 0.38 - 3 600 INTERNATIONAL ENERGY INSURANCE COMPANY PLC 539.32 0.42 - 0 0 LASACO ASSURANCE PLC. 2,636.44 0.36 2.86 12 587,600 LAW UNION AND ROCK INS. PLC. 3,694.84 0.86 - 3 113,333 LINKAGE ASSURANCE PLC 6,960.00 0.87 3.57 7 131,000 MUTUAL BENEFITS ASSURANCE PLC. 2,800.00 0.35 -2.78 10 3,323,201 N.E.M INSURANCE CO (NIG) PLC. 13,201.26 2.50 -0.40 12 1,318,500 NIGER INSURANCE CO. PLC. 2,012.26 0.26 4.00 7 847,330 PRESTIGE ASSURANCE CO. PLC. 2,443.14 0.64 -4.48 10 278,800 REGENCY ALLIANCE INSURANCE COMPANY PLC 1,733.88 0.26 - 2 95,000 SOVEREIGN TRUST INSURANCE PLC 2,252.02 0.27 -3.70 12 1,415,500 STANDARD ALLIANCE INSURANCE PLC. 5,422.63 0.42 - 0 0 4,483.72 0.48 - 0 0 STANDARD TRUST ASSURANCE PLC UNIC DIVERSIFIED HOLDINGS PLC. 516.46 0.20 - 5 550,000 UNIVERSAL INSURANCE COMPANY PLC 8,000.00 0.50 - 0 0 VERITAS KAPITAL ASSURANCE PLC 4,437.33 0.32 3.23 7 1,935,090 WAPIC INSURANCE PLC 6,423.71 0.48 -2.04 34 788,921 166 14,500,536

MICRO-FINANCE BANKS FORTIS MICROFINANCE BANK PLC 11,799.67 2.58 - 0 0 NPF MICROFINANCE BANK PLC 3,772.95 1.65 - 11 113,548 11 113,548 MORTGAGE CARRIERS, BROKERS AND SERVICES ABBEY MORTGAGE BANK PLC 5,460.00 1.30 - 1 50 7,370.87 0.50 - 0 0 ASO SAVINGS AND LOANS PLC INFINITY TRUST MORTGAGE BANK PLC 5,922.05 1.42 - 2 600 RESORT SAVINGS & LOANS PLC 5,664.87 0.50 - 0 0 2,949.22 3.02 - 0 0 UNION HOMES SAVINGS AND LOANS PLC. 3 650 OTHER FINANCIAL INSTITUTIONS AFRICA PRUDENTIAL PLC 8,600.00 4.30 3.37 59 56,768,233 CUSTODIAN AND ALLIED PLC 29,526.96 5.02 - 12 90,300 720.00 0.48 - 1 100 DEAP CAPITAL MANAGEMENT & TRUST PLC FCMB GROUP PLC. 47,526.51 2.40 0.83 40 1,583,216 411.91 552.20 - 0 0 NIGERIA ENERYGY SECTOR FUND 1,749.43 0.34 3.03 6 180,075 ROYAL EXCHANGE PLC. SIM CAPITAL ALLIANCE VALUE FUND 3,312.39 103.20 - 0 0 487,399.09 48.50 0.62 67 1,964,564 STANBIC IBTC HOLDINGS PLC UNITED CAPITAL PLC 18,900.00 3.15 -0.32 70 79,128,898 255 139,715,386 1,072 198,738,751 HEALTHCARE PROVIDERS EKOCORP PLC. 1,680.29 3.37 - 0 0 1,492.32 0.42 - 2 100,000 UNION DIAGNOSTIC & CLINICAL SERVICES PLC 2 100,000 MEDICAL SUPPLIES MORISON INDUSTRIES PLC. 544.04 0.55 - 0 0 0 0 PHARMACEUTICALS EVANS MEDICAL PLC. 366.17 0.50 - 0 0 FIDSON HEALTHCARE PLC 9,000.00 6.00 - 7 18,298 22,960.83 19.20 - 30 116,566 GLAXO SMITHKLINE CONSUMER NIG. PLC. 2,401.00 2.45 -2.00 35 2,274,762 MAY & BAKER NIGERIA PLC. 1,087.70 0.63 - 7 1,053,372 NEIMETH INTERNATIONAL PHARMACEUTICALS PLC NIGERIA-GERMAN CHEMICALS PLC. 556.71 3.62 - 0 0 PHARMA-DEKO PLC. 477.00 2.20 - 0 0 79 3,462,998 81 3,562,998 COMPUTER BASED SYSTEMS COURTEVILLE BUSINESS SOLUTIONS PLC 710.40 0.20 - 2 325 2 325 COMPUTERS AND PERIPHERALS OMATEK VENTURES PLC 1,470.89 0.50 - 0 0 0 0 IT SERVICES CWG PLC 6,413.06 2.54 - 1 1,001 NCR (NIGERIA) PLC. 680.40 6.30 - 0 0 435.56 0.88 - 0 0 TRIPPLE GEE AND COMPANY PLC. 1 1,001 PROCESSING SYSTEMS CHAMS PLC 1,737.54 0.37 - 0 0 E-TRANZACT INTERNATIONAL PLC 19,110.00 4.55 - 0 0 0 0 3 1,326 BUILDING MATERIALS BERGER PAINTS PLC 2,477.99 8.55 -5.00 29 983,507 25,760.00 36.80 - 4 13,595 CAP PLC CEMENT CO. OF NORTH.NIG. PLC 33,301.96 26.50 -0.38 36 389,249 FIRST ALUMINIUM NIGERIA PLC 844.14 0.40 - 2 51,025 MEYER PLC. 361.24 0.68 - 2 8,833 PAINTS AND COATINGS MANUFACTURES PLC 467.82 0.59 - 0 0 PORTLAND PAINTS & PRODUCTS NIGERIA PLC 1,626.50 2.05 - 0 0 PREMIER PAINTS PLC. 1,279.20 10.40 - 0 0 73 1,446,209 ELECTRONIC AND ELECTRICAL PRODUCTS AUSTIN LAZ & COMPANY PLC 2,256.91 2.09 - 0 0 CUTIX PLC. 2,765.28 3.14 - 4 55,900 4 55,900 PACKAGING/CONTAINERS BETA GLASS PLC. 43,672.55 87.35 - 8 7,329 GREIF NIGERIA PLC 388.02 9.10 - 0 0 8 7,329 85 1,509,438 CHEMICALS B.O.C. GASES PLC. 1,752.39 4.21 -4.97 4 208,219 4 208,219 METALS ALUMINIUM EXTRUSION IND. PLC. 2,023.60 9.20 - 5 2,392 5 2,392 MINING SERVICES MULTIVERSE MINING AND EXPLORATION PLC 852.39 0.20 - 0 0 0 0 PAPER/FOREST PRODUCTS THOMAS WYATT NIG. PLC. 74.80 0.34 - 0 0 0 0 9 210,611 ENERGY EQUIPMENT AND SERVICES JAPAUL OIL & MARITIME SERVICES PLC 2,066.69 0.33 6.45 37 3,761,924 37 3,761,924 INTEGRATED OIL AND GAS SERVICES OANDO PLC 85,776.75 6.90 2.99 144 2,604,823 144 2,604,823 PETROLEUM AND PETROLEUM PRODUCTS DISTRIBUTORS 11 PLC 62,851.75 174.30 - 38 72,590 CONOIL PLC 22,206.47 32.00 - 47 186,658 8,150.90 6.25 -4.73 21 800,420 ETERNA PLC. FORTE OIL PLC. 48,191.80 37.00 - 52 170,993 MRS OIL NIGERIA PLC. 8,699.11 34.25 - 13 19,367 TOTAL NIGERIA PLC. 65,629.57 193.30 - 45 67,407 216 1,317,435 397 7,684,182 ADVERTISING AFROMEDIA PLC 2,219.52 0.50 - 0 0 0 0 AIRLINES MEDVIEW AIRLINE PLC 20,866.39 2.14 - 1 300 1 300 AUTOMOBILE/AUTO PART RETAILERS R T BRISCOE PLC. 541.12 0.46 - 1 1,890 1 1,890 COURIER/FREIGHT/DELIVERY RED STAR EXPRESS PLC 3,507.51 5.95 - 2 400 TRANS-NATIONWIDE EXPRESS PLC. 384.45 0.82 - 1 2,500 3 2,900 HOSPITALITY TANTALIZERS PLC 1,156.19 0.36 - 1 500 1 500 HOTELS/LODGING CAPITAL HOTEL PLC 4,801.22 3.10 - 0 0 IKEJA HOTEL PLC 5,259.35 2.53 -3.80 22 279,639,548 7,862.53 3.50 - 0 0 TOURIST COMPANY OF NIGERIA PLC. TRANSCORP HOTELS PLC 56,623.01 7.45 - 6 2,289 28 279,641,837 MEDIA/ENTERTAINMENT DAAR COMMUNICATIONS PLC 5,760.00 0.48 - 0 0 0 0 PRINTING/PUBLISHING ACADEMY PRESS PLC. 302.40 0.50 - 0 0

Tuesday 12 June 2018

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33 NEWS

BUSINESS DAY

Continued from page 1

The numbers that tell how bad Nigeria’s ....

treatment has been made worse by the poor state of health facilities, poor funding of the health sector, late diagnosis and detection, and high cost of treatment. The eight known hospitals with radiotherapy machines in the country, as at 2016 are: Lagos University Teaching Hospital (LUTH); University of Benin Teaching Hospital, Benin; University College Hospital, Ibadan; National Hospital, Abuja; Ahmadu Bello University Teaching Hospital, Zaria; Usmanu Dan Fodiyo University Teaching Hospital, Sokoto; University of Nigeria Teaching Hospital, Enugu; and Eko Hospital, a Lagos-based private hospital. Abia Nzelu, of the Committee Encouraging Corporate Philanthropy (CECP), says that of every five Nigerians with cancer, only one survives. “In the specific case of blood cancer, out of every 30 Nigerians (often young adults and children), only one survives. Meanwhile, at the Tata Cancer Centre in India, the survival rate for blood cancer

Goldman Sachs tips Brazil for world cup...

is 99 per cent. Future generation of Nigerians are wasting away from conditions that could be controlled medically. Sadly, Nigeria is a nation where wealth accumulates and men decay,” Nzelu said. While a privileged few in Nigeria can afford to travel abroad for treatment, majority have to make do with the inadequate healthcare facilities. Nigerians, mainly the political class, are estimated to spend as much as US$1 billion on health tourism every year with India, Dubai, UK and the US as top destinations by Nigerians for medical care. Nigerians who cannot afford foreign medical care from their savings or the public purse are left to take care of their healthcare needs mostly in poorly equipped public and private hospitals. Those who want better medical care use the private hospitals which are the dominant providers of healthcare in the country. Spending on healthcare is mostly an out of pocket expense and is estimated at N1.3 trillion an-

Continued from page 1

nually, about 65 percent of the N2 trillion health spend in the country, with only about N100 billion coming from insurance. This is because health Insurance penetration is still very low with only eight million covered out of the country’s estimated population of 198 million. There are just about 25,000 hospitals in the country, according to industry sources. This comes to an average of 7,920 Nigerians to one hospital. It is therefore not surprising that many hospitals are overfilled despite being poorly equipped and under staffed. The average doctor per head in the country stands at 1:3000 while nurse per head is 1:2000. With such a poor healthcare system, Life expectancy in Nigeria is 52 years for men and 54 years for women, one of the lowest globally. And this is because patients easily die from diseases in Nigeria that could easily be treated in other parts of the world.

the best variables to predict the outcome of a game is better left to a statistical model,” Goldman Sachs said in a report released yesterday, by their global macro research team. This year’s prediction by Goldman Sachs is coming after its last World Cup forecast, which also predicted Brazil to emerge champion, after a 3-1 win against Argentina in the final game. The company’s predictions however fell short of accuracy, as the last World Cup was won by Germany, after a 1-0 victory against Argentina while Brazil lost to the same Germany in a 7-1win. According to other economists and market analysts, the 2018 winner will be Brazil or France or Spain or Germany. Brazil and Germany are, in fact, the teams that appear most often in the forecast models produced by economists. The South American country was indicated by Danske Continues on wwwbusinessday online Bank, while Germany will triumph in Commerzbank prediction. Nigeria, the largest economy in the Africa continent is however left out of the various predictions by economist, thereby leaving the country to decide its fate in what will be its sixth World Cup qualifiers out of eight World Cup games it has participated in. According to Goldman Sachs’, Nigeria is Sub-Saharan Africa’s pre-eminent team. Although, the Super Eagles team could not make the list predicted to reach round 16, quarter finals, semi-finals and the finals of the forth coming World Cup. “For this tournament, Nigeria has recently had a strong run, but it nonetheless finds itself in a group that is difficult and perhaps also one of the tournament’s most exciting, along with Argentina, Croatia and Iceland,” Andrew Matheny, Economist at Goldman said. After remaining in the 47th poL-R: Donald Duke, former governor of Cross River State; Wiebe Boer, author of THE HISTORY OF FOOTBALL IN NIGERIA; Amaju Pinnick, president of the Nigeria Football Federation (NFF); Olusegun Awolowo, MD, NEPC, sition in the last ranking, the Super and Osagie Okunbor, MD, SPDC, at the formal presentation of Dr. Boer’s new book about the history of football in Eagles team dropped to 48th in the Nigeria, released in Lagos ahead of the start of the 2018 World Cup 2018 FIFA World Football ranking Continued from page 1

25 years after, we are back to June 12

cratic Party (SDP) with Moshood Kashimawo Abiola as the party’s presidential candidate; and National Republican Convention (NRC) with a Kano businessman, Bashiru Tofa, as its flag bearer. The NEC set June 12, 1993 as the date for the presidential election which was to bring an end to the military regime of Babangida. It was an interesting political era, as the robust electioneering campaigns that followed saw Nigerians troop out to cast their votes. As the results of the votes began to trickle in, it was obvious that Abiola was coasting to victory, as Bashiru Tofa reportedly lost in his ward in Kano, which showed the acceptability of Abiola across the country. But no sooner had NEC began to announce the result of the election than Babangida declared it annulled. In the annulment speech delivered by Babangida, he said: “There were allegations of irregularities and other acts

of bad conduct levelled against the presidential candidates but NEC went ahead and cleared them. There were proofs as well as documented evidence of widespread use of money during the party primaries as well as the presidential election. These were the same bad conduct for which the party presidential primaries of 1992 were cancelled. Evidence available to government put the total amount of money spent by the presidential candidates at over two billion, one hundred million naira.” The annulment of the June 12 election and several other events that followed, including the installation of a National Interim Government headed by Ernest Shonekan, his forceful removal from office, and another military regime headed by late General Sani Abacha on November 17, 1993 have remained a dark point in Nigeria’s political journey. Since the death of Abacha in of-

fice on June 8, followed by that of Abiola while still in detention on July 7, 1998, there have been sustained pressure on successive governments to honour and recognise him as a former president. Last week, in what seemed a move to sway votes from the southwest, the ruling All Progressives Congress (APC) re-ignited a fire in the believers in the June 12 struggle. President Muhammadu Buhari, in addition to declaring June 12 as Nigeria’s Democracy Day, as against May 29, also proposed the conferment, posthumously on MKO Abiola, the highest national honour of GCFR and the honour of GCON on Babagana Kingibe, who was Abiola’s running mate in the election. Buhari announced the government would also be conferring on late human rights activist, Gani Fawehinmi, the honour of GCON for his relentless fight for good governance while alive.

However, beyond the declaration of June 12 as the new Democracy Day, and conferment of the honours on the actors, Nigerians, including the incurable advocates of the June 12 struggle such as human rights lawyer, Femi Falana, Yinka Odumakin, secretary of the Afenifere Renewal Group, say that the government must a go step further. According Falana and Odumakin the greatest gift and honour that can be done to the memories of MKO Abiola and Gani Fawehinmi, is the conduct of free and fair election come 2019, the guarantee of freedom speech and freedom of association of the citizens, tolerance of opposing views, respect for the rule of law and human rights, which are the ideals of democracy that Abiola and Fawehinmi fought and stood for till death. For them, this is true significance of June 12. But 25 years down the line, it is interesting that the same person-

released Thursday, 11 June 2018. A multinational team of analysts at Nomura, the Japanese bank, however concluded, using portfolio theory and the efficientmarkets hypothesis as well as data on the value, form and historical performance of players, that France will beat Spain in the final, with Brazil in third place. Analysts at UBS, the Swiss bank, disagree saying that using (unspecified) econometric tools that the chief investment officer at its wealth-management arm uses to pick stocks, it has Germany most likely to win. The bankers give the current holders a 24 per cent chance of lifting the trophy again. England has the fourth-highest probability at 8.5 per cent. Dean Turner, an economist at UBS Wealth Management, also reckons that England should do better than last time — with a “two-thirds chance of reaching the quarter-final stage”. Commerzbank, also predicts that Germany will win, however, Dutch bank ING has its money on Spain. ING researchers found that the value of Spain’s squad exceeds that of all other participating countries. That led Ian Wright — its senior economist— to say: “Money doesn’t necessarily buy success, but it probably helps.” A team from the Toulouse School of Economics, however, has studied the pictures of more than 4,000 players from the Panini World Cup sticker albums of every tournament since 1970. Their conclusion, from using automated face-reading software, is: “Teams whose players looked angrier or happier performed better in the group stage of the World Cup compared to more inexpressive teams.” Happy teams in the Panini stickers have the confidence to score, said Astrid Hopfensitz, lead author of the research. Angry teams are more competitive and concede fewer goals. Continues on wwwbusinessday online

alities who ruled and created the June 12 debacle are still the ones ‘pretending’ to resolve it. Buhari who started the series of military coups that truncated democracy and also led to the annulment of the June 12 elections. Buhari, also interestingly served under Abacha, the man who detained Abiola, a detention that sent him to his grave and killed any hopes of actualisng the June 12 dream. Former President Olusegun Obasanjo, who is regarded as the greatest beneficiary of the June 12 struggle after emerging president in 1999 but who refused to recognise June 12. Now he is at loggerheads with Buhari, his long-time buddy but now political foe. Ibrahim Babagida, who takes full responsibility for the annulment of June 12 is also actively on the political scene telling Nigerians who to vote and not to vote for.

34 BUSINESS DAY

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Tuesday 12 June 2018

INTERVIEW The current structure of the Downstream Oil and Gas sector is not sustainable - Says Akinfemiwa Against the backdrop of the move to improve the regulatory and fiscal regime in the Nigerian Oil and Gas Industry with the recent passage of the Petroleum Industry Governance Bill by the National Assembly, which is still awaiting Presidential assent, BusinessDay Reporters recently spoke to the Chairman of the Major Oil Marketers Association of Nigeria (MOMAN), AKINSOLA AKINFEMIWA on issues militating against having a thriving and competitive Downstream and the possible solutions to addressing the challenges of the industry. Akinfemiwa also spoke about transition plans at the Major Oil Marketers Association of Nigeria – an industry group comprising all the major players in the Nigerian Downstream – Total, Mobil, Forte Oil, Conoil, OVH Energy (trading as Oando) and MRS, as Obafemi Olaware, who has been the Executive Secretary of the Organisation from inception, retires, and Clement Isong takes over. Here are excerpts from the interview.

n 2016, you were elected as Chairman of MOMAN after having had one Chairman for a long time. What informed the baton change? MOMAN’s emergence as a strong voice in the industry is as a result of the vision of the founding Chairman, Mr Wale Tinubu, whose tenure as Chairman saw the He set the standards for promoting best practices within the industry. As the Leader of a growing diversified energy company along the value chain, of which Marketing is a part, he could not devote the time required at a very tumultuous period for the sector and he relinquished the position and my colleagues in MOMAN elected me to take up the mantle of leading the industry at a time when importation was getting more difficult due to unavailability of foreign exchange, long outstanding subsidy payments was bringing the industry to its knees and many other challenges required collective efforts to overcome. What are the plans of the Chief Executives of Companies under the Major Oil Marketers of Nigeria regarding the repositioning of the Downstream Petroleum sector in the light of recent happenings? Most of us have been in the Industry for a long time and we are critically aware of the cyclicality of the events of the last few years. Remember that

the Presidency, National Assembly and other agencies of Government. With the hard work already done, it is a matter of when not if we would be paid.

We have gone through several rounds of verification exercises to ascertain the outstanding subsidies; late payment interest and foreign exchange differentials and several promises been made to clear the outstanding amount but we have not received any payment

we have a huge stake in the country’s economy with our investments in retail outlets, storage facilities, people and systems and this shows we are here for the long haul. Recall that the last fuel scarcity and distribution challenges were resolved largely with MOMAN resources. We ensured product availability and pricing integrity across the nation because our pedigree means a lot to us and we see ourselves as partners in progress. That said, we are business concerns and we require an enabling environment to thrive. MOMAN is certain that we are stronger together and would actively seek areas of comparative advantage and collaboration along the downstream value chain as we currently do with the ATK Tender and joint imports to the benefit of our customers. With the current supply costs hurting the amount accruable to

the Federation Account making deregulation inevitable, we believe our investments put us in good stead to reap bountifully in the coming years. What is MOMAN currently doing to recover the debts owed by government to its member companies from Oil subsidy? I would like to answer this question as a Downstream Operator because the Federal Government doesn’t see the dichotomy. We have gone through several rounds of verification exercises to ascertain the outstanding subsidies; late payment interest and foreign exchange differentials and several promises been made to clear the outstanding amount but we have not received any payment. We have not relented in our efforts to get the payments with submissions and engagements with

How have MOMAN member companies been able to manage their working capital given the non-payment of debts owed it from the Oil subsidy? It has been very tough. The working capital deficits have taken a more drastic turn with the banks taking a pessimistic view on lending to the sector. In these times, our reputation as worthy partners precede us in the marketplace with suppliers willing to support us especially with better terms for deregulated products. However, internally we keep finding ways to survive these hard times by reducing our cash cycles, curbing costs, improving efficiencies, inculcating good customer service, ensuring the integrity of our pumps and smart procurement of our inventory. How sustainable is the current supply chain and distribution model of the downstream petroleum sector given the huge landing cost of petrol which is

said to be higher than the openmarket pump price? It is clearly not sustainable. The best way is to deregulate the sector to stimulate the necessary investment in inland storages, pipelines and reduce the wear and tear on the roads and other infrastructure by heavy laden trucks which we use to distribute petroleum products. MOMAN just appointed a new Executive Secretary. What are MOMAN’s short to long term strategic objectives following this administrative change? I must first acknowledge the great advocacy and proactive policy interventions done by the outgone Executive Secretary, Mr. Thomas Olawore. His experience and maturity was invaluable to all MOMAN members and he had a deep network that was ultimately beneficial to MOMAN. On behalf of all MOMAN members, I wish him a peaceful and healthy retirement. The appointment of Mr. Clement Isong as Chief Operating Officer about six month ago was designed to ensure a seamless handover upon Mr. Olawore’s retirement. I would also like to use this medium to welcome him onboard. With respect to long term strategy, the industry is expected to evolve and as the largest single set of stakeholders by market share and investment, we carry the biggest risk if we do not adapt. The new ES is expected to drive the vision of the association in the transition to a deregulated market especially with the new regulations that would guide the process. We also expect a lot of self-regulation within the sector that would lead to the need for an expanded Secretariat to deal with the various teething issues that would arise in the transition. Our dealings with the public and governments at all levels, which is already being done, is expected to be through pooling of resources as we did to resolve issues around tanker movements within Apapa. Overall, we expect the Secretariat to become a reference point in all matters relating to the Downstream Sector by harnessing the limitless talent in the member companies for the benefit of our customers and economy.

Politics & Policy Tuesday 12 June 2018

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June 12: Abiola’s kinsmen demand extension of president’s tenure by two weeks …Want Buhari to send executive bill on amendments to NASS RAZAQ AYINLA, Abeokuta

he people of Gbagura in Abeokuta, the capital of Ogun State, who are the kinsmen of the late Moshood Kashimawo Olawale Abiola, the acclaimed winner of the June 12, 1993 presidential poll, have demanded the extension of President Muhammadu Buhari’s tenure by two weeks, asking the Federal Government to shift handover date from the usual May 29 to June 12. Meanwhile, Ogun State today joins other South West states to celebrate the June 12, 1993 presidential poll annulment. The Abiola’s kinsmen in Gbagura under monarchical order of Agura of Gbagura, Oba Halidu Olaloko, the Sobekun II and Gbagura Council of Chiefs declared that the shift in the President’s tenure and handover date by two weeks became necessary to properly actualise the June 12, 1993 annulment date and immortalise MKO Abiola, who sacrificed his life because of Nigerian democracy. It will be recalled that President Buhari had last week conferred a posthumous Grand Commander of the Federal Republic of Nigeria (GCFR) award on the late Abiola and declared June 12 as Democracy Day instead of May 29, which the

Abiola

National Assembly also supported by asking the Independent National Electoral Commission (INEC) to declare Abiola as winner of the poll and ex-president, thereby, asking the Federal Government to pay all the entitlements due to President to his families. Speaking in response to the Federal Government’s move to actualise the date at a Press Conference held at Agura Palace, a stone-throw to

You can’t declare Abiola as ex-president, Olapade Agoro tells Buhari AKINREMI FEYISIPO, Ibadan

he National Chairman of National Action Council (NAC), Olapade Agoro has said that the late Mosood Kashimawo Olawale Abiola, the presumed winner of June 12, 1993 presidential election was not officially declared as the winner of the election and not sworn in as President. Agoro maintained that for these reasons, it would be wrong and amount to legality of illegal act for President Muhammadu Buhari to declare him as ExPresident of Federal Republic of Nigeria and to honour Abiola with GCFR, the highest honour in the country. However, while reacting to the decision of President Buhari to declare the late business mogul as ex-president and honour him with the highest national honour in the land, the NAC Presidential aspirant in a statement recalled with nostalgia that the June 12, 1993 election “ended inconclusively and with no actual declared winner”, hence it will be wrong for Buhari to declare Abiola as

ex-president of Nigeria. Agoro said: “The fact and reality of the matter must be faced by all of us; hate it or like it, pure and simple; the June 12 presidential election ended inconclusively and with no actual declared winner”. Agoro added that since MKO Abiola was not declared as the winner of the election and not sworn into office as President and Commander-In-Chief of Federal Republic of Nigeria, it is illegal for Buhari to declare him as ExPresident. According to him, “M.K.O. Abiola was not officially declared as the winner of the June 12 election and was therefore not officially sworn into office as President and Commander-In-Chief of Federal Republic of Nigeria. “The honour done to award him the GCFR title was no doubt in recognition of the highest price MKO Abiola paid by laying down his precious life for the cause of democracy in Nigeria. “It will therefore, be stupid for anybody or group of people to be lured into the game of deceivers aimed at catching the South West peoples’ vote.”

Abiola’s family house at Oke-Iddo in Abeokuta on Monday, Oba Halidu Olaloko, Agura of Gbagura lauded President Muhammadu Buhari and the National Assembly for the steps that had taken but urged the Executive and the Legislative Arms of Government to have a second look at President Buhari’s proposal on June 12 by extending the President’s handover date from May 29 to June 12, starting from 2019 for proper im-

mortalisation of the man. The Agura of Gbagura, who was represented by Adio Baiyewun, Balogun of Ojoo-Gbagura, said: “We see this as victory of truth over injustice, and as people of Gbagura and Ogun State at large, we are extremely glad that Mr. President has finally done what is just and fair with the posthumous award of GCFR on the late Abiola and the declaration of June 12 as proper Democracy Day and a Public Holiday in Nigeria. “We equally applaud the National Assembly led by the Senate for directing the Independent National Electoral Commission to formally declare Chief MKO Abiola winner and as an ex-president of the Federal Republic of Nigeria with all his entitlements fully paid. “We also passionately request the National Assembly to take a second look at the President Muhammadu Buhari’s proposal on June 12 and demand that for proper actualisation and immortalisation of the date and Abiola, there is need to support Mr. President to replace the hitherto public holiday of May 29 and celebration as well as handover day with June 12 since the date marks a watershed in the Nigerian political history.” However, Bode Mustapha, a former member, Federal House of Representatives and Chairman,

Nigeria Deposit Insurance Corporation (NDIC), who is Balogun Ibadan and member of Gbagura Council of Chiefs, advised President Buhari to send an Executive Bill to National Assembly asking for constitutional backing of the new amendments to the President’s Handover Day and Democracy Celebration, saying: “this can happen if the President sends an Executive Bill to the National Assembly in order to make it a law of the land. “What I think is important is for the President to send an Executive Bill to the National Assembly because it must be backed by law. Because of the separation of powers, between the Executive and the Legislature, we appeal to the President to forward an Executive Bill to the National Assembly, taking into cognizance the circumstances that led to the annulment of the June 12 elections and the importance of that day and date in the watershed of the democracy of this nation. “And conscientiously treat this request made by the Presidency during the life of this National Assembly so as to heal wounds and put to rest the matter. And the process will give restitution to the families of the late Chief MKO Abiola who was the first Bobagunwa of Egbaland, a position which I have the opportunity to occupy today.”

June 12: Atiku warns of slide to arbitrariness, lawlessness

ormer Vice President of Nigeria and presidential hopeful of the People’s Democratic Party, Atiku Abubakar has warned against what he called a consistent pattern of departure from constitutional due process to tendencies of authoritarianism. The former Vice President said in a statement marking the 25th anniversary of June 12 that there is a growing culture of arbitrariness in some of the institutions of government at all levels that is contradictory to the notion of inclusiveness and fairness that a democratic society guarantees. In the statement released in Abuja, the former Vice President espoused that the very foundation of a democratic society is the guarantee of fundamental human rights that gives the citizenry the freedom of speech, freedom of movement and the ability of the people to belong to any lawful association that they deem inclined. He noted that it was the exclusive responsibility of the state through the various security organisations to see to the protection of these fundamental rights of the people. But it becomes an anathema in a democracy if institutions of government begin to act in negation of these noble objectives.

Recalling the recent campaign by youth across the countr y against the brutality of the antirobbery unit of the Nigeria Police, Atiku noted that up till now there has yet to be a fundamental reform in the operations of that unit. Today, across our major cities and even in the hinterlands, citizens – especially the youth – can hardly walk freely in open avenues without the police stopping them to search through the content of their mobile handsets. Civil servants now lose their jobs just because they choose to criticize politicians in government positions. There are even suggestions in some quarters that civil servants

Atiku

should be barred from signing to social media networks. Opposition politicians are regularly being hounded on wanton criminal and civil prosecutions. All of these narratives have become a consistent pattern of behavior that is antithetical to an open and democratic society. In many of the states across the country, there is a reign of fascism with governors who have suddenly become overlords dealing ruthlessly with anyone who dares to challenge their ruthless foothold of intimidation and oppression. Perhaps at this point, we need to remind ourselves that the democracy which we enjoy today did not come cheap price. It came at the cost of supreme price paid by persons that included Chief MKO Abiola, Alhaja Kudirat Abiola, MajGen Shehu Yar’Adua, Chief Alfred Rewane and Bagauda Kaltho, among thousands of other patriots. Atiku reminded that democracy isn’t merely a mechanism of appointing a government; its beauty is in the inherent safeguard to the citizenry to live and prosper as free people under the law. Finally, he called on all political actors to let June 12 and all that it embodies, inspire them to promote democratic principles, especially as Nigeria is about to go to the polls again.

Tuesday 12 June 2018

BUSINESS DAY

Tuesday 12 June 2018

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BUSINESS DAY

FINANCIAL TIMES Investment banking: Stronger franchises emerge 10 years after crisis

Stocks gain despite political turbulence around G7 Page A5

Page A6

World Business Newspaper

UK to apply to stay in European standards system after Brexit Move follows business warnings that creating UK benchmarks would increase costs GEORGE PARKER

he UK is to apply to stay in the European standards system for industry products and services after Brexit, following warnings from business that creating British-only benchmarks would be “an isolationist move” that would pile costs on to companies. Business secretary Greg Clark has backed moves to keep the UK as a full member of European standard setting bodies, shrugging off suggestions from trade secretary Liam Fox that Britain should strike out on an independent course. European standards set benchmarks for the safety and quality of products and services across multiple sectors — ranging from energy and healthcare to transport — to protect consumers and facilitate cross-border trade. Industry figures claimed Mr Fox feared that if the UK continued to adhere to European standards after Brexit, it could make it harder to strike third country trade deals, notably with the US. Mr Fox declined to comment. Mr Clark has thrown his weight behind business leaders who have lobbied for months against a new “British-only” approach. They said such a move would bring “fragmentation, cost and confusion to British industry and consumers post-Brexit”. Last week Mr Clark wrote to Scott Steedman, director of the British Standards Institution, the UK body responsible for developing standards, urging him to “take the steps you feel are necessary” to maintain national influence in the setting of European and international benchmarks. His letter, dated June 8, gives government approval to a bid to change the statutes of European standards organ-

isations, which specify that members must come from the EU or the European Free Trade Association — which consists of Iceland, Liechtenstein, Norway and Switzerland — or are likely to join those blocs. Mr Clark expects approval to be forthcoming — UK industry experts and the BSI play a key role in setting European standards, which then often become the basis of international norms. Last month 34 industry figures representing a wide range of industries wrote to Mr Clark to urge him to back the proposal. “It will help post-Brexit global Britain to continue to trade in Europe and internationally,” they wrote. “It will support the close working relationships that both the UK and the EU are looking for, with businesses receiving the certainty they need and consumers achieving the high levels of protection they demand.” European standards are drawn up by CEN and CENELEC, which are independent associations and not EU agencies. They provide a single model, whereby each European standard is adopted identically as a national norm. David Bell, director of standards policy at the BSI, said in Brussels last month that British business did not want to follow two different standards models, “one track national, one track European”. Speaking at the Small Business Standards conference, he said: “Ministers understand that Brexit is going to cost a lot of money and this is one area where we can make some savings.” The majority of European standards are initiated by business, with about 30 per cent mandated by the European Commission under EU legislation, according to CEN and CENELEC. Standards are voluntary, although EU laws and regulations may make compliance with them compulsory.

ABB chief warns US jobs put at risk by Trump steel tariffs Swiss engineering group relies on global supply chains for its US business RALPH ATKINS

wiss engineering group ABB’s chief executive has warned that thousands of its jobs in the US could be at risk if US president Donald Trump pushes ahead with new tariffs on steel and aluminium imports. Ulrich Spiesshofer said that ABB facilities producing high-specification power transformers would be hit if Washington increased the cost of types of steel it needs to import from Europe and Japan. “That specific steel is not being produced in sufficient quantities in the US. In fact there is only one company that has pretty limited capacity,” Mr Spiesshofer told the Financial Times. ABB has 4,000 employees making

energy-efficient transformers and motors across the US. “Their jobs might be at risk,” he said. Mr Spiesshofer said ABB wanted “to contribute to a prospering US” — its largest market and where it employs more than 20,000 people. ABB is also close to completing a $2.6bn deal to buy General Electric’s underperforming Industrial Solutions division. But he warned that Mr Trump’s tariff plan could backfire. “The last time we had tariffs on steel . . . jobs were destroyed, and we don’t want to have that.” For international companies such as ABB with global supply chains, “it’s important that we have access to the Continues on page A4

Hopes high for Trump-Kim detente as summit looms

US president optimistic on eve of meeting described by Moon as ‘summit of the century’

BRYAN HARRIS, DEMETRI SEVASTOPULO AND STEFANIA PALMA

ashington and Pyongyang expressed optimism that the historic meeting between US president Donald Trump and North Korean dictator Kim Jong Un would be a success, as South Korean president Moon Jae-in described it as the “summit of the century”. Speaking the day before the Singapore summit, Mr Trump said: “We’ve got a very interesting meeting in particular tomorrow, I think things could work out very nicely.” In another positive sign, North Korean media described the meeting as a chance to discuss peace and disarmament “as required by the changed era”. Dennis Wilder, a former White House Asia aide, said: “The North Koreans are definitely playing it up, which suggests that they are planning for [the summit] to be successful.” Meanwhile, Mike Pompeo, US sec-

retary of state, said preparations for the summit had “come together very nicely” but that the meeting between the two leaders would be the true test. “Tomorrow we’ll get our clearest indication to date whether Chairman Kim Jong Un is truly serious,” Mr Pompeo said in Singapore. The summit comes more than a year after the Trump administration ratcheted up an economic pressure campaign to squeeze North Korea, in an effort to get Mr Kim to come to the negotiating table. Mr Pompeo said the US goal remained the “complete, verifiable, and irreversible denuclearisation” of the Korean peninsula. While Mr Trump previously suggested that the summit would deliver concrete results, US officials have recently moved to temper expectations, saying it would be the beginning of a process. “These discussions that will take place tomorrow . . . will set the framework for the hard work that will follow,” Mr Pompeo said. Asked by reporters why North Korea should trust Mr Trump given his behav-

iour at the G7 summit, Mr Pompeo said that the “hypothesis is ludicrous”. Mr Moon, who has played a pivotal role in bridging the gap between Pyongyang and the US, said Tuesday’s meeting would be a “historical milestone”, but cautioned that it would be the first stage in a “long process that may take one year, two years or even longer”. The White House confirmed on Monday that Mr Trump and Mr Kim would hold a one-on-one summit on Tuesday morning with only translators present. This will be followed by an expanded meeting and working lunch attended by officials from both sides including Mr Pompeo and John Boulton, the US president’s national security adviser. While all sides expressed optimism, the summit has been dogged by scepticism. Many experts, particularly those in Washington, do not believe Pyongyang is genuine about its desire to give up its nuclear arsenal and argue that the meeting with Mr Trump is just a ploy for sanctions relief.

US relations with closest allies fall to new lows West in disarray after Trump backtracks on G7 communiqué and lashes out at Trudeau CHRIS GILES

elations between the US and its closest allies plunged to new depths on Sunday after the most acrimonious G7 summit in a generation ended with the American president lashing out at fellow leaders and backtracking on a pledge to sign the G7 communiqué. The west was in disarray after Donald Trump left the summit early, instructed his officials to tear up the bland G7 statement, threatened to impose more tariffs and called the Canadian prime minister “very dishonest and weak”. As Mr Trump landed in Singapore on Air Force One to prepare for a historic meeting with North Korean leader Kim Jong Un, his advisers continued the attack on western allies and, in particular, Justin Trudeau. The Canadian prime minister and G7 chair had described the US tariffs on steel and aluminium as “insulting”. Larry Kudlow, new head of the

National Economic Council, accused Mr Trudeau of betraying the US. He told CNN: “He really kind of stabbed us in the back.” Peter Navarro, Mr Trump’s trade adviser, ratcheted up the rhetoric, telling Fox News “there’s a special place in hell for any foreign leader that engages in bad faith diplomacy with President Donald J Trump”. Germany and France presented a united front. Berlin’s economy minister said “the west does not break up so easily” while an Elysée aide said global co-operation “cannot depend on bouts of anger or words”. A frustrated Emmanuel Macron, French president, wrote in a tweet late on Saturday that an “isolated” US faced a “united front” from its allies. Learning that Mr Trump had walked away from a “painstakingly negotiated communiqué” was “a sobering experience”, Angela Merkel, German chancellor, said in a television interview on Sunday night. Ms Merkel added that the fact that the US president was putting

“America first, we must ourselves fight for our values”. Her office had earlier released a revealing picture showing a standoff between her and Mr Trump at the G7, surrounded by the other leaders. The EU and Canada have vowed to retaliate against the US steel tariffs, taking action at the World Trade Organization and imposing equivalent tariffs on sensitive American products such as bourbon whiskey, Harley-Davidson motorbikes and peanut butter. Instead of the usual bonhomie and agreement on global economic measures, the G7 has not been as divided in its 45-year history. Mr Trump was a solitary figure as the leaders of the west’s other large democracies united to criticise his actions that risk starting a global trade war. After Mr Trump rejected the G7’s tortuously negotiated compromise communiqué, he threatened to impose more tariffs on cars that he tweeted were “flooding the US market”.

BUSINESS DAY

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Tuesday 12 June 2018

NATIONAL

HSBC chief John Flint promises return to ‘growth mode’ MARTIN ARNOLD

he new chief executive of HSBC has promised to break almost a decade of declining revenues by investing $15bn to $17bn in “growth and technology” as he presented his strategy to investors. John Flint, who was promoted chief of Europe’s biggest bank in February, reassured shareholders on Monday

that he would maintain the dividend at current levels and continue the group’s recent practice of buying back shares. “After a period of restructuring, it is now time for HSBC to get back into growth mode,” said Mr Flint, a 28year veteran of the bank. “In the next phase of our strategy we will accelerate growth in areas of strength, in particular in Asia and from our international network.”

Much of the eight-point strategic plan presented by Mr Flint represents continuity from the “pivot to Asia” strategy of his predecessor, Stuart Gulliver, including plans to expand in Hong Kong and the Pearl River Delta region of southern China by redeploying capital from less profitable parts of the group. Along with Mark Tucker, who became the bank’s first external chairman when he was hired from Asian

insurer AIA last year, Mr Flint hopes to put the bank back on the front foot after a long period of restructuring and criticism that it was “too big to manage” after big fines by regulators for various misconduct issues. The HSBC chief said the bank would seek to expand its insurance and wealth management operations in Asia, while looking for opportunities to capitalise on opportunities from

Oil groups stand by bets on out-offavour plastics

ABB chief warns US jobs put at risk by Trump... Continued from page A3 appropriate raw materials, to products, that we can exchange components between different continents”. Uncertainty caused by the prospect of global trade wars could also hit investment spending, Mr Spiesshofer said. With businesses ranging from power grids to robotics, ABB depends heavily on big projects by companies and governments — although it has shifted its business model towards more service-oriented contracts. “As a business leader, we can deal with any regulatory regime, that’s fine . . . But what we need is predictability and reliability because then I can say ‘OK, I know how I invest, how I place jobs, how I allocate my capital’,” said Mr Spiesshofer. ABB itself had a $1bn annual capital expenditure of budget and so needed “a steady hand”. Adding to business uncertainty was the UK’s plan to quit the EU, he said. Swedish industrialist Jacob Wallenberg, ABB’s vice-chairman, told the FT recently he would not invest in the UK until Brexit uncertainty had cleared. But Mr Spiesshofer was more circumspect. While noting cautiousness among UK industrial clients, especially in the automotive industry, he said confidence in the energy utility sector had improved. “I think it is less bad than it was a while ago. It is still not great.” ABB’s UK operations were more focused on “front office” functions such as sales, rather than production. “We’re not fundamentally changing what we’re doing in the UK because of Brexit.” Since his appointment as chief executive in 2013, Mr Spiesshofer has sought to streamline and simplify ABB around four business areas — power grids, electrification, industrial automation and robotics. But amid the reorganisation and, until recently, sluggish global economic growth he has struggled to return ABB to growth. Orders of $33.4bn in 2017 were unchanged on the previous year. ABB shares down more than 7 per cent compared with a year ago. Mr Spiesshofer described last year as a “transition year” and hoped for significant order growth in 2018. Global changes in power markets and demand for automation offered “solid underlying growth” opportunities in the long term for ABB but the group’s prospects were “overlaid” by uncertainties created largely by geopolitical tensions. Mr Spiesshofer has come under pressure to carry out further portfolio restructuring from Cevian Capital, the large European activist fund, which has a 5 per cent stake. In 2016, Cevian urged ABB to break up its conglomerate structure by spinning off its power grids division. Last year, Cevian co-founder Lars Forberg joined the ABB board.

China’s Belt and Road Initiative and the growth of green finance. “We are going to build a leading wealth management business to capture the growing wealth in Asia,” said Mr Flint. “The Asian middle class base and average household income are expected to more than double by 2030, but Asian high net worth financial income will double before that — by 2025.”

Petrochemicals push expected to pay off even if more products are banned ANJLI RAVAL AND ED CROOKS

Donald Trump, Boris Johnson and the route to trade mayhem Both men believe that tiresome details can be left for underlings to sort out GIDEON RACHMAN

he disastrous G7 summit in Canada was a classic display of Donald Trump’s style of “negotiation” — one which combines self-pity, threats, and grandiose and impractical proposals. But just as most of America’s allies recoil in horror at the US president’s trade diplomacy, Mr Trump has found an admirer in Boris Johnson. At a private dinner last week, Britain’s foreign secretary mused: “Imagine Trump doing Brexit . . . He’d go in bloody hard . . . There’d be all sorts of breakdowns, all sorts of chaos. Everyone would think he’d gone mad. But actually you might get somewhere. It’s a very, very good thought.” It is a very good thought, but not for the reasons that Mr Johnson thinks. There are close parallels between the Trump style of trade negotiation and that favoured by hardline Brexiters such as the foreign secretary. These similarities explain why both men are likely to damage their own causes, creating “all sorts of chaos” without any compensating gains. There are three key shared characteristics to the Trump-Johnson style. The first is the belief that big ideas matter much more than detailed knowledge. The second is an over-estimation of your own strength that sets you up for failure. Finally, there is the tendency to turn friends into enemies. Mr Trump’s supporters are chortling that the president’s sudden advocacy of total free trade at the G7 summit has exposed the other leaders as hypocrites. But their bafflement stems from the fact that, unlike the US president, the other G7 leaders have some understanding of the complexities involved in international trade. For example, Mr Trump’s sug-

gestion that all subsidies should be abolished is something that the EU has been pursuing internally for decades. In practice, it requires bureaucrats and politicians to agree on what constitutes a subsidy, and then to draw up rules and submit themselves to binding judgments by international institutions. This is just the kind of international governance that Mr Trump despises. Mr Johnson also thinks it is the big picture that matters, and that the tiresome details can be sorted out by underlings. So he refuses to believe that keeping the Irish border open after Britain leaves the EU is a real problem, rather than a trivial objection thrown up by officials. The foreign secretary airily dismisses the idea that there will be chaos at ports and borders in the event of a “no deal Brexit”. After all, great men like him do not bother with tedious technicalities such as supply chain management. As far as Mr Johnson is concerned, the problem with the Brexit negotiations is that the British have not been tough enough. They should be more like Mr Trump and threaten not just to walk away from the table, but to turn it over. What Mr Johnson ignores is that Britain has already tried this. The negotiations began with brave British cries of “no deal is better than a bad deal”. You do not hear so much of this now because it has become evident that this is clearly not true. “No deal” would be disastrous for Britain, with crucial areas of commerce, such as pharmaceuticals, finance and aviation, stuck in legal limbo. The mistake made by Mr Johnson was to assume that because the EU enjoys a trade surplus with the UK, it would never dare disrupt its trading relationship with Britain. But the European market is far more important to Britain, in percentage terms, than

the British market is to the EU. The EU has also concluded that there are important principles at stake, and that conceding to Britain might unravel the entire EU internal market. So Brussels has been unyielding and the Brexiters’ bluff has been called. Mr Trump belongs to the same school of non-thought as Mr Johnson and is making a very similar error — assuming that because the EU enjoys a trade surplus with the US, it will inevitably buckle. At first sight, it seems reasonable to assume that the US is much better placed to push around its trading partners than Britain is. There are some countries such as Canada, which sends 70 per cent of its exports to the US, that are particularly vulnerable. And in some areas, the US does have a massive power advantage. In particular, military might and the role of the dollar in world finance. But trade is much more of a level playing field. The EU can retaliate against the Trump tariffs quite easily — by targeting American industries, such as farming. Meanwhile, Mr Trump’s tariffs on steel will cause pain inside the US by raising the cost of inputs for industry. The fact that Mr Trump has chosen to take on so many countries simultaneously means that US businesses may struggle to find alternative suppliers. Both Mr Trump and Mr Johnson lack the empathy to realise that, if you kick old friends in the teeth, they are unlikely to respond in a cheerful and friendly manner. Many of Britain’s EU partners felt angry and betrayed after the referendum in June 2016. And they were particularly furious with Mr Johnson who they saw as the face of Brexit. As a result, they are still reluctant to make any deals that might look like “rewarding” Mr Johnson. Mr Trump may discover that his bullying tactics on trade backfire in the same way.

ome of the world’s biggest energy companies say a backlash against plastics will not derail the industry’s big bet on petrochemicals, as traditional oil groups seek new revenue sources amid expectations of a shift away from fossil fuels. Companies from Royal Dutch Shell to Saudi Aramco are funnelling billions of dollars into petrochemicals complexes as they bank on growing demand for the materials used to make items such as plastic packaging, washing detergent and home insulation. But a public outcry in Europe over plastic pollution in oceans has led to unprecedented measures to tackle waste, including a ban on single-use cutlery, plates and straws. John Abbott, downstream director at Shell, who oversees the company’s refining, marketing and petrochemicals divisions, said even if all one-time use plastics were eliminated globally it would only reduce demand for chemicals by 3-4 per cent. “Is it an important issue? Yes. Is it a societal issue? Yes. Do we need to address it? Absolutely. But it’s not going to significantly impact our view of the supply and demand fundamentals of chemicals,” he said in an interview. Mr Abbott said that while singleuse plastics would “inevitably” be banned, proper waste management was just as important for preventing marine debris. BP said in its annual energy outlook published in February mounting environmental concerns over plastic pollution and any knock-on impact on petrochemicals demand could trim 2m barrels a day off oil consumption by 2040 — or 2 per cent of current demand. Crude is refined into naphtha and other oils which are then put through petrochemical crackers to produce the basic building blocks for making plastics. But plastics are also made using natural gas liquids as a feedstock. Industry and petrochemicals used 17.4m barrels a day of oil in 2016 and is expected to increase by more than 35 per cent by 2040 should governments continue their current energy policies, the International Energy Agency said in its annual oil outlook. “Single use plastics could peak early as early 2020s, but plastics for other use will continue,” said Stephen Zinger at consultancy Wood Mackenzie. “There are a tremendous amount of objects that use plastics that are not going to be disrupted.” Dario Scaffardi, chief executive at Italian refiner Saras, echoed these views at an industry conference in London this week, saying the oil used for petrochemicals to make singleuse plastics is “not material at all”.

Tuesday 12 June 2018

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BUSINESS DAY

FINANCIAL TIMES

COMPANIES & MARKETS

@ FINANCIAL TIMES LIMITED

Stocks gain despite political turbulence around G7 Canadian dollar weakens after Trump criticises Trudeau, attention turns to Kim summit MICHAEL HUNTER AND ALICE

hat you need to know • European stocks rise and Asia holds its nerve after G7 • Wall Street indices

tick higher • Investors look ahead to Trump-Kim summit • Italian assets rally after finance minister offers reassurance on economic policy • Canadian dollar weakens on Trump G7 backtrack • Pound falls after more weak UK economic data “There weren’t many issues up for discussion by the G7 on which President Trump was aligned with his fellow leaders in the run-up to their get-together in Canada. So, the bigger surprise over the weekend might well have been that they managed to agree on any kind of communiqué at all. “However, the manner with which his endorsement of that joint statement was revoked, via Twitter, by the already departed president was certainly pretty standard fare for this administration,” says James Athey, senior investment manager, Aberdeen Standard Investments. Hot topic Stock markets are holding their nerve, with Wall Street indices inching higher, as investors remain tuned in to geopolitics. The most acrimonious G7 in a generation ended with relations between the US and its traditional allies at new lows after President Trump withdrew his support of the meeting’s communiqué on social media. Attention is turning to Mr Trump’s summit with North Korea’s Kim Jong Un, before monetary policy meetings due later in the week from the Federal Reserve and the European Central Bank take centre stage. Europe’s bourses are rising after

steady trading in Asia and the dollar is slipping in a measured reaction to the weekend’s events, with the busy calendar ahead adding to a sense of caution. Mr Trump backtracked on his pledge to sign the G7 communiqué shortly after leaving the meeting in Canada, launched an attack on Canadian prime minister Justin Trudeau, and threatened to impose more trade tariffs on automobiles “flooding” the US market. Mr Trump called Mr Trudeau “dishonest and weak” in a tweet. Canada’s dollar is 0.7 per cent weaker at C$1.3008 per US dollar. Japan’s yen, which is known for its haven appeal in uncertain times, is 0.4 per cent stronger at ¥109.96 per dollar. Equities and fixed income Italian stocks are standing out after Italy’s finance minister, Giovanni Tria, sought to provide reassurance on the country’s economic plans and voiced his support for membership of the euro. Milan’s FTSE MIB is up just over 2 per cent, with its banks in the lead as the country’s bond yields were in demand, taking the 2-year yield down over 59 basis points to 1.088 per cent. London’s FTSE 100 is up 0.7 per cent, with Frankfurt’s Xetra Dax 30 adding 0.5 per cent. The Europe-wide Stoxx 600 is 0.4 per cent stronger. Hong Kong’s Hang Seng index rose 0.3 per cent, while South Korea’s Kospi Composite climbed 0.8 per cent. Wall Street’s S&P 500 is up 0.1 per cent in opening trade. Forex Sterling took a hit after weak UK economic data, with manufacturing and industrial output and the trade deficit all missing forecasts. The pound is down 0.2 per cent on the session to $1.3378, and is 0.5 per cent weaker against the euro, with £0.8821 required for a unit of the shared currency.

Juvenescence aims to tap longevity ‘money fountain’ UK start-up raises $50m to finance development of anti-ageing therapies CLIVE COOKSON

uvenescence, a UK start-up developing anti-ageing therapies, has raised $50m in Series A financing, with another $100m funding round planned for later this year and an initial public offering in 2019. The company is chaired by Jim Mellon, a billionaire investor who has become a passionate advocate of using recent scientific advances to promote longevity. “Our ethos is to advance the science that will add years of healthy life to every human being — and that is exactly what we are doing at record speed,” said Mr Mellon, whose main investment vehicle Burnbrae is based in the Isle of Man. Since its formation in October 2016 Juvenescence has raised $13m in seed finance, followed by this $50m Series A round involving a variety of international investors. The company’s estimated value is in the $175m to $250m range. Juvenescence is building a team of 20 scientists and drug developers in London who will co-ordinate its investments. “We have sourced a portfolio of compelling therapies,

some of which we will endeavour to take into the clinic in the medium term and others which we hope to commercialise in the nearer term,” said Greg Bailey, chief executive. The biggest investment so far is $8.3m in Insilico Medicine, an artificial intelligence company in the US that applies “deep learning” technology to drug discovery and ageing research. On Monday Insilico itself announced a funding round of $5m to $10m led by WuXi AppTec of China. Also on Monday, Juvenescence announced a $5m investment in AgeX of California, which is using stem cell technology to regenerate human tissues that are failing through age-related degenerative disease. The most exotic investment is LyGenesis, a spinout from the University of Pittsburgh, which aims to use the patient’s own lymph nodes as a bioreactor to grow a replacement organ if the original is destroyed by disease or fails in old age. It is focusing first on liver regeneration for people with end-stage hepatic disease, and future targets include the thymus, pancreas and kidney.

Happier days: Canada’s Prime Minister Justin Trudeau, right, meets US President Donald Trump during the G7 Summit in Charlevoix, Quebec, before Mr Trump attacked Mr Trudeau on Twitter © Reuters

China’s Citic to take 20% stake in Friedland’s Ivanhoe Mines NEIL HUME

Chinese state-owned conglomerate is set to become the biggest shareholder in Robert Friedland’s Ivanhoe Mines. Under the deal, announced in Beijing on Monday, Citic will take a 20 per cent stake in Ivanhoe for $560m and make a $100m loan facility available to the Canadian listed company. Citic will also help Ivanhoe arrange project financing for the Kamoa-Kakula project in the Democratic Republic of Congo, which has been hailed by analysts as the most significant copper find in decades. The investment comes as the copper market heads for a deficit, with demand set to outstrip supplies. There is a paucity of new copper projects under development, while demand for the metal is set to increase as renewable energy generation grabs market share from fossil fuels. It is also the latest example of a Chinese company investing the DRC, Africa’s largest copper producer. Mr Friedland, Ivanhoe’s executive chairman, said the agree-

ment was the culmination of a 15-year relationship between with Citic. “In 2003, the original Ivanhoe Mines was grappling with the challenge of developing its vast coppergold discoveries at the Oyu Tolgoi Project in southern Mongolia. Following extensive discussions, Ivanhoe and Citic established a strategic alliance to cooperatively pursue a number of selected common interests in metals production and related technologies. “For some time now, the board of directors and senior management of today’s Ivanhoe Mines have been evaluating potential transactions that would combine the critical elements needed for Ivanhoe to advance the development of our exceptional assets that have been established in Southern Africa in recent years,” Mr. Friedland added. Mr Friedland, a billionaire businessman who was at college with Apple founder Steve Jobs, has made some of the biggest discoveries in the mining industry during his long career. Ivanhoe will use the proceeds of the share sale to fund work at Kamo-Kakuka, as well as its

platinum project in South Africa. The company says the Platreef mine will be Africa’s lowest-cost producer of platinum-group metals. Ivanhoe’s other project is Kipushi, an underground copperzinc mine in the DRC. Once the deal, which is subject to regulatory clearance in China has closed, Citic will have the right to appoint two directors to an enlarged board. One of them is expected to be Sun Yufeng, president of Citic Metal Group. He will become Ivanhoe’s co-chairman alongside Mr Friedland. Iva n h o e’s o t h e r C h i n e s e shareholder Zijin Mining will be entitled to exercise its antidilution rights so that it can maintain a 9.9 per cent stake in the company. “A fundamental, qualifying condition has been that any new partner must be complementary to our established partners, Zijin and the Japanese consortium led by Itochu Corporation. We are confident that Citic Metal shares our vision and has the experience and financial resources to help us advance our three projects to production,” said Mr Friedland, who controls 17 per cent of Ivanhoe.

USG Corp agrees to $7bn deal from Germany’s Knauf ERIC PLATT

erman building materials maker Knauf has won over USG after months of negotiations that at times turned hostile, agreeing to purchase its US rival for $7bn on Monday. The USG board approved the $44-a-share offer from its Iphofen-based rival, after it bowed to pressure to pursue a deal from influential shareholder advisory groups as well as one of its largest stockholders: Warren Buffett’s Berkshire Hathaway. Th e U S c o mp a ny , w h i c h makes drywall and ceiling panels, publicly spurned a $42-a-share offer from privately held Knauf

in March. USG chairman Steven Leer had called that offer “wholly inadequate”. The two groups said Berkshire Hathaway, which owns more than a 30 per cent stake in USG, would vote its shares in favour of the deal. Mr Buffett publicly broke with USG management earlier this year. Berkshire said at the time it would oppose the election of four board nominees supported by USG management in an attempt to push the company to the negotiating table. In May, USG agreed to open its books to Knauf and resume talks on a potential deal. “Our board has worked diligently to evaluate all strategic

options to maximise value for our shareholders, and we are pleased to have reached this agreement which provides our shareholders with significant and certain cash value,” USG chief executive Jennifer Scanlon said. USG stockholders will receive $43.50 a share when the deal is completed. A 50 cent special dividend will be paid following shareholder approval for the takeover. Knauf expects to complete its takeover of USG by early 2019 and has committed debt financing in place. The German group received financial advice from Morgan Stanley. JPMorgan and Goldman Sachs advised USG.

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ANALYSIS

Investment banking: Stronger franchises emerge 10 years after crisis The biggest banks are even more profitable now than they were in the mid-2000s, but shareholders still face low returns on equity ties, a business that has mainly hit the post-crisis headlines for huge falls in revenue, including Goldman Sachs’ horrendous 2017. Citi made $12.1bn in FICC revenues last year, eclipsing Goldman to become the second biggest trading player after JPMorgan. Citi also grew strongly in debt capital markets, the business of advising companies on selling bonds.

LAURA NOONAN

hen Lehman Brothers imploded almost 10 years ago, few Wall Street banks were worse placed to withstand the fallout than Citigroup. While most of its rivals had delivered bumper profits in 2007, Citi had already seen its earnings collapse to $3.6bn from $21.5bn after its subprime bets went badly wrong. Yet, a decade on from the crisis that threatened such devastation, Citi’s investment bank chief James Forese can say without irony: “I don’t think there is much question that we’ve been a winner since the crisis. Even from the [high] of the 2005/06 period to today . . . our franchise is much stronger today than it was back then.” Mr Forese is not the only one of his peers enjoying the unlikely resurgence of investment banking a decade after the crisis. Indeed, data collected by the Financial Times show that groupwide profits last year of $78.4bn across the top nine investment banks — excluding the much-changed Bank of America — were higher than the $75.4bn recorded in 2007. Industry profits in dollar terms are back to precrisis levels. Investment bank rankings At JPMorgan, the world’s biggest investment bank by revenue every year since 2010, investment bank head Daniel Pinto sees global growth driving revenue higher in the coming years, while big banks like his deploy technology to cut costs and win clients. UK-headquartered HSBC has quietly doubled the size of some investment bank businesses in the past decade. Samir Assaf, its global banking and markets chief, says he will continue hiring and outgrowing the market supported by the performance of HSBC’s Asian operations. FICC revenue Even at Barclays, which has had a turbulent journey through the crisis, their investment bank head Tim Throsby is bullish, speaking of his willingness to row back on some crisis-era cuts if it makes financial sense. “I speak to a lot of young people in our teams and some of them at different stages over the last number of years have wondered . . . are the best days for our industry over?” says Mr Throsby. “I think anything but.” Equities revenue

Investment banks have spent much of the decade under a shadow since the meltdown of the US mortgage market. They have watched private equity firms and hedge funds take their place at the top of the finance food chain. Executives have complained loudly that the regulations put in place after the crisis have hampered their ability to operate. However, the sector has also benefited from some powerful trends. The last year has brought the American banks higher interest rates and a corporate tax cut that promises to put trillions into the pockets of US companies. Crisis-era mergers, such as Barclays’ assimilation of the US arm of Lehman Brothers, JPMorgan’s purchase of Washington Mutual and the Bank of America-Merrill Lynch deal, have left the surviving banks with greater economies of scale. A succession of cost-cutting plans has made

them leaner and an M&A boom has boosted fee income. Investment banks have also regained their cachet among ambitious graduates. Even the imperilled Deutsche Bank attracted 110,000 applications for its 2018 graduate scheme. While the headline figures show robust earnings, the aftermath of the crisis still lingers. Largely as a result of regulatory demands, the nine banks whose finances were analysed by the FT have almost doubled their shareholders’ equity from the end of 2007 to the end of last year. The result has been lower returns. While profits may be back to pre-crisis levels, the return on equity most definitely is not and bankers concede it probably never will be. “They [investment banks] are not seen as valuable parts of global diversified banks. They are seen as a drag on group profitability and on valuation,” says Sven Oestmann, senior equity analyst at Fidelity, one of the world’s biggest institutional investors. That ambivalence is partly a reflection of the bailouts that so many banks required a decade ago. Citi, for instance, received $45bn of public funds to prevent it following Lehman’s path. “In capital markets, Citi is strategically positioned perhaps better than at any time before given its balance sheet strength, more measured expansion and competitor retreat,” says Mike Mayo, a banks analyst at Wells Fargo. “Yet, there is no way to say that Citi is a winner since before the financial crisis when Citi, in our view, effectively failed.” Investment banking revenues In Europe, Royal Bank of Scotland and UBS, which were once among the world’s biggest investment banks,

were bailed out. Deutsche Bank, Credit Suisse and Barclays avoided rescues but repeatedly went cap in hand to shareholders after trading losses and multibillion-dollar fines. On top of that, the investment banks have to navigate a very different environment. Regulations have in effect banned them from once-lucrative activities such as trading stocks on their own behalf and co-investing in funds with clients. Areas including trading structured products have all but dried up as clients balked at the collapse in value of some instruments and revelations of widespread manipulation of others, especially mortgage-backed bonds. Europe’s investment banks have fallen out of the world’s top five since 2015 after a series of exits from Asia, the US and their still fragile home market in continental Europe. For groups across the world, competitive threats have sprung from sources that would have been unthinkable even a few years ago, as big banks face off against everyone from the likes of Amazon and Apple to two-man online trading shops. Mr Forese attributes Citi’s improved fortunes to a “less is more” approach. “The important parts for us were the decisions that we took in the immediate wake of the crisis . . . we became a much more focused and much simpler business model.” Citi has grown market share with its best clients while jettisoning activities in insurance and non-bank lending. The investment bank was deemed core, but within that Mr Forese’s division now serves “a little over 12,000” clients, less than half the 32,000 it boasted of pre-crisis. Citi’s biggest success was in fixed income, currencies and commodi-

A decade of transformation “Who would have thought that the old Salomon Brothers franchise would make this comeback in a different form with different management and added capabilities?” asks Mr Mayo, referring to the 1997 purchase of bond house Salomon Brothers. “There’s been a revival of the legacy franchise in the name of a refurbished and stronger Citi.” The US investment banks say the problems experienced by some of their European rivals helped them gain share. But they do not expect to have it so easy in the future. Trading was also at the centre of HSBC’s investment bank growth. HSBC averaged annual trading revenues of $2.32bn in 2006 and 2007. Last year, its trading division drew in $5.4bn and was the fifth largest of the 10 banks. HSBC’s Mr Assaf believes “one of the best calls” his bank made was around 2014 when others, particularly in Europe, wanted to exit businesses that required a lot of capital under new regulations. “We said no, our advantage is to be capital heavy as long as we know how to price it [capital],” he says. At Barclays, Mr Throsby must contend with a parent company that is reluctant to grow its investment bank exposure and a shareholder base that remains decidedly hostile to his business. One activist investor is petitioning Barclays to sell the investment bank. But Mr Throsby, a JPMorgan veteran who joined 17 months ago, argues that despite limited resources Barclays will emerge as the pre-eminent European investment bank. “We’re the only European bank that’s deadly serious . . . about having a serious transatlantic corporate and investment bank,” he says. “The US is the largest capital market in the world and also the most lucrative.” With an enlarged Wall Street presence thanks to the acquisition of Lehman’s American business, US revenue makes up 55 per cent of Barclays’ corporate and investment bank, and more than 55 per cent of its profit. In Asia the bank cut back sales and trading of equities in 2016, in one of its first big strategic decisions after former JPMorgan investment banker Jes Staley became group chief executive. It also withdrew investment bankers from some Asian markets. “We’ve let people confuse that [pulling out of cash equities in Asia] with either a general lack of enthusiasm for Asia or a more general withdrawal from Asia. Neither of which is the case,” says Mr Throsby. As if to prove a point Barclays has already sent its bankers back into Australia. Yet despite the recent revival of investment bank fortunes, shareholders in many banks will need a lot of persuasion before they support expansion. Fidelity’s Mr Oestmann sees big challenges for European groups, which are only allowed to keep their investment banks because it would be too difficult to sell or close them. He says: “The market’s view of US investment banks is more favourable.”

Tuesday 12 June 2018

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Osinbajo wants APPO to focus on cross-sectoral investment, refinery ownership

Bayelsa public sector reforms: Monarch urges government to look inwards

… as Kachikwu emerges APPO’ new president

SAMUEL ESE, Yenagoa

HARRISON EDEH, Abuja

s the Bayelsa State government kicked off town hall meetings to drum support for ongoing public sector reforms, a monarch has urged the state government to look inwards in finding lasting solution to the malaise. Funpere Akah, Ibenanaowei of Gbarain kingdom, made the call while giving his goodwill message at the Gabriel Okara Cultural Centre, Yenagoa on Monday, at the commencement of the town hall meetings. The state ministry of information and orientation is embarking on the town hall meetings to garner stakeholders’ support for the public sector reforms of the Governor Henry SeriakeDicksonadministration. Daniel Iworiso-Markson, commissioner for information and orientation, and host of the town hall meetings, said Governor Dickson had sent them to appeal to the people of Yenagoa Local Government Area to support the reforms in order to stop payroll fraud. He said, “Payroll fraud was crippling our state today” and that the reforms would free up moniesfordevelopmentprojects as well as help in reduce crime and criminality when young people were duly employed. Iworiso-Markson reiterated the state government plan to employ 1,000 graduates, pointing out that the number of those to be employed could increase significantly this year as more spaces were yielded up as a result of the reforms. But, Funpere Akah, Ibenanowei of Gbarain kingdom in Yenagoa Local Government of the state, stressed that payroll fraud was perpetuated by both past and present government officials, thereby urging government to look inwards. He accused government appointees of working against the public sector reforms, saying “much as we have agreed to support the governor on the reforms, the governor is serious and if those working for him are not serious, everything will be zero.”

President Muhammadu Buhari and King Mohammed VI of Morocco watch as Audu Ogbe, minister of agriculture and rural development, and Aziz Akhannouch, Moroccan minister of agriculture, maritime fisheries, rural development, forestry and water, sign Cooperation Agreement in the field of Agricultural Vocational Training and Technical Supervision between Nigeria and Morocco in Ramat, yesterday. NAN

New bill seeks N100m minimum capital for indigenous firms to enjoy pioneer status OWEDE AGBAJILEKE & HARRISON EDEH, Abuja

new bill, the Industrial Development (Income Tax Relief) Act (Amendment) Bill, is in the process of legalizing a N100 million minimum capital as the requirement for indigenous companies to enjoy pioneer status, which comes several incentives. The bill, if passed, will cut off SMEs from enjoying the pecks that comes with being recognised as a pioneer in the eligible sectors of the economy. In a set of new guidelines for the operationalisation of the pioneer status in the country, the Ministry of Industry, Trade and Investment, last year reviewed the minimum Qualifying Capital Expenditure (QCE) 200 percent from N50, 000 to N100 million, and had it later approved by the Federal Executive Council (FEC). However, this review is about to be codified in a proposed bill seen by Busi-

nessDay, which also seeks to amend Section 6 of the Principal Act by increasing the capital expenditure for other companies applying for Pioneer Status Certificate from N150,000 to N120 million. But some members of the Organised Private sector (OPS) are concerned that raising the QCE could deny most of the 37 million Micro Small and Medium Enterprises (MSMEs) the necessary pioneer status benefits and discourage the much needed investments. The bill, which is sponsored by Sabo Mohammed (APC, Jigawa State) has passed First Reading in the upper legislative chamber, even though it has been passed at the lower house. According to the explanatory memorandum, “The Bill further recognizes the need to provide the necessary incentives for additional investments by companies. Fundamentally, all proposed amendment is meant to ensure smooth implementation of the Pioneer status Incentive

scheme by the Nigerian Investment Promotion Council (NIPC)”. The bill retains the powers of the President to amend the list of Pioneer Industries and Product (Pioneer Status List). It also mandates the President to issue a notice of approval or disapproval within one year of the application for Pioneer Status Certificate. “All application for pioneer status certificate made pursuant to the provisions of this Bill shall be processed by the Minister and forwarded to the President and a Notice of disapproval or approval shall be issued within one (1) year from the date of submission of application,” the proposal reads. The Small and Medium Enterprises Development Agency of Nigeria defines Micro Enterprises are those whose total assets (excluding land and buildings) are less than N5 million with a workforce not exceeding nine employees. Small Enterprises are those whose total assets (excluding land and building) are above

Nigeria’s oil export plunges to its lowest of 1.43mbpd DIPO OLADEHINDE

s elections fever draws nearer, Nigeria’s oil exports are predicted to drop in July to around 1.43 million barrels per day (mbpd). According to reports by Reuters, loading plans for the month of July have dropped to its lowest so far this year. “Obviously, this recent development will affect Nigeria revenue negatively, however it’s a short term effect,” Emmanuel Afimia, an energy analyst at Afimia Consulting Services, said. The export plan consists of 48 cargoes compared to 60 cargoes and a daily level of 1.79mbpd

in June. This drop in volume has been attributed to the shutdown of the Bonny Light stream, which has been declared a force majeure for a month. The force majeure is a legal clause that allows companies to cancel or delay deliveries due to unforeseen circumstances. Prior to the declaration of force majeure on Bonny Light exports, the nation’s crude shipments were already witnessing delays following a leak on the 200,000 to 240,000bpd TransForcados pipeline that shut down thus effectively cutting deliveries of Forcados, the country’s largest crude grade. July’s export plan also in-

cludes four cargoes of Akpo condensate with 123,000bpd, compared with four cargoes in June with 133,000 bpd. A number of smaller streams showed no cargoes would load in July as the export plans showed one extra cargo of Agbami than in June, as well as one more Bonga and an extra Qua Iboe. It also shows 3 fewer Forcados and one fewer Escravos. Nigerian oil export plans are prone to revisions and delays, with cargoes frequently pushed from one month to the next. There are also reports that Nigeria’s crude oil exports are under pressure as the United States is flooding Europe market with a large volume of crude.

N5m but not exceeding N50 million with a total workforce of ten and above, though not exceeding forty-nine employees. Medium Enterprises, according to the agency are those enterprises whose total assets (excluding land and building) are above N50miilon, but not exceeding N500 million Naira with a total workforce of between 50 and 199 employees. The proposal contradicts Wednesday’s announcement of the Federal Executive Council (FEC), which approved two Executive Orders and five amendment bills to the country’s tax policies aimed at reducing tax burden on Nigerians and boosting ease of doing business. Tony Ejinkonye, the immediate past President of Abuja Chamber of Commerce told BusinessDay “ A lot of micro Enterprises stand the risk of exclusion if this bill scales through, and it goes contrary the ease of doing business being championed by the federal government”

A7 NEWS

BUSINESS DAY

ice President Yemi Osinbajo has challenged African Petroleum Producing Organisation (APPO) countries to focus on cross-sectoral investments and refinery ownership that will enable them reap the full benefits as oil producing nations. The Vice President, who spoke at the Extra Ordinary Session of Council of APPO, bemoaned the paucity of funds required to undertake significant investments in the oil and gas industry in Nigeria and the rest of the African continent. He argued that in the increasingly inter-dependent world that we live in, greater levels of regional integration would be required, allowing the free-flow of the dividends of research and technology. Speaking at the opening ceremony of the Extraordinary Session of the Council of Ministers of APPO in Abuja, the Vice President disclosed that due to the fact that the oil and gas industry was very capital intensive, individual African countries do not have the resources required to make the necessary investments in the industry. “This is especially true, because these investments are competing with infrastructure and social services for the limited resources available to us as government,” he said. He, however, called for increased synergy and cooperation among oil-producing countries in Africa, as according to him, this is critical to tackling the funding challenges that had hindered the growth and development of the continent’s petroleum industry.

FG to deploy N37bn funding support to improve metering access OLUSOLA BELLO & HARRISON EDEH,

inisterpower,worksand housing, Babatunde Fashola, on Monday said the Federal Government wouldtakeadvantageoftheMeter Asset Provider (MAP) regulation to deploy N37 billion towards supplying meters through private sector. The MAP regulation gives private investors opportunity of investing in meter assets, working closely with the distribution companies of Nigeria, and closing metering gap of 3.36 million electricity consumers without metering device. The enforcement of the MAP regulation came into enforcement, and meter provision began

on April 3, with the Nigeria Electricity Regulatory Commission (NERC) licensing 30 firms to participate in the distribution of meters. Speaking at the 28 Monthly Power Sector Operators Meeting on Monday in Kaduna, Fashola said the Federal Government was determined to address concerns of poor liquidity in the sector and would work with the private sectors to close metering gap. According to Fashola, “Meter Supply has become the big issue of the moment that consumers wants us to resolve. As a government, we hear them loudly and clearly. “As Power supply continues to increase in Generation, Transmission and Distribution, the

demand for meters will increase because more power supply and consumption will likely result in increased bills.” The minister, while explaining government’s efforts in providing meter access to people, said estimatedbillingsinthesecircumstance would become a major cause of distrust and conflict between consumers and Discos, and meters were easiest way to build the bridge of trust, prompting government’s intervention in providing meters. While calling on the Discos and the transmission companies to raise their operations and pay close attentions to repairs, Fashola said it had become more demanding as rainy season was already around.

A8 BUSINESS DAY

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Tuesday 12 June 2018

NEWS

Nigeria, Morocco partner to strengthen economic relations MIKE OCHONMA & ENDURANCE OKAFOR

ederal Republic of Nigeria and the Kingdom of Morocco on Monday signed three agreements in Rabat, the capital of Morocco, on a gas pipeline, a basic chemicals platform, and agricultural cooperation. The signing witnessed by President Muhammadu Buhari and King of Morocco, Mohammed VI, focused on strengthening economic relations in gas resource development, agricultural training and management and global investments, as compiled from the Nigerian Presidency. The joint declaration by the two countries laid out the next steps for the completion of a gas pipeline deal that will be built onshore and offshore. This is following an earlier agreement to the pipeline by the two countries in December 2016, and launched feasibility studies ending with a plan to build the pipeline onshore and offshore. “The regional gas pipeline when executed will see Nigeria providing gas to countries

in West Africa sub-region that extend to Morocco and Europe,” the Presidency said in a tweet. The construction of the pipeline will be phased and based on increasing needs of the countries crossed, and Europe, for the period of 25 years. However, the cost of such a project has not be made known to Nigerians. The feasibility study of the agreement on the pipeline, which was signed by Farouq Said Garba, group general manager of National Petroleum Corporation (NNPC) and Amina Benkhadra, director-general of the National Office of Hydrocarbon and Mines (NHM), will be concluded by July 2018. The Nigeria Morocco Gas Pipeline (NMGP), designed to be 5,660km long, will reduce gas flaring in Nigeria and encourage diversification of energy resources in the country, while cutting down poverty through the creation of more job opportunities. The gas pipeline project will further encourage utilisation of gas in the sub-region for domestic needs and discourage desertification.

‘Entrepreneurial training is key to ending youth-related crimes’ SEYI JOHN SALAU

ounder/CEO, Emzor Pharmaceuticals Limited, Stella Okoli, has called on Nigerians to pay attention to entrepreneurial training if it wishes to end youth-related crimes and unemployment. Okoli, who is also the Board chairman of the foundation, made the call while delivering an address at the 12th annual Heart & Soul Gala of the Chike Okoli Foundation, noting that with training in entrepreneurship, youths could learn discipline, financial management, good habits and horn innate skills that could take them and their families out of poverty. She noted that it was because of the importance of this kind of training to the nation that the Chike Okoli

Foundation had taken it as its core responsibility not only to mould the heart and minds of Nigeria’s next generation but also to inculcate in them the 21st Century skills, techniques and competencies. “It was in bid to advance these ideals that the Chike Okoli Centre for Entrepreneurial Studies (COCES) was established at the Nnamdi Azikiwe University, Awka, in 2011,” she said. Vice President Yemi Osinbajo, who was a special guest of honour, thanked the Foundation for its contributions to healthy living and entrepreneurship. Noting that the Foundation has so far trained 5,000 business owners and budding entrepreneurs, Osinbajo said the Foundation had now become a fountain of hope that the nation needed at this time of its development.

R-L: Michael Larbie, CEO, Rand Merchant Bank Nigeria (RMBN)/regional head West Africa; Chidi Iwuchukwu, head, leveraged finance, RMBN; Okechukwu Enelamah, minister of industry, trade and investment, and Jumoke Oduwole, senior special assistant to the Nigerian vice president on trade and investment, during a musical performance at Terra Kulture, as part of RMBN 5th annivesarry activities in Lagos.

Investors’ cold on Arik over huge debt burden, as AMCON sale nears IFEOMA OKEKE

usinessDay’s findings have shown that since the takeover of Arik Air by the Asset Management Corporation of Nigeria (AMCON), investors who had shown interest in the airline have declined after discovering huge debt profile against its assets. The situation has become more urgent for the airline and AMCON as the corporation last week disclosed plans to take decisive decision by selling off all its key assets this year. Recall that the Federal Government, through AMCON in February 2017 took over the operations of Arik Air as a result of its huge debt. It was gathered that the beleaguered airline was indebted to the tune of over N300bn, with AMCON alone owed N135bn; while its obligations to aviation fuel suppliers, insurance firms, aircraft maintenance organisations, the Federal Government and the various aviation agencies, as well as food vendors made up the balance.. A source at AMCON told BusinessDay that Joseph Aru-

VP’s visit: Edo market women hail Obaseki, Osinbajo on collaboration, women empowerment

s Edo State readies to host VicePresidentYemiOsinbajo on a two-day visit, market womeninthestatehavelaudedthe healthy, impactful collaboration between the state and the Federal Government on projects that directly impact their businesses and improve their livelihood. The Vice President is expected to be in Benin City on June 14 and 15, and will stop over at Edaiken Market in Uselu for the commissioning of the pilot phase of a solar project under the Energising Economy Programme of the Federal Government. Traders in Edaiken Market hailed the Vice President for bringing the initiative to the market, noting that they couldn’t wait to express their apprecia-

tion to the Presidency for picking them out for such scheme. The traders also lauded the state governor, Godwin Obaseki, for his sustained effort to transform the state and the increasing influx of businesses into the state, which according to them, has resulted in more sales and activity across markets. Leader of Edo Market Women, Madam Blacky Ogiamien, said, “I am excited over the Vice President’s visit. We are fully in support of the solar project in the market, as we no longer have to worry about power from Benin Electricity Distribution Company (BEDC) to be able to operate smoothly. We would love that the programme is extended to cover the entire market and

other markets in the state.” Noting that the state government has cleaned up the market and curbed the excesses of traders in Uselu and environs, she expressed delight at the partnership between Governor Obaseki and the Vice President, Osinbajo. A trader in Edaiken Market, who identified herself as Mary, said that the visit is highly anticipated as the women are eager to show their support for the policies of the Federal Government in the state, adding, “We are very happy that the Vice President is coming to our market. All of us are awaiting his arrival and we would love to give him a hero’s welcome as he has performed well, especially with the project in our market.”

memi-Ikhide, the former chairman of Arik Air had held several meetings and negotiations with interested investors to buy into the airline but the investors have been overwhelmed by the airline’s huge debt burdens. The sources explained that Ikhide is making all efforts to get investors to pay off the huge loan so he can still have a stake in the airline because if AMCON brings in an investor, Ikhide will have no stake in it. “Since the time AMCON took over, Ikhide has been coming to negotiate. He said we should allow him get some foreign investors who will come and pay our debt so he can partner with them to take back Arik Air. We do not care where he gets the money from. Government said we should ensure Arik does not die because it is very strategic to Nigeria. “Again the debt must be paid because it is depositors’ funds AMCON borrowed from the Central Bank of Nigeria (CBN) to buy these loans. So, the challenge Ikhide is having is that when a new investor comes, they discover that the debts are very huge. This has

scared a lot of them away. When they see the kind of money they will pay, they get discouraged,” the source explained. “We are not interested in him not having back his airline. We just want him to pay the money and keep the airline alive. We want to have a very peaceful exit that will not wreck the activities of the airline,” the source added. John Ojikutu, Member of aviation industry think tank group, Aviation Round Table (ART) and Chief Executive of Centurion Securities, told BusinessDay that Arik today may not be worth N200bn and that explains the reason why the new buyers would probably pay less and that also explained why AMCON is tired and wants to sign off by next year. “Arik was almost a dead horse by the time AMCON came with life support to rescue it. It was evident to some of us that the airline would stay longer than 30 years under that support for AMCON to recover at least N10bn every year. In spite of the new aircraft in Arik fleet, not all are owned by Arik or fully paid for. That

would have helped AMCON to determine the real value of Arik against the debt of over N300bn, and that is what the new buyers are seeing. “There seem to me that there is a complicity of the banks and AMCON itself in the loan facilities otherwise how or why would they not have detected that the various loans given to the airline within 2 years into its operations had no collateral except political forces behind the ownership of the airline,” Ojikutu queried. He said the Nigeria Civil Aviation Authority, (NCAA) too would share in the blame because it did not ensure that the airline complied with the provision of the Nigeria’s Civil Aviation Regulations, (CARs) Part 18 that requires all operators to submit regularly the monthly balance sheet of its earnings and spending to ensure its financial health is sufficient for its continuous operations. He stressed that if these checks were done by the banks, AMCON and NCAA, there was no way the airline would have incurred debt of N300bn within 5 years of its operations.

Ambode, wife want citizens to embrace policies JOSHUA BASSEY

overnor Akinwunmi Ambode of Lagos State and his wife, Bolanle, have appealed to Lagosians to keep faith with the current administration and embrace the various policies and programmes designed to make Lagos a better place for all. Both spoke at the second edition of Lagos Marathon Praise, a 12-hour non-stop song ministrations featuring 28 gospel artistes, held weekend, in Ikeja, to appreciate God’s mercies, peaceful co-existence among various language groups as well as the religious harmony being experienced in Lagos. According to Bolanle, the praise hour is also to show gratitude to God, for faithfully directing thegovernmentandprotectingthe

residents since the last three years. The governor’s wife noted that the government and the people continually owed to God a debt of thanksgiving, and it was only when this was done that the state and the citizens could enjoy greater prosperity. “Wehadthoughtdeeplyabout the wonderful acts of God to us as individuals, as a government and asapeople;andcametothehumble realisation that, we owe Him a huge debt of gratitude we can never fully repay, no matter how we try. What we are doing here today is just a mark of gratitude from grateful servants,” she said. Governor Akinwunmi Ambode represented at the event by his special adviser on education, Obafela Bank-Olemoh, specifically said he was grateful to God for the transformation witnessed

in the state the last three years. “Each time I reflect on the level of development our state has experienced within this period, I come to the conclusion that this could not have been possible without God. “I believe this gathering is divinely ordained and timely considering we are approaching the general elections in 2019 and the measure of help that we have receivedfromGodasapeopleand State. I also believe very strongly thatasweengageinthismarathon praise,weshallreceivemoregrace and blessings from God.” The governor said the musical concert aligned with his administration’s drive to support and create the enabling environment for thediscoveryanddevelopmentof personaltalents,particularlyinthe area of creative arts.

BUSINESS DAY

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NEWS YOU CAN TRUST I TUESDAY 12 JUNE 2018

Opinion

Making the case for sustainability LOLA CARDOSO Cardoso is Head, Corporate Strategy and Innovation, Union Bank

he debate about the role of business in society has been ongoing since the 1960s. Over the years,literature and research on Corporate Social Responsibility (CSR)havemoved from general study of the concept as an ad-hoc activity in company operations to a push to include CSR in company strategy. From corporate philanthropy to community involvement, from the triple bottom line to creating shared value and sustainability, companies are being calledout to take responsibility for issues in society. Nigeria is not exempt. The concept of sustainability in Nigeria may seem far-fetched, almost impossible to achieve because it appears that companies who have integrated sustainability into their businesses are usually those with foreign parent companies, possessing a presence in countries implementing and holding the private sector accountable. Beyond the normative reasons for intentionally incorporating sustainability into the strategy

– whether by providing food for the poor or the social enterprise model of Tom’s one-for-one program – Nigerian businesses must see that adopting sustainable practices at each level of the value chain may not be as difficult as previously assumed. It just takes intentionality, communication and responsibility. Union Bank is a solid example of this. Managing risks in a sustainable way requires certain decisions around our value chain activities. By balancing the reliability and quality of our value chain inputs with more efficient deployment and consumption of internal resources, a business can ensure continuity and resilience. Our mindsets must shift from being one-dimensional to embracing the concept of the circular economy, by extracting the most value from our resources and finding ways to regenerate and reuse materials. Managing internal stakeholders is also critical for sustainability. Gender equality, remuneration and a company’s ability to meet the needs of its employees are key for retention and positive engagement which in turn translate to reduced operational risk and sustainable positive outcomes. An engaged employee, confident that his/her employer is concerned about individual welfare and the community will most likely respond positively to business objectives. More

importantly, engaged, talented employees are most often than not retained, saving the business costs of recruitment and inefficiencies that arise from vacancies. Cost reduction and management is a more common method for ensuring business continuity. While a common practice for businesses is to reduce staffsize to cut costs in the short-term, a more practical, proactive and sustainable cost management method would be to spend less from the start by being eco-efficient. Many businesses are unaware of the meaning and advantages of eco-efficiency. An eco-efficient process generates more value by utilizing technology and adopting process changes to reduce the use of natural resourceswith the attendant impact on the environment. The need to use less to deliver more forces the organization to think up innovative ways to achieve its objectives and manage its assets. Asset efficiency implies that a company plans its asset capacity, maintains it optimally and invests in the rights assets strategically. One method that we at Union Bank have employed is shutting down offices after a certain time. Lights are turned off, power generation is cut to ensure optimal use of facilities and adherence to work-life balance of our people;our primary assets. We are also investing in solar powered branches

and energy saving technology in our buildings including motion-sensing light switches. Our efforts around recycling have also consistently grown and expanded with recycling occurring in all Lagos locations and with a view to expanding to more states in 2018. A sustainability mindset pushes a company to always think and design solutions to meet society’s constantly changing needs. Designing such solutions implies for a sustainable organisation, constant delivery of innovative products and services, for which there will always be a market. Although initially, a new product may be considered different or unnecessary – this is a result of human inherentresistance to change –however if it truly meets a general need, it would eventually be accepted. Innovative solutions always give the risk-taker the first-mover advantage and consequently, larger market share. Apple and Google are examples of this. By solving the need for personal computers and the human desire to know instantly, they created products people the world over need and continue to own the largest market share. The more intangible benefits that accrue to these companies are harder to ascertain and difficult to measure, however, results are obvious. Customer loyalty to the brand, product differentiation, attraction and retention of the best talents

are results of trust, internal values alignment, continuous innovation and commitment to social development.Many business leaders do not attach value to any of these due to the difficulty of definition and measurement. Those who have tried have inflated figures and got the worst for it. Our understanding, at Union Bank, of the need to measure our sustainability and be accountable for our value chain processes and contribution to social development has necessitated our investment in talent and education, citizenship, sustainability and innovation. Our commitment is articulated and progress captured in annual sustainability reports. We have revamped existing and developed new processes for eco-efficiency and deployed latest technology to create simpler and smarter experiences for our employeesand customers. We have done this while stepping up our commitment to a better Nigeria and more a sustainable world. We have launched innovative solutions as a bank and are working via a series of partnerships to encourage, develop and support innovative ideas to fruition to create value for Nigerians. A recent example is our centenary innovation challenge. We have also launched outreach initiatives to enhance the financial literacy of Nigerians and through the introduction of innovative savings products

like our Union Korrect product, we are encouraging saving habits of Nigerians and helping them translate their financial knowledge into action which helps themcreate value for themselves and their networks. Our efforts in this initiative facilitated our joining the Business Call to Action (BCtA) group, an initiative that aims to hasten the achievement of the Sustainable Development Goals (SDGs) by challenging companies to develop inclusive business models, engaging economically disadvantaged people as consumers, producers, suppliers, distributors of goods and services and employees. Taking the first step - making the commitment to sustainability – is always the hardest. This step is important in building alignment with all stakeholders and driving the associated changes. Union Bank has taken this first step and many thereafter. Each step has afforded us significant learning and we leverage each one as a springboard to the next, demonstrated in the progress we have shared in ourannual Citizenship, sustainability, Innovation (CSI) report. Our commitment to sustainability is strongly in line with our vision to be “Nigeria’s most reliable and trusted banking partner”. As we commence the journey into another century, Union Bank is committed to being recognized as a sustainability champion, a socially driven and responsible bank.

Why the Swiss should vote for ‘Vollgeld’ •A radical rethink of the financial system was essential after a devastating crisis MARTIN WOLF Wolf is the Chief Economics Commentator of The Financial Times.

radical rethink of how the financial system works was, o n e m i g ht hav e thought, essential after the devastating crisis of a decade ago. Instead, the system was patched up. Now, predictably, the mood is shifting towards removing much of the regulation. That is why I hope, despite the polls, that the Swiss vote in favour of the Vollgeld proposal in the referendum on June 10. Finance needs change. For that, it needs experiments. According to a database compiled at the IMF, 147 individual national banking crises occurred between 1970 and 2011. These crises afflicted small and poor countries like Guinea, and big and rich ones, like the US. They were colossally expensive, in terms of lost output, increased public debt

and, not least, political credibility. Within just three years from 2007, cumulative output losses, relative to trend, were 31 per cent of gross domestic product in the US. In the UK, the recent crisis imposed a fiscal cost only exceeded by the Napoleonic war and the two world wars. (See charts.) So how does this industry create mayhem on this scale? And why is it allowed to do so? It does so — and is allowed to do so — because, as the Bank of England has explained, banks create money, which is an essential public good, as a byproduct of their lending, which is an important economic good. We want banks to have risky assets and safe liabilities. Yet the liabilities of a highly leveraged, risk-taking institution cannot be safe and will unavoidably seem least safe during a crisis. Yet it is then that people want their money — their reserve of purchasing power in a frightening world — to be at its safest. Worse, it is often easiest for banks to justify lending more just when they should lend less, because lending

creates credit booms and asset-price bubbles, notably in property. The willingness of the public to treat bank liabilities as stores of safe purchasing power provides stable funding, until panic sets in. To reduce the likelihood of panic, governments insure bank deposits, liquidity and even solvency. That makes crises rarer, but bigger. The authorities are simultaneously supporting banks and reining in the excesses created by support. This is a system designed to fail. Today, banks are less leveraged and better supervised than before the crisis. In the UK, retail banking is also ringfenced. Yet, the banks are leveraged at about 20 to 1: if the value of their assets falls by 5 per cent or more, such a bank becomes insolvent. One way to make banks safer then would be to increase their equity capital four or five times, as recommended by Anat Admati and Martin Hellwig in The Bankers’ New Clothes. An alternative way to make the system safer is to strip banks of the power to create money, by turning

their liquid deposits into “state” or “sovereign” money. That is the idea backed by the Vollgeld initiative. An alternative way of achieving the same outcome would be via 100 per cent backing of deposits by claims on the central bank — an idea proposed by free-market Chicago School economists in the 1930s. The rest of the financial system would then consist mainly of investment banking and mutual funds. The latter shift risk on to the investors automatically. The former might need to be regulated, but mainly on capital. The shift to a system like this would, as Thomas Jordan of the Swiss National Bank argues, be a mini-earthquake. Moreover, the proposal raises questions about the purposes to which the new sovereign money might be used. The obvious possibility is to use the money to finance the government. This idea is highly objectionable to some: it would surely create big challenges. Yet those challenges are nothing like as fundamental as

was transferring responsibility for a core attribute of the state — the creation of sound money — to a favoured set of profit-seeking private businesses, co-ordinated by a price-setting government institution, the central bank. In no other economic area is public power so mixed with private interests. Familiarity with this arrangement cannot make it less undesirable. Nor can familiarity with its performance.The 2007 financial crisis hit the UK’s finances hard There are many other ideas in this broad area that seem worth pursuing. One would be to allow every citizen to hold an account directly at the central bank. The technological reasons for branch banking are, after all, perishing quickly. Nicholas Gruen, an Australian economist, has argued that no private institution should have better access to the public’s central bank than the public itself does. Furthermore, he adds, the central bank could operate monetary policy by lending freely against safe mortgages. The central bank would not need to lend to

banks per se at all. It would focus on assets. The fundamental point here is that the burden of proof should not be on those who favour change. After a long series of huge and destructive crises, it falls rather on those who support the status quo, even today’s modified status quo. The advantage of the Vollgeld proposal is that it is a credible experiment in the direction of separating the safety rightly demanded of money from the risk-bearing expected of private banks. With money unambiguously safe, it would be far easier to let risk-taking institutions bear the full consequences of their failures. To the extent that bankruptcy remained difficult, regulation would still be needed, especially of equity capital. At the limit, as some argue, riskbearing financial intermediation might need to be ended. The Vollgeld proposal is not as radical as this. Yet it could provide an illuminating test of a better possible future for what has long been the world’s most perilous industry. May the Swiss dare.

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: 08022238495 Editor: Anthony Osae-Brown. All correspondence to BusinessDAY Media Ltd., Box 1002, Festac Lagos. ISSN 1595 - 8590.