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news you can trust I ** tuesDAY 12 may 2020 I vol. 19, no 561

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n May 4, $311 million was repatriated to Nigeria in the middle of one of the country’s worst fiscal crises ever. The amount is part of public funds still being recovered two decades after a former corrupt military leader stole around $3-$5 billion in the

early 1990s. Sani Abacha, a former dictator, ruled from November 1993 till his death in June 1998. He overthrew an interim government led by Ernest Shonekan, who was holding power with hopes of returning the country to a democratic rule. Abacha was usually behind his black glasses, a no-nonsense person who rarely smiled or left

the Aso Rock. Although his personality was enigmatic, Abacha was not the kind of person that could superficially be considered generous. He was a warlord and a gross abuser of human rights. That image of Sani Abacha, though not forgotten, has softened over time to being known more as a benevolent thief whose loot proceeds keep

coming handy at a time that the Nigerian petrodollar state is broke – no thanks to a history of corrupt leadership and questionable fiscal federalism. So far, over $3.6 billion has been recovered from Western countries that were a haven for Abacha’s grand theft proceeds. The first part of the stolen Continues on page 31

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Recovered Abacha loot keeps giving, but it’s a tip of illicit funds’ iceberg SEGUN ADAMS & OLUFIKAYO OWOEYE

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Coping with lockdown, Nigerians turn to baking … but hampered by soaring wheat prices CALEB OJEWALE

he restriction of movements across states of the federation aimed at curbing the spread of COVID-19 led many Nigerians into baking of bread and confectioneries, according to data from Google. However, the rising price of wheat, a major ingredient for baking, cast a pall on what was fast becoming a past-time. As the number of COVID-19 cases in Nigeria began to rise, the Federal Government enacted a two-week lockdown on Lagos, Abuja and Ogun State, which later extended to five weeks ending May 4. Other states of the federation also followed suit with varying degrees of restrictions. Continues on page 31

Inside

Orji Kalu still in prison as counsel says working to P. 30 secure release

Abdulahi Ganduje (2nd r), Kano state governor, with officials of Private Sector-led Coalition Against COVID-19 (CACOVID) and Aliko Dangote Foundation, after the governor took delivery of 66-bed isolation centre donated by CACOVID and Aliko Dangote Foundation, in Kano, yesterday.

Attacks on COVID-19 frontline health workers by patients inhuman, unacceptable – FG P. 30

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‘Federal allocation to Cross River is not enough to pay salaries’ … debunks N200,000 claims by retirees MIKE ABANG, Calabar

gainst the backdrop of unpaid gratuity to senior citizens of the state and retirees, especially between 2014, 2015, 2016, to date, Joseph Adie, Cross River State accountant general, weekend, said allocation from the Federation Account to the state was not enough to pay workers’ salaries. Adie told BusinessDay in an interview that the highest allocation, which comes to the state, was N3 billion, sometimes, N1.1 billion and N1 billion. “I am sure you will be surprise that even those states that have the highest allocation, you see that they owe pensions, they are not making effort to pay, but we have tried, we are paying. In fact, at a point we have been setting aside N200 million every month,” he said. On the alleged demand by some of his staff who ask for N200,000 before processing their papers for their gratuities, he said, “Well, I want to assure that in my office here, nobody have told me that there is demand to pensioners that they should pay anything not even a dime before they get paid. “It is a very grievous matter

to ask a retirees and pensioners to begin to pay monies for their gratuities or whatever; it is an act of wickedness. In a situation like this, I must confess to you that I am not aware of that type of demand from anywhere, and I will be the last person to be a partaker. “As we speak, we have cleared 2013, and we have paid 2014, and have paid up to February.” On why some persons from 2016 and 2017 have gotten their gratuities paid, he said, “Yes, that comes in with the express permission from the governor. You know some people have health issues, others have spinal cord problem. In cases like this, I get my authorities from the governor. There are two on the line now, if he approve and there are no funds, they are considered special cases.” Some group of retired permanent secretaries and some civil servants in the state who do not want their names mention in print for fear of sanction had alleged that some staff from the accountant general office demands N200,000 before they get their gratuities paid. They have also completed arrangement to drag the accountant general and the state government to National Industrial Court Calabar for refusing to pay them their entitlements.

COVID-19: Delta special agric entrepreneurs to fill food shortage gap ...as state empowers 2019/2020 beneficiaries with inputs, support packages Mercy Enoch, Asaba

pecial agricultural entrepreneurs being raised by Delta State government are working hard to fill food shortage gap envisaged to come as a result of lockdown occasioned by coronavirus (COVID-19) pandemic in the country. This is as the state vows not to relent in its commitment to empower them with inputs and support packages to enable them achieve the dream, which is in line with the vision of Governor Ifeanyi Okowa’s administration. Experts in agriculture had foreseen the lockdown creating huge gap in food production and supply in Nigeria and globally. But Sam Ndikanwu, coordinator, Youth Agricultural Entrepreneurship Programme (YAGEP) of Delta State Job Creation Programme, said, though the lockdown as a result of the COVID-19 pandemic had affected the planting season, which could lead to food shortage after the harvest season, the gap would be filled by the agricultural activities of the special entrepreneurs, otherwise known as YAGEPreneurs . He stated that the state’s YAGEP initiative, which has consistently trained and established thousands of Delta youth in agriculture since year 2015/2016, would not just bridge the gap in the shortfall in food supply in the state but even beyond. Ndikanwu spoke while addressing newsmen at the Delta State Agricultural Rural Development Agency in Ibusa (DARDA), the venue where beneficiaries in Crop Production

within Delta North Senatorial District received their farm input and support package, to boost food production in the state. The beneficiaries who are of the 2019/2020 cycle included those in piggery, poultry, fish production and crop production. BusinessDay gathers that while poultry (broilers) has 58 YAGEPreneurs in the cycle, 32 YAGEPreneurs are farmers of layer birds. Altogether, while the former is estimated to produce 113 metric tons of live birds, the latter will produce 4.1 million eggs. It is learnt that the state projected that with 71 YAGEPreneurs in fish production, 74 metric tons of table fish would be produced within a period of four to six months, even as the 24 YAGEPreneurs in piggery would produce 307 metric tons of pork. In the same vein, the 74 YAGEPreneurs in crop production was estimated to produce 588 metric tons of cassava in the cassava category while those in the maize category would produce 296 metric tons of grains. Ndikanwu disclosed that with the 259 youth farmers in the current cycle of the programme, the state government was poised to give greater attention to agriculture to ensure food security, job and wealth creation towards economic stability, especially with the global fall in price of oil due to COVID-19 pandemic. He said it was estimated that at the end of the production cycle of each farm enterprise, there would be abundant food supply in the state, enough to feed the state and to sell to other parts of the country. www.businessday.ng

Governor Hope Uzodimma of Imo State (3rd l), appreciating the management of the Federal Polytechnic Nekede on their ingenuous invention to assist in the fight against COVID-19 pandemic.

COVID-19: FG extends palliative to loan beneficiary auto assemblers through BoI MIKE OCHONMA

ollowing ravaging effect of coronavirus (COVID-19) pandemic on global economy that is gradually bringing many businesses to their knees, the Federal Government of Nigeria through the National Automotive Design and Development Council (NADDC) has rolled out a stimulus package for local automotive assemblers. Speaking with BusinessDay on telephone at the weekend, Aliyu Jelani, director-general of NADDC, said the council had secured approval from the Bank of Industry (BoI) reducing the interest rate on loans borrowed from it by local beneficiary automobile assemblers by 2 percent across board and the deferment of repayment of such loans for a period of three months. According to Jelani, the approval has been communicated to the secretariat of the Nigerian Automobile Manufacturers Association (NAMA), expressing hope that the incentives will go a

…reduces interest rate by 2%, defers loan repayment by 90 days long way in reducing the burden on stakeholders and allow for a smooth, unhindered and continuous growth of the Nigeria automotive sector. Responding to question on the modalities of the incentives that will be extended to the industry players and how the NADDC will be able to identify genuine local automotive and allied components assemblers, and what shape the stimulus package will take, the directorgeneral said, ‘’In line with the Federal Government directives, what we are primarily looking at doing are offering palliatives to those stakeholders that benefitted from the NADDC loans through the BoI. In a letter titled; Re-BoI Suggested Palliatives on NADDC Credit Lines in Compliance with FGN Directives, dated May 5, 2020, addressed to the executive director of NAMA and signed by Jelani, which read in part, “I write to inform

you that, the National Automotive Design and Development Council (NADDC) has approved a stream of palliatives in respect of loan facilities granted under the Council’s funds under your management in line with the Federal Government’s directive to ease the burden on the economy as enumerated. “Reduction of applicable interest rate by 2 percent for a period of one year, i.e. 12 months with effect from 1st April, 2020 to 31st March 2021, such that at the expiration of the 12 month period, the applicable interest rate on each facility shall revert to its initial approved rate as stated in each customer’s respective Loan Offer Letter. This is however subject to the full liquidation of all interest charges as at March 31st, 2020. “Deferment of principal repayment for three months only in first instance with effect from 1st April 2020 to 30th June

2020, with allowance to a further extension of between three to nine months based on customer specific request and justification. This is also subject to the receipt of a formal application requesting the restructuring and a supplemental bank guarantee (where applicable) from customer’s guaranteeing bank”. Confirming the receipt of the approval letter from the NADDC director-general, Remi Olaofe, executive director of NAMA, also informed our reporter that, a letter had also been forwarded to the Federal Ministry of Finance to allow those auto stakeholders whose bonafide licences have expired or about to expire in the wake of the dreaded coronavirus outbreak should be given an extended period to carry on with the clearance of their consignments from the ports until the economy bounces back, offices resume and the ban on restriction of movements lifted.

Nigeria is not switching on 5G anytime soon - NCC Jumoke Akiyode-Lawanson

igerian Communications Commission (NCC) has refuted claim that there will be switching on of 5G in Lagos in its entirety. The telecoms industry regulator says mischievous statements on social media and other sites claiming that the Nigerian telecoms industry was planning to switch on 5G in Lagos on Sunday 10, Monday 11, or Tuesday, May 12, 2020, should be disregarded as it is untrue. “The Commission has unequivocally stated that there is no deployment of 5G in Nigeria at the moment,” NCC states in a statement sent to BusinessDay. In November 2019, the regulator approved trial test for 5G for a period of three

months. That trial has now been concluded and installation decommissioned. Umar Garba Danbatta, executive vice chairman, NCC, says, “The trial among others was to study and observe any health or security challenges the 5G network might present. Relevant stakeholders including members of the security agencies were invited to participate during the trial.” In the press statement signed by Henry Nkemadu, director of public affairs, NCC, the commission says it will continue to maintain its policy of technology neutrality and will continue to encourage service providers to deploy the best technology that will meet the needs of the society in a secured and friendly manner. The NCC had provided clarifications of Frequently

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Asked Questions (FAQs) on 5G in view of the recent developments in which misleading materials with no proven evidence are being circulated to link CORONAVIRUS or COVID-19 with 5G technology, and therefore refutes the claim that there will be switching on of 5G in Lagos in its entirety. The Commission also provides clarifications on the laying of fibre optic cables within Lagos and other parts of the country to the effect that the laying of additional fibre optic cables is to strengthen the existing 3G and 4G infrastructure to provide robust and pervasive telecoms infrastructure to improve network performance. 5G is a fifth generation of mobile technology that is an improvement of today’s 4G technology with enhanced capabilities. 5G technology @Businessdayng

provides the platform for new and emerging technologies such as Internet of Things (IoT), Artificial Intelligence (AI) and Big Data to improve the way we live and work. ‘’NCC has not issued any licence for 5G in Nigeria and therefore the mobile network operators (MNOS) cannot switch on such technology. NCC is technology neutral as such we don’t license technology but assign spectrum to operators for deployment of any service when allocated by National Frequency Management Council (NFMC),” Danbatta says. ‘’As the telecoms regulator, we enjoin Nigerians to get accurate information from us rather than relying on information emanating on social media by some individuals out of ignorance to misinform our people,” Danbatta said.

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Driving Nigeria’s public transport system with modern technology system

Festus Okotie

he transport sector is the “gateway” to the economy of any nation and it is a great challenge why the sector and its infrastructures rocks bottom in terms of development in Nigeria. A world bank indicator which promotes trading across borders measured the efficiency of different ports globally and ranked Nigerian Ports at 183 out of 185 countries in 2017. Although different governments in the past made efforts through different interventions such as 2007 ports reforms led by Ngozi Okonjo-Iweala, a former minister of Finance and world bank managing director attempted to resolve some of the challenges, such as infrastructure shortcomings, policy and regulatory inconsistencies, overlapping functions and duplicated roles among the different MDA’S. There is very slow progress in the sector despite all the efforts made, when compared to the inherent potentials in the sector and the fact that Nigeria is the largest economy in Africa unlike most first world nations and mega cities globally who desires efficient public transportation systems driven with modern technology to accelerate the growth of the sector has added very minimal impact. Intelligent transport system (ITS) is one of the fundamental structures smart nations and cities are using to improve the living conditions of their citizens, accelerate business activities and also achieve sustainability. Examples of ITS benefits includes tracking high pedestrian areas, traffic patterns, railway stations, planning, scheduling bus times, enhance interoperability, create alerts of transport situations that enables swift

capacity to share information among the different platforms and transport modes. This structure also offers a comprehensive approach to risk management, putting emergency procedures and response capabilities in place that identifies dangers, including vandalism or violence, fare evasion, and medical emergencies. The Nigerian public transport system is in urgent need of modern infrastructures such as ITS to achieve greater results that can add both direct and indirect investments opportunities to the economy of the nation. Smart city transport technology helps nations and cities to function productively, while improving services for businesses and lives of the citizens. The technology has the ability to improve travel across traditional modes of transport such as cars, buses, trams, railways, maritime and air with immediate benefits for city dwellers and also helps enhance traffic safety such as dangerous weather conditions, heavy traffic and unsafe speeds which can result in accidents and loss of lives. ITS real-time weather monitoring systems also helps correlate information such as wind speed, visibility, road conditions, rainfall, providing traffic control and information on current driving conditions. It also limits infrastructure damages such as impacts of heavy vehicles which burden road networks, especially if they are overloaded. Modern technology such as weight-in-motion systems also helps measure the size, type and weight of vehicles as they travel and transmits the collected data to a central server. It helps in traffic control such as permitting traffic lights to react to changing traffic patterns, instead of working on a fixed schedule in traffic. Adaptive traffic light systems also use smart intersections that helps grant priority to certain vehicles such as public transit and emergency vehicles. Nigeria is the most populated nation in Africa with over 200 million people, the sixth world’s largest oil producer and largest oil producer in Africa with proven oil and gas reserves of 37 billion barrels and 192 trillion cubic feet, over 300 square kilometres of arable land and significant deposits of largely untapped

minerals, it is a national concern why these resources cannot be translated into development of the sector. Additionally, ITS helps parking management such as illegal parking in hazardous city streets because conventional parking enforcement systems are not very effective and are cost effective. Smart parking violations systems helps scan parked vehicles and transmit information to the parking meter to document illegal parked vehicles and generates traffic data, for example electronic traffic counters records the type and number of vehicles accessing a road or visiting a specific area of a city and also measures peak traffic times, journey length and other data. It is interesting to note that transport contribution to the nations GDP increased to $720.241 million in the third quarter of 2019 from $642.927 million in the second quarter of 2019 and contributed 2.49 percent to nominal GDP in Q1 2019, an increase from 1.85 percent recorded in the corresponding period of 2018 and higher than 2.05 percent recorded in the fourth quarter of 2018, a confirmation that the sector has a lot more value to contribute to our economy, if properly managed and developed. Australia, Canada, China, Germany, France, UK and Ireland are examples of nations that have benefitted from the development and upgrade of their public transport sector through the use of modern technology system in driving greater efficiency and strongly believe that Nigeria adopt the same strategy to develop the sector. A smart and efficient public transport system plays a very vital role in both the developed and developing economies because it serves to reduce reliance on private car-ownership by providing an affordable alternative mode of transport for commuters. The demand for public transport service indicates and measures the quality of the living conditions of that society and nation, it is therefore very important to understand the characteristics of the public transport demand of that society and to have a very good understanding of the nature of the public transport systems in order to plan and make demand forecasts which plays a fundamental role in monitoring the operations network and

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Smart city transport technology helps nations and cities to function productively, while improving services for businesses and lives of the citizens. The technology has the ability to improve travel across traditional modes of transport

policy formulation. ITS is very important to Nigeria’s transportation sector and requires trained personnel to drive its efficiency to greater height because the purpose of introducing it is to add value and at the same time reduce lead time across the sector, such as the regular traffic congestion in and around Apapa Port the hub of marine transport in Nigeria. Another example worth mentioning is the huge investments made by past governments of Lagos State the most developed state in Nigeria that accounts for over 60 percent of industrial and commercial activities of Nigeria. The 2019 global liveability index by economist intelligence unit recently released, ranked the state as one of the least cities to live in globally out of 140 major cities analysed and has consistently rocked the bottom for the third year in a row because of poor infrastructures, instability, health care, environment and cultural challenges. Its general rating stood at 38.5 percent, -20 percent on stability, 37.5 percent on healthcare, 53.5 percent on environment, 33.3 percent on education and 46.4 percent on infrastructure. Furthermore, intermodal transportation network system is the backbone of economic security and competitiveness of smart cities and nations, as well as ensuring structures are put in place to upgrade the quality of life of the citizens through facilitating the movement of people, goods, services which helps link communities and states to each other. It is also important to mention that the failures of past governments to hire experienced experts to help upgrade the sector especially in the areas of planning and implementation of policies and infrastructures are partly responsible for the poor level of the public transport sector, which is responsible for the low foreign direct and indirect investments opportunities in the sector.

Note: the rest of this article continues in the online edition of Business Day @ https://businessday.ng Okotie, a maritime transport specialist, writes via fokotie.bernardhall@gmail.com, Fokotie@ bernardhallgroup.com

COVID-19: The economic perspective of the pandemic in Nigeria

he outbreak of Coronavirus (COVID-19) has been rapid in recent times across Nigeria and it is becoming increasingly worrisome globally. The coronavirus (COVID-19) outbreak has already dampened the economic outlook of the country and there is a near economic recession outlook. This is largely due to the consequences of COVID-19 outbreak, declined crude oil price currently trading below $30 per barrel and the depressed state of the nation’s economy especially with debt service obligation. Supportably, the numbers of incidence of COVID-19 continue to escalate through community transmission, it has heightened uncertainty in our economic and social landscape. In economic terms COVID-19 outbreak is impacting negatively on government revenues, businesses, families and individuals across the world and more severely on a developing country like Nigeria. Where palliatives and stimulus packages can hardly go round to all the citizenries and businesses. The COVID-19 pandemic is life-threatening and a huge health risks however the socio-economic impact is real and devastating, with many workers likely to face looming job loss, job cuts, salary cuts, redundancy. and SMEs facing business closures. Couple with the bleak economic outlook, many Nigerians are more than likely will go further below poverty line because majority are in the informal business sector.

However, to cushion the effect of the pandemic impact, fiscal and economic stimulatory measures targeted at taxpayers to save their businesses from collapse was considered by Nigerian Government. This step is reactive though commendable but the real subject matter for the government and other economic policymakers, is to see that the virus outbreak is short-lived in Nigeria. The economic impact of the deadly virus is very high and perhaps government might need to consider more pragmatic palliatives such as social and fiscal policy palliatives, concessions on import trades because Nigeria is importdependent, duties and port charges waiver to reduce the value chain disruption and improve service delivery, more credit facilities and tax breaks- particularly cutting taxes to increase and improve disposable income needs to be considered. Most SMEs run their businesses on loan facilities and the current situation has impeded their capacity to service these loans effectively, so government intervention is required to forestall massive business shut down. Further to this, it is recommended that the guidelines and requirements to access the apex bank CBN announced palliative measures worth N3.5 trillion, should be relaxed to promote wider eligible participation. Those that truly and meaningfully require it might not be able to access it especially the micro businesses and SMEs, if the current requirement is not reviewed.

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Most importantly, the anti-corruption drive of the government needs to be stiffened. So that all social intervention and economic stimulus packages can be managed judicially. The Nigerian Stock Exchange (NSE) and Securities and Exchange Commission (SEC) in conjunction with CBN can design policies to encourage listed companies and the capital market as a whole to benefit adequately from the stimulus packages. The listing requirements can be relaxed by NSE to accommodate more qualified companies to list on the Nigerian Stock Exchange so that they can use the platform to access funding, which is just one of the benefits of listing. More so lower transaction and listing costs will directly attract more listings and deepen market participation at this trying time. Point of note is that, the co-operation and co-ordination between and among the various financial markets regulators (SEC, CBN, PenCom, NSE, DMO & NAICOM) needs to be strengthened to assure coherent policies to reduce the negative impact of COVID-19. In conclusion, one of the leading global rating agencies, Standard & Poor’s (S&P) downgraded Nigeria’s credit rating further into junk territory, with a B-rating, down from ‘B/B. This rating might affect future Foreign Direct Investments (FDI) into the country and expected foreign portfolio investments. Therefore, concerted efforts should be on policies to improve this rating and encourage impressive FDI into the

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Timi Olubiyi country needs to be considered at this time. The headline inflation or (Consumer Price Index) rose to 12.26 percent year-on-year in the month of March 2020, according to data from the National Bureau of Statistics (NBS), up from 12.20 percent in February 2020, the highest in two years. Food remains a major driver of inflation in Nigeria especially with the rise in the composite food index occasioned by increases in prices of edible commodities like bread, cereals, meat, fish, yam among others. Consequently, priority attention and adequate policy response by the CBN monetary policy committee is required to address and stem the growing inflationary trend. Dr. Olubiyi holds a Ph.D. in Entrepreneurship and Small Business Management. He is a prolific investment coach, Chartered Member of the Chartered Institute for Securities & Investment (CISI) and a financial literacy specialist. He can be reached on the twitter handle @drtimiolubiyi and via email: drtimiolubiyi@gmail.com.

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When crude oil and pandemic collide STRATEGY & POLICY

MA JOHNSON

he COVID-19 pandemic may not be fun for everyone. It has exposed the imperfections in our modern life in which wisdom of important philosophies is either inaccurate or accurate. As the pandemic moves fiercely across the world, there is demand, supply, market and information shocks being experienced globally, according to policy experts. Most petrodollar states are hit hard by what the International Monetary Fund (IMF) and other financial institutions warn will be “the worst downturn since the great depression of the 1930s”. For most petrodollar states, the future is bleak. The world is in recession, according to the IMF. The ricocheting effect of the pandemic presents an ominous sign for most countries that rely only on oil to provide a significant percentage of their export revenues. The devastation caused by the pandemic has sparked concern for how the most vulnerable will be impacted in Nigeria. If there was a moment to see the negative impact of the pandemic on the poor, it is now. The latest National Bureau of Statistics (NBS) report on Poverty and Inequality shows that more than 82.9 million Nigerians are poor by national standards. According to the NBS report, 40.1 percent of the total population was classified as poor. In other words, an average of 4 out of 10 Nigerians live on N137,430 per

year. By implication, the monthly income of an individual in this category is about N11,500 with an income per day of N38, the report reveals. The NBS report further disclosed that Sokoto, Taraba, Jigawa, Ebonyi, Zamfara, Yobe and Adamawa top the poorest states in the country while Lagos, Delta, Osun, Ogun, Oyo, Edo and Anambra states had the least in terms of poverty level. With the pandemic, challenges faced by poor families can deepen social inequality in our society. Although, President Buhari made a promise in 2019 that his cabinet will take 10 million Nigerians out of poverty in the next 10 years. But the pandemic has taken the wind out of his sails. Early in the year 2020, the price of oil has been volatile in the international market. This has been a source of concern to those in authority in Nigeria and other oilproducing nations that rely solely on the commodity to fund their economies. Nigeria started the year with a projection to sell crude oil for $57/barrel. This was revised downward to $30/barrel and it is currently $20/barrel. These adjustments in oil price has compelled the FG to revise its 2020 budget twice within three months. The latest revision of the 2020 budget has a benchmark of $20/barrel. The crash in oil price has brought more troubles to Nigeria. As receipts from oil decline, earnings are projected by the federal government to decline by a staggering 90 percent in 2020. About 80 million barrels of Nigeria’s oil are floating on board ships in international waters without buyers, according to reports. It has been predicted that Africa’s largest economy would also shrink by at least 8 percent in the year 2020 as a result of a contraction inflicted by the pandemic. The FG has therefore, abolished the cash-consuming petrol subsidy to save the nation from bankruptcy. Part of the trouble is the devaluation of the Naira. Since 1980, the Naira has been devalued more than ten times. This

makes one wonder what Nigeria is producing and exporting to the international market that necessitates devaluation of her currency. But the CBN says it has only adjusted the value of the Naira. If Nigeria was an export-oriented economy, devaluation of the Naira would have been appropriate to make the country’s goods cheaper in the international market. But when an import-dependent economy devalues its currency, it gives cause for concern. The concern is borne out of the fact that we are considering the most populous country in Africa- Nigeria. For the past 64 years Nigeria has been exploring crude oil and selling same in the international environment. Regrettably, what is available in our sovereign wealth fund is less than $1 billion, according to reports. I think that Nigeria can do better. But Nigeria is never prepared for any shock arising from volatility of crude oil price. If the country was prepared for all manner of shocks, we would not be borrowing funds and at the same time begging for debt forgiveness. Nigeria with a population of almost 200 million is one of the countries in Africa with abundant mineral resources. Going by the abundance of resources, Nigeria could be regarded as a “land of opportunities” harbouring millions of unemployed citizens. With the pandemic, there was a report credited to the Minister of Labour and Employment, Chris Ngige that Nigeria’s unemployment rate is to reach 33.5 percent by 2020. (Premium Times of April 13, 2020). It is very unfortunate that millions of our youths with abundance of entrepreneurial attributes are wasting away as crude oil collides with pandemic. These are young individuals who, giving the right environment are prepared to work hard for economic gains. They are ready and willing to take risks provided there is work for them to do. Some of them have displayed the capacity to endure

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It is very unfortunate that millions of our youths with abundance of entrepreneurial attributes are wasting away as crude oil collides with pandemic. These are young individuals who, giving the right environment are prepared to work hard for economic gains

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

Reducing corruption: Is the private sector doing enough?

orruption is one of the biggest governance challenges, but it is often widely and erroneously perceived as a public sector problem. Most corruption conversations are on the public sector context, and corporate anti-corruption measures and strategies are often designed towards mitigating public sector corruption. This perception has endured over the years despite evidence that private sector actors are essential participants in many corruption acts, and there are multiple forms, including those which are driven by the private sector. In a recent study of 40 grand corruption scandals in Nigeria, it was found that over 80 percent of the acts were transactive and quid-pro-quo kind of exchange involving multinational firms, or their local agents and public officials. Candidly, the public sector is the most fertile soil for corruption. This is perhaps because a private business organisation cannot tolerate corruption within its system for long without suffering life-ending damages. Moreover, only the state can legally create legislation and regulations which public officials can “prey” upon. However, the private sector and public sector are organically linked, and the overall perception of corruption in a country is the reflection of corruption behaviour of both sectors. A well-known rationalisation is that corruption is functionally useful to a business. There are even theoretical postulations that back this perspective. They hold that the private sector is a mere victim of the state’s dysfunctionality. This perspective cannot stand rigorous empirical scrutiny. Moreover, it is dangerous as it only serves as a tool to rationalise and sustain the status quo. Besides, the evidence is clear that

corruption is socially inefficient. Transactive business-related corruption has a long history, but the legal system lags behind its prevalence. Until recently, it was not a crime for businesses to engage in corruption. In the United States of America (USA), for instance, it was not unlawful for businesses to pay bribes until the enactment of the Foreign Corrupt Practices Act (FCPA) in 1977. In many European countries, the same persisted until 1997. This is still the case in some countries, although these bad corporate behaviours are sometimes captured under corporate governance codes. In the Nigerian experience, corrupt expenses are hidden under various creative accounting terms. High profile cases often cloud the broader realities of the exact mechanism of private sector corruption with media emphasis on the political/public culprit rather than its private sector enabler. Corporate organisations are quick to throw any individual caught under the bus and dismiss the action as a bad apple’s problem. Well-structured firms often set up a corruption compliance program. Many have formal corruption policies and personnel responsible for them. The document is usually very high on gifts, staff misdemeanour, and whistleblowing. However, implementations are mostly performative and tokenistic, mostly in adherence to regulation or checking the box to fit a profile. Years of implementing these policies have changed nothing in the overall ethical climate. This is abnormal as their overall positive impact should be evident by now. Anti-corruption as currently designed seems to be losing momentum. There have been few success stories disproportionate to the resources deployed. There is more proswww.businessday.ng

ecution of yahoo cases than those that are systemically important. A recent paper from the Anti-Corruption Evidence Consortium (ACE) posits that the corruption gatekeeper has been more effective as a debt collection agent for commercial banks, high net-worth individuals and even government. As against the current approach, a consensus is emerging in corruption discourse on the fact that corruption is a collective action problem. In other words, corruption happens and get perpetuated because it is the expected behaviour in all social interaction. Most people will agree that corruption is wrong and they will all gain if nobody is corrupt, but it is, however, one’s loss if others are corrupt and one is not. It is partly, for this reason, that anti-corruption ‘fight’ that is solely legalistic and police-like is proving to be ineffectual. Without solving the underlining collective action issues, regulatory anti-corruption approach irrespective of the number of anticorruption agencies will achieve little. The private sector has a role to play in designing a sector-specific collective action programme. Sub-sectors within the private sector often shared characteristics, group identity and norms. These characteristics could enable it to come up with industry-specific collective action that could easily be monitored, and violations quickly detected. The extractive sector currently has the Extractive Industries Transparency Initiative (EITI) that aims to make the sector more transparent and accountable to the people. However, it is still public sector-focused and less private sector-focused. Business actors operating in a sector know the sector’s corruption vulnerabilities, and they could design collective action around these vulnerabilities.

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while they are committed to taking up new challenges coupled with acquiring new methods of doing things. But they are disappointed and stressed up daily because there is no job. All the positive attributes of most of our jobless youths have not yielded gains at the macro- economic level in the country, according to an economist. Some economists have predicted that there is possibility that at least for three to four years, there is going to be no revenue flowing to the government from oil. If this prediction was true, what will be the fate of Nigerians? What will be the value of the Naira? Your guess is as good as mine. The question many analysts have asked over the years is: “Why can’t we develop our agriculture, manufacturing and service sectors of the economy such that accruable revenue from these sectors can account for about 95 percent of the country’s foreign exchange earnings”? It takes time to develop these sectors of the economy. Both the government and private sector need to come together to make diversification of the economy work. It is the responsibility of the government at state and federal levels to create a favourable business environment to enable the private sector invest. Truth be told, we need to cut cost of governance through waste reduction in the public sector without compromising productivity. While available funds are to be spent prudently and efficiently. Will the implementation of the Oronsaye Report reduce the cost of governance? Probably not! Accountability and transparency must be encouraged in governance. We should remember that it takes a generation of committed leaders to build a nation. Our leaders must convert hope into action as soon as possible. Thank you!

Olusegun D. Sotola The above idea is hinged on several studies that have shown that there are sectoral differences in private sector corruption. A firm’s characteristics and sector are important explanatory factors in the nature of their involvement. Sectors like construction, natural resources and services sectors are reported to be prone to corruption that happens in the interface of private and public sectors. Private-to-private corruption is, however, more prevalent in procurement and supplies. Given this, firms have different abilities to resist or avoid corruption due to different bargaining or refusal power and corruption vulnerabilities. This initiative could impact positively on reducing the depth of overall corruption. This is because it will be sector sensitive and gives a better opportunity to address sector nuances than a wider, broad-based strategy. Because sub-sectors are smaller in size and actors probably know each other formally and informally, they should achieve quicker in-group cohesiveness. This type of initiative could be led by business associations, NGOs or a specially created unit.

Note: the rest of this article continues in the online edition of Business Day @https:// businessday.ng This article is written by Olusegun D. Sotola for the Christopher Kolade Centre for Research in Leadership and Ethics (CKCRLE) at Lagos Business School (LBS). Olusegun is a volunteer with the Centre and the opinions expressed in this article are his. CKCRLE’s vision is creating and sharing knowledge that improves the way managers lead and live in Africa and the World. You can contact CKCRLE at crle@lbs.edu.ng.

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BUSINESS DAY

Tuesday 12 May 2020

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Digital financial inclusion in Africa (1) Rafiq Raji

inancial inclusion, access to financial services or the process of ensuring the ease of access and usage of financial services by all, is being brought about faster and quicker in Africa through digital financial services (DFS). Digital financial inclusion varies by region and country on the continent, however, with East Africa, especially Kenya, in the lead. Other regions on the continent are playing catch-up. In West Africa, Nigeria recently approved guidelines for payment service banks for the provision of mobile money-type services, albeit they would not be able to provide loans. In East Africa, Kenya specifically, where digital mobile lending has already become advanced, there are issues with predatory lending practices. According to the World Bank, “financial inclusion means that individuals and businesses have access to useful and affordable financial products and services that meet their needs – transactions, payments, savings, credit and insurance – delivered in a responsible and sustainable way.” In this regard, the World Bank is championing the Universal Financial Access by 2020 (UFA2020) initiative, which aims for all adults – a third of which do not have a basic transaction account – to have “access to a transaction account or an electronic instrument to store money, send payments and receive deposits as a basic building block to manage their financial lives” by 2020. As they address identified challenges to financial inclusion, such as access, cost and complexity, it is believed mobile financial services (MFS), that is, the provision and usage of financial services via mobile phones, which are now ubiquitous, relatively cheap and easy to use, would bring about greater

financial inclusion. However, as much of the academic literature is focused on payments & remittances and early stages of the MFS value chain, like readiness, rather than savings & loans and later value chain stages of availability, uptake and impacts, the jury is still out on that conclusion. For instance, despite anecdotal evidence of the positive effects of mobile financial services on financial inclusion in Africa, in Kenya, say, its adoption has been found to be motivated by the same factors as traditional banking. In other words, those who use MFS tend to already have some relationship with a formal financial institution. Thus, poor people, who do not already have a bank account, may not find MFS differential for the same reason of low income. Little wonder, many MFS initiatives in several developing countries have performed below expectations. In the article, I take a critical look at the key regional economies of Nigeria and Kenya, the former where a new policy on payments was recently enacted and the latter where there are matters arising in digital credit extension. In this regard, I rely on the Claessens & Rojas-Suarez (2020) “Decision Tree for Digital Financial Inclusion Policymaking” (or “decision tree”) framework to assess the supply and demand factors of digital financial services in each country. An assessment of the market structure, infrastructure and returns allows insights into the supply dynamics of a particular type of DFS (payments, store of value or credit) for a specific country. Similarly, how much consumers see the benefits of DFS, the level of trust they have in the providers, and their level of income enable an assessment of what underpins demand for DFS for the same country. In the end, a better view of the binding constraints (if any) on either side provides clarity on whether current policies are good fits for the issues weighing on greater financial inclusion in the subject country or whether new measures need to be implemented to tackle the identified binding constraints. Firms are also better able to assess DFS oppor-

tunities in the countries of interest. If already invested, they are also able to get a better view of binding constraints they may have missed or overlooked previously. In a nutshell, I use the decision tree framework to identify binding constraints on financial inclusion in the two countries of interest, Nigeria and Kenya. For Nigeria, I assess developments up to the point that led to the licensing of payment service banks (PSBs), and thus figure out whether they would in fact overcome these constraints. For Kenya, I use the framework to similarly assess the authori-

ties’ plans to curb the predatory practices of digital lenders. Edited version of article was first published by Nanyang Business School’s NTU-SBF Centre for African Studies. References available via link viz. https://nbs.ntu.edu.sg/Research/ResearchCentres/CAS/Publications/Documents/NTUSBF%20CAS%20ACI%20Vol.%202020-21.pdf “Dr Raji is chief economist at Macroafricaintel. He was previously an Africa Economist at Standard Chartered Bank, London, UK. (Twitter: @DrRafiqRaji)”

On the shape of Nigeria’s post-COVID-19 future

he diversification of the Nigerian economy has already taken place without we realising it because oil which we all talk about actually contributes about 7.32 percent to GDP. In 2018, the agricultural sector contributed 21.2 percent to overall economic activity, other industrial concerns outside oil contribute 18.5 percent and services are 52 percent. The problem remains both exports, and government revenue. Oil accounts for more than 80 percent of all the government’s revenue and nearly 98 percent of all the export earnings. It is also not much different in terms of who Nigeria employs. Industry, which includes the oil sector, accounts for just 11.55 percent of all the people working in the formal sector in the country. Agriculture accounts for 36.38 percent, while services, which includes trade, our second largest employer of labour, accounts for 52.07 percent. This is the best time to be intentional about diversifying government revenues. The arrival of the International Monetary Fund’s loan to the federal government does not come without its own strings, one of which is the cutting down of the already bloated civil service in an era where the government already finds it hard to pay its workers. This runs into some of the recommendations of the Oronsaye Report. Unemployment, which had a rate of about 23.1 percent the last time there was a survey, has

surely gone up in the two years since. Nigeria has also been rated as the poverty capital of the world with an estimated 87 million people living on less than $2 a day. These figures are sure to rise as the government downsizes, and many political appointees get thrown out of redundant jobs, well, except if you’re Cross Riverian and your governor is Ben Ayade. There is a lot of social unrest that can accrue as a result of this as the One Million Boys menace in Lagos and Ogun states showed. The authorities must consciously channel quick and practical investments in driver sectors such agriculture (not the farming end, but the value-add end), manufacturing, and trade, which are expected to create more jobs, generate badly needed revenue and increase the country’s GDP. The non-oil sector needs to be prioritised, and the growth of the financial services sector is a good place to start. We have seen the influx of fintech companies who have seized the initiative to thrive and create stiff competition for the banks. These need to be encouraged. Nigeria needs to create easy credit access for small businesses, create real opportunities for medium-sized businesses to expand, modernise the agriculture sector and look into rejuvenating the textiles industry. Tourism is known to fetch much revenue for countries; hence, the Nigerian government must ensure it has a coherent strategy, a de-

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cent environment to encourage the industry’s growth and allow businesses to operate independently without much restriction through rigid policies. It is time the government reduced its involvement in economic production to give room for the free flow of ideas to drive the economy. As the pandemic continues to spread many people are adjusting to what it means to put their lives on hold. While many in the workforce have pivoted to remote arrangements, Nigeria needs to learn from this and ensure technology is encouraged in every sector. The budding tech ecosystem in Yaba is a goldmine that needs to be tapped into for maximum impact. Added to this is the necessary regulatory support that must be provided to network infrastructure providers As oil depletes, we need to start thinking about clean, renewable energy from natural gas. The results from COVID-19 lockdowns have clearly illustrated how much human and industrial activities affect our planet. For the first time in 30 years, communities in Punjab, India, could see the Himalayas from over 100 miles away and China’s carbon emission fell by 25 percent, all due to reduced pollution. Hence, while there are concerns that low oil prices will make fossil fuels more competitive compared to renewable energy; in the long-term, the oil and gas industry is sure to be significantly affected by a change in consumer behaviour and government

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Cheta Nwanze

regulation that will lead to increased demand for sustainability. There is an opportunity for renewables to become a gamechanger for Nigeria, an opportunity which comes with the possibility of being an African and world leader in driving innovation in this industry. All of the aforementioned will not happen if we do not take advantage of present adverse conditions. Over the course of the last sixty years, we have had many crises that have presented golden opportunities for Africa’s largest economy to pivot to a more sustainable and economically rewarding path for its people. As we stand on the cusp of our diamond anniversary, it is imperative that we do not waste this chance to rewrite our history. Nwanze is Lead Partner and Head of Research at SBM Intelligence

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Tuesday 12 May 2020

BUSINESS DAY

EDITORIAL Publisher/Editor-in-chief

Frank Aigbogun

Okonjo-Iweala: Nigerian icon serving Africa on critical boards

editor Patrick Atuanya

Nigeria must learn to keep and utilise its assets

DEPUTY EDITORS John Osadolor, Abuja Tayo Fagbule NEWS EDITOR Chuks Oluigbo MANAGING DIRECTOR Dr. Ogho Okiti EXECUTIVE DIRECTOR, OPERATIONS Fabian Akagha EXECUTIVE DIRECTOR, STRATEGY, INNOVATION & PARTNERSHIPS Oghenevwoke Ighure ADVERT MANAGER Ijeoma Ude FINANCE MANAGER Emeka Ifeanyi MANAGER, CONFERENCES & EVENTS Obiora Onyeaso BUSINESS DEVELOPMENT MANAGER (South East, South South) Patrick Ijegbai COPY SALES MANAGER Florence Kadiri DIGITAL SALES MANAGER Linda Ochugbua GM, BUSINESS DEVELOPMENT (North)

Bashir Ibrahim Hassan

GM, BUSINESS DEVELOPMENT (South) Ignatius Chukwu

our critical appointments by global bodies and countries in two months speak to the acclaim and clout of Nigeria’s former Finance Minister Ngozi Okonjo-Iweala. While the World recognises and appreciates her expertise, mum is the word in her home, Nigeria. Instead, misguided persons throw darts at this serial achiever over non-issues. True leaders stand out in a crisis. The New York Times states that while leadership may be hard to define, it is easy to identify in a demanding situation. In Africa, the World has recognised the great leadership attributes and skills of Nigeria’s Ngozi Okonjo-Iweala, thus appreciating her with more responsibilities to serve humanity. The World Health Organisation named Ngozi Okonjo-Iweala a Special Envoy for the newly inaugurated Access to COVID-19 Tools (ACT) Accelerator on 25 April 2020. She would serve alongside British business executive, Andrew Witty, to mobilise international commitment to the initiative. On 10 April, the Managing Director of the International Monetary Fund (IMF), Kristalina Georgieva,

named Ngozi Okonjo-Iweala (NOI) as a member of the External Advisory Group of the IMF. The group of prominent individuals from around the World would serve as the IMF chief’s special advisers to provide insights to enhance the Fund’s ability to serve its membership. Before then, on 7 March 2020, President Cyril Ramaphosa of South Africa appointed NOI a member of the country’s Economic Advisory Council, which comprises indigenous and international economic experts. The Council advises the president and government on the development and implementation of financial policies toward advancing inclusive growth. Okonjo-Iweala is also one of the four Special Envoys the African Union (AU) appointed on 12 April 2020 to mobilise international support for its efforts toward addressing the coronavirus pandemic. If Okonjo-Iweala is without honour in her native Nigeria, as frequent trenchant criticisms of her at home suggest, she is undoubtedly highly celebrated abroad. And with these appointments coupled with her leadership traits and professionalism, we clearly state that Okonjo-Iweala is a plus to Africa and the rest of the World but a loss to Nigeria.

The service of personalities like Okonjo Iweala to other countries and foreign organisations and institutions but Nigeria illustrates our failure to recognise and appreciate the works of her technocrats in shaping the economy. Even those the government has appointed cried out to get a listening ear. Nigeria shunned the counsel of the Presidential Economic Advisory Committee (EAC) headed by a renowned economist and professor, Doyin Salami until the onset of the COVID-19 pandemic forced a change. Rising numbers of skilled professionals from our country are currently serving various countries of the World, particularly the advanced economies. Nigeria loses the services of these experts at a time when it needs their expertise. A Nigerian Babafemi Taiwo, chief of infectious diseases at Northwestern Medicine, USA leads the team working on Remdesivir, a drug that shortened the time to recovery for coronavirus by 31 percent — 11 days on average versus 15 days for those just given usual care. Our loss of human capital is counterproductive and certainly works against our declarations about people and their significance in national development. Nigeria’s Human Capital Index, which measures how best a

country mobilises the economic and professional potential of its citizens, depicts this confusion. In 2018, Nigeria ranked 152 out of 157 countries, placing her among the seven worst countries according to the World Bank’s Human Capital Index. Amid the current COVID-19 pandemic, Okonjo-Iweala has risen to the moment, demonstrating resolve, courage, empathy, respect for science and basic decency and thereby dulling the impact of the virus on Africans. She spearheaded a global campaign to mobilise assistance for Africa to mitigate the crises. She led efforts to request a two-year standstill on all external-debt repayments, both interest and principal, of the IMF and World Bank through the G20 nations. According to Okonjo Iweala, “A global response to COVID-19 that doesn’t fully support developing countries is no response at all.” The nation’s planners must review our Human Capital management framework urgently to ensure optimal utilisation of all our assets. These times call for strategic actions and not ones beclouded by base considerations. Nigeria must learn to keep and utilise its “assets” because losing them to the outside world is at the nation’s peril.

HEAD, HUMAN RESOURCES Adeola Obisesan

EDITORIAL ADVISORY BOARD Imo Itsueli Mohammed Hayatudeen Afolabi Oladele Vincent Maduka Opeyemi Agbaje Amina Oyagbola Bolanle Onagoruwa Fola Laoye Chuka Mordi Mezuo Nwuneli Charles Anudu Tunji Adegbesan Eyo Ekpo Wiebe Boer Paul Arinze Boye Olusanya Ayo Gbeleyi Haruna Jalo-Waziri Clement Isong

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Tuesday 12 May 2020

BUSINESS DAY

COMPANIES & MARKETS

COMPANY NEWS ANALYSIS INSIGHT

MARKETS

Emerging Markets Stabilizing on US Fed’s Historic Easing, says IIF SEGUN ADAMS

nprecedented Fed easing, which first lifted US stock and credit markets, is now also making its way into EM, helping to stabilizing EMs according to the IIF. “Exchange rates have stabilized, net issuance of bonds abroad is at record strength and – most important – our high frequency tracking of non-resident flows has shifted in a positive direction,” said the Washington-based Institution. In March, EMs witnessed a “sudden stop” with massive non-resident portfolio outflows surpassing anything seen previously, including during the global financial crisis in 2008/9. It estimated Debt outflows at $31.0bn, the secondlargest monthly outflow on record, the largest having occurred in October 2008. On the equity side, IIF said the negative trend which it observed in March deepened, with outflows from China equities amounting to

$12.3bn and flows to the remaining EM equity universe reaching -$40.1bn, the highest since it began publishing its trackers. But the violence in March may indeed have a silver lining, IIF says in a recently published report. The outflows in March

touted a “five-sigma” event now means that a lot of negativity, perhaps too much, may be priced and means that the hurdle for further weakness is high. “The March “sudden stop” is now in the rearview mirror and EM is stabilizing,” it said, crediting the immen-

of flows paints a picture of overall stabilization, with flows returning to modest, positive territory in Q2 2020 with the exodus of capital from emerging markets therefore looking to be firmly in the rearview mirror. “We think this sets the stage for stabilization, because the hurdle for further EM weakness is high,” IIF said. In April, Emerging Markets (EM) securities attracted around $17.1bn, the IIF said, in its monthly report which tracks non-resident portfolio flows, said the recovery is mainly supported by debt flows and China equity flows. During April, the cascading nature of the pandemic left some emerging markets depressed, while others stabilized. Debt flows reached $15.1bn but investors remained risk-off towards equities while outflows from EMs excluding China reached $6.3bn even though China saw a net inflow of $8.2bn. Offshore investors were also strong on Asia with $7.3bn inflows in the month and Latin America with $3bn.

AGRICULTURE

Nigerian Fintech Startup, Truesaver, gives out First Tranche of Palliatives to low-income earners n line with its corporate strategy of giving back to Nigerians, TrueSaver, a fintech startup has rolled out its first tranche of palliatives to low-income earners in order to cushion the adverse effect of the lockdown brought about by the deadly coronavirus. TrueSaver has issued upfront zero-interest loans to 50 Nigerians which will increase their purchasing power and enabled them afford necessities like food, toiletries, facemasks and other essential commodities. The loan which will be repaid over a 10-month period and is aimed at empowering the beneficiaries whose livelihoods have been adversely affected by the lockdown. Also, TrueSaver participated in the distribution of face masks, hand sanitizers, hand gloves and other essential protective equipment at a subsidized price. The Founder and CEO of TrueSaver, Victor Osiki, said that the palliatives were rolled

issuance of bonds, where the gross and net issuance picture is shaping up to be a record-breaker this quarter, if we extrapolate strong April issuance going forward,” it said. IIF said putting this issuance picture together with its high-frequency tracking

L-R: Mercy Akpama, chairman, Cross River State Covid-19 Food Bank; Mathew Anuga, HR business partner, Niger Mills Division (FMN); Asu Okang, commissioner for information, Cross Rivers State, and Ntufam Okon Owuna, commissioner for agriculture, Cross Rivers State, at the official handover of food products donated by Flour Mills of Nigeria Plc (FMN) to the Cross Rivers State Government, as part of FMN’s commitment to alleviate the impact of the Coronavirus (COVID-19) pandemic across Nigeria in Calabar.

TECHNOLOGY

DIPO OLADEHINDE

sity of Fed easing, which first lifted US equity and credit markets, is now also filtering into emerging markets, where IIF’s daily tracking of non-resident flows is back in positive territory and almost flat excluding China. “One thing not captured in these flows is offshore

out as the company’s efforts geared towards curtailing the spread of the deadly virus. “The second tranche is scheduled to be rolled out at the wake of the phased reopening of the economy (post-lockdown) by providing upfront interest-free loans to individuals and small businesses that need liquidity in the first few weeks of resumption,” Osiki said. One of the beneficiaries of the TrueSaver palliative, Oghonemu Darlington, while expressing his joy on the company’s Instagram page @truesavernet, said that the loan was useful at this particular time while another beneficiary, Tobi Adebanjo, when contacted, had this to say: “thanks to TrueSaver. The palliative I got from them came at a time I really needed it. Not only are they a TrueSaver, but they are also a lifesaver.” TrueSaver is a fintech startup that provides zero-interest loans to individuals and small businesses by leveraging group rotational savings. Truesaver. net is a digital savings platform (also known traditionally as

“ajo” in Yoruba, “esusu” in Ibo and “adashe” in Hausa) that allows Savers access interestfree loans for meeting future financial obligations like house rent, school fees, travel expenses, wedding ceremonies, and other expenses. In Africa, the coronavirus is beginning to advance through major cities and into towns. Compared to European and US cities, the confirmed cases in Sub-Saharan cities has remained relatively low. However, experts from the World Health Organisation estimate that 10 million Africans could catch the virus in the next six months. Nigeria has at least 3,000 confirmed cases of coronavirus patients, according to the Nigeria Centre for Disease Control (NCDC). In a bid to curtail the spread of this virus, the Nigerian Government imposed a lockdown order in some states. The resultant effect of the lockdown has affected low-income earners who depend on daily income for their daily bread.

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AFEX outlines measures to contain COVID-19 risk to commodities market SEGUN ADAMS

FEX, a commodities exchange innovating Nigeria’s agriculture, has recommended key steps the country can take to mitigate the risks to the value-chain in the commodities market posed by the coronavirus pandemic. In its recently published report on “COVID-19 and Commodities”, the Exchange said the disease outbreak which has seen economic activities slow significantly heightens food insecurity risk and could disrupt farm incomes. “As witnessed, prices of cashew have declined by almost 50% in source location across Sub Saharan Africa (SSA),” said AFEX. “The declines in farm incomes reinforce the food security fears stated earlier as farmers have lower purchasing power to procure other commodities of need not cultivated by these farmers.” AFEX said the range of

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options for governments at all levels in combating the negative effects of the COVID-19 goes beyond the palliative measures currently being undertaken, and the Exchange proposed additional measures “which reflects the challenges that could emanate subsequently,” it said. First, AFEX recommended Structured Production Support Programs. With the production season about to commence with farmers already cultivating their farmlands, AFEX noted that a key concern is the availability of farm inputs and labour necessary to operate during the production season. “We believe that strong adherence to the exemption granted to farmers and agro-allied companies will help facilitate the distribution of inputs and movement of labour,” said AFEX. “It is noteworthy to indicate that government and other developmental organizations could support local producers with input loans @Businessdayng

by leveraging on agro-allied companies with last-mile contact with the farmers.” AFEX also recommended Trade Financing and Inventory Support for processing companies and other exporting agents as banking and non-banking financial institutions become more cautious in lending. This means that the processing companies and other exporting agents in the ecosystem will witness a significant decline in the trade and inventory credit available to conduct business effectively, the Exchange said. “Two key recommendations will be the provision of credit lines to companies and FMCG processors operating in the country and the execution of export credit guarantee structures,” AFEX said. The Exchange said these solutions will provide the dual benefit of sustaining the operations of the companies and ensuring that they continue to procure the commodities needed as a nation.

Tuesday 12 May 2020

BUSINESS DAY

COMPANIES&MARKETS APPOINTMENT

CRC Credit Bureau appoints Olubunmi Lawson as independent director STEPHEN ONYEKWELU

he Central Bank of Nigeria has approved CRC Credit Bureau’s appointment of Olubunmi Lawson to its board of directors as an independent, non-executive director in a drive to strengthen corporate governance. Lawson brings to the board of CRC, over 30 years of experience in senior executive positions spanning microfinance banking, consultancy and social enterprise sectors of the economy. She is the pioneer managing director and chief executive officer of Edfin Mi-

crofinance Bank. Lawson was previously appointed by the Central Bank of Nigeria to be interim CEO/MD of Fortis Microfinance Bank between March-August of 2018. From 2006-2017, was the pioneer managing director/CEO of Accion Microfinance Bank Limited. She was executive director of FATE Foundation between 2001 – 2005. A Fellow of the Institute of Chartered Accountants of Nigeria (ICAN) Lawson holds a Master’s degree in Business Administration IESE International Graduate School of Management. “We are very excited to welcome Olubunmi to the Board and we do not doubt that she

will put her vast wealth of experience at the disposal of the Board as she joins other highly experienced Directors to take the company on its next phase of growth,” said Gregory Jobome, chairman of Board of Directors of CRC Credit Bureau. The credit bureau company has been rendering credit score services to Nigerians for at least ten years. CRC Credit Bureau is the largest Credit Bureau in Nigeria and provides a nationwide repository on credit profiles of corporate entities as well as consumers, thus improving the ability of credit providers and borrowers to make informed lending and borrowing decisions.

FINANCIAL SERVICES

Afrinvest drives investor portfolio diversification with dollar fund HOPE MOSES-ASHIKE

frinvest Asset Management Limited, a subsidiary of Afrinvest (West Africa) Limited has launched the Afrinvest Dollar Fund; a flexible solution for investors looking to add Dollar-denominated securities to their portfolio. The initial minimum investment amount is $1,000. The Afrinvest Dollar Fund is an open-ended mutual fund approved by the Securities and Exchange Commission (SEC) and it provides an opportunity for individual and institutional investors to diversify their portfolio and hedge against

currency fluctuations. The $2m Fund is offering 20,000 units at $100 per unit. Speaking of the objective of the Fund, Ola Belgore, managing director, Afrinvest Asset Management Limited said, “The Afrinvest Dollar Fund was created to help investors achieve income generation, capital preservation and portfolio diversification in the short to medium term. It is designed to deliver significantly higher returns than the average domiciliary account and dividend will be paid twice a year. The Afrinvest Dollar Fund offers investors access to Dollar-denominated securities floated by Nigerian Sovereigns, Supranational entities and

Corporates as may be determined by the Fund Manager. The Fund is flexible as there is free entry and exit for investors subject to the prevailing Fund price. On the impact of the Fund, Belgore said, “members of the general public who have future Dollar obligations like health tourism, education fees and vacations can use the Fund to save towards their goals. The low initial investment amount means more investors can diversify their portfolios and benefit from our years of experience. The launch of this Fund illustrates quite well the mantra of Afrinvest which is simplifying investments, creating wealth”.

AVIATION

Ibom Air expands fleet with another new Bombardier CRJ 900 aircraft IFEOMA OKEKE

bom Air has taken delivery of the airline’s fourth Bombardier CRJ 900 aircraft in Lagos. The aircraft arrived Lagos from Calgary, Canada at 10:48 pm local time, Tuesday evening (05 May, 2020). In a statement, the airline’s management say, “We are very pleased to receive the first of our two recently purchased Bombardier CRJ 900 aircraft, in line with our fleet expansion strategy. With this addition, our fleet grows to four aircraft. According to the statement, this particular airc ra f t, w i t h re g i s t rat i o n number 5N-BXP, made its maiden commercial flight in May 2014 (just 6 years ago), adding that Ibom Air con-

tinues to operate the lowest average fleet age amongst Nigeria’s airlines. “This fleet strategy is in line with our vision to be a world-class African regional airline.” They explained the key features of the aircraft to the airline saying, “A key benefit of Ibom Air’s very modern fleet of Bombardier CRJ 900 aircraft is that they all come fitted with High Efficiency Particulate Air (HEPA) filters. HEPA filters are high-intensity filters that do not just filter dust, but effectively capture greater than 99% of the airborne microbes in the filtered air, including microscopic particles such as bacteria and viruses. Cabin air in HEPA equipped aircraft generally pass through the filters 20www.businessday.ng

30 times per hour, removing contaminants and greatly enhancing the quality of air in the cabin.” The Ibom Air Management thanked the Minister of Aviation, the Federal Ministry of Aviation, the NCAA, NAMA, FAAN and the Akwa Ibom State Government, for making it possible for us to ferry in this aircraft during this period. Keeping it in Canada waiting for the Covid-19 pandemic to pass, would incur huge and unnecessary hard currency costs for us. “We also thank our numerous customers for their continued loyalty and assure them that Ibom Air is eagerly preparing to resume our superior services to them, once conditions allow for operations again.” https://www.facebook.com/businessdayng

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Tuesday 12 May, 2020

BUSINESS DAY

Media business Paga enters into partnership with SystemSpecs to deepen Nigeria’s digital payment system Daniel Obi

aga, frontiers of mobile money and Payments Company and SystemSpecs, Nigeria’s fintech company and providers of Remita, have entered into partnership to extend the frontiers of electronic payments in Nigeria in what is considered an industry-pioneering move. In a recent announcement by the organisations, the first phase of the collaboration would empower Paga customers to easily initiate and complete payment to all Remita billers and merchants right from Paga’s web channel –

paga.com or agent network, through agents nationwide would also be able to process end-to-end payments to all Remita customers from Paga’s agent platform. Considered an industryfirst, the initiative is applauded by industry enthusiasts and it

is expected to chart the path for deeper collaboration within the fintech ecosystem, making electronic payments more attractive and less stressful for customers. Commenting on the collaboration, Jay Alabraba, Cofounder and Director of Busi-

At period of Covid-19, Nigerians tag MultiChoice VAT implementation ill-timed Daniel Obi

he implementation of VAT rate from 5% to 7.5% by MultiChoice, operators of DStv next month has been described by some Nigerians as ill-timed when the implications of Covid-19 have upended businesses and individuals’ planning. The pay TV company has recently announced that the company will adjust its DStv and GOtv prices from June 1, 2020 to accommodate the implementation of the new VAT rate of 7.5% from 5%. “While this business decision by MultiChoice is normal in a country that has increased its VAT rate, it is coming at a wrong time when individuals and businesses are struggling with pressures from implications of Covid-19”, says Henry Omafodezi, CEO of 7Gong, a PR firm based in Lagos. He said from a PR perspective, the decision is coming at a wrong time in the period of Covid-19. Another subscriber who does not want her name mentioned said the DStv VAT increase this time of Covid-19 will put more pressures on subscribers who are managing to sustain themselves. John Ajayi, a marketing communication practitioner

argues that DStv, as a consumer centric company should have waited on the implementation of the VAT to allow the economic pressures from Covid-19 to ease. He suggested that since the company has delayed the implementation since February, it could have waited a little bit and capitalise on the gesture to re-enforce its bond with subscribers. “Further delay in the implementation of the VAT on its services would indicate that the pay TV company is sympathising with Nigerians especially this time Covid-19 is ravaging the world”. In his reaction, Akonte Ekine, CEO of Absolute PR said MultiChoice is doing the normal thing by adjusting to the VAT increase. He said if subscribers upset about the company’s decision especially this time, they should ask government to return to 5% VAT. The implementation of VAT has increased the payment of premium subscribers

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on DStv to N16,200 against N15,800. This is addition of N400. Compact Plus subscribers will pay N10,925 against N10,650. Similarly, Compact bouquet price has been adjusted from N6,800 to N6,975. Subscribers on Confam bouquet will now pay N4,615 against N4,500 while Yanga subscribers will pay N2,565 against N2,500. Subscribers on Max on GOtv will pay N3,280 from N3,200 while Jolli and Jinja subscribers will pay N2,460 and N16,640 respectively. MultiChoice explained that the increase in fees was in line with the legislation of the Federal Government which increased VAT in January 2020, with implementation effective 1 February 2020. “In order to provide some relief for customers, MultiChoice Nigeria has absorbed the cost of increase in VAT for the past four months, keeping its products and services at the old 5% VAT, however this is no longer possible and the mandated 7.5% VAT will be applied accordingly”. The firm said it acknowledges that Nigerians are living under increased economic pressure and want to make every Naira they spend count. “We remain committed to providing our customers with value for their Naira while giving them access to the best available content”.

ness Development, Paga in a statement said: “In our commitment to make payments easier for all Nigerians and businesses, we are pleased to collaborate with SystemSpecs. Our goal is to always provide an improved experience to our customers everywhere,

by leveraging digital technology. This collaboration would further help us meet the needs of individuals who seek to make various bill payments, including those in emerging markets.” “At SystemSpecs, we are committed to driving financial inclusion and providing convenience to customers everywhere, especially through strategic partnerships with key industry stakeholders that would facilitate easier access to a wide range of financial services and solutions from anywhere and at any time,” said Ezinne Obikile, SystemSpecs’ Executive Director, Infrastructure and Payment Gateway, according to the statement.

COVID 19: 9mobile ramps up support for health and educational sectors

n a bid to provide unhindered access to educational and health facilities to its valued customers during the COVID-19 pandemic, Nigeria’s telecoms service provider, 9mobile has provided free access to health and educational website for its customers. Access to these websites ensures that 9mobile customers and Nigerians remain connected and have more access to basic essential services which they require. Speaking on this contribution, Executive Director, Regulatory and Corporate Affairs at 9mobile, Abdulrahman Ado explained in a statement that health and education are two out of the three pillars of 9mobile’s Corporate Social Responsibility (CSR) programs.

MRA calls on government to ensure release of kidnapped radio presenter

edia Rights Agenda (MRA) has condemned recent abduction of Ms Chinenye Iwuoha, a presenter with the Pacesetter FM station of the Federal Radio Corporation of Nigeria (FRCN) in Umuahia, Abia State, by gunmen and called on the Federal Government and its law enforcement agencies to take urgent action to ensure the safety of the journalist and

secure her release. Ms. Iwuoha was reportedly kidnapped by gunmen at about 7pm on May 4 on her way home from work. She was reported to have been traveling in a vehicle with the station’s general manager and the other employees when they were attacked by the gunmen who then abducted Ms Iwuoha. The gunmen are reported to have later made a ransom demand to the station for the payment of N20 million

for the release of the presenter. In a statement in Lagos, Ayode Longe, MRA’s Director of Programmes, reminded the Federal Government that although it had a duty to ensure the security of all citizens, where media practitioners are concerned, it has a heightened responsibility to protect them as they are performing an essential function in the interest of the society as mandated by the Constitution.

Covid-19: Hayat Kimya Nigeria supports Lagos, Ogun with hygienic products

o support the initiatives targeted at arresting further spread of the coronavirus disease, Hayat Kimya Nigeria, maker of Molfix and Bebem and several hygiene brands, has donated truckloads of hygienic products, including MOLPED Sanitary Pad and FAMILIA Toilet Paper to Lagos and Ogun State governments. The donation is targeted at boosting the states’ efforts and commitment to treating the existing cases, and flattening the curve of the novel virus spread. According to the company in a statement, it is in its interest, as a responsible corporate citizen of Nigeria, to encourage efforts targeted at arresting further spread of the virus and attending to the devastation it has already caused. Commenting on the donation, Managing Director, Hayat Kimya Nigeria, Doruk Emiroglu in the statement said: “We commend the Lagos and Ogun State governments efforts, especially the proac-

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L-R: Fred Oladeinde, Lagos State Commissioner for Transportation; Rasak Sulaimon, quality assurance manager, Hayat Kimya Nigeria, and Venessa Ebifemi, corporate affairs and communication, Hayat Kimya Nigeria, during the donation of hygienic products to the Lagos State government, recently.

tive measures and leadership that the states have provided for the country at large, especially the management style, information dissemination and recovery recorded so far in the fight against Covid-19. “We also recognise that the state resources are limited to fight the spread of the dreaded virus, isolate, treat the infected people and provide relief to majority of Nigerian citizens @Businessdayng

who make their living by going out on a daily basis, but are now compelled to stay at home.” Emiroglu said: “Towards this end, we are donating two trucks loaded with hygienic products, MOLPED Sanitary Pad and FAMILIA Toilet Paper as our modest support to Lagos and Ogun States governments in support of their laudable efforts.

Tuesday 12 May, 2020

BUSINESS DAY

Branding Polo Group backs government, journalists, police over Covid-19 fight Daniel Obi

igeria’s private sector has been supportive in the on-going battle against the Covid-19 pandemic which is currently ravaging the world with numbers of confirmed cases and deaths increasing astronomically daily in Nigeria and globally. Operators in the Nigeria’s private sector are fighting from different fronts such as donation of cash, medical materials, foods and setting up of isolation centers. Last week, Nigeria’s foremost luxury and lifestyle company, Polo Limited, joined forces with other critical stakeholders in the fight to contain further spread of the deadly virus with donations and visits to different groups in Lagos. For Polo, an indigenous firm which has inspired Nigeria’s upward mobile class of individuals to stand out in every occasion with luxury goods, especially watches, this time, charted a new path from norm of donations to checkmate Covid-19. In its thoughtful intervention, the over 30-year-old company took a laudable decision to present relief materials and food items directly to the less privileged in the society in different parts of Lagos State. The delegation equally visited health correspondents in Lagos to salute their courage in the present war. The company’s delegation led by its Managing Director, John Obayuwana and Executive Director, Jennifer Obayuwana visited the old, displaced and disabled in Ebute-Metta, Makoko, Muri-Okunola, Ilaje, Mushin, Idi-araba, Iju-Ajuwon, Agege as well as families of the men of some Nigerian Police. The direct palliative to the less privileged and downtrodden in the society is commendable as the lockdown aimed to slow the spread of Covid-19 has hit not only Nigeria’s economy and businesses but the underprivileged who are now begging for food on the streets. John Obayunwana underscored the visits when he said that “These are tough times, and everyone needs to be their brother’s keeper at such difficult times”. He added, ‘We wish we could visit every health center, orphanage, frontline hero, but that will be spreading ourselves thin. However, the much we can do we have done and will continue to play our part in alleviating the pain of some in society during these uncertain times”. Speaking further, Jenifer Obayuwana, Executive Director, Polo Group said, ‘We believe playing our part at such critical time in human history is not just the necessary thing to do, but the right thing that must be done. It is no more business as usual, Covid 19 has exposed a new normal that cannot afford us to look the other way. Teamwork is one of our core values at Polo Limited and this is what has played out today’. The visit to health correspondents attached to the Governor’s office at the Bagauda Kaltho Press Centre Alausa, Ikeja, Lagos to encourage and salute their courage in providing health news, this time especially as it concerns coronavirus was equally noteworthy by such an organization. The health cor-

L-R: John Obayuwana, MD, Polo Luxury Group with Jennifer Obayuwana, executive director Polo Luxury Group handing over relief materials to the Gboyega Akosile, Chief Press Secretary to the State Governor.

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respondents have been in the frontlines reporting from the theatre of war. “Your work has done a great deal to stem the tide of fake news which was becoming an ‘infodemic’ and had the capacity to worsen an already bad situation’, Obayunwana said. “By going to the isolation centers, by gathering for news briefings almost on a daily basis, by going to different communities in different parts of the state to report news about the pandemic as it breaks, you have put yourselves in harm’s way and such is very commendable”. The Chief Press Secretary to the State Governor, Gboyega Akosile welcoming the delega-

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tion appreciated the visit and gesture in glowing terms adding that it takes a really thoughtful company to think of donating items to journalists working in a war situation. He commented: “it has been an unusual period for the press corps since the outbreak of COVID-19 in Lagos and they have played a very significant role during this period. It is that dedication that has made a company like yours think of them in this period because journalists are not often thought of by most donors”, Akosile said. While much of the global attention is focused on the

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human toll of the pandemic which has claimed over 270,000 deaths from 3.85 million cases world-wide with Nigeria accounting for 107 deaths from 3,5 cases, (as at Friday 8, 2020), the economic implication is equally huge. While Federal and state governments accentuate various donations by players in the private sector as helpful to the execution of the war against Covid-19, the strategy of organizations like Polo Group to directly touch the lives of the poor in the society who are facing economic hardships and health journalists is worthy of emulation by corporate organizations and philanthropists.

Tuesday 12 May 2020

BUSINESS DAY

BDTECH

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E-mail: jumoke.akiyode@businessdayonline.com

How remote monitoring, cloud technology will increase business growth and productivity Jumoke Akiyode Lawanson

ith the sudden change in ways businesses operate, as a result of the unexpected Coronavirus pandemic, adapting and leveraging remote technology solutions is the only option available for IT managers and business decision markers to proactively manage their organisation’s IT infrastructure and keep the business moving with very little or no glitch. With cloud-based computing and other technologies, experts say that organisations will be able to significantly reduce downtime by taking care of issues before they become problems, as they will be able to improve performance by assessing how to improve hardware based on the experience of similar systems at thousands of other sites. Just like mobile applications have made it easier and more convenient for people to shop, access their bank accounts, stream videos and even study, the use of technology can also help transform businesses and governments, by using remote maintenance. Speaking on the need for remote maintenance and cloud technology to transform data centre businesses, Ayo Adegboye, managing director, BCX Nigeria, said; “what’s most exciting is the potential of artificial intelligence comparing data sets from tens or hundreds of thousands of other data centers and then sharing results on how to optimize hardware and software performance with the IT team.” “All of these tasks can be done remotely, and the time that you save can be put to other tasks, such as anticipating the needs of your internal customers, researching new trends in the technology and data center space, and looking at how to implement these new solutions,” he

said. At a time when all businesses have had to adapt in one way or the other, to working from home and remote learning, experts say it is necessary for IT professionals to also shift online in order to operate effectively. The banks, telecommunication companies, and e-commerce retailers have been able to operate and function effectively during lockdown due to their use of technology. They’ve embraced online channels such as mobile applications, which have been built on cloud technologies and software defined data centers.

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As we already know, technology has always been an enabler; it has never been easier to manage IT systems, both hardware and software, remotely, even through an application on your smart phone. Recent statistics show that Nigeria currently has about seven functional Data Centers in and yet, not many of them depend on a specific PC, with a VPN login, in order to access a data center monitoring system. According to Adegboye, the current global realities should be a wake-up call to all of us on the need to modernise our approach to how we maintain, protect and optimise the systems that we are increasingly

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relying on to be able to work and live. ICT experts say that there are a lot of reasons why remote monitoring can dramatically support any organisation’s productivity and growth. Adegboye listed examples such as; Embedded Systems – There are more sensors, notifications, and alarms available on data center systems today than there was a decade ago. With this much data, we’re able to run our data centers much more efficiently, provided we have the right monitoring systems and technology in place. Big Data – There’s been lots of

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talk about Big Data, and this innovation, when combined with the increase in hardware-based sensors, will allow us to completely change how we approach the idea of maintenance. Big Data will allow us to shift from being reactive to predictive, helping IT managers to understand what is about to fail before it happens. This will significantly reduce the amount of unplanned downtime data center managers see today. Mobile Computing – We’re all mobile right now, and we are accessing our emails and the internet via our laptops and smart phones. Those tasked with maintaining the operations of a data center shouldn’t need to be tied to a desktop. Mobile computing helps us all do our jobs on the go, from different locations, without being disconnected at any time. Health and Safety – It goes without saying that remote monitoring enables IT managers to manage, maintain, and improve the operation of their data centers as safely as possible. Given what we’re dealing with today, the ability to access information about the data center and understand what’s happening from any location is the best way to ensure that there’s minimal risk to people working on-site. According to the MD od BCX, all of these tasks can be done remotely, and the time that you save can be put to other tasks, such as anticipating the needs of your internal customers, researching new trends in the technology and data center space, and looking at how to implement these new solutions. BCX Nigeria in conjunction with their partner Schneider Electric are taking the lead to drive this and will host a webinar where participants will have the opportunity to understand more about these trends by joining the webinar at 12pm On Wednesday May 13th , 2020.

Tuesday 12 May 2020

BUSINESS DAY

BDTECH

E-mail: jumoke.akiyode@businessdayonline.com

COVID-19: HP, African Union partner for digital learning in 55 African countries Jumoke Akiyode-Lawanson

t a recent session of the specialized technical committee on education, science and technology held virtually, HP and the African Union Commission (AUC) agreed to join efforts to expand digital learning opportunities for all youth in 55 AU Member States. Both entities have agreed to collaborate on various initiatives including exchange of information and expertise, as well as promotion of online platforms to support digital learning. Africa has the youngest population in the world with more than 400 million young people aged between 15 to 35 years. Almost all countries across the continent have introduced some form of nation-wide school and university closures to contain the Covid-19 virus. This means that there are a very large number of children and young people that are not receiving any form of schooling. At this meeting, Elisabeth Moreno, managing director and vice president of HP Africa presented HP’s Learning Initiative for Entrepreneurship (HP LIFE) and

BeOnline programmes, two unique online learning platforms that can be utilised by ministers to support schools and educators in their distance learning endeavours. The two online learning platforms will contribute towards H.E. Moussa Faki Mahammat’s, the chairperson of the AU, ‘1 million by 2021’ initiative. The 1 million by 2021 initiative seeks to provide opportunities to young Africans from the 55

member states in the areas of education, employment, engagement and entrepreneurship (the 4Es). It is against this backdrop that the AU and HP are prioritising digital learning opportunities for African youth. “Education is a fundamental human right that should be available regardless of a person’s age, class, race, gender or location,” said Moreno. “To that end, HP has

pledged to enable better learning outcomes for 100 million people by 2025, as well as adding 1 million users to HP LIFE between 2016-25 – a commitment that aligns with the AU’s Continental Education Strategy for Africa (CESA), which aims to change Africa’s education and training systems to meet the knowledge, competencies, skills, innovation and creativity required to nurture core values and promote

L-R: Musa Makoji; deputy director, general services, Fredrick Kolo; regional manager, Jumia service, Juwaretu Olumoko; director general service Adebimpe Adebiyi; director, hospital services and Ahmad Baba; technical adviser to the permanent secretary, during the donation of 100,000 CE certified face masks by Jumia Nigeria to the Federal Ministry of Health in Abuja to support the government in fighting the spread of COVID-19 pandemic.

sustainable development on a continental level,” he said. Today, technology can support new styles of learning. PCs and tools designed for education can offer students flexibility of time, place, and pace of learning, whether in or out of the classroom, or in a blend of environments. HP and AU joint efforts have the potential to uplift access of education and opportunities for career work and economic growth. The collaboration aims to promote innovations that hold the best potential to make lifelong learning a reality. “The partnership with HP will accelerate our education response to Covid-19 especially and have longterm benefits. I implore AU Member States to make the most of these opportunities as this partnership means young people can access educational opportunities at no cost for the rest of this academic year. This partnership speaks directly to H.E Moussa Faki Mahamat’s 1 million by 2021 initiative by providing educational opportunities which will assist in positioning our youth to venture into the entrepreneurial sector,” Sarah Any-

ang Agbor, commissioner of the AUC department of human resources, science and technology, said. BeOnline is a programme that was developed by HP in partnership with Classera, the leader in learning management systems and Mirai, a learning innovations group focusing on learning strategy and digital pedagogy, to assist the endeavours of the education community. In line with the most recent regional governments’ directives for distance learning, the programme aims to support schools and universities in establishing a fully-fledged virtual learning environment, by providing expertise and tools at no cost. The HP Foundation has created its global programme HP LIFE to provide business and IT skills training free of charge to people all over the world. The online community and more than 30 self-paced courses are designed to help users develop business and IT skills in their own time and at their own pace. The courses are modular, interactive, and full of information and practical exercises that enable users to grow their business skills.

IBM, Red Hat launch new edge computing solutions for the 5G era

BM has recently announced new services and solutions backed by a broad ecosystem of partners to help enterprises and telecommunications companies speed their transition to edge computing in the 5G era. This effort combines IBM’s experience and expertise in multicloud environments with Red Hat’s industry-leading open source technology, which became part of IBM last year in one of the biggest tech acquisitions of all time. For organizations worldwide, the rollout of wireless 5G telecommunications networks, which bring blazing speed and extremely low latency—and minimal transmission delays— to mobile data, is designed to accelerate the utility of edge computing. According to the company, with new edge services, IBM Business Partners and open multicloud solutions from IBM, enterprises will be able to tap into the potential of 5G to support crucial uses like emergency response, robotic surgery or connected-vehicle safety features that benefit from the few milliseconds la-

tency saved by not having to send workloads to a centralized cloud. “In today’s uncertain environment, our clients are looking to differentiate themselves by creating more innovative, responsive user experiences that are adaptive and continuously available – from the data center all the way out to the edge,” Denis Kennelly, general manager, IBM Hybrid Cloud said. “IBM is helping clients unlock the full potential of edge computing and 5G with hybrid multicloud offerings that bring together Red Hat OpenShift and our industry expertise to address enterprise needs in a way no other company can,” he said. IBM’s new offerings run on Red Hat OpenShift, the leading enterprise Kubernetes platform that runs everywhere -- from the data center to multiple public clouds to the edge. They enable enterprises to overcome the complexity of managing workloads across a massive volume of devices from different vendors and provide telcos the agility they www.businessday.ng

need to quickly deliver edgeenabled services to customers. IBM explained that clients across industries can now fully realize the benefits of edge computing, including running AI and analytics at the edge to achieve insights closer to where the work is done. New solutions include: • IBM Edge Application Manager – an autonomous management solution designed to enable AI, analytics and IoT enterprise workloads to be deployed and remotely managed, delivering real-time analysis and insight at scale. The solution enables the management of up to 10,000 edge nodes simultaneously by a single administrator. • IBM Telco Network Cloud Manager – a new solution offered by IBM that runs on Red Hat OpenShift, to deliver intelligent automation capabilities to orchestrate virtual and container network functions in minutes. Service providers will have the ability to manage workloads on both Red Hat OpenShift and Red Hat OpenStack Platform, which will be critical as telcos increasingly look for ways to

modernize their networks for greater agility and efficiency, and to provide new services today and as 5G adoption expands. • A portfolio of edge-enabled applications and services that all offer features to give clients the flexibility to deploy AI and cognitive applications and services at scale. • New dedicated IBM Services teams for edge computing and telco network cloud that draw on IBM’s deep expertise to help clients deliver 5G and edge-enabled solutions across all industries. IBM’s open ecosystems of equipment manufacturers, networking and IT providers and software providers include Cisco, Dell Technologies, Juniper, Intel, NVIDIA, Samsung, Packet & Equinix, Hazelcast, Sysdig, Turbonomic, Portworx, Humio, Indra Minsait, Eurotech, Arrow Electronics, ADLINK, Acromove, Geniatech, SmartCone, CloudHedge, Altiostar, Metaswitch, F5 Networks and ADVA as members. Businesses that have already been working with IBM to deploy edge computing

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technologies include Vodafone Business, which is working with IBM to help improve worker safety and productivity in remote locations such as oil rigs, factories, warehouses, ports and mines. Combining Vodafone Mobile Private Networks, IBM Edge Application Manager and Red Hat OpenShift, the new solution uses sensors, AI, as well as predictive and video analytics to understand and respond to incidents in milliseconds, keeping workers safe. “At Vodafone Business, our primary focus is keeping our customers and their employees connected and safe, whether remote working or working from remote locations. Vodafone Mobile Private Networks, IBM edge computing and AI technologies enable companies to oversee operations even in the most remote locations, where rapid action can mean the difference between a near miss and a disaster,” Vinod Kumar, CEO, Vodafone Business said. Samsung is collaborating with IBM and telecommunications provider M1 to develop @Businessdayng

and test Industry 4.0 solutions using 5G and edge computing for Singapore’s Infocomm Media Development Authority (IMDA). “5G and edge will enable massive innovation for manufacturers, with 5G networks enabling phones and devices at the edge to deliver new AIdriven improvements to quality, productivity and safety. But the ability to achieve the scale and effectively manage the connectivity of the vast number of devices and sensors in a manufacturing environment is complex,” KC Choi, EVP of Global B2B Sales, Samsung Electronics said. “To address this challenge and enable Industry 4.0 innovation at scale, we’re collaborating to put IBM’s edge computing and AI solutions and Samsung end-to-end 5G network platform and mobile devices to work. Together, we’ll deliver new 5G enabled solutions leveraging sound and video insights as well as augmented reality to uncover anomalies that can occur throughout the manufacturing process,” he said.

Tuesday 12 May, 2020

BUSINESS DAY

EDUCATION Weekly insight on current and future trends in education

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COVID-19: FG e-learning Education rooms upload in 17 states, FCT uploaded. The states are: Abia, Anambra, Benue, Edo, Delta, Oyo, Ekiti, Kwara, Nassarawa, Niger, Imo, Enugu, Ogun, Ondo, Kogi, Kaduna and Lagos. In its remark, Federal Ministry of Education said: “This webpage has been developed by the Task Team responsible for coordinated Education Response to COVID-19 pandemic, at providing information, guidance and resources to the 36 states and FCT for the continuing education and individualised learning of pupils at home. “Empowered by federal ministry of education and Universal Basic Education

MARK MAYAH

s the nation’s three tiers of educational system remains closed due to the ravaging COVID-19 pandemic, the Federal Ministry of Education has uploaded on its website more electronic learning resources and education chat rooms of different states for their pupils to utilise. Businessday check on the website of the ministry showed that only 17 out of 36 states and the Federal Capital Territory(FCT),Abuja had their e-learning websites

Adamu Adamu, education minister

COVID-19: Ibadan Technical Varsity to produce Ventilator, says VC MARK MAYAH

he Vice Chancellor, Ibadan Technical University (ITU), Ibadan, Oyo State, Ayobami Salami( Prof ), has said the institution is on the verge of producing ventilator to support Oyo state government in its fight against novel Coronavirus in the state. Salami disclosed this while presenting renewable face masks produced by the institution as support, to the government officials at the Ministry of Health, Secre-

tariat, Ibadan. He hinted that the university came up with the production and donation of face masks to the state government due to its scarcity across the globe and economic challenge attached to the disposable ones. The VC affirmed that the ongoing pandemic in the country deserves relevant contributions from stakeholders to contain the spread of the disease. Said he: “The role of the university is to be relevant to the society. We decided to look at the areas we can

Ayobami Salami www.businessday.ng

be of help in supporting the efforts of the government in this pandemic. The issue has become a major challenge not only in Oyo state, nationally but globally. How many Nigerians can afford to spend two to three hundred naira per day on a face mask? “We decided to look at how we can resolve this challenge and challenged our Technical, Vocational and Entrepreneurship Training to begin to produce the useable and washable face mask. We are already doing this and we want to start by making some donations to the government and make available to the public to place order. “As at the moment, our researchers are at the complete stage of producing ventilator for the university,” Salami assured. Oyo state Commissioner for Health, Basiru Bello (Dr), while receiving the face masks on behalf of the state government, commended the management team of the university for the support given to the Emergency Operation Centre of CONVID-19. Bello thanked the institution for the donation and promised to make use of the item as expected.

Commission. It is intended that the webpage will provide guidance on learning resources and monitoring children at home in the period of the crisis. “The task team has worked out a learn-at-home programme for ensuring the continuity of learning for all students through this trying period”, its added. Also on the ministry’s website, there is another section for States e-learning radio and television programmes where about 16 States are represented. Confirming on the elearning websites of Ondo state indicates that children could join a virtual classroom, a senior secondary

school classroom and Junior secondary school classroom, a set of past questions for practice, chatrooms and other components. However, Businessday reliably gathered that s o m e o f t h e s t at e s a re concern with how best to eradicate the novel pandemic than the e-learning programme. It would be recalled that Education Minister Adamu Adamu in April, had noted that the federal government was going to commence basic primary and secondary school classes on the national media to enable pupils to learn during the COVID-19 pandemic forced break.

COVID-19: African Union, HP prioritise digital learning for Nigerian youths KELECHI EWUZIE

etermined to ensure that Nigerian youths in particular and that of other 54 African countries become digitally prepared during and after the Coronavirus pandemics, African Union Commission (AUC) and HP has agreed to expand digital learning opportunities for all youth in 55 AU Member States. The aim of the collaboration is to change Africa’s education and training systems to meet the knowledge, competencies, skills, innovation and creativity required to nurture core values and promote sustainable development on a continental level. Africa has the youngest population in the world with more than 400 million young people aged between 15 to 35 years. Almost all countries across the continent have introduced some form of nationwide school and university closures to contain the Covid-19 virus. Elisabeth Moreno, managing director and vice president, HP Africa while speaking at the Extra-Ordinary Session of the Specialised Technical Committee on Education, Science and Technology held virtually said both entities agreed to collaborate on various initiatives including exchange of information and expertise, as well as promotion of online platforms to support digital learning.

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“Education is a fundamental human right that should be available regardless of a person’s age, class, race, gender or location,” said Moreno. “To that end, HP has pledged to enable better learning outcomes for 100 million people by 2025, as well as adding 1 million users to HP LIFE between 2016-2025. At this meeting, presented HP’s Learning Initiative for Entrepreneurship (HP LIFE) and BeOnline programmes, two unique online learning platforms that can be utilised by ministers to support schools and educators in their distance learning endeavours. The two online learning platforms will contribute towards Moussa Faki Mahammat’s, the Chairperson of the AU, 1 Million by 2021 initiative. The 1 Million by 2021 initiative seeks to provide opportunities to young Africans from the 55 member states in the areas of Education, Employment, Engagement and Entrepreneurship (the 4Es). Sarah Anyang Agbor, commissioner of the AUC Department of Human Resources, Science and Technology, said the partnership with HP will accelerate Africa’s education response to Covid-19 especially and have long-term benefits. Agbor enjoin AU Member States to make the most of these opportunities as this partnership means young people can access educational opportunities at no cost for the rest of this academic year. BeOnline is a programme @Businessdayng

H.E. Moussa Faki Mahamat, chairman African Union

that was developed by HP in partnership with Classera, the leader in Learning Management Systems and Mirai, a learning innovations group focusing on learning strategy and digital pedagogy, to assist the endeavours of the education community. In line with the most recent regional governments’ directives for distance learning, the programme aims to support schools and universities in establishing a fully-fledged virtual learning environment, by providing expertise and tools at no cost. Today, technology can support new styles of learning. PCs and tools designed for education can offer students flexibility of time, place, and pace of learning, whether in or out of the classroom, or in a blend of environments. HP and AU joint efforts have the potential to uplift access of education and opportunities for career work and economic growth. The collaboration aims to promote innovations that hold the best potential to make lifelong learning a reality.

Tuesday 12 May 2020

BUSINESS DAY

Investments

ENERGY INTELLIGENCE

Market Insight Companies Commodity Tracker Policy

OIL

GAS

PETROCHEMICALS

POWER

FG’s gas agenda during COVID-19 ISAAC ANYAOGU

imipre Sylva, minister of state for petroleum resources earlier this year, announced that 2020 is the year of gas. After decades of dependence on crude oil, prices are trending south and diversification seems inevitable. And then Covid-19 happened. The Covid-19 pandemic has hit Nigeria’s economy harder than any event as government has shuttered businesses and restricted freedom of movement. Demand for gas has fallen and revenue to gas producers has declined due to poor returns from power distribution companies. According to the minister, his key priorities between 2019 and 2023 includes curbing petroleum products cross border leakages, completion of the Nigerian gas flare commercialisation programme, increasing crude oil production to 3million barrels per day and reducing the current cost of crude oil production by at least 5 percent. Others are passage of the PIB bill, promotion of inland basin exploration activities, promotion of deep offshore activities, collaboration with private sector to aggressively increase domestic refining capacity and supporting the president’s plan to raise millions of Nigerians out of poverty through job creation. “The industry is super riskaverse but need to prepare for the changing world that lies ahead and map out a strate-

gic direction to thrive postCOVID-19 crisis,” says M.M Ibrahim, chairman, National Gas Expansion Programme (NGEP) in the Ministry of Petroleum Resources) at the Nigerian Gas Association (2020) Virtual Business Forum, represented by Justice Derefaka, Technical Adviser, to the minister of state and Program Manager, Nigerian Gas Flare Commercialization Programme (NGFCP). The Nigerian Government in June 2017 approved a gas policy which aims to move the economy from oil to gas, extend gas penetration in the domestic market in order to facilitate growth of all sectors, end gas flaring and address environmental issues and provide an enabling environment for increased private sector participation in the gas sector. To drive this policy, the Federal Ministry of Petroleum Resources conceived the National Gas Expansion Programme to

serve as a catalyst for adding value to the vast natural gas reserves Nigeria is endowed with. The goal is to assist with identification of existing policy, legal and regulatory frameworks & commercial instruments that are hindering the development of the local gas sector, reforming and implementing the promotion of a market structure in a manner that will ensure the utilization of gas infrastructure, assets and facilities on a common carrier and co-sharing basis. It would also formulate strategies that will promote cost effective distribution of the various gas streams by marine, rail and road for achieving a most affordable, available, acceptable and accessible gas to Nigerians and engage all state and nonstate actors in sensitization programmes on all aspects of safety in relation to gas utilization in the country. Currently, Nigeria is under using her vast gas resources. For

example, Australia has proven reserves of 128 TCf of gas but its current LNG output is 88mpta, Malaysia has 97 TCF of proven gas reserves and produces around 29mtpa of LNG while Nigeria with 201TCF of gas has an LNG output of 22mtpa. Africa currently holds a share of around 6 percent of global marketed gas production, that share is projected to rise to more than 10 percent by 2050 if the current short-term shocks and natural gas price environment will not have any considerable impact on the long-term projections. “Nigeria’s gas proven reserve (200 tcf ) indicates an inherent possibility of exploiting gas reserves for at least the next 100 years with the potential for a further 600tcf in unproven reserves,” says Ibrahim. To unlock the opportunities, more public and private sector collaboration is now required with interest groups including research and development, business and the public sector to explore for more ideas. Audrey Joe-Ezigbo, president of the NGA said that the organisation was available to provide support in her remarks. Ibrahim proposes a new taxation regime that facilitates investments, cost reduction programmes and deferring any gas projects or other discretionary spending and reinforce efforts to build domestic gas supply chains and capabilities. “Local Content should seek to create jobs & diversify Nigeria’s economy. COVID-19 has dem-

onstrated the fragility of global supply chains and the imperative to produce all that we need to operate within our borders. He also said that Nigeria could use natural gas and diversify, and invest in chemicals and industrial clusters that provide a means to integrate along the value chain. Gas Industry players could also localize materials supply chains and supporting capabilities, through on-demand manufacturing, R&D and specialized technical education & training. “As an Oil-dependent nation, we must do more than merely hope for the past to return. Instead, post COVID-19, we must seize the opportunity to transform and diversity our economy with the abundant natural gas resource,” Ibrahim said. Ibrahim said that Nigeria needs to use gas and invest in critical sectors of the economy such as education, health, infrastructure and agriculture to provide a solid base for industrialization, local value addition, economic development and sustainable growth. “Gas has a leading role as a key enabler to the diversification and growth of Nigeria’s broader economy through adequate power generation, provision of feedstock for value-adding manufacturing, and increased government revenue from LNG. Pre & Post COVID-19, the development of Nigeria’s vast gas resources & strengthening of the gas value chain should be a national priority, Ibrahim said.

Gas flare: Derefaka explains reasons for data disparity between satellite estimates and national statistics DIPO OLADEHINDE

ustice Derefaka, programme manager, Nigeria’s Gas Flare Commercialisation Programme (NGFCP) has explained why there is a huge disparity between satellite estimates and national statistics when it comes to gas flared by oil companies operating in Nigeria. A comparison of data obtained by the Gas Flare Tracker (GFT), a satellite-based environmental monitoring tool, and data from the Nigerian National Petroleum Corporation (NNPC) as submitted by oil companies, showed a

sharp difference beginning from 2018 when the new flare penalty came into implementation. “Given that flaring is subject to regulations and penalties, there is a tendency that flaring is systematically underreported,” Derefaka said. “The fact that satellite images are not continuous measurements, but “snapshots” represents a possible source of error.” Prior to 2018, operators pay a penalty of 50cent per million standard cubic feet of gas (MMSCF) flared, but with the increase in the penalty to $3.50 for companies producing more www.businessday.ng

than 10,000 barrel of oil per day (bpd), wide discrepancies have been observed in data reported by companies to evade penalty charges. According to the NNPC’s data, in 2018 Nigeria flared 282bcf of gas which makes about 10percent of the total gas produced. On the other hand, GFT reported 472.4bcf of gas for the same year. Also, according to NGFCP, Nigeria flared 325bscf of associated gas in 2019, representing 11percent of gas produced in the country, while GFT recorded 475bscf as gas flared for the same year.

Derefaka noted there is a possibility that satellite estimates may also include refinery flares and illegal refineries. GFT, developed in 2014 and upgraded in 2019, uses remote sensing to determine the amount of flare. It moves across the Niger Delta every 24 hours, records and calculates the value of gas flared, emissions, fines and the energy that can be generated from the flares. To solve the issue of data discrepancies, Derefaka, who is also the technical adviser on gas and policy implementation to the minister of state for petroleum resources, said

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key provisions in the new regulatory law Flare Gas (Prevention of Waste and Pollution) Regulations 2018 require mandatory reporting, access to gas flare data and penalty for providing inaccurate or incomplete flare gas data. Also, Director-General, Budget Office of the Federation, Ben Akabueze said gas flare penalty payment by oil and gas companies in the country will increase to N103.51billion this year, a move taken by the federal government to manage the resultant budgetary pressure from the coronavirus crisis and the oil price slump. @Businessdayng

Akabueze said the government would “tighten implementation of the 2018 revised gas flare penalty payment regime (resulting in upward revision of gas flare penalty for 2020 from N44.7billion to N103.51billion).” According to the revised payment regime for gas flaring, oil firms producing 10,000 barrels of oil or more per day will pay $2 per 1,000 standard cubic feet of gas, compared to N10 per 1,000 scf in the past. Firms producing less than 10,000 barrels of oil per day will pay a gas flare penalty of $0.5 per 1,000 scf.

Tuesday 12 May 2020

BUSINESS DAY

Gambling boss drives merger to completion in uncertain times As Covid-19 spread, Flutter chief Peter Jackson ensured operations would continue while negotiating the biggest deal of his career ALICE HANCOCK

he 200-person trading floor at Flutter E n t e r t a i n m e n t ’s Dublin headquarters is where you “get a feeling for what our business actually is”, says Peter Jackson, the gambling company’s chief executive. Where a “visceral passion for sport and data” helps create Flutter’s key product: bets. But today, it is silent. When coronavirus hit, Flutter told its employees to work from home, relocating its normally noisy traders and their multiple computer screens and headsets to their bedrooms and dining rooms. The timing for Flutter could not have been worse. Its first day with all the traders at home was Cheltenham Gold Cup day, one of its busiest gambling periods of the year with more than 3m bets placed through Flutter’s Paddy Power and Betfair brands. “That was quite nerve wracking,” says Mr Jackson, whose unruffled face wavers over the camera from a dining room in the Cotswolds. Tasteful grey walls are punctuated by modern paintings. At the same time as settling employees, Mr Jackson has pushed through the biggest deal of his career, a £10bn merger with the Canadian gambling company The Stars Group, which owns the Sky Betting and Gaming and PokerStars brands among others. The deal completed this week, making Flutter the largest gambling business in the world by revenue. “Covid throws up all sorts of new issues,” says Mr Jackson, who says that the past month has been a series of “solving problems people have never solved before”. “There’s no one I can go ask. There’s no one who did gambling M&A in the 1918 Spanish flu pandemic.” It has involved luck as well as skill. Just 12 hours before banks began to freeze loan applications, Flutter had its financing for the deal signed off — one of many “sliding door moments” where, Mr Jackson admits, “the deal could maybe have not happened”. Mr Jackson first mooted a merger with Stars in December

2017 before he started as chief executive of Flutter, then known as Paddy Power Betfair. He had been on the Paddy Power board for four years and “knew a lot of people”. Previously, he had been a banker, first at HBOS and later Santander, before becoming chief executive of Worldpay, the payments group. “I had a meeting with Rafi [Ashkenazi, chief executive of Stars] then and we looked at each other and the conversation turned to ‘I wonder whether we should do a deal’ . . . even then the industrial logic of doing the deal was pretty clear to me.” Stars had an international footprint that Mr Jackson says he “coveted”. It also has some of the most popular poker brands and one of the biggest online casino arms in the industry. Despite the risks, coronavirus has only sharpened Mr Jackson’s belief in the rationale for taking on the entirely digital Stars business as he expects the pandemic to accelerate a growth in online gambling at the expense of its land-based counterparts — which are mostly shut. Last month, Flutter was the biggest gainer on the FTSE 100 index with shares up 36 per cent. Yet the prospectus sent to Stars shareholders reveals that pulling the deal together was far from plain sailing, even before coronavirus emerged. Just 10 days after Flutter put in its initial bid in July last year, rival GVC made a move for Stars, which Stars’ board entertained right up until it was discussing the board of the combined group with Flutter — something Mr Jackson only www.businessday.ng

subsequently discovered. Over the course of September, Flutter chipped down the value of the equity offer that Stars shareholders would receive from 46.5 per cent to 45.3 per cent, citing comparative changes in the companies’ share prices. “It’s never necessarily the strategy to have as many to-ings and fro-ings as we had but we were dealing with poker players,” Mr Jackson says. He does play poker but only “very occasionally” with friends. The most complex piece was putting together the two companies’ interests in the US, a new promised land for gambling companies since sports betting was made legal at a federal level in 2018. Coronavirus effect included, analysts at Regulus Partners estimate that the US online betting market could reach $6.6bn by 2024. Both Stars and Flutter had already bought brands in the US but had exclusivity clauses in their deals that only allowed each to own one company in that market. FoxBet, Stars’ US arm, is part owned by the Murdoch family through FoxSport. FanDuel, the Flutter brand, has the private equity group KKR as its minority shareholder. Neither wanted to lose out if Flutter and Stars combined. With Lachlan Murdoch, cochairman of News Corp and chief executive of Fox Corporation, based in Los Angeles and KKR in New York, Mr Jackson found himself in a jet lag fuelled run around the US placating both. “Every time you concede one thing to one of those parties, the other immediately wants

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that plus something else,” he says. The answer to the “favoured child problem” that allowed the deal to move forwards was to give them each an equity interest in each other’s business. It worked. It was not Mr Jackson’s background in retail banking that prepared him for the nitty gritty of negotiations. Instead he credits selling cars as a teenager at his father’s garage in North Yorkshire. “I have my trilby and camel hair coat to show you,” he quips. He also refers back to his time heading up the product division at HBOS during its merger with Lloyds TSB in 2008. But he adds that the financial crisis pales next to coronavirus: “No one was sure whether the banks would ever open again but at least people could leave their houses.” Competition authorities in Australia, the UK and Europe have examined the merger as the two companies own major competing online betting brands in those countries. The UK rubber stamped the deal on March 31, just as the country went into lockdown. But there have been trip hazards in Europe where smaller regulators have furloughed their staff, which held up the process. Simon French, a partner at the consultancy Bixteth Partners, says that the next challenge for Mr Jackson is managing the sheer scale of the combined business and its roster of brands: “No one has tried to run a business of this size and scale in online gambling before.” He will also have to deal with the ongoing scrutiny of regula@Businessdayng

tors around the world but particularly in Flutter’s UK home market, where gambling has quickly climbed the political agenda driven by a growing concern about companies exploiting addicted punters. Mr Jackson says he is a fan of having “a Noak’s Ark” of brands and likes to run Flutter on a “federal model”. He adds that he is “frustrated” by the media’s coverage of the industry’s efforts to tackle problem gambling but admits that it still has “to keep pushing”. “We need to remember you are only as good as the lowest common denominator,” he says. As he attempts to bond a new team through video calls from a hotch-potch of bedrooms and sitting rooms around the world, Mr Jackson admits he is nervous about the task ahead: “If there wasn’t a degree of apprehension I wouldn’t be human because you’re right, I haven’t done this before.” But, he adds, he is excited by all the new brands under his edict, “ready to take on the big guys and win”. Three questions for Peter Jackson Who is your leadership hero? I have been fortunate enough to work for some great people over the years and learnt lots from all of them. As well as lots from the less-great people! If you were not in your position, what would you be? A cyclist, riding in the Yorkshire Dales. What was the first leadership lesson you learnt? Hire the best people you can, and empower them.

Tuesday 12 May 2020

BUSINESS DAY

Coronavirus exam cancellations raise questions of what they are for It is time to rethink whether such assessment really prepares us for life and work ANDREW HILL

bout now, millions of British teenagers ought to be preparing for public exams that normally begin this month. Instead, they are pondering uncertain educational outcomes. In March, as the coronavirus outbreak spread, the UK government opted to cancel the crucial assessments. Sixteen-year-olds, for whom GCSEs (or their equivalent in Scotland) are a rite of educational passage, and 18-year-olds, whose A-level results open the gateway to university or the world of work, reacted with a mix of relief and distress. I heard an A-level student lament to a reporter that it felt like “two years of education wasted”. Like their counterparts in business education, schools have scrambled to replicate the classroom approach online. Teachers are expected to assess performance for exam boards, which will calculate a grade that universities can use to decide who gets in.

Without the deadline of formal exams, though, teachers have worried about how to keep teenagers motivated. “Children thrive when they are given goals and are asked to show themselves at their best,” one headteacher told The Times after the exams were scrapped. “To cancel exams with 52 days to go before the first exam is the wrong decision.” Whether it was right or wrong will be one of many questions to be debated in the aftermath of the pandemic. For now, one cannot but sympathise with students whose education has suffered previously unimaginable disruption. This may not, however, be a one-off interruption of the exam-based norm. Two weeks after the UK cancellations, China and South Korea — which seemed to have pulled through the worst of the coronavirus outbreak — delayed important college entrance exams as new cases flared up. Preparing for this world does not require practice in regurgitating crammed knowledge from memory Why not, then, take this opwww.businessday.ng

portunity to revisit the whole idea of exam-centric assessment and devise an educational programme that prepares young people better for real life and work? They are, after all, going to enter a severely changed world, where the pandemic has called the bluff of all those who pretended school and university were already preparing them to be more resilient, flexible and agile. Charles Handy, the management thinker, wrote in his 2015 book The Second Curve that his grandchildren were heading for exams and jobs “not that different from the ones I encountered 60 or more years ago”. That, he continued, was “a recipe for disappointment and disillusion”. Indeed, the reaction of the student who said his two years of A-level education had been “wasted” summed up the problem. As did the response of the founder of an “enterprisegrade assessment platform”, who told The Daily Telegraph: “It is important that young learners do not lose the habit of testtaking [or] it will be that much harder when they next find

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themselves facing a formal assessment.” Exams have become the justification for the whole educational edifice rather than a way of setting milestones along a broader path to useful and fulfilling adulthood. The framework of assessment cannot be jettisoned altogether. Younger students, in particular, benefit from structure. The business world many will enter is still geared to progress reports, targets, key performance indicators, and objectives and key results (OKRs), even if many employers are now rightly warier of rigid performance appraisal. In many technical and professional roles, knowing by heart how to carry out certain tasks can be invaluable. Mostly, however, workers use knowledge in collaboration with others, or with access to online tools. Unless you are unlucky enough to be a news reporter, you rarely face a three-hour deadline, as in many exams. Instead, what you need is the self-discipline to carry out a series of longer-range projects and an ability to correct course along the way. Preparing for this world does @Businessdayng

not require practice in regurgitating crammed knowledge from memory. Instead, students would benefit from more staggered assessments, based on medium-range coursework, as well as online “open book” exams — with safeguards against plagiarism — and exercises in teamwork and co-operation, of the sort that business schools have been offering for years. Just before the GCSEs were cancelled, the Association of School and College Leaders published a poll of 799 headteachers in England. Only 13 per cent said the exams should be retained in their current form, warning that reforms to make them harder had added to stress and anxiety, particularly among lower-attaining and specialneeds students. After the exams’ cancellation, the association told its members that for those teachers “who believe that the current system . . . is inappropriate there is a chance here to show that an alternative universe is possible”. We are likely to be living in this parallel universe for a while. We had better make sure that our young people are properly equipped to navigate it.

Tuesday 12 May 2020

BUSINESS DAY

property&lifestyle Nigeria’s property market investment still rewarding despite pandemic ... as real estate funds NAV hits N45bn in April ENDURANCE OKAFOR

isk-averse investors seeking high yield on their investment still see the real estate market as a viable destination despite the ravaging impact of coronavirus pandemic on global economy. The net asset value (NAV) of real estate funds climbed to N45 billion as of April 24, 2020, representing a 2 percent increase when compared to the N44.15 billion reported on February 28, a day after Nigeria recorded its first Covid-19 case. The investors who began reconsidering portfolio composition due to the impact of coronavirus on Nigeria’s economy injected N883.39 million into the real estate funds within two months of the virus outbreak, as reflected in the Securities and Exchange Commission

(SEC) data. A real estate fund is a type of mutual fund that invests in securities offered by public real estate companies, including REITs. However, some real estate funds invest directly in properties. While Nigeria’s real estate industry has been disrupted by the outbreak of the novel virus. Temitope Oshikoya, Managing Principal, Nextnomics Advisory, said he is optimistic that the sector with a housing deficit of more than 17million units will remain viable despite the heat from the pandemic. ”Even if the market goes down, it will not remain there, ” Oshikoya said, adding that the continuous demand for housing will bail it out from the challenges caused by the pandemic An analysis of the SEC data revealed that real estate, fixed income and bond

funds were the only mutual fund instruments that recorded increase in their investment inflow in this pandemic era. Increase in the asset of real estate funds coupled with the combined NAV of N29 billion added by both

How FMBN is working to rejuvenate housing sector amid coronavirus CHUKA UROKO

s the coronavirus pandemic lingers in Nigeria, the effect continues to be felt not only in the health sector, but also in other sectors and subsectors of the country’s economy, especially the housing sector which seems to be under the weight of the deadly virus. With businesses generally experiencing slowdown in activities income of individuals and firms reduced, the payment of rents, rates and loans is suffering and defaults rates are rising as people concentrate their financial resources on sustaining themselves and their families. With low income, people who are exposed to mortgage loans cannot meet their repayment obligations, leading to possible decline in the growth of the sector. But there is hope for the sector. “We are committed

and unbending in our resolve to boost the growth of the housing sector,” Rahimatu Aminu-Aliyu, Executive Director, Loans and Mortgages at the Federal Mortgage Bank of Nigeria (FMBN), assured. Aminu-Aliyu spoke at a webinar hosted by the Housing Development Advocacy Network (HDAN) in Abuja at the weekend with the theme ‘COVID-19: Housing as a Solution- FMBN Leading Through the Crisis’, said the bank would do its best in providing loans and refunds to NHF contributors. “FMBN will be at the forefront of stimulating growth in the housing sector through our activities. We will continue to provide loans for real estate construction and also to NHF contributors. Due to the prudent management of NHF resources, we have adequate funds to meet our own loan applications for the time being.” she assured further. The executive director allayed the fears of NHF con-

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tributors with regards to resuming full operations and processing of existing loan application. She said that, “as an institution, we are working hard to resume full operations as quickly as possible, but our focus will be on loan applications. “We hope to conclude and disburse as quickly as possible. This is, therefore, to assure NHF contributors with existing loan or refund applications that we will ensure that we conclude their request in good time.” On the issue of loan repayment, the director said they understoo that some borrowers might experience challenges with repayment due to the economic impact of COVID-19 pandemic, advising that those with NHF mortgage loans in private and informal sector to talk to their primary mortgage banks on their challenges. “We are all aware that CBN has taken the initiative to provide bank loan forbearance measures to ease the burden on customers who are facing repayment challenges. We also want to follow that initiative since our corporate goal is to provide housing to Nigerians,” she assured. She, however, cautioned loan subscribers who are able to make repayments to do so in their best interest and avoid deferring their repayments, noting that forbearance does not mean that you will not be required to pay. It is only that repayment has been deferred.

the fixed income and bond funds pushed the total aseet managed by Nigeria’s mutual fund to a record high of N1.22 trillion as of April 24, 2020. Money market funds, mixed funds, equity funds and ethical funds reported

a joint decline of N18.79 billion in their NAV. Further analysis revealed that money market funds recorded the most decline by N14.99billion and was followed by mixed funds which shed N1.5 billion asset. Equity-based funds and

ethical funds reported NAV decline of N1billion and N226.4 million respectively. Industry analysts believe real estate is a great investment option because of its predictable cash flow, less volatile nature which has many advantages over stocks, and some other investment instruments and, more especially, as its value appreciates with time. It is also resistant to inflation. A breakdown of the funds performance listed under Nigeria’s real estate by SEC showed that UPDC real estate investment fund raked the highest inflow with a NAV of N32.18billion, 72.88percent of the entire N45 billion managed by the real estate funds. Managed by both SFS Capital Nigeria Ltd, Union Homes REITS and Skyle Shelter Fund shared the remaining asset in the real estate funds. Both of them posted a NAV of N9.92billion and N2.28 billion respectively.

COVID-19: Lessons for Nigeria from other economies on curbing mortgage default CHUKA UROKO

his is clearly a worrying time for an estimated 60 percent of renters who may struggle to meet their rental obligations as the impact of coronavirus spreads and crimps household income. This problem, which affects mostly renters on monthly rents, also applies to mortgagors whose ability to pay has been badly hit by the deadly coronavirus pandemic. Default cases are already on the rise with lenders getting edgy. A mortgage is a loan someone secures against his home or property. His home or property, according to the law guiding this transaction, may be repossessed if he does not keep up or he defaults on repayments on the mortgage loan he has taken. This, indeed, is a source of worry for any borrower because he would not like to lose his home or property. The developed economies have a way of getting around this such that the borrower is protected. This approach, which is explained shortly, is a good lesson for Nigeria to learn. In the UK, most mortgage lenders are allowing borrowers who have been impacted by Covid-19 to take a break from paying all or part of their monthly payment for a period of up to three months. Such borrowers are, however, reminded that the payment holiday is not free money.

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This kind of arrangement or consideration is not obtainable anywhere in Nigeria. Many of the lenders, particularly the primary mortgage banks (PMBs), are just struggling. Though they seem to show understanding, the rising waving of default is hurting them in more ways than one. The mortgage bankers, under the aegis of Mortgage Banking Association of Nigeria (MBAN), is urging the federal government of Nigeria to learn from what other countries are doing to curb default in mortgage repayment. Adeniyi Akinlusi, the MBAN President, notes that COVID-19 cuts across the economy and all industries such that everybody is impacted at differing degrees. Akinlusi was quoted as saying recently that many people who are taking mortgages are working in different sectors and COVID-19 affects their obligations. “This is the normal thing, we expect that if the people, who are employed lose their jobs, it will affect their obligations since many companies are not able to meet up,” he noted. He affirmed that several countries have taken actions by asking borrowers to take off one to two months to meet their obligations and the banks are not expected to take them as defaults. “Since this is not something that is peculiar to Nigeria, we can learn from what other countries are doing because the shock is global,” Akinlusi @Businessdayng

advised. To have a functional mortgage system, experts say that Nigeria needs to have a strong thriving housing industry to deliver enough housing stock on which mortgage could be created. They add that the industry needs government intervention to make that happen. This is why, according to them, the intention of Central Bank of Nigeria (CBN) to create a fund for developers in the real estate sector who have the capacity to repay as at when due is a good one. Recently, the CBN Governor in a letter titled ‘Turning the Covid-19 Tragedy into a New Opportunity for Nigeria’, said it was working with deposit money banks to identify potential/eligible off-takers. This is being done with the use of the BVN. In other words, the CBN intends to verify the financial capacities of potential off-takers before any loan can be given to them. The apex bank also disclosed that efforts were underway to provide assistance to the mortgage finance subsector in order to encourage its optimal performance, adding that it would work with state governments to ensure that the needful was done. These include ensuring that the processes of issuing land titles become faster and less cumbersome, reducing the cost of land documentation, and ensuring investment-friendly foreclosure laws.

Tuesday 12 May 2020

BUSINESS DAY

property&lifestyle ‘Investors must shift from ‘quick fix-quick gain’ devt for sector to recover’

With Oluwakemi Adeyemo

CHUKA UROKO

or the real estate sector of the Nigerian economy to recover from the shock of the present global health emergency, investors and developers in the sector must shift from the current quick fix-quick gain approach to development, industry experts have said. The experts note that real estate is one of the sectors worst hit by coronavirus, explaining that many development projects have been put on hold while physical inspection of finished products for sale have been made difficult by the social and physical distancing rule. Like other sectors of the economy, players in this sector are worried over what will become it after this virus is gone. They are worried especially about its recovery, considering that it is a laggard—coming behind others in boom or gloom. This is a huge challenge which, according to Sujibunmi Ogundele, CEO, Sujimoto Construction Company, is a challenge of the mind that requires paradigm shift. “Our major challenge is the challenge of the mind. There is a need to revamp the old ways of doing things and start replacing our immediate gratification mindset with that of value creation. The potentials of the Nigerian real estate industry have

Will your real estate business survive the pandemic?

W no match,” Ogundele said in an interview in Lagos. The luxury real estate developer said that, as investors, there is need for a shift from the old order, insisting that “there need to develop the real estate sector and move from the ‘quick fix – quick gain.” He believes that most Nigerian developers lack patience. Their quest for immediate gratification supersedes the need for value creation, saying that this would continue to leave Nigeria in the backwaters of world-class real estate development. “You cannot change a system by repeating the same mistakes of the past. Someone has to do things differently and I have chosen to be that person by creating the Sujimoto brand with the intent of producing only world-class luxury that offers true and exceptional value. We are here to stamp

our seal of excellence in this industry,” he assured. Sujimoto, a relatively young but very ambitious real estate investment and development company, is the developer of the ultraluxury GulianoBySujimoto in Banana Island, Nigeria’s most exclusive settlement for the country’s super rich citizens. GulianoBySujimoto rose on the ashes of LorenzoBySujimoto which ended up at dream level. “I had conceived the biggest project in my life; I earmarked over $90 million to build the tallest residential building in Sub-Saharan Africa. Unfortunately, government policies and bad economy made my Saudi investors pull out,” Ogundele said of LorenzoBySujimoto. He explained that the economy was so bad and things became so rough that he had to refund hundreds of millions of naira to

the off-takers and let go of some of his best hands. He recalled that on the verge of almost giving up, he reassessed his plans. He added that he reviewed all his decisions, identified his pain-point and made the much-needed adjustment which included letting go of the land for something much better in Banana Island. “Riding on the wings of criticism and media backlash that followed, I conceived the GiulianoBySujimoto project on Banana Island. 20 months after, the Giuliano has metamorphosed from a proof of concept into a proof of product. “It was fully sold-out six months before completion. A stone throw away from the Giuliano, we are building the future. It is called LucreziaBySujimoto. It will be the tallest residential building in Banana Island,” he revealed.

What developers see in post-Covid-19 real estate industry in Nigeria CHUKA UROKO

hough developers generally admit that these, indeed, are very challenging time for their industry, many of them are not frightened because they expect to see a lot of positives for the industry when the world wriggles its way out of the Covid-19 crisis. These developers admit too that it has not been business as usual for every sector of the economy as each sector is feeling the devastating impact of the pandemic. But they are optimistic that as soon as demand for oil returns, business in general and real estate in particular will be back on track. Kazeem Bello-Osagie, the chief executive officer of Hampton-Row Real Estate, is one these developers. He is very optimistic that the Nigerian economy,

Talking Real Estate

particularly the real estate sector, will bounce back in the post-coronavirus pandemic era. Bello-Osagie, in an interview in Lagos, highlighted the effects of the virus on the world’s economy, noting that the major slide suffered by Nigeria has been occasioned by the drop in global oil prices. “As you know, we are an oil dependent economy and the recent unprecedented crash in the oil prices in the global market indicates that government will slow down on their spending, which will have a snowballing effect on the real estate market, spiraling down to property developers,” he noted. Continuing, he pointed out, “another catalyst in the past for the real estate growth in Nigeria has been funds from the Diaspora and most of these developed economies that warehouse www.businessday.ng

these funds are already in recession, hence we can foresee the ripple effect it would have on Nigerians wanting to repatriate funds to invest in the real estate market at home.” Back home, he said, “for us at Hampton Row, it has directly affected us as we have had to suspend construction in line with the social distancing and lockdown order. It has also slowed down sales as the mindset of potential subscribers is that cash is king now, especially as we are dealing with a virus that the world still does not understand, making it difficult for a potential subscriber to plan and forecast.” “In the post-COVID-19 era, the perception and the desire to own a home will change, as a house is not only an investment but a shelter in time of crisis. The worst case scenario is that cost of houses will drop , but

sooner or later it will bounce back when the economy stabilizes. “Because this is somewhat a Force Majeure and an unforeseen crisis, a lot of property developers may have to readjust their prices to an invincible market , thus creating a glut in the sector, especially as there will be distress sale of properties. I am, however, positive there will be a major bounce back for the sector,” he reasoned. The 44-year old realtor came into full-time real estate business in 2014 when he established HamptonRow Real Estate. He had been actively involved in the real estate sector for over 15 years in the informal sector while he still ran QUO Courier & Logistics before realizing there was a major gap in the housing industry in Nigeria, in the areas of finishing and transferring real value to the end users.

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hat aspects of the real estate sector an investor should invest in, or not invest in, during and postCOVID-19 remain an ongoing conversation. It is still believed to be unclear what the new reality of the pandemic will be to economies around the world. Most focused on are aspects of real estate that meet the essential human needs such as shelter, food, health, mobility, logistics, storage and security. It is believed that in short to mid-term periods, hospitality, education, events and commercial real estate may take a big hit. A missing element in these conversations, and a very vital one, is why a particular aspect should be preferred. Of course, profit-making readily comes to mind as the ‘Why’ of most investments. While it is important to discuss and evaluate aspects of real estate with the highest potential for profitability postCOVID-19, it is also important to have a clearly defined ‘Why’ for every category of investor, end-users and investment project, irrespective of size. The pandemic and responses from around the world have revealed how empathetic humans can get and how much of interconnectivity still exists – people are looking beyond profitability to a bigger ‘Why.’ It has also shown how essential design thinking is and will become to businesses going forward. “Design thinking is a human-centered approach to innovation that draws from the designer’s toolkit to integrate the needs of people, the possibilities of technology, and the requirements for business success.” —Tim Brown, Executive Chair of IDEO. Design thinking is an approach to creating solutions to a problem by seeking to understand the users of the would-be solutions and redefining the problem. Five phases are involved in the design thinking process: Empathize, Define, Ideate, Prototype and Test. It is most useful when you want to tackle problems that are illdefined or unknown. The problems in the real estate sector in Nigeria are ill-defined. If building more houses only would solve the problem defined as housing deficit, we should not have un-occupied and abandoned buildings. If population size means and translates to proportionate purchasers of real estate products, the housing construction industry will be productive and profitable year-in-year-out with customers waiting in line. There would be fewer homeless people, slum dwellers and @Businessdayng

congestions. Steering the wheel of the real estate sector effectively and for prosperity on a greater level during and post-COVID-19 requires design thinking – a different way of thinking about problems. This helps to be strategically effective, efficiently solving real problems and creating the desired end game for all stakeholders. Surely, understanding and addressing the current shelter or housing needs of the populace on a large scale will require an unusual approach. More subtly, design thinking also helps to get around the human biases, status quo, traditional or behavioral norms that would normally impede creative imagination, improvement or innovation. Redefining problems as an approach to solving real estate challenges drastically reduces the duplication of ineffective models serving the shrinking middle-class segment. There is no other way to get around the behavioral norms inherent in real estate without employing empathy and emotional intelligence. For instance, it is common for people to resign to a property in a certain location where they become permanently resident, even when that location no longer supports their lifestyle and wellbeing. Such people seem to be confined to that location for two major reasons. One is the fact that they have developed a strong affinity to the property and have become cultured in that location. The second reason is the lack of financial strength to move to a different location. A real estate business that makes empathy its first rule of engagement, as prescribed by the design thinking process, can offer location or property type exchange amongst subscribers. Also, a real estate business, as well as other stakeholders, which employs the design thinking approach, can have a more consistent engagement with stakeholders and clients. Carefully crafting questions to capture and understand client experience working from home while also having children learn from home; their wish for a soundproof portion of a building – for those who must effectively work from home; or a collective effort to facilitate a stronger internet network, might be what sets your product apart. Executing design thinking in real estate would, no doubt, be exerting. However, it helps to establish an inclusive bigger ‘Why’ early on, which is essential to securing client loyalty, commitment and profitability.

Tuesday 12 May 2020

BUSINESS DAY

cityfile Edo: Police arrest couple over baby theft

he police have arrested a couple in Benin, Edo State in connection with the alleged theft and sale of a two-month-old baby. C h i d i N w a b u z o r, spokesperson of Edo State police command, who briefed journalists on last weekend, said that the couple were arrested after they allegedly sold the baby for N300,000. He explained that during investigation, the couple confessed that an Italybased lady linked them up with buyer. According to the police, the buyer, whose name was not provided, has also been arrested and confessed to buying the baby because she was unable to bear a child. Nwabuzor said that the baby had been taken to an orphanage in the state capital while the suspects would be charged to court. The spokesman also said that the command was also investigating a case of alleged rape which was transferred from the Iguobazuwa divisional

headquarters. He explained that preliminary investigation revealed that the suspect, a 38-year man from Okosa community in Iguobazuwa, had unlawful carnal knowledge of his biological daughter, resulting in pregnancy of the 18-year victim. “The suspect has made statement and confessed to the crime, while the victim is currently with the State ministry of women affairs and social development,” Nwabuzor said. He also disclosed that the gender unit of the command had launched investigation into a case of alleged defilement against a 48-year clergyman. The police spokesman explained that the pastor was arrested for allegedly defiling three siblings, aged six, seven and 11 years, as well as another nine-year-old girl. He explained that the suspect had confessed to the crime, while the case had been filed in court and the suspect remanded in police custody pending trial.

Anambra takes delivery of FG’s relief materials

nambra Government has taken delivery of 1,800 bags of 50kg rice, 2,400 cartoons of tomato paste as COVID-19 relief materials from the Federal Government. The state governor, Willie Obiano, represented by his deputy, Nkem Okeke, received the relief materials on behalf of the governor at the weekend in Awka. Okeke thanked President Muhammadu Buhari for the donation and for his efforts to tackle the coronavirus pandemic in the country. “I thank President Muhammadu Buhari for all the interventions he has been given to the states to support their efforts in fighting this coronavirus. “I think this is a situation where the nation needs to come together and fight this virus. We are not just fighting the virus; we are also fighting the hunger and poverty it has created,” he said. Okeke assured that the state government would distribute the relief materials to the people that are really in need of support. Minister of humanitarian

affairs, disaster management and social development, Sadiya Umar Farouq, said that President Buhari has directed that the relief materials should be given to the state. The minister, who was represented by the deputy director, humanitarian affairs department in the ministry, Charles Anaelo, made the presentation on behalf of the minister. She said that the state government had assured that the items would get to the needy and the vulnerable through their system of selection of the indigent persons in the state. “We have handed over 1,800 50 kg bags of rice, 2,400 cartons of tomato paste and 600 cartoons of vegetable oil. “We have gotten assurance of the state government that the palliatives would go to the poorest of the poor and it would ensure that the materials get to only those who are in need,” the minister said. Farouq disclosed that the ministry had distributed the relief materials to almost all the states of the federation, including the FCT, hoping that the people lives would be touched in the positive. www.businessday.ng

A cross-section of 189 interstate travel ban violators arrested by a joint security task force at Zuba in Abuja on Friday. They said they were coming from Katsina going to Edo for farming. NAN

COVID-19: 97% of patients in Lagos are mild cases, says official JOSHUA BASSEY

kin Abayomi, Lagos State commissioner for health says 97 percent of confirmed COVID-19 cases in the various isolation centres in the state are mild leaving only 3 percent as severe. Abayomi also said that the state may record between 90,000 and 120,000 confirmed cases of the deadly virus by July this year. The commissioner, at a COVID-19 update at the weekend, said it was estimated that the state would reach its peak period by July or August. According to him, the state recorded its highest number of infections on May 7 with

183 new cases confirmed. He disclosed that Alimosho, Oshodi and Isolo local government areas were beginning to record increased cases of COVID-19. Abayomi said mortality rate from the infection was more among males, adding that those with underlying conditions such as hypertension, diabetes, cancer, were at higher risk. The commissioner noted that the state had upscaled its testing capacity to reach more people toward flattening the curve of the virus spread. He disclosed that the 256 Nigerian returnees from the United Arab Emirate that arrived Lagos on May 6 were lodged at hotels in Ikeja and Lekki. According to him, they will

be isolated for 14 days, before being allowed back into the society. On 10 people associated with the Government House, Marina, who tested positive to COVID-19, Abayomi said the patients were currently receiving treatment at the isolation centres. According to him, 80 members of staff of the State House, Marina, including the governor and his family were tested, and only 10 people were confirmed positive to the virus. Abayomi said he had not been tested recently, adding there was no need, since he wasn’t showing any symptom. “If there are reasons, I will definitely present myself for testing,” the commissioner said.

He disclosed that the state would commence Hydroxychloroquine clinical trial from next week, in a strategic three arms plan of treatment, prevention and for people at high risk of COVID-19. The commissioner, however, complained that the state was faced with the challenge of confirmed cases of COVID-19, fleeing their homes before the ambulance got there to pick them. He advised people to desist from such practices, adding that the earlier they commenced treatment, the higher their chances of survival. Abayomi also advised citizens to continue to maintain social distancing, good respiratory hygiene and wearing of face masks to prevent spread of COVID-19 in the state.

Enugu health workers lament non-availability of protective gadgets Regis Anukwuoji, Enugu

nugu State health workers complain of non-availability of protective gadgets, which exposes them to danger in the fight against coronavirus in the state. Some of the health workers who spoke with our correspondent under anonymous said they were posted to border areas with security agents to check both vehicles and drivers coming into the state. The vehicles, the health workers said, that were supposed to be coming into the state were those carrying food items alone, but surprisingly a lot of transport vehicles were allowed into the state with passengers and that the health workerswerenotfullyequipped

to check the passengers. According to them, they are endangered in the face of the deadly coronavirus pandemic for not having enough materials to protect themselves. “We don’t have enough face masks, no sanitizer, no thermometer for checking temperature and logistics like transport among others, then how do we effectively work. Do you go to check a vehicle without face mask, do you know the health condition of those in the vehicle,” they asked. As we speak to you, “to encourage all the health workers in the state is to provide adequate protective gadgets to each and every one of them, both on the field and at the primary health centres who handle cases in rural areas,” they said. “We commend the gov-

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ernor for his efforts and determination to fight the pandemic in the state and that he graciously earmarked N330 millions to fight the pandemic; therefore the ministry of health is expected to provide the necessary equipment for health workers to put in their best,” they said. Our correspondent also noticed that the border closure was a sort of opening a money minting office for the security men at the post, instead of ensuring that all the vehicles are checked and stopped. The security of lives of the people living in Enugu State as far as this pandemic is concern is in danger if those at the border are not properly checked. We don’t even known whether cement is among the food items accepted, because we observed that some @Businessdayng

vehicles carrying cement are allowed to pass through the border. The worst aspect of it was that some personals on official duties are sometimes delayed not to pass while those vehicles carry building materials are allowed after collecting money from them, which is detriment to the interest of the residents of Enugu. The Enugu government should have used the securities it can control at all the boundaries such like the state Vigilante, MOT, and local government chairmen of those local governments at the border, using president general and Igwes of such communities to stop those coming into the state from infested states and to ensure that they do not come in without completing the necessary requirements at the border.

Tuesday 12 May 2020

BUSINESS DAY

FINANCIAL TIMES

World Business Newspaper

Stocks slip as Covid-19 flare-ups rattle markets

Oil prices climb after Saudi Arabia announces further cut to crude production HARRY DEMPSEY AND HUDSON LOCKETT

all Street opened lower as flareups in coronavirus cases in Asia and Germany triggered fears of a second wave of infections and highlighted the potential stumbling blocks in reopening economies. The S&P 500 fell 0.6 per cent on opening after closing higher on Friday despite the release of grim data showing US unemployment had hit its highest level since the second world war. The tech-heavy Nasdaq Composite, which last week crept into positive territory for the year, dropped 0.2 per cent. New virus outbreaks in South Korea, China and Germany have shed light on the challenges facing governments seeking to loosen social restrictions, as millions of Europeans and Americans prepare for the tentative reopening of their economies. “The news reinforces the ‘stop and go’ nature of the recovery from Covid-19, and the potential for second and third waves,” said Stephen Gallo, European head of forex strategy at BMO Capital Markets. European equities fell, led by stocks in the travel sector, even as many countries across the continent moved to relax

their coronavirus-induced lockdowns. London’s FTSE 100 was down 0.3 per cent while Frankfurt’s Xetra Dax reversed its early gains to fall 1 per cent. Travel stocks dropped as the UK planned to put a 14-day quarantine requirement in place for the majority of arrivals to the country. Shares in low-cost carrier easyJet tumbled as much as 8 per cent, as British Airways owner IAG warned that the quarantine requirements would heap further pressure on the aviation

industry. London Heathrow airport, which on Monday reported a 97 per cent drop in passenger traffic in April, said 200,000 people passed through its terminals for the month, the same number it would typically serve in a day. “Aviation is the lifeblood of this country’s economy and, until we get Britain flying again, UK business will be stuck in third gear,” said John Holland-Kaye, chief executive of the airport group. Oil prices gained after the announcement by Saudi Arabia that it will cut oil production by a

further 1m barrels a day, reducing its total output to 7.5m b/d in June, in a bid to balance supply with the hit to demand from widespread lockdowns. Brent crude, the international benchmark, rose 0.1 per cent to $31.01 a barrel while West Texas Intermediate, the US marker, was up 2.2 per cent to $24.05 a barrel. Equities have been buoyed in recent weeks by hopes that a gradual restart in global economic activity could fuel a broad rebound. The UK, France, Spain, Denmark and Norway are all set to lift some measures to ease the

economic impact of the pandemic. That optimism has allowed investors to brush off some of the most dismal economic readings on record to help the FTSE All-World index climb more than 25 per cent from lows reached in March. Patrik Schowitz, global multiasset strategist at JPMorgan Asset Management, said investors would need to see evidence that corporate earnings had hit a trough in order to be convinced that stock markets would not retest those lows. “To gain confidence in a bear market low, equity investors traditionally need some visibility into the scale of a recession’s damage to corporate profits,” Mr Schowitz said. In Asia-Pacific trading, Japan’s benchmark Topix index and Hong Kong’s Hang Seng closed up 1.5 per cent. Investor sentiment was bolstered by the weekend announcement from the People’s Bank of China that it would lower real lending rates and “place support for [the] recovery of the real economy in a position of greater priority”. Shanghai’s CSI 300 index closed 0.1 per cent lower as Wuhan, the original centre of the outbreak in China, reported its first clutch of cases since a strict lockdown on the city was lifted about a month ago.

US-China economic decoupling accelerates in first quarter of 2020 Coronavirus impact exacerbates chill between countries as investments fall sharply JAMES KYNGE

ecoupling between the US and Chinese economies shifted into overdrive in the first quarter of this year, as the commercial impact of coronavirus exacerbated what some analysts are calling a “cold war” chill in ties between the countries. The value of newly announced Chinese direct investment projects into the US fell to just $200m in the first quarter of this year, down from an average of $2bn per quarter in 2019, according to a report by research firm Rhodium Group and the National Committee on United States-China Relations, a non-governmental organisation. The fall comes after Chinese direct investment in the US dropped to the lowest level since 2009 last year — down from $2.7bn a quarter in 2018 and $8bn a quarter in the boom

Presidents Donald Trump and Xi Jinping in 2017. Analysts warn that ties between the world’s two biggest economies have deteriorated sharply © AFP via Getty Images

years of 2016 and 2017 — amid souring bilateral ties. Total Chinese direct investment into the US stood at $5bn, a slight drop from $5.4bn in 2018 and well off a recent peak www.businessday.ng

of $45bn in 2016, when Chinese companies were much more free to acquire US counterparts, the report said. “Both Washington and Beijing have blamed each other for failing to adequately respond to the virus, deepening the political and economic tensions that already existed in the relationship,” the report said. “The worsening bilateral relationship and a growing public backlash against China in the US make it likely that Chinese buyers will also face significant political opposition to any big acquisition,” the report added. Some analysts saw little optimism for an improvement in relations. “The discontent in the US arising from the tech revolution and globalisation is so high that politicians have been looking, and will continue to look, for ways to exploit it,” said Chen Zhiwu, a professor at the University of Hong Kong. “The new

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cold war has been going on for a few years, with little trust left between the two. It would take a miracle for this to be reversed.” Chinese venture capital investments into the US also fell off a cliff, slumping from $4.7bn in 2018 to $2.6bn last year. The sharp drop came against a backdrop of tightened scrutiny by the Committee on Foreign Investment in the United States and a range of economic factors. US venture capital investments into Chinese companies declined to an estimated $5bn, down sharply from $19.6bn in 2018 when American funds made several big bets on Chinese technology companies that were preparing to list their shares on the stock market. Rhodium reported venture capital funding separately from foreign direct investment, which focuses on long-term investments. Overall, however, US in@Businessdayng

vestments into China showed considerable resilience, putting about $14bn into initiatives in the country. This was up from $13bn in 2018 mainly because of big ticket projects such as US carmaker Tesla’s new factory in Shanghai, the expansion of General Motors’ car joint venture, Universal Studios’ moves in entertainment and other initiatives. In the first quarter of this year, US investments into China held up, the report says, with about $2.3bn in new projects announced, down slightly from a quarterly average of $2.8bn in 2019. Such resilience was underpinned by a survey conducted by the American Chamber of Commerce in China in April, that found the majority of US companies operating in China did not plan to move production and supply chains out of the country.

Tuesday 12 May 2020

BUSINESS DAY

FINANCIAL TIMES

COMPANIES & MARKETS

@ FINANCIAL TIMES LIMITED

Saudi Arabia will make further oil supply cut to ‘encourage’ peers Kingdom to reduce production by another 1m barrels a day from June ANJLI RAVAL

audi Arabia will cut its oil production by a further 1m barrels a day next month, as the kingdom seeks to provide further support to crude prices battered by the effects of the pandemic. The energy ministry said on Monday that output would fall to 7.5m b/d in June, and the government had asked Saudi Aramco, the state oil company, to begin cutting May production below the 8.5m b/d it had agreed with global producers. The announcement by the world’s largest oil exporter was swiftly followed by two others. UAE, Saudi Arabia’s Gulf ally, said it would cut its oil output by an extra 100,000 b/d, while Kuwait said it would slash production by a further 80,000 b/d. Both reductions would also start in June. Oil demand collapsed this year when economies went into lockdown to slow the spread of the disease. In a bid to stop sliding prices, the Opec group of oil-producing countries agreed with Russia in April to collective cuts of 9.7m b/d, in what were

Saudi Arabia had slashed prices and flooded the market with crude after an Opec+ meeting of ministers in March failed to agree on oil policy © AFP via Getty Images

the biggest-ever curbs that were also backed by the US. But the announced supply reductions — taking effect this month — have failed to significantly bolster crude prices, which are still down by more than half since January, having hit 18-year lows in recent weeks. The price of Brent crude, the

international oil benchmark, increased by 1 per cent after the announcement to more than $31 a barrel, before giving up some of those gains. At this level, producer economies — including Saudi Arabia — and oil companies across the world are under intense financial pressure, with officials

and executives forced into cashconservation mode. The energy ministry said in a statement the kingdom hoped to “encourage” other members of the so-called Opec+ group to comply with the agreed curbs and make additional voluntary cuts of their own. Oil stockpiles have swelled as

global oil consumption fell by a third in response to governments’ virus containment measures. “The size of the supplydemand imbalance leaves little room for optimism,” said Bjornar Tonhaugen, head of oil markets at Rystad Energy. On Friday, Saudi Arabia’s King Salman held a telephone call with US President Donald Trump, who had demanded the kingdom end its price war that has devastated large parts of the US shale oil industry. “The two leaders agreed on the importance of stability in global energy markets,” a White House spokesperson said. Saudi Arabia had drastically cut prices and flooded the market with crude after an Opec+ meeting of ministers in March failed to agree on oil policy in response to the virus’s spread. The kingdom’s oil minister, Abdulaziz bin Salman, told the Financial Times in an interview last month the price war was an “unwelcome departure” from a strategy of collective production cuts, but said Saudi Arabia had to act to capture some revenue as oil prices fell.

German employers slash jobs as coronavirus lay-offs mount Almost one in five companies laid off workers or ended fixed-term contracts in April SIOBHAN RIDING

lmost one in five German companies decided to lay off workers or not to extend fixed-term contracts in April because of the economic impact of the pandemic, in an early indication of how challenging many European companies will find the return to work as lockdowns ease. Germany’s restaurants, hotels and recruitment companies were particularly badly hit, with more than half cutting jobs, according to a survey of 6,500 businesses by the Ifo economics institute in Munich over the first three weeks of April, which was published on Monday. The data showed even Europe’s strongest labour market is being shaken by the crisis, suggesting Germany’s attempt to shield workers from the impact of the pandemic with its subsidised short-term leave scheme is unlikely to prevent a sharp rise in unemployment. “From now on, the [coronavirus] crisis will have an impact on the German labour market,” said Klaus Wohlrabe, head of surveys at Ifo.

A reopened café in Schwerin, northeastern Germany. The restaurant sector has seen some of the highest rates of companies reporting lay-offs © AFP via Getty Images

More than 10m workers in Germany had by last month applied for the Kurzarbeit scheme, in which the government pays about two-thirds of their wages while they are on reduced hours or sent home, a record level of demand for the scheme that equates to more than a fifth of the workforce. Despite this, the strict lockdown measures introduced to contain the spread of coronavirus left companies in many sectors with no choice but to cut jobs permanently, the Ifo survey found. As well as restaurants, www.businessday.ng

hotels and recruitment companies, job cuts were also reported by more than a third of groups making leather goods and shoes, as well as travel, sports and entertainment companies. The carmaking sector, which accounts for about a fifth of Germany’s manufacturing output and 5 per cent of all jobs, has been hit particularly hard by plant closures, supply chain disruption and plummeting sales. Almost four out of 10 vehicle manufacturers told Ifo they had cut jobs last month, as car production fell 97 per cent.

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Germany entered the crisis with almost full employment and a jobless rate of only 5 per cent, one of the lowest in Europe. But economists at Deutsche Bank estimate this will rise as high as 8.5 per cent this year before falling back to 6 per cent next year. If the lockdowns are extended because of a fresh surge in infections, they said it could rise to as high as 13 per cent. The country’s jobless ranks have already expanded by a record 373,000 people between March and April to reach 2.64m. @Businessdayng

That pushed up the unemployment rate to a three-year high of 5.8 per cent in April. Normally Germany’s domestic-focused services sector acts as a buffer to any downturn in the export-focused manufacturing industry. However, Deutsche Bank economists said the services sector was being hit just as hard in this crisis, so it was “not providing a similar buffer for employment”. Some sectors are proving more resilient; 5 per cent or fewer of the surveyed businesses in the pharmaceutical, construction, real estate, information technology, legal and tax advice and gaming and betting said they had cut jobs. Germany has been steadily lifting its lockdown; many shops and schools at least partially reopened last month while restrictions are set to be lifted on restaurants, hotels and campsites in several regions this month. But some restrictions will stay in place until at least June, while public events are banned until August, and economists estimate economic activity will not rebound before the second half of the year at the earliest.

Tuesday 12 May 2020

BUSINESS DAY

news

OVID-19: Obaseki meets security chiefs, deepens inter-agency collaboration on enforcement of guidelines, others

do State governor, Godwin Obaseki, has reaffirmed that security agencies in the state are working collectively with the government to secure the lives and property of citizens, rid the state of crimes and ensure compliance with all directives against the spread of coronavirus (COVID-19). Obaseki gave the assurance after the state’s Security Council meeting with heads of various security agencies in the state, at the Government House, Benin City. The governor described the clash between men of some of the security agencies, which occurred along Lagos Street, in Oba Market, at the weekend, as unfortunate, noting that the matter has been resolved to preserve the existing collaboration among security agencies in the state. He added, “One or two individuals had a misunderstanding that degenerated but it has been resolved. The matter is being investigated and we believe that with the speed, with which the security agencies are pursuing the matter, they will get to the root of the issue and anyone found culpable will be dealt with accordingly.” The Edo commissioner of police, Lawan Jimeta, said investigation had

commenced into the clash between security operatives and members of taskforce enforcing compulsory use of facemask around Lagos Street area, in Benin City. CP Jimeta said the weekend clash happened when members of the state taskforce on COVID-19 insisted that a lady should comply with the order on mandatory use of facemasks, adding “The lady became so rude and abusive. An officer tried to intervene and the situation escalated. Thankfully, nobody died. “However, an investigation has commenced and all those found to have deliberately used force will be dealt with according to the law.” Jimeta assured that security agencies are working and cooperating with Edo State Government in enforcing laws to protect the state from the deadly coronavirus, as well as criminals, adding, “We are manning all the state borders and ensuring that people comply and get screened. Those that fail to undergo screening are turned back.” On the killing of a police officer on Friday in Auchi, Edo North Local Government Area, he said investigations have commenced to unravel the immediate and remote causes of the incident.

Covid-19: Labour, civil society demand concrete action to mitigate job losses, salary cut … call for more PPEs for health workers Innocent Odoh, Abuja

abour Movement and the Civil Society Situation Room have tasked the government and stakeholders on strategic action plan to handle the fall out of the Covid-19 on the Nigerian economy in order to stem the tide of job losses and salary cuts following the recent lockdown in Lagos, Ogun and the FCT and the ongoing inter-state travel restrictions. The Labour-Civil Society Situation Room on Covid-19 comprising representatives of the two national labour centres – the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC), affiliate unions in the frontline of the Covid-19 challenge, civil society organizations and professional groups met on Thursday, May 6, 2020 at the Labour House, Abuja to harmonise their positions on the issues. The labour movement and the civil society emphasized the need for sector specific, gradual, and evidence led relaxation of the lockdown in different states of Nigeria,

saying “this is in order to avoid overcrowding in public places with the attendant risk of worsening the Covid-19 incidence.” According to a statement issued on Monday by the President of the NLC Ayuba Waba and the President of the Trade Union Congress (TUC) Quadri Olaleye, the meeting which was chaired by Waba, lamented the upsurge in job losses and salary cuts across different sectors of the Nigerian economy in the wake of the Covid-19 challenge. Labour and civil society also expressed concerns on the resilience of the Nigerian economy to the shock of the global economic crisis consequent on Covid-19 even as Situation Room identified specific concerns with regards to external borrowing, internal borrowing, Nigeria’s external reserves, trade balance, management of the downstream petroleum sub sector especially the state of Nigeria’s national oil refineries, diversification of the economy, increase in energy costs and the hike in the prices of public utilities.

Ondo records first death of COVID-19 case as state says deceased suffers from renal failure KORETIMI AKINTUNDE, Akure

ndo State government on Monday confirmed its first casualty from the COVID-19 pandemic. Governor Oluwarotimi Akeredolu confirmed this in a statement made available to journalists in Akure on the latest development of COVID-19 pandemic in the state. Akeredolu said the deceased, a man, was one of those that came into the state from Lagos State after testing positive to Coronavirus. According to Akeredolu, the patient, before he died early hours of Monday, was receiving treatment at the state’s infectious disease hospital and had an underlying challenge of renal failure, which worsened his case and led to his death. Akeredolu said, “The summary isthatforlastweekwerecordedthree

cases. This makes a total of 16 cases recorded so far in Ondo state. Of the sixteen cases, six have been successfully treated and discharged while nine are under care at the Infectious Diseases Hospital (IDH), Akure. “The sixteenth case who is from Ile Oluji has just been admitted into isolation in the IDH. We have also been told that line tracing for these three new cases have been activated. “However, I regret to inform you of the sad loss of one of the three new cases. The unfortunate incidence occurred early this morning. The case was already a patient with a renal condition. In spite of the border lockdown, he arrived Ipe-Akoko, Akoko South East local Government area on the 27th April 2020. His arrival was reported to our health workers who immediately proceeded to administer test upon him. www.businessday.ng

Pauline Tallen (l), minister of women affairs and social development, presenting document of relief items to the leader of Methodist Women Fellowship, Iyabode Soyege, during the distribution of Covid-19 palliatives to women groups in Abuja .

Transiting to a non-subsidy regime requires defined legal framework for sustainability - experts HARRISON EDEH, Abuja

…PIB must come in full force to engineer full sectoral reform

(PPPRA) effect a monthly price modulation determined by global oil price. Although it did not effect that of April as it sites concern of multiple exchange rate, which it is presently sorting with Nigeria’s apex bank. Joe Nwakwue, chairman, Society of Petroleum Engineers, tells BusinessDay that for a long-term subsidy regime to be effective there needs to be overall reform in the sector, which would see to the amendment of the Petroleum Act and the PIB. He notes that a long-term institutional and legal framework needs to be fixed for the sector to fast-track a holistic reform for the Nigerian oil sector. “Issues around host community, the fiscal and how money is made and shared in the sector are issues that must dominate discussions now and passage beyond the no subsidy regime, which is just an aspect of the holistic reform in the oil sector,” Nwakwue says. Henry Adigun, an oil sector

or a proper and effective transition to a non-subsidy regime, Petroleum Industry governance experts say the Federal Government of Nigeria must hasten the procedural steps in giving legal backing to the initiative while ensuring it hastens the passage of Petroleum Industry Bill (PIB) to achieve a long term benefit for the sector. Mele Kyari, the group general manager of the Nigerian National Petroleum Corporation (NNPC), has signalled the intention of the corporation to do away with the unsustainable ‘wasteful subsidy’ regime he admitted has put intense pressure on the scarce nation’s resources amid dwindling oil revenue resources. On the back of this development, some experts that spoke with BusinessDay say the GMD’s statement on ‘no more subsidy’ payment is more of restoration of price modulation template, which has seen the Petroleum Product Price Regulatory Agency

governance expert, also says Nigeria must explore this time to reconfigure the economy, insisting that the government must embrace reforms and reconfigure the economy to harvest benefits in its largely oil driven economy. “Our best bet now is to reconfigure the economy, oil and power sector subsidy must go. They are not sustainable any longer. We must not be spending our huge revenue resources on recurrent expenditure. Reforms in oil and power sectors so that we could free up funds for more critical and perimeter things,” he states. The Federal Government had struggled amid dwindling oil revenue resources and has already reviewed the 2020 budget benchmark and cut overall approved appropriating Act by N1.5 trillion and proposal to remove subsidy. Also, the International Monetary Fund (IMF) has issued a checklist to the Federal Government as part of conditions to

get its $3.4 billion budget support fund, part of which is the re-setting of Nigeria’s electricity market, which is also thriving on unsustainable subsidy. Timipre Sylva, minister of state for petroleum resources, it would be recalled, had informed earlier in the year of the Ministry’s plan to push for enabling reforms to regulate the oil sector while assuring that the PIB would be passed before May 29. Already, BusinessDay learns that discussions had commenced in the Senate about the bill, even as the executive version of the bill is being waited for from the executive before the outbreak of the coronavirus pandemic. It would be noted that the global oil market is witnessing a tremendous volatile shocks following the coronavirus pandemic scare and the recent OPEC+ meetings, which has put Nigeria on the pole position of embracing reforms and value addition in the less impactful oil driven economy.

‘Spaces for Change,’ allies knock Wike over demolition Ignatius Chukwu, Port Harcourt

… demand adequate compensation for owners

is Rivers State government’s campaign of terror over the last few weeks, ruthlessly clamping down on civic freedoms in the name of combating the spread of coronavirus.” On Sunday, May 10, 2020, bulldozers accompanied by a horde of armed security operatives acting on the orders of Rivers State governor, Nyesom Wike, viciously demolished two hotels, Prodest Home Services, Alode, popularly known as “Prudent Hotel, Alode” along Old Refinery Road Area, and Etemeteh Hotel, Onne, both in Rivers State, under the guise of enforcing COVID-19 lockdown measures. The heavily-armed security operatives were accompanied by the Eleme Local Government chairman and members of the Local Government Task Force on COVID-19. They stormed the two hotels at about 11.58 a.m. on Sunday morning, forcefully

group known as ‘Spaces for Change’ and its allies have become one of the first groups to give knocks to Governor Nyesom Wike over the demolition of two hotels in Eleme, Rivers State. Governor Wike accused the hotels of violating his lockdown order by allegedly opening for operations. Spaces for Change (S4C), Youths and Environmental Advocacy Centre (YEAC) and the Action Group on Free Civic Space in an early statement condemned what they called the sudden invasion of the two hotels, and the use of force that they said characterised the demolition exercise. The groups said the owners of the two hotels had no opportunity at all to salvage their properties or remove some valuables before the buildings were pulled down. “Particularly distasteful

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evicted the occupants and demolished the buildings, including the properties inside worth millions of Naira. In the cruellest display of arbitrary executive powers, Rivers State Governor Nyesom Wike, personally supervised the demolition of the two hotels. In the statement signed by Victoria Ibezim-Ohaeri (S4C), Fyneface Dumnamene (Youths and Environmental Advocacy Centre, YEAC), and an unnamed representative of Action Group on Free Civic Space, said the only whiff of notice about the demolition was contained in a press statement, dated May 9, 2020, signed by the Rivers state government, alleging that Prudent Hotel and Etemeteh Hotel flouted the state government’s directive on the closure of hotels in the state, as part of the lockdown measures to combat the spread of coronavirus in the state. @Businessdayng

The groups said the hotels were demolished less than 24 hours after the press statement was issued. “Without giving them fair hearing and without any form of engagement with the owners of the properties, Rivers State authorities went ahead and demolished the two hotels, sparking fear and public outrage across the state and the entire country. “When the Action Group on Free Civic Space’s COVID-19 Tracking Team visited the demolition sites and interviewed the managers of both hotels, they both denied operating and violating the lockdown orders. The manager of Prudent Hotel also denied allegations of harbouring a wanted felon in the hotel during the lockdown. Hotel owners, managers, neighbours and local residents are all in total shock after witnessing the height of executive impunity and brutality today.”

Tuesday 12 May 2020

BUSINESS DAY

news

Naira strengthens to N386.94k COVID-19: FCT health workers threaten CACOVID commissions 66-bed receiving centre for COVID-19 patients in Kano after trading at Investors’ window strike over salaries, others Hope Moses-Ashike

i g e r i a ’s c u r r e n c y strengthened by N0.31k as the foreign exchange market closed with the dollar trading at N386.94k from N387.25k traded on Friday last week at the Investors and Exporters (I&E) forex window. Earlier yesterday morning, the naira weakened by N1.52K as the market opened the week with an indicative rate of N387.88k per dollar c o mpa re d t o N 3 8 6 . 3 6 k / $ opened on Friday last week, according to data from FMDQ. FX daily turnover declined by 31.17 percent to $70.40 million on Monday as against $102.28 million recorded on Friday last week. At the retail Bureau, naira depreciated by N1 as the dollar traded at N448 on Monday compared to N447 traded on Friday. The exchange rate at the black market was stable as the dollar traded at N445 the same as on Friday. The governor of Central Bank of Nigeria (CBN), on Sunday assured investors of the security of their investments in the country despite dwindling revenue from the sale of crude oil globally. Godwin Emefiele, governor of the CBN, said investors

interested in repatriating their funds from the country were guaranteed to get their money. M e a n w h i l e , N i g e r i a’s gross official reserves declined by $1.64 billion in April to $33.52 billion. A report by FBNQuest shows that this was the eleventh monthly decline in succession. This cumulative fall of $11.60 billion is largely due to the exit of foreign portfolio investors (FPIs). A recovery of sort is assured now that the International Monetary Fund (IMF) has disbursed $3.40 billion under its Rapid Financing Instrument (RFI) to tackle the impact of Covid-19. Additional concessional financing is likely from other partners, notably the World Bank and African Development Bank groups. Such inflows flow directly into reserves. The cash from the RFI has already been banked. Total reserves at end-April covered 6.5 months of merchandise imports on the basis of the balance of payments (BoP) for the 12 months to December, and 4.0 months when we add imported services. These figures should be adjusted, however, for the pipeline of delayed external payments, largely repatriation proceeds due to FPIs and now estimated at close to $1 billion.

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Innocent Odoh, Abuja

he fate of residents of the Federal Capital Territory (FCT) may worsen in the face of the rampaging scourge of COVID-19. This is because the Joint Health Sector Union (JOHESU) and Assembly of Health Care Professionals Association (AHPA) in FCT have given the management of Federal Capital Territory Administration (FCTA) on or before May 28, 2020, to resolve issues of irregularities in salaries and other pending disputes with the workers or risk industrial action. This threat was contained in a notice addressed to the minister of the FCT, Mohammed Bello, by the FCT JOHESU chairperson, Debora Yusuf. In the notice dated May 7, 2020, JOHESU also said the strike notice was predicted on the “inability of the FCT Administration to resolve certain pending abnormalities in its operations which has brought unbearable sufferings on the members.” Yusuf noted that irregularities in salaries payment since January 2020 include; shortfalls of payment and in some cases, outright omission of staff names from payment schedules, non-payment of accrued arrears of 2016, 2017 and 2018, promotion and demand for yet to be settled outstanding of skipping of CONHESS 10

including balance of call duty relativity. Others are: delay in the release of conversion and proper placement, which she said had affected the career progression of members, no remittance of capitation, union check off dues and third party deduction since January 2020, as well as denial of payment of salaries to employees of 2019 while a few of this category were short paid. JOHESU is the main body of Medical and Health Workers Union of Nigeria (MHWUN), National Association of Nigeria Nurses and Midwives (NANNM), National Union of Allied Health Professionals (NUAIIP), which comprises pharmacists, medical laboratory scientist, radiographer, dental therapists, and dental technologist. The body had on March 18, 2020, threatened to down tools but was prevailed upon by the Speaker of the House of Representatives, Femi Gbajabiamila. JOHESU in the statement again warned that it might not be stopped from embarking on strike this time, stressing that since the intervention of the Speaker, the FCTA management had failed to provide the strategy to address the disputed issues, which were never experienced before the migration to the new Integrated Personnel Payroll Information System (IPPIS) platform.

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Adeola Ajakaiye, in Kano

66-bed capacity Isolation Centre fully refurbished and equip by the private sector Coalition against Covid-19 (CACOVID) to serve as a receiving facility for individuals that test positive to Covid-19 has been commissioned in Kano State. The facility, situated at Abubakar Imam Urology Centre, is one of the six isolation facilities being put in place in the state, to complement the ongoing efforts by both the federal and state governments to accommodate the rising cases of Covid-19 patients, who are in need of isolation in the state. Apart from the physical re-conditioning of the building of the centre, CACOVID also provided new set of hospital beds, air-conditions, refrigerators, and other medical accessories, as well as re-creation and sporting facilities, such as: Table Tennis, among others. Speaking before handling over the donated centre to the state government, Abdulkadir Sidi,

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representative of the chairperson of Dangote Foundation, who performed the presentation on behalf of CACOVID, disclosed that the gesture was part of an ongoing intervention by partners geared at assisting the government to confront the Covid-19 pandemic in the state. Sidi expressed the determination of the partners to continue to support the state government in every way to bring an end to the disease. “On behalf of CACOVID, We in Dangote Foundation are glad to hand over this 66bed capacity fully equipped centre to you sir. As you know the refurbishing and other facilities put in place here is at the instance of the partners. “We want to assure you that the CACOVID is prepared to continue to support the state in whatever way that are required,” Sidi stated. In his address earlier, Ibrahim Tsanyawa, commissioner for health, commended the CACOVID for the initiative, which according to him, was a great boost to the fight against the Covid-19 pandemic disease in the state.

Tuesday 12 May 2020

BUSINESS DAY

news rallies after Saudi Arabia Attacks on COVID-19 frontline health workers Oilpromises additional 1mpd cut by patients inhuman, unacceptable – FG ... Kuwait, UAE also pledge more cuts ... Says working on sample from Madagascar TONY AILEMEN, INNOCENT ODOH & HARRISON EDEH, Abuja

he Federal Government on Monday decried attacks on frontline workers by patients, describing them as “inhuman and unacceptable”. Speaking at the daily briefing of the Presidential Task Force (PTF) on COVID-19 in Abuja on Monday, Boss Mustapha, chairman of the task force, said the PTF has continued to receive, rather sadly, reports about challenges facing the frontline health workers, including threat to lives and

detention by patients. This is coming against the backdrop of recent reports of ill-treatment of medical personnel fighting the deadly coronavirus. Only recently, two medical doctors and a nurse were reportedly held hostage last Thursday by some COVID-19 patients at an isolation centre in Kwanar Dawakin, Kano State. Aminu Muhammad, a former chairman of the Nigeria Medical Association in Kano, reported that health workers were on a ward round when the incident occurred. “Fully kitted workers with personal protective equipment were locked in a room

with a COVID-19 patient for about four hours. He said they were almost suffocating before they broke the door and forced their way out of the ward,” according to Muhammad, a professor of medicine. At the briefing on Monday, Mustapha said the COVID-19 frontline workers are actually nursing to health but have “suffered other forms of harassment” in the course of their assignment. “Let me underscore the fact that these frontline workers constantly put their lives on the line to make sure persons infected are provided with the best care possible to enable them

become healthy citizens again. It is therefore inhuman and unacceptable that patients engage in acts of locking them up and making demands that these frontline officers most of the times do not have the capacity to address,” he said. The PTF on COVID-19, he said, “views such behaviour as reprehensible and should be deprecated”, and called on “all state governments to take this up appropriately”. Mustapha assured that the PTF is identifying and assessing all low to medium and high burden areas with a view to assessing and modifying its strategy.

DIPO OLADEHINDE

il price spiked on Monday after Saudi Arabia announced an additional 1 million barrels oil-production cut to slash output to the lowest in 18 years in an effort to ease a global supply glut that has ravaged prices this year. Beginning on June 1, the Kingdom will cut output by an additional 1 million bpd which, combined with the cuts agreed to by OPEC and its oil-producing allies, brings Saudi Arabia’s total cut to roughly 4.8 million bpd below its April record production level. Production for June will now be 7.492 million bpd. “We have to be ahead of the curve,” Saudi Oil Minister Prince Abdulaziz bin Salman told Bloomberg News on a phone interview on Monday. “The voluntary cuts will further expedite the re-balancing process.” Saudi Arabia also said that it would scale back May production “in consent with its customers”.

“The Kingdom aims through this additional cut to encourage OPEC+

participants, as well as other producing countries, to comply with the production cuts they have committed to, and to provide additional voluntary cuts, in an effort to support the stability of global oil markets,” a statement from the Saudi press agency said. Kuwait joined Saudi Arabia onMondayinannouncingfresh oil production cuts to be implemented in June, state news agency KUNA reported, citing Oil Minister Khaled al-Fadhel. Kuwait will slash production by 80,000 barrels per day in June, on top of the cuts already agreed under a pact by the OPEC+ group of major oil producing countries, the agency reported al-Fadhel as saying. The United Arab Emirates has also committed to an additional cut of 100,000 barrels per day in June, according to a tweet from Amena Bakr, deputy bureau chief at Energy Intelligence. Brent crude oil, the international standard, was up 0.19 percent at $31.03 a barrel while West Texas Intermediate crude oil, the US benchmark, was higher by 2.10 percent at $25.26.

Orji Kalu still in prison as counsel says working to secure release Felix Omohomhion, Abuja

Ifeanyi Okowa (3rd l), Delta State governor; Kingsley Otuaro (2nd l), deputy governor; Marshall Umukoro (3rd r), state chief judge; Stella Ogene (2nd r), president, Customary Court of Appeal, and some newly sworn-in judges: Emmanuel Dolor (l), and Ighoverio Aruoriwo, after the ceremony in Government House, Asaba, yesterday.

PwC outlines six priorities for Nigerian lenders in managing COVID-19 threats SEGUN ADAMS

he economic slowdown from the novel coronavirus outbreak intensifies risks to the Nigerian banking industry and necessitates the need to adopt a six-pronged COVID-19 response, according to a PricewaterhouseCoopers LLP (PwC) Nigeria report assessing the impact of the virus on local lenders. Banks in Nigeria, a country predicted by the IMF to slip 3.4 percent this year, will have to deal with the economic contraction, higher credit losses and the attendant impact on overall asset quality, capital and liquidity. PwC notes that banks’ loan books are exposed to some of the sectors that are the worsthit, and lenders will face some of the biggest accounting challenges due to the fallout from

the pandemic. The banking industry also faces risks from a reduction in fee and trading income as well as on net-interest income. At the same time, cybersecurity breaches, operational constraints of keeping employees safe and meeting customer expectations, and deterioration of IT and other support services because of internal challenges or vendor problems will plague banks, according to PwC. As a result, PwC outlined six important considerations for banks in response to the novel coronavirus. The approach focuses on workforce, operations and supply chain, communication strategy, data, customers and revenue, and head office functions. According to PwC, protecting one’s people and planning one’s workforce requires idenwww.businessday.ng

tifying the critical work which delivers banks’ P&L, the workforce that does this and the capacity of the organisation to move labour to sustain those critical activities. Among other things, it also involves reviewing HR policies to understand where risks are exacerbated or mitigated and the extent to which this supports or undermines the proposed response (e.g., flexible working, immigration, travel, and other relevant policies and regulations). On maintaining business continuity and protecting supply chain, PwC identified key points which include the review of the requirements of key suppliers, such as facilities management and IT service providers, in light of any requirements that may change during a pandemic period (e.g., increased cleaning regimes).

Also, it advised scenario planning exercises to understand the financial and non-financial components of operational implications of various scenarios. PwC also said banks should provide clarity to employees and stakeholders and enable business continuity while the focus on data will help lenders gain insight and assess their exposure to risk. To balance customer care with commercial priorities, lenders should update their sales and demand planning strategy, including assessing changes in customer behaviour (e.g., buyer habits), while extending health and safety plans to customers, among other things. Banks have also been guided to join up efforts on a cross-functional basis to ensure business continuity and resilience.

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ormer Abia State governor, Orji Uzor Kalu, has not been released from the Correctional Services. Kalu, who benefitted from a Supreme Court judgment last Friday which nullified the process that led to conviction of the second and third defendants, was said to have been released since Friday when the judgment was given. However, sources in the camp of Kalu confirmed to BusinessDay Monday that the former governor was still in the process of regaining his freedom. According to one of the counsels to Kalu, who craved anonymity, their client was yet to be released. “We are in the process of securing his release. You are aware that the judgment was given last Friday and being weekend, we were unable to get the enrolment order from the Supreme Court that Friday. We are in process of getting the enrolment order from the Supreme Court which will be submitted to the authorities of the Correctional Services to secure his release,” he said. On whether or not Kalu will benefit from the judgment of the apex court, when he was @Businessdayng

not a party in the appeal, the lawyer said Kalu will. “The Supreme Court voided the process leading to the entire judgment. All parties affected by that judgment are beneficiaries. Certainly, Kalu will benefit from it, he is the first defendant in the case,” he said. Slok Nigeria Limited and Ude Jones Udeogu had appealed against the jurisdiction of the Federal High Court Lagos, under Justice Mohammed Idris as the trial judge, to try them having been elevated to the Court of Appeal. Although Kalu did not join in the appeal, he benefitted from it, since it was a joint trial, his counsel said. Calls to the line of Director of Information, Supreme Court, Festus Akande, were unanswered as of the time of filing this report. The apex court last Friday held that the trial that led to the conviction of the three defendants was fraught with irregularities. It then ordered that a fresh trial be conducted. The seven-man panel of the Supreme Court in a unanimous decision by the panel of Justices held that the federal high court in Lagos acted without jurisdiction when it convicted Kalu, his firm, Slok Nigeria Limited, and former Director of Finance in Abia State, Udeogu.

Tuesday 12 May 2020

BUSINESS DAY

news Coping with lockdown, Nigerians turn... Continued from page 1

In the 30 days prior to May 4, the day gradual easing of the lockdown began in Lagos, Abuja and Ogun, the top trending search term on Google Nigeria was ‘how to make bread’, followed by ‘who is Abba Kyari’, with Google reporting that the top 20 trending questions from search in Nigeria were dominated by food and current affairs questions. According to Google, search trends information is gleaned from data it collates based on what Nigerians have been searching for and asking Google. “Forced to stay at home, and often unable to perform their usual work, many people across the globe, including Nigerians, have turned to cooking and baking as ways to pass the time – and keep themselves fed in the absence of restaurants and other vendors,” Google said when the search trends were made public. Top 10 trending food questions in Nigeria over the 30-day period prior to May 4 were ‘How to make bread’, ‘How to make pancakes with flour’, ‘How to make chinchin’, ‘How to make fish roll’, ‘How to make egg roll’, ‘How to make pizza’, ‘How to prepare vegetable soup’, ‘How to make cookies’, ‘How to make akara’, and ‘How to make egusi soup’. Out of these top 10 queries pertaining to food, seven are derivatives of wheatbased flour, which is predominantly used in Nigeria. But the price of flour, which varies by location and usage (based on volume), has increased by as much as 20 percent in some places, from N10,000 per 50kg bag to N12,000 in the last two months. Even for bulk users such as bakeries and producers of confectioneries who previously bought it for less than N9,000, they now have to pay as much as N10,500 per bag. This has threatened what is now becoming a past-time in the country. Wheat production in Nigeria is currently challenged as farmers have been unable to harvest their crops from the farms, while preparations for the next planting season are uncertain. In 2019, data from the National Bureau of Statistics (NBS) showed Nigeria imported at least N401 billion worth of wheat, with the product retaining its position as the country’s

highest agricultural import. In 2018, wheat importation gulped N362.4 billion, representing 42.5 percent of the N852 billion officially captured by NBS to have been spent importing agricultural goods. “If you look at the rate of consumption per capita, we consume more wheat than rice in this country,” said Salim Muhammad, president, Wheat Farmers Association of Nigeria. Muhammad had noted during a webinar by the Guild of Nigerian Agriculture Journalists (GNAJ) last week that there is a high demand for wheat products in Nigeria as well as high consumption of wheat. However, production has struggled to increase over the years as the sub-sector appears to be suffering neglect from government and policymakers, with Muhammad describing wheat as a ‘political crop’. “Every Nigerian household consumes bread, noodles, and pastas. But what is my country doing to produce enough wheat for the consumption locally in the country?” he asked. At present, wheat farmers who should be harvesting their crops between April and May have been caught in the middle of COVID-19 restrictions, and some already fear that part of their farm harvests would already be lost if they eventually gain access. Not just to enter the farms, but also with harvesting requirement for wheat. “If you look at the derivatives of wheat, it is topline food for the younger (upper and lower) middle income class, and that population is growing,” Ayodeji Balogun, country manager, AFEX Commodities Exchange Limited, told BusinessDay in a previous phone interview. “ The population of people eating pasta will continue to increase, and every sachet of noodles is a part of wheat. That number will keep growing and wheat is not a crop we have any efficiency in producing,” Balogun said. Even though the price of flour is increasing, nobody would buy if you change the prices of loaves of bread because people simply have no money, said Kabiru Ibrahim of the All Farmers Association of Nigeria. “We must allow the production of wheat and encourage its production because the amount of wheat that we consume is colossal,” Ibrahim said. www.businessday.ng

Seyi Makinde (l), Oyo State governor, and Taoreed Adedigba, caretaker, chairman, Akinyele Local Government, during the governor’s visit to Moniya fire incident scene in Ibadan, Oyo State.

Recovered Abacha loot keeps giving... Continued from page 1

money was recovered from the Abacha family by Abdulsalami Abubakar in 1998; it amounted to $750 million. Two years after, the government of Switzerland returned $64 million to Nigeria, during the Olusegun Obasanjo civilian administration. In 2002, the Nigerian government made a deal with the Abacha family which led to the recovery of $1.2 billion from the stolen funds. A year after, $160 million was repatriated from Jersey, British Isles. Then, another $88 million was repatriated from the government of Switzerland. In 2 0 0 5 a n d 2 0 0 6 , Obasanjo recovered $461 million and $44 million, respectively, from Switzerland. Abacha was also generous to the Goodluck Jonathan administration which recovered $227 million from Liechtenstein in 2014. President Muhammadu Buhari in 2018 repatriated $322 million from Switzerland from the stolen Abacha fund and has this month collected back $311 million from the United States and the British dependency of Jersey. Both recoveries were negotiated by Jonathan. Recently, the Government of Jersey, the Federal Republic of Nigeria and the Government of the United States of America entered into tripartite Asset Recovery Agreement to repatriate over $308 million forfeited assets to the Nigerian government. The tripartite agreement represents a major watershed in international cooperation in asset re-

covery and repatriation. The Nigerian government sais projects on which the funds will be expended will be administered by its Sovereign Investment Authority (NSIA) and independently audited. News reports say there is a fresh $319 million in UK and France, courtesy of Abacha, touted by many as Nigeria’s “Sweetheart caring for the country from the grave”. Abacha’s ‘gift’ to Nigeria seems unending and asides fear of ‘relooting’, Nigerians consider the latest recoveries to be a relief for the country which relies on oil exports for around 90 percent of its revenue but is now faced with grimmer realities following record oil price slump and demand plunge due to COVID-19. Nigeria’s Excess Crude Account (ECA), which was meant to serve the purpose of providing liquidity for government whenever downturns in oil price affected revenue realisation, has fallen to a record low of around $71 million. The buffer grew from $5.1 billion to over $20 billion between 2005 and 2009, but today is less than 1 percent of its 2009 balance. According to the International Monetary Fund (IMF) in 2019, the ECA is the world’s second leastgoverned fund. Concerns about transparency in the use of the recovered funds have been on the front burner of local and foreign media. President Buhari’s office said the release of the latest fund from the US was a testament to the trust the US, UK and other jurisdictions have found in

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his leadership. “For years many countries deemed successive Nigerian administrations as too corrupt, too venal and too likely to squander and re-steal the stolen monies – so they did not return the funds,” the presidency said. But large as the Abacha loot has proved to be so far, it’s only a tip of the iceberg of illicit funds from Nigeria, denying the country access to its domestic resources which could have been used to bridge the gaping infrastructural gap and deliver economic prosperity to its citizens. According to Africa Group Initiative at Brookings, Africa exported an aggregate $1.3 trillion of illicit financial flows, with resource-exporting countries such as Nigeria more prone to exporting large amounts of illicit financial flows. The reason for this is not far-fetched. First, large exports of oil provide more opportunities for trade mis-invoicing. Also, the line between private and public interests in the oil industry is often blurred, as government officials often own stakes in stateowned companies. Illicit financial flows saw a notable increase in the 2000s in correspondence to increases in trade from Africa. Despite one noticeable dip in the 2000s, which occurred during the 2008 financial crisis, aggregate illicit financial flows have remained relatively high, reaching a peak of $114.5 billion in 2012. South Africa, the Democratic Republic of the Congo, Ethiopia and Nigeria are the top four emitters of illicit flows on the continent, emitting over 50 percent of total illicit financial flows from Africa. @Businessdayng

Repatriating funds that have been smuggled out can be an important tool to solidify the domestic resource base of African countries. In Nigeria, while some successes have been recorded in repatriating stolen funds back into the country, the process has, however, been long and tedious. While stopping illicit outflows of capital before they happen is important, repatriating such illicit financial flows require cooperation at the global level. Interestingly, the past decade has seen increased effort from the global community toward reducing illicit financial flows. Such efforts range from creating initiatives to curb money laundering to improving the sharing of tax information across countries. It has also been established that higher real Gross Domestic Product is often associated with higher illicit financial flows due to the increased opportunities to channel illicit resources abroad generated by higher economic activity, suggesting a need for increased diligence as countries grow. Also higher taxes and higher inflation lead to higher illicit financial outflows, suggesting that firms seek out relatively more stable or favourable fiscal environments for their funds. While repatriated funds should be channelled to improve infrastructure in a bid to enhance economic growth, analysts says safeguards must, however, be put in place to ensure that these funds are not laundered again, adding that this should be accompanied by checks designed to deter illicit financial outflows in the first place.

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BUSINESS DAY Tuesday 12 May 2020 www.businessday.ng

Adetola Nola: Setting new heights in real estate development MICHAEL ANI

ix years ago, Veritasi homes was a one-employee company but has evolved over time, becoming a household name with over 20,000 real estate consultants, 2000 realtors and more than 20 full time staff in 2020. Led by Adetola Nola, chief executive officer of Veritasi Homes and Properties Limited, the firm’s success has been attributed to a team of young, resilient men and women with vast experience in the real estate sector. Nola can be described as an outstanding entrepreneur who has passed through thick and thin in taking his firm through a positive growth trajectory, one that has made the company attain an enviable position, and a standard for other players in the industry. In 2019, Nola was named in the Forbes 30 Under 30 list, where he joined 29 other exceptional entrepreneurs in the business category. The announcement was made at the Houghton hotel in Johannesburg to commemorate the annual Forbes Africa Under 30 Meet-Up in association with Kingdom Business Network (KBN). Only four Nigerians making impact in different industries were named in the business category. In 2015, he founded Veritasi Homes and Properties Limited, a real estate firm that provides marketing, advisory and development services across the entire real estate value chain in Nigeria. The firm has a special interest in property development. Before founding Veritasi homes, the 30-year old CEO, started various companies that did not see limelight. One of such firms was a leather company, which he named Noha&Nola. He also established Pineapples retail stores, a fashion retail company among others. However, the failures of these firms did not deter him. He moved to work as an agent in grenadines homes with his brother who introduced him to real estate. Nola in an emailed response to BusinessDay questions recounted that at some point he felt like he wanted to give more clients greater value for their money. He wanted to build cheaper houses delivered in a short period of time without compromising quality. That was the motivation that gave birth to Veritasi which today has become a household name for those seeking real estate services. Since it started in 2015, Veritasi now has no fewer than six estates to its name. Among no-

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table achievements by the firm is the Camberwall project, which is aimed at reducing housing deficit for Nigerians. The firm is building 500 units of apartments across Lagos state and Abuja, and has started a first phase that entails building 100 units in Abijo area of Lagos. According to the firm this first phase should be delivered by October/November this year. Nola said the firm is delivering the project without a single loan from a bank, but with the help of private investors who have believed in the company’s projects over the years. “We have made sure to get mortgages with good interest for our clients. Either through the federal mortgage or private mortgage to ease payment while delivering early. Trust us to deliver on our promises,” Nola said. As a business, due to the harsh operating environment, crossing a five-year mark in Africa’s largest economy is almost difficult especially in the real estate sector, that is plagued with a lot of challenges from lack of funds, to a weak consumer wallet and widening infrastructural gap. The sector has continued

on a negative growth for three quarters since Q2 2019, despite the country succeeding to limp out of the economic recession of 2016. It is quite alarming, analysts say, for a sector as such, which is supposed to enjoy the benefit of a large market from a population of 200 million people. The answer to this lies in a burgeoning population faced with a falling per capita income that has culminated into escalating Nigeria’s housing crisis. Data by Graeme Blaque Group, a Lagos-based advisory firm, showed that of the 69.54 million who are gainfully employed, only 5 million earn a salary of N3 million and above per year, to give them the leverage to own an affordable home in the country. These are those who fall in the country’s working or middle class let alone those at the lowest end of the pyramid. The crisis could be more devastating with the coronavirus pandemic, which has ravaged the entire globe and has forced countries to initiate lockdowns, as one of the numerous measures aimed at curtailing the spread. The real estate and construction sectors are expected

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Since it started in 2015, Veritasi now has no fewer than six estates to its name. Among notable achievements by the firm is the Camberwall project, which is aimed at reducing housing deficit for Nigerians

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We have made sure to get mortgages with good interest for our clients. Either through the federal mortgage or private mortgage to ease payment while delivering early to be among the biggest losers following these lockdowns. For young players like Nola, who have invested hugely in technology, the pandemic is only a way to leverage more on the use of tech. According to him, since the pandemic started, the firm has continued to use technology to stay n business, digitizing all its processes from inspection to payment down to document preparation. “On several occasions, we have had meetings on google hangouts and zoom. I think we have the best response to this pandemic, and it’s aided by technology,” he said. For Veritasi, Nola said, taking a clue from the 2016 scenario, the firm has hedged against any form of currency devaluation by stocking inventory to prepare ahead of any impending crisis.

“One sweet thing about real estate is sometimes we are not greatly affected by the effects of recession. If you’re financially smart, you will manage to stay afloat. When recession happens, the country is broke. Asset managers advise investors to buy more real estate than fixed income, which most of the time is wise for investors,” he said. While reacting to the increased housing crisis, Nola noted that solving the housing deficit in Nigeria shouldn’t be the job of the government alone, rather, a joint effort. He explained that there should be Joint Ventures between developers and Government. Let the government provide cheaper capital. He noted that when a developer gets very expensive capital from commercial banks, the high cost of capital will be transferred to the client when paying. In addition, good titled cheap lands should also be made accessible by the government. “When there are less strict policies given to developers, and foreign funding allowed to come in easily, then you will see us close the gap on the housing deficit,” Nola said. The young.CEO noted that apart from loans from commercial banks, which are very expensive, there are also foreign funds that are cheaper and are given by more patient investors. In addition to that, he said private investors can bring in cash by way of private equity, to be part of a project, noting that his company has paid every single one of its investors till date without one single default. He advised developers and real estate players not to venture into the business just to make money as there are other ways to make money. “Real estate is a stressful way to just make money, he said. You have to be consistent, persistent, dogged, and determined to make a mark in the real estate space. Look beyond the ordinary but it’s doable,” Nola noted. As an innovative entrepreneur, Nola does not only have a footprint in real estate alone, but also in tourism. He founded Nola travels and tours limited, and he is also making huge investments in Agric and commodities, also currently eyeing the financial sector space. As an entrepreneur who has an eye for growth, Nola said the company is open for higher growth whether organically or inorganically as long it is sustainable. “Either we are the acquirer or the target company. We will negotiate when the time and condition is right . We also have the intention of taking Veritasi public very soon,” he said

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