BusinessDay 13 Aug 2019

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L-R: Uche Unigwe, sales director, Nigerian Breweries plc; King Sunny Ade, music legend, and Emmanuel Oriakhi, marketing director, Nigerian Breweries plc, after King’s Sunny Ade’s performance at Ariya Repete 2019 Final in Lagos as Goldberg unveiled its new look.

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Local production of passports fails to take off 5 weeks after FG’s directive …as booklet scarcity persists …NIS accused of playing politics, denies allegation

How FG’s inaction deepens Nigeria’s F declining economic fortunes

IFEOMA OKEKE & STELLA ENENCHE, Abuja

or thousands of Nigerians currently experiencing difficulty in their attempt to acquire international passport, their frustration is far from over as more than five weeks after President Muhammadu Buhari

Investors flee Nigeria, move out $1.38bn FDI in 2018 alone

LOLADE AKINMURELE

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t’s easier finding a needle in a haystack than signs today that Nigeria will get its act together and fulfil a longtouted potential that has seemed farther away than ever in the last half a decade.

Nothing is working, according

to the country’s most senior business leaders, who cite contracting GDP per capita, collapsing infrastructure from power to roads, falling consumer demand and rising insecurity.

These factors are deterring local and foreign investment, with Nigeria lagging smaller African countries in attracting investment.

While Nigeria’s relatively low FDI inflow compared to peers in the last three years has been well

ANALYSIS reported, a key dimension to the United Nations Conference on Trade and Development (UNCTAD) report has managed to fly

under the radar – FDI outflows.

FDI outflows from Nigeria stood at $1.38 billion in 2018, the second highest since 2005. The highest outflows came in 2015, when $1.4 billion of FDI found its way out of the country. What this implies is that new investors are

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Obaseki in surprise visit to Oshiomhole, mum

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do State governor, Godwin Obaseki, paid a surprise visit on Monday to his predecessor and National Chairman of the ruling All Progressives Congress, Adams Oshiomhole.

Giovernor Obaseki, used the

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NEWS Obaseki in surprise visit to Oshiomhole, mum Continued from page 1 stock-in-trade.” opportunity of the Eid-elKabir holidays to greet Oshiomhole, who at the time was at his Iyamho country home with his mother, Hajia Aishetu Oshiomhole.

The governor’s Special Adviser on Media and Communications, Crusoe Osagie, issued a statement in which he said the visit had punctured the claim that Obaseki and Oshiomhole were at loggerheads.

He said, “The notion that these two men are adversaries is being propagated by morally and financially insolvent people seeking to profit off of the challenges they have been working so hard to foment.

You cannot blame such people really. Their talents and abilities are severely limited, so it is in their collective interest to stoke tension and drive division, but I can tell you that they have already failed.

“It is not in their interests for Edo State to peacefully progress, so they will try to twist the purpose of this visit. This is what they’ve always done and it’s their

Osagie re-echoed Obaseki’s promise not to share the state funds among the political elite but to spend the same on developmental projects that would benefit the masses.

According to the statement, when asked whether Obaseki’s visit to Oshiomhole meant that the governor would yield to the demand of the National Assembly on the composition of the Edo State House of Assembly’s leadership, Osagie said he could not comment on the matter as it was already in court.

He said, “I cannot speak on this matter as it is sub judice. But I think the whole world knows that the Edo State House of Assembly has already been inaugurated. No person or group of persons or institution other than the judiciary can order a state governor to do anything on a matter that is presently before courts of competent jurisdiction.

“We are a nation of laws and by the special grace of God, we will all be alive to witness the law run its full course.”

El-Zakzaky, wife seek medical attention in India INNOCENT ODOH, Abuja

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eader of the Islamic Movement in Nigeria (IMN), otherwise called Shiites, Sheikh Ibrahim El-Zakzaky, and his wife on Monday departed for India to seek medical attention.

The couple boarded an aircraft at the Nnamdi Azikiwe International Airport, Abuja, Abdulrahaman Abubakar, chairman of the Free Zakzaky Committee, confirmed to BusinessDay on Monday.

“The Sheikh and his wife are about to board an aircraft for their trip to India,” Abubakar said, stressing that the duration of the stay of the IMN leader and his wife would only be

determined by their doctors in India. The couple would be attended to at Medanta Hospital, New Delhi, India.

Zakzaky, who has been detained by the Department of State Service (DSS) for about four years, was released following an order of the Kaduna State High Court granting him and his wife leave to undergo treatment at an Indian hospital of their choice.

The IMN leader, according sources, is suffering from partial stroke and other complications as a result of his prolonged incarceration allegedly without proper medical attention in the country.

•Continues online at www.businessday.ng

2023 Presidency: North must concede power to South - Shehu Sani

… tips South-West for supporting Buhari’s emergence ABDULWAHEED OLAYINKA ADUBI, Kaduna

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enator that represented Kaduna Central Senatorial District of Kaduna State in the eighth Senate, Shehu Sani, says for fairness, justice and for the unity of Nigeria, the North must concede power to the southern part of the country come 2023.

The senator, who threw his weight behind the South West producing the next President, said it would be unfair for a region who had laboured in the past for the emergence of the present government to be schemed out of the rotational agreement.

This is as he called on Pres-

ident Muhammadu Buhari to caution any northerner eyeing the Presidency, saying it would amount to ingratitude on the part of the North not to support the South West considering the support from that region that helped in uprooting the People’s Democratic Party (PDP) in 2015.

It would be recalled that recently Kaduna State governor, Nasir Ahmad el-Rufai, was quoted to have said the informal zonal arrangement should be discontinued, describing it as a barrier to political equality.

•Continues online at www.businessday.ng www.businessday.ng

L-R: Brian Manuwuike, chief product officer, NiBox; Abayomi Olajide, accountant, NiBox; Esaie Diei, CEO, EFInA; Herman Mcdonald, sales manager, EFInA, and George Manuwuike, CEO, NiBox, at a courtesy visit by Nibox to EFInA office in Lagos

Africa’s real estate market upbeat in H1’19 with over $500m transactions …as Nigerian investors close deals, anticipate increased activities in H2’19 CHUKA UROKO

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frican real estate market never had it so good in the previous 24 months as it did in the first six months of 2019 when the market recorded over half a billion dollars in 10 significant transactions across multiple jurisdictions and sectors.

In Nigeria, after 12 straight quarters of negative growth that ended in the first quarter of 2019, the market has started waking up with investors closing deals and hoping to record marginal increase in activities in the second half of this year.

The last six months of the year have been the most promising period in the market and this was reflected in the high number of calls and inspections which the investors reveal they have been receiving for

both residential and commercial properties.

“We have seen movements in the market; we may not see what we had in 2008 nor the boom days of 2011 to 2013, but what we see happening now are increased activities and deal closures,” MKO Balogun, CEO, PFI Global, confirmed to BusinessDay on phone.

“Though the economy is passing through a slowdown, I don’t see that affecting real estate, unless something crazy happens which we don’t expect t,” Balogun said.

The growth and opportunity displayed by a diverse spread of international funds, Development Finance Institutions (DFIs), banks, institutional investors and others are evidence that despite apparent indifference to African opportunities in SA boardrooms, the continent’s real estate sector has evolved and become increasingly more

liquid and provides value in key nodes and sectors.

Some of the most high-profile deals include well-known listed funds and global investors including Growthpoint Investec African Properties Investment Fund (GIAPF), Grit Real Estate Income Group, WeWork, Centum Real Estate, Nedbank, Standard Bank, the IFC and the UK’s CDC. Due to subdued growth potential and earnings locally, Central and Eastern Europe become increasingly popular for South Africa’s property sector, but analysts are asking if such funds should not be investing closer to home.

Kfir Rusin, the host of Africa Property Investment (API) Summit, the most significant annual gathering of capital investors in African real estate, is particularly concerned about this growing trend.

API, already in its 10th edi-

tion, will be taking place on October 2 & 3, 2019 in Johannesburg. Its stakeholders have been more active in the first half of 2019 than in the previous 24 months.

“For investors and developers looking for data and partners experienced in African development or looking to sell prime assets, there are men and women responsible for structuring and executing these mega deals who will be at this year’s conference,” Rusin disclosed.

These include GIAPF’s managing director, Thomas Reilly; Grit’s CEO, Bronwyn Corbett; multiple senior investment officers from the IFC; Standard Bank’s head of Africa real estate, Niyi Adeleye; CDC’s Illaria Benucci; Centum’s RE MD, Samuel Kariuki, and many more in attendance.

•Continues online at www.businessday.ng

Crude oil theft remains bottleneck for Nigeria’s oil, gas companies STEPHEN ONYEKWELU

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igeria is Africa’s biggest oil producer but loses a significant portion of its crude oil the moment it is put in pipelines for export.

Oil theft, also known as illegal bunkering and pipeline vandalism, has resulted in significant loss of the nation’s revenue as well as the revenue and cash flow of indigenous companies who, like the Federal Government, also have huge debts to service.

Every international oil company (IOC) in Nigeria has been affected, one way or another, by the activities of oil thieves who engage in illegal bunkering and local crude oil refining operations, Esimaje

…IOCs, FG turn to Pipeline and Facilities Surveillance Programme Brikinn, general manager, policy, government and public affairs, Chevron Nigeria Ltd, said at a panel discussion on ‘Innovative Strategies – Combating Crude Oil Theft & Pipeline Vandalism’ at the Nigerian Oil and Gas conference and exhibition (NOG) in Abuja in July 2018.

“Oil theft remains an issue for the indigenous producers.

It is one of the biggest challenges threatening business profitability and continuity in the upstream operating environment,” Victor Okoronkwo, GMD of Aiteo Eastern E&P Ltd, told BusinessDay in an exclusive interview.

Deep in the labyrinths of oil-rich Niger Delta’s creeks, thieves tap pipelines and

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siphon the crude via rubber hoses up to 2km long into barrels aboard small crafts.

They then sail alongside larger vessels, allowing the contraband to be pumped ship-to-ship into oil tankers bound for export, usually to Asia, mixed imperceptibly in a ratio as small as 10 percent with the legitimate product.

A report commissioned by the Nigerian Natural Resource Charter (NNRC) shows that Nigeria lost about N3.8trn in 2016 (over 50 percent of the country’s budget for that year) and N995bn in 2017 due to crude theft.

Ten months ago, two oil and gas pipelines exploded in Nigeria’s south-eastern @Businessdayng

state of Abia within 72 hours and claimed at least 60 lives.

The pipeline belonged to the state-owned oil company, Nigerian National Petroleum Corporation (NNPC). Villagers were believed to have been skimming oil from a leak in the pipeline when the explosion occurred and ignited a massive fire.

In addition to these financial losses oil companies and the Federal Government suffer from these thefts, there is environmental degradation due to the pipeline leakages and proliferation of illegal crude refineries.

•Continues online at www.businessday.ng

Tuesday 13 August 2019

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news

Goldberg Lager pulls off stunning finale to Ariya Repete 2019

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oldberg Lager, a beer brand, has successfully capped off the 2019 edition of its proprietary music talent hunt, Ariya Repete.

After three months of exciting musical performances, Ariya Repete 2019 finally came to an exciting conclusion Friday night, August 9. The finale was hosted at the car park of the Ikeja City Mall and it was packed full with thousands of music lovers who turned out en-masse to witness the event.

All nine finalists treated the audience to some spectacular performances as they showed why they have gotten this far in the competition. It wasn’t an easy call for the judges who had the near-impossible task of selecting thethreefinaliststowintheirshare of the N20 million grand prize.

Hostingthenightwastheeverhilarious Odunlade Akinlade as well as Naija Ninja, Sound Sultan, and Energy god, Do2un. These hosts as well as the star-studded judges including, Puffy Tee, Yinka Davis,andKingSunnyAde,added further star power to the exciting event.

King Sunny Ade graced the stage and delivered amazing performances fitting of the occasion.

However, the night belonged to the three amazing talents who etched their names in Ariya Repete history.

Allcontestantshadtwoperformances to impress the judges, as they all performed original songs.

At the end of the night, Suliamon Adeyemi, Yomi Johnson, and Mayowa Alayo emerged victorious in the Fuji, Juju, and Afro-pop category.

The winners could not hold their joy as the trio got very emotional when receiving their prizes.

Mayowa Alayo, who has had a topsy turvy run to the final, particularly after dealing with the tragic death of his infantchild who passed away on the day of his audition, was clearly elated, saying, “I still think I’m dreaming, I can’t believe I won, I’m so grateful to everyone who has supported me and Goldberg Lager, Thank you!”.

Speaking after the final showpiece, Goldberg Lager, Brand Manager, Olufunmilayo Ogunbodede remarked on the occasion, saying, “It’s been a great show, and I’m glad to see these talented acts emerge as winners.

I believe, however, that everyone who has come on the show is a winner, and we are proud of the talents we have uncovered over the course of these 3 months. We thank the consumers for always coming out and cheering the contestants, and we can’t wait to delight our consumers with more initiatives such as these.”

Climaxing the night was a stunning performance by Goldberg brand ambassador and Yoruba Hip-hop icon, Olamide, who performed on stage, much to the delight of all in attendance.

This was followed by performances by Fuji duo, Pasuma and Taye Currency.

The night provided a perfect culmination to 3 months of wonderful musical performances across 8 cities. It was a fitting night, filled with sensation performances and fans are eagerly anticipating next year’s edition.

Regulators move against underage gaming in Nigeria JOSHUA BASSEY

… as industry employs over 50,000 in Lagos alone

mid rapid expansion of the gaming industry in Nigeria, the Lagos State government is seen taking steps to check the involvement of the underage (below 18 years) in any form of gaming.

As a result, the regulators have barred licensed game operators from opening betting shops near schools or places with large congregations of persons below 18 years.

The growing industr y is said to be currently employing over 50,000 persons in Lagos,

with the potential for more as its keeps expanding and attracting new investors and operators.

Industry watchers believe that the expansion of gaming in the last 10 years is driven by a number of factors, including internet/mobile penetration, harsh economic environment, high unemployment rate and the swelling rank of football fans in Nigeria. While the industry is nationally regulated by the National Lottery Regulatory Commission (NLRC), it is, however, specifically regulated

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in Lagos by the Lagos State Lotteries Board. The two agencies have had cause to disagree whose jurisdiction it is to regulate gaming, and still awaiting the verdict of the Supreme Court on the issue.

Anibaba Seun, general manager of the Lagos State Lotteries Board, who spoke with BusinessDay, said the board was empowered to protect the underage from being exploited trough gaming, hence the decision to bar betting shops near schools.

According to Anibaba, other

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measures are also being taken to discourage adults becoming addicted to betting, saying “there must be a point to apply a break when you discover you’re becoming too addicted to gaming.”

Anibaba explained that as part of the measures, the board was compelling its licensed operators to do background checks on gamers, including date of birth, sanctions as provided in the law were also being meted to operators who flout the rules in this regard.

The board has had cause

@Businessdayng

to intervene in cases between operators and gamers users and apply sanctions where necessary, he said.

Checks show that gaming operators are deploying technology for aggressive marketing and payment platforms as well as seeking partnership with some foreign operators who crave for a share of the expanding Nigerian market.

According to industr y sources, Nigerians are sports loving people and it has become easy to stake cash on what they have passionate for.

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NEWS

Respite for consumers as firm introduces Nigeria’s first electronic device protection plan

IoD reiterate commitment to deepen public, private sector policy interactions SEYI JOHN SALAU

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n creating an enabling environmentwherepolicymaking and implementation will be participatory with the involvement of all stakeholders in the business community, the Institute of Directors (IoD) Nigeria has reiterated its readiness to collaborate with the government to reduce the tendencyofpolicyimpositionfrom the top on businesses in Nigeria.

“The IoD, during my tenure, will work to strengthen public/ private sector policy interactions in the broader national interest,” Chris Olufunmilola Okunowo, presidentandchairmanoftheIoD, said,statingthiswillhelptoconnect thenexusbetweenthegovernment and other professional bodies.

Okunowo stated this at the investiture of the 16th president and chairman of governing council of the institute held recently in Lagos.

According to Okunowo, there are divergence of views and opinion between government and nongovernmental organisations on policy decisions and implementation,especiallyconcerningtheprocess of making and implementing such programmes and activities.

“We have noticed that in Nigeria, the process of policy formulation and implementation has essentially consigned to the governmentanditsagencies.Whereas inprinciple,professionalorganisationssuchastheIoDNigeriaaswell as representatives of the private sector and the civil society groups

shouldplaymajorroles,”Okunowo said, stating that there is a missing link between the government and business as well as the public in respect of policy formulation and implementation.

Speaking further on his plans for the institute, Okunowo opined that institutions were the long shadows of those who run them, which is why IoD Nigeria has recognised the importance of up scaling,expandinganddeepening the skills and minds of those that run Nigeria’s top organisations.

“We shall strengthen corporate governance standards and practices as well as ethical values in the governing council, exco and management as well as in our policy and standing committees,” he stated.

He further stated that his administration would embark on continual institutional rebuilding, promotionanddeepeningofgood governance in all its engagements, sayingparticularlyattentionwould be given to actively engage with government on issues of public policy formulation and implementation.

Uche Messiah Olowu, president, Chartered Institute of Bankers (CIBN), while speaking on the essence of collaborative initiative among business membership organisations (BMOs) in Nigeria, said enthronement of ethics and goodgovernancewasthepanacea to improve and deepen engagement across the value-chain of the industry.

Jumoke Akiyode-Lawanson

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martphone and electronic gadget users in Nigeria now have the opportunity to secure a protection plan against damage, malfunctions and breakdown of devices and home appliances, as Tanta Secure Limited, an indigenous device protection company has introduced a plan designed to protect smartphones, tablets, laptops and other home appliances.

As today’s consumers are getting more sophisticated with technology gadgets, Tanta Secure says there is a need to address the gap in after sales care and repairs of damaged devices in the country.

Sam Igwe Oko, CEO of Tanta Secure, says, “Technology is on a continuous trend of advancement in today’s advancing world. Smartphones, iPads, tablets, appliances, electronics and other gadgets have become an essential and crucial part of today’s everyday lifestyle.

On the other hand, accidents, drops, spill, malfunctions and

everyday mishaps are completely unavoidable, even to the most careful users. 99 percent of device owners have experienced device breakdown, malfunctions or accidental damages.

29 percent have abandoned their devices due to expensive repair or replacement part costs, 31 percent are still using their broken device, in the current defective condition and 40 percent repaired their broken device(s) at a ridiculous price.

“We know that accidents or unexpected damages are unavoidable and could happen at any time, we know how important these items are to end users.

That is why we have designed this solution having in mind the eventualities that might occur.

Ours is to ensure that the end users are protected by assisting them to fix their devices.”

Unlike the conventional insurance popular in the Nigerian market place, Tanta Secure solution offers users a money back guarantee if protected devices do not become damaged over a period of time.

With the shortage of quali-

fied technicians and original equipment manufacturers (OEM) parts in the open markets, end users most times have fake parts fixed for them thereby affecting the durability of these appliances.

John Mark Ossai, vice chairman of Tanta Secure, says, “There are over 4000 unlicensed technicians all over Lagos. Repairing your item with an unlicensed technician, whom you cannot identify by requesting to see their license before working with them, is a major risk and could reduce the life span of your item(s). The target of an unlicensed technician is to get your device working at all cost, ignoring important technical procedures for their financial benefits. But in the tech world, each component relies on other components to function properly. We ensure that qualified technicians handle your devices.”

Speaking on the solution, Abraham Tanta, the executive chairman, Tanta Secure Limited, states, “We have looked at the market and we have come to understand the wastage in Nigerian

mobility space. Subscribers find it hard to get original equipment manufactures’ (OEM) parts and this leads to frustration on the part of the users, which leads in dumping of these products.

We have worked out a synergy between us, manufacturers and certified technicians that would take care of these devices at the convenience of the subscribers.”

Tanta Secure’s solution is to have devices and/or gadgets maintained and repaired by a licensed technician, well equipped with all requirements and knowledge to get your defective device working again in all perfectness.

The company has designed various plans for each segment of the society such as corporate plans, which captures the need of corporate establishments where such appliances like laptops, printers, PBX systems and other office appliances would be taken care of with periodic maintenance. Others, such as the individual plan, family plan and student plan take care of this segment of people according to their needs.

Capacity building, ICT solutions top requirements for effective educational assessment in Africa Kelechi Ewuzie

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eading educationists, government officials and members of Association for Educational Assessment in Africa (AEAA) have identified capacity building programmes and adopting various ICT-based solutions as requirements to boost innovative approaches in examination bodies operations and assessment practices.

They observe that to curb examination malpractices, ICTs tools are indispensable, adding that ICT-based solutions also promote meaningful teaching and learning, enhance integrity and efficiency.

Omaze Anthony Afemikhe said innovation should follow a process that should be understood by the agency aspiring for its implementation and the people to drive the innovation must be trained.

Afemikhe in his keynote address ‘Innovations in Teaching and Learning Oriented Practice at the 37th Conference of the AEAA in Abuja proposed that effective assessment method could be used to improve learning.

Sonny Echono, permanent secretary, Federal Ministry of Education, said Africa could not afford to be left behind in educational innovations, adding that AEAA was playing a pivotal role in educational development in Africa.

Echono observed that there was a need for governments to re-appraise the rela-

tionship between education and national development in the light of the widespread poverty on the continent.

Is-haq Olarewaju Oloyede, registrar, JAMB, in his keynote speech, ‘Innovation in Educational Assessment: A Case Study of Joint Admissions and Matriculation Board (JAMB) of Nigeria, stated that the purpose of innovation was to enhance efficiency and that everyone must not be satisfied with the status quo.

According to Oloyede, “The transition of JAMB from paper and pencil test to Computer Based Test (CBT) was to achieve more efficiency and to counter the scourge of examination malpractices.”

He stated that biometrics, Close Circuit Television (CCTV) in centres and central admission processing system were some of the devices being employed by JAMB to curb examination malpractices.

On his part, RedwoodSawyerr, urged examination bodies, administrators and assessment professionals on the need to be aware of the devices and devise new ways to counter them.

He also recommended that educators must review the ways of teaching and assessment to counter the scourge of examination malpractices.

At the end of the weeklong conference, stakeholders opined that innovations in assessment and education should be driven by research findings.

L-R: Michael Olawale-Cole, past president, Nigerian-British Chamber of Commerce (NBCC); Kayode Falowo, president, NBCC; Babajide Sanwo-Olu, Lagos State governor; Alan Davies, deputy president, NBCC, and Bisi Adeyemi, vice president, NBCC, at a courtesy visit to the governor by the Chamber at Lagos House, Alausa, Ikeja, Lagos

Resolution of issues created by third parties in Edo on course – Obaseki ... says no fundamental issues with predecessor, Oshiomhole ...names civil service training centre after Odigie-Oyegun

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overnor Godwin Obaseki of Edo State says he has met with his predecessor, Adams Oshiomhole and that efforts are being made to resolve issues created by third parties in the state, stressing that there are no fundamental issues between them.

The governor said this in his address during a mass at the St. Paul Catholic Church, Benin City, to mark the 80th birthday of the first executive governor of Edo State, John Odigie-Oyegun, on Monday.

According to Obaseki, “I thank you very much for the remarkable homily. I listened very attentively and I have taken every word in your remark to heart and very seriously.

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I want to assure you that we are in pursuit of peace and we will have peace in Edo State.

“We have met – me and my predecessor in office – and fortunately, we do not have any fundamental issues. And because we do not have any fundamental issues, I believe that whatever third parties are trying to propagate I am sure we can talk over it. I assure you that very soon things will return to normalcy in Edo State.”

He said the state government, in line with the spirit of Nigeria’s national anthem, would not forget the labour of past heroes, which he said, shall never be in vain.

“Today we are here to celebrate our own Chief Odigie-Oyegun. On

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behalf of the people and Government of Edo State, I want to congratulate you on your 80th birthday,” Obaseki said.

The governor announced that the state government has named the soon-to-be-completed Civil Service Training Centre after Chief Oyegun, for his contributions to the development of the state and the country at large.

“For your contributions and what you have done for our dear state, I have decided to name the public service academy, which is under construction, after you. We know your passion for public service; we know and acknowledge the contributions you made to public service in Nigeria. Therefore, we @Businessdayng

have decided to name this edifice, which will be completed within the next 60 days, by the grace of God, after you. President Muhammadu Buhari will come and commission the academy, with you standing beside him. It will be known as the John Odigie-Oyegun Institute for Public Administration.”

The Institute, according to the governor, is on “three floors and is made up of large training rooms that will host 220 people. Two halls hold 118 people each. There are seven training halls that will host 58 people each. There is a library, a sick bay, a cafeteria and 12 offices. This facility at any point in time can hold and train a minimum of 900 people.

It will be the largest facility for training public servants in Nigeria.”

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news Parents cautioned against contributing to extinction of indigenous languages Mercy Enoch, Asaba

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elta State Commissioner for Basic and Secondary Education, Patrick Ukah, weekend cautioned parents against contributing towards the extinction of indigenous languages in Nigeria.

Ukah appealed to them to teach their children and wards how to speak indigenous languages so as to sustain such languages and not allow them go into extinction.

Ukah spoke when members of Enuani Advancement Forum paid him a courtesy visit in his hometown, Okpanam in Delta State.

Ukah, who bemoaned the situation where present day children cannot speak their indigenous languages, put the blame squarely on parents who do not teach their children the languages.

He appealed to parents to teach their children indigenous languages with the same determination they use in teaching them English language so the children could speak the two

languages.

He decried the situation where parents cannot communicate with their children in indigenous languages in the presence of a visitor who the parents might not want to understand their discussion.

He turned to the members of Enuani Advancement Forum and urged them to develop an action plan on how they want to achieve their purpose, even as he promised to intervene to ensure that the ugly trend was reversed.

The chairman of the forum, Anthony Banye, a reverend father, in an address, stated that the group want Enuani language to not just be a spoken language but also a written language that children from Enuani area could study and grow in.

In the address read on his behalf by Christie Akako, the chairman noted that people find a sense of pride when they see their own language measuring up with other languages in terms of modern usage and so would naturally prefer their own language to others.

ARETTA study offers free drugs to Nigerian women living with breast cancer ANTHONIA OBOKOH

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igerian women living withbreastcancernow have the opportunity of receiving free Herceptin SC from ARETTA study.

A drug meant for patients newly diagnosedwithhormonereceptor positive (HER-2 positive) breast cancer.

In Nigeria, many women are diagnosed with these sub-types of breast cancer, out of the three sub-types, HER 2 positive is the most expensive to treat but ironically its outcome is always good if the right drugs are used.

Assessing Response to neoadjuvantTaxotereandTrastuzumab, (ARETTA) study is offering this courtesy of Roche Pharmaceutical, University of Chicago and other partners.

“The study will be conducted at University College Hospital Ibadan,LagosUniversityTeaching Hospital, Lagos State University

Teaching Hospital and Obafemi Awolowo University Teaching Hospital, Ile Ife. We will be willing to extend this study to other facilities across Nigeria for the benefit of Nigerian women,” said Atara Ntekim, the National principal investigator for ARETTA, an oncologist at the Department of Radiation Oncology, University College Hospital Ibadan.

Breast cancer is the most frequently diagnosed cancer in women and the leading cause of cancer death in Nigeria, with an estimated 26,310 new cases and 11,564 deaths in 2018 said World Health Organisation’s International Agency for Research on Cancer (IARC).

However, to treat HER2 positive breast cancer, oncologists usually recommend that patients with such caner are treated with modern targeted therapy known as Herceptin.

Meanwhile, one course of Herceptin costs about N309, 000

and in most cases a woman is expected to take 18 courses. In total, it could cost over N5, 562,000 for a woman to get treated from HER2 positive breast cancer.

“The study is open only to women who have newly diagnosed breast cancer that has not spread beyond the breast. Very important that women do not delaygettingdiagnosedandtreated,” said Olufunmilayo Olopade, a Nigerian oncologist, 2005 MacArthur Fellow, and professor at the University of Chicago Medicine, the leader of the study.

According to Olopade, this is the first time a study like this is happening in Nigeria, and we are delighted to provide this relatively expensive drug – Herceptin SC free of charge to eligible Nigerian women.

“We are doing the study because we want to be in solidarity with women in Nigeria. Nigeria needs to build the capacity of Cancer Specialists to treat cancer

in Nigeria, not in India or any country outside Nigeria,” she said.

Breast cancer incidence has been historically low in Nigeria; this is attributed to absence of organised screenings, poverty, poor treatment and access to cancer medicine. However, there is a need for intentional action to increase better cancer treatment in Nigeria and African countries.

ARETTA study was launched officiallyon29thJuly,2019atUCH, Ibadan.

“In 2015, it took us over 1year to raise N9million needed to purchase Herceptin for one 35year old indigent breast cancer patient who approached us for funding for her treatment. Today, through Olopade’s efforts, Nigerian women will get this same cancer medicine free. This is commendable.

I encourage women across the countrytokey-inandbenefitfrom this,” said Runcie Chidebe, executive director, project, Pink Blue.

‘Int’l Youth Day: We are equipping young people to actualise their dreams, contribute to devt’

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do State governor, Godwin Obaseki, says his administration is equipping young people with globally sought-after skills to enable them actualise their dreams and contribute to the development of the country.

Obaseki said this on the occasion of the celebration of the International Youth Day, marked on August 12, each year, by the United Nations and its sister organisations.

“As a government, we have prioritised youth development and advancement by setting up a specialised agency called EdoJobs, that has trained thousands of Edo youths on in-demand technology-oriented skills.

“We decided to institutionalise our response to the skills need of our youths because we are convinced about how talented, creative and resourceful Nigerian youths are.

“Through EdoJobs, we have sustained the execution of several youth-focused trainings and we are proud to say that Edo State is fast- becoming the technology hub of South-South Nigeria,” the governor said.

According to the United Nations, “The International Youth Day is celebrated to recognise

efforts of the world’s youth in enhancing global society. It also aims to promote ways to engage them in becoming more actively involved in making positive contributions to their communities.”

The UN defines the worlds’ youth as the age group between 15 and 24 years old, making up one-sixth of the human population. Many of these young men and women live in developing countries and their numbers are expected to rise steeply.

The global body adds: “The idea for International Youth Day was proposed in 1991 by young people who were gathered in Vienna, Austria, for the first session of the UN’s World Youth Forum.

“The forum recommended that an International Youth Day be declared, especially for fundraising and promotional purposes, to support the United Nations Youth Fund in partnership with youth organisations.

“In 1998 a resolution proclaiming August 12 as International Youth Day was adopted during the World Conference of Ministers Responsible for Youth.

That recommendation was later endorsed by the UN General Assembly in 1999. International Youth Day was first observed in 2000.”

CAC extends 50% reduction in cost of Business names windows by 3 days HARRISON EDEH, Abuja

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orporate Affairs Commission (CAC) has extended by three days, the 50 percent reduction in the registration fee for Business Names window, with effect from August 13, 2019.

A statement from the commission said it would now end on Friday, August 16, 2019.

The three-day extension, the commission explained, is to enable Micro, Small and Medium Enterprises (MSMEs)

that could not register their businesses during the promo because of the Sallah holidays to do so.

Registration of their businesses, the corporation said, will enable them own corporate accounts with banks, have access to loans, grants and other government interventions.

The statement enjoined members of the public to take advantage of the three-day extension to register their Business Names at the reduced cost of N5,000. www.businessday.ng

Fun seekers at the Millennium Park at the 2019 Eid-el-Kabir celebration in Abuja, yesterday. NAN

Minimum wage stalemate: FG, labour return to negotiation next week JOSHUA BASSEY

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he organised labour and governmentarereturning to the negotiation next week to resolve the impasse created by their disagreement on the consequential adjustment on the N30,000 new national minimum wage signed into law by President Muhammadu Buhari on April 18, this year, a labour source told BusinessDay on Monday.

Labour under the aegis of the Trade Union Side (TUS) of the Joint National Public Service Negotiating Council (JNPSNC), has consistently accused the government of working to derail negotiations that will result in consequential adjustment of salaries to reflect the N30,000 new wage.

The TUS led by Anchaver Simon, chairman, and Alade Lawal, secretary, had before

warned that the eight unions in the public services of the federal and36stategovernmentswould embark on an industrial action if by June 28, the government failed to make any headway with the negotiation to pay the minimum wage. A source told BusinessDay that the unions hadtobackdownontheirthreat to allow for continuous negotiation.

According to the TUS, since the committee set up early in June by the government to work out the consequential adjustment of the wage started meeting, “the government had been coming upwithstrangeproposals with the intent to scuttle the implementation of the N30,000 new wage.”

The labour leaders stated that the TUS had initially proposed that since the minimum wage was increased by

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66.66 percent (from N18,000 to N30,000), salaries for officers on grade levels 01-17 should be adjusted accordingly to maintain the relativity that exists in the salary structure in the public service, a position that the Federal Government has rejected, citing inability to pay, even after the TUS reviewed its demand to 30 percent for officers on grade levels 07-14 and 25 percent for those on grade levels 15-17.

Consequently, Richard Egbule, chairman, National Salaries, Income and Wages Commission (NSIWC), has blamed thedelayinthecommencement of the implementation of the new wage on labour.

Egbule, who spoke in Abuja on Monday, still insisted that the demand of the labour unions would raise the total wage bill too high and that was why government could not accept their proposed salary adjustments. @Businessdayng

“Labour is asking for consequential adjustment and government in its wisdom had made budgetary provision for anadjustmentofN10,000across board for those already earning above N30, 000 per month.

“However, the unions have refused this offer, saying that because the increase in minimum wage from 18,000 to N30, 000 was 66 per cent, therefore they want 66 percent increment across board.

“We told them that the minimum wage was not raised from N18, 000 to N30, 000 through percentage increase but as a result of consideration of economic factors including ability to pay. However, we said that if they want consequential adjustments in percentage terms, we will use a percentage that when appliedwillnotexceedwhathas beenprovidedforinthebudget,” Egbule said.

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Tuesday 13 August 2019

BUSINESS DAY

NEWS

No fundamental issues between Oshiomhole and I - Obaseki

IDRIS UMAR MOMOH & CHURCHILL OKORO, Benin

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do State governor, Godwin Obaseki, on Monday said there was no fundamental issues between him and the national chairman of the All Progressives Congress (APC), Adams Oshiomhole.

Obaseki made the remark at a church service to celebrate the 80th birthday of John Odigie-Oyegun, the immediate past national chairman of APC and the first executive governor of Edo State, in Benin City.

According to Obaseki, my predecessor and I have met, and fortunately and thank God, we do not have any fundamental issues between us.

“And because we do not have any fundamental issues, I believe therefore that whatever third parties have tried to propagate, I am sure we will talk over it. I assure you that very soon things will return to normalcy in Edo State,” he said.

The governor and his predecessor have been at each other’s throat over the proclamation of the 7th session of the Edo State House of Assembly.

Archbishop of the Catholic Archdiocese of Benin City,

Augustine Akubeze, had in his homily message urged the governor and his predecessor to do everything possible to put an end to their ongoing crisis.

The governor, however, announced the naming of the state-owned Civil Service Training Institute, Benin City, after the celebrant, John OdigieOyegun for his passion for public service.

Obaseki said the institution, to be commissioned by President Muhammadu Buhari, would be completed in the next two months.

“For your contributions you have made to our dear state, the government of Edo State has decided to name the public service academy, which is under construction, after you.

“We know your passion for public service, we know and acknowledge your contributions to public service in Nigeria, therefore we decided that this edifice, which will be completed within the next 60 days, and by the grace of God,” he said.

He said the public service academy would be the largest training institution or facility to train public servant in Nigeria.

Durbar: AbdulRazaq urges support for reforms, paradigm shift in Kwara TEMITAYO AYETOTO

… says won’t gratify self with public resources

wara State Governor AbdulRahman AbdulRazaq on Monday rallied the people behind his agenda for reforms and paradigm shift in governance, calling the 2019 election a referendum that saw people choosing development and prudence over waste and underdevelopment.

Speaking at the 2nd Annual Grand Durbar ceremony organised by the Ilorin Emirate Council, AbdulRazaq said the people’s resolve for a new dawn meant a need to eschew actions or inactions that had made development and growth difficult in the past.

The Governor also commended the Emir of Ilorin, Ibrahim Sulu-Gambari, and the Ilorin Emirate Council for the historical cultural event.

“We must embrace reforms which are often tough at the

beginning. We must make tough choices in our decision to move our state forward,” according to the Governor, who was represented by his Deputy, Kayode Alabi.

“I have made my personal decision along this line. I will not use public funds to enjoy or gratify myself at the expense of the people. Public resources will only be applied strictly to public projects and overheads approved and budgeted for.

We will not entertain excesses of any sort. With people’s interest as the guiding principle, we will do things differently and purposefully to get more impactful results.

“I appeal to this distinguished gathering of our people to unite behind this agenda for the progress of our community and generations yet unborn. Anything short of this will keep us moving in a circle and that would defeat the purpose

K

of our people standing in the sun to vote the way they did.”

AbdulRazaq reiterated his resolve to institutionalise the various cultural activities in the state to boost tourism and economic growth, including the Durbar which he called the heritage of Ilorin people and a testament to the bravery and valour of their forebears especially the royal lineage of Sheikh Alimi.

The Governor said prudent management of resources is necessary to drive growth.

He added: “Let me clarify this too. Kwara is immensely blessed with abundant natural and human resources, as the quality of attendance at this Durbar shows. Kwara is however not so rich in monetary terms. But that was not the reason for the slow development.

The problem was that the little resources Kwara had was not going into building sustainable

future. This is what we need to change, this is what we are changing, and that requires the support of all of you.”

The Emir thanked all the guests for their attendance and gave a chieftaincy title of Danmazani of Ilorin to the Durbar Committee Chairman, Engr Suleiman Yahaya Alapansanpa, FNSE. The Grand Durbar was attended by many prominent guests, sons and daughters of Ilorin from across the country and beyond. They included Senator Ibrahim Yahya Oloriegbe; Chief of Staff Alh Adisa Logun; Olusin of Isanl-Isin, Oba Solomon Oloyede; Alhaji Jani Ibrahim, Moshood Mustapha; Lukman Mustapha; Mallam Olaolu Ali (SAN); former Vice Chancellors of University of Ilorin, Professors Shuaib Oba Abdulraheem and Abduganiyu Ambali, and Mallam Soliu Mustapha.

Police to arraign soldier who allegedly raped Ondo Varsity student YOMI AYELESO, Akure

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ndo State Police Command says the soldier who was alleged of raping a female student of the Adekunle Ajasin University, AkungbaAkoko (AAUA) Ondo State, would be charged to court later this week.

The State Police Public Relations Officer (PPRO), Femi Joseph, who disclosed this, noted that police was currently assembling facts for the prosecution of the suspect.

Joseph said the military had last week Friday, handed over the suspect to the command and that he was already in the custody of the State Criminal Investigation and Intelligence Department (SCIID) awaiting arraignment.

“The military authority had handed the suspect to us and I can authoritatively confirm this to you. The suspect would be charged to court later this week.

“Before then, we would have assembled all our facts for diligent prosecution. We commend our sister agency for taking necessary steps which will serve as a deterrent to others who might

want to indulge in such heinous crime in the future,” he stated.

It would be recalled that the victim, said to be a 300-level student of the Department of Religious and African Studies of the university, was allegedly raped by some soldiers at a checkpoint in Ikare Akoko on Wednesday penultimate week.

The student was allegedly forced to alight from a commercial bus by one of the soldiers.

He allegedly dragged the victim into a cubicle at the back of checkpoint, where she was allegedly assaulted sexually.

The victim was said to be returning from the campus when the incident happened. It was earlier reported that the student was gang-raped but it was gathered that the investigation of the army revealed that only one of the soldiers committed the offence.

It was gathered that earlier before handing over of the case to the police, the suspect, who was identified as Lance Corporal Sunday Adelola, has been dismissed from the service by the army. www.businessday.ng

Sadique Abubakar, chief of the Air staff, briefing newsmen on the fight against insurgency in North East, at his visit to Air Force base in Yola.

NAN

Newly discovered Ebola treatments save 90% experimental cases Temitayo Ayetoto

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n a breakthrough, two newly discovered treatm e n t s h av e p rov e d highly effective in combating Ebola, raising hopes that the epidemic can be cured and ended. The therapies saved roughly 90 percent of the patients that received them early in the course of infection.

Scientists on Monday announced that the treatments work so well that they will now be administered to all patients in the Democratic Republic of Congo, a New York Times affirmed.

Many families in the epidemic zone, Congo specifically, have been hiding their sick or bringing them in near death, too late to save. The epidemic has infected about 2,800 known patients and has killed more than 1,800 of them, according to the World Health Organisation.

Cases of the Ebola virus disease in Nigeria broke out in 2014, representing the first outbreak of the disease in a West African country. It originated from Guinea.

The treatments, known as REGN-EB3 and mAb-114, are both monoclonal antibodies that are infused intravenous-

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ly into the blood and attach themselves to the outside of the virus, preventing it from invading the patient’s cells.

The two treatments were part of a four-treatment trial that has been run with about 700 patients since November.

They worked so well that a data-monitoring committee that met last Friday immediately recommended that the other two treatments, ZMapp and remdesivir, be stopped and that all patients be offered REGN-EB3 and mAb-114.

Among patients who were brought into treatment centres with low viral loads - which suggested that they @Businessdayng

had been infected only days before - only 6 percent of those who got REGN-EB3 died, and only 11 percent of those who got mAb-114 died, according to Dr. Anthony Fauci, director of the National Institute of Allergy and Infectious Diseases.

By contrast, 33 percent of those who received remdesivir, an antiviral drug, and 24 percent of those who got ZMapp, an older cocktail of monoclonal antibodies, died.

The difference in mortality rates between REGN-EB3 and mAb-114 was considered too small to be statistically significant, Fauci said.

Tuesday 13 August 2019

BUSINESS DAY

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Tuesday 13 August 2019

BUSINESS DAY

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Local dairy production: Is the nation ready?

STRATEGY & POLICY

MA JOHNSON

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s a nation, the solutions to our prevailing economic problems depend on how far we plan our tomorrow today and how best we evolve and practice the right policies.

Most policymakers are aware that no policy can succeed in a vacuum. For any policy to succeed, it must take into consideration the medium through which it is operating. The medium in this case is the business environment.

For any policy to work, the business environment must enhance production and productivity.

In Nigeria, one major factor which all our policies must seek to neutralize is the so-called “Nigerian factor.”

Besides being devoid of verbosity, any policy designed to achieve specific objectives must be well articulated and effectively implemented within an enabling business environment engendered by the government maintaining law and order and ensuring security of lives and properties. But when a policy is formulated only to strengthen the “Nigerian factor,” it hardly works. The “Nigerian factor” is an inelegant or improper way of getting things done.

When a policy is formulated only to “create jobs for the boys,” it is unlikely to work. The policy in question is about Nigeria’s dairy production. There are reports that the Central Bank of Nigeria (CBN) wants to promote local dairy projects. So the CBN Governor Godwin Emefiele, announced the restriction of foreign exchange to milk import-

ers in what some analysts refer to as a “speculatively ambitious” bid to boost the country’s dairy production. This, in addition to the items banned form forex, according to CBN, is to benefit local manufacturers. But industry experts are advising the CBN not to restrict forex to imported milk.

While manufacturers and other stakeholders are awaiting the fiscal policy on local dairy production from the federal government, the CBN Governor in his monetary policy statement was quoted as saying that “We are determined to make milk production in Nigeria a viable economic proposition.

If you need a loan to acquire land, do artificial insemination, grow grass, or even provide water, we will give it to you. We are getting to the end of the road of milk production in Nigeria.”

The understanding of this policy statement is that the CBN wants to support key players in the milk industry by assisting them to invest massively in backward integration. Good ambition but will the yet-to-be constituted Federal Executive Council endorse this policy?

Before fiscal policy decisions are set by the FEC on local dairy production, we need to get a clearer monetary policy direction from the CBN. Is the CBN banning milk importation and/or restricting accessibility to forex supply?

Which one out of the two is of importance to the CBN? It seems that under the new monetary policy, importers will not be allowed to get forex from both official and parallel markets to bring in milk into the country. As being speculated, milk importers are likely to be forced into ranching as the FG seeks ways to end herders-farmers conflict in some parts of the country.

Although Nigeria is rich in both agricultural, forest and mineral resources, these resources have not been sufficiently processed as significant sources of raw materials for industrial enterprises. That is why till this day,

manufacturers still depend on imports to a disturbing extent for their raw materials. You cannot blame manufacturers because survival is at the heart of their mission in business. In order to avoid interruption in the supply of raw materials and intermediate goods after the CBN restricted 41 items from forex, some manufacturers in the past 4 years invested more capital into large stocks of these items; an expensive burden.

Gone are the days when manufacturing firms will have their equipment in good working order, have available workers drawing their pay, have sufficient demand for the products and yet, stop production because of lack raw materials. Now the story is different as the demand for locally produced commodities have reduced because imported goods are cheaper in the market.

Besides, consumers’ purchasing power is low, electricity supply is insufficient, and unemployment rate is high with a double-digit inflation. All these are reasons why many firms in the manufacturing sector close their factories.

There is no doubt that excessive reliance on importation of raw materials in Nigeria has been a major problem facing the industry for decades following a decline in foreign exchange earnings from the sale of petroleum. As you read this article, the price of crude oil has dropped below the 2019 budget benchmark. So there is going to be more pressure on the country’s forex reserve.

In seeking other alternatives to meet domestic dairy production, we must not forget that the Raw Materials Research and Development Council (RMRDC) was established in 1987 to formulate and implement progressive policies on the local sourcing of raw materials.

With the establishment of RMRDC, no raw material that could be obtained locally was to be allowed to be imported beyond a grace period. But

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In order to avoid interruption in the supply of raw materials and intermediate goods after the CBN restricted 41 items from forex, some manufacturers in the past 4 years invested more capital into large stocks of these items; an expensive burden

the research and development (R&D) capability needed for the government import substitution policy to succeed in the area of raw materials research and processing has been lacking. Why? Paucity of research fellows as a result of brain drain, duplication of research efforts, and lack of patronage of locally made goods because they are expensive when compared with imported goods. These and many more are some of the reasons why every time Nigeria tries an import substitution policy, it has recorded little success.

With respect to dairy production in Nigeria, experts say that our local cows are not good enough for milk production. If the policy is to take effect immediately, industry experts are of the view that massive investment would have to be made for the importation of dairy cows for milk production. The implication is that the country will import cows good for milk production.

Who provides the forex, the CBN or the manufacturer?

In the light of these gaps, one wonders how far the local milk production policy can achieve its objective. Will the CBN be able to ensure that smugglers do not have a field day smuggling assorted milk into the country with attendant loss of revenue to the FG, capacity underutilization of manufacturers and massive loss of jobs coupled with its social consequences.

In order to make local milk production a viable business in the midst of poor business environment, the government must be open to suggestions of industry experts on how to chart permanent path to progress. The fact that the nation’s resources are meagre must be put into consideration in all we plan to do. This calls for creative, innovative, inventive and highly resourceful ways of solving our problems. Thank you!

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

Fostering an innovation culture with vision, context and purpose

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s innovation within organisations expected to be in response to external forces, or should an innovation culture be led from the front by business leaders?

Innovation and change – the two factors that are taking control of every aspect of business today.

In this unprecedented digital era, a commonly-heard phrase comes to mind: innovate or die. And this phrase is very relevant when we consider the correlation between innovation and its purpose.

With the importance placed on technology as the platform for innovation in an organizational context, a common pitfall is focusing investments on the latest and greatest technology, without a clear vision as to what this is actually going to do for the organization. Closer home, Dell Technologies’ recent Digital Transformation Index found that 93 per cent of business leaders in UAE and KSA plan to invest in powerful technologies in three years, and yet only 44 per cent are already integrating digital goals into all departmental and employee objectives.

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Innovation cannot be rushed in response to sector disruption or competitor moves. The forward-looking and future-ready organization is every stakeholder’s dream, whether customer, investor, or employee

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In these technology-defined days, it is easy to consider innovation as only related to technology. A common misnomer is that innovation must be undertaken only when there are significant and disruptive trends that affect the success of an organization’s ability to stay relevant. Relevant reinventions of processes and effectively anything that improves upon a previouslyaccepted way of doing something are also sometimes considers as examples of innovation. This approach stems from a lack of three key factors: Vision, Context, and Purpose.

A three-step checklist Innovation has to tie-in to the vision of the organization. We live in an era of disruption – of sectors, of products, and of ways of life. How an organization chooses to respond to disruption says a lot about how committed they are to achieving their vision. Innovation in response to disruption can severely test this commitment, and this is a responsibility that the leadership shoulders, considering their greater custodianship of the organization’s objectives. https://www.facebook.com/businessdayng

This also helps define the context of this innovation: is it reactive, and if so, is it mission-critical? If it is proactive, is it being driven for innovation’s sake, or is it going to positively impact the customer or employee experience? While there may be calls for innovative solutions or practices even at a department-level within organizations, it falls on the leadership to see the bigger picture and draw focus towards innovations that bring stakeholder benefit.

Now we have agreed that this innovation is mission-critical, and the last bridge to cross is the assurance that it is also purposeful. This is where the leadership must look through their long-term plans, to ensure that the innovation is fit-forpurpose for today’s requirement, as well as for the foreseeable future.

At this stage again, if there appears a clash with either the vision or context, then this is cause for pause.

Lead, innovate, succeed If you’ve noticed, the common thread that runs across all stages, is that innovation is very clearly a leadership priority. KPMG estimates that decisions, guidance and @Businessdayng

MOHAMMED AMIN

behavior of leadership accounts for 70 percent of the impact to culture, while elements such as training and engagement programs account for the rest. Leadership buy-in also fosters a culture of innovation with a longer-term view and prepares the organization to be the disruptor, rather than the disrupted.

Innovation cannot be rushed in response to sector disruption or competitor moves. The forwardlooking and future-ready organization is every stakeholder’s dream, whether customer, investor, or employee. Innovation is the opposite of complacency and strategic innovation is, in fact, how disruption is delivered.

Amin is senior vice president, Middle East, Russia, Africa, and Turkey, Dell Technologies

Tuesday 13 August 2019

BUSINESS DAY

COMMENT

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Mobile phones, internet and jobs in Africa (4)

RAFIQ RAJI

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n-the-ground AI research to bridge knowle dg e gap & incorporate African factors Artificial intelligence (AI) is the ability of a digital computer or computer-controlled robot to perform tasks commonly associated with intelligent beings. AI research falls into one of three categories: Strong AI, applied AI or cognitive simulation. Strong AI aims to produce machines with human-like thinking abilities. Applied AI or “advanced information processing” seeks to build “smart” systems for lucrative or life-saving vocations like medical diagnosis or stock-trading. Cognitive simulation involves using computers to test human cognition theories.

Global tech firms IBM and Google have established AI research labs in Africa; the former in Nairobi, Kenya and Johannesburg, South Africa and the latter in Accra, Ghana. They are largely applied AI research ventures. These AI initiatives mitigate fears about the likelihood of Western-designed AI systems excluding African preferences and cultures. They also help ensure African researchers participate in global AI efforts; which were hitherto all based outside Africa.

Some African AI researchers abroad are seizing the opportunity to return to their homeland. And

a next generation of African AI researchers would also now be able to avail themselves of the knowledge and experience without having to venture afar. African governments should be mindful of the ethical motivations of these AI research ventures by global tech firms, however.

Challenges and constraints Infrastructure remains inadequate, data costs are high, and internet penetration of below 40 percent remains relatively low, logistics can be nightmarish, many Africans remain relatively digitally illiterate, and the regulatory environment is uncertain or even antagonistic.

Online marketplaces have been filling the digital skills gap with foreign labour. To manage regulatory and financial risk, major online marketplaces are not only registered outside of Africa but are also tapping foreign capital markets for funding. Both online suppliers and consumers have genuine cause for concern. For example, African governments have been shutting down the internet during elections and protests. The ease with which governments are able to do so exposes the fragility of the internet on the continent. Part of the appeal of the internet is its supposedly “borderless” nature. However, if governments can stop the usage of the internet on a whim, its infrastructural utility diminishes.

Perhaps the only distinction is that such behaviour is not limited to African countries; Russia is building a sovereign internet wall, for instance. Besides, even when the shutdowns are not motivated by government action, the fact that most Africans use the internet via their mobile phones, through networks that are relatively fragile,

means that they easily lose access to the internet from time to time due to fault-induced shutdowns.

External private actors have also been able to shutdown at least one African country’s internet infrastructure; in Liberia, for instance.

Still, many are able to defeat these shutdowns. And legal institutions have surprisingly proven to be resilient in keeping government overreach in check in some African countries.

In any case, calls are being made for some form of global regulation of internet activities. And despite the obvious drawbacks of overregulation and censorship, some African governments are undaunted.

They are increasingly looking to tax online activity or have some form of regulatory oversight over the internet in their jurisdictions.

For example, Uganda has imposed a social media tax. More recently, Uganda announced plans to nationalise its internet data exchange service, raising fears of inefficiency and likely regulatory overreach in the aftermath.

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My column this week is the fourth part of my recent paper for the NTUSBF Centre for African Studies at Nanyang Business School, Singapore, where I am a research fellow.

References are in the original article

Conclusion The internet is a net job creator.

Cheaper smartphones and mobile data, a mobile money boom, and burgeoning e-commerce on the African continent are spurring incremental economic growth and creating jobs. Digital IDs, smart and balanced regulation, and certainly much cheaper smartphones and internet would be key elements to achieving these goals on scale. African governments should ensure all their citizens have digital IDs, can make payments digitally, and in collaboration with global tech giants, are able to acquire low-cost smartphones and use the internet cheaply. In the aftermath, they would all be able to participate in

online marketplaces as suppliers or consumers.

There is already an example of how private enterprise and governments can accelerate the process.

In India, a largely cash-based society, an entrepreneur is already leveraging on the country’s now well-established digital identity system to include all Indians in the digital economy. Recognising high data costs are a constraint for poor people, the entrepreneur is offering data services on his mobile telecommunication network almost for free and almost certainly at a loss in the interim.

His strategy is clearly to formalise all Indians, irrespective of class, in a digital ecosystem that enables them conduct almost all their daily activities, from socialising to buying groceries, online. While his ambition is not an ideal scenario, in light of obvious antitrust issues, it exemplifies the potential of the internet and how the digital ecosystem it creates would spur incremental economic activities and create jobs.

African governments have a good example in this Indian case on how the internet opportunity can be operationalised on the one hand, and the potential monopolistic drawbacks on the other.

In tandem, government policies should prioritise human capital and infrastructural development.

Entrepreneurs should also be able to secure financing easily. These would only be possible if African governments create a conducive business environment in their respective jurisdictions. The job creation thesis of the internet rests on these foundations.

“Dr Raji is chief economist at Macroafricaintel.

He was previously an Africa Economist at Standard Chartered Bank, London, UK. (Twitter: @ DrRafiqRaji)”

What if you’re not chosen for a ‘hi-po’ programme?

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once worked with a colleague who I discovered had been selected for the company’s talent programme. I worried about why I had not been chosen. I had no idea why I cared so much, but I did.

Organisations naturally need to have a leadership pipeline through which they identify, develop and promote high potential (hi-po) employees who can lead the company in the future. However, given that most will not be selected, it is inevitable that some talented individuals will feel overlooked.

Organisations devote significant resources to these “chosen few”. They give a few individuals privileged access to training, exposure to decision makers and mentorship, all of which helps propel them towards the coveted top spot.

Like the Met Gala, such programmes are invitation only. But how to get invited on to them is usually a closely guarded secret. Sometimes it is a formal process, but at other times it is at the discretion of senior management. This approach can look like favouritism to other employees if the messaging is not clear and widely communicated.

In a world where we are bombarded with social media posts by friends, peers and rivals who are all apparently smashing their goals, the pressure to ascend the career ladder quickly is intense. Career Fomo (fear of missing out) has never been so great.

That is the appeal of a “hi-po” programme — it offers someone the chance to accelerate their professional development.

So what happens when you are not chosen for a “fast track” programme? It is easy to start questioning your capabilities and even aspirations. It can be a motivation killer at first, leaving you feeling undervalued.

The effectiveness of hi-po programmes has long been debated. Harvard Business Review data suggests companies are bad at correctly identifying high-potential employees. There is comfort in that — not being picked for a “leadership” programme is not a foolproof indicator of who is most likely to rise through the ranks.

There is also a tendency to overestimate, and even romanticise, the extent to which being singled out early on, magically catapults people into long-term success

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and achievement. The best organisations build a culture that nurtures high-potential individuals whether or not there is a formal talent development programme in place.

This is especially true for women and minorities in the workplace who remain under-represented at every level in the corporate talent pipeline.

New research from Northwestern University in the US suggests that early career hurdles actually help spur future success.

The study showed that experiencing setbacks at the start of a career has a powerful and opposing effect: “Individuals with near misses systematically outperformed those with near wins in the long run.”

Early success does not always predict future success. Longer term, what you do when faced with disappointment usually determines whether or not you have what it takes to have a successful career.

In an interview with Vogue, Whitney Wolfe Herd, founder and chief executive of dating app Bumble, spoke about how she has used being underestimated as a “super­power”. If people don’t know how good you are, or don’t realise your longterm potential, use it to your advantage and

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ELIZABETH UVIEBINENÉ challenge yourself and prove them wrong.

And as much as being touted as “one to watch” is an early indicator that you may be on the right path, some “hi-po” programmes can sometimes bring with them the unhelpful pressure of a predestined leadership path.

That makes less sense at a time when millennials and Gen Z are redefining what career trajectories look like. It is not a linear path for many of us. We are more likely to have several careers and move between companies more than previous generations. Rather than focusing narrowly on climbing up the corporate ladder, we are thinking about lateral ways to advance in our careers.

If you just missed out on a talent development programme, do not be disheartened. It leaves open the possibility of proving yourself on your own terms, rather than getting boxed into one company’s view of what leadership looks like.

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Tuesday 13 August 2019

BUSINESS DAY

EDITORIAL The many troubles with the fall in oil prices PUBLISHER/CEO

Frank Aigbogun EDITOR Patrick Atuanya

DEPUTY EDITOR John Osadolor, Abuja NEWS EDITOR Chuks Oluigbo EXECUTIVE DIRECTOR, OPERATIONS Fabian Akagha EXECUTIVE DIRECTOR, STRATEGY, INNOVATION & PARTNERSHIPS Oghenevwoke Ighure GENERAL MANAGER, ADVERT Adeola Ajewole 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

O

ur foreign reserve may come under pressure due to lower oil prices. As at last week it fell to $56 per barrel, below the $60 benchmark for the 2019 budget.

Experts predict that the US-China trade spat could expand into a currency war.

The trade war between the largest two economies in the world has fanned fears of a global economic slowdown, which could translate to lower oil demand and lower revenue for Nigeria since oil accounts for a large chunk of its budget.

It could get worse if China decides to buy crude oil from Iran in retaliation to the latest US tariffs. Oil prices could sink to as low as $30 a barrel.

If oil prices fall that low it could deal a big blow to the economy. It will force the Central Bank to intervene more in the foreign exchange market to prop the naira. Whatever false

sense of security stable oil prices bought the federal government, it’s time to realise that the N3.73 trillion budgeted for 2019 is at risk.

When the price of a barrel of oil fell to $40 in 2016, the economy slid into a recession forcing the CBN to restrict scarce forex. The economy is still recovering. Economic hardship coupled with festering socio-political unrests don’t get along well together.

At some time, the decline in the number of deaths from wars, violence and genocide was said to explain the dramatic improvement of global standards of living.

Yet Nigerians die daily, victims of bandits, militants and kidnappers. Add the figures of mothers and children who die daily from curable illnesses, a precipitating underdevelopment is evident. It’s hard to disagree with pessimists who say that Nigeria is under siege even though we’re not at war.

It is not difficult to be negative about the future of Nigeria when

compared with Ghana’s growing socio-political stability and the growing economic strength of Ethiopia and Egypt. On the other hand, Nigeria is frequently portrayed as a house that has fallen, with a penchant for ethno-religious violence, a land of oil and blood, a den of advance fee fraudsters, a land burdened by debilitating infrastructure.

Pervasive socio-political troubles square with the notion that Nigeria is fragile. Failed economic promises and a growing and unconscionable disproportion of Nigerians living in extreme poverty are some of the combustible elements fuelling the pessimism.

The above image is often contradicted by Nigeria’s untapped potentials which include the usual suspects -- a growing youthful population, a landmass gifted with many natural resources other than crude oil, a large number of accomplished professionals in diaspora etc.

Government – the executive and

legislative arms at the federal and state level – allows such high octane elements to mix at its peril. Indifference to the country’s prospect is a depressing line of action but subconsciously this is the default attitude of President and the Governors. It explains the cynicism and despondency of citizens.

It thus falls on Nigerian statesmen and women to point out, repeatedly and forcefully, the need to prevent another economic downturn. Well-meaning Nigerians with a keen sense of history realise that they can’t remain passive this time around and hope for a miracle to spare the nation from anarchy and doom. Neither praying nor hoping exonerates those who have a voice from personal responsibility. Beer parlour or arm chair politics is insufficient because Nigeria is as much theirs as it is of those who think she is their personal heritage.

Besides, to do nothing is similar to conniving with marauders by leaving open a window into your house.

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Tuesday 13 August 2019

BUSINESS DAY

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Trump’s two miscalculations penalise global prospects

DAN STEINBOCK

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n barely a week, President Trump made two great miscalculations. First, he undermined the trade talks in Shanghai.

Then US Treasury declared China a currency manipulator.

The two miscalculations will prove costly not just in the US-Sino trade war but for global economic prospects.

Divisions at the White House and the Fed At the eve of the recent trade talks in Shanghai, President Trump’s tweets undermined the meeting before it even began.

Afterwards in the Oval Office, President Trump overruled his advisers to ramp up tariffs on China.

Reportedly, the decision ensued after a heated debate in which he insisted levies would force China to comply with US demands.

Except for Peter Navarro, Trump’s China-bashing trade adviser, Trump’s highest-level team adamantly objected to the tariffs. That spurred an intense debate lasting nearly two hours. Trump desperately needed secured commitments China would boost the purchases of US agricultural exports; and he saw tariffs as the best bullying tactic. Eventually, Trump’s advisers gave in and helped him to draft the tweet announcing an extension of tariffs to essentially all

Chinese imports.

Soon thereafter, US Treasury Department declared China a currency manipulator and threatened to “engage with the International Monetary Fund” to stop the Chinese yuan from gaining “unfair advantage” in trade.

That designation does not reflect economic realities, but political desperation, however. Neither the IMF (nor US Treasury) has expressed concerns about Chinese currency manipulation for a long while. The Chinese yuan joined the IMF’s international reserve currencies a few years ago; and more recently, China has joined vital global benchmark indices.

Conversely, in the US, the political background forces behind the recent Fed rate cut, which did weaken the US dollar, have given rise to high-level concerns about the Fed’s independence, as evidenced by the recent Wall Street Journal op-ed by former Fed chairs Paul Volcker, Ben Bernanke and Janet Yellen.

Trump’s tariffs undermine cheaper dollar and rising equities True, the US administration desperately needs a cheaper dollar. Yet, Trump’s tariff wars and geopolitical ploys (e.g. Iran, Venezuela, new Cold War against Russia) work against such goals.

Before summer, the White House lifted tariffs to 25 percent from 10 percent on $200 billion of Chinese goods, while targeting another $300 billion worth of Chinese imports for potential punitive tariffs. Unsurprisingly, the renminbi depreciated from 6.7 to more than 6.9 against the US dollar, mainly on renewed trade tensions.

China retaliated by imposing duties on $60 billion of US goods, starting June 1. China could have

retaliated harder, but opted for a mild response to keep the door open for trade talks.

Until Trump’s tariff escalation, Chinese renminbi was around 6.80 against the US dollar. But that was predicated on the idea that cooler heads would prevail in the White House and a broad-scale trade war was avoidable. When Trump opted for tariff escalation, markets reacted expectedly. By the summer, the appreciation of Chinese yuan was reversed. Things were about to get tougher.

As the collateral damage of the US tariffs began to spread in the US economy in the summer, Trump largely ignored the economic impact of the trade friction. Naively, he thought that the Fed’s rate cut (which he expected to result in new cuts over the fall) would accommodate his trade policy. Emboldened, he opted for the “more tariffs and still more tariffs” stance.

In the past few days, the market response has been dramatic, how-

‘

Paradoxically, the more the Trump administration will escalate the trade wars, the more likely it is that US dollar will push the yuan closer to 7 per US dollar or beyond it, as I projected in China Daily last May

Figure 1: The interplay of Trump’s tariffs, US equities and Chinese yuan

ever. Following Shanghai talks and the new tariff escalation, US stocks plunged on prospects of a prolonged trade fight, and business groups warned about the impact on consumer spending.

Indeed, Trump’s tariffs have paced the renminbi fluctuations ever since the start of his trade wars (see Figure 1).

In light of the economic realities, the US Treasury’s claim that China is depreciating the Chinese yuan is simply flawed. In fact, depreciation is what China seeks to avoid. When exports shrink, a light depreciation of the currency is of no help. And if the yuan would depreciate significantly in a short period of time, it would foster worries about capital flight.

Paradoxically, the more the Trump administration will escalate the trade wars, the more likely it is that US dollar will push the yuan closer to 7 per US dollar or beyond it, as I projected in China Daily last May. While that may impair market sentiment in China in a short-term, it is likely to cause collateral damage in the US stock market, as evidenced by recent market volatility.

The Trump administration’s yuan allegations are motivated by political objectives, not by economic realities.

What President Trump needs for his domestic initiatives is a cheaper dollar and soaring equities. What his miscalculations have caused is precisely the reverse.

Dr. Dan Steinbock is the founder of Difference Group and has served at the India, China and America Institute (US), Shanghai Institute for International Studies (China) and the EU Center (Singapore). For more, see http://www.differencegroup.net/

Gains of restructuring Nigeria’s road transport system

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oad transportation is a basic requirement for the success of any nation, regardless of its industrial capacity, population size or technological development. Part of the challenge of the Nigerian transport system is its poor design which has been a hindrance from inception.

It’s responsible for why we are unable to scale up to meet greater demand. There is urgent need for our nation to upgrade the state of our road transportation system and calls for urgent approach in order to make it attractive for both local and foreign investments which is one of the ways of boosting the huge potentials in our road transportation system.

A 2018 World Bank report on global logistics performance index placed ranked Nigeria 110th with a score of 2.53, a decline when compared with the 2016 LPI ranking of 90th position and a score of 2.63. Germany has remained consistent as the top performer for the past few years.

South Africa has an LPI score of 3.38 and was ranked 33rd globally, far above Nigeria.

Our road transportation infrastructure is in a very poor state and falls short of the countries we would like to be compared with as the giant of Africa. Our road transport system has an insufficient infrastructural system in place to meet the evolving trend globally. Our road transportation systems ranks very low in terms of the quality of our infrastructures despite having the ability of accelerating the ease of doing business, this is responsible for the low investments opportunities in our road transportation sector by foreign players.

Our nation is still very far from the world’s

best practices in road transportation systems, some of the major challenges affecting our road transportation systems are the need to review and upgrade the policies which is the major challenge affecting the system. Other challenges are undefined bus shelters, insufficient pedestrian infrastructures, lack of CCTV, unsignaled junctions, bad roads, road-side parking, high traffic demand/motorization rate, poorly planned junction geometry, insufficient public transport modes, the unavailability of alternative roads, road encroachment, lack of traffic information and absence of real time passenger information.

Others are poor driving licensing systems, recklessness and impatience of drivers, insufficient speed limit signs, inadequate off-street parking provision, indecent behaviour of drivers, ineffective enforcement regime to curb indiscipline among drivers, flooding of the carriageway resulting from poor drainage infrastructures especially in rainy season, hawking and street trading, fragmented bus service, lack of pedestrian walkways, high level of operational indiscipline, lack of major fleet operators, high security challenges ,unauthorized parking garage with their spill over effects on the carriage way, unsafe and uncomfortable vehicle conditions, poor traffic enforcement regime and congestion arising from lack of traffic systems management (TSM) measures.

In order to address some of the challenges stated above in our road transportation system there is need for proper administration and management of our road transport systems across all routes and transport terminals across

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the nation. This will definitely generate more revenues for the various states and the federal government. This will help generate more revenues for timely maintenance and infrastructural upgrade. Professionals and well trained transport experts should be given opportunities to manage the various road transport terminals across the nation.

Designing and implementing a blueprint in the road transport sector will ensure all road transport companies, car rental and leasing companies, commercial vehicle operators and various road transport terminals, parks, agents across the value chain are duly registered and granted licenses and permits which should be handled by the Federal Ministry of Transportation at a fee which shall be renewed periodically for all taxes and dues to be remitted to federal government.

Centralization of the registration process would promote improved security, safety and will help improve the quality of the standards of vehicles on our roads; it will also help entrench good behaviour on all road users and will help achieve improved services by all players across the road transport system.

The deployment of enterprise resources planning (ERP) software in the management of the road transport system will help capture all activities within the road transport system and the Nigerian economy stands to gain millions of dollars and also thousands of job opportunities annually. There are a lot of government revenue leakages which end up in the hands of a lot of unregistered players within the sector because of poor monitoring systems and management

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FESTUS OKOTIE

systems in the road transport sector.

The present culture of maintaining and monitoring all activities within the road transport system is very far from satisfactory and it is obvious the public sector funds through budgetary allocations are just insufficient to maintain the infrastructures and facilities across the entire road transport system in Nigeria.

There is urgent need for the Nigerian government to take steps in the right direction to evaluate and restructure the current status of our road transportation system, to provide a reliable, more efficient and effective solution of blocking some of the revenue generating loopholes in the system.

Okotie, a maritime transport specialist, writes via fokotie. bernardhall@gmail.com, Fokotie@bernardhallgroup. com

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Manageme He can be c

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Tuesday 13 August 2019

BUSINESS DAY

Media business Canod Advertising clinches multi-million Naira M & B Paracetamol media account Daniel Obi

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enowned Pharmaceutical company, May and Baker (M & B) Plc, has appointed Canod Advertising, as its agency to handle its prized M & B Paracetamol campaign.

The appointment, according to a statement followed a rigorous pitch process that involved four other media agencies at which CANOD Advertising emerged victorious and the subsequent hard negotiations that further confirmed CANOD as an agency deserving of the M & B Paracetamol Media Account.

The pitched brand, M & B Paracetamol, “the Red one”, has fast acting and effective tablets as well as pleasant tasting pineapple flavoured syrup for children. May and

Baker’s avowed aim to sustain its dominance of this particular market category with “the Red one” led to its resolve to partner with an efficient agency hence the need for

Vacant Billboards Billing/ Membership: OAAN, RISAA mull for business partnership Daniel Obi

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he Outdoor Advertising Association of Nigeria, OAAN, and the Rivers State Signage and Advertisement Agency, RISAA, are working towards a partnership with the aim of promoting conducive business environment for members.

At a meeting which held in the office of the OAAN’s President, Emmanuel Ajufo recently which had the Managing Director, MD, of RISAA, Chief Tony Okeah in company of his senior management staff, the OAAN boss presented some of the issues affecting members in the state, and requested that the RISAA leadership should looks into them.

Some of the issues mentioned

include billing for vacant billboards, and allowing companies that are not registered either with APCON nor OAAN to practice.

In responding, the MD of RISAA made a promise to consider the issues and further solicited the cooperation of the executive council of OAAN, particularly in the area of payment of outstanding permit fees.

Chief Okeah also made the promise that the Agency would cooperate with the members of OAAN. The RISAA boss equally assured the OAAN leadership that the ongoing enforcement exercise in the state was to rid it of illegal and unkempt structures.

Chief Okeah asked members to contact the Agency for reconciliation of their bills and promised to review such as far as possible.

the pitch and the eventual triumph of CANOD. The campaign which commenced in the last week of July this year pan Nigeria was on both Tel-

K

EA Enterprise has announced the launch of its new project named Extraordinary Woman (EW). During the launching, which took place recently in Bodija, Ibadan, the Project Coordinator, Kemi Irinoye said the social enterprise was set up with the sole aim to inform, communicate with and educate women from different spheres of the society while also celebrating women doing extraordinary things in their little ways.

“Extraordinary Woman was created for women. The women in Nigeria today are under immense pressure to measure up to many expectations. Being an extraordinary woman for me, means being yourself without altering who you are to fit society’s standards.

“We have created an avenue for all women that encourages them to be themselves, chase their dreams and live their lives how they desire without seeking society’s approval,” Irinoye said.

BIC rewards customers with TV sets, Fans, mobile phones in AFCON promotion Daniel Obi

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IC, manufacturer of Bic range of products, has concluded its recent promotion tagged ‘Shave, Play and Win’ with an electronic draw of entries where winners of different prizes emerged.

The company said the promotion exercise was part of its business strategies to remain business especially in a competitive market and difficult operating environment.

From the draw, five entries won DStv Explora, another five won Led TV sets while 10 entries won mobile phones. The draw also produced 10 winners of table top gas cooker and another 10 winners of rechargeable

fans.

The draw was witnessed by representatives of National Lottery Commission, Consumer Protection Council and Lagos State Lottery Commission. From their observation, Niyi Adeleke of National Lottery Commission and Sussie Onwuka of CPC attested that the draw was clear and transparent.

Speaking later, Adeyemi Ojo, Country Business Development Manager for BIC Nigeria, said the promotion which excited the product consumers has given the company leverage in the market.

“For us at BIC, we always want to excite our consumers and business partners and this is why we run promotion periodically. The promotion is to give back to them because we believe that they are the pillars of our business. When our customers get value, we believe they will keep patronising us”. This year’s promotion conducted during the 2019 AFCON competition in Egypt is the third edition.

Some of the winners across the country were called on phone and they expressed delight for emerging winners.

Berger Paints expands outlets to meet consumers demand Daniel Obi

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erger Paints Nigeria Plc., Nigeria’s foremost manufacturer of paints and allied coatings has opened a new Colour World outlet on Awolowo way, Ikoyi, Lagos as part of its commitment to meet the growing demand by consumers for a wide range of colours at point of sales.

Speaking during the opening in Lagos recently, the Managing Director, Berger Paints Nigeria Plc., Arjan Sircar explained that the store will be a destination of choice for homes

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evision and Radio with its execution in both English and vernacular languages to effectively penetrate the target markets.

CANOD Advertising is a young gency resourced by the smart and brightest led by Tony Udenze. It is a team of consummate marketing communications practitioners with over 30years experience that cuts across FMCG brands, Telecommunications, Hair & Beauty Care, Pharmaceuticals; Banking & Financial Services; Government & Public sector, Electronics and Insurance.

Industry watchers are of the view that the partnership between May & Baker, a pioneer and market leading player in the Nigerian Pharmaceutical industry and CANOD Advertising will help to reinforce the M & B Paracetamol, “the Red one” brand’s promise and make it the preferred choice of consumers in no distant future.

Group launches Extraordinary Woman Initiative

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and organisations located within the Ikoyi/Victoria Island axis, desirous of giving their exterior and interior buildings aesthetic look as the company remains dedicated to serving its customers better with different quality paint products.

“We are excited to open this new Colour world outlet in Ikoyi. This helps to showcase our capacity to provide wide range of products in a way that represents how we are transforming the paint industry and how we can satisfy the desire of our customers. This Outlet offers a variety of colours that meet customers specification coupled with a stateof-the-art tinting technology that @Businessdayng

offers one stop-shop for their painting needs”, he said.

Sircar disclosed that the centre has unlimited paint offerings which are meant to serve 5 business segments that include Decorative/Architectural finishes, Industrial coatings, Marine & Protection coatings, Automotive/ Vehicle refinishes, Wood Finishing and Preservers.

In his remarks, the Chairman of Berger Paints Nigeria Plc., Abi Ayida expressed delight at the opening of the outlet noting that it is a significant achievement for the company considering the level of commitment and effort channelled to make it come into reality.

Tuesday 13 August 2019

BUSINESS DAY

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Tuesday 13 August 2019

BUSINESS DAY

Branding

Fidelity Bank gives MSMEs hope, connects them to funders Fidelity Bank Plc is one of the financial institutions that has a long-running support for the growth and development of small businesses in Nigeria because of the recognition of critical roles of MSMEs as vital agents of economic development and transformation. The bank which has full-fledged SME banking division last week held a unique forum where it connected funders, trainers to entrepreneurs for necessary financial assistance. DANIEL OBI reports

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Importance of MSME he Small and Medium Enterprises SME sector, including micro businesses have generally been described as engine of economic growth. This has been proven in many economies such as USA, China, India, Malaysia and Singapore where the countries have leveraged the contribution of SMEs to advance their economies.

Size and definition of SME enterprises depend on magnitude of economies but the general understanding is that SMEs are businesses that have a number of employees below certain threshold and certain revenue and assets level. In Nigeria, Bank of Industry, BOI defines medium scale businesses as firms that their workforce is less than 200 but above 50 with total asset of less than N500 m but above N100m.

On the other hand, small businesses are firms with less than 50 employees but above 10 staff with total asset base of less than N100m but above N5m while micro businesses, according BOI are enterprises with less than 10 employees and total assets of less than N5m.

Globally, MSMEs are the engines of socio-economic transformation, including industrialisation, as they provide vital platform to enhance technological and entrepreneur capacity among various segments of people. MSMEs are also said to be important role-players in contributing to the transition of agriculture-led economies to industrial ones.

According to Organisation for Economic Cooperation and Development data, MSMEs around the world account for about 89 % of all companies in the world. They provide the main source of employment, accounting for about 70% of jobs and they are major contributors of value creation.

Countries that understand the potentials of MSMEs have provided policy support to enable the firms under this category to thrive. This support includes lower lending interest rate, funding through cooperatives, tax reduction, training and other necessary infrastructural support to keep the sector healthy.

In Nigeria, MSMEs employ over 80 % of the country’s total 90.5 million labour force, contribute up to 48 % to Nigeria’s GDP and constitute over 80 % of registered exporters in Nigeria, according to the Managing Director of Fidelity Bank, Nnamdi Okonkwo.

Challenges In spite of these contributions to employment and GDP and potentials to do more, MSMEs, calculated to number over 37 million in the country, according National Bureau

Obafemi Hamzat, deputy Governor, Lagos State, (center); flanked by Fidelity Bank Plc, Ernest Ebi, chairman, board of directors, (right); Nnamdi Okonkwo, managing director, chief executive officer, Fidelity Bank Plc, (left); Chijioke Ugochukwu, executive director, Shared Services & Products, Fidelity Bank Plc, (5th left); Obi Ezeude, founder/ chief executive officer , Beloxxi Industries Ltd, (4th left) and small business owners during the Fidelity SME funding event organized by the Bank in Lagos.

of Statistics, remain largely challenged by a number of problems with limited financing options and training on business structure being some of the major drawbacks they face.

Many of them that are successful even in a VUCA (Volatile, Uncertain, Complex and Ambiguous) economy but need support to grow, lack the knowledge on book keeping, how to package their proposals to attract funds and they lack adequate collaterals to secure funds from local and multilateral financial institutions.

Mission for rescue To bridge the funding gap and other issues in the sector, Fidelity Bank, established in 1988 and known for keeping its promise to clients, last week brought about 1,500 players in MSME sector to meet and interact with different funders.

The programme entitled ‘Entrepreneurship meets capital’ was a relief to many of the operators in the MSME as they got answers to some knotty questions. The funders that met with the entrepreneurs included representatives of CBN, BOI, and Development Bank of Nigeria, DBN. Among the panelists included representatives of an investment firm, African Capital Alliance and Lagos Business School. In a relax mood and friendly interactions, the panellists were able to explain various funding options available, processes, necessary trainings and how the entrepreneurs can access funds from the financial institutions.

Fidelity Bank did not stop there; www.businessday.ng

it also brought successful players in the MSME sector, including Founder /CEO of Beloxxi Industries, Co-founders of Max.ng and Wilsons Juice respectively and founder of Skretting to tell their success stories as encouragement to the MSME operators.

On the rationale for the conference, considered vital to MSMEs, Okonkwo said Fidelity Bank has done much for MSMEs and will continue on this trend but the bank realised that many MSMEs still find it difficult to obtain funds. “What we have done is to bring funders and those who need the fund for closer interactions on the way forward.

“This is the beginning of a series of programmes that will run across the nation. We will do this every half year until we go round the nation and we will start again”.

He said Fidelity Bank had partnered with BOI and DBN to disburse funds to MSMES. “About N6 billion of BOI has been disbursed by Fidelity Bank. Fidelity Bank has also partnered with Development Bank of Nigeria to the extent the Fidelity has disbursedN9.6 billion of DBN funds. All of these are at single digit interest rate.

“Even the African Development Bank understands what Fidelity is doing with SMEs in Nigeria and that is why the bank granted us $50 million which we received two weeks ago for SMEs. This comes with a proviso that 30 % of the funds should be for women entrepreneurs.

“Some women entrepreneurs attest that Fidelity Bank has supported them.

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In this industry, some of our colleagues have ‘owned certain segments’. Some concentrate on fashion, some on food and so on but at Fidelity we are inclusive.

That is why we concentrate on SME generally. We are not focused on any specific segment because SMEs need that voice that is all inclusive”, Okonkwo said.

To further encourage MSMEs, the bank recently threw open an entry for grant to MSMEs. A total of 2,500 operators applied. They were taken through rigorous process.

This number was scaled down to 50 entries that went through intensive training at PWC experience centre.

From the 50 entries, the first winner was given a grant of N2 m and the runner up N1m.

While commending Fidelity Bank on the re-engineered initiative, the Deputy Governor of Lagos State, Obafemi Hamzat said the critical importance of MSME sector warrants that much more attention should be paid by all stakeholders.

Hamzat said fund is essential to any business but most especially to SMEs because most of the time MSMEs don’t have collateral that the banking industry requires. “They also cannot survive on the high percentage of interest that most other businesses do. It is therefore important that programmes like this that assist entrepreneurs to access capital is more relevant. This programme also highlights the fact that entrepreneurs need to have a clearly defined path in order to succeed and allows us to understand that @Businessdayng

there is no short cut to successes.

They just have to do the right thing”, he said.

Endorsing the programme, the chairman of Fidelity Bank, Ernest Ebi said the board is solidly behind the bank’s management in this programme. “From the catalogue of activities of the bank in SME, you will agree that Fidelity is playing a leading role in SME and retail banking space”.

Underscoring the importance of SME, Ebi further said the issue of SME is topical in Nigeria’s economy.

“In Fidelity we are giving SME every attention because of its importance to economic growth. If you are talking about stimulating the economy, the nation cannot do without SME”, he said.

Encouraging the MSMEs, the CEO of Beloxxi Industries Limited Obi Ezeude advised them to stay with their passion in business instead of jumping from one business to another.

He said finance is good for business but if the operators don’t know how and where to deploy the fund when it comes, the business will fail. While advising the small business to be dedicated, he told them not to cut corners but deliver value products, be courageous in approaching government agencies and departments for necessary assistance.

The Fidelity Bank service to MSME is worthy of commendation as it will enable entrepreneurs to access funds necessary for their growth. At the end, Nigerian economy is the huge beneficiary.

Tuesday 13 August 2019

BUSINESS DAY

COMPANIES & MARKETS

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COMPANY NEWS ANALYSIS INSIGHT

AVIATION

SAHCO’s H1 profit hits N171mn, boosts operations with new equipment fleet IFEOMA OKEKE & OLUFIKAYO OWOEYE

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kyway Aviation Handling Company (SAHCO) h a l f- y e a r re venue surged 23.59percent to N3.51bn from2.84bn, thanks to its revenue from cargo handling income which surged 23.68percent from N1.52bn in half-year 2018 to N1.88bn in half-year 2019, and its Adhoc handling services which also ballooned to N270mn from N6.03mn.

The cargo handling company’s direct cost increased marginally to N2.00bn from N1.71bn, administrative expenses however declined 1.14bn from 1.21bn.

The company also returned to the path of profitability in half-year as halfyear profit stood at N171mn from a previous loss of N227mn in half-year 2018.

In the meantime, the company has announced the acquisition of a new fleet of Baggage tow tractors.

The tow tractors which has the capacity to convey up to 40 tonnes of baggage or cargo, is the best of its kind in aviation ground handling equipment in Nigeria.

The Baggage tow trucks which were manufactured in Germany combines comfort, safety, and flexibility with the latest technology. It can convey up to 45 tonnes of baggage and cargo on level ground and up to 40 tonnes on wet or hilly surfaces.

Furthermore, the Baggage tow truck is equipped with a tier 4 compliant engine which is to significantly reduce emissions of particulate matter and Nitrogen to near-zero level. This is to abide by the European Environmental agency policy, while it was being produced thereby making it environmental friendly with little or no emission.

In addition, the Baggage tow tractor is very userfriendly, prevents hernia and is very durable and rugged.

Apart from SAHCO’s massive constant investment in trailblazing Ground Handling Equipment, it is also worthy of note that SAHCO’s team of engineers have manufactured various equipment with locally sourced materials some of which include fuel bowsers, toilet bowsers and baggage carts to further, boost client

satisfaction and to ensure speedy service delivery.

The company’s immense investment in technology which has resulted in excellent performance has received a lot of accolades from various bodies across the world. Recently, SAHCO was adjudged ‘The best Ground Handling Company in West Africa’ during the 5th Accraweizo 2019, and

was awarded ‘The most Innovative Ground Handling Company in Nigeria’ by The League of Airports and Aviation Correspondents (LAAC).

Also, SAHCO won a Service Provider Recognition award in the Indian Sub-Continent and Africa from Etihad Airways. The Lagos Station was awarded the best in on-time perfor-

mance and excellent service delivery thereby beating the Asia region who has always been leading.

Speaking on the success of the company after the privatization, Chigbo Anichebe, the Director, Development Institutions & Natural Resources, Bureau of Public Enterprises, who expressed the agency’s excitement over the outstand-

R- L: Adebisi Tuwashe, auditor with Lagos State government; Adams Kure of Nigerian Defense Academy; Simon-Jude Manye of MTN, and Uduak Nelson Udoh of FirstBank, at a visit by the Institute of Internal Auditors (IIA), Nigeria led by Uduak Nelson Udoh, president/board chairman, IIA, Nigeria to the International Conference of IIA Global in Anaheim California to strategise for IIA Nigeria’s forthcoming National conference themed Growing and Sustaining Governance in Public and Private Institutions” scheduled for 26 and 27 September in Lagos.

ing performance of SAHCO during a routine post-privatization assessment tour in Lagos, recently, particularly observed that SAHCO was doing a lot better than expected nine years after it was privatized.

SAHCO, formerly known as Skypower Aviation Handling Company Limited, was carved out of the liquidated Nigeria Airways Limited as part of the Nigerian Federal Ministry of Aviation’s Reform of 1996.

On the 23rd of December 2009, SAHCO was handed over to the Sifax Group by the Federal Government of Nigeria, after a keenly contested privatization in which Sifax Group came first as the preferred bidder with the sum of N5.52 billion Naira. The company was listed on the Nigerian Stock Exchange on the 23rd of April 2019.

SAHCO is involved in all the activities that takes place from the time an aircraft touches down on the tarmac to the time it is airborne, while also ensuring that Aviation Ground Handling services is carried out in an efficient, speedy and safe manner by deploying the right tools.

TECHNOLOGY

ChamsAccess plans to consolidate on record 376% PAT HOPE MOSES-ASHIKE

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hamsAccess, the leading access and technology solutions Company is determined to consolidate on its impressive performance recorded in the financial year ended December 31, 2018.

The company’s commercial and financial performance showed outstanding improvement, compared to the previous year despite the tough operating environment.

Turnover increased by 78 percent to N1.35 billion in 2018 compared with N785 million recorded in the previous year.

Profit before tax increased by 376 percent from N41 million reported from the previous year to N195million in 2018.

Evans Woherem, Chairman, ChamsAccess, said the company is poised to consolidate on its 2018 impressive financial year performance and enhance investors return.

Speaking at the company’s 2nd Annual General Meeting in Lagos, last week, Woherem, said the company performed overwhelmingly better in 2018 and delivered commendable volumes in the course of the financial year.

“The board and management will continue to

monitor the business environment and make necessary adjustments to sustain the positive growth momentum into the future,” he further mentioned.

According to him, it was paramount for the company to diversify into new markets and transition from a predominant hardware company to software, in line with its strategic imperatives.

Also speaking, Dumebi Obodo, managing director, said last year was an exciting year for ChamsAccess - partly because the changing business and commercial environment created opportunities. “We are unyielding in our drive to develop cost and time-

saving technologies to the delight of our clients and act in an ethical and responsible manner.

“We will continue to increase our array of technologies and ensure that we develop a diversified portfolio that can serve different sectors. “Furthermore, we will take a disciplined approach to capital management, which ensures we maintain a strong balance sheet.”

During his speech, he mentioned that at the second half of the year 2018, new partnerships were sealed, to foster penetration into more sectors.

“Also worthy of note is our partnership with

New York-based fintech company, First Access to deliver digitized and automated credit solutions to microlenders, in line with ChamsAccess mission to be the go-to company for technology solutions that make life less complicated.

“Furthermore, a partnership with Assa Abloy has ensured that we deliver secure solutions that save costs in the Oil and Gas sector”, he concluded.

Obodo noted that the year 2018 witnessed a fragile growth in the Nigerian economy, with real Gross Domestic Product (GDP) growth reaching an estimated 1.9 percent, reflect-

ing a recovery in services and industry; the growing importance of ser vices bolstering growth in the economy.

According to the National Bureau of Statistics (NBS), Nigeria’s GDP grew by 2.01 percent(year-onyear), in real terms, in the first quarter of 2019. Compared to the first quarter of 2018, which recorded real GDP growth rate of 1.89 percent, the Q1 2019 growth rate represented an increase of 0.12 percent points. However, relative to the preceding quarter (fourth quarter of 2018), real GDP growth rate declined by –0.38 percent points.

Editor: LOLADE AKINMURELE (lolade.akinmurele@businessdayonline.com) Graphics: Samuel Iduh

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Tuesday 13 August 2019

BUSINESS DAY

COMPANIES&MARKETS

Business Event

LOGISTICS

Uber records $5.2bn Q2 loss on stock-based compensation OLUFIKAYO OWOEYE

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ide-hailing platform, Uber recorded its largest-ever quarterly loss of $5.2bn in the second quarter of 2019, the, while reporting revenues of $3.16bn.

According to Uber, majority of its second-quarter losses are a result of stock-based compensation expenses for employees following its May IPO. Stock compensation aside, Uber still lost $1.3 billion, up 30% from the first quarter.

Stock-based compensation is a kind of compensation given by companies to its employees in the form of equity shares if the company compensates the option holders totally in terms of additional shares, the paid-up capital increases on the Balance Sheet while there will be no impact on the Cash Flow Statement.

Dara Khosrowshah, Uber CEO said the company’s huge loss in the second quarter was

a “once-in-a-lifetime” hit as it tries to steer it toward profitability, noting that he’s targeting 30percent revenue growth in the back half of the year, compared with net revenue growth of 26percent in the second quarter.

“I think we’ve got very good visibility into our own business as far as the business model and how we can tweak it and how we can drive more efficiency, we think we can not only survive, but we can really thrive in this business,” Khosrowshahi said.

Khosrowshahi allayed fears that Uber has lost its “founder mentality” after Travis Kalanick, resigned as CEO of the company in 2017.

The new CEO continues to face immense pressure from investors to get Uber on the path of profitability. He also addressed the stock’s lackluster performance since Uber’s IPO. “We’ve got to do a better job as far as telling our story to the markets,” “Long term,

the market will take care of itself, and I think that’s what we’re focused on right now,” Khosrowshahi said.

Uber’s competitor, Lyft, reported $867 million in quarterly revenue, beating expectations by about 7percent, while revenue per active rider was up to $39.77, a 22percent increase from the same period in 2018.

Lyft’s second-quarter loss was also wider than analysts had hoped, but the company said it had adjusted full-year forecasts and expected its 2019 adjusted loss would be less than its 2018 one, after previously warning losses could continue to escalate this year.

Uber had a turbulent few months since the IPO in May after its overly ambitious private market valuation failed to sway Wall Street.

Uber, in an attempt to slash costs and make operations more efficient, recently announced it was laying off one-third of its 1,200-person marketing department.

L-R: Adebowale Akinade, head, finance and account; Bimbo Ikumariegbe, deputy managing director/COO; Abiodun Omoniyi, MD/CEO, and Victor Omoyeni, chief technology officer, all of VDT Communications, at the media launch of VDT 4G LTEA in Lagos.

CONSUMER GOODS

Coca-Cola’s H1 profit slowed 10percent amid unseasonably wet and cold weather conditions OLUFIKAYO OWOEYE

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oft-drink giant, CocaCola HBC’s first half of the year profit dropped 10percent to €195.1m, down from €216.9m for the period ending 30th June.

The company’s net sales revenue surged 3.8percent to €3.4bn on a 2.2percent volume lift.

Total unit case volumes sold rose to 1,090.4 billion cases, from 1,067.4 billion cases in 2018.

The soft drinks giant said that its revenue also benefitted from favourable currency movement of the Swiss Franc and the Nigerian Naira.

The company’s emerging markets segment saw sales growth of 4.8percent, supported by good momentum and strong volume growth of 3.4percent, as well as price increases, improved category,

and package mix, and favourable currency impact from the Naira. Sparkling volumes grew marginally in Nigeria, while water and Energy drinks saw double-digit growth.

According to the company, its profit was adversely impacted by unseasonably wet and cold weather conditions in the second quarter as well as a challenging comparable from the previous year when Coca-Cola was one of the main sponsors of the FIFA World Cup tournament and benefitted immensely from the sales promo.

“We have widened the pack/price architecture across our Sparkling brands and this, along with the work we have done to evolve and strengthen our route to market, is delivering results amid a very competitive market environment,” the company said of its activities in Nigeria Its sparkling beverages vol-

ume increased 2.4percent, with volume growth across all three market segments, trademark Coke continues to have strong momentum with volume growth of 4.5percent buoyed by 34.6percent growth in Coke Zero.

Soft-drinks, Fanta and Sprite volumes declined, Energy volume grew by 28.1percent with a strong performance from both Monster and Burn, which achieved organic revenue growth of 38.8% and 12.3% respectively. Water volume was up by 2.2percent with volume growth fastest in our Emerging segment led by Nigeria.

Zoran Bogdanovic, Chief Executive Officer of Coca-Cola HBC, looking forward to the second half said it will deliver FX-neutral revenue growth within the range of 5-6percent, with another year of margin expansion.

L-R: Kehinde Salami, MD/CEO, Ideas House Marketing Communications Limited; Bukola Akingbade, MD/CEO, Neukleos; Lanre Adisa, Jury president/MD/CEO, Noah’s Ark Communications Limited; Chuddy Oduenyi, MD, Compact Communications Limited, and Femi Adelusi, MD, BrandEye Media Limited, at their inauguration as Jury members of MARKETING EDGE 2019 Brands and Advertising Excellence Awards in Lagos, recently.

L-R: Olabimpe Orimoloye, brand manager, Peak; Maureen Ifada, marketing manager, Peak; Tobi Bakre, BBA 2018 finalist; Linda Ejiofor, Tinsel actress, and Afolarin Ojo, senior brand manager, Peak, at the recently-concluded AY Live comedy show, supported by Peak Milk, recently.

COMPANY RELEASE

Nosak distilleries to commence export operations to Ghana

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osak Distilleries Limited, a subsidiary of Nosak Group has concluded plans to commence exportation of refined ethanol to Ghana as part of its export expansion plans.

This came to bare after securing the certificate of registration from the Food and Drugs Authority in Accra, Ghana.

Making the announcement, the Managing Director, Nosak Distilleries Limited, Osaro

Omogiade expressed excitement after receiving the certificate of registration of the product from the Food and Drugs Authority of Ghana. “This is yet another milestone in our operations in the sector and we are particularly delighted as we commence export operations to other West African countries beginning with Ghana, our sister country”, he said.

Omogiade explained that, “Nosak Distilleries Limited is the

leading ethanol manufacturer in Nigeria producing 500,000 litres per day and over 180 million litres per annum. We own and operate three modern distilleries for manufacturing various industrial and consumer chemicals, particularly ethanol.

The capacity of our plant contributes over 50 percent of the local demand for ethanol and other industrial chemicals.”

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L-R: David Suh, MD, Samsung Electronics West Africa; Damilola Sanya, business development manager, Technology Distributions; Ike Eyisi, executive director, operations, SIMS Nigeria; Dakore Egbuson Akande, award winning actress, and Remi Ogunsan, HOD, consumer electronics, at the Launch of the New Samsung 8K QLED TV in Lagos recently.

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Tuesday 13 August 2019

BUSINESS DAY

19

Putting ourselves out there How do we prove our specialness?

By Ruth David, Who You Want Should Want You Back s business owners and entrepreneurs, we spend a lot of time creating our “sales pitch” for clients/customers/ investors. We do not do that for prospective talent. That is ironic because, without first communicating our appeal to competent hires, we deprive ourselves of the human capital to fulfill the promises we make to the clients/ customers/investors. We decided last week that formulating our Employee Value Propositions (the things our businesses can supply to meet our future employees’ needs) was an essential thing.

Differentiating yourself in your EVP is a must. However, communicating it is the most important piece of the puzzle. When you formulated your Employee Value Proposition, shey you figured out what makes you special? Tell us eh. If you can’t, you might as well have built the most beautiful house in Lagos but painted it with some magic substance that makes it in-

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visible to everyone. To be competitive in the recruitment process, you have to understand and advertise the qualities that make you the most attractive choice. When you showcase why the position is worth having, you attract people who are truly interested in filling it and who are the most qualified for it.

The Proof is In the Pudding Your key EVP is not what you say but the track record that you show. If your company has created an initiative to upskill its workers by granting a month’s leave in the middle of the year so they can take a marketing course, that is a far better proof point than just showing interviewees a document that says your company is focused on professional development. Why? Because it is tangible. Because it is something your current employees can attest to. And because employee testimonials from current members of your staff will go further than any advertisement you craft, job description you write, or public relations messaging you pay for.

Let’s take it back to relationships. When you finally meet the man and woman of your dreams,

after they have been informed by the emissary of all your wonderful qualities, you will naturally put your best foot forward. But what is more convincing? When a guy tells you he has never been unfaithful to a girlfriend before, or when you meet someone who used to date him who has nothing but good things to say? When you tell a prospective girlfriend that you have an entrepreneurial spirit, will she be more convinced by the fact that you have a copy of The Economist on your bedside table, or when she sees the little kiosk you opened when you were only seventeen?

You Get Points for Trying Your EVP should be something tangible, no matter how small, that shows that you have at least attempted, in some small way, to walk the walk that you are talking.

Enter the recruitment process with proof of your work-life balance initiatives, your generous maternity leave policy, your team culture, etc.

Now, those of you with small companies, or fledgling businesses that have not been around long enough to establish a track record or put any long-term policies into place, might feel a little discour-

aged. However, even without a long tangible track record, the values that your company embodies will show in your mission and vision statement, in the things you have prioritised in your company, and in the way you relate to existing employees and interacted with former ones.

Presentation vs Packaging In this country, unfortunately, we are champions of ‘packaging’.

We promise things we are optimistic about delivering, but have absolutely no proof that we can execute. When communicating your EVP — whether in the job listing you put in newspapers, the job description you put online or the word of mouth vacancies you share with your network — ‘photoshopping’ your image might attract candidates. The mirage might even get the best people through your doors for an interview. If you are terribly lucky, it might even get them into your company. But it will not keep them for long. If the communication of your EVP is dishonest and disingenuous, sooner or later it will show itself. And the backlash and ill-will it creates will have consequences.

Achieve the Objective The point of a successful recruitment process is to leave you with employees who will be motivated and dedicated. The point of communicating your EVP is to get you employees who can thrive in the environment you have created.

When you miscommunicate your EVP or misrepresent yourself, you create the perfect storm for D&D (distress and distrust). When your purpose is not to mislead anyone directly but, because of some failure in communication or lack of clarity in the way you presented the job, you end up with an employee that cannot thrive because their motivators are not being met. Communicating your EVP correctly and clearly is of ultimate importance in the recruitment process, and if you can master this step you are much more likely to meet your recruitment goals.

•Ruth David is the Partnerships Coordinator at WAVE, an organization focused on rewiring the education-to-employment system to create a level playing field for every African youth to access the skills and opportunity to become what they imagine.

Single parents face a challenge to stay in work Childcare costs and lack of flexible work mean UK single parents fare less well than other Europeans

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fter her marriage ended, Joanne Jacobs*, 40, moved from the US to London, where some of her family live. She now lives with her three-year-old daughter and works full-time as a consultant.

She has joined the growing ranks of lone parents in employment in the UK — up to 69 per cent in the first quarter of this year, from 44 per cent in 1996.

This increase is in part the result of targeted government policy initiatives. In the late 1990s, the British government introduced the New Deal for Lone Parents programme which aimed to reduce unemployment by providing training, subsidised employment and voluntary work to the unemployed.

Then in 2003 the government introduced working tax credits, a means-tested benefit for lowincome workers which helped to top-up wages.

Subsequent caps on unemployment benefits until a claimant is working 16 hours a week have moved even more people, including lone parents, into the labour market.

But despite the increase of lone

parents in the UK joining the workforce, they still fare far less well than their European counterparts.

In 2018 the employment rate for lone parents in the UK was 10 percentage points lower than that of the general population, according to official statistics released in April.

This is the widest gap in the EU, bar Malta. The poor employment rate for single parents is particuwww.businessday.ng

larly striking given the UK’s stronger labour market, resulting in a wider gap in the UK between single parents and the general population than in the rest of the EU. Across the eurozone last year, 74 per cent of single parents were in employment, 5 percentage points higher than in the UK. In Germany, the employment rate of lone parents was 77 per cent.

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In the UKloneparentsinlow-paid jobs and those managing to maintain a better paid professional career face significant challenges. Higher childcare costs and a lack of flexible work contribute to making the UK’s employment rate of lone parents the lowest of any major EU economy.

It ranks 22 among the 28 EU countries. Furthermore, regardless of whether they are in work or not, there are more single parents in poverty in the UK than in any other EU country.

Childcare issues A lack of flexible and affordable childcare contributes to lone parents staying out of the workforce and remaining in poverty. According to a survey from the UK’s Department for Education, nearly half of the non-working lone mothers do not have a job because of childcare or flexibility issues.

Nearly two in three non-working single mothers in the UK say they would work if affordable good-quality childcare was available.

Ms Jacobs, for example, despite a good income, cannot afford to live alone in a home near her daughter’s school. To make ends @Businessdayng

meet she is considering living with another single mother to share childcare and housing costs.

Childcare is needed, she says, “not just for the day-to-day during office hours, but if you have to travel for work, if you are ill, or would just like to spend an hour a week in a gym class or socialise every now and then away from the house”.

Pettrina Keogh was forced to move to reduce childcare costs.

Currently working for a tech company, she became a single parent when her son was two.

When she and her partner split up both were in full-time work and employing a nanny outside nursery hours. Ms Keogh’s partner continued to help with mortgage payments, but once they decided to sell their house and cut financial ties, she needed to fund a mortgage and childcare on her own.

“Continuing with costly fulltime childcare once I only had my own salary and minimal child maintenance to rely on became impossible,” she says. “How was I going to reduce childcare costs unless I moved close to my family who were at the other end of country?”

20

Tuesday 13 August 2019

BUSINESS DAY

A brief history of executive burnout How our forebears dealt with stress at work should make us wary of faddish cures

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n 1897, Murray Finch-Hatton, 12th Earl of Winchilsea and a pioneering motorist, wrote to fellow board members of the Great Horseless Carriage Company: “Gentlemen — I believe you are aware that about three months ago, as the result of overwork, my health suddenly broke down, and Sir William Broadbent . . . ordered me at once to go to the Riviera.”

But the rest cure had failed and Broadbent, an eminent physician, had judged the earl was “not in a fit state of health to undertake any responsible work”.

As a result, he would be obliged to step down as a director. Finch-Hatton’s decline (he died the following year, at 47) is a footnote in corporate history, but his admission was not unusual for its time.

The Financial Times, which published his letter, was dotted with announcements of forced breaks by overworked corporate directors in the 1890s.

That contrasts with the way in which companies today are only beginning to tackle the physical and mental health risks of long hours, and with boards’ continued coyness about admitting when senior staff succumb to burnout.

Finch-Hatton’s resignation came towards the end of a period of rising concern about the pace of technological disruption, to

which, in a small way, the motor vehicles promoted by the Great Horseless Carriage Company were contributing.

By the 1900s, newspapers advertised products such as Rexall’s Americanitis Elixir to “overwrought business men”, worried that “business conditions today ask more of a man’s vitality than ever before”.

A 1907 advert continued: “It’s one continuous drive at high tension, overtaxing the body and brain until a complete breakdown comes.”

This worry about the velocity of modern life sounds familiar.

A search of the Factiva media database reveals the number of references to the “accelerating pace of change” has doubled since 2014, compared with the preceding five years.

We live again in “anxious times” — the title of a new book that features the Rexall’s advert and examines late 19th-century society’s responses to overwork and stress.

The internet and social media — today’s equivalent of the telegraph and popular press — contribute to the sense of overload, but also, like the adverts of the 1900s, provide a vector for its treatment.

The stressed-out are encouraged to use technology to monitor their physical and mental wellbeing, the quality of their sleep, and their nutrition. www.businessday.ng

Instead of Victorian magnates’ rest cures, 21st-century executives pay for mindfulness and meditation sessions, personal trainers and, in extremis, rehab programmes.

Oxford university’s Sally Shuttleworth is a co-author of Anxious Times and leader of a research project, “Diseases of Modern Life”. She told me that “it became very acceptable [in the late 19th century] for business leaders to have mental breakdowns”.

Attributing their ill health to overwork was both a badge of pride and an endorsement of their decision to enjoy a period of what one promoter of the Riviera called “legitimate idleness”.

From at least the 1860s, British travellers began bigging up the health benefits of resorts such as Mentone, on the Mediterranean, and later Davos in the

Swiss Alps.

There, convalescing dignitaries sowed the seeds of the highaltitude, high-level networking that occurs at the World Economic Forum conference.

By the 1890s, as British economic prosperity peaked, the trend for captains of industry to take lengthy resort cures was dying out. “It started to be seen as self-indulgent,” Prof Shuttleworth told me.

Recommended Health at Work Men urged to seek help for mental health problems at work These echoes of history can help executives today.

Our forebears thought they were living in times of unprecedented pressure and stress.

Yet they were able to overcome their concern and even advance thinking about how to diagnose and treat the age’s emerging social problems.

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The internet and social media — today’s equivalent of the telegraph and popular press — contribute to the sense of overload, but also, like the adverts of the 1900s, provide a vector for its treatment

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By Andrew Hill, FT

@Businessdayng

As the authors of Anxious Times say in their conclusion, “without history, we live in a perpetual present — a domain that, by definition, tends toward the persistently bewildering”.

The historical perspective should encourage us to treat with scepticism the most overwrought responses to today’s technological changes.

The arrival of the telegraph was even more revolutionary than the internet, reducing the transmission of information from weeks to hours.

By contrast, as The Economist detailed in 2015 in an article headlined “The creed of speed”, it is often hard to prove that the pace of business today is much faster than it was in the late 20th century.

A long view of our own anxious times ought also to make us more careful about leaping to adopt the latest faddish and costly cures for workplace stress — the equivalent of those turnof-the-century “elixirs”.

Yet companies could still learn from Finch-Hatton and others’ candour. By encouraging companies to shed light on the dangers of overwork, convincing business leaders to confess when they are unable to cope, and tackling the problem before it takes a toll, we can at least show we have learnt something from the past 150 years.

•Andrew Hill is the FT’s management editor

Tuesday 13 August 2019

BUSINESS DAY

21

EDUCATION Weekly insight on current and future trends in education

Primary/Secondary

Higher

Human Capital

‘Collaboration is pivotal to re-focus Nigerian universities for creativity, nation-building’ KELECHI EWUZIE

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ndustry professionals have stressed the need for effective collaboration between critical stakeholders in the country, adding only then can university education in Nigeria be successfully re-focused for creativity and nation-building.

They maintain that there is need for a sincere partnership comprising AcademiaIndustry and Government to fill all identified gaps in the input-process-output of the university quality paradigm of analysis.

Suleiman Ramon-Yusuf, deputy executive secretary, National Universities Commission (NUC) said universities must be strategic to carry out effective teachinglearning, Research and community engagement, as it will help Nigeria to truly be on her way towards technological and socio-economic development, self-sufficiency, poverty reduction, wealth creation and global competitiveness.

Ramon-Yusuf made this known over the weekend while delivering a lecture at the maiden matriculation ceremony of Trinity University, Yaba, Lagos, titled ‘Re-focusing the Nigerian University System for creativity and Nation-Building’.

He said any meaningful attempt at refocusing university education for creativity and nation-building should have as its backdrop the skills and competence requirement dictated by the future of jobs as technologies can drive business growth, job creation and demand for specialists skills.

According to Ramon-Yusuf, “To prepare the Nigerian University System for productivity and innovation requires a seismic shift in the delivery modality and a massive expansion of the research mission of Nige-

rian universities underpinned by massive investment in research and innovation to bolster the provision of resources for university researchers and a major shift in incentive structures and the curricula with profound emphasis on STEM”.

“There is need to ensure injection of liberal arts concepts and content in STEM curricula with ample doses of interpersonal skills and interdisciplinary curriculum to build student capacity for collaboration and social interaction within STEM curriculum”.

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midst the challenges that Nigerian teachers go through in terms of professional motivation, work friendly environment and training among other incentives, discussions that center on recruiting, supporting, and empowering teachers as well as inspiring future oriented teaching, will take centre stage at the third edition of The Lagos Teachers’ Conference.

The conference will congregate speakers, panelists to discuss exhaustively on how to build capacity and strengthen competence through exposure to relevant information, vital skills and current teaching principles, styles and techniques.

Olufemi Orawusi, coordinator, Educational Aid Global Initiative (Edu-Aid), a NonGovernmental Organisation of Covenant Christian Centre says experts with decades of experiences in the field of education and teacher training will be on hand to share best and current practices regarding mentoring, instruction and motivation of students for best possible outcomes.

Orawusi in a statement announcing the conference scheduled for Saturday, 24th of

competencies and values through quality teaching, learning and research, thus creating effective change agents and value-adding members of the society.

On his part, Samuel Olatunji, pro-chancellor and chairman of Council of the institute reiterates that Trinity University is not just another University but rather, a university setting out to breed graduates equipped with a certificate that is a statement of excellence in learning, in character, in competence and in contribution to humanity.

Charles Ayo (middle left), vice chancellor, Trinity University; Samuel Olatunji,(middle right) pro-chancellor and chairman of Council; Suleiman Ramon-Yusuf, (3rd from right) deputy executive secretary, National Universities Commission (NUC) in a group photo graph with students at the maiden matriculation ceremony of Trinity University, Lagos

Leveraging best practices to inspire future professionals outlines Lagos Teachers’ conference KELECHI EWUZIE

He further opines that there the need for new attitudes towards teaching, so that old ways of teaching, which perpetuate the status quo and unproductive university system, do not prevail. Universities, then, can shape and inculcate these new ways of thinking through effective teaching.

Charles Ayo, vice chancellor, Trinity University while addressing the 13 matriculating students opines that the mission of the newly licensed citadel of learning is to equip students with knowledge, skills, attitudes,

August 2019 with the theme: Teaching for the future said massive investment in recruiting, supporting, and empowering teachers has been identified as a major key in realising sustainable development goals SDG 4 which is the new global education goal that is at the heart of the Education 2030 Agenda.

Orawusi further said the conference will serve as a platform for teachers to interact, build networks and develop relationships that will advance the teaching profession.

According to him, “The conference will be discussing topics such as exploring evolving learning paradigms for improved teaching, positioned to build up and prepare 21st century students for the future’ “Education Governance in Nigeria: pitfalls and roadmap to effective transformation; Innovation for improvement of learning experience in Nigerian schools: gaps and opportunities and the Career Teacher: Professional development and career progression pathways for the future oriented teacher” Industry experts expected to share their experiences at the conference include: ModupeAdefeso-Olateju, managing director, The Education Partnership Centre (TEP Centre) and a policy expert specialising in public-private partnerships in education; Rufai Oseni Rufai Oseni, author, global speaker, and entrepreneur and development expert.

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9mobile, ABU partner to broaden 9TEPP response to emerging industry trends

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etermined to ensure more Nigerians benefit from the programme, the management of both 9mobile led by Stephane Beuvelet, acting managing director, and the Ibrahim Garba, vice chancellor, Ahmadu Bello University, Zaria recently carried out a comprehensive review of 9mobile Telecommunications Engineering Postgraduate Programme (9TEPP).

The purpose of the review was to chart ways to make it more impactful especially in response to emerging industry trends.

9TEPP is a taught master’s programme situated in Ahmadu Bello University and is implemented in partnership with Plymouth University, UK. Through it, 9mobile is innovatively developing local expertise with regards to telecommunications engineering skills.

Speaking about the initiatives, Beuvelet said they include the migration of 9TEPP to an online platform thereby offering opportunity for as many interested Nigerians as possible to study online while another initiative is the widening of the curriculum which now includes study of ecommerce and tele-medicine amongst others.

To ensure sustainability and continuity, he said 9mobile will also build a Digital Academy that will be dedicated to the training of more

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Nigerians in Information and Communication Technology.

Beuvelet stated further that the telco and authorities of Ahmadu Bello University will also seek partnership with the Tertiary Education Trust Fund (TETFUND) and the National Universities Commission (NUC) as part of proactive steps to expand 9TEPP’s scope and impact.

“The educational and industry needs when 9TEPP was established in 2013 have changed.

Nigeria’s telecoms industry has witnessed phenomenal growth and has become more diversified. The telecoms industry needs more specialists and focusing on Telecommunications Engineering alone won’t be very beneficial for both postgraduate education and the industry. We decided to revamp the programme after a comprehensive review meeting with a team from ABU led by the VC to meet current realities,” he stated.

Beuvelet added that 9mobile will also provide support to the 33 master’s graduates by way of enabling them to take the research findings they have developed to the market while the telco will also purchase equipment and software for the upgrade of the 9TEPP Telecommunication Laboratory in ABU.

@Businessdayng

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Tuesday 13 August 2019

BUSINESS DAY

EDUCATION

Selecting a school for your child

OYIN EGBEYEMI

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ecisions around our children’s education are very challenging. As parents, it is not uncommon to get confused about what schools to send our children; the place where they would spend the bulk of their childhood hours; the place where they would get the foundational tools that they later require in their future.

Selecting a school for our children may seem like a make

or break situation. It can be daunting. Parents would often worry over this decision and the uncertainty around it because if they do not get it right, they may be doing their children a major disservice.

So what should parents look out for when making the decision about the schools to send their children to?

Firstly, parents need to come to terms with the fact that they are not looking for a school for themselves, but they are looking for a school for their children. This might sound a little strange to some; this might sound somewhat confusing to others.

The great thing about most schools these days is that parents have the profound privilege of being involved (particularly at private schools) through such forums as ParentTeacher-Associations. In fact, some schools are so open and flexible that parents have direct access to their children’s class teachers; the school administration and even the head/

owner of the school…some even have email and WhatsApp groups.

This is not to dispute the numerous benefits of parents’ involvement in school (because they really could enhance the school’s operations and performance of their children but only through effective feedback and communication with the best interests of the children in mind).

However, it is imperative that schools recognize that their primary customers are the children, and not the parents. So they should be more “child-focused” than “parentfocused”. Therefore, when parents embark on the search for a school for their children, they should endeavour to look out for the signs, which indicate that the interest of the children is paramount.

Transparency is another key area that parents must look out for when trying to select a school for their children.

Schools usually advertise visiting hours and open days for

prospective parents.

However, they may prepare to put their best foot forward only during these periods. In reality, a school (particularly private) is a business and visiting hours are a period for marketing. It is important for prospective parents to respect the school’s policy on visiting hours; but how could these parents possibly get a full picture of what really goes on at the school outside these hours?

How would they know what really goes on when the school is in “normal” operation and is not trying to make an impression? There is a way around this: If prospective parents have friends or persons within their network who have children at the school, they could get some information from them.

Furthermore, if these parents really do want to see and feel the school, they could ask such people in their networks to invite them when they do their school runs and pick ups, or even to other school activi-

Postgraduate advance studies: Rome Business School Nigeria offers scholarships KELECHI EWUZIE

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n a bid to encourage students and create easier access to advance studies, Rome Business School Nigeria, an Italian Business Schools operating in the country, has announced scholarship opportunities for intending Master’s Degree students in Nigeria for its October 2019 intakes.

The scholarships are for students applying to study for Master’s in Business Administration (MBA), Master’s in Marketing and Communications, Master’s in Inter-

national Human Resources Management and Master’s in Agribusiness respectively.

Intending students are advised to send in their applications to the school’s Ikeja GRA Lagos campus or contact the admissions office for further assistance.

Humphre y Akanazu, countr y director of the School in a statement made available to BusinessDay, says seeing the urgency to rebuild the Nigerian educational landscape and invest in the potentials of Nigerian graduates, we have opened our doors to promote the professional development

of students, professionals and entrepreneurs by creating scholarship opportunities for intending master degree students to foster educational advancement and contribute to meeting the United Nations Sustainable Development goal on Education.

According to him, “The scholarship is designed to give graduates, professionals, and entrepreneurs the chance to develop their competencies in managerial disciplines based on the best international standards, thus helping them to become competitive in the job, profes-

sional and entrepreneurial markets” he said.

Rome Business School Nigeria is a managerial training and research institute of excellence with an elaborate international standard academic curriculum.

“Our courses feature the highest levels of teaching quality and scrupulous care for the students’ needs with a personalized assistance of expert faculties, the wealth of learning materials and the meticulous checking of the learning progress ensures the maximum effectiveness of the training courses”, Akanazu said.

Cross-section of attendees during the SHE Advance event in Lagos www.businessday.ng

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ties that may be unrestricted to outsiders. During such visits, they should be very observant and carry out their due diligence on the school, whilst also bearing in mind that no school is perfect.

The truth is that there is a limit to getting the full picture of what goes on at the school, even for current parents at a particular school e.g. classrooms, teaching method and other activities. So, the final thing that parents have to take note of is the teachers at the school because at the end of the day, regardless of the curriculum or the intellectual power of the child, it is the quality of the teachers that makes the difference.

I always say that a school is only as good as its teachers. While other operational aspects and facilities that ensure smooth running might be present, if teaching is not right, everything else is put to waste. It is important to note that teaching goes beyond just instruction.

It involves various areas including: experience and qualifications, class size, relationship with the children (such that teachers are aware of specific strengths, weaknesses and areas for improvement in each child), method of teaching (which determines how well children get an understanding of what they are taught). These are areas around which prospective parents must ask questions when interacting with schools.

Selecting a school for children is very challenging but parents must endeavour to put themselves in their children’s shoes when making their decision, ask the right questions and carry out their due diligence effectively because it is really the children’s experience and the value they derive from school that matter at the end of the day.

Oyin Egbeyemi is an executive administrator at The Foreshore School, Ikoyi, Lagos.

NGO focuses on improving learning for children, teaches coding …organises summer camp for children

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TEAM Africa Initiative as part of its effort to improve learning for children recently held its week long summer camp for school children between ages 5-9, where they were taught coding among other 21st century skills.

Tiro Ovakporie, founder STEAM Africa Initiative said that the camp would go a long way in developing the learning process of the children.

“What we are trying to do is to get children to understand the world around us and to make things, so we are driving the MAKERSPACE movement which is that every child should make the things that they use.” She said.

Ovakporie says that this approach has become necessary seeing that the country is predominantly a consumers’ economy and as such children should be taught how to make things as opposed to just consuming.

“The world that we are in is technologically driven, how do we get children to be more technology inclined? We need to come to terms with what is happening in the developed world” Stating that parents do have a great role to play in the learning process of their children, Ovakporie opines that parents should give their children the opportunity to explore and also be knowledgeable themselves about technology as it is the reality of the times our children @Businessdayng

are being born into.

“It’s about putting the right checks in place and keeping the children safe on the internet.

The NGO which is passionate about transforming the Nigerian child into a maker has educational programmes aimed at opening new doors to learning, problem solving and invention through science, new technology and vocational skills for children of all ages.

With a vision to be the largest community of MAKERS through the MAKERSPACE movement, the STEAM initiative entails the use of (Science, Technology, Engineering, Arts and Maths) as the pedagogic method for learning.

The summer camp which is aimed at improving the learning process of the Nigerian child is in its seventh edition with its first session held in 2017. The camp children taught how to code using Scratch (a block based programming language) by volunteers from Andela and got to participate in the Moon Hackathon, a worldwide competition where over 30,000 children got to participate to mark 50 years of the moon walk by Neil Armstrong.

The children were also introduced to the MakeyMakey, an invention kit for the 21st century. We turn everyday objects into touch pads and connect it to the computer. It is used by beginners, experts doing arts, engineering and everything else in between.

Tuesday 13 August 2019

BUSINESS DAY

23

property&lifestyle What investors need to know for profitable investment in commercial real estate business …as Greystone Tower opens for home buyers, investors, corporate tenants CHUKA UROKO

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nvesting in real estate is an interesting, yet very intricate and challenging business. It is all the more challenging if the investment is in commercial segment of real estate, especially prime office space.

This explains why a prospective investor needs to know a few things this kind of investment needs in order for him to make profitable investment. There is need also to understand what both the external and interior parts of the space should be, or look like.

Professionals and marketers in this space advise that a commercial prime office building must have a flexible and technologically-advanced work environment that is safe, well-designed, well-built, and accessible. It should accommodate the specific space and equipment needs of its occupiers.

Udo Okonjo is the CEO, Fine and Country West Africa International-a real estate marketing, advisory and consultancy firm. The company has been operating consistently at the luxury end of the Nigerian real estate market and is reputed for successfully closing deals on many high end properties in Nigeria.

Okonjo explained to BusinessDay that in building a Grade A prime office space, special attention must be paid to the selection of interior finishes and art installations, particularly in the reception, meeting rooms and common areas. She added that well-maintained restrooms, lifts, provision of cafeteria, gym, crèche, smoking patio’s (terraces) should also be con-

sidered.

There are different methods of classifying Grade-A and Grade-B commercial office spaces. Okonjo points out that within the context of the Ikoyi and Victoria Island commercial office space offerings, Grade A buildings, such as the Greystone Tower, are unique in their location (accessibility) with a simple but iconic design and high construction quality.

Greystone Tower is an iconic mixed-use development strategically located at the intersection of two major business hubs in Victoria Island, Lagos. The building, designed

by Majoroh Partnership and being built by Dori Construction and Engineering Limited, is standing on 18-floors.

According to the project managers, it has five floors of parking space; one of the floors consists of 4units of 3-bedroom residential apartments; there is a ‘concessionary floor’ with Restaurants, Creche, Clinic, Café & Gym. “Greystone promises to be one of the finest developments redefining the Lagos city skyline with its organic and responsive warm and clear glass façade,” the project managers assure.

Okonjo disclosed that at the building’s ‘Open House’ held a couple of weeks ago, developers, agents and investors were educated on the kinds of facilities that were made available, the selling points of the tower and why it was a great investment for both commercial and residential use.

The finishing of Grade A prime office buildings is always of the highest standards and, like Greystone Tower, they are equipped with technologically-advanced building safety, mechanical, elec-

trical, and communications systems. Grade-A buildings are not only highly rated within their local communities, but are known to compete with similar developments in developed countries across the globe.

They also incorporate sustainability features and are value-engineered from the design stage to be Green/ Leadership in Energy and Environmental Design (LEED)certified developments.

Any standard prime office building must have features such as meeting/conference rooms; cafeteria, coffee shop; reception; with state-of-the art visitor management/ access-control systems, as well as information central

location for building directory, schedules, and general information.

The building should also have a common space and lounges for informal, multipurpose recreation e.g the entertainment lounge at the Nestoil Tower and the waterfront lounge at The Wings In Victoria Island, environment functionalities e.g. pressurized and fire-rated stairwells, railings at the staircases of the emergency-exits etc.

Provision of adequate alternative power-supply systems e.g. power generators and ups systems is also important just is necessary to incorporate water and sewage treatment plants; accessibility to the building at any time of

the day – weekends inclusive.

Other important features include provision of information technology dedicated server-room for each office unit, drivers lounge and maintenance room, dedicated kitchen; raised floor systems; energy efficiency – motionsensored lights and water taps, and air-recycling systems Lagos’ state-of-the art security systems with closed circuit television cameras (CCTV).

There should be technologically advanced fire-alarm and fire-fighting systems NFPA – 13 implemented; temperature monitoring in the critical areas e.g. Panel, ATS, control rooms etc; installation of health, safety and

Why Nigeria has one of Africa’s most rigid rent payment systems Endurance Okafor

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he larger population of Nigerians who cannot afford to buy their own houses are usually at the mercy of landlords for accommodation and due to the rigid rent payment system in most cities, tenants are forced to pay through their nose.

To rent an apartment in Nigeria, one has to make a down payment of not less than one year. In some cases, tenants are expected to pay up to 3 years rent upfront.

Data from a survey by Lagos-based Estate Intel analysed by BusinessDay shows that this is not the case in some African countries like

Botswana, South Africa, Benin Republic, Togo and Rewanda, where rents are paid on monthly basis without an upfront or down payment.

“I borrowed money to finish my building; I need someone that can pay me as much as possible. I spent a whole lot on the house; so two years www.businessday.ng

rent is the least I can take from any one,” Johnson Babajide, a landlord with three different properties on Lagos state the mainland, said.

He added that, for him, “property development is a serious business; I have other projects I want to complete, so you won’t blame me for want-

ing urgent cash plus the bank loans I need to repay.”

The frequencies at which rent is paid and how much is required as an upfront payment are the two criteria in determining rent payment system in a country.

Using both indicators, Nigerian cities come at the bottom of the pyramid, accompanied by Cameroun, Ghana and Sierra Leone, as the data from the survey by Estate Intel revealed that they are all at the same level.

According to Adeniyi Akinlusi, president of Mortgage Bankers Association of Nigeria (MBAN) and CEO, Trustbond Mortgage, landlords in some cities in Nigeria collect upfront payment

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of 2 years because of the high interest rate on the loans they borrowed from banks and as such are constantly in search of ways to recoup and pay up as soon as possible.

“The second reason may be because they are not sure that the tenants will be consistent in their monthly payment,” he added, noting, “the fear of high default rate due to lack of credit collection system is also a challenge.”

The Lagos Tenancy Law 2012 provides that it is unlawful for a landlord or his agent to demand or receive from a new or prospective tenant, rent in excess of 1 year in respect of any premises; it is also unlaw-

IFMA commends Lagos move to engage facility managers on govt’s estates

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he move by Lagos State government to engage facility managers to provide professional management and services on government estates has been commended by International Facility Management Association (IFMA), Nigerian chapter.

The ass o ciation has therefore assured the state government of its readiness to support and complement this laudable initiative through advisory and recommendation of credible and reliable facility managers with professional capability and pedigree.

“This move, in our view, is long overdue considering the value–adding benefits the tate government and the residents of the estates will derive from its effective execution,” Segun Adebayo, Acting President of the association noted.

“It will not only promote the wellbeing of the residents but also create a sustainable model of management of the estates through professionalism and international best practice,” he added.

Adebayp explained that, apart from the above benefits, the plan would also create jobs and employment for artisans and technicians in Lagos which would further translate to the preservation and enhancement of the life cycle of the assets in the estates in particular and the estates in general.

Over the years, IFMA has been a progressive partner with the state government through quality collaboration with Lagos State Infrastructure Asset Management Agency (LAIAMA)and government technical colleges in the state.

“Our strategic partnership and collaboration with the state agency and technical colleges has led to several initiatives like Facility Management Advocacy, Mentorship Programme for the students of the technical schools and celebration of World FM Day which is an annual global celebration of the achievements of facility managers,” Adebayo disclosed.

Continued from page 24 •Adebayo @Businessdayng

24

Tuesday 13 August 2019

BUSINESS DAY

property&lifestyle Double-digit mortgage rate highlights Nigeria’s fragile macro-economic fundamentals ...NHF incapable of meeting everyone’s housing needs, experts say Temitayo Ayetoto & Israel Odubola

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igh mortgage rate, which continues t o d e ny ma ny Ni g e r i a n s t h e privilege of owning homes, portrays how weak macroeconomic fundamentals are in Africa’s most populous nation, experts have said.

The experts, who spoke at Real Estate Investment Series (REIS) organised by K. ParkWood in Lagos, added that this weakness undermines the country’s ability to bridge its housing deficit and also provide affordable houses for low-income earners who form the bulk of Nigeria’s population.

In advanced economies, the mortgage industry contributes significantly to economic development with a single digit interest rate.

The reverse is the case in Nigeria, where relatively high inflation rate and high mortgage rates hurt demand for housing.

Nigeria needs annual production of about 750, 000 housing units for the next 20 years to close its housing deficit. And this is a herculean task for a country stuck with low growth after a 15-month recession, even

as limited access to funds lowers the performance of mortgage industry.

Kayode Omotosho, the executive secretary of Mortgage Banking Association of Nigeria (MBAN), in his presentation at the August edition of REIS with the theme, ‘Financing Home Ownership: A Focus on Mortgages and Housing Funds as Veritable Platforms’, maintained that mortgage rate was in double-digit because it was largely determined by market conditions.

“Market condition is what determines interest rate. We want to assure you that we are mindful that doubledigit rate on mortgage is not the best; we are in talks with the Central Bank of Nigeria, but economic issues have to be addressed for mortgage rate to come down to single digit,” he said.

The MBAN boss assured further that his organization remained committed to improving funding sources for housing projects. Part of efforts in this regard, according to him, was the registration of nine mortgage brokerage companies, creation of mortgage default loss of job insurance scheme as well as collateral replacement indemnity scheme.”

“When these schemes are fully implemented, you will begin to see representatives of mortgage banks approaching you to assist with funds to actualize your housing dream,” he said.

Omotosho stressed that the National Housing Fund (NFH) loans are insufficient to meet the housing needs of every Nigerian, saying there is the need for multiple housing vehicles.

“Nigeria cannot survive only on NHF. We need private sector-led public-driven mortgage institutions in the country”, he said, adding that Canada that has less than a quarter of Nigeria’s population has about three housing vehicles.

In his speech, Ahmed Dangiwa, the managing director of Federal Mortgage Bank of Nigeria (FMBN), represented by the bank’s deputy general manager, Abiodun Fashina, stated that accessibility and affordability of mortgage defined the business model of the bank.

Fashina, in his presentation, noted that the lowerincome earners, who account for over 70 percent of Nigeria’s population, are most affected by the country’s housing issues. He, however, maintained that

L-R: Omorinsola Ipaye, CEO, K.Parkwood Property Services (convener); Kayode Omotoso, executive secretary, MBAN; Ngozi Ogunwa, ED, FBN Mortgages; Adedotun Bamgbala, chairman, NIESV Lagos Branch; Kofo Owode, Head, products &asset management, Haggai Mortgage Bank, and Dorothy Obata, Head, Business Development, NMRC, at REIS event in Lagos on Friday.

low income of workers is the chief constraint to accessing housing facility.

Giving the performance scorecards of the stateow ne d FBMN, Fashina said as at the end of June 2019, the bank had 23, 199 registered organizations, 4.68 million contributors, 1, 125 registered co-operative societies, 21, 987 co-operative members, 20, 000 NHF loans disbursed, 2, 214 micro-loans worth N4.3 billion disbursed and

Lack of appreciation, poor orientation dampen interest in landscaping

N750, 000 mortgage loans refinanced.

He added that FMBN would partner National Employers Consultative Association (NECA) and Trade Union Congress (TUC) to construct 100 houses across the country’s six geo-political zones.

Kayode Ogundimu, the chief executive officer at Nigeria Mortgage Refinance Company (NRMC), represented by Dorothy Obata, Head of Business Develop-

Why Nigeria has one of Africa’s ...

Continued from page 23

Temitayo Ayetoto

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hile landscaping has grown from mowing long rows of shrubs in foundation planting towards curved beds with more natural looks and even artificial trimmings, the appreciation among many home owners has not seen much growth on poor orientation.

Landscaping for residential purpose still comes last on the agenda for outdoor home furnishing and sometimes do not make the plan because many still view it as an inconsequential feature not worthy of expenditure, horticulturists say.

But it is much more than having plants sprout out of the soil. It involves the art of arranging or modifying the features of a yard, an urban area, or other space for aesthetic or practical use.

“Unlike in other climes where a large expanse of land can be devoted to growing plants to define the space and perhaps express the sense of style of residents, it is widely preferable here to spend land spaces on building”, Juliet Iwuafor, founder of Gjulliette Floral,

a landscaping enterprise, told BusinessDay. The Lagos-based landscaper, who creates designs, observed that apart from regarding landscaping as unnecessary, many residents conclude it is a costly venture and fails to seek the professional horticulture services. On the path of few who appreciate, there is a struggle with regular maintenance of the natural fittings.

“I can say only about 20 percent of Nigerians are interested in landscaping work. Unlike in the western world where they can use 90 percent of the land for landscaping alone and www.businessday.ng

use 10 percent for the main building, Nigerians are not oriented that way,” Iwuafor explained.

“They will ask you why you are leaving a big space for flower and trees, what are you using it for. Many don’t value it. Even in places where we have worked, it gets eventually messed up,” she added.

Besides residential area which appears to record the lowest use, landscaping is an outdoor management art that has mainstream utilisation in hospitality structures, office complexes and educational facilities.

A nu mb e r o f f a c t o r s

influence the required investment for a landscaping undertaking. Asking a landscaper about the cost before a site visit may give a poor judgment and value of work needed within a space, Isaac Obonyano, an Abuja-based horticulturist, said.

Landscaping bill averagely considers how big the area to be converted to a garden is. The size of available garden space is the first consideration and it influences the garden layout. It checks whether area is paved, levelled, fertile, or needs flower box building and walkways.

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ment, noted that the firm has in the last four years raised N19 billion to refinance mortgages.

“We issued an N8 billion Series I bond in 2015 and another N11 billion series II bond in 2017. This shows how serious we are with our mandate to promote home ownership across Nigeria.”

REIS is the first investor-centric series birthed to deepen the knowledge base of individual and institutional real estate investors.

ful for the new or prospective tenant to offer or pay rent in excess of 1 year.

“Most of these landlords collect 2 years rent because they are trying to raise funds to pay up the loans they usually take from banks to execute their projects,” James Olanrewaju, an agent that covers Unilag, Akoka area, said.

Nigeria has over 17 million housing deficit and, according to the Association of Housing Corporation of Nigeria (AHCN), an umbrella organization for all federal and state housing agencies, more than 90 percent of new homes utilise funds from personal savings for incremental construction.

Credit Sales reports that the average rent of Nigerians between 20-35 years of age is around $230 monthly and the average price of one-bedroom in mega cities like Lagos, Abuja and Port Harcourt is around $300 per month.

“This means that a lot of people cannot afford to rent by themselves and there is the problem of upfront annual rent requirement; this means that there is need for products that can break those payments @Businessdayng

into monthly denomination because a lot of people earn their salaries on monthly basis,” Ibraheem Babalola, MD/ Cofounder of Muster, an AIpowered peer-to-peer shared housing market place said.

Eze Arua is a 22-year old accounting graduate who recently relocated from Abakaliki in Ebonyi State to Lagos.

Since his five months stay in the city of excellence, Arua has been squatting with his friend.

“The money I brought to Lagos to secure an accommodation is half the price of the cheapest apartment I have seen. I pleaded for the landlords to allow me stay for some months but none has agreed; so I am saving up to get one year rent,” Arua lamented.

He is not the only one on this table. A call by BusinessDay to some other cities revealed that Nkiruka in Portharcout and Ahmed in Abuja were going through the same situation.

“Another reason landlords demand upfront payment is due to the high demand for accommodation which doesn’t have an affordable and corresponding supply to meet the need. This gives the landlords the power to dictate the conditions,” Akinlusi said.

Tuesday 13 August 2019

BUSINESS DAY

BDTECH

25

In association with

E-mail: jumoke.akiyode@businessdayonline.com

‘Information from multiple regulators should be consolidated for the telecom industry to grow’ YEN CHOI is the group executive vice president and chief technology officer, Netcom Africa, a leading integrated ICT solutions and services provider. In this interview, he highlights the evolution of Nigeria’s IT industry in the last 15 years, the impact Netcom Africa has made in the IT ecosystem and regulatory challenges in the country. JUMOKE AKIYODE-LAWANSON brings the excerpts.

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ow can you describe NETCOM Africa?

We are a technologytransformational company. We use technology to help business to be more productive, more profitable and more efficient. We don’t see ourselves as selling only a product or services, but we see ourselves as a critical business delivering solutions. Solutions that would aid companies to solve important business problems and help businesses take better decisions. For example, we help companies implement ERP software, and business process solutions. We plan, implement, operate the systems for our customers. We also provide the networks, systems, hardware and training around these solutions to glue them together in an efficient way. We try to make companies have efficient workplaces using systems such as time attendance system where business owners can monitor the staff anyplace in the world. We also make running businesses easier through our deployment of Netcom Virtual PBX , a system where you can pick up your office extension anywhere in the world. Also, companies now understand the importance of business continuity and disaster recovery; for this we provide online continuous cloud real time backup. This gives them business continuity; with this the company doesn’t need to worry about their data being hacked.

How has the journey for NETCOM Africa been in its 15 years of business operation in Nigeria?

A lot has changed from how we started in the Nigerian information technology (IT) space. Netcom Africa was established in 2004 and we started with VSAT services. Ours was one of the most innovative then because we came into the market with a different mind-set. We came with 1.2 meter antenna, whereas others have antennas that are as large as 2.4 meters. We came to the market with the 1.2 meter antenna which was smaller and also revolutionary in the Nigerian IT market, it was also cheaper and more efficient than what was avail-

dures. This is a policy in Netcom Africa.

We ensure that what we deliver is the same thing every time. In addition, we are continually improving our systems and processes to be more efficient.

able then in the market. We grew in this space rapidly and our subscriber base increased. One of our ways of working was innovating; we constantly tried to innovate and that is what IT firms must understand, innovation is the key in this industry. We were one of the first companies to connect to the SAT 3 cable

‘

I think that there should be one stop agencies for telecom companies to go to not having to contend with a whole lot of agencies. The Nigeria Communication Commission is our regulators and one of the most progressive in the world. I know that they can intervene here

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system. This is an undersea cable that connects Europe to Nigeria. The benefits were that the capacity was large; this reduced the cost of internet and also latency. We were the first to offer SAT 3 services outside of Nigeria Telecommunications (NITEL) which was a national carrier. We tried to pre-empt the fact that the country wouldn’t only be dependent on satellite services. Very shortly, we launched one of the first mobile broadband platforms, it was a device that is the size of an average mobile phone; it is a PCMCIA card that can be inserted into the laptop. This device made customers to have access to SAT 3 bandwidth anywhere in Lagos. We called it “MyNetcom.” At that time, the competition was the fixed wireless and our solution was faster than the competitors who were offering to subscribers then about 100 kilobits per second.

When we came into the market, we changed the conversation and we started offering services over 10,000 kilobits per second then.

The Nigerian IT market is very competitive, what are the things that make your firm stand the test of time?

It is simple; it is our commitment to quality service and honesty. These are deliberate processes we put in place; we have well defined structures and proce-

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Please tell us about your smart building solutions?

We call it e-Space. In today’s world, buildings are going smart and tenants are becoming more sophisticated by demanding that buildings are connected with fiber optic cables, biometrics, VPN, access controls and security cameras, this is why we came up with the e-space. We call ourselves the preferred service provider; we give tenants the flexibility to choose. We have a lot of partnerships globally for different solutions. We work with a host of solutions providers and integrate solutions to suit the need of our clients. We try as much as possible to understand our clients and offer the best solutions. Netcom’s Smart Building Solutions connect, manage, and automate your building IT infrastructure. Downtime from IT infrastructure can lead to a huge loss in productivity and in turn affect the revenues.

Do you think that IT regulation in Nigeria is in line with the global best practices?

I was speaking at a Forum recently and it made me think about the regulatory processes and how cumbersome it can be. Take a look at the average driver in Lagos today; he has a lot to contend with, such as the FRSC, LATSMA, VIO and the Police. Why would a driver of a car be queried by many agencies for the same document? This is exactly what we get in the telecoms industry.

Imagine if you want to lay fiber in a place like Lagos, you have a lot of agencies to contend with; such as Ministries of environment, Local Government, State Government, get clearance from FAAN etc....If we have a one stop shop, it would be nice. I think that there should be one stop agencies for telecom companies to go to not having to contend with a whole lot of agencies. The Nigeria Communication Commission is our regulator and one of the most progres-

@Businessdayng

sive in the world. I know that they can intervene here. They should consolidate information on regulations from multiple regulators and let us know how to go about this because for many telecom firms, especially those that are into infrastructure, this would help ease of doing business, reduce confusion and multiple taxation.

What do you think about IT outsourcing in Nigerian business organizations today?

Outsourcing has been practiced for a long time for most companies, but the onset of the Internet has allowed it to bloom and become bigger as the years go by. If you want to have the advantage when it comes to your business, we recommend finding the right outsourcing company who can provide you with extra help tailored for you. When you work with an independent outsourcing firm that understands your business, you do not need to hire an individual expert as your staff, instead, you can outsource those functions and business objectives and an have access to a larger team with much more experience than a single person. Our clients are from many different non-IT industries and have realized that they want to leave the IT management to a competent firm such as Netcom and focus on their core competencies.

How would you rate Nigeria’s IT industry?

The IT industry in Nigeria has greatly developed. Previously IT firms were doing “Box Shipping”, back then companies were selling software to clients and then “off they go”. The issue of support was on the downside as of then, but as of today that has improved. The Nigerian market has evolved and companies today are demanding high quality after support. Today, we have IT outsourcing services where businesses outsource their IT needs to competent service provider. That is how matured the IT market is. In NETCOM we have excellent support and we don’t believe in selling only products, we ensure that it is coupled with robust support.

26

Tuesday 13 August 2019

BUSINESS DAY

BDTECH

E-mail: jumoke.akiyode@businessdayonline.com

What Samsung did differently with the new Galaxy Note 10 series the device using gestures with the S Pen. By opening up the Air actions SDK, developers can create customised controls that give users the ability to play games or use their favourite applications using gestures.

Stories by JUMOKE AKIYODE-LAWANSON

S

amsung has unveiled the Galaxy Note10 and Note 10 plus, a new line of premium smartphones that combines elegant design with powerful performance and productivity tools to help users make the most of every moment.

Packed with several creativity tools, enhanced S Pen and pro-grade camera and inspired by a generation that flows seamlessly between work and life, Samsung says the Galaxy Note10 gives users the freedom to work the way they want and showcase their creative spirit, all on-the-go.

“From the very beginning, the Galaxy Note has stood for the best-of-thebest technologies and features. The Galaxy Note10 re-imagines this promise for the modern Note fan who uses their smartphone to take their productivity and creativity to the nextlevel, and who effortlessly flows between ideas and endeavours at a moment’s notice,” said David Suh, managing director, Samsung Electronics West Africa. “Every element of Galaxy Note10 was designed to

L-R: David Suh; managing director, Samsung Electronics West Africa, Bankole Wellington (Banky W); Samsung brand ambassador and Adetunji Taiwo; head, information technology & mobile, Samsung Electronics West Africa, at the launch of the Samsung Galaxy Note 10 into the Nigerian market on Wednesday July 8, 2019.

help users achieve more.

Whether they’re finishing a big project for work, capturing and editing a video, or playing their favourite mobile game, the Galaxy Note10 will help them do it faster and better,” Suh added.

For the first time ever, the Galaxy Note comes in two sizes. The Galaxy Note10 opens up the Note to users who want the power of the S Pen and ultimate productivity in a compact form factor, packing a 6.3inch cinematic infinity

display into the most compact Note yet. The Galaxy Note10+ features the biggest Note display ever with a 6.8-inch cinematic infinity display.

Unique features: Handwriting to text: The Galaxy Note10 brings a powerful new capability to the re-designed, uni-body S Pen. Now, users can jot down notes, instantly convert their handwriting to digital text in Samsung Notes, and export it to a variety of different formats,

including Microsoft Word.

Users can now customise notes by shrinking, enlarging, or changing the colour of the text. In just a few taps, meeting minutes can be formatted and shared; bursts of inspiration can quickly become editable documents.

Evolution of the S Pen: Note10 builds on the Bluetooth low energy-enabled S Pen capabilities introduced on the Note9 by adding air actions, allowing you to control certain aspects of

Samsung DeX for PC: Galaxy Note10 extends Samsung DeX’s capabilities, making it easier for users to work between their phone and a PC or Mac. With a simple, compatible USB connection, users can drag and drop files between devices, and use their favourite mobile apps with a mouse and a keyboard, while keeping their data secure on their phone through Samsung Knox.

Link to Windows: Galaxy Note10 integrates link to Windows directly into the quick panel. With one click, users can connect to their Windows 10 PC. There, they can see notifications, send and receive messages, and review recent photos without pausing to look down at their phone.

Pro-grade camera: With the Galaxy Note10, content creators and everyday users alike can use state-of-theart tools to capture stunning video and photos—allow-

ing their channels, stories and posts to stand out and make an impact. Featuring a combination of advanced imaging technology and software, the Galaxy Note10 elevates mobile videography and photography to the next level.

With LTE and 5G-ready options, Note10 users can take full advantage of their carriers’ fastest speeds.

Galaxy Note10+ 5G harnesses the full power of the next generation network for streaming high resolution video, downloading content hyper fast, and streaming graphics-heavy games in real time.

The Galaxy Note10 and Galaxy Note10+ will be available in Aura Glow, Aura White and Aura Black in stores and online from 9th September 2019. Customers in Nigeria can preorder for both devices starting from 6th August 2019 until 6th September 2019.

Samsung has also announced that for every Galaxy Note 10 or Galaxy Note+ pre-ordered, customers will receive a pair of Galaxy Buds worth NGN 45,000 and enjoy free screen repair discount worth NGN 70,000 which is valid till the end of 2019. Pre-ordered devices can be redeemed from 9th until 29th September 2019.

Techcode to strengthen cybersecurity ecosystem with South-East forum

T

echcode Nigeria, an indigenous cyber security company is hosting the second edition if the South-East Cyber Security Conference (SECYCONE 2019) to strengthen the security ecosystem and cyber security cluster within the region which is fast developing to become a base for young tech entrepreneurs.

The company which announced plans for the three-day event scheduled to hold from Wednesday 16th– Friday 18th October, 2019 in Enugu State, says the conference is being held in collaboration with South-East chambers of commerce with the aim of promoting cyber secu-

rity due diligence, audiences’ knowledge, awareness and understanding of the issues around cyber-crime in our global digital society.

The conference will attract cyber security professionals from various industries within and outside the SouthEastern region, including, financial services sector, insurance firms, telecommunications, the oil and gas, conglomerates, tech start-ups, financial technology (FinTech) companies, states and local Governments in the South-Eastern region, parastatals in the South East, the police, military/ para-military and others.

According to Nwogha Joshua, chief executive officer of Techcode Ni-

geria, the programme theme; “Strengthen the security ecosystem and cybersecurity cluster” is intended to digitally influence the cyberspace by offering the platform for discussion for participants, as well as various products and services that will help bridge the digital and information gap in Nigeria and indeed in West Africa.

“Cyber threats and attacks are constantly growing and becoming more sophisticated, dangerous and damaging. It is a top priority for businesses to protect their networks, computers, and information from unauthorized access and breaches”, he said.

Nwogha posited that SECYCONE 2019, the sec-

www.businessday.ng

ond edition South-east Cyber-Security Conference, is holding in Enugu State because of the State’s strategic and economic importance in the South-East.

He mentioned also that SECYCONE 2019 has the support of Governors of the South-Eastern States.

“SECYCONE 2019 is expected to have an audience of two thousand drawn from Southeast stakeholder; featuring SME clinic.

“Techcode Nigeria is eager to leverage Secycone to promoting the ease of doing business and Cyber security due diligence, audiences’ knowledge, awareness and understanding of the issues around Cybercrime in the global digital

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society in the region.”

The programme which aims to serve the governments and the private sector in the South Eastern part of the country especially is uniquely merged with Exhibition; Hackathon Competition to all tertiary Institution; SME Clinic and SouthEast Recognition Award.

(SERA) “We are confident that the 3-day event which is targeted at high level executives from across all the strata of human endeavour - banking, oil and gas, tech start-ups, financial technology companies, all tiers of government, telecommunications, logistics, retail, hospitality, the military, paramilitary, etc., which use the internet of things @Businessdayng

for doing their businesses, will live up to its billing as the most established and only dedicated security and public safety event to serve the government and private sector in the South-Eastern part of Nigeria.

The Keynote address would be delivered by James Agada, the former CEO of Computer Warehouse Group amongst other notable speakers lined up for the event including Yaniv Ovitz, Destiny Amana.

Nwogha further stated why the conference is a must attend for businesses adding that as enterprises and governments now provide most services online to their clients, the size of cyber-attack has grown exponentially.

Tuesday 13 August 2019

BUSINESS DAY

Investments

ENERGY INTELLIGENCE

Market Insight Companies Commodity Tracker Policy

OIL

GAS

27

PETROCHEMICALS

POWER

MARKET

Shale producers are after Nigeria’s Europe, Asian markets ISAAC ANYAOGU & DIPO OLADEHINDE

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igeria is struggling to sell its August crude loadings as shale producers having ran Africa’s biggest oil producer out of the US market, are now going after her traditional turf – oil markets in Europe and Asia.

U.S. oil exports surged 260,000 barrels per day in June to a monthly record of 3.16 million bpd. This is 10 percent of OPEC’s 29.42million barrels per day produced in July and almost twice Nigeria’s output in the period.

According to the U.S. Energy Information Administration data, Nigeria did not export a drop of oil to the US for three weeks in July. Worse still, Nigeria’s low sulphur crude grade that is easy to refine for petrol which confers on it some advantages have been all wiped out by shale producers from the US Permian basin.

Shale producers after taking over the US market which accounted for the biggest oil demand last year at about 540,000 bpd.

A Reuters report quoted IHS Markit data which states that Europe has imported around 46% of Nigeria’s oil since the beginning of 2019, India nearly 18%, and the rest of Asia about another 10%.

“They’re facing bigger competition from the U.S., and in the last few

weeks, U.S. exports have really picked up,” one major buyer of West African crude told Reuters.

As many as forty cargoes for export in August were still in need of buyers when Nigeria began publishing its preliminary programme for September exports beginning on Jul. 18.

This situation has stern implications for Nigeria’s economy. Africa’s biggest oil-producing country needs

the oil price to rise and in the worst case, remain steady at any price above the $60 benchmark of the 2019 budget which have an estimate of N6.97trillion revenue. The price decline has sparked a fresh wave of concerns on the implication to the federal government’s economic projections for 2019.

“An Oil prices below $60 will have an impact not just on Nigeria’s fiscal

numbers but also on external sectors account. It means our current account balance will swing into a deficit once again in 2019 which will further lead to capital outflow pressures from foreign investors,” Abimbola Omotola, analyst at Chapel Hill Denham management limited said.

Gbolahan Ologunro, an equity research analyst at Lagos-based investment firm, CSL Stockbrokers

Ltd said Nigeria is at risk of another recession, which is why the likes of IMF and World Bank have been clamoring for the need of government to set up its fiscal buffers in 2019 so as absolve shocks like this.

When oil prices found a floor around $40 in the first quarter of 2016, the Nigerian economy slid into a recession and the CBN began restricting scarce forex for what it considers important items and began to artificially prop the naira to maintain exchange rate stability. The long-term effect of these control is an economy with weak growth.

“Within six months if we don’t see an improvement in oil prices it means that foreign investors will begin to get worried and we might see a massive outflow of funds from our fixed income instruments or investment,” Ologunro told BusinessDay. The raging trade dispute between Washington and Beijing sent oil prices plunging earlier last week, with international benchmark Brent crude dropping to a seven-month low of $57 a barrel, the lowest since January and down 26 per cent since April.

Also, the International Energy Agency (IEA) said outlook for oil demand growth is “fragile, with a greater likelihood of a downward revision than an upward one,” citing fears of an economic downturn as the U.S.-China trade war casts a shadow over markets.

PROJECTS

Seplat delays long term oil and gas projects till 2020 DIPO OLADEHINDE

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igeria’s largest listed Oil & Gas firm by market value Seplat Petroleum Development Company Plc has announced delays in its long term oil and gas projects till 2020.

In its consolidated financial results for the period ended 30 June 2019, Seplat announced it has diverted attention from its long term projects to short term projects which lead to a downward revision of its 2019 CAPEX to $150 million.

“Three planned exploration / appraisal wells targeting longer term oil and gas production together with the Oben and Sapele LPG projects have been deferred into 2020 with the current focus on shorter term oil and gas production gains,” Seplat said.

While also giving an update on Oben processing hub in western Niger Delta, Seplat announced it’s reached an agreement with Nigerian Petroleum Development

Company (NPDC’s) Operating Committee to back into their right to 55percent of the gas plant expansion of 375MMscfd.

Seplat noted that payment of $168 million was agreed between the parties, with $67 million being booked in H1 2019 as gas tolling revenues while the final balance of $101 million will be paid and reflected in the Q3 results once the transfer of NPDC’s 55percent interwww.businessday.ng

est has been concluded.

“Work is on-going at the Sapele Gas Plant upgrade and which is expected to be completed in H2 2020,”Seplat said.

Out of a total $120 million, Seplat and Nigerian Gas Company Limited (NGC) will each contribute a further S$60 million equity investment over the remainder of 2019 and Q1 2020 with $280 million of debt funding to be finalized for

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ANOH processing hub in Eastern Niger Delta.

Seplat admitted that the Group is exposed to credit risk from its sale of crude oil to Mecuri as the off-take agreement with Mercuria runs for five years until 31 July 2020 with a 30 day payment term.

“The Group is exposed to further credit risk from outstanding cash calls from Nigerian Petroleum Development Company (NPDC) and National Petroleum Investment Management Services (NAPIMS),” Seplat said.

Seplat’s revenue from contracts with customers in the period rose by 3.98 percent on a year-on-year basis to N108.97 billion, thanks to N20.53 billion realised from gas tolling and recognised for the first time which resulted to increased net income margin of 42.61 percent, the highest in 6 years.

Gas tolling is revenue received from the NPDC for processing its share of the gas extracted from OML 4, 38 and 41 from 2015 to 2018, according to Seplat.

A 98 percent decline in Se@Businessdayng

plat’s tax expense to N437 million boosted its after-tax profit, making it grow 152.6 percent to N37.5 billion in the first half of 2019 as against N14.8 billion in the same period last year.

Consequently, the firm’s profit margin, a profitability metric that measures how much profit a company generates from every naira of sales, increased to 34.41 percent from 14.16 percent. This implies the company generated N34 as profit from every N100 realised from sales in the first half of 2019.

Meanwhile, Seplat announced its target to become Nigeria’s largest supplier of processed gas by 2021. Austin Avuru, chief executive officer Seplat disclosed this during an investors’ conference call monitored by BusinessDay. Avuru attributed a decline in production figures to the management decision to arrest decline production volume after nondrilling in 2015 and early part of 2016, stabilize production assuring that there will be significant growth in subsequent quarters.

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Tuesday 13 August 2019

BUSINESS DAY

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@Businessdayng

Tuesday 13 August 2019

BUSINESS DAY

29

ENERGY INTELLIGENCE ANALYSIS

Will Mele Kyari keep his word?

ISAAC ANYAOGU

S

ince his appointment as the group managing director of the Nigerian National Petroleum Corporation, (NNPC) in July, Mele Kyari has not lacked for visitors. Considering the vast patronage system his predecessor ran while he headed the corporation, this is understandable.

Guests have included chairman and managing director of ExxonMobil companies in Nigeria, Paul McGrath, the Ambassador of the Republic of Turkey to Nigeria,

Melih Uluren, NLNG Management team, led by its Managing Director, Tony Attah President of the Dangote Group, Aliko Dangote and even journalists who call themselves association of energy reporters have visited.

After each visit, NNPC spokesperson, Ndu Ughamadu dutifully releases a manicured version of the barebones of the discussions.

This is expected as much of these discussions border on buying Kyari’s commitment to previous agreements reached with his predecessor, forging new relationships or just taking a measure of

the man.

On the few occasions, Kyari had interacted with the public, however, he appears measured, even thoughtful. Traits not often associated with someone who led a group of oil workers union.

But after 28 years with the NNPC, Kyari surely knows where all the bones are buried – being taciturn will come naturally.

The new NNPC boss is also saying all the right things. He assured ExxonMobil that NNPC will pay its share of cost of production in joint venture agreements. He told NLNG that NNPC will support

Kyari

it to meet its October timeline for Train-7 FID and he assured NEITI’s Waziri Adio of NNPC’s commitment to transparency.

Analysts say though Kyari is a systems man, he is a quiet reformer. His team opened up NNPC’s commodity trading to government scrutiny and he replaced the corrupt-ridden crude-swap arrangement for the Direct Sales and Direct Purchase (DSDP) arrangement of petroleum products.

Yet, the commitment he is making during these visits are not exactly different from the ones his predecessor made and failed to deliver. Maikanti Baru, went on to publish a 12 point programme for

the NNPC. Suffice to say, if they were successful Nigeria would have stopped importation of petrol by 2019, NNPC would have an audited account and the refineries would be producing at optimal capacity, putting an end to wasteful subsidies. While there would be a litany of excuses to offer, Baru’s sun has set in the NNPC, but despite all the pomp, he failed to deliver on the things that really mattered.

While Kyari continues to meet stakeholders and make commitments, he should realise that if he is allowed to fully have his day in the sun at the NNPC, he would be held accountable for these commitments.

Investment

Shell, Seplat on course for gas expansion STEPHEN ONYEKWELU

S

uper oil major Shell, and Nigerian independent producer, Seplat Petroleum are both on course to expand gas projects in Nigeria.

Shell has initiated a bid process comprising engineering and construction work on its major HA gas project off Nigeria, which is set to involve a significant three-platform complex in shallow water linked to a floating storage and offloading vessel.

The Anglo-Dutch giant aims to take a final investment decision on the HA project in the fourth quarter of 2020 or earlier, with first gas due to flow in 2023 or 2024 at up to 250 million cubic feet per day.

In addition, the development in oil mining licence (OML) 77 will produce about 30,000 barrels per day of oil and condensate.

For Seplat, despite lower gas prices, it recorded gas tolling revenues of $67 million from its sole risk funded Oben Gas Plant 375 million cubic feet per day expansion between June 2015 and the end of 2018, while posting additional gas sales of $72 million

in the first half of 2019.

While the Oben gas processing hub is expected soon to handle some 400 million cubic feet per day (MMcfd) on “a consistent basis” from the Oben and Sapele gas fields, the proposed Assa North-Ohaji South (ANOH) processing hub for tapping unitised gas reserves in OML 53 and OML 21 is targeting 300 MMcfd of first phase gas by the first quarter of 2021. www.businessday.ng

Work on the first of four Sapele Shallow wells started last month, to be brought on-stream in the fourth quarter while the remaining three wells will be batch-drilled this year with hook-up and production expected in early 2020.

Furthermore, Shell Petroleum Development Company (SPDC), the lead party in a joint venture with state-owned Nigerian National Petroleum Corporation, Total and

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Eni — is pre-qualifying players to participate in a design contest covering pre-front-end engineering and design work.

After submitting responses by 19 August, contractors who are chosen for and come through a pre-FEED competition will then undertake FEED studies and will later be involved in project execution.

Shell’s schedule calls for preFEED and FEED to be completed by the second quarter of 2020 ahead of a final investment decision.

The supermajor said it will only consider companies that have worked on engineering, procurement and construction in a similar environment and with a similar work scope, adding that these contracts must have had a headline size of at least $600 million.

“Tenderers without demonstrable experience covering the entire chain of activities from pre-FEED through FEED and to full execution will not be considered,” according to SPDC’s pre-qualification documents.

In 2018, the Nigerian National Petroleum Corporation signed agreements on the Seven Critical Gas Development Projects. @Businessdayng

The projects were projected to bring 3.4 billion cubic feet per day of gas on line by 2020. DeltaAfrik and Worley Parson, as well as Crestech with Penspen, were hired as project management consultants.

NNPC said “the projects would not only bridge the projected shortfall in supply upon completion, but would also signal the beginning of the process of closing the demand-supply gap in the domestic gas market.”

The projects included the 6.4 trillion cubic feet (tcf) unitised gas fields of Samabri-Bisseni, Akri-Oguta and Ubie-Oshi; development of the 4.3tcf Assa North/Ohaji South field; and the development of NPDC’s OMLs 26, 30 and 42, with 7 tcf.

Others are 2.2 trillion cubic feet (tcf) Shell Petroleum Development Company gas supply to Brass Fertilizer Company, the cluster development of the 5tcf OML 13 to support the expansion of Seven Energy Uquo Gas Plant and the cluster development of the 10tcf Okpokunou/ Tuomo West in OMLs 35 and 62 are also part of the initiative. Partners include Shell Petroleum Development Company, Seplat Petroleum Development Company, and Oando.

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Tuesday 13 August 2019

BUSINESS DAY

OFFGRID BUSINESS NEWS

Owners of Guinness Nigeria is pledging $219m Azuri Technologies partners for clean power in Nigeria, here is why with Imperial College London to train future engineers

DIPO OLADEHINDE

B

ritish multinational alcoholic beverages company and owners of Guinness Nigeria, Diageo has unveiled plans to invest $219 million in clean energy generation and water recovery across its brewing facilities in sub-Saharan Africa.

The move comes as global corporations come under pressure to reduce pollution and help fight climate change. Africa is Diageo’s largest region by beer volume, with Guinness its main brand, and the continent accounts for 13percent of overall sales.

“We’ve set ourselves ambitious environmental targets, aligned with the United Nations global SDG’s, and our efforts to deliver on these by 2020 continues at pace. Progress has included a 45percent reduction in our carbon emissions and a 44percent reduction in our water consumption over the past decade,” Diageo said in a press statement.

While admitting the firm remains committed in reducing its carbon emissions from direct operations by half by 2020, Diageo’s chief executive Ivan Menezes believes the plan is one of the largest single climate-related

BUNMI BAILEY

A

investments touching multiple sub-Saharan countries to have been made by a private sector firm to date.

“We have a responsibility as a local manufacturer and employer in Africa to grow our business sustainably – creating shared value - and this significant investment continues our work to pioneer sustainable solutions for our local supply chains,” Menezes said.

According to an email announcement, the first stage of the investment will see the beverage giant, which owns brands such as Guinness and Smirnoff, spend £50m of upfront capital on solar, biomass and water recovery facilities.

Diageo noted that biomass boilers using sustainable fuels would be installed at three breweries in Kenya and Uganda to replace

the dirty sources of energy production, while bamboo, wood chip and rice husk would create steam power, cutting emissions and creating jobs alongside local farmers who provide raw materials.

The world’s largest drinks maker will also add solar installations and water-recovery facilities at 11 brewing sites in seven countries including Nigeria, South Africa and Tanzania.

High initial cost presents barrier to renewable energy adoption in Nigeria STEPHEN ONYEKWELU

O

ff-grid and solar home systems have emerged as one reliable and environment friendly way to improve access to electricity for Nigerians, but a barrier to making this happen is the high cost storage, that is, batteries.

The cost of purchasing a solar power system varies with the capacity of each component and also the location. A 200-watt solar panel cost between N38, 000 N95, 000; while 300watt costs between N62000-N200, 000. This is already above Nigeria’s proposed minimum wage of N30, 000.

Although, the initial cost of purchase is high, benefits derived from using a solar system such as low operational cost, reduced, no electricity bills for consumers and solar panels durability of 30 years with minimal maintenance cost are factors worth considering.

“The cost is too high and I cannot afford it. It is a very good solution for the electricity challenge in Nigeria but if only solar companies can reduce their prices,” John Okafor, a Lagos businessman said. This was a similar complaint received from 8 out

of 10 people who would want to purchase solar panels but may not have the ability.

However, BusinessDay’s analysis showed that with an average of N12, 000 spent on fuel for a big generator monthly, about N144, 000 is used yearly. This excludes other generator maintenance cost which will include the cost of changing generator oil and other service costs. At the end of 1 year, over N300, 000 is spent on a generator. This excludes electricity bills for a year.

According to the World Bank, nearly 1.5 billion people are estimated to lack of electricity supply in the world, half are in Africa. Nigeria alone is estimated to have over 90 million people living without electricity supply.

This is the potential market for solar home systems.

Yet, Nigeria is endowed with solar power, which is energy derived from the sun with an average sunlight of eight hours, and more hours in the northern parts using photovoltaic (PV) cells or solar cells in a solar panel. Yet, few homes and offices make use of solar power system while the majority see it as a dream.

The components of solar pow-

er system includes solar panel, power inverter, deep cycle batteries, solar charge controller, and cables, fuses, and meter.

“I spend about N12000 monthly to purchase fuel for my generator because of the light issue in my area (Egbeda),” David Okoro, an Egbeda-based businessman said.

Solar panels may be expensive to install and maintain, especially for the battery as it entails a change of battery after a period of time; or a change of distilled water in the battery (for lead-acid batteries) and so it is tagged as “for the rich” as they possess the ability to purchase.

BusinessDay’s research shows that the high cost of installing solar power is mostly due to the 10 percent duty tariff imposed on solar panels by the Nigerian Customs Service which the government initially approved to be duty-free.

From 1999 to 2015, Nigeria spent N2.7 trillion to improve power supply in the country, Godknows Igali, former Federal Ministry of Power said in a statement.

Nigeria has an average installed capacity 12,522 megawatts (MW). According to a report from

ANALYSTS: Isaac Anyaogu (Team Lead), Stephen Onyekwelu, Dipo Oladehinde

Advisory Power Team, Office of the Vice President sent by email to BusinessDay, the country generates average electricity of 3,500 MWh per hour which is less than the installed capacity.

Apart from the cost, the majority of Nigerians in different states are ignorant of solar power system and its benefits. There are over 200 solar companies in Nigeria with an untapped market.

“In the next 5-10 years, I believe there will be a significant increase in the deployment of decentralised renewables in Nigeria and Africa especially in the off-grid areas ravaged by energy poverty. There is a huge market with a lot of economic potentials” Adesoji Adejolu, creative director at Ultrashot, a media production and event streaming company said on TweetChat under the aegis of #GridlessAfrica.

Access to finance is one of the major limitations to the rapid development of solar energy in Africa. But while traditional methods of obtaining project capital can be very limiting. Today’s world of micro-investors on platforms such as Kickstarter and Indiegogo has paved the way for new platforms like SunExchange.

zuri Technologies, a provider of pay-as-you go solar home solutions to off-grid households in Africa, says it is partnering the Imperial College London to train young students in Nigeria to become the country’s future engineers.

The training will involve a 5-day workshop entitled “Creative Futures Nigeria “ which is the brainchild of Sunday Popo-Ola of Imperial College London that introduces school students from all backgrounds to the potential of science, technology, engineering and mathematics through a series of activities that test their imagination and skills.

Vera Nwanze, Azuri general manager for West Africa, said that the company was delighted to be involved in the project which is designed to inspire Nigeria’s future engineers. She said during the workshop, students will have the opportunity to see and test cuttingedge solar technology that is connecting hundreds of thousands of off-grid households to the modern digital world.

“Creative Futures is designed to inspire pupils to achieve their full potential and encourage them to think about science and higher education. It is an interactive learning experience bringing together 9 to16-year-old pupils, role models, mentors and inspirational speakers,” said Sunday Popo-Ola of Imperial College London.

In addition to gaining insight into how the latest solar technology is changing lives in Nigeria, students will take part in challenges involving construction, mechanics and robotics in an effort to inspire them to become innovators of the future.

Workshops will be held in two locations in Kwara State. The first workshop, taking place this week, will include students from 6 primary schools from Esie, followed by another workshop in Apado Town starting August 14, 2019.

Azuri entered the solar market in Africa in 2012 and is now one of the leading providers of pay-as-you-go solar power lighting and TV systems, operating in Kenya, Tanzania, Uganda, Zambia and Nigeria.

Feedback: 07037817378, 08137433034, 08135447789

email: isaac.anyaogu@businessdayonline.com, stephen.onyekwelu@businessdayonline.com, oladehinde.oladipo@businessdayonline.com

Tuesday 13 August 2019

BUSINESS DAY

31

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PRICES FOR MAIN BOARD SECURITIES (Equities) BANKING ACCESS BANK PLC. 213,271.35 6.00 -0.83 108 3,636,180 UNITED BANK FOR AFRICA PLC 189,806.79 5.55 -4.31 137 8,047,119 ZENITH BANK PLC 513,332.67 16.35 -2.68 523 34,996,779 768 46,680,078 OTHER FINANCIAL INSTITUTIONS FBN HOLDINGS PLC 177,681.70 4.95 -1.00 138 2,006,002 138 2,006,002 906 48,686,080 TELECOMMUNICATIONS SERVICES MTN NIGERIA COMMUNICATIONS PLC 2,666,441.21 131.00 1.12 85 1,051,118 85 1,051,118 85 1,051,118 BUILDING MATERIALS DANGOTE CEMENT PLC 2,811,683.72 165.00 - 39 30,985 LAFARGE AFRICA PLC. 241,616.93 15.00 4.53 68 767,967 107 798,952 107 798,952 EXPLORATION AND PRODUCTION SEPLAT PETROLEUM DEVELOPMENT COMPANY PLC 288,337.83 490.00 - 6 145 6 145 6 145 1,104 50,536,295 REAL ESTATE INVESTMENT TRUSTS (REITS) SKYE SHELTER FUND PLC 1,710.00 85.50 - 0 0 UNION HOMES REAL ESTATE INVESTMENT TRUST (REIT) 10,175.81 40.70 - 0 0 UPDC REAL ESTATE INVESTMENT TRUST 14,408.66 5.40 - 0 0 0 0 0 0 OTHER FINANCIAL INSTITUTIONS NIGERIA ENERYGY SECTOR FUND 411.91 552.20 - 0 0 VALUEALLIANCE VALUE FUND 3,312.39 103.20 - 0 0 0 0 0 0 0 0 CROP PRODUCTION FTN COCOA PROCESSORS PLC 440.00 0.20 - 0 0 OKOMU OIL PALM PLC. 49,603.32 52.00 - 24 46,027 PRESCO PLC 44,800.00 44.80 - 4 2,568 28 48,595 FISHING/HUNTING/TRAPPING ELLAH LAKES PLC. 8,520.00 4.26 - 2 1,050 2 1,050 LIVESTOCK/ANIMAL SPECIALTIES LIVESTOCK FEEDS PLC. 1,230.00 0.41 - 6 186,908 6 186,908 36 236,553 DIVERSIFIED INDUSTRIES A.G. LEVENTIS NIGERIA PLC. 714.77 0.27 -6.90 3 156,713 179.01 0.46 - 1 5,500 JOHN HOLT PLC. S C O A NIG. PLC. 1,903.99 2.93 - 0 0 TRANSNATIONAL CORPORATION OF NIGERIA PLC 35,363.75 0.87 -2.25 159 10,200,908 U A C N PLC. 15,847.13 5.50 -4.35 51 716,927 214 11,080,048 214 11,080,048 BUILDING CONSTRUCTION ARBICO PLC. 711.32 4.79 - 0 0 0 0 INFRASTRUCTURE/HEAVY CONSTRUCTION JULIUS BERGER NIG. PLC. 27,192.00 20.60 - 11 31,496 ROADS NIG PLC. 165.00 6.60 - 0 0 11 31,496 REAL ESTATE DEVELOPMENT UACN PROPERTY DEVELOPMENT COMPANY PLC 2,910.20 1.12 - 5 11,510 5 11,510 16 43,006 AUTOMOBILES/AUTO PARTS DN TYRE & RUBBER PLC 954.53 0.20 - 0 0 0 0 BEVERAGES--BREWERS/DISTILLERS CHAMPION BREW. PLC. 13,231.85 1.69 - 1 1,000 GOLDEN GUINEA BREW. PLC. 242.22 0.89 - 1 200 GUINNESS NIG PLC 90,681.85 41.40 - 37 63,458 INTERNATIONAL BREWERIES PLC. 103,150.34 12.00 - 5 499,326 NIGERIAN BREW. PLC. 399,845.10 50.00 - 28 79,646 72 643,630 FOOD PRODUCTS DANGOTE FLOUR MILLS PLC 103,000.00 20.60 0.49 67 941,640 DANGOTE SUGAR REFINERY PLC 118,800.00 9.90 -1.98 44 392,523 FLOUR MILLS NIG. PLC. 62,735.81 15.30 -0.33 71 897,975 HONEYWELL FLOUR MILL PLC 7,533.69 0.95 -5.00 13 302,100 MULTI-TREX INTEGRATED FOODS PLC 1,340.10 0.36 - 0 0 N NIG. FLOUR MILLS PLC. 766.26 4.30 - 0 0 NASCON ALLIED INDUSTRIES PLC 37,092.14 14.00 - 1 50 UNION DICON SALT PLC. 3,321.07 12.15 - 1 10 197 2,534,298 FOOD PRODUCTS--DIVERSIFIED CADBURY NIGERIA PLC. 19,345.48 10.30 - 22 42,282 NESTLE NIGERIA PLC. 1,006,673.44 1,270.00 - 33 2,638 55 44,920 HOUSEHOLD DURABLES NIGERIAN ENAMELWARE PLC. 1,680.31 22.10 - 0 0 VITAFOAM NIG PLC. 5,366.12 4.29 - 6 35,390 6 35,390 PERSONAL/HOUSEHOLD PRODUCTS P Z CUSSONS NIGERIA PLC. 23,822.86 6.00 - 23 415,910 UNILEVER NIGERIA PLC. 183,840.17 32.00 - 14 27,919 37 443,829 367 3,702,067 BANKING ECOBANK TRANSNATIONAL INCORPORATED 133,034.25 7.25 -1.38 44 1,320,921 FIDELITY BANK PLC 43,462.20 1.50 - 33 664,120 GUARANTY TRUST BANK PLC. 779,926.25 26.50 -1.49 149 129,236,394 JAIZ BANK PLC 11,196.41 0.38 -5.00 11 502,300 SKYE BANK PLC 10,687.83 0.77 - 0 0 STERLING BANK PLC. 69,097.00 2.40 0.84 69 4,461,614 UNION BANK NIG.PLC. 196,565.08 6.75 - 16 69,604 UNITY BANK PLC 7,481.18 0.64 -8.57 8 596,953 WEMA BANK PLC. 23,144.68 0.60 5.26 25 1,490,294 355 138,342,200 INSURANCE CARRIERS, BROKERS AND SERVICES AFRICAN ALLIANCE INSURANCE PLC 4,117.00 0.20 - 0 0 AIICO INSURANCE PLC. 4,366.03 0.63 -10.00 8 211,159 AXAMANSARD INSURANCE PLC 18,900.00 1.80 - 4 104,950 CONSOLIDATED HALLMARK INSURANCE PLC 2,439.00 0.30 -9.09 4 538,274 CONTINENTAL REINSURANCE PLC 14,418.11 1.39 9.45 10 813,295 CORNERSTONE INSURANCE PLC 2,945.90 0.20 - 2 70,000 GOLDLINK INSURANCE PLC 909.99 0.20 - 0 0 GUINEA INSURANCE PLC. 1,228.00 0.20 - 0 0 INTERNATIONAL ENERGY INSURANCE PLC 487.95 0.38 - 0 0 2,636.44 0.36 - 4 71,555 LASACO ASSURANCE PLC. LAW UNION AND ROCK INS. PLC. 1,675.57 0.39 - 0 0 LINKAGE ASSURANCE PLC 4,160.00 0.52 - 0 0 MUTUAL BENEFITS ASSURANCE PLC. 2,458.00 0.22 - 3 116,100 NEM INSURANCE PLC 10,613.81 2.01 - 4 58,000 NIGER INSURANCE PLC 1,547.90 0.20 - 0 0 PRESTIGE ASSURANCE PLC 2,583.62 0.48 - 2 2,000 REGENCY ASSURANCE PLC 1,333.75 0.20 - 0 0 SOVEREIGN TRUST INSURANCE PLC 1,668.16 0.20 - 3 11,500 STACO INSURANCE PLC 4,483.72 0.48 - 0 0 STANDARD ALLIANCE INSURANCE PLC. 2,582.21 0.20 - 0 0 SUNU ASSURANCES NIGERIA PLC. 2,800.00 0.20 - 1 10 UNIC DIVERSIFIED HOLDINGS PLC. 516.46 0.20 - 0 0 UNIVERSAL INSURANCE PLC 3,200.00 0.20 - 0 0 VERITAS KAPITAL ASSURANCE PLC 2,773.33 0.20 - 0 0 WAPIC INSURANCE PLC 5,219.27 0.39 8.33 16 200,126 61 2,196,969

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MICRO-FINANCE BANKS FORTIS MICROFINANCE BANK PLC 11,799.67 2.58 - 0 0 2,698.23 1.18 - 3 83,445 NPF MICROFINANCE BANK PLC 3 83,445 MORTGAGE CARRIERS, BROKERS AND SERVICES ABBEY MORTGAGE BANK PLC 4,158.00 0.99 - 0 0 ASO SAVINGS AND LOANS PLC 7,370.87 0.50 - 0 0 INFINITY TRUST MORTGAGE BANK PLC 5,796.93 1.39 - 0 0 RESORT SAVINGS & LOANS PLC 2,265.95 0.20 - 0 0 UNION HOMES SAVINGS AND LOANS PLC. 2,949.22 3.02 - 0 0 0 0 OTHER FINANCIAL INSTITUTIONS AFRICA PRUDENTIAL PLC 7,100.00 3.55 3.80 32 1,111,534 CUSTODIAN INVESTMENT PLC 35,291.19 6.00 9.09 8 156,822 DEAP CAPITAL MANAGEMENT & TRUST PLC 660.00 0.44 - 0 0 32,674.47 1.65 -1.79 34 3,031,861 FCMB GROUP PLC. ROYAL EXCHANGE PLC. 1,131.98 0.22 - 0 0 STANBIC IBTC HOLDINGS PLC 390,165.07 38.10 - 12 7,988 UNITED CAPITAL PLC 11,400.00 1.90 4.21 78 4,289,044 164 8,597,249 583 149,219,863

HEALTHCARE PROVIDERS EKOCORP PLC. 1,680.29 3.37 - 0 0 UNION DIAGNOSTIC & CLINICAL SERVICES PLC 781.69 0.22 - 1 31,325 1 31,325 MEDICAL SUPPLIES MORISON INDUSTRIES PLC. 494.58 0.50 - 0 0 0 0 PHARMACEUTICALS EVANS MEDICAL PLC. 366.17 0.50 - 0 0 FIDSON HEALTHCARE PLC 9,388.62 4.50 - 2 521 GLAXO SMITHKLINE CONSUMER NIG. PLC. 9,925.77 8.30 - 2 453 MAY & BAKER NIGERIA PLC. 3,536.73 2.05 - 8 146,844 NEIMETH INTERNATIONAL PHARMACEUTICALS PLC 1,044.54 0.55 - 3 10,600 556.71 3.62 - 0 0 NIGERIA-GERMAN CHEMICALS PLC. PHARMA-DEKO PLC. 325.23 1.50 - 2 1,100 17 159,518 18 190,843 COMPUTER BASED SYSTEMS COURTEVILLE BUSINESS SOLUTIONS PLC 710.40 0.20 - 6 335,098 6 335,098 COMPUTERS AND PERIPHERALS OMATEK VENTURES PLC 1,470.89 0.50 - 0 0 0 0 IT SERVICES CWG PLC 6,413.06 2.54 - 2 1,100 NCR (NIGERIA) PLC. 626.40 5.80 - 2 11,900 TRIPPLE GEE AND COMPANY PLC. 346.47 0.70 - 5 440 9 13,440 PROCESSING SYSTEMS CHAMS PLC 1,220.98 0.26 - 7 156,743 E-TRANZACT INTERNATIONAL PLC 9,996.00 2.38 - 0 0 7 156,743 TELECOMMUNICATIONS SERVICES AIRTEL AFRICA PLC 1,215,762.01 323.50 - 6 151 6 151 28 505,432 BUILDING MATERIALS BERGER PAINTS PLC 1,985.29 6.85 - 13 148,050 CAP PLC 17,325.00 24.75 - 14 86,189 CEMENT CO. OF NORTH.NIG. PLC 184,009.01 14.00 - 12 19,850 MEYER PLC. 313.43 0.59 - 1 100 PORTLAND PAINTS & PRODUCTS NIGERIA PLC 1,959.74 2.47 - 0 0 PREMIER PAINTS PLC. 1,156.20 9.40 - 1 10 41 254,199 ELECTRONIC AND ELECTRICAL PRODUCTS AUSTIN LAZ & COMPANY PLC 2,256.91 2.09 - 0 0 CUTIX PLC. 2,747.66 1.56 0.64 17 1,158,557 17 1,158,557 PACKAGING/CONTAINERS BETA GLASS PLC. 29,873.33 59.75 - 2 1,210 GREIF NIGERIA PLC 388.02 9.10 - 0 0 2 1,210 AGRO-ALLIED & CHEMICALS NOTORE CHEMICAL IND PLC 100,754.14 62.50 - 0 0 0 0 60 1,413,966 CHEMICALS B.O.C. GASES PLC. 2,318.48 5.57 - 0 0 0 0 METALS ALUMINIUM EXTRUSION IND. PLC. 1,781.64 8.10 - 0 0 0 0 MINING SERVICES MULTIVERSE MINING AND EXPLORATION PLC 852.39 0.20 - 0 0 0 0 PAPER/FOREST PRODUCTS THOMAS WYATT NIG. PLC. 92.40 0.42 - 2 28,925 2 28,925 2 28,925 ENERGY EQUIPMENT AND SERVICES JAPAUL OIL & MARITIME SERVICES PLC 1,252.54 0.20 - 18 1,117,115 18 1,117,115 INTEGRATED OIL AND GAS SERVICES OANDO PLC 45,996.23 3.70 1.37 36 355,863 36 355,863 PETROLEUM AND PETROLEUM PRODUCTS DISTRIBUTORS 11 PLC 56,974.05 158.00 - 6 304,195 CONOIL PLC 12,248.25 17.65 - 20 79,790 ETERNA PLC. 3,390.78 2.60 - 19 251,400 FORTE OIL PLC. 22,142.18 17.00 1.19 77 1,047,502 MRS OIL NIGERIA PLC. 6,354.80 20.85 - 0 0 TOTAL NIGERIA PLC. 38,977.11 114.80 - 25 15,409 147 1,698,296 201 3,171,274 ADVERTISING AFROMEDIA PLC 1,820.01 0.41 - 0 0 0 0 AIRLINES MEDVIEW AIRLINE PLC 17,551.17 1.80 - 1 100 1 100 AUTOMOBILE/AUTO PART RETAILERS R T BRISCOE PLC. 341.14 0.29 - 0 0 0 0 COURIER/FREIGHT/DELIVERY RED STAR EXPRESS PLC 2,806.00 4.76 - 3 155 TRANS-NATIONWIDE EXPRESS PLC. 361.01 0.77 - 1 200 4 355 HOSPITALITY TANTALIZERS PLC 642.33 0.20 - 0 0 0 0 HOTELS/LODGING CAPITAL HOTEL PLC 4,723.78 3.05 - 0 0 IKEJA HOTEL PLC 3,035.04 1.46 - 1 5,000 TOURIST COMPANY OF NIGERIA PLC. 7,862.53 3.50 - 1 100 TRANSCORP HOTELS PLC 41,042.18 5.40 - 0 0 2 5,100 MEDIA/ENTERTAINMENT DAAR COMMUNICATIONS PLC 4,800.00 0.40 - 5 81,636 5 81,636 PRINTING/PUBLISHING ACADEMY PRESS PLC. 211.68 0.35 - 2 3,760 LEARN AFRICA PLC 1,080.03 1.40 - 8 35,291 STUDIO PRESS (NIG) PLC. 1,183.82 1.99 - 1 1,000 UNIVERSITY PRESS PLC. 690.26 1.60 - 6 20,350 17 60,401

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Tuesday 13 August 2019

BUSINESS DAY

AVIATION GUIDE

in association with

How Dana Air is deepening commitment to Corporate Social Responsibility across Nigeria …concludes free prostate, breast cancer screening for over 3,000 Stories by IFEOMA OKEKE

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ana Air, one of Nigeria’s major airlines has continued to deepen its commitment to Corporate Social Responsibility (CSR) across Nigeria with its dedication to various humanitarian projects. One of such is its just concluded free prostate, breast cancer screening for over 3,000 people.

After the successful conduct of free prostate and breast cancer screening for over 3,000 men and women in partnership with Project Pink Blue and Acts Foundation, Dana Air has announced that it will partner Rotary Club to conduct another blood donation camp this year.

Kingsley Ezenwa, the Media and Communications Manager of Dana Air, while during the conclusion of the Port Harcourt Cancer walk said, “the result of this fight against cancer has been amazing. The awareness of this scourge is very low among Nigerians and there is need for urgent reorientation and increased awareness.

Daily, 15 men die of prostate cancer, 25 women of cervical cancer and 30 of breast cancer.

“We are delighted that Nigerians are taking advantage of this free cancer screening that we are presently conducting in PH and we can

only thank our guests for their commitment and support to this fight. We also wish thank the good people of River state for coming out in their numbers for this walk.”

The Dana Air spokesman also confirmed that the airline will partner Rotary club again this year to conduct a blood donation camp just a in a bid to save lives and contribute greatly to the healthcare of Nigerians.

He noted that blood shortage has reached an unprecedented low in the country owing to the dearth of voluntary blood donors and the misconception of blood donation akin to the stereotypes amongst the people and In line with the commitment of the conglomerate to contribute to the community in a meaningful way, the initiative which is in its 2nd year will

hold again.

“First we are bringing in doctors to come enlighten our staff, interested partners, firms and individuals on the health benefits of donating blood, after which the date for the next blood donation camp will be announced.”

Ramesh Hathiramani, Chairman, Dana Group while addressing the camp during the conduct of the initiative last year said “our partnership with the Rotary Club on the blood donation program is consequent upon our increasing efforts to positively impact the communities we’re in. We foster a framework for collaboration with both organizations and the government to recognize local initiatives for expanding the involvement in social contribution initiatives for the country.

Emirates provides special inflight offerings to celebrate Eid Al Adha

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mirates is bringing the generosity and spirit of Eid Al Adha to all its customers with a special inflight offering from the 11th to the 14th of August.

Eid Al Adha is one of the most significant dates in the Islamic calendar, and one of the holiest celebrations. The name translates to ‘festival of the sacrifice,’ and it marks the end of the Hajj, the annual pilgrimage to Mecca.

Around the world, Eid Al Adha is usually celebrated with loved ones.

To celebrate the getting together of family and friends, an Eid menu with a touch of Middle Eastern hospitality will be served on board the Emirates A380 lounge. This includes Arabic coffee, a date cake and a selection of Emirati pastries. Chocolates in a specially designed Eid box from UAE- based gourmet chocolatiers, Forrey and Galland, will also be served to all customers in premium classes

on all routes.

A special menu with Arabic flavours will be introduced during the celebrations for customers in all classes. Depending on the route, customers in Economy Class could sample Emirates’ signature dish, a Chicken or Lamb Machbous, and enjoy a date cake for dessert.

In First and Business Class, customers have the choice of Lamb or Chicken Ouzi, a rice dish popular in the Gulf where the meat is slow cooked with roasted nuts and raisins.

A special Emirati-style King Fish with rice will also be offered select routes in Africa and Europe. These mains are complemented with an Arabic salad and premium customers can also choose from various Arabic desserts including chocolate fondant with labneh ice cream, date and almond nammoura made from semolina, or khabees served with Arabic coffee sauce and pistachio cream.

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As a global airline, Emirates celebrates events from all over the world and incorporates seasonal and regional flavours into its menus on board and in its lounges worldwide.

Next month, from 1st to 13th of September the airline with be celebrating the Hindu Holiday of Onam on its flights to and from Kerala with a special menu of vegetable sambar, chicken sukka and mutton pepper fry.

Meals will be served on a traditional banana leaf design and appetizers such as banana chips, sharkara varatti and curd chilli, and a dessert of palada pradhaman will be available.

Next month, Emirates will celebrate the Mid-Autumn Festival on select Asian flights.

The harvest festival is celebrated mainly by Chinese and Vietnamese communities on the 15th day of the 8th month of the lunar calendar. Traditional moon cakes, a staple during the celebrations will be served in all classes.

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“The gesture is rooted in the objective of Dana Group’s social responsibility to contribute to the development of society as an upright corporate citizen and staying true to the group’s unwavering commitment to saving lives. We further acknowledge the Rotary Club, Lagos Blood Bank and the SSVF for their dedicated efforts towards the care and treatment of local communities, notably their work to ensure that blood reserves remain ample and lives continue to be saved.”

Despite medical and technological advances, blood cannot currently be made. The only way of getting hold of it is via blood donations from donors. A report from the Federal Ministry of Health (FMoH) indicates that in most cases, the demand for blood far outweighs the supply. In Nigeria, about 500,000 units of blood are collected yearly out of the required 1.5 million units of blood.

Several studies have shown that this reluctance to donate blood is fuelled by religious, spiritual and superstitious beliefs. Dana Group supports the blood donation initiative via an employee blood donor drive themed ‘Blood Donation Camp – Save a life, Give Blood’.

The conglomerate’s actions were aimed at dispelling myths and encouraging other companies to follow suit to save the lives of many in need of blood

Arik Air, Radisson Blu partner to delight passengers with luxury hospitality

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rik Air, Nigeria’s leading airline and Radisson Blu Anchorage Hotel, Lagos are partnering to offer passengers discount on room rates as well as free room upgrade in the five star hotel.

The offer includes 10 percent off weekend rates, free room upgrade, 15 percent off buffet meals, 10 percent off spa treatment and 10 percent off beauty studio services.

To enjoy the offer, guests are required to present their Arik Air boarding pass not older than one month after flying at Radisson Blu Anchorage Hotel, Victoria Island, Lagos.

Starting from 9th to 31st of August, 2019, guests can enjoy the discount offer every day of the week and from 1st September to 31st December, 2019, the offer is available on weekends.

Speaking about the promotion, Roy Ilegbodu, Arik Air Chief Executive Officer, said: “We are delighted about this partnership which offers our loyal customers the chance to experience the five-star service of Radisson Blu Anchorage Hotel”.

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Tuesday 13 August 2019

BUSINESS DAY

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Tuesday 13 August 2019

BUSINESS DAY

NEWS

Local production of passports fails...

Continued from page 1 issued a directive for local production of all Nigerian epassports and related documentation, the directive has failed to kick off.

President Buhari had on July 11 issued a directive to the Nigerian Security Printing and Minting Company (NSPMC) to take over the production and personalisation of all Nigerian e-passports and related documentation.

A source within the Nigeria Immigration Service (NIS), however, told BusinessDay that the service is currently facing shortage of passport booklets as domestic production is yet to commence.

The new e-passports which were flagged off two months ago are currently in short supply, with a few copies only being issued in Ikoyi passport office and Abuja, the headquarters, making it very difficult for applicants who stay outside Lagos and Abuja to access the new passports.

“Immigration is finding it difficult to issue passports.

The old passport has a different contractor who is still being owed a lot of money and he is no longer supplying the old ones. Production of the new passport is given to an indigenous company who must sign some agreements with the old producers for seamless synchronisation but these have not taken effect,” the source said.

The source further disclosed that unless the Federal Government pays off its debts to the old contractors, it may be difficult to address the current passport scarcity which may get out of hand in a few weeks as a result of excess backlogs.

Another source close to NIS told BusinessDay that the service is playing politics with the new passport and only offering people who are willing to pay exorbitant amount against the official amount displayed on the website.

“After you make your payment online and you get to Ikoyi office to process the new passport, they tell you the passports are not available but when you show you are desperate to get the passport, they ask you to top up the money for you to get the passport out in time,” said the source who craved anonymity.

But Sunday James, NIS spokesperson, told BusinessDay that the service was not playing politics with the passports issuance.

“We flag off passports because it is mandated to be done. We are not playing politics with passports but we are carrying out our mandate

as a service. We flagged off at headquarters and Ikoyi.

Next one is Alausa, Kano and London. Directive has been given by the president for domestication of passport production in Nigeria, it has to be carried out,” James said.

“What matters most is that there is an agreement that must be signed. There is still an MOU to be signed.

The old and the new companies in charge of passport production must come to agreement. Every party has to bring what they have on ground,” he said.

The NIS had earlier announced that the old passports would run concurrently with the new ones until the old passports are gradually phased out.

BusinessDay had earlier reported that before the directive by the Federal Government, Nigeria through the NIS paid over N24 billion to Malaysia, Netherlands and South Africa for production of its international passports.

The figure was arrived at by multiplying the total number of passports issued in a year with the cost of production of each booklet.

According to BusinessDay calculations, passport offices across Nigeria issue nothing less than 4,800 passports daily. Further calculations show that for five working days in a year, passport offices across Nigeria issue 1,248,000 passports. Government spends about N19,500 for the production of one passport. This implies that the country paid N24,336,000,000 annually to Malaysia, Netherlands and South Africa to produce the booklets.

The passport booklets were being produced by Iris Smart Technology Nigeria (ISTL) through its parent company, Iris Corporation, based in Malaysia. A company in Netherlands was responsible for the biometrics and security details inserted into the passports, while South Africa provided the ink used for the printings done in the passports.

The Nigeria Immigration Service (NIS) generated N39.06 billion in 2018, according to the National Bureau of Statistics (NBS).

Sources close to NIS said the government can realise more than this amount if it produces passports locally.

NSPMC, the company now saddled with the responsibility of passports production, was established in 1963, with the mandate of producing the nation’s currency notes and coins for the Central Bank of Nigeria as well as security documents for Ministries, Departments and Agencies of governwww.businessday.ng

Godwin Obaseki (r), Edo State governor; Betsy Obaseki (2nd r), his wife; John Odigie-Oyegun (2nd l), former national chairman, All Progressives Congress (APC), and Victoria Oyegun, his wife, at Odigie-Oyegun’s 80th birthday thanksgiving service in Benin City, Edo State, yesterday.

How FG’s inaction deepens Nigeria’s declining...

Continued from page 1 not only snubbing Nigeria, old ones are also packing their bags and leaving.

The dearth of new investments and the exit of some partly explain why Nigeria has been stuck in what credit ratings agency, Moody’s, calls a “low growth cycle” characterised by weak, non-inclusive and jobless growth, since exiting recession in 2017.

Unemployment hit an all-time high of 23 percent in the third quarter of 2018.

That’s double the 10.8 percent rate in Q3 2015, in the space of just three years.

At the current rate, the number of unemployed and underemployed Nigerians (nearly 40 million in Q3 2018) could be the size of Germany, which is home to slightly more than 80 million people, by 2021.

“The investment climate is poor and every sector that can boost growth or create jobs seems hamstrung by one challenge or the other,” said Muda Yusuf, director-general of private sector advocacy group, Lagos Chamber of Commerce and Industry (LCCI).

LCCI draws membership from over 2,000 companies.

“A lot of investment in the oil sector is being held back by the lack of policy clarity,” Yusuf said, referencing the long-stalled passage of the Petroleum Industry and Governance Bill (PIGB) which investors say is a deterrent to new investment in the oil and gas sector.

“The manufacturing sector continues to suffer from decrepit infrastructure, same as the agricultural sector, which must now also grapple with insecurity,” Yusuf

added.

Also worrying is that for all the public trillions that have been thrown at the economy to reflate it, a third of which was borrowed locally from pension funds and banks, and internationally from foreign investors, the Federal Government has little to show.

Despite doubling its debt stock in five years, economic growth has been stuck at around 2 percent when it hasn’t contracted.

Even high-flying agriculture sector that used to post growth of 7 percent has deteriorated to about 3 percent. Despite the government’s many interventions in the sector, growth has been capped, thanks to rising insecurity that has kept many farmers out of work.

Bankers and economists say the government has not spent wisely and risks a debt crisis if it keeps borrowing to fund consumption.

They argue that an expensive petrol subsidy that gulps in excess of N1 trillion a year and a federal budget that prioritises recurrent expenditure and debt servicing over capital expenditure are a recipe for ballooning debt yet low economic growth.

What’s worse than the government’s misplaced spending is that businesses have been crowded out of the debt market and are not investing as required. One South African fund manager calls it double jeopardy for the economy.

The lack of robust reforms to stimulate growth has been met with ire by investors and companies, particularly the listed ones, are paying a heavy toll for that.

The abysmal stock mar-

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ket performance has been a useful indication of that ire.

Aided by a relative stable currency, the All Share Index (ASI) recorded a loss of 4.7 percent in dollar terms in the first half of 2019.

Even South Africa, with its many troubles this year, did much better in that period (+12.5 percent), while Egypt (+16.0 percent), and Kenya (+5.3 percent) as well as the MSCI Emerging (+11.9 percent) and Frontier Market (+9.2 percent) indices have also done better.

Stocks were down some 13 percent since the start of 2019, one of the world’s worst performers, according to Bloomberg data.

The much-awaited listing of the country’s largest telecommunications company, MTN Nigeria, brought some relief to the market. But it was short-lived, as investors longed for a catalyst to turn negative sentiments around.

It never came, and so many have since stormed out, as evidenced by net portfolio outflows of N42.8 billion as at May 2019, compared to a net outflow of N28.6 billion in the corresponding period of 2018.

Listed corporates are finding it difficult to shake off the general lull in the economy, by posting lower revenues and trading at record low prices on the NSE. “We note that around 50 percent of our coverage companies reported either a decline in profit after tax or a loss position in Q1’19,” a team of investment researchers at Cardinal Stone said in a note to clients.

“Post the election excitement, investors may have also redirected their attention to more fundamen@Businessdayng

tal concerns, so much so that even a positive wave of corporate listings failed to prevent the equity market decline,” the team, led by Phillip Anegbe, said.

Amid the gloom, policy analysts say President Muhammadu Buhari missed a glorious chance to provide a catalyst for stocks and the economy with ministerial appointments.

As if Nigeria’s situation isn’t worrying enough, oil prices have been sliding in recent days, hard hit by a trade spat between the US and China that has led to worries over lower global economic growth.

Lower oil prices, with Brent crude now below the Federal Government’s $60 per barrel 2019 budget benchmark for the first time since 2016, is also putting fresh pressure on the naira which the CBN has fought tooth and nail to defend.

Albeit marginal, the naira has weakened to the lowest level this year – N363.4 per US dollar in the marketreflective foreign exchange window, Friday, after pretty much holding steady at N360.

The CBN, with gross external reserves of around $44 billion, is tipped to have enough firepower to stave off any sharp depreciation in the short term.

But if oil prices fall below $40 per barrel, it becomes a different proposition.

Brent crude dropped Tuesday, as US President Donald Trump said planned trade talks with China next month could be called off, stoking concerns the deepening dispute will damage global growth. At $58 per barrel, oil prices are on course for the sixth straight day of trading below Nigeria’s budget peg.

Tuesday 13 August 2019

BUSINESS DAY

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news World Journalism Education Council: Buhari hails Akinfeleye’s election Tony Ailemen, Abuja

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resident Muhammadu Buhari has applauded the election of Nigeria’s foremost Mass Communications teacher, Ralph Akinfeleye, on his election into the World Journalism Education Council.

President Buhari in a statement signed by the special adviser to the President on Media and Publicity, Femi Adesina, said the Federal Government would always appreciate those who bring honour to the country, particularly in the areas of scholarship and other lofty endeavours.

The President commended the recent election of foremost Mass Communication teacher, Ralph Akinfeleye, a professor of Mass Communications, into the World Journalism Education Council, the first African to achieve such feat.

The election of the University of Lagos don in Paris, France, last week, witnessed the “hoisting of Nigeria’s flag proudly once again in the international arena,” the statement said.

Buhari urged Akinfeleye to serve diligently in the three-year term, in which he would represent not only Nigeria, but also the entire African continent.

The statement stated, “More than 600 participants from 70 countries participated in the World Journalism Education Congress, where Akinfeleye was elected.”

In a related development, President Buhari also condoled with family, friends, relations, as well as the diplomatic community over the passing away of Biodun Nathaniel Olorunfemi, former Nigerian ambassador to Namibia.

The President said the demise of “the re-engineering technocrat” was a great loss to Nigeria, as the departed had the unique record of successfully turning around many parastatals and businesses that were hitherto underperforming.

President Buhari recalled that Olorunfemi, as permanent secretary of the Federal Capital Territory, assembled technocrats to develop blueprint for the effective administration of FCT as a Mega City, and was also credited as one of the brains behind the development of the solid minerals sector in the country.

The deceased served as Ambassador to Namibia from 2012 to 2015, and the President remarked, “He left his footprints in the sands of time.”

NULGE urges chairmen to comply with NFIU guidelines on LG funds Innocent Odoh, Abuja

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he National Union of L o ca l G ove r n m e nt Employees (NULGE) has urged chairmen of the 774 Local Government Areas in the 36 states of the federation and the Federal Capital Ter ritory to henceforth comply with the Guidelines of the Niger ia Financial Intelligence Unit (NFIU) over the disputed issues of local government funds in the Joint State and Local Government Account.

National president of NULGE, Ibrahim Khaleel Abdulkadir, made this advice in an open letter to all the chair men across the 774 local government councils and the FCT made available to reporters on Monday o n th e n e e d to comply with the NFIU guidelines.

The NFIU in May drew up guidelines to ensure direct allocation of funds to local government from the Federation Account to ensure financial autonomy of the local councils. The NFIU guidelines bar re d t h e 3 6 s t at e s g ove r n o r s from interfering with statutory allocation accruing to the Local governments directly from the Federation Account.

The NFIU guidelines took effect from June 1, 2019. In June, a Federal High Court in Abuja also refused to restrain the NFIU from implementing its guidelines on the Local government funds as requested by the governors. Justice John Tsoho

r uled that the Joint Account should only be used to distribute allocation account to the local councils directly. No higher ruling is yet to be made on the matter so far.

Provision 9 of the NFIU guidelines stipulates that “ i t ’s h e r e b y p r o v i d e d that any public officer anywhere in the country and/or any private citizen found undermining or violating these guidelines will be investigated and prosecuted under the NFIU Act 2018, the ML(PA), 2011(as amended), EFCC Act, 2004 and the ICPC Act, 2000”.

The NULGE president therefore warned that any officer of the Local Government who “blindly follows the instruction of governors to transfer or divert local government funds to non-local government projects will be held personally liable.

He said further that from the pronouncements and actions the state governors are “still as determined as those before them to continue the looting of the local government resources with their stranglehold on these joint accounts.”

He cautioned the leadership of local council chair men, treasurers of councils and directors g e n e ra l s e r v i c e s o f a d ministration to exercise a high degree of restraint in carrying out directives of state governors in releasing any funds whatsoever through back channels to organisations or agencies of state governments. www.businessday.ng

L-R: Baba Adinni of Lagos, Sheikh Abdul Hafeez Abou; Secretary to the State Government (SSG) Lagos, Folashade Jaji; First Lady of Lagos State, Ibijoke Sanwo-Olu; head of service, Hakeem Muri-Okunola; wife of the deputy chief of staff to Lagos State governor, Yewande Soyannwo; her husband, Gboyega Soyannwo, and Chief Imam of Lagos, Sheikh Sulaiman Abou-Nolla, during the Eid-el-Kabir (Ileya) celebration at Lagos House, Alausa, Ikeja, Lagos.

African fintech leader enters UAE market HARRISON EDEH, Abuja

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eading African payment gateway Innovate 1 Pay announced on Tuesday that it is launching its Dubai office, bringing easy and seamless money transfer and payment services to African expatriates in the region.

A ma rke t l ea d e r o n th e African continent, Innovate 1 Pay, is licensed by the Central Bank of Nigeria to provide services including international money transfers and wholesale foreign exchange management as well as being the exclusive distributor of foreign currency to Bureau de Change (BDC) operators in Northern Nigeria.

Africa is set to surpass China and India as a job market by 2040, and with the recent visa reforms in the UAE, Dubai has emerged as an attractive destination for Africans to pursue career advancement and pro-

fessional fulfilment. Innovate 1 Pay’s secure and convenient payment gateway and financial services platform, which integrates seamlessly between Dubai and several African nations, looks set to emerge as the solution to address this expanding market segment and its unmet needs.

Mahmood Ahmadu, chairman, Innovate 1 Pay, said: “With the maturing of financial markets in Africa, we have expanded our presence to a total of 56 countries currently, and with the promise that the new UAE visa regime holds for African professionals, we believe the prospects for growth in addressing this demographic is very promising indeed.

“The next generation of financial services needs to reflect customer expectations around secure and quick transfer of funds. Our relationship with government bodies and comprehensive presence in the African

Ibadan Disco resolves to improve services Olusola Bello

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anagement of Ibadan Electricity Distribution Company (IBEDC) has reiterated the company’s resolve to continue to do everything within its capacity to improve service.

According to John Ayodele, chief operating officer of the company, in a press statement, appealed to customers to observe critical safety measures like staying clear of electrical installations and powerlines, proper supervision of children to prevent domestic and electrical accidents, switching off all electrical appliances not in use and not engaging quacks or self help to fix faults.

Ayodele, who made

this promise in his goodwill message to it customers, Muslims and other Nigerians during the Eid-el-Kabir celebration, highlighted the sacrificial spirit of the season and implored all to emulate that for a better Nigeria.

He also appreciated the customers who attended the various town hall meetings across its franchise on the newly introduced Meter Asset Provider (MAP) scheme, created to bridge the huge metering gap in the power industry.

He also advised motorists to avoid driving under the influence of alcohol and observing traffic rules to prevent collision with electric poles so as to ensure an accident free celebration.

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market positions Innovate 1 uniquely in being able to leverage these strengths, and amplify them with the use of appropriate and user friendly technologies.”

The impressive performance of Innovate 1 Pay represents the tremendous room for growth and expansion that exists at the intersection of increasing demand, market growth and the outreach potential of techenabled services.

The company was universally lauded for its efforts to empower financial inclusion at the recent Central Bank Payment Conference in Berlin, which included representatives from the European Commission, the Federal Reserve, Deutsche Bundesbank, Visa, and the Assistant Governor of Australia’s Reserve Bank, among others.

At a forum featuring nearly 200 thought leaders representing a hundred financial organisations and more than 50 central banks

from around the world Innovate 1 Pay created huge interest and stood out among a field of exhibitors that included a stellar lineup of stalwarts, such as Visa and Vocalink Mastercard.

Also felicitated as a recipient of the Euro-Knowledge ‘Most Innovative IT company of the year award’ at the British House of Lords, in April this year, Innovate 1 Pay is gaining global acclaim as a company that reconciles sterling business performance with outstanding social impact.

Anthony Nwachukwu, CEO, Innovate 1 Pay, said: “Africa is currently the second fastest growing continent, after Asia, and we are looking at an average GDP growth of 5 percent across the continent that has lasted a decade now.

“Africa is home to 40 percent of the people in the world who lack access to banking services and we at Innovate 1 Pay see our business mission within the context of this larger social goal.”

New Ministry of Energy and Electricity to execute Electrify Edo Project – Obaseki

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do State governor, Godwin Obaseki, says the decision to create the Ministry of Energy and Electricity from the Ministry of Energy and Water Resources is to enable the new ministry execute the Electrify Edo project.

The governor said, “The need to separate the Ministry of Energy and Electricity from the Ministry of Energy and Water Resources is because we have a project called Electrify Edo, which would be executed under the new ministry.”

He added, “Electricity has been privatised and we need to domesticate it in the state.”

The governor explained that the state government will place emphasis on completing ongoing projects, stressing, “We want toclosealltheprojectswestarted.”

The new ministry is headed

by Akin Agbaje, one of the new commissioners appointed by the governor.

The state is home to the Edo@Businessdayng

Azura Power plant, which feeds the national grid as well as the CCTEC Ossiomo Power Plant, which is expected to provide embedded power supply to government buildings, hospitals, streets on the Sapele Road axisofBeninCity,amongothers.

It is expected that with the coming on stream of the Ossiomo Power Plant, there would beneedtoregulatethelocalelectricitymarket,whichtheministry would be charged to execute.

Recall that the governor swore in the recently appointed commissioners after being cleared by the Edo State House of Assembly, and assigned portfolios to them. The names and portfolios of the new commissioners are: Marie Edeko, Ministry of Social Development; Damian Lawani, Ministry of Youth; Joe Ikpea, Ministry of Minerals, Oil and Gas, and Momoh Oise Omorogbe, Ministry of Budget and Economic Planning.

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Tuesday 13 August 2019

BUSINESS DAY

FINANCIAL TIMES

World Business Newspaper

ADAM SAMSON IN LONDON, BENEDICT MANDER IN BUENOS AIRES AND COLBY SMITH IN NEW YORK

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rgentina’s currency tumbled on Monday and the cost to insure against a debt default swelled after opposition candidate Alberto Fernández’s win in primary elections stoked concerns of a populist comeback in presidential elections that are just two months away.

The strong showing by Mr Fernández, whose running mate is former president Cristina Fernández de Kirchner, prompted speculation that market-friendly President Mauricio Macri will lose October’s election.

“At the moment, it’s looking like a first-round win for Fernández, and a first-round win by that ticket is unabashedly bad news,” said Greg Lesko, a portfolio manager at Deltec Asset Management.

“There is no silver lining to that.”

Eddy Sternberg, a portfolio manager for emerging markets debt at Boston-based asset manager, was equally downbeat. “My first reaction to the results was, there goes Argentina,” he said.

“The only chance Argentina had of becoming a normal country is shot.”

The Argentine peso dropped 22 per cent in early trading to around 60 against the US dollar, Refinitiv data show. The difference in the price at which traders were willing to buy and sell the currency was unusually wide in a sign of market stress, said Paul

Argentine assets fall after Macri stumbles in primary vote Peso tumbles and cost to hedge against debt default surges

Argentina’s Macri Concedes ‘Bad Election’ in Key Primary Vote ...

McNamara, a fund manager focused on emerging markets at GAM. Several of the country’s USdollar denominated bonds were under pressure. The price of one maturing in 2028 dropped to

59 cents on the dollar, from 77 cents on Friday, Bloomberg data show. Monday’s sell-off pushed the yield up to 14.3 per cent from 10 per cent at the end of last week. The yield on shorter-dated government bonds maturing in

2021 spiked to distressed levels of around 38 per cent.

The country’s century bond, which matures in 2117, tumbled nearly 17 cents to 56.4 cents on the dollar, the biggest fall since the debt was sold in 2017.

In a sign of the increased concern, the price to hedge against a default on Argentine debt using five-year credit default swaps jumped on Monday. The price was recently quoted at 38 percentage points upfront, from around 17 points on Friday, according to Refinitiv data. That means it now costs $38m to protect $100m of Argentine debt on top of regular payments.

Investors are concerned that if Mr Macri loses this autumn, it could mean that the economic stability his government ushered in recently will come to an abrupt end.

“The probable deterioration of sentiment and the resulting tightening of financial conditions in coming days and weeks may pose yet another headwind to the still fragile recovery of the Argentine economy,” said Tiago Severo, economist at Goldman Sachs.

He added: “More importantly from a political standpoint, renewed depreciation pressures on the peso may delay and perhaps even reverse the incipient decline in consumer price inflation, harming the image of the Macri administration and weighing further on the president’s reelection bid.”

Saudi Aramco to acquire 20% of Reliance’s oil refining unit Hong Kong airport cancels all flights as protesters flood terminal

Territory suffers worst blow to its economy since anti-government demonstrations began

World’s largest crude exporter deepens ties with fastest-growing energy consumer BENJAMIN PARKIN IN MUMBAI AND ANJLI RAVAL IN LONDON

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audi Aramco has agreed to take a 20 per cent stake in Reliance Industries’ refining and petrochemicals business, as the world’s largest crude oil exporter deepens its ties with India, the fastest-growing energy consumer.

The deal, which values the business at $75bn including debt, would be one of the largest foreign investment in India, according to Reliance chairman Mukesh Ambani, who disclosed the sale at a company shareholder meeting in Mumbai on Monday.

Mr Ambani, Asia’s richest man, said the deal would deepen ties between Saudi Aramco, the world’s largest oil producing company, and Reliance, which owns an enormous refinery and petrochemicals complex in Gujarat on India’s west coast.

“Now we have transformed our longstanding relationship of two decades, based on mutual trust, into a partnership of growth potential for many years to come,” said Mr Ambani. As part of the agreement, Saudi Aramco will provide Reliance’s refinery business with about 500,000 barrels of oil a day.

Reliance said terms of the deal have yet to be finalised and it is subject to regulatory approval.

Khalid Al Dabbagh, senior vice president of Finance, Strategy & Development at Saudi Aramco, said: “What has been announced today is a letter of intent.” He said on his company’s earnings call that the deal was at a “very early stage”, saying due diligence was still required and board approval needed.

Saudi Aramco has increased its investments in Asian refineries in recent years as it seeks to lock in sales of crude in the coming years. It has long sought a bigger presence in India to take advantage of the country’s rising oil demand.

Oil and gas majors are targeting India as they bank on the country’s swelling middle classes to propel energy demand. They are particularly trying to gain access to the retail fuels market. Last week, UK energy company BP said it had agreed to form a petrol station network and aviation fuels business jointly with Reliance in India.

Saudi officials included crown prince Mohammed bin Salman have visited India in recent months, while Mr Ambani visited Saudi Aramco’s headquarters in the eastern province of Dhahran earlier this year. www.businessday.ng

SUE-LIN WONG AND HUDSON LOCKETT IN HONG KONG

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ong Kong airport cancelled all flights on Monday afternoon after thousands of antigovernment protesters flooded into the main terminal.

The disruption at the international aviation hub is the most severe blow to the territory’s economy since demonstrations began more than two months ago.

The so-far peaceful occupation of the airport, which follows three days of smaller sit-ins in the arrivals area and protests over the weekend in other parts of the city, came as authorities in Beijing said the demonstrators had begun displaying “early signs of terrorism”.

The protesters on Monday said they were angry at police violence after officers fired tear gas into two subway stations and shot non-lethal rounds directly at civilians from short range in clashes on Sunday night.

“We want the government and police to apologise for what they did last night,” said Mary, 17, a high-school student wearing a yellow hard hat and black face

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mask. “Only when we truly impact the Hong Kong economy will the government actually listen to us.”

The police deny using excessive force and have accused protesters of using lethal weapons to attack them.

The anti-government protests, sparked by a proposed bill that would allow the extradition of suspects to mainland China for the first time, have plunged Hong Kong into its worst political crisis since the UK handed the former colony over to China in 1997.

The government has suspended the bill but stonewalled the protesters’ other demands, which include the full withdrawal of the proposed legislation, an inquiry into police violence and, increasingly, democratic reforms.

Hong Kong international airport, the world’s third-busiest measured by passenger traffic, said in a statement on Monday afternoon that check-in services had been suspended and all flights had been cancelled for the rest of the day.

The airport said it was working with airlines to reschedule flights starting from 6am on Tuesday “subject to resumption of airport operations”. @Businessdayng

In Beijing, a spokesman for China’s Hong Kong and Macau Affairs Office reiterated the central government’s support for the territory’s police in cracking down on the protests. “ Hong Kong has already reached an important crossroads and all those who care about its future should step up and say no to all violent elements,” said Yang Guang, spokesman for the office.

In Hong Kong, the territory’s most senior bureaucrat Matthew Cheung Kin-chung, the chief secretary, accused protesters of “destroying Hong Kong”.

Early on Monday evening, a stream of what appeared to be protesters left the airport on foot amid fears the police were about to clear the building by force. But many chose to remain to show their rage at what they alleged was police violence during Sunday’s protests.

Some activists covered their right eyes with bandages in a tribute to a woman who was shot in the eye during the Sunday demonstrations. The protesters plastered posters across the terminal comparing the current clashes to the 1989 Tiananmen Square massacre and Nazi Germany.

Tuesday 13 August 2019

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BUSINESS DAY

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NATIONAL NEWS

Our life has been made hell’: fury in Kashmir after India clampdown Loss of state’s autonomy and army lockdown will bring unrest in longer term, say locals JYOTSNA SINGH IN SRINAGAR AND AMY KAZMIN IN NEW DELHI

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ith her wedding day less than two weeks away, Kashmiri lawye r Mehak Qad r i should be in a cheerful frenzy of last-minute preparations. Instead, her nuptials are shrouded in uncertainty as the Kashmir Valley remains under a total security lockdown. Many weddings across the valley have already been cancelled or reduced to bare-bones ceremonies without any celebrations.

“We are caged here and our life has been made hell,” Ms Qadri said, inside a shuttered jewellery shop, where she anxiously examined a bridal necklace commissioned for the upcoming occasion. “This is wrong. This is so, so wrong.”

A week after Prime Minister Narendra Modi’s government abruptly revoked the legal autonomy of India’s only Muslim-majority state, Jammu and Kashmir, there is intense public anger in the Kashmir Valley at New Delhi’s nullification of the region’s longstanding rights to make its own laws.

To many Kashmiris, the move — and the demotion of the region from a fully fledged state into a union territory firmly under New Delhi’s control — violates the core premise of the erstwhile kingdom’s controversial accession to India in 1947, months after the end of British colonial rule over the subcontinent.

“I have hated militancy but I feel we have been stabbed in the back by the snatching of our rights,” said Raufiq Ahmed, a 70-year-old retired maths professor.

New Delhi has sent tens of thousands of extra troops to what is already one of the world’s most heavily militarised areas to prevent any public backlash against the change of the region’s status.

A telecommunications blackout and other restrictions mean there have been few reliable accounts of sporadic demonstrations that have occurred in Kashmir since the changes were announced or of any actions by the security forces.

New Delhi has not said how long the clampdown will last nor when communications will be restored.

Most shops and all schools and other businesses remain closed.

But residents of Kashmir, where the embers of a violent, Pakistanibacked separatist insurgency still smoulder, believe local fury over the changes will eventually lead to widespread unrest, despite the heavy military presence.

“Modi thinks he gave us a surprise, we will give him a bigger surprise,” said one angry young man, standing with a handful of friends on an otherwise deserted street in Srinagar’s normally bustling Lal Chowk.

Happymon Jacob, a professor at Jawaharlal Nehru University’s Cen-

tre for International Politics, warned that an upsurge in militancy was imminent in the conflict-scarred region, where people were already disillusioned with India. He said Islamabad was also likely to try to stoke trouble. Pakistan’s Prime Minister Imran Khan wrote on Twitter at the weekend that the revoking of Kashmir’s autonomy amounted to an “impending genocide”.

“So far, this is a well calibrated, and well strategised move to clamp down on any potential backlash from the valley,” Mr Jacob said. “You can do this for a few weeks, or a month or two or three.

But this is materially, politically and reputationally unsustainable.

Once you withdraw the currently existing militaristic policy, things will start going south.”

Kashmiri economist Haseeb Drabu, a former finance minister of Jammu and Kashmir, said New Delhi had undermined the credibility of those Kashmiris who opposed separatism and believed that Kashmiri aspirations could be fulfilled within India.

“Politically it’s very significant,” Mr Drabu said. “Now there is no middle ground left. You have converted the most empowered legislative assembly in India to something that has no power.

You have disenfranchised the population. You have erased the state. These are big things in the life of a people who once lived in a sovereign state.”

For Mr Modi’s ruling Bharatiya Janata party, revoking Jammu and Kashmir’s right to make its own state laws and to lift other restrictions, such as a ban on outsiders from buying property, was an article of faith. In a nationally televised address, Mr Modi argued the move would bring prosperity to a state that had so far been left out of India’s growth story.

But many Kashmiris scoff at this. Prior to the constitutional changes, New Delhi ordered all the estimated 20,000 Indian and foreign visitors in Kashmir to leave on the pretext of an impending terror attack, threatening what locals say was the strongest summer tourist season in six years.

“The money we make in just four months of the tourist season [from May to August] helps us get through the harsh winter months when life comes to a halt,” said a 65-year boat-owner on the picturesque Dal Lake, a popular tourist destination. “It is clear Modi wants Kashmir, not Kashmiri people.”

Some Kashmiri Hindus who support closer integration within India expressed scepticism about Mr Modi’s promises of sudden inflows of investment.

“I don’t think India Inc is going to jump in at the opportunity,” said one Srinagar hotel owner. “The government might try to bring in some infrastructure projects in Jammu and Ladakh region and showcase that to the Kashmiris but any thought of corporates rushing into Kashmir for business is quite far-fetched.” www.businessday.ng

New inquiry urged into Jeffrey Epstein’s French connections Government ministers and sex traffic campaigners want probe into alleged abusers and victims

VICTOR MALLET IN PARIS

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embers of the French government and campaigners against child trafficking have demanded an inquiry in France, in addition to the US investigation, into alleged sexual abuse of underage victims by Jeffrey Epstein, the financier who died in custody in New York at the weekend.

“The American investigation has brought to light connections with France,” said a joint statement on Monday by Marlène Schiappa and Adrien Taquet, junior ministers for women-men equality and for solidarity and health. “It therefore seems to us essential, for the victims, that an investigation be launched in France so that all can be revealed.”

Innocence en Danger (Innocence in Danger), a France-based child protection organisation that campaigns against sexual abuse, also called for an inquiry into allegations that French underage girls were abused and that some

of the perpetrators were French citizens.

“France is concerned about this affair because the investigations by the FBI have brought up the names of several French nationals,” it said. “Innocence en Danger has recently received confirmation from a reliable source that several victims of the prostitution ring created by Jeffrey Epstein and his accomplices also have French nationality.”

Epstein is reported to have kept a luxury apartment on the Avenue Foch in the heart of Paris.

An address book said to have been stolen by his late butler included the names of several contacts in the French capital.

Homayra Sellier, founder and president of IED, said it was known that French citizens “were involved as very close friends of Mr Epstein” and as victims. “We really have to put pressure on the prosecutor’s office so they open an investigation in France.”

The national prosecutor’s office and the French ministry of justice did not immediately comment on whether they would

launch an investigation.

Among Epstein’s associates was his longtime companion Ghislaine Maxwell, who has French as well as US and UK citizenship.

Virginia Roberts Giuffre has alleged in a civil suit that Epstein and Ms Maxwell, who is the daughter of the disgraced publisher Robert Maxwell, used her and other young women as a means to extract favours from and blackmail powerful people.

Ms Maxwell denies this.

The French government statement said Epstein’s death left many questions unanswered.

“His death should not deprive the victims of the justice that is their right. Justice is a vital condition for their recovery, and for better protection in the future for other young girls faced with these types of organised networks and these types of predators.”

Epstein, a 66-year-old money manager and multimillionaire, was being held in jail in Manhattan when he died in “an apparent suicide”, the US Department of Justice said.

Italians wait for the real Matteo Salvini to reveal himself An election would force him to think about policy rather than self-promotion BILL EMMOTT

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or once, Italy’s political crisis has come as a relief, not a shock. A relief, because on virtually every day of its current, 14-month-old government, the coalition partners, Five Star and the League, have been locked in acrimonious combat.

But a relief too because it means the League’s leader, Matteo Salvini, Italy’s supposed “strongman” and its widely presumed next prime minister, has finally done something decisive by calling for a vote of no confidence in his own government.

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Mr Salvini has often been termed the most dangerous man in Europe. For sure, he has made no secret of his admiration for Russia and its president, Vladimir Putin, and has been a critic of the euro. But strikingly little is known of what he thinks or wants to do, whether about foreign or domestic affairs, including Europe’s single currency. In government as deputy prime minister and minister of the interior he has proved remarkably dithering and timid, apart from successfully building his popularity by demonising immigrants and hogging as much attention as he can. @Businessdayng

Repeatedly, he has threatened a confrontation with the European Commission and other eurozone governments over Italy’s budget deficit, but each time has largely backed down. In May, when the League succeeded in winning 34.3 per cent of the vote in the European Parliament elections, nearly doubling its 17.4 per cent score in the 2018 national election and leaving Five Star far behind, he looked poised to demand early elections, but shrank back.

There wasn’t even a government reshuffle, despite an evident shift in the power balance inside the coalition.

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Tuesday 13 August 2019

BUSINESS DAY

FINANCIAL TIMES

COMPANIES & MARKETS

@ FINANCIAL TIMES LIMITED

Investment bank job cuts near 30,000 as outlook sours Falling interest rates, weak trading volumes and automation create brutal summer ROBERT ARMSTRONG IN NEW YORK

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lobal investment banks are shedding tens of thousands of jobs as falling interest rates, weak trading volumes and the march of automation create a brutal summer for the sector.

Almost 30,000 lay-offs have been announced since April at banks including HSBC, Barclays, Société Générale, Citigroup and Deutsche Bank. Most of the cuts have come in Europe, with Deutsche accounting for more than half the total, while trading desks have been hit hardest.

In New York City, jobs in commodity and securities trading fell 2 per cent in June from the year before, a loss of about 2,800 positions, according to the New York Department of Labor.

Bank executives are under pressure from investors to cut costs and protect profits. Since long-term US interest rates began to fall in November, the KBW index of US bank shares has fallen 5 per cent, while the S&P 500 has risen by 6 per cent. The Stoxx index tracking European banks has lost 16 per cent since November to hit a three-year low.

While the reasons given vary from bank to bank, there are signs that deeper trends, such as the increasing pile of debt paying negative interest rates, are forcing the sector to shrink.

“Clearly, the outlook for investment banking revenue is getting tougher,” said Andrew Lowe, a banks analyst at Berenberg. “It’s hard to make money as an investment bank in a zero or negative rates environment.”

Automated trading, passive investment strategies and consolidation of volumes by the biggest players have drained much of the profit from the trading of stocks and many kinds of futures.

Automation is also making inroads into more complex derivatives, commodities and bond trading. In 2018, the total revenues of the top dozen global banks from fixed income, currency and commodities trading dropped to 2006 levels, according to Coalition, a banking research firm.

Investment banks “are facing a structural change in their revenue profile”, said Ed Firth of Keefe, Bruyette & Woods. “The [banks] that will win will have the volumes, systems and computer power. How many people do you need?”

Banks are also bracing for the so-called Basel IV rules, which will increase banks’ capital requirements that will take effect in 2022.

The increased capital required will make trading less profitable for many banks.

At the banks that have formally announced cuts so far, the lay-offs amount to roughly 6 per cent of the total workforce.

US retailers ‘at war’ with suppliers over price increases Trump’s threat to impose tariffs on more consumer goods leaves industry anxious ALISTAIR GRAY IN NEW YORK

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resident Donald Trump’s plan to impose a new round of trade tariffs on Chinese imports is complicating US retailers’ relationships with suppliers as both sides prepare to haggle over prices in an attempt to protect profit margins.

While corporate America has put the threat of higher consumer prices at the forefront of its lobbying campaign against the duties, it is far from clear that the higher costs will flow straight to the checkout. Throughout the supply chain, companies are trying to maximise their negotiating clout to reduce the damage to their own bottom lines.

Jan Rogers Kniffen, a retail industry consultant, said it was already “internecine warfare” between retailers and suppliers. “It becomes more intense as costs start to increase.”

US business has already been dealing with three earlier waves of China tariffs, yet the planned fourth round — 10 per cent duties on $300bn of annual imports, starting next month — poses a bigger challenge to retail because it targets a broader range of consumer products.

Limiting the threat of higher consumer prices is the power of the biggest retailers such as Walmart, long adept at squeezing the best possible deal from suppliers. “It’s much easier for someone like Walmart to say ‘this is the price we will accept or we’ll walk away’,” said Jeff Lenard, vice-president of strategic industry initiatives at the National Association of Convenience Stores.

The rise of retailers’ own brands, known as private-label goods, had given the likes of Costco and Walmart even more control in negotiations, said Ken Harris, managing partner at Cadent Consulting Group. “They’ve been pushing back for a long time [against price rises],” he said.

The rise of internet shopping, however, has undermined retailers’ pricing power. Consumers can more easily compare products online.

Deep discounters Aldi and Lidl have made the retail business even more competitive in some categories.

Mr Kniffen said he doubted that the retail sector would be able to push up prices in response to the latest tariffs. He noted that the products targeted, from trainers to electronics, were largely discretionary, and consumers could postpone their purchase. www.businessday.ng

Authentic Brands’ licences generate $9.3bn in annual retail sales © Alamy

Deutsche Bank admits it faces struggle to revive IPO business Lender loses out to rivals in advising European companies on equity-related transactions OLAF STORBECK IN FRANKFURT AND STEPHEN MORRIS IN LONDON

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eutsche Bank faces an uphill battle to revive its struggling equity capital markets business, one of the bank’s top executives has admitted.

The German bank’s share of the market for advising European companies on initial public offerings, rights issues and other equity-related transactions plummeted to 1.5 per cent in the first seven months of the year, down from almost 5 per cent in 2018, according to Dealogic data.

“Our business is to a large degree driven by client perception,” Josef Ritter, Deutsche’s head of ECM Europe, the Middle East and Africa, told the Financial Times. “If a bank is perceived to get everything right all the time then it is much easier to win the next ECM deal.”

Christian Sewing, Deutsche’s chief executive, last month unveiled plans to cut 18,000 jobs and shrink the bank’s balance sheet as he refocuses Germany’s

biggest lender on its domestic retail operations and the bread and butter of corporate banking in Europe.

The bank has vowed to hold on to its ECM business even as its closes down its European equities trading business. That plan has prompted scepticism from rival banks which claim that a trading and sales staff are critical to successfully managing an IPO for a company.

“I don’t think you can successfully run an ECM business without equities trading,” a senior London-based banker at large US investment bank said.

Deutsche would lack “the finger on the pulse of the market” and hence would appear less attractive to clients.

Mr Ritter said Deutsche was retaining a “leaner and more focused” set of equity sales staff in specific areas where it though it had a competitive advantage or particular expertise, such as its European home market and higher-margin recapitalisation deal for struggling companies.

However, he acknowledged that “we have to explain a lot to clients and will need to convince

with the quality of our work”.

Revenues from the ECM business tumbled 35 per cent in the first half of the year to €118m from a year ago. Its slide down the European league tables for ECM has left Deutsche ranked 13th by revenue, trailing smaller non-European rivals such as Jefferies and Royal Bank of Canada.

Deutsche’s drop has been similarly steep in its domestic market. Its share of German ECM tumbled to 8.6 per cent in the first half of 2019, leaving it ranked fifth. Just six years ago, it was in the coveted top spot and controlled close to a quarter of the German market.

A top-five position in European ECM is unrealistic over the short term, but we definitely need to get back into the top 10,” said Mr Ritter.

Mr Ritter insisted the business could eventually overcome its current challenges, pointing to the successful €600m capital raise it led for German commercial real estate company Aroundtown a week after the lender announced the radical shrinkage of its investment bank.

Winner of Guatemala poll inherits unpopular US migration deal Centre-right Alejandro Giammattei has criticised ‘safe third country’ designation

ALAN HERNÁNDEZ PASTÉN IN GUATEMALA CITY AND REUTERS

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onservative Alejandro Giammattei swept aside his centre-left rival in Guatemala’s presidential election on Sunday, and now inherits an unpopular migration deal agreed with Washington by the former administration.

With preliminary results from more than 95 per cent of polling stations counted, the electoral tribunal declared Mr Giammattei the winner with almost 59 per cent of the vote, ahead of his centre-left rival, former first lady Sandra Torres,

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who secured 41 per cent.

The 63-year-old doctor and politician, who won at his fourth attempt to reach the presidency, will be sworn into office in January.

“We are confident that we have the support of the majority of the people to build a different Guatemala, but we know that the challenges are not easy,” Mr Giammattei said at a press conference after his victory.

“We have a divided country, with serious problems of misery and poverty, a country that is expelling its own people by the thousands. We know that it will not be easy.”

Both candidates had campaigned on platforms targeting @Businessdayng

violence, corruption and poverty in the country of 17.7m bordering Mexico. Fifty-nine per cent of the population live in poverty, a factor that, together with violent crime — which kills an estimated 4,500 annually — has prompted many Guatemalans to try to emigrate.

The vote was carried out amid uncertainty surrounding the widely criticised agreement with Washington that designates Guatemala a “safe third country” or buffer zone to take migrants trying to reach the US. With its own population struggling with poverty and a lack of adequate infrastructure, critics say Guatemala is in no position to accommodate migrants.

Tuesday 13 August 2019

FT

BUSINESS DAY

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ANALYSIS

Germany: AfD surge threatened by party disunity The hard-right party is well placed to gain regional seats but faces a power struggle between moderates and extremists GUY CHAZAN IN KÖNIGS WUSTERHAUSEN

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ermany, says Andreas Kalbitz, is a sleeping beauty that is about to be kissed awake. The handsome prince entering her chamber is the Alternative for Germany, a populist hard-right party that has thoroughly disrupted German politics.

“The AfD is the fresh wind that will put this country back on its feet again,” says Mr Kalbitz, to murmurs of approval from the burghers at Höncke’s Old Pub in Königs Wusterhausen, a small town in Brandenburg, who have gathered on a sweltering evening to hear him campaign.

Mr Kalbitz leads the AfD in Brandenburg, the region that surrounds Germany’s capital Berlin. It is a happy hunting-ground for the AfD: if polls are accurate, it could emerge as the most popular party in regional elections on September 1, even beating the left-of-centre Social Democrats which have governed this corner of East Germany since reunification in 1990.

Two other eastern regions, Saxony and Thuringia, are also choosing new parliaments this autumn and, as in Brandenburg, the AfD is set to make big gains. That is a major problem for the eastern political elite. Building effective coalitions in a fragmented landscape increasingly dominated by the AfD, which all the other parties refuse to work with, will

become a lot harder.

Mr Kalbitz says parties like Chancellor Angela Merkel’s Christian Democrats and the SPD have let down the people of the former communist east. “There has been a catastrophic loss of trust in the established parties and the AfD benefits from that,” he says. “People are attracted to clear positions and lively debate, and that’s what they find in the AfD.” His confidence masks an uncomfortable truth about the current state of his party. The AfD is in turmoil, inflamed by a long-running power struggle between relative moderates and radicals. Played out across Germany, it has featured smear campaigns, feuds on social media and public denunciations that have left deep scars and a trail of recriminations.

On one side of the conflict are the more conventional conservatives, many of them disgruntled Christian Democrats who abandoned the CDU in protest at Ms Merkel’s liberal policies, especially on immigration. On the other is the Wing, a hardline group led by Mr Kalbitz and Björn Höcke, one of Germany’s most controversial politicians. A firebrand whose rhetorical style has been likened — even by people in his own party — to that of Joseph Goebbels, Mr Höcke, who is the AfD’s leader in Thuringia, is adored in the east and loathed in large parts of the west, where he is seen as a dangerous nationalist.

Cash Trails: Workers abroad offer lifeline for Zimbabwe’s economy In the first part of this FT Series, we look at how remittances of cash, food and goods comprise nearly 10 per cent of Zimbabwe’s GDP JOSEPH COTTERILL IN JOHANNESBURG

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he laden Toyota Hiace minibuses and Isuzu pick-ups that depart from South Africa’s economic hub every day on journeys hundreds of miles north are a vital artery that helps to keep Zimbabwe’s broken economy alive.

As the shortage-plagued nation once ruled by Robert Mugabe has descended deeper into crisis this year, Zimbabwe’s border-crossing omalayitsha — which means transporters in the Ndebele language — have shuttled groceries, clothes and cash from Zimbabweans abroad to families facing inflation of 175 per cent at home.

Emmerson Mnangagwa, who succeeded Mr Mugabe as president in a 2017 coup, is attempting to shore up Zimbabwe’s fragile new local currency and rebuild empty state coffers. As he does so, remittances such as those brought into the country via this malayitsha bus system, are a crucial safety net.

They also show why, for countries such as Zimbabwe, remittances of food and goods — known as remittances in kind

— can be just as important as wiring money home. There is even a malayitsha app.

“There is no food that side — or there is, but it is too expensive,” said Florence Ncube, a 43-year-old cleaner in Johannesburg who sends food home to her family in Bulawayo, Zimbabwe’s second city, which she left a decade ago.

“It is better to buy groceries here” and send them home, she said.

Ms Ncube typifies Zimbabwe’s diaspora, which is millions strong after decades of turmoil.

Most are based in South Africa, doing jobs such as domestic work, but Zimbabweans can be found around the world.

The expats have become a powerful economic force back home, sending remittances that last year were worth at least $1.9bn, or 9.6 per cent of the nation’s GDP, according to the World Bank.

Economists estimate that a third of that total came from Zimbabweans in South Africa.

Even then these figures are likely to understate flows, since the malayitsha system and other informal channels are difficult to track. www.businessday.ng

Losing control of Venezuela-owned, US-based refiner Citgo would be a huge blow to Venezuela’s opposition © AFP

Venezuela sanctions order leaves Citgo’s future in doubt US-based refiner could be vulnerable if opposition skips $913m bond payment COLBY SMITH IN NEW YORK AND GIDEON LONG IN LIMA

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enezuelan opposition leader Juan Guaidó has proclaimed that sweeping new US sanctions targeting President Nicolás Maduro’s regime will protect Venezuela-owned, US-based refiner Citgo from seizure by creditors. But he may have spoken too soon.

Last week, US president Donald Trump announced a near-total economic embargo of Venezuela, the first such step against a western hemisphere country in more than 30 years. Mr Guaidó, the National Assembly president who is recognised by the US and more than 50 other countries as Venezuela’s interim president, was quick to home in on what he said was a key victory in the executive order.

“Given this measure, Citgo and all its assets are protected,” he tweeted. “Anyone who wants to benefit from the crisis will be driven away.”

Emboldened by the US order, Mr Guaidó’s parallel government has hinted it might skip a $913m payment due in late October to holders of a bond maturing in 2020 that was issued by state-owned oil company PDVSA, which is backed by a majority stake in Citgo.

“Our preliminary view is that the collateral will remain beyond the reach of the PDVSA 2020 bondholders, who remain in a very weak position, and the Venezuelan side should exploit this opportunity,” said an opposition lawmaker in Caracas with knowledge of the situation.

Venezuela has long been fearful of missing a payment on the debt — the country’s only bond not yet in default — since it could mean losing control of the jewel in the crown of PDVSA’s foreign assets.

To avoid this outcome, the National Assembly, led by Mr Guaidó, made good on a $71m interest payment in April.

While Alejandro Grisanti, a director on the ad hoc PDVSA board appointed by Mr Guaidó, sees the

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executive order as a “clear signal from the US administration that it’s seeking to protect Venezuelan assets in the United States,” he told the FT: “That doesn’t mean there’s no risk, and it certainly doesn’t mean that Venezuelans can do whatever they want with the debt burden they’ve inherited from the Maduro and Chávez governments.”

For Mr Guaidó, the failure to hold on to Citgo could be devastating, both for his teetering interim government, whose efforts to oust Mr Maduro have stalled, and for the country, which is mired in a deep humanitarian crisis exacerbated by tough sanctions.

However, others have disputed Mr Guaidó’s interpretation of the order — putting Citgo’s future back in doubt.

Law firm Cleary Gottlieb, which represents creditors holding roughly $9bn worth of Venezuelan debt, issued a statement last week saying it does not “see a basis” for Mr Guaidó’s conclusion about Citgo.

Based on existing legal guidance from the US Treasury’s Office of Foreign Assets Control, “it appears to us that the holders of the 2020 Bonds are still authorised to execute on their collateral,” the firm wrote. It also pointed to a previous Treasury Department licence that exempted PDVSA 2020 bondholders from sanctions, meaning they could still go after Citgo if Venezuela missed a payment.

“Pending any further changes to the General Licences or OFAC’s guidance, therefore, we believe that execution on the collateral securing the 2020 Bonds in accordance with their terms remain authorised.”

A Treasury official confirmed that interpretation: “Treasury’s authorisation and related guidance regarding the 2020 PDVSA bonds was not impacted by the [executive order] of August 5.”

A person close to Mr Guaidó’s team conceded this point, but added: “The original rationale was that blocking the 2020 holders from foreclosing on their collateral would only allow Maduro to default on the bond with impunity. @Businessdayng

“The US government was interested in increasing the financial pressure on the Maduro regime,” the person said. “All of that, however, was pre-Guaidó.”

Should creditors retain the right to seize Citgo, the person close to Mr Guaidó’s team warned of severe consequences.

“At this point the licence could operate to deprive the Guaidó government of one of the country’s most important external assets,” the person said. “That, in turn, will delay the eventual economic recovery of the country.”

For that reason, some observers expect the Treasury to clarify the scope of Citgo’s protection before October. “I don’t really see the Treasury allowing the 2020 bondholders to enforce their claim,” said Richard Cooper, a lawyer at Cleary Gottlieb who advises the bondholder group alongside Mark Walker at Guggenheim Securities.

“If they don’t change this, someone is going to get blamed for losing Citgo,” he added. “It would be a potentially big hit to the Guaidó team to lose Citgo under their watch.”

The big bondholder group, which proposed its own plan to restructure the country’s $150bn stack of defaulted debt last month, has suggested an alternative path forward.

“Our group has offered to help the Guaidó government find a market solution for the 2020 issue which would help Venezuela preserve control of Citgo and avoid the need for the Treasury to change their previous guidance on this issue,” said Mr Cooper.

This could include refinancing the payment due this year or the entire bond, among other options with the US government’s blessing.

The 2020 PDVSA notes — whose biggest holders include Londonbased investment firm Ashmore Group, BlackRock and T Rowe Price, according to data compiled

by Bloomberg — are now trading around 65 cents on the dollar, down from nearly 96 cents on the dollar in late January when the prospects of regime change appeared brighter.

LEADERSHIP

BUSINESS DAY Tuesday 13 August 2019 www.businessday.ng

CEO IN FOCUS:

How Tokunbo Abiru is gradually steadying the ship at Polaris Bank ‘

DIPO OLADEHINDE

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leven months after the Central Bank of Nigeria (CBN), and the Assets Management Corporation of Nigeria (AMCON) took over Skye Bank, renaming it Polaris Bank, which saw the emergence of Tokunbo Abiru as its managing director, the bank now appears to be relatively stable, and gradually gaining customer confidence.

On Friday 21 September 2018, news of the sudden take-over of Skye Bank and its replacement with a bridge bank, Polaris Bank Limited, not only jolted the banking community but even investors as a result of precedence going by the losses that customers, staff and shareholders of defunct Savannah Bank and Societe Generale Bank of Nigeria sustained.

According to Godwin Emefiele, the CBN governor, the defunct Skye Bank was the only bank that recorded a loss in 2015 as some of the challenges rocking it included; insider trading, non-performing loans, and noncompliance with the remission of government’s funds to the Treasury Single Account (TSA), which attracted a fine from the CBN, and a host of other infractions.

“The capitalisation of Polaris Bank Limited is being done by the AMCON through the injection of about N786 billion to return the bank to soundness and profitability so as to enable its subsequent sale to credible and financially sound third-party acquirers,” Emefiele said follow-

‘

What we see in the future is a bank that in the next three to five years is one of the first five banks in Nigeria; a fully-fledged retail bank with strong digital backing. So our stakeholders will get more of enhanced values which are clearly different from the bank of the past

Polaris Bank has also made available different credit and funding options to small-scale entrepreneurs and business owners, operating in the informal sector, in order to bring them into mainstream financial system

Tokunbo Abiru

ing the takeover.

On assumption of office in 2018, Tokunbo Abiru drew up a holistic and integrated approach to business innovation, which elevated the bank to deliver a superior customer-centric experience. The impact of this change has been reflecting confidently on the bank’s report card, which restored customers’ trust and confidence in the system.

“What we see in the future is a bank that in the next three to five years is one of the first five banks in Nigeria; a fully-fledged retail bank with strong digital backing. So our stakeholders will get more of enhanced values which are clearly different from the bank of the past,” Tokunbo Abiru said, while addressing 61 graduate trainees of Polaris Business School, held at Polaris Bank Training School, Ibadan.

Since becoming CEO, the Abiru-led Polaris team has continued to implement the July 2016 regulatory intervention to include entrenching sound corporate governance and risk manag ement practices and

transforming Polaris into a fullyfledged retail and commercial bank with strong digital backing.

Through his recovery initiatives, the bank has been able to recover over N200 billion of outstanding bad loans within a short period. At the same time, reaching settlement and restructuring agreements with many of the chronic bad debtors, and this has resulted in substantially improved payments and prospects of future recoveries.

In line with the bank’s broad mandate, which includes cost management and optimization, as well as divestments, to improve the institution’s financial position, Tokunbo Abiru has embarked on several initiatives aimed at restructuring and repositioning the bank.

Some other initiatives embarked upon by Abiru include, branch rationalisation, review of service contracts and cash management operations which have resulted in huge financial savings. Also, the bank has successfully settled many matured trade and bilateral obligations

and restructured outstanding balances with the relevant institutions and counterparties.

Under Abiru’s watch, the bank has divested from four local subsidiaries releasing total cash value of N6.2 billion.

Polaris Bank under Abiru has also continued to promote the CBN’s National Financial Inclusion Strategy aimed at reducing the number of eligible adult Nigerians that are excluded from the formal financial system from 46.3 per cent to 20 per cent by the year 2020. The lender has been remarkable, strutting the length and breadth of Nigeria to promote financial inclusion.

Polaris Bank has also made available different credit and funding options to small-scale entrepreneurs and business owners, operating in the informal sector, in order to bring them into mainstream financial system.

The bank has also employed interactive financial literacy sessions as a platform to empower students with money management skills in schools across

the country. So far, the bank has organized interactive sessions on financial literacy in schools across seven states namely; Cross River, Akwa Ibom, Ebonyi, Zamfara, Oyo, Bauchi and Benue.

Not resting on his oars, the seasoned banker has said that he would love to leave with a sense of satisfaction that he delivered on the mandate of the CBN by taking Polaris to the top.

Regulators have expressed hope, that AMCON would be able to sell Polaris Bank to new equity investors before 2023, its sunset year; otherwise, its ownership will be transferred to CBN and Federal Ministry of Finance – both owners of AMCON. While the mandate may appear daunting for Polaris Bank, to ensure its sound footing, AMCON immediately recapitalised it with N786 billion. By this action Polaris Bank became a nationalised, government-owned entity, as opposed to publicly quoted status of its predecessor whose equities were listed on the Nigerian Stock Exchange (NSE).

To assume this role effectively and achieve the set objectives, Polaris Bank Limited was also incorporated as a legal entity authorised to offer banking and financial services with its registration number on CAC Register as RC 1525101.

While the financial services sector and indeed the nation await the next level for Polaris Bank, the precedent set by the management and staff of the bank in winning depositors’ confidence speedily will go down in modern day history of the banking sector in Nigeria as an exemplary worth studying.

Published by BusinessDAY Media Ltd., The Brook, 6 Point Road, GRA, Apapa, Lagos. Advert Hotline: 08034743892. Subscriptions 01-2950687, 07045792677. Newsroom: 08169609331 Editor: Patrick Atuanya. All correspondence to BusinessDAY Media Ltd., Box 1002, Festac Lagos. ISSN 1595 - 8590.