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NERC unveils plan to tackle liquidity gaps in power sector OLUSOLA BELLO, ISAAC ANYAOGU, DIPO OLADEHINDE, MICHAEL ANI & BUNMI BAILEY

n a bid to resolve shortfalls in the electricity sector estimated to be about N1trillion, the Nigerian Electricity Regualtory Commission (NERC) has unveiled a com-

To settle MDA debts through metering, credit advance system Plans forensic audit for DisCos

Atiku parleys Reps’ PDP, R-APC lawmakers ahead presidential primary election

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Ekiti shoot-out is executive recklessness - Reps …PDP storms National Assembly …Gana declares for President, says Nigeria in Civil War KEHINDE AKINTOLA, OWEDE AGBAJILEKE & James Kwen, Abuja

awmakers on Thursday described the shoot out by personnel of Nigeria Police during the People’s Democratic Party (PDP) political rally which took place in Ekiti State

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Atiku Abubakar

KEHINDE AKINTOLA, Abuja

n furtherance of his consultation for the presidential ambition, former Vice President on Wednesday night met with lawmakers from Peoples Democratic Party (PDP) Continues on page 34

L-R: Chiedu Ugbo, MD/CEO, Niger Delta Power Holding Company Limited; Olufunke Dinneh, GM, legal licensing and compliance, Nigerian Electricity Regulatory Commission (NERC), and Chinua Azubike, CEO, InfraCredit, during the BusinessDay future of energy series with the theme, ‘Making Nigeria’s power market bankable,’ in Lagos. Pic by Pius Okeosisi

Banks’ rising request from CBN lending window raises concern HOPE MOSES-ASHIKE

he rising incidence of requests for short term loans from the Central Bank of Nigeria (CBN) by deposit money banks through the

Standard Lending Facility (SLF) is raising some concerns. The CBN Standing Lending Facility (SLF) is an overnight advance available to deposit money banks and discount houses. According to the CBN’s latest

report on the sector, the average request for SLF, inclusive of intra-day liquidity facility (ILF) in the first half of 2017, amounted to N227.52 billion, in 122 transactions, while

Continues on page 34

Inside Mary Akpobome, on marriage, work, life’s lessons and resplendently turning 50

2 BUSINESS DAY NEWS

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Friday 13 July 2018

UBA emerges best institution MARKETS in digital banking across Africa Investors reward firms with strong profit margins DIPO OLADEHINDE

an-African financial services group, United Bank for Africa Plc, has been named Africa’s best bank in the Digital category at the prestigious Euromoney awards in London. This further lends credence to UBA’s dominance in the digital banking space. Clive Horwood, Euromoney Magazine’s Editor explained that: “Despite fierce competition, one bank stood out in the last year for the inventiveness of its efforts in digital banking: United Bank for Africa. One of its signature launches in Nigeria was Leo, an e-chat service using artificial intelligence to help customers execute transactions on Facebook”. The Euromoney awards ceremony which was held on Wednesday, July 11, 2018 covers more than 20 global product categories, best-inclass awards and the best Banks in over 100 countries around the world, recognising institutions that have demonstrated leadership, innovation, and momentum in the markets in which they operate. In selecting its recipients, Euro money’s principle is hinged both on quantitative and qualitative data to honor institutions that have brought the highest levels of service, innovation and expertise to their customers. At the awards ceremony, UBA beat other nominees taking away the prize for best institution in Digital banking across Africa, an

affirmation of its recent investment in cutting edge technology, one of which gave birth to Leo, the chat banker that has disrupted banking across Africa. In a bid to be the undisputed leading financial services industry Africa in the area of innovation and technology, UBA has steadily included new and emerging trends to its range of solutions in-branches, across subsidiaries and on digital platforms. The emergence of LEO, has been a continuous directive to push the banking sector beyond financial services and to show that the bank truly comprehends the shift in operations and the movement of the global world with technology today. The Euromoney award, which is a recognition of innovative products and services introduced by the bank in recent times and targeted towards meeting customer needs, comes on the heels of recent awards to UBA, including Finnacle Client Innovation Awards and Best Bank Awards won by five of its subsidiaries across Africa by The Bankers Magazine. UBA was also declared the best Bank in Africa in 2017. Receiving the award at a wellattended event in London, the Group Managing Director, Chief Executive Officer, United Bank for Africa, Kennedy Uzoka, appreciated the organizer’s for the recognition, noting that UBA’s dedication to hard work and particular emphasis to offering quality services to customers are being acknowledged.

BALA AUGIE

usinessDay’s analysis shows that firms with the highest net profit margin have outperformed others in the sector. Cement Company and Northern Nigeria (CCNN)’s net profit margin hit a 6 year high of 16.48 percent in 2017, the largest margin expansion in the sector, and the Sokoto based cement maker’s stock price gained 148.15 in the past year, this compares with the Dangote Cement’s 1 year return of 14.85 percent and Lafarge Africa’s 1 year return of -24.85 percent. Dangote Sugar Refinery Plc’s net profit margin of 19.18 percent in 2017- the highest since 2006- is the largest margin expansion in the sector as the largest producer of the sweetner’s 1 year return of 140.07 percent outperforms International Breweries’ 1 year return of 35.18 percent, Nigerian Breweries return of 26.68 percent, and Unilever’s 35.18 percent.

Seplat Petroleum Development Company Plc’s net profit margin of 58.66 percent- the highest since 2013- is the largest margin expansion in the sector as its share price has gained 38.49 percent since the start of the year, this compares with Oando Nigeria Plc’s one year return of -21.47 percent, Forte Oil’s return of -42.15 percent, Total Nigeria Plc’s return of -17.45 percent, Mobil Nigeria Plc -19.98 percent, and Conoil Nigeria Plc’s -9.75 percent. Guaranty Trust Bank (GTBank) Plc’s recorded the highest net profit margin in the sector as its stock price gained 16.69 percent in the past year, this compares with Access Bank’s one year return of 7.26 percent. An uptick in crude oil price and output, introduction of the new foreign exchange regime by the apex bank, devaluation of the currency, increase in the price of key products, helped propel the bottom lines of firms the consumer goods, banking,

industrial goods and oil and gas sectors in 2017. “I think what has happened is that most of these firms-especially the manufacturers and goods firms- raised prices of their products at a higher rate than that at which costs increased,” said Ayodeji Ebo, managing director and CEO of Afrivest Securities. “Most banks return on equity (ROE) has improved. That could be attributed to the high interest rate environment of 2017 combined with foreign exchange gains,” said Ebo. “The rebound in oil price and relative calm in the Niger Delta region helped strengthen the margins of upstream oil and gas firms,” Ebo summed. For the year ended December 2017, after tax profits for the 10 lenders that have reported results spiked by 44.28 percent to N693.92 billion from N478.19 billion the previous year (2016).

Continues on wwwbusinessday online.com

Grounded aircraft cause glut of passengers at airports … Air Peace, Arik Air benefit IFEOMA OKEKE

but in the sky for operations. If aircraft are on ground, it is either it has insurance issues, maintenance issues or other technical issues,” Sam Adurogboye, NCAA General Manager of Public Relations, said. Adurogboye explained while some of the aircraft are due for maintenance, the operators do not have enough funds to fix them. He added that other aircraft have expired insurance papers and the operators are sorting out their insurance papers. He further explained that “If aircraft maintenance is due and it is supposed to be repaired overseas, operators often book overtime to get a slot. It is only when they have a slot for the aircraft that operators take their aircraft abroad for maintenance. “Airlines pay heavily to have their aircraft parked overseas. So, airlines prefer to have it parked in their country, where they will pay minimal fees.” A passenger who simply identified himself as Seun booked one of domestic airlines to Abuja recently. He said he had to pay over N50, 000 for a one-way ticket to Abuja for a 5.30pm flight which did not depart the airport till past 10pm.

he grounding of various aircraft by the Nigeria Civil Aviation Authority (NCAA) belonging to over four domestic carriers is currently leading to a glut of passengers on frequent domestic routes such as Lagos, Abuja, Port Harcourt, Kano and Owerri, BusinessDay’s checks found. A source close to the NCAA told BusinessDay that currently, over eight aircraft have been grounded by the regulator, making it difficult for the affected airlines to carry out daily scheduled operations as planned. This development has led some of the airlines to overbook passengers, rather than lose the passengers to competing airlines. BusinessDay’s checks show that the fall out of this development has seen Medview enter an agreement with Dana Air to help them carry their passengers while the former struggles to get their aircraft operational again. A visit by BusinessDay to Lagos, Abuja and Owerri airports recently saw over ten aircraft belonging to Aero Contractors, First Nation airline, Arik Air, and Medview, grounded as Aircraft on Ground (AOG). “Aircraft are not supposed to be on ground Continues on wwwbusinessday online.com

Nigeria Treasury yield among highest in the world Emeka Ucheaga, David Ibidapo, Sobechukwu Eze & Abdullateef Eniola-Giwa

n a world where investors are chasing high yield, Nigeria comes in as a first class destination. With the one year Treasury bill currently around 13.1 percen t, Renaissance Capital reports that Nigeria treasury bills currently offers the third highest treasury yield in frontier markets and the fifth highest local currency yield when emerging markets and frontier markets are merged. High yield in Nigeria has certainly attracted foreign investors as billions of dollars have been poured into the money market over the past year. In 2017, up to $3.2 billion was invested in money market instruments with the majority of investments entering the country in the fourth quarter of the year. Around $2.1 billion was invested by foreign investors in Q4 2017 as inflation continued its downward trend compared to around $211 million invested in the money market in Q1 2017. Foreign investors were wary of investing in treasury bills at the time possibly

due to high double digit inflation. digit yields. Inflation peaked in January 2017 Countries with high yields have before it began its long deceleration been attracting more foreign infor 16 consecutive months since vestments in the past one year, last year. although the two rate hikes in USA In the first three months of 2018, this year have caused investment foreign portfolio investors invested outflows to increase in emerging $3.52 billion dollars in money mar- markets this year. Bloomberg reket instruments, that’s more than ported last September that investhey did in the entire 2017. tors were increasing investments Even though interest rates in in emerging countries that pay the United States is starting to nor- highest local interest rate. However, malise as the Federal Reserve Bank the story this year is a little differof America raised interest rate in ent as traders now see more risk June for the fifth time since March in investing in emerging countries last year, at just 2.36 percent yield at the same time interest rates are for the one year treasury bill, it is increasing in USA. still miles behind yields offered Bismarck Rewane, CEO Finanin emerging and frontier markets cial Derivative explained that due around the world. to unforeseen eventualities in the According to RenCap currency upcoming election in Nigeria, the report, emerging economies such current yield level is likely not high as Egypt and Turkey have local enough to compensate investors currency yields at 19.3 percent and for political risk. To this end, there 17.7 percent respectively. While is a large tendency that foreign frontier markets such as Argentina investors would exit the country (39%), Ukraine (16.5%), Nigeria and return after elections. This (13.1%) and Kenya (10.4%) are all could push treasury yield higher offering double digit rates on their to compensate for additional risk. sovereign debt compared to their counterparts in developed markets who are mostly offering low single Continues on wwwbusinessday online.com

Friday 13 July 2018

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BUSINESS DAY

Friday 13 July 2018

BUSINESS DAY

Friday 13 July 2018

BusinessDay Future of Energy Series with the theme: ‘Making Nigeria’s Power Market Bankable in Lagos’ Pictures by Pius Okeosisi and Olawale Amoo

L-R: Azu Obiaya, CEO, Association of Nigerian Electricity Distribution; Chiedu Ugbo, MD, Niger Delta Power Holding Company; Jamil Gwamna, MD, Kano Electricity Distribution Company; Rahila Thomas, country director, Energy Market and Regulatory Consultants (EMRC); Oluwafemi Adesanya, head of power and renewables, UK department for international Trade, Nigeria Office; Adiodun Oyelude, representing MD, Eko Electricity Distribution Company, and Kolapo Joseph, general manager, business development and corporate finance, North South Power/Shiroro.

L-R: Ademola Adegbusi, head, power, First Bank; Kola Adesina, chairman, Egbin Power Plc; Kolapo Joseph, general manager, business development and corporate finance, North South Power/Shiroro; Ibi Ogunbiyi, partner, Olaniwun Ajayi LP; Hamisu Abubakar, chairman, Northwest Power/Kaduna Disco, and Daniel Mueller, head, origination and structuring, InfraCredit.

L-R: Henry Bassey, CEO, Digi Brands; Akinwole Omoboriowo, chairman, Genisis Ernergy Group, and Olufemi Ashipa, vice president, marketing, Lumos Nigeria.

Houssam Azem, CEO, Lumos Nigeria (r), with Frank Aigbogun, publisher/ CEO, BusinessDay.

Uche Val Obi, managing partner, Alliance Law Firm (l), with Chiedu Ugbo, managing director, Niger Delta Power Holding Company.

L-R: Rumundaka Wonodi, CEO, ZKJ Energy Partners Limited; Oti Ikomi, CEO, Proton Energy; Eme Essien Lore, country manager, IFC; Wolemi Esan, partner, Olaniwun Ajayi LP; Olufunke Dinneh, general manager, legal licensing compliance, NERC; Chinua Azubike, CEO, InfraCredit, and Anthonia Okoh, director, Standard Chartered Bank, UK.

L-R: Eme Essien Lore, country manager, IFC; Chima Azubike of InfraCredit , and Rumundaka Wonodi, CEO, ZKJ Energy Partner.

L-R: Irene Ubani of Plus TV Africa and Kemi Ojo of Clarke Energy.

Rachelle More, director and head, infrastructure finance, Rand Merchant Bank (l), with Robert Grant, senior vice president/group head, project finance, FCMB Capital Markets.

Abiodun Oni, head, power, Stanbic IBTC Bank (r), and Ademola Adesina, founder/CEO, Rensource.

L-R: Chinua Azubike, CEO, InfraCredit; Rotimi Thomas of Siemens, and Oti Ikomi, CEO, Proton Energy.

Vera Nwanze, MD, Azuri Technologies (r), with Akinwole Omoboriowo, chairman, Genesis Energy Group.

Tajudeen Ahmed, general manager/group head, business development, BUA Group (l), with Eme Essien Lore, country manager, IFC.

L-R: Joy Ogali, executive secretary, Association of Power Generation Companies (APGC); Kolapo Joseph, general manager, business development and corporate finance, North South Power/Shiroro, and Justina Otedoh, lead partner, Seven Energy.

Abiodun Oni, head, power, Stanbic IBTC Bank (r), with Daniel Mueller, head, origination and structuring, InfraCredit.

L-R: Chinwendu Enechi and Adeniyi Adebowale, both of Andersen Tax

L-R: Blessing Odigieh; Oluyemisi Olakanye; Olarade Kolawole; Olaolu Omitogun, and Opeyemi, all of GTBank.

R-L: Udoka Ezeifedi; Nike Bajomo, and Melvin Awolowo , all of Stanbic IBTC.

L-R: David Ikponmiren and Funmi Onigbogi, both of United Capital Plc.

L-R: Wuraola Jinadu; Jumoke Adeniran, and Babatunde Folami, all of Vodacom Business Nigeria.

L-R: Bambo Adebowale; Ayodele Oni, partner, Bloomfield; Dominic Ezekiel and Ajayi John, chairman, Dieu Bonde Global Limited.

L-R: Rotimi Thomas of Siemens; Joy Ogaji, executive secretary, Association of Power Generation Companies, and Kolapo Joseph, general manager, Corporate Finance and Corporate Development, North South Power Limited.

L-R: Chuks Nwari, vice president, and Uchenna Nwogu, project supervisor, both of Powerhouse International Limited.

Adeniran Adejumoke (l), with Folami Babatunde, both of Vodacom Nigeria.

Rotimi Balogun, coordinator, Lagos State Embedded Power Programme (l), with Makinde James, business development and commercial manager, Shell Nigeria Gas Limited.

Kikelomo Akpati of Meristem Securities (l), with Mobola Akinkugbe of Auctus Legal.

L-R: Bimbo Wright of FBNQuest Merchant Bank; Yewande Olagbede, and Laide Abudu of Azuri Technology.

Robert Grant, senior vice president and group head, project finance, FCMB Capital Markets (r), with Houssam Azem, CEO, Lumos Nigeria.

L-R: Heidi Ijomah, investment officer, IFC; Kashetolu Lawal, head, client coverage, FBNQuest Merchant Bank, and Adebisi Oduba, power division, UBA.

L-R: Seyi Akinwale, senior vice president, GE Capital, with Abiodun Oni, head, power, Stanbic IBTC Bank

BUSINESS DAY

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NEWS AFF to hold 2nd edition of Re:Code Nigeria Hackathon

ollowing a successful first edition of its Fintech conference, the Africa Fintech Foundry (AFF) Disrupt 2017, the //Re:Code Nigeria Hackathon 2018 is set to begin a chain of disruptive events that will set the tone for the biggest Fintech event of the year, AFF Disrupt 2018. The objective of this edition is to create innovative solutions in response to the distinct challenges faced in some of Nigeria’s leading sectors – Fast Moving Consumer Goods, Agriculture and the Financial Services ecosystem as a whole. Buoyed by the support of industry giants such as Unilever, Dell, AFEX, Trium Networks, Microsoft, IBM, SaS, Terragon and the likes, the // Re:Code Hackathon takes on some of the biggest challenges in the ecosystem, which include (but not limited to): How financial technology can address supply chain challenges (from finished goods to retail) in the FMCG sector; Leveraging big-data analytics, identity management and behavioural analysis to identify customers’

needs, providing investment advice/lending services; Financial inclusion for the agricultural and related sectors with a focus on improving credit scoring and financing opportunities for small and medium scale operators. The //Re:Code Nigeria Hackathon 2018 aims to bring together multiple teams of talented developers, designers, problemsolvers, out-of-the-box thinkers, dreamers, doers, makers, and code magicians to solve these problems. Adeleke Adekoya, AFF’s business/digital solutions architect, believes the 2018 edition will be far greater than its predecessor. “AFF remains fully committed to being at the forefront of the Fintech space in Nigeria and this edition of //Re:CodeNigeriaHackathon sets out to solve three of the biggest challenges the Ecosystem is facing today. “We have received enormous support from our partners, and with the technology available for participants to exploreandleverage,westrongly believetheprototypesfromthe Hackathon will be of the highest standard,” he said.

Why Nigeria must de-risk its agric finance JOSEPHINE OKOJIE igeria’sexpectation from its agricultural sector may never crystallise if banks remain unwilling to lend to the sector. Agriculture has long been known to hold a great promise, and has historically been Nigeria’s major source of revenue and foreign exchange. In the 60s and 70s, the country attained extra-ordinary height from its agricultural production as it generated bulk of its revenue from it. Then it all happened that oil was discovered in commercial quantity and Nigeria abandoned the sector. However, since the 2014 collapse of global oil crude prices, there has been renewed focus on the agricultural sector as the country attempts to diversify its economy away from oil. The shift was necessitated by the growing statistics of youth unemployment and the vast agricultural potentials that can drive a more sustainable economic development in Africa’s most

populous nation. With the current economic downturn the country is grappling with, there is consensus across board that there is no better time to leverage the potentials of the agricultural sector than now, not just to pull out of recession, but also to diversify the economy and place it on the path of sustainable growth and development. One of the factors that have continued to impede the sector is finance. Lack of access to adequate financing by farmers and other actors in the sector has remained a major impediment that prevents investments in basic farm inputs needed to raise productivity and sustain growth of the non-oil sector. As a result, yields have failed to increase significantly, leading to pervasive hunger and poverty. Similarly, agro entrepreneurs seeking to build businesses that could boost food production have continued to remain at a subsistence level in the country. “Funding is the biggest problem we have in Nigeria’s

agriculture,” Heineken Lokpobiri, minister of state for agriculture and rural development, said at a breakfast meeting with banks CEOs in Lagos last year. “We need finance to put all the factors of production together to drive growth in the sector. We know that banks are still finding it difficult to fund agriculture but until we have the money to fund agriculture at the production, processing and marketing level, we would not achieve anything from the sector,” Lokpobiri said. Nigeria’s agricultural fundamentals are robust and include an estimated 84 million hectares of arable land out of which only 40 percent is cultivated and less than 40 percent is cultivated optimally. Two of Africa’s largest rivers (Niger and Benue) flow through and within the borders of the country. There is adequate annual rainfall; large young workforce and over 180 million consumers that offer a domestic market to support increase food production and processing. It is only the finance to unlock all this potentials

L-R: Reginald Okeya, director, MTN Foundation; Pamela Emodi, education portfolio manager, MTN Foundation, Henry Ojiokpota, zonal controller Lagos, Nigerian Communications Commission, and Ekong Udobang, senior manager, programme implementation, MTN Foundation, at the 11th Graduation Concert of the MTNF-MUSON Music Scholars Programme in Lagos.

Terragon releases 2018 Digital Trends report for Nigeria

frica’s marketing technology firm, Terragon, has released its 2018 Digital Trends report for Nigeria. The report highlights the importance of personalisation, artificial intelligence, online video, digital solutions and digital partnerships as key drivers for growth of businesses targeting the Nigerian consumer. The report emphasises the need for a mobilefocused, data-driven approach both online and

offline, as brands and businesses seek to provide a seamless experience to their target audiences. Tolu Odulawa, head, business operations, Terragon, says going digital is no longer optional, and brands must embed a data-driven approach into every facet of their marketing efforts, especially in the areas of lead generation, customer acquisition, and customer engagement if they are to expect exponential growth in today’s hyper-competitive marketplace.

Philip Asiodu to chair LAPO 2018 annual forum IDRIS UMAR MOMOH, Benin City anagement of Lift Above Poverty Organisation (L APO) says Philip Asiodu, former minister of petroleum, will chair its 2018 Annual Development Forum. A released signed by Sabina Idowu-Osehobo, chairperson, planning committee, and James-Wisdom Abhulimen, secretary, planning committee, noted that Mike Obadan, a professor of economics and non-executive director of the Central Bank of Nigeria (CBN), would present the keynote paper. The forum, slated for August 24, has as its theme, ‘Towards Sustainable SocioEconomic Transformation

of Nigeria: Options for NonState Intervention.’ Osehobo said over 300 personalities including elected and appointed public office holders, government ministries, departments and agencies, nongovernmental organisations, international development agencies, the academia, financial sector, microfinance institutions, civil society organisations and the media are expected to attend the forum. She said the 25th Annual LAPO Development Forum will provide a veritable platform for policy makers and critical stakeholders to deliberate and proffer practicable solutions to the challenges militating against the socioeconomic development and transformation of Nigeria.

that is lacking. Experts say the glorious days of Nigeria’s agriculture could be revived when banks start lending more to the sector. To ensure that farmers across the country have access to adequate finance and also ensure that money deposit banks lend more to the sector, even as the country realize its agricultural potentials, experts say Nigeria must begin to hedge banks against the risks associated with funding agriculture. With such, experts believe that banks would lend more to the sector to drive growth and development. Despite efforts targeted at increasing funding to the Nigeria’s agriculture sector, the role of commercial banks in financing the sector still remains minimal owing to the risky nature of the sector, low financial literacy among smallholder farmers and difficulty in determining their creditworthiness. Successive governments and the Central Bank of Nigeria have introduced various financing initiatives to encourage banks to finance agric at lower interest rates.

‘Effective collaboration key to personnel management initiative’ SEYI JOHN SALAU London-based Nigerian HR consultant, Richie Dayo Johnson, has urged personnel managers in Nigeria to explore collaboration and other options available to HR practitioners for greater personnel management initiative in achieving better results and set goals. Johnson, who spoke at the recently held Chartered Institute of Personnel Management of Nigeria (CIPM) 10th edition of the special human resource forum in Lagos, urged human resources personnel in various organisations to constantly set a goal devise as a viable approach to achieving set goals, and engage the support of oth-

ers for the attainment of such goals. John Mattone, the guest speaker at the forum, in his analysis of the theme, ‘Talent and Intelligent Leadership: a roadmap to unleashing greatness in your current and future leaders,’ said communication skills were necessary for every human resource personnel to achieve intelligent leadership, critical and strategic thinking, decision-making, in attaining desired results. “Have a goal, but know that you cannot achieve the goal without the support, guidance and input of those around you, consider them to be your critical stakeholders, ask for their suggestions and always thank them for their input,” Mattone said.

Jobberman partners LASG, American Towers to train youths for employment CALEB OJEWALE he need to tackle youth unemployment is getting some attention through collaboration between the American Tower Corporation, the Lagos State government through the State’s Employment Trust Fund, and Jobberman. They have partnered to train about 120 youths in key digital skills and get them employed and so far, they say the initiative has succeeded in placing 88 percent of them in jobs. According to Olalekan Olude, Jobberman cofounder, “This synergy is a perfect one considering that American Towers Corporation and LSETF decided to leverage on the unique advantage of Jobberman,

the biggest jobs website in sub-Saharan Africa with over 60,000 employers, to train the underserved youth in skills that can shape their lives and place them in quality jobs. We, at Jobberman, are extremely focused on helping Nigerians get quality jobs and improve their quality of life.” This was contained in a statement after the third cohort of the second month long programme tagged Upskill in Makoko, Yaba. Currently, eight training centres have been constructed in Makoko, Agege, and Ajah, and other parts of Lagos with plans to have more than 10 across Lagos State. With the success of this partnership, Jobberman and American Towers Company have plans to extend this model across the country.

Friday 13 July 2018

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Human trafficking: Obaseki at EU Parliament makes case for improved support, partnership

do State governor, Godwin Obaseki, has made a case to the European Parliament for improved and sustained support that will strengthen the state’s efforts to curb human trafficking and illegal migration. Governor Obaseki, who said this at a session with the European Union Parliament Sub-Committee on Human Rights (DROI), in Brussels, Belgium, noted that the state government had created structures and set up institutions such as the Edo State Taskforce Against Human Trafficking, to ensure reintegration of victims of human trafficking and illegal migration. Part of the state government’s delegation is the chairperson of the Edo State Taskforce Against Human Trafficking and the state’s commissioner for justice/attorney general, Yinka Omorogbe. The governor said much as the institutional framework had been firmed

up, the state also needed improved support for sustainable implementation of its programmes to curb human trafficking, which would serve to reintegrate returnees and provide the teeming youths with ondemand skills to become employable and self-sufficient in the long run. According to Obaseki, “We have a holistic programme to curb human trafficking and illegal migration. Already, the campaign has gotten the backing of the Oba of Benin, whose support has proved instrumental to curbing the trend. “Our programmes do not only stop at receiving and reintegrating returnees into society, but also include well laid out plans to rebuild institutions for capacity building and vocational training such that our youths would acquire globally-competitive skills to enable them lead better, fulfilling lives.” The governor earlier met with a member of the EU Parliament Sub-Com-

mittee on Human Rights, Josef Weidenholzer, to firm up modalities for the EU’s engagement with the state government on strategies for enduring solutions to human trafficking. Edo accounts for a considerable share of illegal migrants out of Nigeria to Europe, a good number of who die in the Mediterranean while attempting to cross to Europe. But the Obaseki administration has sustained a campaign against the trend, with the signing of the law against human trafficking last June, which has been hailed by experts and analysts as a major milestone in institutionalising the campaign. The state government’s law prohibiting trafficking in persons signed into law provides an “effective and comprehensive legal and institutional framework for the prohibition, prevention, detection, prosecution and punishment of human trafficking and related offences in Edo State.”

FG reconstitutes Tax Appeal Tribunals

ederal Government has reconstituted the Tax Appeal Tribunals in the six geo-political zones as well as Lagos and Federal Capital Territory. The reconstitution of the Tribunals is in accordance with Section 2(1) of the Fifth Schedule of the Federal Inland Revenue Service (FIRS) Establishment Act. Minister of finance, Kemi Adeosun, who announced this on Thursday in Abuja, said the Tribunals would adjudicate over disputes arising from the operation of Federal Tax Laws and Regulations in the country. The minister said, “The reconstitution of the Tax Appeal Tribunals is an essential part of building tax payers trust and confidence in the fairness of the system. “The Federal Ministry of Finance has undertaken a rigorous process to select competent persons on the basis of merit who will be expected to discharge their duties professionally.”

Aviation experts seek investment in safety infrastructure to grow GDP IFEOMA OKEKE

viation operators and experts in Nigeria have called on the government to invest in safety infrastructure to attract investments that could grow the country’s Gross Domestic Product (GDP). Aviation currently provides 93,000 jobs and contributes 0.2 percent to Nigeria’s GDP. These contributions, they suggest, can improve if the government will create an enabling environment for the operators and provide a deliberate policy for businesses in aviation to thrive. Speaking during its 2018 summit and Awards put together by the Association of Foreign Airlines Representative in Nigeria (AFARN), Idris Yakubu, managing director, Nigerian Aviation Handling Company (NAHCO), said, “The safety of infrastructure in Nigeria cannot be compared with those in most African countries.” Yakubu, who was represented by Kelechi Amaechi, head of commercial in NAHCO, said if aviation was

embers of Edo State chapter of Pe o p l e’s Democratic Party (PDP on Thursday staged a peaceful protest in reaction to the alleged attack on the governor of Ekiti State, Ayodele Fayose, by security personnel. The party faithfuls, who were at the premises of the Edo State secretariat of the Nigeria Union of Journalists (NUJ), also marched to the headquarters of the state command of the Nigeria police to register their displeasure over the incident. The publicity secretary of the party, Chris Nehikhare, who led the protest, described the attacked on the sitting governor by the security agents as undemocratic and lacked respect for constituted authority. “PDP in Edo State condemn in strong terms attempt by security agents loyal to the ruling APCled Federal Government to rig and write results for Saturday’s Ekiti State governorship election. Nigerians want a free and

fair election, and not war,” he said. Nehikhare, who said PDP was in solidarity with the good people of Ekiti State, particularly the PDP members, also sympathised with Nigerians for having such a “despotic government” in power that had now turned state power to power of tyranny and that of terrorism. The party, who vowed to resist any attempt to rig and write results in favour of a particular political party and its candidate, said the party as a family believes in the rule of law and wants a free, fair election and not war. While decrying the deployment of heavily armed security personnel including over 30,000 policemen to Ekiti State, he noted that the motive behind the heavy security presence was to create unnecessary tension as well as to intimidate voters. He also lamented that in spite of the numbers of security personnel in the country, people were being killed on a daily basis in states like Sokoto, Plateau, Taraba, Benue, Zamfara, Adamawa, among others.

top notch in a country, it would attract tourism, adding that government should begin to focus on internally generated revenues to attract foreign exchange. He stressed that investment in human resources and quality professionals would attract investment in the sector. Basil Agboarumi, acting managing director of Skyway Aviation Handling Company Limited (SAHCOL), who also spoke at the event, emphasised on the need to operate safely or risk losing the confidence of investors, who would rather prefer to patronise other alternatives rather than operate in an unsafe environment. “When there are unsafe practices in the industry, it leads investors to other sectors such as Maritime, and this will affect not just the sector but the country’s economy,” Agboarumi said. Also speaking, Obi Mbanuzuo, accountable manager/CEO of Dana Airline Limited, said the GDP of the country could also be enhanced by improving safety awareness and consciousness. L-R: Ilham Talab, project manager, Africa-EU Renewable Energy Co-operation Programme (RECP); Rafat Muhammed, zonal head, Ikeja 1 of First City Monument Bank (FCMB); Gbele Olugbebi, permanent secretary, Ogun State Ministry of Rural Development; Ebipere Clark, special assistant, energy, Central Bank of Nigeria; Bolade Soremekun, chief executive officer, Rubitec Nigeria Limited, and George Ogbonnaya, group head, business banking/SMEs of FCMB, during the RECP Mini Grids Workshop in Lagos.

Edo PDP protest demands peaceful, fair, free, transparent election in Ekiti IDRIS UMAR MOMOH, Benin City

A1 NEWS

BUSINESS DAY

Petrobras reaches $1.3bn sale of African project stake DIPO OLADEHINDE

razilian stateowned oil company, Petróleo Brasileiro SA, is close to agreeing to the sale of its stake in Petrobras Oil and Gas BV, an African venture, for about $1.3 billion, according to a report by Reuters. Petrobras currently holds 50 percent of Petrobras Oil and Gas BV or Petrobras Africa, while Grupo BTG Pactual SA holds a 40 percent stake in the venture and Helios Investment Partners owns the remaining 10 percent. All three shareholders would sell their stakes, valu-

ing the venture at around $2.6 billion, according to Valor, a state newspaper citing an unnamed source. Heavily indebted Petrobras launched the sale of Petrobras Oil & Gas BV, or Petrobras Africa, in which it holds 50 percent, as part plans to offload $21 billion in assets through 2018. Reuters reported on June 18 that a consortium led by international oil trading house Vitol was in talks to buy stakes in the Nigerian offshore fields held by Petrobras and its partners valued at $2.5 billion. The deal would offer the consortium a stake in some of Nigeria’s largest and

lowest-cost fields. Vitol is expected to shoulder the largest part of the investment, spending an estimated $1 billion, according to one source. It would be recalled that in November 2017, Petrobras launched the sale of 100 percent of Petrobras Africa as part of the heavily indebted company’s plan to offload $21 billion in assets through 2018, as it also faces a massive corruption scandal. Petrobras holds half the shares in the company while 40 percent are held by a subsidiary of Grupo BTG Pactual SA and 10 percent by Helios Investment Partners. The venture has stakes in

two offshore blocs that contain two producing fields, the major Agbami field in OML 127, operated by a local Chevron affiliate and the Akpo field in OML 130 operated by Total SA. Sources say Glencore was looking to back Nigerian producer Seplat in bidding for the assets while Vitol is examining backing several bidders in the process. Swissbased commodities trader Mercuria was involved in the initial bidding round but was unlikely to continue in the process. Oil major BP’s trading division had also considered participating in a possible consortium, but dropped out.

BUSINESS DAY

Friday 13 July 2018

WOMEN’S HUB

WORKPLACE PALAVER

Laide isn’t falling for the threats, she knows better KEMI AJUMOBI

aide Adebayo is a beautiful, intelligent and focused lady. She loves her job as the HR Manager at Gbenga & Sons Limited but she got a better offer at MacPhersons & Lloyd Ltd and she wasn’t willing to trade it for anything in the world. She spoke to her fiancé, Akin Peterson about it and he was in support of her decision 100 percent. She was to resume in May so she gave a 3 months’ notice of resignation to her company (now previous). The company tried to persuade her to stay but she had made up her mind already. 7 years was sufficient enough to have made her mark in the organisation. It was time to move on. When she resumed at her place of work, she observed certain coldness among the employees but she felt it was because she just came and trusted that with time they would blend. It mattered to her that they were cold towards her but central on her mind was what she was employed to do, not sentiments. One day, she got to her office and observed that a letter was on the floor. She saw it immediately she opened her door. It was an anonymous letter. In it, the writer expressed how he felt (he claimed to be David Ojo but there is actually no David Ojo in the entire organisation so she knew the person wanted to be anonymous) about her position, how there was someone he and some other staff felt was qualified for the position she was just given, how he strongly suggests that she resigns and be ‘fair-minded with a fellow woman like her’, how God will bless her if she considers his suggested ‘offer’…he went on and on and on. Laide smiled and said to herself “that explains their attitude”. After reading it, she shredded the letter and continued with her work for the day. Two weeks later, as she was walking to her office, she saw Biodun Adebayo, the IT Supervisor perusing the area just by her office door, to be sure

he wasn’t seen before he carried out his act. Immediately Laide saw him, because she was at his rear side, she stepped back and carefully peeped to confirm her suspicions. When Biodun saw that the coast was clear, he pushed the letter under her door and walk away briskly. He had switched off the camera on the passage at that time so he walked away quickly back to the server room and put it on. After he left, Laide walked to her office, opened the door and picked up the letter. This time, he was issuing threats. Laide had seen enough, so she swung into action. She sent out a memo to all staff excluding the very senior members. The meeting was to hold in their mini conference room during lunch break. At exactly 1:30pm, they were all present. Laide appreciated their punctuality and welcomed them all. She further asked for someone to define the word Bully. They wondered why she asked the question. Different people got up to give their definitions but she walked up to where Biodun was, looked straight and sternly into his eyes and said, “Mr. Biodun, would you like to share your more precise definition with us?” “Me?” he asked as if he was in doubt of Laide’s choice. He intended it to be sarcasm but she also ‘played along’ and sardonically responded “No sir, the person behind you”. Biodun realised his joke wasn’t funny so he responded. After he was done, Laide said “I will prefer Mr. Biodun’s explanation; he surely has the succinct response”. She went ahead to explain that bullying in whatever form isn’t allowed in the organisation and enjoined

anyone going through such to report immediately. As she was about wrapping up, she said “…and oh...Mr. Biodun, I hope the cameras were not switched off while we are here? We always need to be sure we are safe especially when people act strangely watching the camera to be sure no one is looking at them before they carry out their felonious acts” she said looking at him firmly. He was confused. He began to question himself in his mind “Did she see me?...did someone else see me? Does she know?” The thoughts came in back-to-back and he knew he must respond ASAP so he said “Yyyyes Ma’am the cameras are on”, Laide smiled, said “Good to know!” and walked away from him. The meeting ended and everyone wet to their offices. Guilty conscience would not let Biodun rest. He was already going nuts thinking “Does she know? Does she not know?” so he made up his mind to go and see Laide. It felt like a confession time. He opened up to Laide and apologised for his behaviour. He also realised that Laide didn’t let the executives know about it and also appreciated her for that. “Life is going to play us various games. We choose to play it as we like however, we must never assume our way is always right because our way can lead us to the highway. I forgive you Mr. Biodun” she said and Biodun was soon on his way. His respect for her has gone a notch higher and he certainly is behaving himself wisely.

MADELEINE KNIGHT 1, Independence conomic dependence isn’t a good feeling for either party in a relationship. But it’s usually even harder when it’s the guy who’s lacking in that area. This doesn’t mean you need to have all the money in the world but it does mean you need to be able to contribute equally. 2, Grooming Although there are plenty of women who like a good old grizzly, rugged, monkey-man, when it comes down to it, most women appreciate a little bit of grooming and personal care. 3, Positivity It means that you exude a brightness of spirit that will encourage those around you to be happy. This is magnetising for all people, not just women. 4, Attentiveness Knowing when to talk and when to listen is crucial when it comes to bagging your beauty, but recognising when

WHAT WOMEN WANT she wants you to solve a problem and when she wants you to agree with her about her problem and allow her to wallow is a very key – and very necessary – distinction you’ll need to be able to make. 5, Sociability

You might be really good at hanging out with your own friends. Most of us are. Who else is going to laugh at our worst jokes? It’s the comfort zone. But a woman will always appreciate a man who steps out of that zone and into different social arenas.

6, Intelligence Intelligence is obviously extremely relative and when it comes down to it, women will likely gravitate towards people on a similar wavelength, IQ wise. 7, Passion This doesn’t mean just in the bedroom, it means passion infused into every aspect of life 8, Laughing It improves mood, stress levels, health in general and genuinely makes you a happier, more levelled individual. So it makes all the sense that women will seek to find a man that makes her laugh. 9, Ambitious Women are attracted to men who strive to be the best they can be. Men who set themselves clear goals and actively pursue them possess an appealing strength of character. 10, Confidence Remember the frog who turned into a Prince? That could be YOU! OK not really but you see where we’re going with this?

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Friday 13 July 2018

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Preparing African entrepreneurs for sustainable success

IJEOMA NWAGWU Dr. Nwagwu is a Faculty member at the Lagos Business School email:ijeoma.nwagwu@gmail.com

ooking at recent events, it is fair to say that it is open season for entrepreneurship. Acknowledging that African entrepreneurs are essential to the continent’s economic transformation, several initiatives are providing platforms for the growth of local enterprise. For instance, the Tony Elumelu Foundation (TEF) with the French government signed a 1 billion Euro development finance agreement to support entrepreneurship in Africa. The partnership provided a platform for 2000 African entrepreneurs to network with African and French business leaders. At the Pan-Atlantic University’s Lagos Business School (LBS), in collaboration with Arizona State University, business development leaders engaged in a reboot and refresh on innovation practice in intra-institutional contexts. LBS faculty also linked young startups perfecting their craft with a vast network of influential business leaders and investors. Also, the Enterprise Development Centre (EDC) of the Pan-Atlantic University recently hosted an under-

CHIKA NWOGU Chika Nwogu is a Business Strategist/ Project Manager and also a Volunteer Research Assistant with the CRLE Lagos Business School

n the ecommerce industry, trust is the currency that binds all actors in the ecosystem. Ordering for an item online and receiving a different or sub-quality product has been one of the reasons ecommerce platform customers prefer payment on delivery options. On the flip side, merchants of these ecommerce platforms fear returned goods, the associated sunk costs of delivery, and possible damage of goods in transit. These underscore the trust quotient as a critical factor in ecommerce transactions. Loosely defined, ecommerce is the buying and selling of goods and services over the internet. Buying and selling could be through direct online retailing (e.g. Slot Nigeria’s online store or Walmart’s online store) or online marketplaces (e.g. Konga, Amazon marketplace) or online auctions (e.g. E-bay, Deal Dey). The buying and selling activities are performed via online storefronts built using information technology solutions. This enablement provided using information technology to engage in commerce over the internet is predicated upon the fact that all actors involved in the process would perform or deliver what is expected

graduate entrepreneurship fair brimming with youthful energy and thoughtfully executed business ideas. The challenge is: how can we foster a durable and collaborative ecosystem to support African entrepreneurs?An entrepreneurial ecosystem is the strategic collaboration of publicand private efforts including government policies, financing and human capital development opportunities combined to drive entrepreneurship. Alone each cannot sustain innovative ventures but together they can. As entrepreneurial activity continues to grow in Africa, the role of entrepreneurs in economic development will be increasingly evident, nurtured by investment in key entrepreneurship assets. Human capital For entrepreneurs with more technical backgrounds or little to no business management skills, there is a need for retraining or to hire qualified managerial talent to complement technical talent in the business. Entrepreneurs in Africa often face the inability to attract and retain sound managerial talent, especially since well-established corporate firms have the resources to hire premium talent. Entrepreneurship is largely perceived as the means for survival, as opposed to it being a quest for self-actualization and wealth-creation requiring longterm investment in people. Infrastructure The sad state of infrastructure

An entrepreneurial ecosystem is the strategic collaboration of public and private efforts including government policies, financing and human capital development opportunities combined to drive entrepreneurship. Alone each cannot sustain innovative ventures but together they can across Africa is a hinderance to the growth of entrepreneurial enterprises. In Nigeria, lack of constant electricity is perhaps the biggest infrastructural challenge. Also, bad road and rail networks, and poor communications infrastructure all drive up the cost of doing business and cripple businesses. As such, recent moves by the African Development Bank to finance Nigerian infrastructure is most welcome. Business advisory services Quality advisory services help new businesses overcome functional challenges, by offering them ac-

cess to skills they do not have themselves. Success becomes more attainable where business advisory services provide complementary expertise which frees entrepreneurs to focus on their core strengths. While credible business support services are lacking in Africa, the existing few are mainly located in urban areas and at costs which exclude millions of local entrepreneurs. Financing Access to patient and affordable capital is vital to promoting an entrepreneurial ecosystem. However, many entrepreneurs complain about a limited supply of capital. Financiers on the other hand point out that many ventures are not fundable and often prefer the ease of investing in government borrowing. Presently, the main sources of capital for SMEs are retained earnings, informal loan providers and investments from family and friends. This greatly hampers the scale and agility of Nigerian businesses. Government programs African governments have in recent years supported entrepreneurs by creating initiatives to encourage SMEs through loans or advisory services. However, the results of these initiatives have been poor. First, standardized business assistance is impractical because businesses have their own peculiarities. Second, many government initiatives lack the motivation, skills and political backing needed to support entrepreneurs. Entrepreneurs are

best assisted by experienced entrepreneurs or by industry experts with relevant market expertise. Hybrid private-government models are evolving which offer the best of both worlds. Universities Most African education systems concentrate on preparing students for employment in formal organizations. Entrepreneurship education provides students with knowledge and insights about entrepreneurial process, develops entrepreneurial skills and offers networks which provides access to resources and expertise. While several colleges and universities in Africa offer courses in entrepreneurship, however, there is a lack of focus on the practical skills needed to work on entrepreneurial ventures. The interdependency of Stanford University and Silicon Valley startup is a good example of how academic institutions can have close collaboration with industries. Similar collaborations are being explored by ‘Yabacon’ startups in Lagos and the University of Lagos. Given limited opportunities for entrepreneurship training in schools, incubators can also play a major role in filling the gap in entrepreneurial competence.

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

Trust as the currency for ecommerce platforms of them. Trust is what fuels the effectiveness of the process; thus, trust forms the basis for communication and exchange among actors. Trust is important for everyday interactions and businesses. More so, when it is internet based, it becomes a key factor for internet businesses, merchants, customers and payment companies. While the merchant would expect the customer to make necessary payments on goods ordered without undue cancellation or return after dispatch, the customer expects to see desired item ordered delivered on time, payment made through a secured channel, as well as some form of assurance that personal information is properly managed. Today, ecommerce platforms have changed the way products and services are evaluated and purchased. As internet penetration deepens, conversion and growth for ecommerce platforms largely depend on trust because they now act as the agents between the merchants and customers, creating a marketplace by providing the ability to search for items from a vast selection, from the comfort of the home or office, and to evaluate them based on specifications, customer reviews and ratings, and pricing, as the case may be. Because of its intangible nature, trust in ecommerce is capricious – difficult to gain and easy to lose. The unavailability of the physical

experience that brick-and-mortar stores present leaves actors to rely on trust as the social mechanism for ecommerce business transactions. Unlike brick-and-mortar commerce where transactions are done physically, ecommerce transactions ride on a high level of uncertainty as the customer has no idea of the merchant’sownership, location or quality. Therefore, customers would rely on reviews and ratings to make a purchase decision. Furthermore, online buyers have concerns regarding payments, which have led to use of the platforms as online catalogues either to increase the visibility for the seller or as ‘product yellow pages’ for buyers and not necessarily as venues for financial transactions. In a recent data collection exercise, conducted by a research team led by faculty of the Pan-Atlantic University and driven by IT for Change’s project, ‘Towards Inclusive Platformisation in Nigeria – The Regulatory Framing’, sellers on the platforms cited increased visibility as an economic benefit the ecommerce platforms have provided. They seemed comfortable with completing financial transactions offline or through direct payments with customers after their products have been seen on these platforms. While stating convenience as the major benefit of online shopping, respondents in the survey still preferred going physically to stores to purchase items. Two major reasons for this are cyberthreats as well as faulty order ful-

fillment, especially for fashion items and home appliances. For example, one respondent expressed concerns in this manner: “What you see is not what you get, that kind of thing, especially when it comes to items like fashion. Like you see a really pretty bag and then you buy the bag and it’s just some flimsy material. But in the picture, it looked very good. So, you know, it’s not always what it seems.” While some scholars have detailed that improved design and user experience, availability of information, as well as security certificates are some ways to improve customer trust in ecommerce platforms, the data collection exercise, also revealed that responsiveness to customer complaints and feedback, consistent policies over a period of time, delivery of exact order made, as well as explicit assurance of safe and secure platforms, are more ways to address the concerns. Also, lack of timely response by ecommerce platform operators has further fueled user (both merchants and customers) tendency to engage the platform mainly to increase visibility of products and services offered (for the merchants), and a catalogue that compares prices and options available in the marketplace (for the customers). Trust influences conversion to purchase a product or service, as well as repeated visits on the platforms. Simply put, customers feel they can trust your business if their personal

financial data is safe and if timely delivery of the exact item ordered is given priority. During the survey, respondents opined that they still preferred the touch and feel experience that traditional brick-and-mortar stores give. However, before they purchase, they would visit ecommerce platforms to check for latest models available as well as the prices, before proceeding to purchase at the brick-and-mortar stores. A respondent stated that: “it is more convenient to go online and check several platforms and compare prices before going to the store to buy”. The recent acquisition of Konga by Zinox, led to the merging of Yudala (a Zinox subsidiary company) and Konga. The “marriage” has produced an interesting mix of online and offline store components, such that customers can walk into a Konga physical store and examine the item before placing orders. This might be a step in improving customer confidence regarding placing and receiving exact orders made. A further step would be deliberate reassurance to the customer that personal financial data imputed on the platform is safe and secure; as most users still preferred to use their cards on Point of Sale and ATM terminals than input the same details online.

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The importance of GDPR compliance for Nigerian businesses

ADEBAYO SANNI Adebayo Sanni, MD of Oracle Nigeria

he deadline for compliance with the General Data Protection Regulation (GDPR) has come and gone. And while it happened without too much fanfare in Nigeria, companies that think they can ignore the legislation and maintain a business as usual approach are in for a rude awakening. Any organisation (irrespective its size, industry or geographic location) that has dealings with a company or people inside the European Union (EU) must adhere to it. Those not willing to do so, face fines of either 20 million euros or four percent of their global revenue. Already, the past few weeks have seen a notable increase in emails

from subscription lists mentioning data privacy and how the personal information of subscribers are stored and kept safe. For cloud providers that have customers around the world, this is a significant piece of regulation. However, even a small start-up in downtown Lagos that provides a service to a person living in France must be compliant. While a lot of focus is currently on companies inside the EU, it will only be a matter of time before ‘outside’ businesses and services are reviewed and audited. Of course, the cloud provides many benefits to organisations that are required to be GDPR-compliant. Not only does it provide a more secure platform, but the environment is robust and continuously updated to reflect the latest technology innovations. This results in a smoother migration path when it comes to data security and management with GDPR in mind.

Companies should carefully review whether the information they collect about their customers are necessary and, if it is, how securely is it stored and protected from external systems. The days of blindly sharing customer data and insights with third parties are a thing of the past

Changing behaviour At 68 pages with 99 separate areas of focus, it is hardly surprising that many feel intimidated by the GDPR. For those providing cloud or ‘as-aservice’ solutions, there are four key requirements to consider – data

security; rights of individuals; documentation and security audits; and data breach notifications. But even before one can delve into the technical aspects of compliancy, the reality is that many Nigerian businesses need to change the way

they view and use data. Certainly, the situation is not unique to the country with many others struggling to adapt to a new way of capturing, storing, using, and sharing data. It all starts with consent and whether the user agrees to the kind of data being stored about them and what it will be used for. This forces a re-think in the way data is collected. Companies should carefully review whether the information they collect about their customers are necessary and, if it is, how securely is it stored and protected from external systems. The days of blindly sharing customer data and insights with third parties are a thing of the past. An important aspect of this is to make sure the language used in data collection policies is written in a way that the layperson can understand. So, no more hiding behind legalese or difficult to follow technical concepts. Already, there is a groundswell of support to the mantra ‘your data, your property.’ Nigerian businesses must ensure they keep this in mind. This is also where the critically important ‘right to forget’ component of GDPR comes in. A consumer can delete his or her profile at a business with the personal information needing to be

wiped clear. Just consider the impact this will have on social networks.

you so passionately, I implore you to trust my sense of judgement and accept my sincere recommendation of Dr. Kayode Fayemi, candidate of the APC as the right man to get your votes on July 14, 2018. Yes, many of you had your disagreement with him in the past. Just like I also disagreed with him and I know some of you disagreed with him even because of me. But come to think of it, most of the disagreements were not personal but were based on perception of policies and programmes of his administration at the time. Dr. Fayemi did not shy away from this issue and he demonstrated leadership and a high sense of humility and sincerity when, in giving his acceptance speech as the candidate of the APC in May 2018, he publicly apologised to Ekiti people who would have disagreed with some aspects of the policies and programmes of his previous administration. Once again, I specifically call on our teachers in Ekiti State. You know me well as your supporter and ally and I am sure you trust I will never deceive you. Please do not believe the lie that Dr. Fayemi is coming back for vengeance. I have discussed extensively with him and the leadership of the party and I am sure you stand to benefit immensely from his second coming. Be rest assured of a seasoned Commissioner for Education you can work with and be ready to also nominate a Special Assistant to the Governor with the sole responsibility of liaising between the Governor’s Office and your union. Trust me, Comrades, this is not the time for anybody to make you swear on your first or last born. It is the same assurance I give to the State Civil Servants. From the appointment of a level headed and amiable Head of Service that you can happily work with to a greater inclusion of the

Body of Permanent Secretaries in the governance process as well as priority attention to matters of establishment, training and pensions, you can be rest assured of a better deal. And to the Local Government Staff across the State, again you can look forward to a better deal regarding priority attention to peculiar matters and challenges that face you, including also in the areas of staff welfare, establishment, training and pensions. You can look forward to getting a Commissioner for Local Government you can happily work with as well as your own nominee as Special Assistant to liaise between the Governor’s Office and your Union among others. Again, to Ekiti people, I stick out my neck to say that Dr. Kayode Fayemi of 2018 has a greater scientific understanding of what is to be done to bring the glory of Ekiti State back from sabbatical. He has had the rare privilege of a better exposure at the Federal level with wider network that he can place at the disposal of the government and people of Ekiti State if given the mandate on July 14 to lead Ekiti as Governor yet again. Above all, he has come under grace and maturity that only comes with age: Dr Fayemi is 4 years older than when he left office as Governor in 2014; he is eight years older than when he was sworn in as Governor in 2000; and he is eleven and a half years older than when he first stood for Governorship election in 2007. I know you are all praying for me all over Ekiti for quick recovery. Electing Dr. Kayode Fayemi with your votes on July 14, 2018 will be a major therapy to boost my healing process. I sincerely look forward to it.

Local guidance Fortunately, Nigeria has the Digital Rights and Freedom Bill for companies to fall back on. Even though it is still awaiting presidential assent, the bill does provide organisations with guidance on data handling, collection, and use in the country. Furthermore, compliance is not something that is done once and forgotten. Instead, decision-makers need to continually review and assess their data management strategies and policies. The GDPR is an ongoing concern that requires an integrated approach to data. Fundamentally, local companies do not have the luxury of using disparate databases and systems any longer. They must all be integrated, with the data securely stored every step of the process. Even though the deadline of 25 May is long forgotten, companies must review and assess their policies to ensure they do not fall foul of regulators. The cost of not doing so is too severe to ignore. Send reactions to: comment@businessdayonline.com

Ekiti 2018: I nominate Fayemi

MICHAEL OPEYEMI BAMIDELE Hon. Bamidele, former Member of the House of Representatives and former Lagos State Commissioner for Information and Strategy, is the Director General of the Dr. Kayode Fayemi / APC Governorship campaign.

his is a short message to the people of Ekiti State. To begin with, I want to express my utmost gratitude to all of you for your supports and prayers since the unfortunate incident of Friday, 1st of June 2018 when I suffered multiple gunshot injuries. The massive show of support by wellmeaning Ekiti sons and daughters which has cut across all social strata has left me so extremely humbled. From the heavy presence of Okada riders, youth and women leaders who jam-packed the premises of Ekiti State University Teaching Hospital that Friday night, with many of them pulling their shirts to donate blood while I was in surgery, to the powerful presence of delegation of the Ewi of Ado Ekiti and Oluyin of Iyin Ekiti by Saturday morning, followed by the personal visit of our referred Aare Afe Babalola, who was accompanied by his wife and principal functionaries of Afe Babalola University. On top of the visit, Aare Afe Babalola announced that whatever bill incurred with respect to my treatment should be sent to him for payment. Of course, I cannot thank

the management and staff of Ekiti State University Teaching Hospital, personally led by their CMD, enough for their prompt intervention as well as brave display of professional diligence and depth. I also thank all the Churches, Mosques and other religious platforms and leaders who have been praying for me all over Ekiti State. The role of our political leaders in Ekiti, especially Otunba Niyi Adebayo, Dr. And Mrs Kayode Fayemi, Engr. Segun Oni and Evangelist BamideleOlumilua in ensuring that I was stabilised enough and airlifted me from Ado Ekiti to Lagos for intensive care can only be a matter for another day. In Lagos, the earliest callers at the intensive care centre included Governors Akeredolu, Tambuwal and Aregbesola of Ondo, Sokoto and Osun States respectively. Then cameAsiwaju Bola Ahmed Tinubu in the company of Chief Bisi Akande, GeneralAlaniAkinrinade, Chief Pius Akinyelure, Mr Sunday Dare and Senator OlorunnimbeMamora. And by the following week, Asiwaju had concluded arrangements to move me to one of the best hospitals in the UK for further treatment, providing his private aircraft to fly my wife and I to London. Again, what can I say except to note this act of extreme kindness as a matter for another day as saying ‘thank you‘ would simply be an understatement. As I was settling down in London, I received a powerful delegation led by the Secretary to the Government of Ogun State, Mr. Taiwo Adeoluwa, on behalf of His Excellency, Governor IbikunleAmosun. This was followed by a phone call by His Excellency, Governor Bagudu of Kebbi State. The show of love continues…… However, blessed as I am and in spite of this show of love, I still

feel the pain and trauma of multiple gunshot injuries, which can only be appreciated and accurately imagined by those who actually saw the extent of the wounds. So, it is a fact that as I write to Ekiti people at this moment right on my sick bed and with all manners of machines connected to my body, I am truly in pain. But I am more concerned that Ekiti today is a State in PAIN and I am more worried about a greater pain Ekiti people are going through: the pain of hunger. The pain of wants in the midst of plenty. Our people are going through the pain of poverty, which stares both the young and the old in the face. There is the pain of unemployment among our teeming youth population, many of whom are graduating from the Universities, Polytechnics and Colleges of Education to end up as Okada riders. There is the pain of insecurity and misplacement of priorities. There is the pain of the elite not being proud to introduce himself as an Ekiti man either home or abroad because people will ask where exactly did Ekiti people get it wrong. It is against this background that the Saturday 14th July 2018 Governorship elections will be holding. I, therefore, consider it important for me to make a clarion call to Ekiti people not to see the election as being a competition majorly between the All Progressives Congress (APC) and the People’s Democratic Party (PDP). But, rather, to recognise the election as an invitation to choose between light and darkness; between commitment to global best practice standard and mere playing to the gallery; and between a collective rescue mission and a one man show. I say to you the good people of Ekiti State, once again, that our past was only a story told while our future can still be written in gold. As someone you love so much and who also loves

Alale Ekiti a gbe a o! In se re!!

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

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Friday 13 July 2018

Fuelling poverty through import ban

he federal government recently announced that it plans to close Nigeria’s border with Benin Republic to tackle the menace of rice smuggling into the country. The minister of Agriculture, who announced the move, said shutting the borders had become necessary to encourage local production and sustain the economy of the country. The federal government and even the president had been claiming that Nigeria was on its way to self-sufficiency in rice production as the country’s rice import was down by 90 percent. The president also boasts that rice import will be completely stopped later this year to encourage local production. Well, rice importation through the ports have been technically banned since 2015 as a discouraging 70 percent tariff more or less effectively dissuaded importation through the ports, while it remained totally banned through the land borders.

The reality though, as BusinessDay findings have shown is that, as legal importation to Nigeria drops drastically, neighbouring countries such as Benin, Cameroun, Niger and others have seen their parboiled rice imports increasing. Ironically, these countries mostly consume white rice (another variant of the staple), whereas they import more parboiled rice, which, consideration their population, can last them for a decade. However, they continue to import parboiled rice every year while legal imports continue to decline in Nigeria as smuggling increases exponentially. Data by the Thai Rice Exporters Association shows that Benin Republic’s rice imports from Thailand from January to November 2017 stood at 1.64 million metric tonnes, a 32 percent increas e from 1.24 million metric tonnes within the same period in 2016, and an increment of 104.45 percent from 805,765 metric tonnes exported to Benin republic in 2015. Cameroun also imported 663, 667 metric tonnes of parboiled rice from

Thailand between January and November 2017, a 47.64 percent increase from 449, 513 within the same period in 2016, and 449, 297 metric tonnes in 2015. It is safe to say that most of the imports to these countries end up in the Nigerian market through smuggling. An investigation carried out by BusinessDay some months ago also shows that smuggling is rife along the official border points and despite the fact that rice importation is banned through the borders, traders continue to import the commodity through official border points usually after settling customs officials. What is more, the prices of the smuggled rice are way lower than those of locally produced rice. Consequently, poor Nigerians have continued to patronise the imported rice, which they feel is also of higher quality than locally produced rice. Now that the reality has dawned on the government, it is planning to shut the border with Benin Republic and also use drones to monitor smuggling so as to prevent

or stop them. But we need to ask: does the government also plan to shut the borders with Niger Republic, Chad and Cameroon also? Does it plan to expel all the custom officials at the borders that connive with smugglers to bring in the rice? We m u s t s t o p c h a s i n g shadows. We cannot at one instance, be advocating free trade and be putting barriers to free trade all over. Secondly, the government cannot be stifling competition just so to support and protect some inefficient but big cartels of local rice producers. The government cannot be claiming to be interested in addressing poverty and at the same time encouraging or supporting monopolies that always results in higher prices. Imported rice have continued to appeal to Nigerians becaus e they are way cheaper and of more quality than the local ones. Instead of fighting the wars of the local rice cartel, the government would do well to improve their operating environment to be able to c omp ete favourably with imported rice.

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Friday 13 July 2018

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BUSINESS DAY

MoneyInsight Personal Finance: Investing Retirement

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How Nigerians reacted to Osinbajo’s visit to Silicon Valley FRANK ELEANYA

ince the beginning of this week, Nigeria’s Vice President, Yemi Osinbajo has been on tour of Silicon Valley, in California, United States of America. The goal of the visit, according to the Presidency, is to emphasise the Buhari administration’s policies such as the Ease of Doing Business reforms, which have improved the country’s ranking in the World Bank’s Ease of Doing Business Index 2017. The tour which commenced on Tuesday has seen the Vice President visit CEOs like Sundar Pichai of Google and Allen Blue, co-founder of LinkedIn, over 20 “important” tech investors and the biggest players in Hollywood such as Universal Studios, Warner Bros, 20th Century Fox, IMAX, and Disney. At a fireside chat with Allen Blue, Osinbajo described the role of the recently inaugurated Technology and Creativity Advisory Group to drive policy in tech innovation and entertainment. “By 2050, Nigeria will have the third largest population in the world,” he said. “We understand that we have to explore ways of delivering education outside conventional classrooms.” Since the news of the tour was announced by the Presidency, Nigerians have taken to popular social media platform, Twitter to air their views. There are those who say the tour is ill-advised and a misplaced priority as the government should have taken care of problems at home before venturing to invite investors to come. “Procter & Gamble just left

the country, one year after investing in Nigeria and you think tech giants are not aware of anti-business policies of this administration,” @ChrisEzaka tweeted. “Do you have electricity to sustain any of these tech giants even if they decide to invest in Nigeria?” @kingikemefuna66 asked. “You should be meeting with General Electric to bring power to Nigeria.” “The VP proud and intellectual, but it breaks my heart how he puts the cart before the horse. Tech? Where is the power to sustain it?” @pearly_ al said. @adeb123 buttressed the point thus “@ProfOsinbajo we cannot put the cart before the horse. Innovation and technology cannot thrive where there is no electricity and the internet access is expensive. We are wasting time.” Nevertheless, a significant number of Nigerians saw the Vice President’s visit as positive and could spur new developments in the tech sector. “Yes, the tech sector has

arriers and questions that undermine growth of the financial technology (Fintech) space in Nigeria could be addressed with more clarity. At a Market Makers discussion organised by Omidyar Network on Thursday, 5 July, leaders of various fintech companies done most of its accomplish- in Nigeria including Paga, ment without government help. There has been some government help though. We have broadband in Yaba thanks to @OmobolaJohnson. VP can assure investors of a positive investment climate and their welcome to Nigeria,” “oviosu, CEO of @mypaga wrote on his timeline. “Sometimes we need people at the highest level of governance to see for themselves what is possible,” @OmobolaJohnson former minister of ICT tweeted. “My trip to Silicon Valley when I was honourable minister opened my eyes to possibilities of tech entrepreneurship in Nigeria and the role of government in facilitating, supporting and catalysing.” “We are glad that you are placing Nigeria on the world map of innovation, technology and making the world know that Nigeria is a country blessed numerous human resources,” @kemisolaAdeun1 tweeted. The Vice President is expected to be back

igerian tech startups received financial investments in excess of 800 percent in the second quarter (Q2) of 2018 compared with first quarter (Q1). Nigerian Startup Funding Report compiled by Techpoint and received by BusinessDay showed that while the number of companies that got funding went up by 27, the total value of funding was at $73,685,003 from

21 deals. Two-thirds of the total funding worth 98 percent in value came from foreign investors. Local investors funded less than eight deals. Financial services remained the most attractive for investors as startups in the segment brought in 75 percent of the total funding in value for the quarter. Startups got the most funding deals from grants, however one Series C funding round worth $47,500,000 represents 64 per-

cent of the total funding in value. The total value of Series A funding round at $13,500,000 for the quarter is higher than the entire funding in Q1. Pre-seed, seed funding and equity investment brought in $10,271,143, $1,150,000 and $50,000 respectively. The month of May saw the biggest funding deals including Cellulant’s $47,500,000; O-Mobile Multimedia Limited ($10,000,000); and Lidya ($6,900,000).

Financing

Fintech firms seek regulatory clarity to address barriers in Nigeria FRANK ELEANYA

Funding to Nigerian tech startups in Q2 outpaces Q1 by 800% FRANK ELEANYA

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Flutterwave, and Lidya acknowledged the potential in the market. They however noted that growth is not at par with expectations as the ecosystem continues to be overburdened by regulatory hurdles. “One of the main barriers to advance financial services in Nigeria is amount of licenses a business needs to apply for and their cost,” Iyinoluwa Aboyeji, founder of Flutterwave said. The Central Bank of Nigeria (CBN) licence requirement for mobile money include three years tax clearance of each of the founder of the prospective fintech startup, draft agreements with technical partners, participating banks, switching company, merchants, telecommunication companies, and any other party; payment of nonrefundable application fee of N100,000 to CBN; and evidence of shareholders’

fund of N2 billion. According to Aboyeji, opening the financial playing field means having some levels of regulation tempered per activity, to everyone. Regulatory barrier is also seen as a contributor to low funding of the ecosystem in Nigeria. Tunde Kehinde, CEO of Lidyadotco observed that the MSME credit gap in emerging markets is $2.3 trillion.

A WeeTracker’s report on funding destination in Africa for the first half of 2018 showed that, although Nigerian startups had the most deals (31 deals worth $29.41 million) on the continent, investors poured in more money (about $82.86 million) in Kenyan startups which closed lesser deals compared to Nigeria. “We need to create local pools of finance to fund more businesses and get middle managers in financial services to take risks,” Tayo Oviosu, CEO of Paga said. He suggested that Nigeria’s difficult business environment could be responsible for failure of businesses to replicate successful models across Africa in the country. He also noted that the absence of telecom operators in the mobile payment space was hindering growth of most fintech companies.

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Friday 13 July 2018

Influencers

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Sterling bank provides financing for solar energy projects

… Appoints 5 Nigerian companies to execute scheme Stories by ISAAC ANYAOGU

terling Bank, the only Nigerian bank with a functional renewable energy desk is making available financing for renewable energy projects for industrial, small business and residential users in Nigeria. Sources with knowledge about the matter informed BusinessDay that five companies including Abuja based BlueCarmel and Elec3city, have signed a memorandum of understanding to provide offgrid power to industrial and residential users respectively. BusinessDay also gathered that Segun Adaju’s Consistent Energy Ltd is also a beneficiary of the project, the other beneficiaries are yet to be confirmed. Some of the beneficiaries confirmed say that they have had discussions with the bank over the matter.

“Our firm is in talks with the bank,” says Segun Adaju, who doubles as the president of Renewable Energy Association of Nigeria (REAN), a trade association of alternative energy entrepreneurs. The challenge of huge upfront costs involved in

acquiring solar energy is the strongest discouraging factor for rapid solar energy adoption in the country. To set up a 2KV system capable of power a refrigerator, 5 lighting points, a television and sound system set, a user would be required to pay as much as N700,000-

N800,000 in a three bedroom apartment. Systems that can power an entire building including air conditioners and pumping machine could cost between N2M – N4M. Considering that the lifespan of solar panels is over 20 years and good batteries can

last up to five years, the cost over time is cheaper than buying diesel which pollutes the environment. However with financing from the bank, a residential users can acquire a loan of N800,000 which the bank pays to the supplier who procures the and installs the

solar infrastructure which the customer repays over a 12 months period at the interest rate of 27%. “The beauty of the arrangement is that the solar energy supplier has the duty of ensuring that only high quality batteries and solar panels are provided for the customer wherever he can get it. The customer will have a two year warranty and contributes zero equity. All he needs is a salaried account with a verifiable BVN,” said Ernest Akale, CEO of Elec3city. Nigeria’s city centres are replete with shards of broken solar projects from constituent projects of politicians who awarded the contract to their cronies, who in turn purchase substandard solar infrastructure and built phony projects. Others are due to lack of maintenance as actions as simple as failing to routinely wipe the dust off solar panels can reduce their lifespan.

INSIGHT

Highlights from Hogan Lovells renewable energy report lll Advocates creative financing strategies for off-grid projects … Securitisation, Green bonds, Private equity, Chinese-backed loans, Islamic financing

n the third and final series of our analysis on the Hogan Lovells research on the Renewable Energy sector in Africa with the theme: Africa and Renewables Wholesale change or short term surge?, we focus on some of the approaches recommended to raise capital to finance renewable energy projects. As the report shows, many projects fail not so much due to lack of financing but the absence of the right kind of finance structured to meet the goals of the project. According to the report, financiers and governments are increasingly looking at innovative financing solutions to get projects off the ground. In South Africa where commercial banks are faced with concentration risks, have resorted to removing assets from their balanced sheets through securitisation process, thereby liberating capital for the next opportunities. Many of these prospects have come from the renewable

energy sector which is seeing rapid growth. Another funding mechanism highlighted in the report, is the issuance of sovereign green bond in Nigeria worth about $30million in December 2017. This made Nigeria the first African country and only the fourth in the world to issue green bonds. “It takes significant efforts for a country to issue its first green bonds compared to traditional bonds,” said a World Bank spokesman cited in the report who worked on the deal. Nigeria had to build capacity within its ministries and authorities, schedule its bond to coincide with the national budget, coordinate its institutions and build criteria for projects to receive the funds, according to the spokesman. With more African governments using sovereign bonds to raise debt for infrastructure projects generally more green bonds are likely to follow. Global green bond issuance rose to $155 billion in 2017 according to a report

obtained the Market Development, Climate Bonds Initiative (CBI), and over 1500 green bonds were issued across the globe during the period, accounting for 78 per cent growth in 2016. The group said that projects eligible for Green Bonds financing were renewable energy, pollution prevention, green buildings, clean water, energy efficiency and climate change adaptation, among others. Another source of funding is private equity which is featuring heavily in the financing of renewables projects

in Africa. At least $4billion from the private equity and hedge funds will be used to finance Ethiopia’s upcoming geothermal projects as it attempts to replicate the success Kenya has had in becoming the world’s largest geothermal power producer. East Africa’s geothermal potential exceeds 15GW and represents a $40billion investment opportunity, according to USAID-led initiative Power Africa. The Nigerian off-grid energy investment company, All On, in February this year,

Analyst: Isaac Anyaogu, Email: isaac.anyaogu@businessdayonline.com, 07037817378,

announced equity and debt investment to Port Harcourt based Green Village Electricity (GVE), Nigeria’s leading mini-grid player, for expansion in the Niger Delta and across Nigeria, while ColdHubs is receiving a convertible debt facility to expand its solar-powered marketplace cold storage business to new markets in the region. These developments came three months after All-On announced its first set of transactions in Nigeria’s off-grid market, and two months after the firm and U.S. Africa Development Foundation (USADF) announced a $3 million partnership to expand access to energy for underserved and unserved markets in Nigeria. Chinese participation in the financing of renewables projects is also another source of funding mentioned in the report. This has been on an upward trend particularly in large-scale hydropower projects, and this trend will continue, the report says. Some examples of the

projects funded by Chinese funds include Kaleta and Souapiti dams under construction in Guinea – which will have a combined capacity of 800 MW – were financed by Chinese investors and have engineering, procurement and construction contractors from China. Another Chinese backed hydropower project is under construction in Uganda. A further option includes Islamic Financing which the report says could offer an additional source of funding. Islamic lenders will consider the bankability of any project on its own merits. However, the development banks within the Islamic space that seek out opportunities are not solely driven by commercial gain. “Renewable energy projects in Africa lend themselves to the ethos of Islamic finance which fundamentally seeks to better people’s lives in addition to generating a return for investors,” said Imran Mufti, a Dubai-based partner at Hogan Lovells. Graphics: Joel Samson

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African Trade Insurance Agency pays first dividend without Nigeria benefiting

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

Jim Ovia wants NCC allow insurers deploy mobile phone technology to drive financial inclusion …calls for collaboration among regulators Modestus AnaesoronyE in Abuja

he Founder of Zenith Bank Plc and Chairman of Zenith General Insurance, Jim Ovia has called on the Nigerian Communication Commission (NCC) to allow insurance companies take advantage of mobile phone technology to drive financial inclusion, and reach the mass of uninsured population in Nigeria. This he said will not only deepen penetration of financial services in the country, but will also take the mass population of Nigerians in rural communities out of poverty. To make this happen, the National Insurance Commission (NAICOM), the Central Bank of Nigeria (CBN) and the Nigerian Communication Commission (NCC) Jim Ovia said must collaborate to allow for integration of services. Jim Ovia, made the remark at the 2018 National

Insurance Conference (NIC) organized by the Insurance Industry Consultative Council (IICC), at Transcorp Hilton, Abuja. Speaking on the theme of the Conference “Insurance Industry and Financial Insurance”, Jim Ovia said insurance is a primary solution to break the poverty cycle, for which only a few other financial products are as powerful. He said that exclusion from insurance products often results in people being trapped in a poverty cycle which is exacerbated by poor health. This is especially so because of the risk transfer mechanism of insurance. “Everyone is exposed to risk either through normal everyday existence or via the enterprises that they may embark on, and so insurance enables peace of mind which enables people to take more risks with higher expected returns. It also acts as stabilization against shocks should these risks materialize.” Emphasizing the importance of digital distribution as a key component of enabling

financial inclusion, he said “Prudential Plc, our global partner at Prudential Zenith, achieved a rapid take up of micro-insurance products via mobile technology in Ghana. Their mobile offering saw a take up of about 1.5million people in just over 12 months. While appreciating the fact that products and bureaucracies associated with traditional insurance should be kept behind in driving micro insurance and other associated policies towards financial inclusion, he tasked the regulators to create the enabling environment. While however thanking NAICOM for making the guidelines for micro insurance among others. He said “Prudential Zenith, Nigeria together with other insurance companies are ready to deploy micro insurance products through the use of mobile phone technology, as soon as both the NCC and NAICOM could collaborate and approve to do so.” “I would like to encourage NCC and NAICOM to collaborate and approve the use

of mobile phone technology in distributing micro insurance products in Nigeria, Jim Ovia said. Earlier, Mohammed Kari, commissioner for Insurance/ CEO, National Insurance

Commission (NAICOM) said the theme of the Conference clearly reflects the direction the industry is headed which is the retail end of the market. Kari said the timing of this Conference could not have

L-R: Emmanuel Ekuwem, secretary to Akwa Ibom State Government; Brian Herlihy, CEO Black Rhino Group; Udom Emmanuel, governor, Akwa Ibom State; Adedayo Ojo, QIPPL Project Advisor/ CEO Caritas Communications, during the Community Partnership Agreement signing ceremony for the Qua Ibo Power Project (QIPP) in Uyo.

Jumia sees Nigeria earn N3.63bn from Radisson Group appoints new regional director for North Africa Brussels. past experience in this terriFRANK ELEANYA domestic tourism by end of 2018 He went on to hold leader- tory will play a significant role

n what seems like a bright prospect for domestic tourism in Nigeria, the sector is expected to contribute N3.63 billion to the country’s GDP by the end of 2018. The number of international arrivals in the country and employments generated by the sector are expected to grow by 1.5 percent and 3.4 percent respectively by end of year, which are 1.8 million international arrivals and 3.4 million jobs. Omolara Adagunodo, managing director of Jumia Travel Nigeria stated this while over viewing the content of the 2018 Nigeria hospitality in Lagos. The report also provided insight on the two main components of domestic travel: leisure and business travel, and both grew at 2.7 percent and 2.8 percent, that is 1.98 billion and 1.92 billion contributions respectively to domestic earnings in 2017. Tourism expert and founder of Akwaaba Travel Market, Ikechi Uko who commended the effort of Jumia Travel in compiling the report said: “the data and figures featured in the report can massively expand the footprint of the Nigeria travel industry

and take it to the next level.” While announcing that Nigeria will soon subscribe to the Tourism Satellite Account (TSA), which is the internationally recognised standard statistical framework for the economic measurement of tourism, Uko urged stakeholders within the sector to support and rely on the data in reports such as Jumia Travel’s. Uko also commented on one of the challenges plaguing the sector, as identified in the report, such as insufficient flights. He said: “the number of flight pairs in Nigeria is very low. Lagos and Abuja are already saturated because almost all airlines want to fly there. As such, we need more flights to cut across the country because the travel industry cannot grow without a functional air transport network.” The Nigeria Hospitality Report from the stables of Jumia Travel is fast becoming a primary source of data for the experts and stakeholders in the travel industry as it offers a profound and holistic insight into the industry that accounted for 1.9 percent of total GDP as a direct contribution, and 5.1 percent as a total contribution to GDP.

adisson Hotel Group has announced the appointment of Frederic Feijs as the regional director for North Africa and Egypt with immediate effect. In a statement released to BusinessDay, the Swedish hospitality giant said Feijs appointment is a homecoming, having begun his career in the hospitality industry in 1998, at Radisson Blu Royal Hotel,

been more significant especially as the Commission prepares to launch the Nigerian Insurance Industry Development Plan (NIIDP), which has Financial Inclusion as one of its major components.

ship positions across multiple countries and continents until his most recent position as regional general manager in French Polynesia. “I am thrilled to announce Frederic’s appointment as he assumes responsibility for some of our key territories in Africa, one of Radisson Hotel Group’s core growth markets,” Tim Cordon, area senior Vice President, Middles East, Turkey and Africa. “Frederic’s

in strengthening our network in the region and increase operational synergies, for the greater benefits of owners, employees and ultimately our guests.” Feijs is a Belgian national with extensive experience in Francophone Africa having worked in Tunisia, Ivory Coast, Mali and Egypt in recent years with Radisson Hotel Group. Feijs, in his new role, takes responsibility for the group’s

presence in Francophone Africa and Egypt. He will play a role in the growth of the brand in these markets. “I am very excited to re-join Radisson Hotel Group and honored to lead the team in Francophone Africa and Egypt,” Feijs said. “Our mission is to enrich the lives of our guests, team members and the community in this unique area and make every moment matter.” Frederic will be based at the Radisson Hotel Group’s Area Support Office in Dubai.

SON raids, seals Kano shops over substandard textile, phones HARRISON EDEH, Abuja

he Standards Organisation of Nigeria’s Surveillance, Intelligence and Monitoring (SIM) Unit, in a renewed efforts to stamp out sub-standard products across the country has swooped on various warehouses in the ancient city of Kano stocked with suspected substandard African prints popularly known as “Atampa”. The team with a detachment of security agents sealed 21

warehouses stocked with textile materials worth hundreds of millions of naira, putting them on hold until all relevant laboratory tests are concluded and analysed to confirm the quality. Speaking to newsmen after the raid, the Coordinator of the SIM Unit, Isa Suleiman stated that the owners of the warehouses were flouting the law by stocking suspected substandard African prints that do not meet with the requirements of the relevant Nigeria Industrial Standards (NIS). The standard he said, stipu-

lates that African prints should be made of 100 percent cotton and must not be colour fast amongst other relevant attributes. According to him, initial surveillance revealed that the textiles being sold as African prints were materials suspected to have been manufactured with up to about 70 percent polyester and about 30 percent cotton. Some according to him were suspected to be completely polyester which is at variance with the specifications of the Nigeria Industrial Standards. The SIM Coordinator

stressed in a statement issued that SON will not allow the proliferation of substandard textile materials in the country, pointing at the negative effects such activities have had on the once buoyant textile industry in Nigeria and the attendant job losses. He further revealed “that the textile products found in the ware-houses were deemed not to have passed through the legal channels of entry but rather believed to have been either smuggled into the country or shipped in under false declarations at the ports of entry”.

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COMPANIES & MARKETS African Trade Insurance Agency pays first dividend without Nigeria benefiting guarantees, sovereign guarantee and risk mitigation, disclosing that many African countries are already members of the agency. In a much anticipated announcement, the African Trade Insurance Agency (ATI) on Tuesday declared that its General Assembly had approved the first ever payments to shareholders. The announcement comes on the heels of ATI’s Annual General Meeting held in Abidjan, where the company also announced its recordbreaking 2017 financial results for the sixth consecutive year. The company’s CEO, George Otieno noted “We have been planning for this moment for several years and I am happy to finally announce that we are ready to give something back to our shareholders. This signals our intention to continue showing value to our member governments and shareholders, while providing non-member countries and institutional investors an incentive to join.” In 2017, ATI recorded gross exposures of $2.4 billion and, in the same period, the company covered investment and trade

TI has earmarked an initial $2.5 million in payments to its shareholders which include 14 African member governments. Unfortunately Nigeria that was supposed to benefit from this dividend will not be getting, for the lack of presidential readiness to conclude documentation and signing of Memorandum of Understanding (MOU) between Nigeria and the African Trade Insurance (ATI) agency. African Trade Insurance expects its annual insured trade and investment portfolio to double to $7 billion within five years, driven by new members including Ghana and Nigeria, which are expected to finalize their registration before end of 2018. BusinessDay investigation showed that ATI’s request to have a workshop in Nigeria, with Vice President Yemi Osinbajo, being present to finalise registration requirements has not been able to sell through.

This development analyst say is undermining Nigeria’s participation in the continental insurance agency that was established to provide risk guarantee for private investors coming into Nigeria as well as exporters from the country. Minister of Finance, Kemi Adeosun had in September 2017 announced the Federal executive council Meeting’s approval of Nigeria’s membership of the African Trade Insurance Agency. Adeosun said the council approved a memo she presented which harped on the necessity of Nigeria to be part of African Trade Insurance Agency to provide risk guarantee for investment coming into Nigeria as well as export from the country. The continental insurance agency she said was set up with the support of the World Bank, owned by African government and is registered under the United Nations treaty to provide insurance and promote economic growth in member countries Adeosun said joining the agency would provide risk

Lafarge reward customers, distributors for sustainable business relationship

Modestus Anaesoronye

o underscore the depth of the symbiotic relationship existing between them, Lafarge Africa, leading building solutions provider and a member of the LafargeHolcim, has rewarded its Nigerian customers for a sustainable business relationship. The company recently rewarded her customers and key distributors for excellent performance in the year so far with different prizes like tricycles, deep freezers, a fully sponsored trip, with spouse to Dubai, smart TVs, Laptops among others. “As our customers, you are at the heart of our very existence. If you do well, we do well; if you don’t do well, we don’t do well. Such is our symbiotic relationship. So, we have also

CHUKA UROKO chosen this time to appreciate your performance so far this year,” Michel Puchercos, the company’s CEO, told their customers in Lagos. Puchercos added that the event also was an opportunity to get direct feedback from the customers on how to serve them better. In response, BO Oshuntola, the managing director of Temitope Oil Nigeria Limited, expressed gratitude to the company for the recognition and encouragement given to them

as distributors and customers. “On behalf of my colleagues, who have received an all expense paid trip to Dubai, I want to say a big ‘thank you’ to Lafarge Africa. To whom much is given, much is expected; so we promise to increase our efforts as our relationship gets stronger,” Oshuntola assured. A leading Sub-Saharan Africa building materials company, Lafarge is a subsidiary of LafargeHolcim which is a world leader in building materials. The company is listed on the Nigerian Stock Exchange with presence in Africa’s two

L-R: Melvin Ayogu, senior resident fellow, Centre for Public Policy Alternatives (CPPA); Oluwakemi Adekunle, micro enterprises directorate, Bank of Industry (BoI); Kelechi Ekegbe, executive secretary, Gadal Capacity Development Foundation, and Ije Jidenma, managing partner, Leading Edge Consulting, during a report of Hawkers And The Urban Informal Sector: A Study of Street Hawking in Lagos State, organised by Gadal Capacity Development Foundation in Lagos. Pic by Olawale Amoo

activities across the continent valued at $10 billion. ATI also posted a $10 million profit representing a 55 percent increase over 2016. ATI owes its strong results in part to growing demand

largest economies, Nigeria and South Africa. Lafarge is actively participating in the urbanization and economic growth of Africa. Combining its operations in Nigeria - Ewekoro and Sagamu plants in Ogun State, Ashakacem in Gombe State, Mfamosing in Cross Rivers State, Atlas cement in Rivers State and Ready-Mix Nigeria with its varied operations in South Africa, Lafarge Africa has a current installed cement capacity of 14.1Mtpa. This is in addition to strong market leading positions in Aggregates, Ready mix concrete and Fly Ash.

More winners emerge in Star Lager Beer’s consumer promo

total of twenty new winners have emerged in Star Lager United We Shine Millionaires Promo winning one Million Naira each at a gala ceremony in Enugu and Ibadan respectively. This follows the previous week’s presentation event in Abuja, where eleven people were awarded their prizes. This week’s lucky winners include Promise Nnabuo, a twenty seven year old trader based in

Ibadan, Michael, a thirty eight year old driver, and Adewale, a fifty year old mechanic. The twenty new winners, who couldn’t hide their joy and happiness were ecstatic all through the evening, while meeting with the Star Lager teams in Ibadan and Enugu during the presentation event. After the emotional presentation, Promise Nnabuo spoke of his disbelief and excitement - “I’m still in shock to be hon-

est because everything still feels like a dream to me. I just bought my usual bottle of Star and I only wanted to chill with my friends, but I looked under the crown cork and couldn’t believe my luck. I’m grateful to Star Lager for this promo and the prize.” Enugu based Itabana Effiong echoed similar sentiments as he described his win as a “life changing experience and the best news of the year.” Michael was also full of

praise for the Star brand and expressed gratitude and joy for the unexpected windfall. Speaking at the Ibadan Star Gala prize presentation, Lekan Olayinka, Regional Trade Marketing Manager Ibadan, for Nigerian Breweries Plc, said, “We are thankful to our customers who have been loyal to the Star Lager brand over the years, and we want to continue rewarding Nigerians across the country in the United We Shine Millionaires Promo.

from investors and African governments for their products as the continent continues to position itself as an attractive destination for investors. Africa’s drive to increase trade within its borders is also fuel-

ling ATI’s success. The African multilateral insurer also announced the Government of India’s $10 million shareholding, which will be represented by ECGC, India’s export credit agency.

Fidelity Bank wins Banker of Year at Brands awards

idelity Bank Plc has been recognised at the 2018 Brands & Advertising Excellence Awards held recently in Lagos. Nnamdi Okonkwo, the bank’s chief executive officer was named ‘Banker of the Year’, whilst the bank was adjudged to have had the most Outstanding Television Commercial in 2017. According to marketing Edge, the organizers; Okonkwo bagged the Banker of the Year in recognition of his visionary leadership and drive which has changed the fortunes of the Bank’s through a customer-centric approach. “Fidelity Bank, under Okonkwo’s dynamic management, has turned full circle in the attainment of brand equity and remarkable growth in profitability” it stated. C o m m e nt i n g o n t h e awards, Okonkwo thanked the management of Marketing Edge for the recognitions, stating that they have given further boost to the bank’s aspiration of becoming the financial brand of first choice to all. He dedicated the awards to all stakeholders, including customers and staff members, for their support and contributions to bank’s steady growth and financial perfor-

mance. The ‘Our Word’ campaign was launched in 2017 and headlined with a television commercial to underscore Fidelity Bank’s commitments to always keep its word to customers and stakeholders. The campaign was according to Divisional Head, Brand and Communications, Fidelity Bank, Charles Aigbe, was designed to underscore the very essence of the bank, epitomizing its commitment to keeping faith with customers no matter their class or creed. “We wanted to remind our customers and the public to hold us to our words and reinforce our resolve to continue to providing excellent banking services and solutions in easy and convenient ways” said Aigbe. Headquarter in Lagos, Nigeria, Fidelity Bank is a full-fledged commercial bank, with over 4 million customers who are serviced across its 240 business offices and various other digital banking channels. The bank has in recent times won accolades as the Best SME Friendly Bank, Best in Mobile Banking and the Most Improved Corporate/ Investment Bank among several industry awards and recognitions.

Friday 13 July 2018

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BUSINESS DAY

COMPANIES & MARKETS ‘Home and You’ Furniture Company will boost Lagos economy, says Ambode MIKE OCHONMA

he historic town of Ibeshe, a suburb of Lagos State came alive this week following the grand opening of Home &You Ultra Modern Furniture factory in Ikorodu. In what he described as the first furniture company of its kind in the Ikorodu axis, Akinwunmi Ambode, the executive governor of Lagos State stated that the commissioning of the multi-million naira factory is a clear indication that the efforts of the state government to provide security and infrastructure is beginning to yield positive results. Represented by Rotimi Ogunleye, the state Commissioner for Environment and Physical Planning, governor Ambode noted that, the industrial made-in-Nigeria furniture produced by Home and You will compete very well with

foreign products of their kind. At the event attended by dignitaries from both the public and corporate sectors, including the Lagos monarchs, the state chief executive stressed that apart from bringing development to the Ibeshe community, the factory will play a sustainable role towards employment creation and increase the Nigeria’s Gross Domestic Product (GDP). Giving more insight into the company, Feyisola Abiru, chief executive officer and Founder, Home and You, said passion and undying crave for success have been the reason she was able to weather the storm in the early days of the 21 years old business. She declared that if not for the support from BOI, the company would not have attained the position it has gotten to presently. Continuing, the CEO said, ‘’They gave us the first facility in 2006 to get us running. We acquired world class machines

from Italy. And when we needed to improve on our quality and expand the capacity of the business, we approached them again for another facility which was granted in 2017”. On his part, Olusegun Osunkeye, pioneer chairman of the company, described Home and You as a young adult going places. Osunkeye, former chairman of Nestle Plc , and chairman the board of the company for seven and half years, described Feyisola as a decisive lady, who is well focused in her business. Waheed Olagunju, executive director of Bank of Industry (BoI) who represented the financiers of the project, said the bank had supported the furniture company for about 13 years. In his words, “What’s being commissioned today is an expansion. Home and You is a role model for others to emulate. By every standard, this factory is one of the best in the world and if the owners come again, we will give them loan”.

Business Event

L-R Franco Maria Maggi, marketing director, NB Plc; Bisi Deji-Folutile, jury member “33” Export Pen Down For Friendship Competition; Kufre Ekanem, corporate affairs adviser, NB Plc; Anthony Kan Onwordi, head jury, “33” Export Pen Down For Friendship Competition, and Pelu Awofeso, jury member “33” Export Pen Down For Friendship Competition, at the unveiling of “33” Export City of Friends in Lagos. Pic by Pius Okeosisi

FCMB calls for stakeholder collaboration to boost international trade Seyi John Salau

he Managing Director of First City Monument Bank (FCMB), Adam Nuru, has urged banks and other financial institutions in Nigeria to brace up to the challenges of international trade and commerce by collaborating more with other stakeholders in order to tap into the opportunities in the sector. This, according to him, will boost their performance and overall contribution to the development of the country. He stated this while declaring open, the bi-monthly general meeting of the International Chamber of Commerce (ICC) Nigerian Banking Commission in Lagos, which was sponsored by FCMB. ICC is the world’s business organization, a representative body which authoritatively speaks on behalf of enterprises

from all sectors in every part of the world. The body founded in Paris, France in 1919, groups hundreds of thousands of member organisations, including Banks and associations in over 120 countries. Business experts drawn from the ICC membership establish the business stance on broad issues of trade and investment policies as well as on a wide range of policy subjects of interest to organisations worldwide. Nuru, who was represented by, Yemisi Edun, executive director, Finance at the Bank pointed out at the meeting that maintaining a sound culture of compliance, due process and capacity building among experts on the trade desks of Banks, should be accorded priority. “Due process, digitalization and capacity building would go a long way to break the myth of the perception that international trade is a sacred area

of operation alone by Banks. Banks must also collaborate more with government and other stakeholders to explore better ways to maximise the new and emerging opportunities in the sector’’, Nuru stated. He added that, ‘’to ensure the business of international trade and commerce is conducted in a responsible and transparent manner, ICC Nigeria should continue to ensure we operate under full and complete compliance with all applicable laws, rules, regulations, policies, and best practices’’. Raymond Ihyembe, chairman ICC Banking Commission in Nigeria in his presentation advised Banks to upscale their operations with regards to international trade and commerce so as to mainstream businesses in Nigeria into the global community and to promote the creation of wealth and prosperity through international trade and investment.

L-R: John Goldsmith, marketing director, SPAR Nigeria receiving the award of the Outstanding Retail Brand of The Year from Dr Olajide Idris, hon commissioner for health, Lagos State and Emmanuel Isangediok, marketing manager, SPAR Nigeria, at the Marketing Edge Brand and Advertising Excellence Awards that took place in Lagos recently.

L-R: Francis Okon, paediatric consultant, Gbagada General Hospital; Gbolahan Olayomi, CEO, Equipment Hall; Chioma Sunday, ICU Patient Mother, and Olukoya Adesola, Chief Matron, Paediatric Ward, Gbagada General Hospital, during the Equipment Hall’s Charity Visit to Children Ward, Gbagada General Hospital

NBC urge broadcast stations to abide by NBC’s Code of Conduct ahead of Ekiti Elections Oyin Aminu, Abuja

he National Broadcasting Commission has calk on all broadcasting stations who will be reporting the Ekiti State Governorship elections on saturday to do so in conformity with the provisions of the Nigeria Broadcasting Code, especially the provisions relating to coverage of elections.

The Director General of NBC, Modibbo Kawu made the call in a statement issued in Abuja on Tuesday. He said “attention of broadcasters is drawn to the following sections of the Nigeria Broadcasting Code: *Section 5.2.12:* *All partisan political broadcasts, campaigns, jingles, announcements and the use of all forms of partisan political party identifications or symbols on air shall

end not later than twenty-four hours before polling day.* *Section 5.2.14:** A broadcaster shall not use any vote obtained at different polling stations or from exit polls, to project or speculate on the chances of the candidates.* *Section 5.2.15:* *A broadcaster shall broadcast election results or declaration of the winner only as announced by the authorized electoral officer for the election.*

L-R: Panel Discussants, Uwa Etigwe; Funmi Roberts; Tunde Ajibade; Babatunde Fagbohunlu, chairman, Lagos Chamber of Commerce International Arbitration Centre (LACIAC), and Tim Martin, co-chair AIPN Model Dispute Resolution Contract Committee, at a workshop on International Dispute Resolution Co-hosted by the African chapter of the Association of International Petroleum Negotiators (AIPN) and LACIAC in Lagos.

BUSINESS DAY

FINTECH News

Products Review

Technology Review

Personality Review

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Friday 13 July 2018

Company Review

NEWS

Ativo to disrupt fundraising in Nigeria with largest crowdfunding platform

tribes and religious lines but remains cumbersome and limited. “We are set to transform this culture into a digital environment where benevolence reach are extensive and all encompassing,” he said. Individuals, groups and

non-governmental organisations can start a funding campaign on Quickraiz. Adeokun explained that the platform is not open for businesses that need funding at the moment. This is because the regulators in Nigeria have banned crowdfunding for business purposes until regulations are designed around it. He assured that once there is regulation and the go-ahead is giving, Ativo will work together with other stakeholders to provide the service on Quickraize. Registration on Quickraiz requires some level of documentation to enable the company conduct due diligence on people who will be recipient of donations. Once registered, the individual will need to activate a campaign. The campaign is shared on social platform by the originator as well as on platforms already created by Ativo. Adeokun said the platforms have the potential of reaching at least 5 million potential benevolent individuals.

An important part of these platforms is a register of philanthropists compiled by Ativo. These are consistent donors on Quickraiz who gets the benefit of a loyalty card that could be used at any partner merchant. Remi Jibodu, head of sales and marketing said that the coming of Quickraiz was long overdue given the geometrical increase in mobile and internet penetration in Nigeria which stands at 81 percent and 54 percent respectively. “The causes that are considered globally as regulars on crowdfunding platforms are eminent in Nigeria and this proffers an opportunity to rekindle hope, better lifestyle and convenience,” he said. The company has begun partnership talks with the Lagos State government on the possibility of funding disaster victims and provide relief for citizens within the state. Adeokun disclosed that other states will soon be part of the Quickraiz platform.

CipherTrace explains that laundering cryptocurrency can be complicated and is different from traditional money. In the case of digital currencies, criminals the more dirty crypto money that goes into the cryptocurrency system and the more it moves around, the harder it becomes for investigators to see through the web of action and trace a path back to the source. Furthermore, the pseudo-anonymous nature of virtual currencies makes it exponentially more difficult to trace these funds as compared to cash.

“As one caveat, criminals will lose a percentage off the top to move the funds, but in the end the funds appear legitimate, making the loss worthwhile,” the report stated. The next step towards full legitimacy is to integrate the stolen money into the market. According to the report, after placing the funds in the cryptocurrency system the criminals still face risks. The risks come from exchanges which are mandated to monitor activity and may issue Suspicious Activity Reports (SARs), which flag high-risk

transactions. “Cybercriminals follow easy money,” Ilia Kolochenko, High-Tech Bridge noted. “And many cryptocurrency owners are the perfect victims. They are virtually unable to protect either themselves or their digital assets, being susceptible even to relatively simple phishing attacks. Law enforcement is frequently uninterested in investigating and prosecuting petty offences with digital coins theft, as they are already under water with highly sophisticated nationwide hacks.”

Stories by FRANK ELEANYA

tivo, a subsidiary of Electronic Payment Plus (Epayplus) Limited, is set to unveil the largest crowdfunding platform in Nigeria on Friday, 13 July, 2018. The platform known as Quickraiz will connect Nigerians in need of funding for genuine causes to benevolent individuals ready to help them. At a press demo on Tuesday, 10 July, the company described Quickraiz as a digital solution to the traditional Esusu system. Esusu or contribution club is a local rotating savings and credit association that is widely practiced in West Africa. Although it encourages putting aside money today to benefit from a lump sum payment in the future, the processes are often very complicated as its success depends on the trust of the individuals. It is also limited

L-R: Olarenwaju O.Babalola, head,quality control; Bayo Adeokun, MD/CEO; Oluremi Jibodu, head, sales and marketing for Ativo limited, and Joy Micheal, head of sales and marketing for Epayplus.

to an individual’s immediate sphere of contact. Quickraiz plans to be the platform where Nigerians with real money needs like raising fund for ideas or projects, wedding, child dedication, birthday party, medical treatment, education to mention

a few, can commence a campaign that could be funded by people beyond their sphere of contact. Bayo Adeokun, managing director and CEO of Ativo, told BusinessDay that the communal culture in Africa and Nigeria in particular cut across

TECHNOLOGY REVIEW

Stolen cryptocurrencies triple in H1, 2018

he amount of cryptocurrencies that were stolen in the first half of 2018 is three times bigger than all of 2017, said CipherTrace’s new report last week. This is just as authorities across the world continue to pile pressure for cryptocurrency regulation. Cyber criminals wiped off $761 million in the first half from digital currency exchanges, compared with nearly $266 million for the whole of 2017. CipherTrace estimates that the losses could reach $1.5 billion by the end

of 2018. The criminals have also stolen $1.2 billion in cryptocurrency in the last two years according to the CipherTrace Cryptocurrency Anti-Money Laundering Report for Q2, 2018. “The phenomenal growth in the value of cryptocurrencies like Bitcoin over recent years has attracted investors, speculators, and thieves,” the authors of the report noted. “The first half of 2018 experienced a three-fold increase over the entire year of 2017. In addition, the FBI has reported

an almost six-fold increase in the value of virtual currency in complaints from 2015 to 2017.” Other security agencies that are taking a hard look at cryptocurrency privacy include the Financial Crimes Enforcement Network (FinCEN) and the US Secret Service. On Monday, 9 July, 2018, Chinese local news said China’s Da Lian City arrested 20 suspects from a computer technology firm who allegedly gained control of a large number of computers in order to profit from illicit cryptocurrency mining.

Friday 13 July 2018

BUSINESS DAY

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How Nigeria can tackle the scourge of depression P

Paelon memorial clinic wins NHEA SafeCare quality award

ANTHONIA OBOKOH

ccording to World Health Organisation (WHO), depression causes mental anguish and impacts people’s ability to carry out even the simplest everyday tasks, with sometimes devastating consequences for relationships with family and friends and the ability to earn a living. Reported cases of suicides across the country due to challenges of economic and mental health have been on the rise in the country. “Depression affects a lot of people cutting across the continents, religion, culture, all classes of people. So the notion that is the leading cause of disability and of one is commonest form of disorders is true,” says Richard Adebayo, consultant psychiatric and clinical psychologist at Federal neuropsychiatric hospital Yaba, Lagos. “Depression will affect not less than 20 per cent of any population in their life time, so that is life time prevalence can affect figures higher than 20-25 per cent have been quoted of the population that will suffer depression at one stage or the other in their life,” Adebayo says. A WHO report stated that depression can be treated

and the first step is talking to people that can be of help. The condition is treatable with talking therapies or antidepressant medication or a combination of these, the report says. “There is a lot that you can do to keep mentally strong. If you feel that you may be heading for depression, talk to someone you trust or seek professional help. “If you live with someone with depression, you can help them recover but you need to take care of yourself to,” the report added. However, the mental health practitioner further

asserted that until Nigeria is able to enact the mental health bill, the country might not be able to properly tackle the depression scourge. They stated that passing the bill into a law will guaranty the rights of patients with mental disorder, especially patients with severe depression and psychosis who are no longer in contact with reality to be protected. O w o e ye O l u gbenga a consultant psychologist and clinical psychologist at Federal NeuroPsychiatric Hospital Yaba, Lagos, said the criminalisation of suicide was predicated on the Lunacy Law made by colonial leaders. “Our lawmakers should review the Mental Health Law in line with what obtains in other countries, especially developed nations. The bill is already with the Senate. They should make provision for the treatment of those who attempt suicide rather than get them arrested. “As the law is being repealed, the government should also fund the psychiatry hospitals. There are fewer than 500 psychiatrists

aelon memorial clinic, a multi-specialty hospital has won the SafeCare facility of the year award in Nigeria. This award is one of the categories in nationwide to take care of the 5th Nigerian Healthcare 180 million people. We even Excellence Award (NHEA have fewer clinical psycholo- 2018) that focuses on Safgists and psychiatrist nurses. eCare quality standards for These are not enough to take healthcare facilities. Paelon memorial clincare of the psychiatry need of the nation,”Olugbenga says. ic was established in May WHO noted that increased 2010. It has grown from an investment is needed in many outpatient clinic to multicountries saying there is cur- specialty, patient centred rently no or very little support hospital with two locations currently available for people in Lagos. In October 2016, with mental health disorders. it became the first hospital The world health organi- in Africa to be awarded the zation also noted that even level 5 certification by Safin high-income countries, eCare. Speaking on the award, nearly 50 per cent of people with depression do not get Unoma Grant, chief operattreatment with average in- ing officer Paelon expressed vestment of 3 per cent on the delight of the managemental health which var- ment and staff of the hospital ies from less than 1per cent and promised that standards in low-income countries to will not only be maintained 5 per cent in high-income but improved upon. “We will continue to incountries. Signs and symptoms of troduce new programmes depression can include loss and services to make paof interest or pleasure in usual tients’ experience and treatactivities, withdrawing from ment meet international close family and friends, rely- standards at affordable cost,” ing on alcohol and sedatives said Grant. In furtherance of this, and unable to concentrate. Others are feeling tired all Paelon recently established the time, headache and mus- a fertility clinic as a joint cle pains, sleep problems, loss venture with Lily Hospital. “We introduced SafeCare or change of appetite and significant weight loss or gain. facility of the year award in These signs may defer this 5th edition to emphasise from individual to individual the importance of quality hence the need to seek pro- certification and standardifessional help is highly rec- sation in Nigeria healthcare facilities. NHEA partnership ommended by experts. with safecare is to ensure

that our assessment follows internationally acceptable standards.” says Wale Alabi, NHEA project director. The SafeCare standards are designed specifically to target health facilities in lowand middle-income countries. These facilities operate in challenging environments that are often defined by staffing shortages, resourcerestrictions, and inadequate infrastructure. A wide range of facilities can be assessed using the standards, including public, private, and not-for-profit facilities ranging from health shops, to basic and primary health centers, as well as district hospitals. Ibironke Dada, program director SafeCare, PharmAccess foundation commended Paelon’s management and staff for their strong commitment towards improving healthcare quality and patient safety. “Although, the Nigeria office is delighted to record the first SafeCare Level 5 health facility in Africa; this is just one facility in a country with over 30,000 health facilities. We are cognisant of this huge gap and will continue to work with government, regulators and health facilities to design quality improvement interventions as well as measure and benchmark the quality of health care,” stated Dada. NHEA is organised by Global Health Project and Resources in collaboration with Anadach Group, USA.

Kasi center hosts memorial healthcare group KEMI AJUMOBI

asi International, has continued its drive to open up the world to Nigerians seeking quality care by opening fresh talks with Memorial Hospital Group for a partnership which would facilitate easy movement of Nigerians seeking medical care in Turkey. This was made known by the Director of Kasi Healthcare Dayo Osholowu, who hosted the International Patient Manager of Memorial Healthcare Group, Musa Umar, and the Country Director (Nigeria) of the Turkish Healthcare Council, Adedayo Sobamowo, at the Kasi Center for Telehealth. “The visit of an executive from one of the leading private hospitals in not just Turkey, but the world over, Memorial Healthcare Group to us at the Kasi Center For Telehealth, Lagos International Airport, is exciting”, he said. “The Memorial Healthcare Group has an international reputation for its departments such as Transplantation, Cardiovascular surgery and Orthopedic Surgery. Its pioneering practices in the health sector earned it the

L-R Country Director (Nigeria) of the Turkish Healthcare Council, Adedayo Sobamowo, International Patient Manager of Memorial Healthcare Group, Musa Umar, and Spokesperson of Kasi Healthcare, Peter Adeshina, at the Kasi Center for Telehealth Lagos Airport]

JCI accreditation quality certificate by the Joint Commission International, as the first hospital in Turkey and 21st in the world to be awarded.” “Through this visit, we were able to show-case our Center for Telehealth, which is strategically located 15 minutes away from the Lagos International Airport and equipped with the latest technology required for tele-health, including tele consultations. We were also able to demonstrate our experience and capability to facilitate movement of Nigerians seeking care in choice

destinations across the globe with ease”. On a partnership possibility, the spokesperson of Kasi Healthcare, Peter Adeshina, explained that such collaboration will contribute to Kasi International’s large network of hospitals across the globe and provide Nigerian buyers of international healthcare services with experienced professionals from the Memorial Hospital Group across varying specialized expertise. “In addition to facilitating medical travel visas, a partnership would mean that our clients can access doctors

and specialists of Memorial Healthcare Group from the comfort of Kasi Center for Telehealth, Lagos Airport for consultations and second opinion.” On his part, the International Patient Manager of Memorial Healthcare Group, Musa Umar, reemphasized the leadership of the healthcare group in Turkey and expressed their interest in Nigeria, as well as the partnership discussions to join the Kasi International hospital network. “The level of technology and organisation available at the Kasi Center for Telehealth, Lagos Airport, as well as the warm and professional nature of its staff is commendable. Their objective of using technology to provide utmost patient satisfaction and care aligns with that of Memorial Healthcare Group, Turkey, and we look forward to a positive partnership”, he said. It should be recalled that Kasi International recently earned a gold member certification from the Medical Tourism Association as a result of the ground-breaking decisions and efforts made by the forward-thinking management team of Kasi Healthcare.

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Friday 13 July 2018

NGO advocates separate budget-line for family planning, safe motherhood

NAFDAC seeks increased compliance with breast milk substitute marketing code

SIKIRAT SHEHU, Ilorin

he National Agency for Food and Drug Administration and Control (NAFDAC) has called on manufacturers of Breastmilk Substitutes (BMS) to comply with the International Code of Marketing of Breastmilk Substitutes, and national regulations by manufacturers of BMS products to protect infant nutrition. The World Health Assembly (WHA), the decision-making body of the World Health Organisation (WHO) adopted the International Code of Marketing of Breast Milk Substitutes in 1981 as a global health public strategy to protect breastfeeding from aggressive promotional campaigns by milk formula manufacturers. According to Mojishola Adeyeye, director general of NAFDAC, for better compliance, it is essential to note that “Nigeria voted for Code adoption and was, therefore, expected to implement all its provisions in their entirety as a minimum requirement for its implementation through appropriate national measures including legislation. National legislation to implement the Code may, therefore, be stronger but, certainly, not weaker than its provisions. Speaking at a one day sensitisation workshop on “Compliance with the Code of Marketing of Breast Milk Substitutes” organised by NAFDAC in collaboration with Alive &Thrive/ fhi360 funded by Bill and Melinda Gates Foundation, Adeyeye said the knowledge and lack of awareness of stakeholders including the media, has also contributed to the gravity of violations currently being practiced in Nigeria. “This has necessitated the need for the regulatory agency in collaboration with relevant partners to aggressively address this unpleasant situation through interventions including effective sensitization of all stakeholders,” she said. Adeyeye noted that the importance of appropriate infant and young child feeding and resultant effect on national economic development cannot be

wareness Initiative for Good living (AIGL), a non-governmental agency has advocated for separate budget line for family planning to improve child health care and drastically reduce maternal mortality. The Kwara-based NGO, established six years, was charged with the responsibility of family planning advocacy where membership were drawn from public and private sectors, health personnel, faith- based group, journalists, community leaders and social groups. “Our advocacy to the government functionaries is basically on the need to create separate budget-line, approve and release same for Family Planning. “The essence of separate budget -line is for family to be given a priority among other primary healthcare services, as the fund is meant to purchase consumables that are not provided along with family planning commodities to enable our women and adolescents access family planning services free of charge,” said Abdulwahab Ajibola, the Chairman AIGL. The vision of AIGL was to ensure improved investment on family planning for readily available of products and services, partner with good society and donor organisations to support and

L- R 4th left, Sadiat Asaju; state Cordinator of family planning, Balqees Oladimeji; AIGL, Secretary, Tina Olaoye; Director of programmes, Radio Kwara, Abdulwahab Ajibola; Chairman AIGL, Abdullahi Olesin; Regional Editor of Leadership newspaper and other media representatives.

strengthen reproductive health programmes. According to Ajibola, in his address at the 2nd Media Executive Meeting, lamented that “in 2015, the state released a sum of N2.1m as separate budgetline for family planning and was geared up to N4m in 2017, while a sum of N5m was budgeted for family planning in 2017, none of these budget-lines neither got approval nor releases. He disclosed that, the National Hospital Discharge Survey (NHDS) put maternal mortality ratio to 6:100 in 1hour. Meaning, an average of 168 women die daily to complicated pregnancy, he urged that, “we are committed to keep working despite the little stipend provided. “We plead with govern-

ment at all levels to assist us with fund as we planned to improve on the advocacy to reduce death of women and adolescents from child delivery complications that are resulting from either frequent child birth, too young or too old in age.” Bilqees Oladimeji, the Secretary, AIGL, in her submission, stressed the need for traditional rulers’ support for family planning, the religious leaders propagating family planning and technocrats contributing to the development of healthcare programmes. “ The Reproductive Health Initiative (NURHI), contributed immensely to the development of healthcare services in the state and since they left, efforts are on top gear to make sure that they come to Kwara.

“We are committed to ensure “safe motherhood”. The facilities at Olanrewaju, Temitope, Kosemani hospitals and others are still not enough; we need to improve their capacity to avoid death during child birth. We therefore call on government and other relevant agencies to support us financially.” Oladimeji, who warned that women should not just go to quarks for family planning, advised them to go to the hospital and get proper counsel from medical experts, just as she enjoined husbands to support their wives in family planning. “Family planning is a way of life”, it is beneficial to the father, mother and the child, added Sadiat Asaju, Kwara State Co-ordinator for family planning.

Niger state to establish contributory health insurance scheme MICHEAL ANI

he Niger State Government says it would establish Contributory Social Health Insurance Scheme to provide affordable and quality healthcare services for people in the state. The state Commissioner for Health, Mustapha Jibril, said the proposed Bill would be targeted at both the public and private sectors for the achievement of universal health coverage for people in the state. “A memo to establish Niger State Contributory Social Health Insurance Scheme has been approved by the State Executive Council to ensure affordable and quality healthcare for the people,’’ he said. Jibril said the move to present the health bill before the State House of Assembly

HBL TEAM

ANTHONIA OBOKOH

became necessary as affordable and quality healthcare was the right of the people. “The government came up with the scheme because many people find it difficult to pay for quality healthcare services. Through the scheme our people can afford to pay their hospital bills,’’ he said. He said under the scheme, civil servants and public officers including political appointees in the state would contribute 2.5 per cent, while the state government would match it with another 2.5 per cent to accommodate the formal sector. The commissioner said that government would also contribute one per cent of its annual consolidated revenue fund to the scheme to cater for the less privileged. Besides, he said the bill would cover pregnant women, children under five

years, people with disability, surgery, routine immunisation and family planning services, among others. Jibril said that the document, which would soon be forwarded to the legislature, has stakeholder’s involvement like the state government, Nigeria Labour Congress and Nigeria Union of Teachers. A document exclusively made available to BusinessDay, indicated that 15 states are in the process of implementing their legislation on compulsory health insurance. They include; Lagos, Cross Rivers, Kwara, Delta, Oyo, Abia, Anambra, Bauchi, Ebonyi, Kano, Ogun, Sokoto, and Kaduna. In two places; Bayelsa, and Abuja, FCT, they are currently implementing Health Schemes; however legislation to transition to SSHIA is in progress. Other states with “on-

going plans” to make health insurance compulsory are Adamawa, Akwa Ibom, Ekiti, and Enugu. Those with “Legislation in Progress” are; Benue, Borno, Edo, Gombe, Imo, Jigawa, Katsina, Kebbi, Kogi, Nassarawa, Ondo, Osun, Plateau, Rivers, Taraba, Yobe, and Zamfara. In the case of Lagos, whose plans appear to have been widely circulated, experts described “as quite commendable, and a step in the right direction. However, a lot of work still needs to be done. “The scope of coverage and the capitation costs must be looked at very closely if the objective must be realized,” he said. Many experts also emphasised the need for a truly competitive health insurance sector, in order for the public to get the best services.

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

overemphasized. “However, there are various challenges hampering its actualization. Based on analysis of the cost of not breastfeeding by Alive and Thrive with the support of the United Nations Children’s Fund (UNICEF), improving breastfeeding can help Nigeria reach its full human and economic potentials by preventing 10 million cases of childhood diarrhoea and pneumonia, saving 103, 742 children’s live each year and reducing the cost to the health care system by $22 million a year, it says. Also speaking at the workshop Patricia Monwuba, a retired deputy director of NAFDAC, said despite the numerous benefits, millions of babies are being denied of their mother’s milk. “Breastfeeding provides social and economic benefits to the family and the nation, contributes to women’s health by reducing the risk of breast and ovarian cancers, and it also helps to increase the spacing between pregnancies,” “Breast milk substitute pose the risk of not having breast milk’s protective qualities through the high risk of contamination that can lead to life-threatening infections in young infants,” added Thompson Kobata, representing Chris Isokpunwu, the Head of Nutrition, Federal ministry of Health. Abdulsalam Ozigis, deputy director, Food System and Applied Nutrition, NAFDAC, however urged that government and policy makers should create an enabling environment for Code monitors to carry out their work without fear or favour and also put in place punitive measures to ensure enforcement compliance and make sure that they are enforced. He advised that health workers have an essential role to play in protecting, promoting and supporting optimal infant feeding practices. Noting that they should not allow themselves to be used as agents for industry “ensure that financial support and other incentives for programmes and health professionals working in Infant and Young Child health do not create conflicts of interest.”

Friday 13 July 2018

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BUSINESS DAY

Tayo Elesin, a fast rising actress in the diaspora OBINNA EMELIKE

he may not be a household name in Nollywood but she is gradually making a name for herself as an actress in the United Kingdom. Tayo Elesin works in London as an actress, a place she has never stopped calling home. Although she is a Briton of Nigerian descent, Elesin has lived in England all her life. She studied Law at the University of Cambridge but before she went to university, she did musical theatre at Greenwich Musical Theatre Academy, which is under the accreditation of Trinity College of Music, the school that produced great musicians like Fela Anikulapo-Kuti. “I did Musical Theatre which involves singing, dancing and acting but I look forward to acting more than others”, she says. She does not work all the time as an actress. “The kind of our films do not happen every two, three weeks or one month even. I was doing all of that, I was about 14 but also going to school at the same time. As I said, in England you don’t work all the time. You work as and when the productions happen”, she explains. Elesin has been able to transit from being a Law student to taking up acting as a career and has decided not to work as a full time lawyer but practice a profession she loves as a child. “I enjoy acting. I come from a family where it is like you want to do drama, do it. But I wanted to be intellectually stimulated and the law did that for me. Now that does not mean I am going to be in court when I am 40 years old; that does not mean I am in court now but I am very glad I did it. I think it informs the way I story-tell when I do my acting. Acting should be about story telling.”

Tayo Elesin playing Sikira in the movie; Our Husband has gone Mad Again

The actress refers London as home because that is where she was born and her agent is based there. “I refer to London as home when I want to make a point about my agent being in London because that is where I live. Nigeria is home. I am black, I am African. Both my parents are from Nigeria and I always say this is home no matter what anybody says about it. When I come here this is my land irrespective of any problem anybody wants to shine to it, this is home.” She agrees that Nigeria is a country of over 180 million people that is full of talents. “When you go back to London, if you look at the Black people in the world of entertainment, politics, in anything that are high level and black, if you look at their ancestry, they are half Nigerian or fully Nigerian. Born in Nigeria, came here when they

were young among others. For me what are we talking about, Nigeria is where it is. The talent is here. This is it. It might need a bit of structure here and there but it is here.” Elesin does not only feature in films, she has also done stage plays. She featured in the T V series, Law and Order, Casualty, Doctor, and a lot of BBC productions in London. “I have done stage as well. In fact, I just finished doing a run of ‘Our Husband has gone Mad Again’ I played Sikira. Do you know my favourite area in Lagos? Mushin. I love that place. I don’t like all this Lekki and Victoria Island stuff; I think they are so pretentious. When I come to England, I live in isolation in London, I don’t want to replicate that when I come on holiday. I want to feel real. Mushin, I feel is fantastic. You can walk 100 metres and meet

all kinds of people so that’s my favourite area in Nigeria.” Elesin is familiar with Ola Rotimi’s plays but not those of Femi Osofisan. This she considers shameful because her university teachers in the United Kingdom never taught them the works of Osofisan. “It is for this reason she considers it important to stay in touch with her root. The only writer we were taught in creative literature class back in England was Wole Soyinka and it is because he’s a Nobel Laureate. And even so, we were taught maybe one or two of his poetry, no prose work per se. And I am a bit disgusted by that because there is a population of black people in England from African origin and I didn’t learn about my story. Yet I learnt about Shakespeare and Chaucer, it is fine, it is well and dandy. You know what annoys me? The education system

here teaches people about Shakespeare and Chaucer and all these things but back home I didn’t know who Ola Rotimi was and that’s disgraceful. Now, I’m getting to read all the literature. There is so much rich material here and I want to track them down.” In spite all, Elesin plans to come to Nigeria more frequently to take part in some local production. Even though she is not pleased with the current structure on ground, she hopes to contribute her own quota to make a difference in the Nigerian film industry. “I think there is need for a structure, let’s be honest. You will not be the best of yourself if there is no structure. There is talent but structure is needed. It is needed number one for ease and legality; it makes everybody’s life easier”, she concludes.

Richard Quest explores our ‘World of Wonder’ in new CNN series

ichard Quest is the host of a new immersive travel series on CNN International which launches July 14. The show, Quest’s World of Wonder, will each month take Quest to a different destination to dig deep into its DNA, exploring what drives a city and the people who live in it. Viewers will meet larger-than-life characters who explain how the city’s past has created a unique fabric that is still evolving today. But this isn’t a show about tourism, food or culture – it’s about finding the essence of a place. “Quest’s World of Wonder can be summed up in one sentence: We’re going to interesting places to meet fascinating people,” says

Richard Quest

Richard Quest, host of the new series. “We’re not tourists, we’re travelers. It’s a show about meeting the people who reveal the heart of the city and help you understand what makes the place tick, leading you to that ‘wow’ moment when you realize you belong,” he says. The first episode takes viewers into the heart of a city the world is watching closely: Washington, D.C. From the major political upheavals past and present, Quest explores Washington’s power – the good and the bad – with the help of those who have pulled its levers. “People are fascinated by the spirit of a city – something built up over millennia, centuries or

decades that defines what the place stands for and offers its residents and visitors,” says Ellana Lee, senior vice president, CNN International. “No one is better at finding and telling those stories than Richard Quest – a true internationalist with vast experience in travelling the world and reporting on it. Through this new show, CNN viewers will experience a world of wonder that will inform and inspire in equal measure,” Lee says. Quest’s World of Wonder will also explore Berlin, Budapest, Panama City and more fascinating cities this season. The halfhour show will be complemented by a wealth of content online at a dedicated site within CNN Travel as well as on social media.

BUSINESS DAY

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Friday 13 July 2018

Business Etiquette

Movie Review - ADRIFT (2018)

f you enjoyed the movie “Me before you” then you would absolutely adore this new movie called “Adrift” Apparently we have had several Adrift movies since 1993, which I never took note of, I was so fortunate to catch this before it went off the cinemas, and you would need to also. Amazing storyline one that brings tears to your eyes and keep you wishing and praying that it never went the way it did, making you forget it was just a movie, although it was based on a true life story the cast in this movie made it look so real, and it also reminded me of “Titanic” I am sure everyone remembers that movie. A very slow and serene movie, but was genuine, real, touching and with loads of lessons to take away. A romantic movie, they had just a few cast, and amazing words of wisdom. Here are a few lessons I walked away with, Firstly When you find love enjoy every moment of it and do not allow anything hold you back, Secondly make sure you have fun at work and enjoy what you do, and thirdly when you come across the storms of life, trying so hard to weigh you down, don’t give up, be determined and strong to overcome no matter, what it takes make sure you survive to tell the stories, so that others can learn also. The movie was written by Aaron Kandell, Jordan Kandell, David Branson Smith and directed by Baltasar Kormakur, I must say that despite the fact that the movie was based on a true life story, they did have a clear picture of what they wanted to pass across and the impact it would have on the viewers. They sure did have a well written script, perfect blending cast for each role and who played their parts well and made it so real and convincing. It’s always nice to watch movies with amazing storyline that keeps you wondering and thinking even days after, making you so excited that you can’t wait to write the review and tell everyone around you to go watch it. Although as usual I was so sad and disappointed at the end, but the honest truth is that this particular ending always repeats it’s self in every drama, romantic movie, my prayers and thoughts just couldn’t make this movie any different. “Adrift” started on a very slow and exciting way, telling us of two sailors who were absolutely passionate about sailing bumping into each other and instantly, it was love at first sight. They were two abstract people the guy who was called “Richard Sharp” in the movie was also coincidentally the same guy from “Me before you” and

with Janet Adetu

A Passion for Sports Business

Cast: Shailene Woodley, Elizabeth Hawthorne, Tami Ashcraft, Sam Clafin, Grace Palmer, Kael Damlamian, Jeffery Thomas, & Luna Campell Genre: Drama & Romance Director: Baltasar Kormakur Ratings: PG 13 (for injury images, peril, languages, brief drug use, partial nudity and thematic elements) Written by: Aaron Kandell and Jordan Kandell Runtime: 120 mins Studio: STXfilms “Hunger games” I sincerely think, he did a very good job again in this movie and he nailed it. He was very shy and reserved unlike “Tami Oldham” as she was called in the movie, who was extremely outspoken and adventurous, she was always so happy and excited and wasn’t scared to try new stuffs. She wanted to sail around the world and see what it unfolds, she wasn’t willing to just leave a quiet simple life in the suburban’s, she wanted much more and Richard was willing to also join her on that crazy adventure. So Tami meets Richard falls in love with him and the agree to go on a very long sail from Tahiti to San Diego, they had no clue that they would be sailing right into one of the most dangerous hurricanes in history. They both fought hard through the storm, but their fight and small boat, could absolutely not withstand the huge impact of this hurricane and so Richard was thrown out to the sea and Tami made it under to safety, just right before it went so bad, so she was injured but not as bad as Richard, who was in the sea for days. Tami bumped her head, also work up days after, to a bad memory and terrible hallucination, which is one terrible illness that comes with sailing. Tami works on the boat then finds Richard in a terrible condition and has to find a way of making sure that

they both survive, they went adrift for 41days and at this time, they could only pray for anyone to locate them as they had ran out of food, water and clothing’s. It was funny how Tami a veteran had to switch to killing and eating fish, something she would never have though in her life she would do, but she faced death head on and knew that was the only thing left to keep her going, Tami eat raw fishes and survived a few more days, till help came from nowhere. She was strong and courageous; she knew she had to leave to tell this beautiful story and experience of how she found the only man that ever loved her. Adrift deserves a beautiful 8/10 why because I enjoyed every bit of the story. The movie looked so real and touching, at some point I had to fight so hard from shedding tears. It’s always so nice to watch movies with fantastic storyline and this absolutely one of them. This is a sure recommendation from me to all the romantic movie lovers; you sure will enjoy this one. Feel free to review any movie of your choice in not more than 200 words, please send us a mail to linda@ businessdayonline.com and stand a chance to win a free movie ticket Linda Ochugbua @lindaochugbua

o n e a re t h e days when careers were fixed on pure office settings. Talent day spreads across anything and everything, your skills, creativity, sense of style and fashion bring out the true you. In the spirit of the world cup we see that the game of football has rapidly become a very lucrative business. It is not limited to Football alone, it cuts across all sports to name a few like Football, Boxing, Basketball, Long Tennis, Volley Ball, Polo, Swimming, Athletics and more list goes on. To be an efficient and effective a sport coach you must take the business seriously as such the real PASSION for the game must take precedence. Major characteristic traits also required include versatility, creativity, energy most of all professionalism. Becoming a sports coach, commentator, presenter or reporter is a recognized profession, that does not start or stop simply because you were once a great player. It will entail a combination of experience, extra training and certification. You must be a guru understanding the rules and governing regulations of the game. Sport business is not what you just wake up and venture into, it involves years of learning, planning, and involvement. When you are into sports you will literally sleep, drink, eat and think sports all day long. A few Etiquette Strategies are below for Managing your Passion for Sports Business to help you shape a career path out of your passion. Managing Your Sports Business Choosing Your Lane The passion for sports can mean many things to you if you consider yourself a sportsman. If your choice is to make it a business you cannot have multiple sports goals, it is safe to go along with the one you desire the most. The one that gives you great joy and happiness. As a coach you will be guiding others, as a commentator you will be analyzing results and live performances, as a radio or TV presenter you will be delivering accurate news. Which area is most comfortable to you will be your choice as your new found career. Choose wisely. Passion First Profits Later I guess everyone in the sports

industry has the love for the game and hopefull the huge passion go along with it. It will take a lot of diligence and determination to convince yourself that you can make a winning team. You will need that driving force to bring on the game. If you are able to exert enough passion from the players the will to succeed will arise and team spirit will set in. Experience, Energy, Efficiency As a coach your experience will set the right tone for various scenarios. Your team will be watching your every move for inspiration, energy and success. Your experience will show you how to deal with awkward, challenging and difficult decision making periods. When you are physically and psychologically down you

will need to step up game to avoid creating the impression defeat. However losing is part of the game it should be embraced as good sportsmanship. Someone has to lose while the other has an opportunity to win. Mix Mingle Network As a good Sportsman in the business of sports you will need to constantly build your relationships with players and captains in the industry. A good sense of networking will help you familiarize yourself with the correct protocol required to be successful in your chosen sport. Train and Retrain No doubt you will have gone through numerous trainings as a sportsman however to manage people is an entirely professional skill that must be learnt. As a coach you will need to be conversant of various characteristic behaviors coming from the team. You will need a bit of skilled knowledge in the area og marketing, branding and possibly finance. Adminis-

trative skills are not ruled out too be abreast of the various departments and skill sets needed. The most important thing is be open to learning new things all the time. Goal Setting Taking up the role of a coach or management in sports is no easy task. The goal always is to win the game at all costs. However it is not just the winning that is considered it also entails maintaining a good reputation, keeping the fans happy, reducing costs as well as making the venture a profitable one. A lot of stakeholders are involved not to mention die-hard fans who are ready to criticize your every move. Your goals should be clear, concise, consistent and transparent to all. Be careful to segregate your immediate from your longtime goals. Your goals should spillover to individual goals for each member of the team. Communicating with Clarity Do you communicate with clarity or do you find yourself repeating most often. To be a Sports Manger means getting your vision and message across in the most understandable manner. You will also need to subject yourself to constructive criticism to allow you identify your woown weaknesses, flaws and strengths too. Do your team understand what is at stake, and why they are there? Your role is to keep everyone on the same page, resolve undue conflicts, and manage the mentality and psych of the team. You also need to communicate team spirit, confidence, determination and diligence. That is the formula for a great team whiter they are one or twenty on the team. Constant Committed Calm The passion for sports already indicates some level of commitment, it also has the potential to raise your stress levels, if not managed well. Fine tune your health to enjoy the game come what may. Your advice, guidance, direction, support and encouragement is what the entire management team look upo. Sports is a business, a franchise, a job that is time consuming but rewarding too. Try to leave a legacy behind to be well remembered. Goodluck Janet.adetu@gmail.com

BUSINESS DAY

Friday 12 July 2018

CityFile Farmers, herdsmen agree to peaceful co-existence in S/West REMI FEYISIPO, Ibadan

…to jointly fish out criminals

armers under the auspices of South West Fa r m e r s A s sociation of Nigeria and the Miyetti Allah Cattle Breeders Association of Nigeria (MACBAN) have reached an agreement to maintain peace and co-exist in the southwest region. Members of the two parties met Tuesday in Ibadan, the Oyo State capital, where they acknowledged the contributions of each group to the regional and national economy and the need to refrain from ruining each

other. Segun Dasaolu, chairman of the farmers association, highlighted the importance of the meeting, saying it was to streamline the relationship between herdsmen and farmers in the zone. Dasaolu explained that the meeting was also called to strategise on how to create a databank of all the herdsmen and farmers to ensure easy identification. ‘‘The friendliest zone for herdsmen is the southwest ; that is why we and herdsmen hardly have any crisis.

F Living below poverty line

Barber battles kidney disease Name: Onigbinde Adetunji Oluwaseun State of Origin: Oyo Age: 31 years Dependents: Siblings Occupation: Barber was managing the little resources I got from my barbing business until I was diagnosed with kidney disease on May 2, 2018. I was initially rushed to a nearby hospital at Oke Ado Ibadan on May 1, 2018 from where I was referred to Molly Specialist Hospital at Idi Ape, Ibadan the next day, where I was diagnosed of this sickness. Prior to this, I had been admitted severally in different hospitals because I often collapsed and blackout. On every hospital admission, I was given drugs and drips. Sometimes, I received blood transfusion. During these times, my family especially my elder sister would run around to raise money for my treatment. Sadly, none of those hospitals diagnosed anything. All they said was that I had high blood pressure and shortage of blood. The doctor said I need kidney transplant but I am presently undergoing dialysis pending the time money would be raised for the transplant. I have been undergoing

dialysis 1-2 times every week together with blood transfusion. I’m also on drugs prescribed by the Neurologist How have you been coping with the sickness? We struggle to raise between N70,000 and N82,000 weekly for my dialysis and blood transfusion. We have spent all we had and now borrow from anyone who is kind enough to lend us some money. My elder sister had to sell the taxi which brought in little money for the family upkeep to fund my treatment. I can no longer work at my barbing shop because of my condition and we have even sold almost everything in the shop. My father is late and my relatives and friends have done all they could to help me. Challenge: I constantly experience severe pain. My legs, face and stomach are swollen. I have discomfort breathing, and can’t urinate and defecate normally. Sleeping at nights is also a problem. I appeal to wellmeaning and kind-spirited Nigerians to help me pay for my treatment. If you want to contact the writer of this stor y call: +234(0)8038891567 or email:- chinwe.agbeze@ businessdayonline.com

Bandits attack villages in Sokoto GODFREY OFURUM

ome bandits have attacked villages around Gandi in Rabah local government area of Sokoto State, killing an unspecified number of people. Houses in some villages in the area were also set ablaze by the attackers and residents displaced. Cordelia Nwewe, the police public relations officer

Sokoto, said that the Commissioner of Police, Muritala Mani, and the medical personnel from the state have assessed the situation and ascertain how many people were affected. It would be recaledl that the police had also on June 12, 2018 confirmed that eight died in a clash that ensued between bandits and local vigilance members in Isa local government area of the state.

“‘We have agreed today that there must be clear identity of every herdsmen in the South West through data capturing,’’ he said. On his part, Mahammadu Kirowo, the national president of MACBAN, promised on behalf of his group to respect the terms of the agreement. ‘‘The association’s database will be created by the headquarters in Abuja; any other one is counterfeit. ‘‘We are peace makers in the southwest, our herdsmen are proud of living in peace. We don’t

support any criminal act, violence or any form of evil; let us fish out the criminals in our society. “We are peace makers in our association and not perpetrators of crisis,’’ he said. Gbolagade Babalola and traditional head of Iddo town in Oyo State, who also spoke at the meeting, suggested the need for local government chairmen and traditional rulers to hold frequent meetings with the herdsmen. He also stressed the need for herdsmen to have identification cards.

Participants during Road Work at the 2018 EFCC Anti-Corruption Campaign Day in Abuja on Wednesday (11/7/18). 03693/11/7/2018/Jimah Suleman/NAN

Imo youths partner ASEPA to cleanup Aba GODFREY OFURUM

mo youths resident in Abia and operating under the auspices of Imo Youths Association, has appealed to residents of Aba, to support the efforts of the Abia State government to regenerate the commercial city, by keeping their environments clean. They also urged the residents to dump their wastes at designated receptacles, to enable the Abia State Environmental Protection Agency (ASEPA) properly collect them for disposal. Ihuoma Jude-Panza, who recently led about 500 Imo youths on a cleanup and enlightenment exercise within Aba, decried the attitude of some residents that dump their wastes into water channels, which according to him, is the cause of flooding in the city. He urged other youths in the area to emulate the group, by sensitising people on

the need to live in clean environments. According to Ihuoma said, “We embarked on this exercise to appreciate the efforts of Governor Okezie Ikpeazu in regenerating Aba. “We are a non-governmental and non-political organization, but we support good governance. We are not happy the way people liter the roads that the governor is building for our use. “It is also a way to show that Imo youths are not lazy. You can remember that one Nigerian leader said that Nigerian youths are lazy, so we want to tell him that Imo youths are not lazy. He continued, “Governor Ikpeazu was the first deputy general manager of ASEPA, Aba and environs and it was because of his performance that God elevated him to the office of a governor. So, we took cognizance of that and decided to support him, through ASEPA, which is his primary constituency”.

Ogun signs MoU to distribute potable, regular water to residents

gun State has signed a Memorandum of Understanding (MoU) with the CLACCS Associates to distribute clean and regular water supply in the state. Signing the MoU at the Ogun State Water Corporation’s office in Abeokuta, Monsurat Agboola, the general manager of the corporation, said the MoU would be of benefit to all parts of the state. “The signing will strengthen the state’s water sector. Asides from improving on the law guiding the supply of water to the people, the company will on regular basis, interface with the state government to further strengthen water policy,’’ she said. Tanwa Koya, managing director of CLACCS Associates, said: “The main

focus of the MoU is to further strengthen the existing law in the interest of Ogun residents. “Par ticularly on the regular supply of potable water to the nooks and crannies of the state, the company will do the needful to ensure that it delivers on the mandate. “The MoU is also set to achieve good performance in the water corporation, boost the revenue base of the state and increase coverage of services,’’ she said. Koya urged all departments in the agency to support and assist the company to make the contract a huge success. It would be recalled that 12 companies had bid for the contract in May 2017; six were shortlisted and CLACCS Associates eventually won the contract.

BUSINESS DAY

Friday 13 July 2018

FEATURE

Stuck with ‘bad’ seeds: Nigerian farmers struggle in a cycle of poverty

CALEB OJEWALE

he average smallholder farmer in Nigeria is by every standard, considered poor. Their largely subsistent farming sees them toiling hard but with very little to show for it. Conversely, in other parts of the world, arduous work is complemented with innovations, particularly good seeds which ensure that farm yields are higher than average, and farmers in those places gradually break free from the cycle of poverty. As Nigeria’s agricultural development is increasingly becoming a subject of interest, it is attracting the attention of both local and foreign players who want to cash in on the renewed diversification rhetoric. However, if poor farm yield is what potential investors will either have to show for their investments, or perhaps, what limits them from getting enough raw materials for production, then the journey to agricultural development may be longer than thought. Frans Ojielu, global financial advisor, ICMG Commodities, wrote in an emailed note, that “the availability of quality seeds is critical to agricultural productivity. This is a critical input and all efforts must be on deck to ensure the availability. The yield per hectare is bolstered by the quality of seeds. The time to maturity is also affected by the types and quality of seeds used which directly affect the economics and cashflow available to agri-businesses. The importance of good seeds is important, not only for the economic wellbeing of the farmers, but also for food security. With an estimated $5 billion food import bill, better yields in Nigeria will imply less importation, while many industries which require agricultural raw materials, will also get the required inputs. However, the problem of seed in Nigeria is multifaceted, with two notable elements. The first borders on dubious seed dealers, who sell fake seeds, at times ordinary grains, to unsuspecting farmers as hybrid. This experience discourages many farmers who have used such seeds from making a repeat purchase. The second; most smallholder farmers (responsible for 80 percent of output) are too poor to afford good seeds. Chris Akor, an Oxford trained young Nigerian, who works in Lagos, decided to use part of his expansive compound in Sangotedo, at the outskirts of Ajah in Lagos for farming. Akor, being educated, decided to buy maize seeds from what ought to have been a reputable company, but he was soon to be disappointed. Two weeks after planting, some had germinated, others did not, and by the time the crops completed the 90 day cycle, he could only harvest about half of what he had cultivated. The quality of maize cobs was in his words, “another complete disaster”. However, unlike Akor, millions of smallholder farmers cannot even af-

Rural farmers planting

ford to purchase good seeds, as a result, resorting to the use of what was saved from their previous harvest. “It is not so much about the availability of seeds. The seed may be available but affordability is another issue. If something is available but you can’t afford it, you would want nothing to do with it,” said Hamza Ahmed Mahuta, a former key accounts manager at Syngenta, currently working as an agriculture consultant. Philip Ojo, director general of the National Agricultural Seed Council (NASC), in an exclusive interview with BusinessDay, said “Farm yield in Nigeria is dependent on numerous factors chief of which is the genetic ability of the seed as well as agronomic factors. “Furthermore, what comes to mind is how much of ‘seed’ farmers are using in Nigeria. The bulk of our crop production is still dependent use of farm saved seeds partly due to the lack of awareness on the need to use quality seeds. Over the years we have done a lot to educate our farmers on the need to drop their own saved seeds and use quality seeds purchased from reputable and approved sources. According to Ojo, NASC has also in collaboration with the National and International Agricultural Research Institutes “made effort to inject quality early generation seeds (Breeder and Foundation Seeds) to ensure that certified seeds available to farmers are of the best quality that are superior to their own saved seeds. The changes can be seen in the level of increase in the quantity of seeds produced over the years.” Rotimi Fashola, general manager, Elephant Group Plc, however posited that “improved seeds are not available in sufficient quantities because we are yet to fully change from subsistence farming to commercial farming. This is a process and it will take some time and persistence. The same for the seed quality. Therefore, more and more companies (private sector) will join seed production once its commercially viable.” “Most farmers still re-cycle their seeds,” Fashola said. It complements

Mahuta’s position, when he also noted that “many farmers in Nigeria are truly peasant. If you look at their lives you will realise what they produce is hardly enough to last them two to three months. The remaining periods they have virtually nothing, not even to keep as seeds but to feed their families. And unfortunately, about 80 percent of primary production in Nigeria is in the hands of these peasants.” He further explained that “there is one thing about farmers; generally, our people resist change, particularly for something that is expensive. So, they may not leave what they are used to and go for an expensive one they don’t even know. So, the best way to get (good seeds) to the farmers is either donating to them or giving it to them at a subsidised rate. “This is because, by the time they try it and see the difference between it and what they are used to, they will certainly want to adopt it. That is how fertilizer was introduced to Nigerian farmers,” said Mahuta. Ojo, NASC’s DG, established that Nigeria officially has “about 157 seed companies already licensed with 92 others awaiting Ministerial or Board approval. An additional 63 companies are awaiting the recommendation of the National Committee on Seed Company accreditation.” Out of these, only about 10 are not indigenous companies; implying the bulk of seed companies in Nigeria are indigenous. However, the quality of seeds coming from these companies suggest their competencies, not generally, but individually, may be subject to scepticism. Getting good, quality seeds into Nigeria has not always been easy as it appeared government deemed it fit to give local companies the preference in production, however unpleasant the outcomes have been. Rutger Groot, chairman, EastWest Seed Knowledge Transfer, and a member of the Supervisory Board EWS BV, said in an interview that “in the past, there were restrictions on import of seeds. It is still not very easy, but it is better now. Now we can get a few varieties of tomato into

the country. When I was here last year, farmers were just astonished what new varieties can do instead of reusing seeds. “You see a lot of farmers in Nigeria keep seeds which they reuse; part of their last harvest saved as seed for the following year. But unknown to them, with every generation quality goes down. So if you just spend a little money on a bag of seeds, the quality will always be uniform and high level. This is something farmers have to learn,” said Groot. Lack of quality seeds which deters many farmers from making a purchase at all, sees several others falling victim to it, and losing their capital when yields are not commensurate with the investment made. Ojo, whose agency oversees monitoring seed production and distribution, said “Farmers’ productivity is greatly impacted by the sale and use of fake or adulterated seeds. Spurious seed dealers involved in the sale of adulterated seeds to unsuspecting farmers are a big challenge to the seed industry. “Their activities are a disservice to the nation, as they rob unsuspecting farmers of their increase in productivity and further make farmers to have a wrong impression of good, quality seeds.” Fashola, Elephant group’s general manager, also noted that for grains that are being repackaged and sold as seed, the industry has to be better “regulated by the National Seed Council by monitoring and policing the seed companies so that they adhere to the right process of seed production. Also, the seed certification system must be improved by committing more money and man-power to it.” The unavailability of good seeds can also be attributed in part to the Growth Enhancement Support (GES) programme introduced by the Federal Government in 2012, as part of measures to depoliticize the input sector by withdrawing the state from procurement of inputs and developing a private sector channel for input distribution.

Since 2014, out of about N67 billion being owed an estimated network of 300 companies that participated in the scheme, N18 billion remained unpaid as at last month when BusinessDay spoke with Kabiru Fara, national chairman of the Agro Dealers’ Association. The impact has been felt throughout the country, and more so in the country’s northeast where farm productivity has nosedived. In the Seed Security Assessment in North Eastern States of Nigeria by the Food and Agriculture Organization (FAO) of the United Nations in 2016, it was stated that; the withdrawal of some private partners from the GES Scheme (a government farm input subsidy programme) led to reduction in quantity of certified seeds and fertilizers available at community level. Moreover, private seed companies reportedly shifted their interest to government and INGOs’ orders and not individual farmers. This was prompted by the comparatively low demand or adoption of adapted certified seeds by the individual farmers and the companies’ interest in prioritizing the few large orders from DSD providers. Some local grain markets were also disrupted, especially in the areas extensively affected by the insurgency. These markets had usually offered an alternative source of seed for poor farmers who needed to supplement their own saved seeds but couldn’t afford better yielding certified seeds. Seed Aid interventions were limited across the three states and largely targeted the internally displaced persons with access to farming land; not the poor farming households. Even before the GES scheme collapsed (more or less), the quality of seed supplies was in doubt, even though farmers ‘were still getting something’. Mahuta, formerly with Syngenta, revealed that “Once the idea of GESS was introduced, most of the senior civil servants registered seed companies.” “Seed companies are supposed to produce seeds but in actual sense what do we see, they go to the open market to buy grains, package them and supply to the areas they are meant to provide seeds to. So, that is another very big problem, in fact, that is why Syngenta had to go into rice seed production, because Syngenta had very good crop protection chemicals, but they discovered there were no good seeds available. So, for those chemicals to give desired effects, they needed to be applied on good seeds, and they discovered that not that there is no good seeds, but they are so limited in number.” Making a case for Soybean: High demand, abysmal yields “There is a small quarrel between the United States and China, soybeans and sorghum are part of items in dispute. The Chinese have a preference for the hybrid soybean Continues on page 26

Friday 13 July 2018

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BUSINESS DAY

INTERVIEW

‘We have cases where landlords have asked tenants to stop paying rents’ Up to the end of the first half of this year, the real estate sector was still passing through challenging times. In this interview, FEMI AKINTUNDE, GMD, Alpha Mead Group, reviews activities and situations in the sector since the last quarter of 2017, noting that with falling demand, rising vacancy rate, especially in retail malls and high end residential houses, landlords and mall owners have been compelled to drop rents and offer concessions to maintain reasonable occupancy level. He also speaks on the impact of the 2018 budget on real estate sector. He speaks with CHUKA UROKO, Property Editor. Excerpts

espite the positive outlook that was predicted at the beginning of this year by analysts, the first half of the year has come and gone but the sector remains in recession even with the improvement in the wider economy. What is responsible for this? Real estate generally lags behind the key indicators of the economy and that is why it is called a laggard. There are slight indications that things are gradually coming back indirectly but we are not yet feeling it in real estate. The reason for this could be viewed from two angles, but primarily from finance angle. Real estate is a capital intensive venture. It is not recurrent or transactional as such. Decision on real estate is not short term. If you want to own a home, build an office complex or a retail mall, the decision is not one you just wake up and say you want to do. It cannot be conceived within the short period we have experienced recovery in the economy. Even if you have started planning or already on site, it takes a while for you to come up with the financial involvement and capital deployment. Real estate lifecycle comes in different phases— from conceptualization to planning, design, procurement and construction before you finally come to the ownership phase. That cycle, depending on where you were before the recession, to restart it takes a long time. You have to re-establish your position before the recession; that this was where you was and, based on the recovery, you have to determine if the impact of the recession has not shifted you backwards. If it has, then you have to recalibrate and find your way back to where you were before recession. So, I would say that for those reasons, it is not yet Uhuru for the real estate sector even after we have seen recovery. You have just said that real estate is not transactional; what do you mean by that? This does not mean you are buying something and reselling it. By this I mean something that is short term. Development plan is there. Bits and pieces of this are transactional. But in any development, you have to define the scope and review the design. Real estate is a unique asset class and we must recognize that. It is like an elephant; waking it up is a huge task. To move it forward from where you were before a stop requires a huge amount of effort. It is like restarting a manufacturing plant after you stopped operation for some time.

Femi Akintunde

This can take a week or two to check all the components, clean them up and get the machine running again. But, in spite of what you have just said, the property market is still running. Demand and supply are still happening. In measurable terms, what can you say about market transactions? I will speak on this from two angles—as a service provider and as a developer. From the beginning of the year till now, a couple of things have happened. First is that the economic impact of recession on the financial capabilities of customers is well pronounced. A lot of people have struggled to meet up with their service charge payment. Again, a lot of contracts have been renegotiated and this has negative impact. A lot of people have lost their jobs. Clients are now reducing the scope of what they are supposed to do because of lack of resources. Also the income generating capacity of a lot of individuals and corporate organizations have reduced. A key driver of service demand is traffic or usage. So, if one was receiving 100-200 customers before now and it is now reduced to 40, it follows that one won’t have enough resources to continue to maintain the facilities at the level where demand was placed originally. Let us look at market situation in terms of falling demand and rising vacancy level in residential houses Vacancy rate has gone up significantly because a lot of people have moved out of where they were living before the recession. They have adjusted their lifestyle. In terms of where

we were before recession, the vacancy rate is about 20 percent. This 20 percent is just the average because occupancy level in some houses have reduced by 40-50 percent while some have not changed at all. Some of our corporate clients have changed office location. Some that were in two to three floors have now scaled down to one floor because they have sent away a good number of their staff due to reduced business activities. For retail, some retailers have had to move out of the malls completely. Some landlords have reduced rents. We have cases where landlords have asked tenants to stop paying rents altogether. Just pay the service charge to enable us maintain the mall. This is because there is a minimum level of occupancy you must be able to maintain to keep the anchor tenants and the mall active. There are all sorts of adjustments taking place. Where landlords used to ask for annual rents, they are now asking for quarterly payment. Even service charge has been affected. Cost of fund and cash flow to support businesses have also been affected. Last year, the federal government funded the budget about 80 percent from domestic debt. What that did was to crowd out the private sector. Banks were not lending to service providers and customers were not paying; many of them were defaulting. What happened was that service quality was affected in terms of response and the trickle-down effect on value chain. Service providers were joggling projects and rationing cash. Some customers were feeling the pain more than others because the sub-contractors under us were being owed and not all of them have the financial capacity to withstand that pressure. As it is now,

it is a question of financial dynamism for various organizations to be able to cope and keep their head above water. Not long ago, the 2018 budget was signed into law by the president. The executive alleged that allocations to various items including infrastructure the national housing programme (NHP) were cut. How is this going to affect the housing sector? Mind you, we are dealing with a big economy. When we are analyzing a budget, we have to be very careful not to be sucked into a narrow perspective, otherwise we lose the main substance and the bigger impact of the compensations for different items. That the allocation of N35.4 billion to NHP has been reduced to N26 billion is not a big issue. This is not where the grey issue facing the housing sector is. Housing is at the tail end of the built environment. Housing cannot exist on its own. So, rather than looking at the NHP in isolation, let us look at the broad perspective. Let’s look at the capital expenditure which is about 31 percent of the budget for this year. This represents N2. 87 trillion in a budget of N9.1trillion. This is about 22 percent higher than N2.34 trillion of last year. Let us bring it further home to what affects housing. The budget for power, works and housing went up from N529 billion last year to N555 billion this year. This shows a marginal increase of about 6 percent. This is the biggest allocation in the various components of the budget. Let us take a critical look at housing. Should government really look away from housing? When you look at housing, you see that it is not something that government can look away from because it is very important for various reasons. You look at the effect of real estate on GDP which is about 7 percent; you also look at its effect on job creation and quality of life of citizens. Of the basic needs of human beings, after food, the next thing is shelter. A man that does not have a home cannot be productive because his heart/mind is not at rest. Housing also impacts on security because a man that does not have a house lives on the street and becomes a security risk to every other person. He is vulnerable to attack and is also ready to attack other people out of anger and idleness. The commitment to the development of infrastructure is very key and it has to be the kind of infrastructure that can impact housing. If you want to develop a place, you just put electricity and good road network to connect the towns and villages. Another thing

that can impact housing and bring development is mass transportation system. So, rail transportation is key. If you go to a place like UK, you see the tube working all over the place. The train system is working and you can travel a distance of 200 kilomretres in just one hour. If you look at roads infrastructure like Lagos Ibadan Expressway and Lekki-Epe Expressway, you see the kind of developments taking place there because the roads are good. Once there is good road network, you see developments taking place from individuals and organizations or companies. So, the provision of infrastructure that relate to housing is critical. We need about N56 trillion to deal with the 17 million housing deficit in the country. The government does not have that kind of money. But efforts have been made in the 2018 budget to put in place those things that can make housing development by individuals and organizations to provide their own housing needs. There is no benefit in building a beautiful house where there is no access road and no electricity. Nigerians need just those basic things that will make them survive but not much is being done. For instance, where America is doing 3,300 kilowatts of electricity per 1000 people, Nigeria is doing just 35 kilowatts per 1000 people. UK is doing about 1,500 kilowatts per 1000 people, Ghana is doing 62 kilowatts which is very low, but still higher than ours. At 35 kilowatts, it means we still have a long way to go. Provision of that critical infrastructure improves quality of life which, in turn, affects life expectancy that, in Nigeria today is as low as 52 years on the average. The government we have may not be the best we need but it could be seen that they are putting their efforts in the right direction. How far they will go is still a matter of conjecture. But a government that has 30 percent of its annual budget on capital expenditure, in my view, means well. However, 68 percent of the budget on recurrent expenditure tells you that the size of the civil service, political office holders and the legislature is too big for the economy to cope with. This is why most state governments are struggling to pay salary. The next best thing to do is to downsize, but where is the political capacity to do that? Government sees itself as the direct provider of employment and that should not be. Its duty should be to provide the enabling environment for ease of doing business for the private sector to provide jobs. Private sector can work faster and deliver more, all to the credit of the government.

BUSINESS DAY

Friday 13 July 2018

AgriBusinessInsight Market Insights

Analysis

Commentaries

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Send in News content and your Commentaries to caleb.ojewale@businessdayonline.com

Analysis

Lessons for Nigeria on how Rwandan milk production is gaining traction CALEB OJEWALE Twiiter: @calebtinolu

n Nigeria, the average cow is said to produce about one litre of milk per day, or maybe add an extra half at times. In Rwanda, the case is different, at least now when dairy farmers say they get an average of 20 litres of milk per cow. This is especially so for those who have embraced improved breeds of cattle from the Netherlands, New Zealand, and even South Africa. This feat has been possible through a combination of three factors; the government’s commitment to developing agriculture, determination by individual citizens to run sustainable businesses, and very important; efficiently utilizing bilateral commitments which have been made by foreign g over nments such as The Netherlands. Nigeria not only enjoys similar commitments from several countries such as the Netherlands, but it does not appear enough is being done to take advantage of these unique, potentially rewarding opportunities. A group of dairy farmers from Rwanda are currently in the Netherlands, understudying best practices and gaining knowledge on how to further improve their operations. The group is in the Netherlands on an exchange visit courtesy of Agriterra, a Dutch organisation which provides support to farmers through advice, developing business plans, exchange visits, training amongst others. The group is in

the Netherlands on peer to peer/ farmer to farmer learning. Hakizimana Pierre Celestin, c ha i r p e r s o n , I A K I B d a i r y cooperative speaking through an interpreter, explained that his cooperative is able to collect 37,000 litres of milk per day from different areas where they have milk collection centres. They have a vision (and ambitions) to start up a sort of joint venture with a private company. Their milk is currently supplied to a private company called Blessed Dairy, and some of it also goes to Inyange industries, which they say is a milk processing plant of the Rwandan government. This cooperative as part of its visit to the Netherlands is now planning to do beyond simply milking cows and selling off, it also wants to start adding value to the milk produced by

dairy farmers, so they earn more money. According to Rwanda’s The New Times, the country produces more than 1.5 million litres of milk per day, but only 18 per cent of this is collected through Milk Collection Centres (MCCs) and just 10 per cent is processed. It would appear production is less of a problem, rather, collection and processing. In Nigeria, the reverse is the case. Local milk companies have to rely on importation to meet the country’s dairy needs. Weather and ability of breeds to survive in Nigeria is often adduced for the inability to achieve better results in dairy. But then, this argument is increasingly less valid on account of cross breeding and varieties which have the right attributes to deliver better yield, and which will also survive in Nigeria.

Ju s t l i k e A g r i t e r r a h a s been working with Rwandan cooperatives, one company in Nigeria, is making similar efforts to support dairy farmers in getting more from their cattle. A BusinessDay report last year, explored how Frieslandcampina WAMCO Nigeria has since 2011 been supporting dairy farmers in Oyo state, and since 2014, introduced what has been described as a unique support programme in Iseyin. Many farmers told BusinessDay they have been able to learn cross-breeding from Dutch farmers who came in from the Netherlands, and regularly cross-breeds cows brought in by FrieslandCampina. E xperts describe crossb re e d i ng a s a m e t h o d o f producing an animal or plant by mating or two different species or

breeds. They say that the major advantage of crossbred cattle is that they exhibit the strengths of all breeds from which they descend. In Iseyin where Frieslandcampina is engaging local dairy farmers, productivity is gradually i mp rov i ng bu t a l o t m o re can be achieved at a national scale if a deliberate, strategic approach is developed to learn from countries that are getting it right. It becomes imperative that conscious efforts are made in ensuring that the interests by foreign governments and organisations to support Nigeria, yield desired (positive) results for the countr y to develop. The Netherlands government for instance has expressed its commitment to provide support for Nigeria’s agricultural development, aiming to facilitate the creation of new jobs to support the economy, and stimulate economic growth. Robert Petri, the Netherlands Ambassador to Nigeria, has delivered this message a number of times, saying the Dutch mission in Nigeria wants to deepen bilateral relations with the country. They have identified agriculture as the best way to provide support, owing to the Dutch track record in high productivity. Despite being one of the smallest countries by size at 41,543 Km2, it is the world’s second largest exporter of food. It appears all that is left, is for Nigeria to start practical engagements, with countries willing to help the country improve local production capacities.

Stuck with ‘bad’ seeds: Nigerian farmers struggle in a cycle of poverty Continued from page 24 from Nigeria, and will like us to sell them two million tonnes of soybean per annum. That is quite a place to do some business,” said Audu Ogbeh, Minister of Agriculture and Rural Development, at BusinessDay’s Agribusiness and Food Security Summit this year. But then, the Agriculture Promotion Policy document shows that Nigeria produces only 500,000 metric tonnes, with a demand of 650,000 thousand. The crop is important as an Animal feed and alternative source of protein which determines demand for it annually. Mahuta, who says he has cultivated Soyabean for the last

10 years, explained that it is not a high yielding crop. And, even less of it is grown since it is not a staple food. “If you produce it as a small farmer, you may be forced to sell it at harvest and probably get nothing. Only people that have capacity to produce and keep for some time may benefit from it. It is a very low yielding crop, to the best of my knowledge. “I have been cultivating soybean for more than ten years now, and I am yet to get the variety that gives up to a tonne per hectare. Most of these seed companies may say it will give up to 2.5 tonnes per hectare but honestly I have not seen that yet.” The demand for soybean will

however continue to increase and according to Olam Grains, a subsidiary of one of Nigeria’s leading agriculture companies, demand could reach 3.5 million metric tonnes by 2040. Through a systematic field research, Olam has identified the availability of good-quality, high-yielding seeds as a major catalyst for boosting farmer’ earning, thereby generating interest among more farmers to grow soybeans. The company has also partnered the International Institute of Tropical Agriculture (IITA), to promote the commercialisation of its tropicalised soybean varieties, suitable for the different agroclimate conditions for various

parts of Nigeria. In 2017, the company started a 220-hectares trial seed farm on its Kaduna site, and proved the seed farming model succcesfull. In this rainy season, Olam has expanded its seeds production to 500-hactares to offer high-quality certified seeds to Soya farmers in Nigeria. This is expected to contribute towards Olam’s ambitious target to increase Nigeria’s soybean production to 2.0 million metric tonnes in five to seven years. However, for the country to produce at least fivefold of what it currently does, to meet local and export demands, more innovations are required in seed production. Initiatives such as

the one being championed by Olam and IITA, would not only need to be replicated, but actively supported across the country. When this rapid development in capacity happens, Nigeria’s local demand for Soybean (just like other commodities) will not only be met, but the country will as well be able to trade with China. Their present demand of two million metric tonnes of Soybean export, which is more than four times what Nigeria is producing, can then be met, and even surpassed to meet whatever may be required in the future. But for this to be achieved, good, quality, authentic seeds need to be made available for farmers to become truly productive.

Friday 13 July 2018

C002D5556

BUSINESS DAY

Hotels Hilton opens first hotel in its $50m Africa Growth Initiative …as Nigeria welcomes Curio this August OBINNA EMELIKE

arely one year after the launch of its Africa Growth Initiative with $50 million to be expended over the next five years to support the expansion of its sub-Saharan African portfolio, Hilton has opened DoubleTree by Hilton Nairobi Hurlingham. Formerly known as Amber Hotel, the 109-room hotel is the first in Africa to benefit from the $50 million fund intended to support the conversion of around 100 hotels in multiple African markets into Hilton branded properties, namely into its flagship Hilton Hotels & Resorts brand, the upscale DoubleTree by Hilton and the recently launched Curio Collection by Hilton, as well as, providing instant benefits such access to over 69-million Hilton Honors members and leading innovative technology, including digital-check in. The initiative, which is expected to add roughly 20,000 rooms from the hotel conversion project in the next five years across Africa, hopes to deliver more hotels this year on the continent with DoubleTree by Hilton Kigali City Centre opening later in

the year. The 153 room-hotel in the Kigali central business district, which is at the final stage of it conversion and rebranding process, was formerly known as Ubumwe Grande Hotel, and will be Hilton’s first property in Rwanda. How ever, the Afr ica Growth Initiative is also impacting the Nigerian hospitality landscape. With the initiative, Hilton’s expansion, which is long overdue in Nigeria, is taking off with the launch of Legend Hotel Lagos Airport, Curio Collection by Hilton in August this year. Already, the hotel, according to a source from

Hilton in Nigeria, has gone through all the approval stages, certifications, test running and is ready to open its doors to discerning public this August. The 54-rooms and suites hotel, which is rightly located within the Lagos Airport environ with proximity to the international terminal of the airport, will be the first hotel in Lagos and among the pioneer 100 hotels under the Africa Growth Initiative. Also, Hilton is bringing its first African general manager of Nigerian origin to manage the Curio in Lagos. As well, hotel conversion projects are ongoing in other West African countries with

Top BusinessDay Partner Hotels

Four Point Hotels (Oniru Chiefatancy Estate,Lekki)

majority of the 100 hotels expected to open from 2020. It would be recalled that at the launch of the $50 million Africa Growth Initiative in October last year, Patrick Fitzgibbon, senior vice president, development, Europe, Middle East and Africa, Hilton, said: “Hilton remains committed to growth in Africa having been present on the continent for more than 50 years. The model of converting existing hotels into Hilton branded properties has proved highly successful in a variety of markets and we expect to see great opportunities to convert hotels to Hilton brands through this initiative. “It enables us to rapidly grow our portfolio and delivers returns for owners by increasing exposure of their business to more international, inter-regional and domestic travellers, and specifically to our 65 million-plus Hilton Honors members, who look to stay with us in our suite of industry-leading brands. We see huge potential here in key cities and airports, as well as allowing us to develop our offering in resorts and safari lodges.” Hilton currently operates 19 hotels in the Sub Saharan Africa region with a further 29 in its pipeline. It has held a presence on the African continent for over 50 years.

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

The Wheatbaker #4 Onitolo(Lawrence Road), Ikoyi, Lagos. Tel: 01 277 3560

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

InterContinental Lagos Plot 52, Kofo Abayomi St, Lagos Tel: 01 236 6666

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

Ini Akpabio heads Akwa Ibom Hotels Management and Tourism Board ANIEFIOK UDONQUAK,

overnor Udom Emmanuel has approved the appointment of Ini Akpabio, a foremost hospitality and tourism practitioner, as chairman of Akwa Ibom State Hotels Management and Tourism Board. Akpabio is credited with turning a family business into a chain of flourishing hotels across the country and until his appointment was the managing director/ CEO, Nanet Hotels Limited. He brings to his new position more than 20 years experience garnered in the hospitality and tourism industry. His appointment was among dozens of others announced by the state government, which included chairmen and board members of state-owned agencies and departments. Akpabio, who has been the national president,

Hospitality and Tourism Management Association of Nigeria(HATMAN) since 2008 is also the vice president of Federation of Tourism Associations of Nigeria (FTAN) and a recipient of the prestigious Kwame Nkrumah Excellence in Enterprise Award. Rea c t i ng to t h e a n nouncement, an industry expert said his appointment

is timely and comes at a time the state government has initiated moves to diversify the economy away from dependency on oil revenue to agriculture and tourism describing it as a square peg in a square hole. Akwa Ibom State has become one of the most preferred destinations in recent times attracting business travellers and tourists due

to its quality infrastructure including excellent road network, world class sport stadium and a five star hotel with a golf course. It has one of the longest coastlines in the country with excellent beaches, a first class specialist hospital to promote medical tourism and various tourist sites. Akpabio holds a Bachelors Degree in Business Administration from the University of Lagos, a Masters Degree in International Hospitality and Tourism from the University of Surrey, Guildford, United Kingdom, as well as, Masters in Business Administration from Ahmadu Bello University, Zaria. A widely traveled person, Akpabio is seen as a dynamic and result oriented professional business administrator with strong interpersonal skills and team spirit, a proactive and innovative manager of men and materials and has managed chains of hotels across Nigeria.

Best Western Hotel Hotels 12, Allen Avenue C/O Funmi (Front Office Manager)

Protea Hotel (GRA Ikeja) GRA Ikeja

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

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

BUSINESS DAY

Harvard Business Review

Friday 13 July 2018

ManagementDigest

The leader’s calendar: One CEO’s approach to managing his calendar

pirit Aerosystems’ Tom Gentile Shares What He Learned From Tracking His Hourly Activity For 13

Weeks. Tom Gentile spent 20 years as a senior executive at General Electric before becoming CEO of Spirit AeroSystems, a $7 billion aviation supplier. Seven months into the job, in 2017, Gentile and his assistant spent 13 weeks tracking his time as part of Harvard Business School’s CEO Time Study, and discussed his results with the people leading the research, Michael Porter and Nitin Nohria. Gentile recently spoke with Harvard Business Review’s Daniel McGinn and HBS research associate Sarah Higgins about what he learned — and what behaviors he’s trying to change. Here are edited excerpts from their conversation: Q: Earlier in your career, how did you learn to manage time? A: Back in the 1990s, when I was a consultant at McKinsey, I remember trying to use the FranklinPlanner calendar system. It was manual and cumbersome — it was too thick to fit in my briefcase. Later I used a PalmPilot and then a BlackBerry, and now I use Outlook. The tools of time management have become much more effective during my career. But I really learned time management from my mentors, especially at General Electric. I watched leaders who were good at it, and I emulated them. I remember one of my bosses, Dave Nissen at GE Capital Global Consumer Finance. He had so many demands on his time, but he set clear priorities, and he was ruthless about eliminating tasks that weren’t important. He went home at a reasonable hour every night and took all his vacation days. He was incredibly effective. That’s the model to which I’ve always aspired. Q: Did those methods work for you when you became a CEO? A: They weren’t enough at first,

because the job was so much bigger. When I was leading business divisions at GE, I faced a lot of demands, but it’s a different order of magnitude when you’re a public company’s CEO. All of a sudden you have board responsibilities, investor responsibilities and many more media responsibilities. They take an inordinate amount of time. The requests keep coming in, and the schedule fills up so much faster. Q: What did you get out of tracking your time so closely for 13 weeks? A: Having that detailed a record of how I use time and being able to benchmark myself against other CEOs was useful. Some of what I learned was quite surprising. For instance, I spend much less time oneon-one with my direct reports than the average CEO does, and I didn’t know that. When I talked about my results with Michael Porter and Nitin Nohria, the Harvard Business School professors who are doing the study, it felt like a very intensive performance review. They were cordial, but they were very direct in their feedback. Q: Why do you spend less time with direct reports? A: I tend to structure meetings with broader teams — people from multiple units or across geographies. So I do spend time with my direct reports, just not one-on-one time. I have monthly one-on-ones scheduled with every direct report, but they’re busy, and I’m busy, so

my assistant often cancels them for something more important. Porter and Nohria think that if I have more one-on-ones with direct reports, I will delegate more and hold them more accountable. We had a healthy debate about that, and as a result I have stopped canceling the oneon-ones. We’ll see if that makes a difference. They also suggested that business trips would be a good opportunity for these conversations. Our headquarters is in Wichita, which has limited airline service, so we rely on a private jet for a lot of travel. That can be a great setting for a one-on-one conversation. Q: What else did the data show? A: We noticed that my meetings are predominantly one or two hours. The good news is, I don’t have many six- or seven-hour meetings, and I have fewer long meetings than the average CEO. But Porter and Nohria asked a good question: Why do you need an hour? Why can’t your meetings be 45 minutes or even less? So we have started scheduling 45-minute meetings, from 1:15 to 2 p.m., for instance. And we’ve continued our practice of having my executive assistant come in five minutes before the ending time to tell us to wrap up and keep us on schedule. I’ve found that if a CEO’s meetings start running long, it creates scheduling problems for everyone in the organization. Q: The data shows you spend a lot of time on email. Is that a problem?

A: Porter, Nohria and I talked a lot about email. I do spend too much time on that. Email is impersonal and reactive. CEOs have to stay human and be authentic, and you can’t do that via email. Professor Porter and Dean Nohria — who by the way was my organizational behavior professor when I was at HBS! — encouraged me to have more face-to-face time, more time to walk around. That was one of the big takeaways from the study. I also need to spend more time alone, thinking and being proactive. My blocks of unscheduled time are too short for me to be reflective about big issues, and I tend to just go to my inbox. It’s been hard to detach from the inbox, but I’m working on it. And I have been walking around our headquarters more. Q: Do CEOs really need lots of alone time? Aren’t you always thinking about the business during idle moments — while driving or exercising or waiting for flights? A: I do have time to reflect when I’m driving or when I’m on a plane without Wi-Fi. Setting aside time for thinking can be valuable. I do come up with ideas during those hours. And Porter and Nohria’s broader point isn’t just about time for reflection — it’s about preserving time for spontaneity and not being overscheduled. Q: Can’t your executive assistant help prevent overscheduling? A: One of the things I learned from this process is that your assistant has to be a strategic partner. I now try to sit down with her on a regular basis, to make sure she knows what my priorities are. She also does small things that help. For instance, she blocks out all my time so that no one can look in Outlook and recognize that I have a free half-hour and then request a meeting. She makes appointments at other people’s offices, which forces me to get out of my office. She also schedules lunch for me every day.

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I always have a half-hour. That’s a healthy habit, so I don’t miss meals, and it also allows me to grab somebody to talk with informally about an issue. Q: Speaking of healthy habits, did Porter and Nohria give you grief about lack of exercise? A: Yes, they beat me up a little on that. I do need to schedule in time to exercise, which I haven’t done in the past. I spent only 4% of my personal time during this period on exercise, which was lower than average — and to be honest, I’m lucky it wasn’t 0%. They also pointed out that I don’t spend enough personal time on hobbies. At this point, my only real hobby is golf, and I tend to play it mostly with customers and at industry events. I certainly wouldn’t object to playing more! Q: You spend more time with customers than the average CEO does. What do you sacrifice to do that? A: My focus on customers comes from my years at GE — leaders there spend a lot of time with customers. Jeff Immelt was a role model in that regard, the best I’ve ever seen. Our industry has a lot of events — association meetings, air shows — that everyone attends, and they can be a convenient way to see a lot of people. Going to them means spending less time at headquarters and delegating more to my team, but that’s probably a good thing. Q: What do you tell up-andcoming leaders about time management? A: Think about time very strategically, because it is part of your strategy. You can’t let it be a reactive process that bubbles up from the bottom. You have to manage it from the top down, and you can’t delegate it. And even in an age when email is prevalent, you must be disciplined about communicating face-to-face in a way that lets people see you as genuine and approachable.

Friday 13 July 2018

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BUSINESS DAY

BUSINESS SOUTH-SOUTH

COMPLETE COVERAGE OF SOUTH-SOUTH / SOUTH-EAST

Walter Ollor Foundation mainstreams research for sustainable development

Walter and Helen Ollor, resource persons at the Kuala Lumpur event.

21st Century Knowledge and Skills through Global Societies.” This poster highlighted the interconnections between climate change, international migration, and protectionist, policies now invoked by advanced countries such as the USA and UK. They pointed out that for globalisation to serve all and improve sustainable livelihood, protectionism is not the right policy as most global issues such as natural disasters and infectious diseases require global efforts in their resolution. The case of Ebola and SARS viruses are examples. Furthermore, international migration caused by human trafficking, war and violence demand multi-lateral and global approaches for effective resolution. Erecting walls through protectionist policies are only Band-Aids and are not sustainable. A case in point is the fall of the Berlin Wall in 1989. It is a contradiction that while formerly autarkic

countries like China are opening up their economies to the rest of the world, UK and USA are becoming “closed” economies via Brexit and Mexican Wall respectively. Ollor was a panelist on the session titled, “International Research for Sustainable Development.” This session was chaired by another professor, Richard Davies, ViceChancellor, University of Swansea, UK. Other members of the panel included two more professors, Sayed Azam-Ali, (CEO, Crops for the Future, Malaysia), and Graham Kendall (Provost and CEO, University of Nottingham, Malaysia Campus). Others were Y. Bhg, Datin Paduka, Ir Siti, H. B. Tapsir (director general, Ministry of Higher Education, Malaysia). Ollor advanced the idea of globally collaborative research networks to resolve issues of food security, energy security, climate change, and

understanding our planet. He advocated for consortia of universities, research institutes, development agencies, and policy makers similar to the Global Confederation of Higher Education and Research for Agriculture (GCHERA) which was pioneered by Iowa State University, his alma mater, in 1999, to address global food security and sustainability of agricultural Sciences. Ollor, who is the president of Walter Ollor Foundation, also called on the advanced countries to institute an International Higher Education Loan Programme (I-HELP) to support young researchers and practitioners in sustainable development to build capacity in disaster risk management, conflict resolution, consensus building, climatology and epidemiology – all knowledge and skills desirable for 21st century management of sustainable development.

How Okorocha wasted N58bn on frivolous urban renewal – NSE EFEGADIRIM MADU & SABY ELEMBA, Owerri

he Nigerian Society of Engineers (NSE), Owerri branch has described Governor Rochas Okorocha’s ongoing urban renewal programme (mainly) in Owerri state capital, as a mere destruction of the city’s built area, with colossal economic waste estimated at over N58 billion. In a letter to the state commissioner for Works, the state branch of NSE said the ongoing renewal programme has resulted in the destructions of many telecom and pipe borne water facilities worth over N58 billion. According to Emeka Ugoanyanwu, chairman, Obioma Iwuamadi, general secretary and Chibuike Onyejietu, publicity sec-

ANIEFIOK UDONQUAK, Uyo

IGNATIUS CHUKWU oing Global 2018 Conference,’ which was held in Kuala Lumpur, Malaysia, from May 2-4, 2018, was organized by the British Council, and was attended by over 1,000 delegates from around the world. The theme was: “Global Connections, Local Impact: Creating 21st Century Skills, Knowledge, and Impact for Society-wide Good.” This emphasized the important roles that tertiary institutions play in the communities, as they help to develop citizens to think globally, and acting as pipelines for international collaborations and partnerships for social innovation and social change. ‘Going Global’ seeks to answer certain crucial questions of international interest, and this year, the conference sought to proffer answers to two key questions: What are the priorities in ensuring national tertiary education is fit to shape societies of the future and meet the future needs of students, employers, and communities? And, how can global tertiary networks contribute to their achievement? These questions were addressed through policy reviews, and the future of international tertiary education narrowed down to five key areas of challenge: New skills, new graduates; Social mobility and international mobility; and demonstrating impact. Others are future-proofing higher education institution systems, and new models of delivery. The conference programme featured subtitles such as Master Classes, Campus Tours, Plenary Sessions, Parallel Sessions, Poster Sessions, and Exhibitions – all tailored to address the conference sub-themes. The professor, Walter Ollor and wife Helen Ollor (PhD) presented the poster titled, “Globalisation and its Leaking Umbrella: Creating

NGO organises free skills training for youths in A/Ibom

retary all of NSE Owerri branch, who signed the statement, the renewal projects have not measured to best practice. The urban renewal which started about 2016, has seen the destruction of tons of buildings, underground water and telecomm pipelines, drainages, electric power installations, shops, business premises and other constructions. Incidentally, the ensuing road expansion works have left much to be desired, as the projects are done by local hired masons who undertake key constructions including bridges and culverts, with shovel, headpan and hand-diggers. Earlier in 2016, the Council for the Regulation of Engineering in Nigeria (COREN) warned that Governor Okorocha was embarking on his road constructions without recourse to set engineer-

ing standards, and was not using registered engineers to supervise if the projects complied to basic safety rules. Today, virtually all the roads done under the renewal project are in one state of disrepair or the other. Many others have been left half-finished and unfinished. Some have been abandoned by their contractors on excuses that they were not paid. Some of the contractors told BusinessDay that they were not paid. According to the NSE letter to the Works commissioner, the destruction of Owerri City’s infrastructure and wastage of public funds on a frivolous urban renewal programme arose from Governor Okorocha’s engaging of non-professionals to execution the projects. NSE further decried the destruction of Owerri’s well-de-

signed drainages under late Sam Mbakwe (1979-1983), electric power installations, markets and motor parks; and expressed deep worries that the drainages were being replaced with cheaply done ones. They described the execution of the programme with nonprofessionals as embarrassment to the registered and practicing engineers. According to Ugoanyanwu, urban renewal programmes should naturally be carried out in phases, and must always follow the master plan covering about 50 years projection, in order to engender sustainability. The Owerri branch of NSE has therefore, asked the Imo government to halt the contractors handling the urban renewal programme and re-evaluate it with the aim of correcting the wrongs.

Non-Governmental Organisation, Ibom Development and Empowerment Assembly (IDEA) has organised free skills acquisition training for youths in Akwa Ibom as part of its first anniversary programme. The centre which is located in Uyo, the state capital has more than 100 youths registered for the first phase of the training programme in areas of tailoring, hair dressing, computer operation and catering. Alfred Itah, a university don and chairman of the board of IDEA, said the assembly was starting the free training programme to partner with the state government, since government alone could not do everything. “As a government that has touched the lives of people in the rural areas, we (in IDEA) want to partner with this government. We want to see what we can do to assist the government. We are turning this complex to a skill acquisition centre for one year. We are going to train the youths of Akwa Ibom state,” he stated. He also urged members of the academia to be involved in party politics to find solution to the country’s challenges. The University of Uyo Microbiology lecturer, asserted that, it was time for them in the ivory tower to reason together and find solutions to the country’s lingering challenges. According to him, the popular axiom that, ‘politics is a dirty game’ does not hold water; stressing that such notion has made those who should take active part in party politics to stay aloof and watched mediocres take over the scene; thereby, resulting in the rancour being experienced everywhere in the country. “IDEA is saying, come let’s reason together; how do we move our state and Nigeria forward; let us be creative; love one another. Sometimes, we see things going negatively and fold our hands and keep watching and we have the academia around us, we should not be folding our arms all the time,” Itah said. He urged that learned people should not run away from politics on the guise that it was a ‘dirty game.’ According to him, time has come for us to have a re-think about such statement. Itah called on more indigenes of the state to join the group irrespective of their political affiliations; saying that IDEA before now had paid hospital bills for indigent patients, given sewing machines to many persons and financial assistance to many.

BUSINESS DAY

Friday 13 July 2018

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Friday 13 July 2018

BUSINESS DAY

Sports

GOtv Boxing Night returns to Ibadan with Joe Boy, Fijabi, others Stories by Anthony Nlebem

eigning African Boxing Union (ABU) lightweight champion, Oto “Joe Boy” Joseph of Nigeria, will defend his title on 29 July at GOtv Boxing Night 15 scheduled to hold at the Indoor Sports Hall of the Obafemi Awolowo (formerly Liberty) Stadium, Ibadan. The event is making a return to the Oyo State capital, where it held in March 2017. Joe Boy will face crack Ghanaian opponent, Nathaniel Nukpe in a 12-round contest, which is the biggest of the seven bouts on the night. Another big fight scheduled is the international light middleweight challenge contest between Nigeria’s Akeem “Dodo” Sadiku and Franc Houanvoegbe of the Republic of Benin. Also billed to fight is the African Boxing Union welterweight champion and crowd favourite, Olaide “Fijaborn” Fijabi, who will square up against Kazeem “Iberu” Ariyo in a national challenge duel. The cruiserweight division will feature Idowu “ID Cabasa” Okusote against Michael “Lion Heart” Godwin, while Prince “Lion” Nwoye will

L-R: Chidozie Bede-Nwokoye, Marketing Manager, GOtv; Akinola Salu, General Manager, GOtv; Jenkins Alumona, CEO Flykite Productions and Neil Bothma, CEO BetKing Nigeria during the GOtv Boxing Night 15 Press Conference held in Lagos…recently

take on Ridwan “Scorpion” Oyekola in a lightweight challenge duel. The light welterweight category will see Vincent “Dada” Essien test his mettle against Segun “Showboy” Olalehin. There will also be a heavyweight clash between Daniel “Big Shark” Emeka and Sulaimon “Olags” Ad-

eosun. The event, sponsored by GOtv and Bet King, will be beamed live on SuperSport in 47 African countries. The best boxer at the event will go home with a cash prize of N1million attached to the Mojisola Ogunsanya Memorial Trophy.

Sixteen teams jostle for honor in Premier Cool 5-aside football competition

remier Cool, a brand of PZ Cussons and one of Nigeria’s heritage brands is set to take its support for the game of football to higher level. Premier Cool has announced the launch of its leisure football competition, tagged “Premier Cool Turf Wars” which is set to hold in Lagos state. The Premier Cool Turf Wars is a 5-Aside football competition set to engage football lovers in a cooler and much more exciting atmosphere. According to Aisha Anakwe, Brand and Activation Manager, Premier cool, the Premier Cool Turf Wars is a 5-Aside football competition that will take the enjoyment of leisure football to a whole new level. “As you may already know we are a football loving brand, which we have demonstrated by our partnership with Manchester City Football Club, as we believe football to be a cool sport loved by all,. Our consumers are really cool guys who despite their busy schedules still make out time for the game of football as a leisure exercise. It is this love and passion we want to reward. So with the Turf Wars football we are looking for the cool guys out there ready to play for pride and walk away with cool cash prizes” She said. Registration for the competition is absolutely free and is open to football lovers between the ages

of 18 – 35 years, till 26th July, 2018. Interested participants are encouraged to register as teams, each team should comprise of a minimum of 4 players, 1 goalkeeper, 2 substitutes and 1 official. Each team will be required to choose a team captain who will be responsible for registering the teams on the competition micrositewww.Premiercool.com. ng/Turfwars by providing all the relevant information. Only 16 teams out of the registered teams will make it into the competition proper, as short listing will also include an online voting process. The competition will involve the knockout stages as well as the finals where the eventual winners will emerge. The winning team will get a cash prize of N3million, while the second and third runners up will walk away with N1.5million and N750, 000 respectively. Premier Cool who are the official partners of premier league champions; Manchester City FC are also working with SociaLiga, a local social group based in Lagos that promotes football culture in West Africa, for the Turf Wars football competition. Premier has been in Nigeria for over 30 years and recently relaunched the brand with new offerings and variants to provide consumers with the total personal care.

Nigerian Bobsled pilot Seun Adigun recognized as first African Winter and Summer Olympian

igerian bobsled pilot, Seun Adigun continues to break new boundaries and set standards after leading three other team members to represent the African country at the recently held Winter, Olympics in Pyeongchang County, South Korea. Adigun who also recently bagged a doctorate degree in Chiropractic has now been officially recognized as the first African, both in the male or female categories to compete in both the winter and summer Olympics. Ayako Itoof the International Olympic Committee (IOC), in a message noted that The Olympic Study Centre has confirmed that Seun Adigun is the first ever African athlete to compete in both Summer and Winter Olympic Games. It would be noted the African star athlete and bobsled driver is among the only two athletes to be so recognized at the Pyeongchang Winter Olympics. The second being of Pita Taufatofua of Tonga, a taekwondoistturned skier. Adigun and Taufatofua now join a list of elite Summer and Winter Olympians catalogued by online reference site, Wikipedia. Adigun who represented Nigeria in Athletics at the Summer Olympics

and Nigeria in Bobsleigh in 2018 at the Winter Olympics expressed her delight at being bestowed with such a prestigious accolade. With a strong support system of her management team, Lagosbased pan-African agency, Temple Management Company, she restates her commitment to African excellence. She said, “This is a real-life example of what it means to represent African excellence and a true testament to the fact that impossible is nothing. This milestone is truly a blessing”. Discussing her preparations for the 2012 Summer Games, Adigun remarked, “My preparations during athletics was driven by the desire to prove to myself that I was capable of competing with the best in the world in the women’s 100 meter hurdles. I wanted to look back on my career as a hurdler and know that despite any limitations or health obstacles, I genuinely gave all that I had to achieving the highest level of competition”. Adigun further disclosed how she prepared for the winter Games, “The preparations for the winter Games was different in the sense that my passion was driven by my self-less intentions to create positive representation for Nigerians and Africans, globally. That passion was accompanied by several thoughts of fear and anxiety, but it was overcome by God’s grace and the support of everyone who played a part in the journey, no matter how big or small”. Adigun added that she dedicated myself to creating a legacy that would inspire generations, eternally, and whatever accolades came along the way would be celebrated as blessings.

L-R: Content Marketing Manager, StarTimes Nigeria, Abosede Adewara; N1million prize winner, Oyegoke Sunday and a representative of National Lottery Regulatory Commission, Ibukunoluwa Bamidele during the cash prize presentation to Oyegoke at StarTimes Head office in Lagos.

StarTimes splashes more millions on subscribers … as competition jacks up prices

ore Nigerians have continued to benefit from the ongoing StarTimes millionaire promo, with N9 millio already given out to subscribers in the last 2 months. This is coming amid angry reactions to a recent price increment by other Pay TV providers in the country. So far, N9 million in cash have been given out to 9 lucky subscribers, 45 people have won 43-inch TV sets and 1 year free subscription dished out to 180 subscribers. Lagos based Vulcanizer and 43-year-old father of 5, Oyegoke Sunday, who won 1 million Naira expressed his joy at his emergence as a winner. According to him, he

had no dreams of ever winning such an amount from any company. While speaking emotionally to newsmen, he thanked the company for coming through for him and other Nigerians in such difficult times and promised to stay loyal as a customer. According to the company’s Public Relations Manager, Kunmi Balogun, “The promo will run for a total of 14 weeks. With 9 weeks down, 5 more lucky subscribers will take home N1,000,000 weekly until July 31, while 20 customers will get a brand new 43inch StarTimes TV set.” He added that “to qualify, existing subscribers are required to pay for 1 month subscription on any of

our bouquet while new subscribers who buy and activate new decoder are automatically entered for the draw.” So far, 180 subscribers have also been awarded 1 year free subscription with a total of 100 more to be picked to enjoy the free subscription in a weekly draw conducted under the supervision of the National Lottery Commission of Nigeria. StarTimes have continued to deepen its dominance in the Nigerian market with innovative moves while constantly adding engaging content in entertainment and sports, towards expanding its market share which have seen it grow its subscriber base exponentially.

BUSINESS DAY

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IMPACT INVESTING

Friday 13 July 2018

In Association With

Leveraging Pension funds for Impact Investing in Nigeria Innocent Unah & Abisinuola David-Olusa

f pension funds with their fund assets worth trillion of dollars invest a significant portion of this fund in impact investments, these funds would leave a huge footprint in terms of impact whilst generating consistent returns. Pension funds comprise a large pool of assets in the form of pension contributions made by pension contributors/employees. The custodians and managers of these large assets therefore have the ability to shape the impact investing space in Nigeria by increasing the scale of the market and influencing intermediaries such as the investment banks to design more social impact products that will create varieties for investors. Pension funds have for a long time played a crucial role in providing security for retired individuals. They also have the potential to unlock capital for entrepreneurs and businesses that are impact-driven. Globally, the largest pension funds have signed onto the Principles for Responsible Investment (PRI), a pact within which they have accumulated own trillions of dollars of assets under management; many institutional investors have also committed to integrate the environmental, social and governance (ESG) practices into their investment decision processes. As at 2017, the total assets of the global pension fund industry amounted to $41.3 trillion, a significant portion of which is deployed to productive use through impact investment products that yield sustainable returns. The National Bureau of Statistics recently reported that Nigeria’s pension fund assets increased by N428 billion to N7.94 trillion by the first quarter of 2018. However, a breakdown of the allocation showed that 69.50 per cent of these assets were invested in government securities, with only 0.10 per cent invested in green bonds. Existing impact-driven pension funds Global cases indicate the way that the Nigerian pension industry should go in terms of impact investment, with many impact-driven pension funds, some of which are examined below, already achieving desired results. Environment Agency Pension

Fund (EAPF) EAPF is a pension fund that serves the employees of the U.K. Environmental Agency and one of the largest local government pension schemes, with around £3.5 billion of assets. It is at the fore-front in ensuring sustainable investments and stewardship of which over a third of these funds are invested in companies that make positive contributions to ensuring a sustainable economy. Church Pension Fund (CPF) The Church Pension Fund (CPF) is a financial services organization in New York that serves the Episcopal Church has been actively involved in impact investing for nearly two

Pension fund trustees have a fiduciary obligation to their members as fund investment decisions must serve the interests of all beneficiaries

decades and possesses over $13.2 billion in assets under management. In 2018, the fund committed $1 billion to impact investments, of which $840 million is invested in all asset types. The fund has an asset allocation of 71.8 per cent equities and 28.2 per cent fixed income. For equities, 31.3 per cent were allocated to global equities, 14.1 per cent to specialized strategies, 14.9 per cent to private equity and 8.7 per cent, 2.8 per cent to real estate and real assets respectively for equities, 23.9 per cent to global bonds, 4.2 per cent on Treasury Inflation-Protected Securities (TIPS). CFS had annualized total returns of 6.6 per cent in the last 10 years with specific investments of $100 million, $369 million and $364 million in Environmentally Responsible Investments (sustainable forestry, clean technology and green buildings), economic targeted investments (microfinance-related initiatives, affordable housing, sustainable farming and urban redevelopment) and women or minority owned investments respectively. The fund has invested $17 million in a fund that provides loans to microfinance institutions, manufacturers and distribution companies in the off-grid solar sector in sub-Saharan Africa and South Asia. Impact investments in Africa are dominated by foreign investors; this goes to show the level of market confidence of impact investors in the continent, and that there are lots of impact investment opportunities

that can be tapped into by local investors. Allaying the fears of pension funds regarding Impact Investing A major reason for the resistance from pension trustees towards impact investing is lack of proper understanding of the concept. There is a misconception that there is always an imbalance between impact and a financial return as one has to be forfeited for the other. Considering that pension funds have a fiduciary responsibility to deliver investments with the best risk-adjusted returns, impact investing might not, on the face of it, look quite attractive to them. However, impact investing has made noteworthy progress in recent years, with ground-breaking and impactful strategies now available to deliver acceptable level of financial returns whilst having positive impact on society. A report published by Allenbridge in 2017, titled “Growing a Culture of Social Impact Investing in the UK”, emphasized the need for educational information around impact investing as 82 per cent of the pension trustees interviewed felt they lacked data on social impact investment while many fail to appreciate the potential diversification benefits of impact investing as many pension fund trustees seem to believe that ESG investing is a barrier to diversification which further leads to underperformance. According to the Law Commission, key barriers to social impact investment by pension funds are

structural and behavioural rather than legal as there are no regulatory barriers preventing pension funds from making social impact investments provided that they have good reason to think that scheme members share the concern and there is no risk of significant financial detriment to the fund. Arguably, it is the potential long term investment benefits that carry the greatest weight both in terms of risk reduction and, potentially, of outperformance. Pension fund trustees have a fiduciary obligation to their members as fund investment decisions must serve the interests of all beneficiaries. Fiduciary duty is the governance tool that aligns the interests of investors with beneficiaries, and ensures a sound decision-making process. Pension scheme trustees are being called upon to do more to engage scheme members with their pensions to help them connect with the social impacts of the investments being made on their behalf. The funds can invest directly in unlisted companies or utilities within agriculture, renewable energy, healthcare sectors for instance. They can also co-invest with other like-minded pension funds in projects aligned to their desired impact. Impact investors need to work with the pension funds to develop systems that evaluate prospective sectors for impact investment, and to link long-term financial performance to social and environmental considerations.

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NERC unveils plans to tackle liquidity gaps... Continued from page 1

prehensive plan to tackle liquidity gaps in the sector which includes auditing the books of operators and providing credit advance system to perenial debtors.

John Momoh, the vice chairman of NERC, who was represented by Olufunke Dinneh, general manager in charge of legal and licensing at the second edition of BusinessDay Future of Energy Conference, held in Lagos, yesterday said the Commission will carry out a forensic audit of the DisCos to determine their income as well as costs. “The Commission is carrying out a forensic audit of the discos in terms of what they really collect, spend and save. The commision carried out an open book review and discovered that it is imperative to actually carry out the forensic audit of the discos,” said the NERC official. The process will also include a study of the revenue management of the DisCos who settle as little of 15 percent of their market invoice. The audit will seek to determine what is the basic revenue baseline and the minimum they are allowed to remit and develop appropriate basis for appropriation and dis-

bursement of market funds. BusinessDay’s examination of the financial statements of some of the DisCos indicate that they are veering dangerously close to full blown bankruptcy with reported losses of over N196.23 billion to end the 2016 financial year. This compares with a loss of N104.69 billion they recorded the previous year. The commission is also setting up an Information Technology system that will monitor revenue collection in real time and also show how money is spent. Another aspect, the commission is proposing to make the eleciricty market financially viable is reviwing the tariff methodology which has been in place for 15 yers and should have seen 5 major reviews, non of which has happened. The Commission says it will revisit the methodology on which MYTO is placed to determine if it is the best way to go in terms of tariffs for the sector. NERC also said there is need to carry out customer enumeration which was stipulated in the MYTO 2015 to acertain the number of customers in a particular zone and estimate the amount of money that is expected to be made from the zone. “This is a sector that the discos

do not know the number of customers they have. The numbers that the commission has been given, are not reliable as such the discos have been given the instruction to carry out customer enumeration to determin the number of customer they have in a particular zone,” said Momoh. In order to resolve debt by govenrment ministeries and departments estimated to be about N27billion, NERC is proposing

two strategies: providing prepaid meters for all govenrment ministeries including the military as well as an advance credit system that allows govenrment ministeries to settle their electiricty debt after appropriation have been made and disbursed. The commission said henceforth, applications for licenses to generate power in the Nigeria will be procured through competitive bidding. The Commission said that it had issued over 100 licenses out of which 62 are for grid connected power but almost all w ere uns olicite d. This means that investors make proposals and regulators issue licences when they meet conditions without considering their capacity to utilise them.

Continues on wwwbusinessday online.com

Friday 13 July 2018

Ekiti shoot-out demonstrates executive... Continued from page 1

on Wednesday, as a demonstration of Executive recklessness and attempt to stifle opposition. The lawmakers expressed the concern during the heated debate on a motion titled: ‘Urgent need to intervene and save our democracy’, sponsored by Tajudeen Yusuf (PDP-Kogi), who condemned the action of the personnel of Nigeria Police during the rally. The rally was organised ahead of gubernatorial election slated for Saturday, 14th July, 2018. Worried by the ugly development, the House called on President Muhammadu Buhari to mandate Nigeria Police authorities to render apology to Nigerians. Some of the lawmakers who spoke in favour of the motion, including Omosede Igbinedon (PDP-Edo); Mike Adeniyi, Kingsley Chinda (PDP-River); Sunday Karimi (PDP-Kogi); Aminu Suleiman (APC-Kano) and Ali Isa Jesse (PDP-Gombe), condemned the action of the police. In his lead debate, Yusuf, who doubles as chairman, House committee on capital market and Institutions, expressed concern over the barricade of Ekiti State Government House in Ado Ekiti by Nigeria Police Force, few days to the gubernatorial election. He frowned at the deployment of heavily armed Policemen and other security agencies who locked up all entry points, preventing free movement of people into and out of Ekiti State Government House and shot sporadically with aim of instilling fear in the people, ahead of the forthcoming gubernatorial election. “Nigeria is a democratic state

and the complete take over and barricade of the Ekiti State Government House and violent assault on armless civilians, including a serving Governor of the State does not fall within the general duties of the Police under section 4 of the police Act and indeed the tents of true democracy and the rule of law. “The House is concerned that the above state of affairs playing out in Ekiti State clearly portends great danger for us, particularly, in view of the 2019 general elections and the heightened insecurity in the country,” he noted. In his remarks, Sunday Karimi, observed that the Ekiti election is a litmus test for INEC ahead of the 2019 general elections, adding that the action of the Police to foist APC on the people of Ekiti state was condemnable. Also speaking, Kingsley Chinda, chairman House Committee on Public Accounts argued that the Police action grossly undermined democracy. On his part, Mike Adeniyi (PDP-Ondo) alleged that what transpired in Ekiti State during the APC rally was executive recklessness and attempt by the ruling party to stifle the opposition. To this end, the House mandated all its relevant security related Standing committees to probe the crisis and report back within two weeks. Members of the Peoples Democratic Party (PDP) on Thursday stormed the National Assembly to register their grievances over the alleged attack on the Ekiti State Governor, Ayo Fayose by security operatives. Continues on wwwbusinessday online.com

Banks’ rising request from CBN lending... Continued from page 1

L-R: John Orchard, managing director, Euromoney; Ebele Ogbue, general manager, Energy Bank; Kennedy Uzoka, group managing director/CEO, United Bank for Africa plc, and Sir Geoff Hurst, 1966 England World Cup winner, at the Euromoney Award for Excellence where UBA Group was conferred with Africa’s Best Digital Bank in London.

Atiku parleys Reps’ PDP, R-APC lawmakers ahead... Continued from page 1

and Reformed All Progressive Congress (R-APC) and other stakeholders at the National Assembly complex, Abuja. Atiku at the meeting solicited for overwhelming support of the lawmakers who are automatic delegates at the forthcoming PDP presidential primary election. The meeting which was earlier scheduled for 9am was postphoned to 8pm for undisclosed reasons, BusinessDay reliably gathered. The lawmakers’ meeting with Atiku came barely 72 hours after the signing of Memorandum of Understanding (MoU) between PDP, R-APC, and 32 other political parties, which led to the formation of Coalition of United Political Parties (CUPP). BusinessDay had exclusively re-

ported that some ranking members of APC had during an investigative hearing into ‘All sums due to Niger Delta Development Commission (NDDC)’, chaired by Ahmed Chachangi (Kaduna), declared their membership of CUPP, barely 24 hours after the signing of the MoU, at the Musa Yar’Adua Centre, Abuja. The PDP caucus in the Lower Chamber was led by Chukwuma Onyema, acting Minority Leader in the House of Representatives. While addressing the lawmakers, Atiku who presented his Letter of Intent to lawmakers, also assured them of facilitating their return ticket in the forthcoming general election. Atiku in the letter of intent, solicited for the support of the lawmakers, saying the PDP must return to power to get Nigeria working again. The letter read in part: “After thorough consultations with my

families, major stakeholders within and outside the party including party stalwarts, traditional and religious leaders, various youths and women groups, the civil society and the private sector; I, Atiku Abubakar, wish to inform you about my aspiration for the exalted office of the President of Federal Republic of Nigerian under the flagship of Peoples Democratic Party (PDP). “As stipulated by the Party constitution and guidelines for nomination, it is mandatory that we go through the process of presidential party primary election. “It is in line with this that I wish to humbly solicit your votes during this all important process. “I am in no doubt that with your support, I will emerge victorious amongst other candidates at the forthcoming Presidential primary election. “Together, we can liberate, repair and refocus our country Nigeria. Together, we can put Nigeria back in the right pedestal. Together, we can get Nigeria working again,” Atiku said in the letter.

the actual daily requests ranged from N83.61 billion to N478.54 billion. Total interest earned was N21.13 billion. In comparison with the first half of 2016, SLF amounted to N42.55 billion in the 85 transaction days with a total of N2.92 billion earned as interests. SLF was utilized by the banks in order to enable them square up their positions after inter-bank market trading hours. “The rise in average daily request of deposit money banks from the Standing Lending Facility (SLF) window despite the fact that interbank call and OBB rates in April 2018 declined drastically to 3.34% and 2.96% respectively from 15.16% and 12.69% in March 2018 remains a concern,” said Robert Asogwa, MPC member in his statement following the last Monetary Policy Committee (MPC) meeting, which was released on Wednesday. “These are all early warning signs of future threats to stability in the banking industry and as such, any significant reduction of Monetary Policy Rate (MPR) at this time could even further weaken the solvency position of these deposit money banks.” The banking industry on aggregate is said to remain strong with increases in profitability, liquidity, total assets and total deposits.

The Deposit Money Banks’ Capital Adequacy Ratio (CAR) increased while the non- performing loans ratio which from CBN staff report had increased to about 16.21 percent in February 2018 declined to 14.15 percent in April 2018. In spite of some improvements in these financial soundness indicators, the banks’ have continued to borrow from the CBN’s discount window leading to a rise in their average daily request from the window. Ayodeji Ebo, managing director, Afrinvest Securities limited, said the increase in the level of Banks participation at the CBN discount window signifies higher needs of cash to meet short term obligations. “The rise in the level of takings/ borrowings at the Standing Lending Facility window may signify that some banks have very low liquidity levels, hence borrow to meet those obligations. Moreover, it may also signify a problem of Assets and Liabilities mismatch,” Ebo said. Asogwa said while inflation, output, interest rate and exchange rates at both the domestic and international levels may be key focus areas in shaping the monetary policy decision, there are significant downside risks with the potential to reverse any expected maximum impact of the monetary policy decision at last MPC meeting. These risks include mixed performance of banking sec-

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35 NEWS

BUSINESS DAY

Buhari urged to sign Disability Bill OWEDE AGBAJILEKE, Abuja

resident Muhammadu Buhari has been urged to sign the Disability Bill into law in view of its importance to people with disabilities. According to a non-governmental organisation, Juremi Foundation, assenting to the Bill will guarantee the rights and rehabilitation of over 25 million physically challenged Nigerians living with disabilities. Head, public relations at the Foundation, Aisha Abubakar, stated this at a press conference in Abuja, where she said the Foundation had scheduled July 21, for its disability awareness walk in Abuja, the nation’s capital. The walk, she said, will take off from Eagle Square to Unity Fountain, adding that it is not only meant to draw attention to the Bill but also to create awareness and sensitise the general public about the importance of creating equal opportunities for physically

challenged persons in the society. According to Abubakar, the walk tagged Juremi - Ability in Disability (J-AID Walk), is expected to attract over 5,000 individuals. She said: “As a foundation, we are in support of the Disability Bill. And that is the reason why we are trying to create more awareness, because this Bill is very important. There are discriminations taking place against people with disabilities. Some in their working place; they hardly cope because they are not disability friendly. Even in banks there are lots of places where people with disabilities have difficulties assessing such institutions. “And that is what Juremi Foundation is all about. And we are already partnering with people who are in the forefront of this Bill to see that Mr President signs this bill into law. We have to give people equal opportunities because they are also human beings. They are never lesser human beings.”

Madiba’s House targets 1m tweets to honour Mandela on birthday

adiba’s House, a non-profit organisation dedicated solely to promoting the leadership principles, philosophies and qualities of the late icon, Dr. Nelson Mandela, aims to spearhead one million tweets on July 18, 2018, in honour of the late icon. July 18, which happens to be Nelson Mandela International Day (or Mandela Day),

as declared by the United Nations since 2009, is a day set aside to honour the legacy of Nelson Mandela. Madiba’s House is targeting one million tweets on Mandela Day this year to acquaint people of the leadership qualities and principles of the late Nelson Mandela, especially the young people of Africa where there is a seeming dearth of leadership.

Youth and national development... Continued from back page

can-do nation. It is important that we encourage that spirit of creativity. The lessons of economic science make it abundantly clear that human capital is the driver of the new wealth of nations. The new endogenous growth theories pioneered by economists Robert Lucas at Chicago and his student Paul Romer – both of them Nobel laureates – place emphasis on human capital, technology, innovation, knowledge and creativity as the critical factor in creating the society of abundance. Sir Winston Churchill once prophesied that “the empires of the future will be the empires of the mind”. The great British wartime Prime Minister was prescient enough to foresee the knowledge revolution of our twenty-first century. In our day and age, natural resources alone are no longer a guarantee of wealth. In fact, they can prove to be more of a curse than a blessing. The nations that prosper today are those that deploy knowledge in harnessing and adding value to their natural resources for domestic as well as global markets. The greatest wealth of a nation is therefore

its people. Investing in our people and building a fair and equitable social order is crucial to our long-term economic success. And without science and innovation, the African people will never overcome their millennial servitude and the African Renaissance of our dreams will become a mere phantasmagoria. We must incentivise talent while building a merit-based society. In Brazil a Nobel laureate by statute is entitled to the same pension benefits as a former President. This sends the message that we do not all have to be politicians in order to achieve greatness. According to an ancient African proverb, “It’s the young trees that make up the forest.” We therefore welcome the “Not Too Young to Run” Act which was recently passed by the National Assembly and assented to by President Muhammadu Buhari. If care is not taken we run the risk of becoming a gerontocracy. We must therefore encourage young people of talent to take up politics as a vocation. Emmanuel Macron, who recently made a whirlwind visit to our country, was only 39 when he won elections as Presi-

L-R: Uche Olowu, president, CIBN; Peter Mulroy, secretary-general, Factor Chain International (FCI); Joseph Nnanna, deputy governor, CBN; Abba Bello, MD/CEO, Nexim Bank; Jones Onyereri, chairman, House Committee on Banking, and Kanayo Awani, MD, Intra-African Trade Initiatives, Afreximbank, during the NEXIM Factoring roundtable at the 25th Afreximbank annual general meeting. Pic by Tunde Adeniyi

Bill on State Police passes First Reading in Senate Bill for the amendment of the 1999 Constitution for the creation of state and community police on Thursday passed First Reading in the Senate. When passed into law, Nigeria will join the league of other nations like United States, United Kingdom, Spain, Mexico, India, Germany, Canada, Brazil, Australia, among others, with state police. This means states in Nigeria will have their own police distinct from federal police. There have been clamours for the creation of state police to tackle the rising spate of insecurity across the country.

However, some critics are opposed to the bill on the grounds that state police would be abused by state governors to witch-hunt perceived political enemies. The Bill titled ‘Constitution of the Federal Republic of Nigeria (Alteration) Bill, 2018’ is sponsored by the deputy Senate president, Ike Ekweremadu, and co-sponsored by 75 other senators. The development comes nine days after the Senate asked its Committee on Review of the 1999 Constitution to submit a bill on state police. The committee is chaired by Ekweremadu. During a debate last week, senators described the current centralisation of policing

in Nigeria as a colossal failure, and stressed the urgent need to amendtheConstitutiontoallow for state and community police. Speaking after the Bill passed First Reading on Thursday, Ekweremadu, who presided over the session, assured that the Senate would expedite action on the amendment bill. He said: “The Committee on Review of the 1999 Constitution has fulfilled its mandate. And now the Bill has been taken for the first time. I am sure that as soon as possible we will take the Second Reading and probably send it to public hearing through the Committee so that we fast-track it as directed by the Senate.”

dent of France, having been outdone only by Bonaparte who became Emperor at 33. Sebastian Kurz was recently elected Chancellor of Austria at age 31. Beating hands down is the eighteenth century British statesman William Pitt the Younger who succeeded his father as Prime Minister at the extraordinarily precocious age of 22. The teaching of history and civics is particularly important in imbuing love of country and patriotism among our young people. I do not know who advised our government to remove history from the school curriculum. I consider it to be the original sin. I am glad that the current administration has deemed it necessary to remedy the situation. I daresay that without knowledge of history, a people can never know where they are coming from, let alone where they are going. Nation building projects also need to be incorporated into our various youth policies and social development interventions. While the NYSC scheme was a great success in its heydays, I am no longer convinced it is still serving the original purpose. I advocate the Israeli model where every young man and woman of 18 is called up to active military service. Those crucial years

of military service give these young people a sense of patriotism, loyalty to the fatherland and commitment to service. When they enter university they tend to be more focused on their studies. And the friendships formed during military service are often carried into the marketplace in setting up some of the most successful companies that have given Israel worldwide fame as the “Start-up Nation”. Mentoring the young is also crucially important. Among the Swahili of East Africa, it is said that “What the elders see while sitting the young ones standing on their toes won’t see”. Within the Igbo artisanal industry, for example, mentoring has been carried to a very impressive level. We are always impressed to see a young Igbo mechanic being trained by an elder who takes him under his wings. After undergoing the necessary training and discipline, for perhaps 5 years, the apprentice is allowed to go and set up on his own. He is even given some capital for start-up. Unfortunately, this culture is not replicated in our leadership traditions. In Britain, for example, young politically ambitious men such as Tony Blair and Gordon Brown served their apprenticeships within the party bureaucracy and as parliamentary aides

or special assistants to ministers. In China they have an elaborate mentoring system right through the hierarchy of the Communist Party. To enhance the mentoring culture in Nigeria, those in positions of responsibility should make conscious efforts to identify young talents and invest in their future. The youth wings of political parties should be seen as a training ground and recruitment centres for young talents. Such talents abound in Nigeria and the fact that we are not mentoring them enough is regrettable. With the right calibre of leadership and the right policy choices we could create a US$1 trillion economy within the coming decade. Investing in infrastructures and human capital, particularly for the youth segment of our population, will be a key driver for growth and long-term prosperity. Education, health and wealth go together. Linking them to the foundations of peace, freedom and social justice will be the basis of our flourishing as a nation – a land of hope and glory. • Being the Text of a Lecture Delivered to the Lagos Business School Alumni Association Held at the CBN International Training Centre, Maitama, Abuja, Thursday 12 July.

OWEDE AGBAJILEKE, Abuja

The national healthcare... Continued from back page

jobs or services for everyone. It would have to promote, as well as regulate, the growth and efflorescence of private ideas and initiatives. On their part, the private healthcare sector, made up of doctors and nurses and pharmacists and laboratory scientists and other traditional members of the health team, but also now including ICT practitioners, banks and fund managers, health managers, actuarists and a gamut of other enablers, would need to hone their skills and teamwork to function efficiently, sustainably and profitably. Government must have realized by now, surely, that ‘Centre of Excellence’ was a statement of quality, verifiable by international quality accreditation, and not a title it could award to its teaching hospitals just because it had bought expensive equipment for them. What centres of excellence there were in Nigeria currently were entirely in private hands. Somehow these facilities, and the rash of new ones that were being built, would have to make income, as well as provide world class services accessible to all, including the most destitute Nigerians. Only a mandatory health insurance policy for the whole country could sustain that. It would take pollical boldness for any government to proclaim that, but it had to be done. The boldness to assume that, despite the many discouragements of the past, the people of Nigeria would, through the energy and innovation of their own citizens, get access to world class healthcare in short order was the brash notion that impelled activities such as these awards. It was certainly the reason why Jimi Coker’s fila was rakishly done to one side, and his shoes glittered with such life as he went up on the podium with his team to receive the Best Private Healthcare Facility award for Lagoon Hospitals. It was the reason why Wale Alabi, the man behind the awards, was looking so happy and confident about the future when he rose from his seat to take the microphone.

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Abuja Rail: FCTA to borrow $194m for 48 coaches … Buhari seeks proper maintenance of $830m Abuja light rail TONY AILEMEN & JAMES KWEN Abuja

o ensure effective service delivery by the Abuja Rail Mass Transit, the Federal Capital Territory Administration (FCTA) has concluded an infrastructure soft loan agreement with Exim Bank of China for the supply of 48 coaches, including their maintenance for three years at a cost of $194,008,602.43. Exim Bank would fund the project to the tune of $157,001,049.89 (85%), while FCTA would bring in a counterpart fund of $37,007,552.54 (15%). Muhammad Bello, minister of FCT, who said this Thursday during the official commissioning of the Abuja Rail Mass Transit Project, said FCTA had taken delivery of the three coaches meant for initial operations.

Bello also said the FCTA was working on phase ll of the Abuja Rail Mass Transit project to cover a distance of 32.54km from Nnamdi Azikwe Expressway at Garki Area l via the transportation Centre to Gwagwa and from Bazango Station to Kubwa. He said the Federal ExecutiveCouncilapprovedtheproject in 2017 for construction by CCECC at a cost of $1.3 billion and hoped that the minister of finance would consider putting this key project in the next borrowing plans. According to Bello, “the Minister of Budget and National Planning would agree to it, the National Assembly would approve it and that China Exim Bank would fund it as a mark of goodwill for the cordial relationship between our two countries.” He further said that, the rail tracks, signalling, stations and other infrastruc-

ture were completed six months ago and in line with international best practices, two months were spent testing the rail system without passengers and one month with passengers. “I am pleased to state that the Federal Ministry of Transportation after working closely with our team of Engineers, the Construction Company China Civil Engineering Construction Corporation (CCECC) and the project Consultants, Messrs Transurb Technirail Ltd has granted the Abuja Rail Mass Transit Project (ARMT) (Lot 3 & Lot 1A) Safety Certificate for Commercial Operations. “We have also worked and are working closely with the Nigerian Railway Corporation (NRC) in the implementation of the project and they have granted relevant approvals for operations,” the minister stated.

Dickson says Buhari’s stand on restructuring is faulty BOLADALE BAMIGBOLA, Osogbo

overnor of Bayelsa State, Seriake Dickson, on Thursday in Ile Ife, said those clamouring for restructuring of the country were the real patriots who mean well for Nigeria. He said the statement by President Mohammadu Buhari regarding those clamouring for restructuring, who the President said have parochial interest, was faulty. The governor stated this while delivering Faculty of Arts, Obafemi Awolowo University, Ile Ife, Distinguished Lecture with the theme: Restructuring and The Search For A Productive Nigeria. According to Dickson, Nigeria in her present shape is not working, adding that to

make the country workable, the solution lies in restructuring, which he claimed would enthrone true federalism, devolution of power from the centre to the federating units. Dickson added: “These will guarantee the stability, prosperity and peace of Nigeria. When everybody in this country is talking about the need to restructure the country, our President, Muhammadu Buhari made a statement that is not only wrong, but it is also faulty that cannot stand the test of time.” He further noted that President Buhari’s statement posed a threat to the continued stability, prosperity and development Nigeria. He continued: “And he didn’t stop there, he went ahead to say that those who

are in support of restructuring are doing so for parochial agenda. Mr. President, you are wrong. In fact the reverse is the case. The majority of Nigerians from the North, South, East, West and Middle Belt, who are making a case for restructuring, are indeed the patriots of Nigeria. “We want a Nigeria that works with equal citizenship. A Nigeria for the many as well as for the few; a Nigeria that we will be proud to call home any day, which we can proudly pledge allegiance to. “I don’t believe that a Presidential system is what this country needs; it is too expensive and wasteful. It easily lends itself to abuses and is not enough checks. We cannot have a productive Nigeria the way it is structured.

There is time to be part of Africa’s biggest clean-up - Shoprite

frica’s biggest cleanup powered by SHOPRITE brings together over 6,000 people across the continent to clean their communities in more than 500 different events. The retailer invites the public to join leading experts, thought leaders, the Lagos State Ministry of Environment, Lagos State Waste Management Authority (LAWMA), Wecyclers, Pick That Trash, Visionscape, Chanja Datti, Ecobaarter, Diamond Shine Nigeria, Sustainable Africa Waste Initiative, Kids Beach Garden, and a host of volunteers to be

part of this history-making event. Seyifumi Adebote, a team leader of Pick That Trash in Abuja, noted, “Due to increasing levels of waste in our environment it has become imperative for greater awareness of the importance of picking up and separating out waste to encourage a recycling culture in Africa.” In the same vein, head: Business Development of Wecyclers, Omobolanle Olowu, said, “We are joining the Shoprite team and other partners to clean up as many locations as possible so that people will realise there’s value in waste and clean up

their neighbourhoods.” To join one of the 45 cleanup events taking place across Nigeria from 14-18 July, register via the website www.actforchange.africa, which was specifically created for this purpose and is being managed by the Shoprite Group and volunteerism organisation Brownie Points. Outside of Nigeria, cleanups are taking place in 10 other African countries including South Africa, Namibia, Zambia and Madagascar. Shoprite is the leading retailer across Africa, with a large following of loyal customers.

A1 NEWS

BUSINESS DAY

Coalition of parties has no agenda to improve lives of Nigerians –Moghalu

ormer deputy governor of the Central Bank of Nigeria and presidential aspirant of the Young Progressive Party (YPP), Kingsley Moghalu, says the new Coalition of United Political Parties (CUPP) has no agenda to improve the lives of Nigeria, as it just represents name changes and new alliances that will not deliver what Nigeria needs. In a press statement, Moghalu said, “It is interesting to note the MOU signed yesterday by the PDP and over 30 other parties. On

the face of it, it is a legitimate move; after all, we are a democracy. However, we must be clear about what it represents: power for the sake of power, without any real agenda to improve the lives of Nigerians.” With a memorandum recently signed in Abuja, 38 political parties joined the People’s Democratic Party to create the coalition in order to present a single presidential candidate in next year’s election. “The question Nigerians must ask is this: How have the parties involved

changed? Has PDP purged itself of its bad actors that led to its downfall in the first place? Have these other parties demonstrated any true commitment to an open or transparent democracy?” Moghalu asked. According to Moghalu, Nigeria needs something new, bold and different to place the country on a sustainable path, emphasising that the current ruling party is a product of a similar merger consisting of many of the same elements that have now broken off to form yet another coalition to capture power.

NEWS

BUSINESS DAY

Abacha $350m loot: TUC disagrees with FG’s sharing option JOSHUA BASSEY

rganised labour under the auspices of Trade Union Congress (TUC) of Nigeria has disagreed with Federal Government’s decision to share $350 million Abacha loot, saying it is another way of “re-looting” the recovered funds. The Labour union says rather than share the money, the Federal Government should tie it to projects that will add to strengthen the economy and create opportunity for the majority of the citizens. The Federal Government plans to share recovered $350 million (an equivalent of N115bn) being funds stashed away in Switzerland by late Head of State, Sani Abacha, to an estimated 300,000 households, with each getting around $14 (around N5,000). “For us, this is unacceptable and can be termed another avenue to re-loot the loot. The recovered loot has to be tied to projects,” Bobboi Kaigama, TUC president,

said on Thursday. The union noted that in a country where most of the citizens lacked everything that makes life comfortable and worth-living, it was naïve to share cash as against putting such funds into developing infrastructure such as roads, modern rail system, hospitals and power that would be of benefit to the majority. “Our education has collapsed. The technical schools have gone into extinction likewise science and technology: These are critical areas that require adequate funding. Therefore, we say no to sharing. Government must tie the money to projects. This remains the only way it would have a significant impact on poverty alleviation and overall development of the country,” the union stated. Arguing further the TUC said: “We have an estimated population of 200 million and government wants to share $350 million: What is the formula for sharing?: By geographical zones?, Through state governors or by individual families?

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NPA to sanction shipping firms, terminal AMCON’s huge obligation of N4.8trn operators for not using holding bays must be recovered – Senate AMAKA ANAGOR-EWUZIE

igerian Ports Authority (NPA) has vowed to sanction shipping companies and terminal operators that fail to comply with the agreement they had with the authority to make use of holding bays in dropping of empty containers. A statement signed by Isah Suwaid, assistant general manager, corporate and strategic communications of NPA, stated that the agreement was reached in November 2017 between the shipping companies, terminal operators and the NPA. Suwaid said the agreement compelled all shipping companies and terminal operators to provide holding bays for their containers through the newly adopted call-up system. “The agreement was part of the resolutions adopted at the end of two meetings between the Hadiza Bala Usman, managing director of NPA, leadership of truck drivers and Maritime Workers Union in response to recent protests by trucks drivers at the Lagos Port

Complex (LPC) and TinCan Island Port (TCIP),” Suwaid said in the statement. BusinessDay understand that the meeting was based on getting amicable solution to issues around the operation of the callup system as part of the Authority’s Traffic Management Strategy, alleged extortion by security agencies and the utilisation of holding bays. According to Suwaid, Usman in another meeting held on Wednesday 11th July 2018, said that the Authority has launched an investigation into the level of compliance to the agreements reached between the authority, shipping companies and terminal operators, warning that any company found to have contravened the agreement will be sanctioned. On the newly adopted call-up system for trucks accessing the port, Usman explained that the Authority had consulted widely with all stakeholders before the introduction of the system. She added that the system has proved to be the most effective way of managing traffic in the Apapa axis till date.

hairman, Senate Committee on Banking, Insurance and other Financial Institutions, Rafiu Adebayo Ibrahim, says Nigeria can be made great again, if the legislature as a matter of urgency empowers the Asset Management Corporation of Nigeria (AMCON) to go after recalcitrant obligors. ThatistheonlywayAMCON can meet its mandate of achieving the tough directive for which it was set up in 2010, he said. Since AMCON over the past seven years have done its best to resolve these debts but are still encountering resistance from obligor, the Senate would have not option that to urge AMCON to compile and publish the list of all these debtors on major daily newspapers in the country, he said. The move, he argued, will place before Nigerians those who are holding the nation’s economy to ransom since they account for 80 percent of AMCON’s N4.8 trillion obligation. The senator, who spoke yesterday at the opening of a two-day retreat in Lagos where they convened to discuss the all-important AMCON Act Amendment Bill, said the Senate, as part of

its oversight function, has decided that AMCON at this critical time in its lifespan must be given all the support it requires to perform as expected by all Nigerians. He however urged the Management of AMCON to collaborate with the Federal Ministry of Finance (FMF), the Central Bank of Nigeria (CBN), and the office of the Attorney General of the Federation to propose that the President of the Federal Republic of Nigeria and Commanderin-Chief of the Armed Forces issues an Executive Order on seizure of assets of persons who are indebted to AMCON. In a keynote address he delivered at the commencement of the retreat, Sen. Ibrahim said the upper chamber is intent on having serious discussions as soon as possible with major stakeholders such as the CBN, the FMF, the Nigerian Deposit Insurance Corporation (NDIC) and relevant committees from the legislature among others, where issues hindering AMCON from performing optimally including the funding model of AMCON would be discussed to enable the recovery agency of the Federal Republic of Nigeria finish its assignment on a high.

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BUSINESS DAY

FINANCIAL TIMES The Cambridge Analytica scandal echoes the financial crisis

Donald Trump claims Nato allies have agreed to spending increase

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World Business Newspaper

Theresa May unveils plans for softer Brexit

UK white paper sets out proposals for ‘association agreement’ similar to that reached with Ukraine GEORGE PARKER AND JIM PICKARD

rime minister Theresa May on Thursday unveiled her proposals for the UK’s future relationship with the EU in a Brexit white paper that sets out plans for an “association agreement” of the kind recently agreed between Brussels and Ukraine. The white paper, which this week sparked the resignation of two Eurosceptic cabinet ministers, confirms that Mrs May is moving towards a softer form of Brexit, with Britain aiming to retain close economic ties with the EU. The 98-page document is meant to accelerate negotiations in Brussels so as to clinch a Brexit deal in the autumn. Mrs May said she wants talks to move “at pace”. While some European leaders have given a polite but guarded welcome to the proposals, the expectation in Brussels — and among Tory Eurosceptics — is that Mrs May will have to make more concessions to meet EU demands. Speaking at the Nato summit in Brussels on Thursday, US president Donald Trump said the UK was taking “a little bit of a different route”, adding “I don’t know if that’s what they voted for”. “I have been reading a lot about Brexit over the last couple of days and it seems to be turning a little bit differently where they are getting at least partially involved back with the European Union,” he said, before flying to London to begin a three-day visit to the UK. Meanwhile, the new Brexit secretary Dominic Raab dismissed complaints by Conservatives MPs about the soft Brexit plan thrashed out by the cabinet last Friday at Chequers, Mrs May’s country residence. Mr Raab, who succeeded David Davis after he resigned over the plan on Sunday, urged colleagues to abandon any attempts at “parliamentary riots and sabotage”. Boris Johnson, who quit as foreign secretary on

Monday in protest at the plan, is now plotting his next move from the Tory backbenches. The white paper, which is based on the Chequers deal, creates the framework for what Whitehall officials expect Brussels will call an “association agreement”— the type of deal struck by the EU with third countries including Ukraine and Georgia, and providing them with “privileged links” to the bloc. The document confirms that Britain would seek a “free trade area” with the EU for goods, coupled with a complex plan to keep Britain inside the bloc’s customs territory, to avoid “any friction at the border”, including Ireland. But the white paper also sets out proposals for a looser relationship between the UK and the EU on services, which represent 80 per cent of the British economy. This includes financial services, led by the City of London. The white paper says Britain would seek the “freedom to chart its own path” on services, but acknowledges that with regulatory autonomy would come a significant problem. “There will be more barriers to the UK’s access to the EU market than is the case today,” it adds. Michel Barnier, the EU’s chief Brexit negotiator, has previously warned Britain that it cannot seek single market-style access for goods while excluding itself from equivalent arrangements on services and the free movement of people. Other key features of the white paper include: A hint of a generous British approach to EU migration. The white paper says that tourists and people travelling for “temporary business activity” would be free to come to the UK without a visa. Confirmation that the government’s “facilitated customs arrangement” plan between the UK and the EU would be “phased in”. Officials said there could be a delay of 12 to 18 months after the end of the Brexit transition period in December 2020.

Trump knows Europe needs America more than America needs Europe The most lethal demagogue is one with a grasp of underlying reality

EDWARD LUCE

unch-drunk Europe would do well to study the fate of American liberals. The more Donald Trump denigrates Nato, the greater outrage he provokes in Europe. Moral certainty feels good. But it can bring on intellectual blindness. Time and again, Mr Trump’s domestic critics have chosen righteous indignation over analytic clarity. Women could never vote for Mr Trump, Democrats reassured themselves. Then a major-

ity of white women did. The US would never withdraw troops from Europe, says Brussels. Yet Mr Trump could do precisely that. Which side of the Atlantic would have the most to lose? Mr Trump knows more than his critics give him credit for. He invents his own facts. But he instinctively grasps other people’s bottom lines. Mr Trump’s portrayal of Nato is profoundly error-ridden. It is also fundamentally correct. On the first, America accounts Continues on page A4

Spare oil capacity to be ‘stretched to limit’, IEA warns Crude prices rally after steepest one-day fall in two years

DAVID SHEPPARD

he International Energy Agency warned on Thursday that spare oil production capacity risks being “stretched to the limit” as supply disruptions and US sanctions against Iran tighten the market. The Paris-based agency said that while there were signs the rally in oil prices may start to weigh on demand growth, for the moment the key risk is supply capacity, with moves by producers to raise output cutting into the thin buffer of reserve production. “Rising production from Middle East Gulf countries and Russia, welcome though it is, comes at the expense of the world’s spare capacity cushion, which might be stretched to the limit,” the IEA said in its monthly report. “This vulnerability currently underpins oil prices and seems likely to continue doing so. We see no sign

of higher production from elsewhere that might ease fears of market tightness,” it said. The IEA’s comments come as a host of outages, from Venezuela to Libya, have tightened markets and boosted oil prices to as high as $80 a barrel in recent weeks. That has led Saudi Arabia and other countries to lift output to make up the shortfall, partly under pressure from the US and other big oil consumers. While in the short-run that should stop markets tightening too quickly, it has left traders nervous about whether producers will be able to respond if a further supply outage hits. Oil prices tumbled on Wednesday, posting the biggest one-day fall in two years, with Libya’s export situation improving and fears of a trade war between the US and China growing. But traders maintain they still see significant risks of a supply gap materialising. Brent crude stabilised on Thurs-

day, rising 1.5 per cent to near $75 a barrel. “Based on current fundamentals (falling stocks, lack of capacity) and Iranian sanctions on the horizon, we see a bit of upside for Brent,” said Jack Allardyce at Cantor Fitzgerald Europe. The IEA said it saw only 2.1m barrels a day of quickly available spare capacity in three Opec members: Saudi Arabia, Kuwait and the United Arab Emirates. If Saudi Arabia increases output towards record levels of near 11m b/d this summer, as it has indicated, it would cut the kingdom’s spare capacity to “unprecedented” levels, the IEA said. Saudi Arabia is lifting output, in part, because of the reimposition of sanctions on Iran’s 2m b/d of oil exports that take effect from November. Estimates vary widely for how much Iranian oil the US will succeed in cutting, but the state department has said the aim is to drive them to “zero”.

Broadcom to buy CA Technologies for nearly $19bn Shares in software maker jumped 16% in after-hours trade ERIC PLATT, JAMES FONTANELLA-KHAN AND RICHARD WATERS

roadcom has announced it will buy CA Technologies for $18.9bn, the chipmaker’s first major takeover since it was blocked by US President Donald Trump from pursuing a bid for rival Qualcomm earlier this year. CA Technologies shareholders will receive $44.50 a share in the all-cash deal, an approximately 20 per cent premium to the software maker’s closing price of $37.21 a share on July 11. The transaction has already been approved by each company’s board of directors, Broadcom said on Wednesday. The deal marks a change in direction for the chip industry’s most active acquirer, taking it into the market for infrastructure software — the code that runs at the heart of corporate IT systems. Broadcom’s shares fell 5 per cent on the news, as investors worried about its deviation into a new market after honing

its dealmaking skills with a string of chip acquisitions. “Our job is to look at creating value relative to our other options,” said Tom Krause, chief financial officer. “This is just applying what we know to an adjacent market.” The deal will bring Broadcom a software company with solid cash flow but little growth. CA has been linked to a number of potential software mergers over the years, thanks to the reliable earnings thrown off by its legacy mainframe business, coming close at one point to combining with BMC. It produced $1.2bn of operating cash flow last year on revenues of $4.2bn. Broadcom does not plan to seek approval from the Committee on Foreign Investment in the United States (Cfius), the inter-agency government body that blocked its hostile approach for Qualcomm on national security grounds. The company earlier this year moved its corporate headquarters from Singapore to the US. While

the group was ultimately prevented from pursuing Qualcomm, its new headquarters in San Jose, California should exempt it from needing Cfius sign-off now. Broadcom is being advised by Deutsche Bank and Bank of America Merrill Lynch, while Qatalyst Partners are working with CA Technologies. Shares of CA surged 16 per cent in after-hours trading to $43.02 after the Wall Street Journal reported that the deal was imminent. Broadcom stock slipped 5 per cent to $231.21. CA still gets slightly more than half of its revenue from selling software used in mainframe computers, even though the heyday of mainframes passed more than 30 years ago. The business produced an operating profit margin of 64 per cent last year, a testament to the ability of business software companies like CA to milk old technologies for many years, thanks to the sunk costs that many customers have made in their systems.

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NATIONAL NEWS

FT Trump knows Europe needs America...

Rust spots emerge in US manufacturing surge

Continued from page A3

Midwest factories fear chilling effect of tariffs as revival gathers pace

for nothing like 70 per cent of Europe’s security budget. Its actual share, as the International Institute for Strategic Studies has set out, is a fraction of that. Five per cent of America’s defence budget goes directly on Europe. Nor is Europe “delinquent” on its obligations. Since pledging four years ago to meet the 2 per cent of GDP target within a decade, Europe’s Nato members have increased their spending by $87bn in real terms, which is more than double what the US spends annually on European security. So much for Mr Trump’s relationship with the facts. But quietly correcting Mr Trump — even shrieking it from the rooftops — will do nothing to change his mind. Technocracy cannot compete with diatribe. The most lethal demagogue is one who grasps an underlying reality. Mr Trump knows that Europe needs America more than America needs Europe. Every time Mr Trump meets a Nato partner, or listens to many of his advisers, he is told his actions are weakening US security. That is true. America’s power is magnified by alliances. Wrecking them reduces Washington’s global clout. But the bigger loser is Europe. Its survival depends on America’s guarantee. A resurgent Russia poses deep threats to Europe’s eastern borders, its internal cohesion and ultimately its prosperity. With America’s continued presence, Europe can rebuff Vladimir Putin’s probing. Without it, Europe would be dangerously exposed. Mr Trump needs no adviser to tell him that America’s position gives it greater room for complacency. The US is flanked by the world’s two largest oceans — the Atlantic and the Pacific. In Mexico and Canada, it also has two of the world’s most benign neighbours, even taking into account Mr Trump’s constant needling. Geography is Mr Trump’s bottom line. Yet Europe is doing its best imitation of Hillary Clinton. Like Mrs Clinton, Europe’s leaders believe that reason and public sentiment are on their side. Like her, they overestimate both. Mr Trump has shown that unreason — the constant repetition of caricature and lies — can alter public opinion. Worse, big shifts in worldview can be pulled off quickly. Two years ago, most Republicans believed firmly in Nato. Today just 40 per cent of Republican voters think America should remain a member of the transatlantic alliance. More than half of Republicans say that Mr Trump’s relationship with Mr Putin is a good thing for America. So much for the electorate’s wisdom. What about Europe’s voters? A year ago, Europe’s leaders could be forgiven for misjudging Mr Trump. There is no precedent for what he is doing. All his predecessors, including Barack Obama, called on America’s Nato partners to increase their defence spending. None of them would have dreamt of undermining European liberal democracy. Yet that is what Mr Trump is doing. On Monday, he travels to Helsinki to meet Mr Putin. He joins Viktor Orban, Hungary’s prime minister, and champion of “illiberal democracy”, and Matteo Salvini, Italy’s leading populist, in Mr Putin’s growing western fan club. The first time they met, which was almost exactly a year ago, Mr Trump agreed to set up a US-Russia task force on cyber security. That was like a chicken agreeing with the fox to patrol the night. Mr Trump’s advisers persuaded him to climb down. No one knows what the two leaders informally agreed.

PATTI WALDMEIR AND ED CROOKS

Donald Trump at the Nato summit on Thursday. ‘The numbers are going up like a rocket ship,’ he said, referring to alliance members’ commitments to defence spending © EPA

Donald Trump claims Nato allies have agreed to spending increase Macron and Merkel challenge president’s assertion about additional commitment DEMETRI SEVASTOPULO, MICHAEL PEEL AND ADAM SAMSON

onald Trump said fellow Nato leaders on Thursday had agreed to “substantially up” their commitment to defence spending although his assertion was swiftly challenged by his French and German counterparts. After a series of blistering attacks by the US president on members of the alliance over defence outlays, Mr Trump said there had been “substantial progress” on the second day of Nato summit in Brussels. He said leaders agreed to lift their spending to “levels they have never thought of before”. “The numbers are going up like a rocket ship,” Mr Trump said, hours after he wrote on Twitter that the allies should go further than their spending target of 2 per cent of gross domestic product on defence and should aim to reach 4 per cent. However, Mr Trump’s comments on spending appeared to be quickly contradicted by French President Emmanuel Macron, who said Nato allies had not agreed to spend more

than the existing target. “There is a communiqué that was published yesterday. It’s very detailed,” he said, according to the Associated Press. “It confirms the goal of 2 per cent by 2024. That’s all.” Angela Merkel, the German chancellor, acknowledged the need to address the issue, but indicated there had been no additional spending commitment. “We presented the current situation,” she said. “But considering the discussion among the European allies, not only the Americans, I think we need to ask ourselves consistently what more we can do.” Mr Trump played down suggestions that he had threatened to withdraw the US from Nato, saying the commitment to the decades-old military alliance remained “very strong”. When asked if he believed he could withdraw the US from the alliance without Congressional approval, he said: “I probably can but that’s unnecessary.” Only hours earlier, Mr Trump launched another stinging attack on Germany. “Presidents have been trying unsuccessfully for years to get Germany

and other rich NATO Nations to pay more toward their protection from Russia. They pay only a fraction of their cost. The U.S. pays tens of Billions of Dollars too much to subsidise Europe, and loses Big on Trade!” he wrote on Twitter. The US president had stunned leaders at the annual Nato summit on Wednesday by saying Germany was “captive” to Moscow because of its Russian gas imports, in televised remarks that he would have known would be widely broadcast. In early Thursday posts on Twitter, Mr Trump repeated his criticism that Nato was protecting its members from Russia while Germany was paying Moscow “billions of dollars” for gas imports. “Not acceptable!” he wrote. Nato members had played down tensions on Wednesday but the US president was widely condemned for the way he had attacked Germany in public. At a press conference, Jens Stoltenberg, Nato secretary-general, highlighted some of the issues that the alliance members had agreed. “For a quarter of a century, many of our countries have been cutting billions from their [defence] budgets, now they are adding billions,” he said.

Unilever shareholders warn on HQ move to Netherlands Top investor says leaving the FTSE 100 index could lead to forced selling of stock ATTRACTA MOONEY AND SCHEHERAZADE DANESHKHU

ne of Unilever’s biggest shareholders has warned of the forced selling of the consumer group’s shares as unrest grows among British investors over the decision to move its headquarters to the Netherlands. Unilever has embarked on a charm offensive among its UK shareholders, which have been alarmed by the likely ejection of the company from the FTSE 100 index that many use as a benchmark. The company has attempted to woo investors through a series of meetings ahead of a crucial vote on abandoning the company’s 89-year-old Anglo-Dutch structure. Nick Train, joint founder of Lindsell Train, a top-five shareholder with a 2.5 per cent Unilever stake, urged holders of Unilever’s UK-listed stock to “give serious consideration over the summer as to whether the proposal is in their interest”. His comments to the Financial Times highlight the tough battle Unilever faces in garnering

the required 75 per cent of UK shareholders to vote in favour of the move, alongside 50 per cent of Dutch shareholders. Unilever will seek a premium London listing but is expected to fail index compiler FTSE Russell’s liquidity criteria for FTSE 100 inclusion. Mr Train, whose investments tend to be long-term, warned of possible “inconveniences and increased risks for our clients” linked to the move, including the “likelihood that we will become forced sellers of the shares for some of our clients at a time and a price not of our choosing”. Three large shareholders said that the company had not given satisfactory responses to concerns during meetings. A top-10 shareholder, who has spoken with the board twice about the plans, said Unilever had been “almost belligerently unreceptive” to the concerns of British investors. “They showed no intent to listen to shareholders — almost the opposite. I don’t see how they are confident that will get it through [the vote passed]. I think they are in trouble.” “The vote is finely balanced. It’s

not a slam dunk,” said Samuel Johar, of Buchanan Harvey, a board advisory firm, who has spoken to several large shareholders. The vote on the move is due to take place before the end of September, and investors are waiting for a circular with more details about how the process of simplifying the two sets of shares will work. Unilever said: “Unilever will remain listed in London; and as we continue to engage extensively with our investors and shareholders, we remain very confident of the outcome of the vote on simplification.” Graeme Pitkethly, Unilever’s finance director, said last month that the company was “extremely” unlikely to stay in the UK’s FTSE 100 index were it to become a Dutch NV company. He acknowledged that ejection from the index — in which Unilever’s £123bn market value makes it the fourth-largest company — would have “negative implications for some investors that are benchmarked to it”. But he added that “simplification is the right thing for the company and our shareholders as a whole”.

hen Tesla rival SF Motors chose a place to manufacture its upmarket electric cars for the US market, it bypassed the US west coast and the manufacturing-friendly southern Sun Belt to head straight for the crossroads of the American Rust Belt. The area around South Bend, Indiana, which includes the town of Mishawaka where the Chinesebacked company will start making electric cars for sale next year, has had decades of practice manufacturing automobiles, and a skilled labour force that can be quickly trained to make the greener vehicles of the future. Workers in South Bend were making electric horseless carriages for the legendary US carmaker Studebaker back in 1902. That legacy of manufacturing skills, and the presence of physical infrastructure such as the old Humvee factory, gave the small Indiana town the edge with SF Motors, a privately held company whose largest investor is Chongqing-based Sokon, a Chinese sport utility and commercial vehicle maker. SF Motors has promised to invest at least $160m to equip an advanced factory on the site — hiring back most of the 330 workers who lost their jobs when the same plant closed last year — to create 467 jobs by 2020. That is less than half the roughly 1,000 employees who worked at the site in its heyday at the start of the 21st century when it made Humvees. But it is nearly 50 per cent more than worked there in recent years, when it made Mercedes SUVs. The plant’s revival is part of a trend that has put several Midwestern US states in the top tier for factory job gains in the US since the 2016 election of President Donald Trump, an avowed champion of American manufacturing. The strength of manufacturing job gains in states that include key battlegrounds for congressional elections in November is good news for Mr Trump’s Republican party. The biggest threat to that revival in the Midwest, however, is Mr Trump’s trade policy. Manufacturing jobs in Mishawaka plummeted after the financial crisis but since then factory job growth here has handily outpaced the US average. “They know how to build quality vehicles, we want those people working for us”, said Jason Wallace, marketing and branding director of SF Motors. “A lot of the skills that you need to make a quality vehicle and the partners that you need are still in the Midwest.” “Indiana: a state that works,” said SF’s founder and chief executive John Zhang, echoing the state’s motto, at a ceremony to celebrate the investment. “For us to build a plant from zero up is not that easy, it takes time. All the workers here are highly trained, and we have good support from the UAW [the United Auto Workers union], so we can build this plant to full capacity in a much shorter time”, he told the Financial Times in an on-site interview.

Friday 13 July 2018

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BUSINESS DAY

FINANCIAL TIMES

COMPANIES & MARKETS

@ FINANCIAL TIMES LIMITED

The Cambridge Analytica scandal echoes the financial crisis In both cases innovative geeks leapfrogged regulators and their creations were abused GILLIAN TETT

ay the words “Cambridge Analytica” to a western politician — or anyone clutching a smartphone — and they will probably wince. After all, this year some startling revelations have tumbled out about how that British consulting company harvested social media and consumer data to build manipulative political and business campaigns. This week Britain’s Information Commissioner’s Office imposed a record £500,000 fine on Facebook for letting Cambridge Analytica use an app to access up to 87m user profiles without permission. The ICO intends to bring criminal proceedings against Cambridge Analytica’s parent over its failure to deal properly with the regulator’s enforcement notice. It makes for lurid headlines: Cambridge Analytica did work for Donald Trump’s 2016 presidential campaign. Western intelligence groups say that Russia used social media to meddle in that election and the UK’s Brexit referendum. If you want to take a wider view of the underlying policy issues, ponder the parallels between this year’s data harvesting tale and the growth in the 2000s of financial innovations such as credit derivatives. The parallel might initially sound odd. Credit derivatives allow financiers to make bets about whether people, companies or countries will default on their debt. Data scientists at Cambridge Analytica amass consumer data to study (and manipulate) humans. Those tasks do not seem similar. But the parallel — and policy lesson — lies in how politicians handle innovation; or mishandle it. The idea of credit derivatives first cropped up in the late 20th century when some young(ish) financiers at places such as JPMorgan embarked on frenetic innovation. Most non-bankers had no idea what the whizz-kids were doing, or how their inventions might eventually change corporate and mortgage debt. For their part, the finance geeks were not hiding their innovations or being deliberately malicious; they told themselves (and others) that their inventions would improve the financial system, while also making them rich. But credit derivatives and other

financial innovations were widely ignored because they seemed so “nerdy” and mind-numbingly dull. Politicians and voters had no incentive to ask hard questions because they were enjoying the cheap mortgages and credit cards that the derivatives helped make possible. Regulators were largely toothless because the whizz kids were creating financial instruments that straddled national borders, regulatory silos and outdated laws. The power rested with the geeks until their innovations were abused in a way that contributed to a financial crisis. Fast forward to now. Did this saga involve a team of young(ish) geeks who felt intoxicated by the intellectual thrill of fast-paced innovation? Yes, although their new intellectual frontier was in data science, not finance. Did those geeks want to get rich? Definitely. As for regulation, the innovation in computer science, like that in finance, has jumped rapidly across national borders and around existing laws. Politicians and voters also failed to demand proper oversight. The world of big data seems as geeky and dull to outsiders now as derivatives did back then. Consumers like “free” internet services as much as they enjoyed cheap mortgages. No one wanted to think about the hidden costs. Maybe this will now change. The Facebook and Cambridge Analytica scandal has finally forced politicians to debate the risks of big data — just as the 2008 financial crisis sparked public scrutiny of finance. Regulators are belatedly crafting policy responses. Consumers are becoming (a little) more savvy about the cost of “free”. It is possible to hope that this political hand-wringing will eventually create a healthier world of data science, just as the 2008 financial crisis brought the banking system a (little more) under control. Innovation is a double-edged sword. Big data can be misused by unscrupulous politicians and businesses, just as derivatives can be dangerous in the hands of greedy or reckless financiers (mixing them with subprime mortgages was a very bad idea). But these abuses do not make the core idea of data science — or derivatives — “bad”; on the contrary, these advances can sometimes be very useful tools.

US stocks in recovery mode during early Thursday trade PETER WELLS

all Street was bouncing back in early trade on Thursday morning after an escalation in the trade war between the US and China jolted the market lower in the previous session. Investors also processed data this morning showing headline inflation in the US rose at its quickest pace in 6½ years, after a solid reading on wholesale inflation on Wednesday, which should keep pressure on the Federal Reserve to lift interest rates another two times in the remainder of 2018. Brent crude stabilised on Thursday after news that Libya’s state oil company would reopen four export terminals and ease a supply shortage sent prices almost 7 per cent lower yesterday and hammered shares of energy

companies. Brent was up 0.6 per cent this morning at $73.85 a barrel, while West Texas Intermediate was down 0.2 per cent at $70.27. The S&P 500 was up 0.4 per cent, as was the Nasdaq Composite. The Dow Jones Industrial Average, which saw the biggest decline among the trio of main gauges yesterday, was up 0.5 per cent. Today’s inflation data prompted a mild-sell-off in US Treasuries. The yield on the two-year Treasury, which is more sensitive to Federal Reserve policy expectations, was up 1.2 basis points to 2.59 per cent, while that on the benchmark 10-year was up 0.7 bps to 2.8529 per cent. Yields, which rise as bond prices fall, had not recouped Wednesday’s decline when investors sought refuge from the equity market sell-off in the relative safety of government debt.

Cambridge Analytica’s office in London. The innovation in computer science, like that in finance, has jumped rapidly across borders and around laws © Reuters

China developers may cut prices in tight funding Slowing sales and restrictive policy could mean firms will fight to avoid default

hinese developers may be forced to cut prices to avoid defaults as the government continues to restrict their financing channels. A wave of bond maturities in the onshore and offshore markets in the coming three years will test investor nerves as developers scramble to raise funds. An inventory fire sale would be an extreme but unavoidable option if more vulnerable borrowers find themselves unable to service their debt. Although the authorities may relax their policy stance in some areas to support a flagging economy, we do not think they will significantly relieve funding conditions in the real estate market, barring a major hit to growth. Investors are getting nervous. Developer share prices have plunged and the second quarter saw another sharp rise in the volume of their bonds with put options that are being exercised. Investors are choosing to sell back these bonds to issuers as business conditions deteriorate, and more are likely to do so. Bonds embedded with such options still account for about 45 per cent of the Rmb2.3tn ($344bn) in outstanding developer issuance onshore. Funding uncertainties are also reflected in shortening maturities. The average maturity of bonds sold offshore fell to 3.4 years in the first half of this year from 4.4 years last year and 4.7 years in 2016. Onshore, average maturities have shortened to just over four years from 4.7 years last year. Maturity pressures on offshore bonds are also set to peak from

next year through 2021. Offshore bonds present the greater credit risk because of the possibility of further renminbi weakness against the dollar. Investors in offshore bonds also lack the protection available in the mainland markets, where regulators still closely control the pace of defaults. Since 2014, there have been 145 bond defaults totalling Rmb100.5bn in issuance in the onshore market, starting with private solar cell firm Chaori Solar. But none of these onshore defaulters were property developers; the only failures in real estate have been in dollar-denominated bonds sold in Hong Kong, involving first Kaisa Group and then Glorious Property (on July 9, Moody’s Investors Service downgraded Wuzhou International Holdings, another mainland developer, saying it is expected to default on $300m in offshore bonds). The sudden weakening of the renminbi against the dollar in June highlighted the currency risk faced by developers, who sold about $32bn in bonds offshore in the first half of this year alone. The government, whose careful control of developer access to onshore and offshore financing markets depends on its policy bias towards China’s all-important housing market, has now moved to contain this risk. The National Development and Reform Commission, which approves offshore bond sales, recently warned of the risks associated with such issuance, saying funds raised should be used to service debt rather than

to finance new projects or replenish working capital. The agency denied reports that it is considering banning developers from selling offshore debt of less than one year. The offshore bond market accounts for a small proportion of developer financing, but it has been growing. Although the bulk of developer funding still comes from bank loans, the offshore market has helped offset the crackdown on shadow finance structures such as trust lending. Banks face more capital and deposit constraints as shadow loans are moved on to balance sheets. The authorities have relieved some of these strains by lowering the reserve requirement ratio, but made it clear that the extra funds are intended to meet policy goals such as increasing lending to small and micro-sized firms. Funding conditions are tightening even as housing sales remain under pressure from central government policy. Sales have been surprisingly robust but are cooling under the weight of reduced credit availability. Tighter financing conditions combined with slowing sales increase default risks among smaller developers and will hasten industry consolidation. Developers may decide to sell stakes in projects if they need to raise funding in a hurry, but prices could also be slashed. During a liquidity squeeze in 2011, Zhejiang-based developer China Calxon cut prices on some projects by as much as 50 per cent to raise funds.

Linde and Praxair near deal with CVC, Messer over Americas gas sale JAVIER ESPINOZA

ermany’s Linde and Praxair of the US are in advanced discussions to sell a large chunk of assets in the Americas to CVC and Messer, Linde said on Thursday. If agreed, the deal that would mark a crucial step in a disposal plan designed to secure approval from regulators for the $80bn transatlantic tie-up. Under the terms of the deal,

private equity house CVC and industrial group Messer would buy the majority of Linde’s gas assets in North America and some Linde and Praxair assets in South America, Munich-based Linde said in a statement. Linde said an agreement was still subject to the approval of the companies’ boards. But a source with direct knowledge of the deal said an agreement could be reached as early as the end of this week. The announcement follows an

agreement by Praxair to sell nearly $6bn worth of European assets to Japanese rival Taiyo Nippon Sanso, also a precondition for their merger. A combination of Linde and Praxair would create the world’s largest supplier of industrial gases. Carlyle had been previously seen as the frontrunner to acquire the North and South American assets. Last month the Washingtonbased buyout group was sued over the alleged theft of trade secrets to gain an illegal edge in the sale.

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Harvard Business School Mid-Year Party

arvard Business School Association of Nigeria (HBSAN), recently held its Mid-Year Party on Saturday, June 30, 2018, at 788 on the Sea Restaurant, Twin Waters, Lagos. It was a spectacular evening of food, drinks, networking, art and music which commenced at about 6:00pm and lasted well into the night. The party featured an Art Exhibition curated by Red Door Gallery, with art works from highly demanded con-

temporary Nigerian artists, and a live performance by Funbi, a Nigerian based R&B sensation and nominee at the 2018 Headies Music Award. The HBSAN Mid-Year Party fostered interactions among the attendees who were alumni of HBS, Chief Executives of large private sector organizations and members of Ivy league business schools. It provided a medium for the formation of new friendships and business relationships. The party was sponsored by the following organizations; Platinum Sponsors -

First City Monument Bank (FCMB), Stanbic IBTC, Silver Sponsor - Construction Kaiser Limited, Strategic Partner â&#x20AC;&#x201C; Lagos Global, while Business Day was the media partner. HBSAN is the HBS alumni group of Nigerians and resident non-Nigerians driven by a primary objective to provide members with resources, relationships and opportunities to enable them build and lead organizations that will create transformational impact in Nigeria and beyond.

Pictured below are some faces at the event:

L-R: Tunde Akiode, Founding Member VerifiNG, Kola Masha, MD Baban Gona and Doreo Partners, Collins Onuegbu, EVC Signal Alliance, and Ladi Balogun, CEO FCMB Group.

L-R: Segun Banwo, MD Mobil Producing Nigeria Unlimited, and Ladell Robbins, Vice President HBSAN and Capital Alliance Nigeria.

L-R: Kola Masha, MD Baban Gona and Doreo Partners, Lola Masha, Director Trust and Safety, OLX Group, Funlola Abe, Vice President, West African origination, BP, and Obafolajimi Otudeko, Lead, Financial Services, Honeywell Group Limited.

L-R: Chinomso Onuoha, Digital Services, BusinessDay, Collins Onuegbu, EVC Signal Alliance, Mohammed Oyibo, Chairman Ajamy Holding, Austin Avuru, CEO Seplat, Labi Williams, Head, Leveraged Finance and Debt Capital Market Nigeria, Rand Merchant Bank, and Ademola Adebise, Acting MD Wema Bank.

Friday 13 July 2018

Politics & Policy BUSINESS DAY

Friday 13 July 2018

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Ekiti election: Southwest PDP raises alarm over attack on Fayose

Condemnation trails police attack on Fayose as Udom sees threat to democracy

…Accuses APC of desperation, colluding with security forces INIOBONG IWOK

he Southwest V i c e C h a i rman of the People’s Democratic Party (PDP), Eddy Olafeso, has ra i s e d t h e a l a r m ov e r Wednesday’s alleged attack on the governor of Ekiti State, Ayodele Fayose, describing it as a rape on democracy and part of a plan by the ruling All P ro g re ss i ve s C o ng re ss (APC) to intimidate the people of Ekiti so it could manipulate the governorship election. Olafeso, who was speaking in a media briefing with journalists in Lagos yesterday, accused the APC of colluding with security forces in the country to perpetrate its plans to destabilise the state, while giving Nigerians a false impression that Ekiti State was in crisis. He urged Ekiti indigenes not to be intimidated by the plan of the APC, adding that the PDP was ready to protect the will of the people in the state. The PDP chieftain said the APC resorted to intimidating and harassment of the Ekiti indigenes people because it was obvious the party was not popular among the people, stressing that the PDP was aware of APC plans.

Ekiti State Governor, Ayodele Fayose on the ground after he was attacked.

“We all saw what happened in Ekiti State on Wednesday; it is a serious issue, the national chairman has alerted the state chapters of the party that we must be vigilant ; the APC is colluding with security forces. “Ekiti Sate governor was seriously manhandled by the police and the excuse we are getting is that they did that to prevent crisis in the state. It is on record that the Fayose government has maintained peace in the state; they are heating up the polity

and making it look as if we have amageddon in Ekiti State. “ It i s t h e A P C a n d their fascism government and they are doing this to cur tail the freedom of our people; to force themselves on our people even when they have not done well. Ekiti peole should not be scared we know they want to use the federal might to hijack power. We are ready to confront them whatever machinery they would put in place,”Olafeso said. Speaking further, Olafe-

so lamented the worsening security in the country which has led to killing of thousands of Nigerians, stressing that the country was presently experiencing its darkest period in history. “This is the darkest moment in Nigeria in the last three years. We have seen the desperation of the APC; our people are kille d daily, yesterday there were repor t that 40 people were killed in Taraba State while several villages were sacked,” Olafeso added.

ANIEFIOK UDONQUAK, Uyo

h e A kw a I b o m State Governor, Udom Emmanuel has condemned the reported police brutality on his Ekiti State counterpart, Governor Ayo Fayose, saying such actions portend grave danger to the sustenance of democracy in the country. Governor Emmanuel, the national coordinator of his party’s election team in Ekiti, said all the governors elected on the platform of the People’s Democratic Party (PDP) in the country view the action of the police as an abuse of the constitution of Nigeria. The Governor who expressed dissatisfaction with the occurrence during an interaction with reporters in Uyo enjoined Nigerians to rise in condemnation of the unprecedented police action. Emmanuel said the issue was not about Ekiti State but the entire Nigeria and the sustenance of the hard earned democratic governance in the country. The governor who asked some rhetorical questions pertaining to the ill treatment meted on Governor Fayose further stated that, “it is not about Fayose or Ekiti State, it is about everyone of us, if it can happen to Fayose, it means it can happen to anybody. We should not just look at Fayose today, we should not just look at Ekiti State, let us look at Nigeria. So

what is happening?” According to the Akwa Ib o m g ove rn o r, “ E le ctions will come and go, faces will come and go but Nigeria will remain. Let us not do something that will really bring down this country.” He charged electorate in Ekiti State not to be intimidated in the face of the challenge even as he advised security agencies to be civil in their dealings noting that the country belongs to every citizen. The Governor again appealed to the law enforcement agencies to abide by the law and further stated that, “this cannot happen in any civilised society where a sitting Governor with full immunity can be so abused publicly. It is a shame for the whole country, it is a shame to all of us.” G overnor Emmanuel said the PDP, being a law abiding and peaceful party, did not want to join issues but only interested in winning the election in a free and fair contest. He said the party was ready for this Saturday’s election and called on security agencies to allow the people the liberty to vote for candidates of their choice. The g overnor state d that the essence of getting power is to help everybody especially the poor and advised the Independent National Electoral Commission (INEC) not to be loyal to any single individual but to the constitution of Nigeria.

Edo PDP protests security personnel’s attack on Fayose Atiku harps on true democracy, good governance ...Demands peaceful, fair, free transparent election

IDRIS UMAR MOMOH, Benin

embers of the Edo State chapter of the People’s Democratic Party (PDP on Thursday staged a peaceful protest in reaction to the alleged attack on the governor of Ekiti State, Ayodele Fayose by security personnel. The party faithful, who were at the premises of the Edo State secretariat of the Nigeria Union of Journalists (NUJ), also marched to the headquarters of the state command of the Nigeria police to register their displeasure over the incident. The publicity secretary of the party, Chris Nehikhare, who led the protesters de-

scribed the attack on the sitting governor by the security agents as undemocratic and lack of respect for constituted authority. “PDP in Edo State condemn in strong terms attempt by security agents loyal to the ruling APC-led Federal Government to rig and write results for Saturday’s Ekiti State governorship election. Nigerians want a free and fair election and not war,” he said. Nehikhare, who said PDP was in solidarity with the good people of Ekiti State, particularly the People’s Democratic Party members also sympathise with Nigerians for having such a “despotic government” in power that has now turned state power to power of tyranny and that of terrorism.

The party, who vowed to resist any attempt to rig and write results in favour of a particular political party and its candidate, said the party as a family believes in the rule of law and wants a free, fair election and not war. While decrying the deployment of heavily armed security personnel including over 30,000 policemen to Ekiti State, he said that the motive behind the heavy security presence is to create unnecessary tension as well as to intimidate voters. He also lamented that in spite of the numbers of security personnel in the country, people are being killed on daily basis in states like Sokoto, Plateau, Taraba, among others.

ormer Vice President and frontline PDP presidential aspirant, Atiku Abubakar has said that his commitment to the promotion of democracy and good governance, is borne out of his belief that Nigeria must evolve through the ethos of participatory politics to be a competitive nation of the future. The former Vice President made this remarks in Lagos during the launch of a book titled ‘Fighting Lions’, authored by renowned journalist and politician, Dele Momodu. The launch of the book is in posthumous honour of the late winner of the June 12 presidential election,

MKO Abiola. Atiku, who was represented at the event by the former governorship candidate of the PDP in Lagos State, Jimi Agbaje similarly called on Nigerians from all walks of life to stand strong and be counted in the struggle to sustain democratic due diligence, rule of law and fundamental human rights because “those are the values that will strengthen the country in the future.” He paid tribute to Dele Momodu, for his courage and bravery in capturing and preserving contemporary history of our national socio-political activities for the benefit of generations unborn. Remarking on the deci-

sion of the author to commit his experiences with late MKO Abiola into a literature, Atiku notes that the title of the book, ‘Fighting Lions’ actually rings a bell and resonates with his entire political life, which has been fraught with ups and downs. “To be candid, some of us who have experienced the good and bad sides of politics must endeavour to put pen to paper and document our thoughts in order to add to the body of human knowledge. However, Nigerians should not despair in the face of oppression and intimidation. Rather, all must work together to defend the sacred tenets of democracy, equity and social justice,” he said.

BUSINESS DAY

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Friday 13 July 2018

BUSINESS DAY Highlight of the news reports on our digital platforms this week

Best five stories this week ‘I’ll declare intention to defect from APC soon’

Board of Directors, Pan African Towers Limited has announced the appointment of Wole Abu as the Chief Executive Officer of the company. The appointment, according to a statement takes effect July 1, 2018.

As mixed reaction trailed the formation of the Reformed All Progressives Congress (RAPC) from the All Progressives Congress, an aggrieved APC senator, Suleiman Hunkuyi, has disclosed that he would announce his decision to leave the governing party very soon.

More trouble for Buhari, APC, as nPDP, others form rAPC More trouble awaits President Muhammadu Buhari and the ruling All Progressives Congress (APC) ahead of the 2019 general election.

Qatar gives fans in Russia a taste of things to expect in 2022 FIFA World Cup The Supreme Committee for Delivery & Legacy (SC), the organisation responsible

Nigeria oil refinery, fertilizer IPO The largest indigenous industrial conglomerate in Sub-Saharan Africa Dangote group has announced plans to have an Initial Public Offering (IPO) listing of both its fertilizer and refinery plant. The IPO is the first of its kind in Nigeria and if successful could set the stage for other companies to test the market.

Pan African Towers appoints Nigerian CEO

For more visit our website at businessdayonline.com to catch up on full news stories.

POLL RESULTS: Poll question:Have you gotten your PVC? 44% say yes, they have gotten their PVC while 56% says they have not yet gotten their PVC.. Write us with your opinion at digital@ businessdayonline.com to let us know what your preference is.

Poll of the week

for delivering the infrastructure required for the 2022 FIFA World Cup Qatar, will be giving fans at the 2018 FIFA World Cup Russia a taste of things to come when the tournament heads to Qatar in a little over four years’ time – with a series of free

Video of the week

creative and interactive installations and events in Moscow and Saint Petersburg from 7th -15th July.

Dangote to make history with Tweet of the week

Cartoon of the week

BUSINESS DAY

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NEWS YOU CAN TRUST I FRIDAY 13 JULY 2018

Opinion Youth and national development

ccording to our National Youth Policy document 2001, youth are defined as anyone within the age range of 15 to 35. This departs from the universally accepted UN definition which specifies ages 15 to 24 as the ages of youth. I very much prefer the UN definition. Among the Igbo people, for example, when a boy hits 21, he is considered a man able to take his place among his agegrade and can sit in council with the umunna. In Jewish culture, a boy celebrates his Bar-Mitzvah at 13. At that age, he is considered to have attained the age of moral and spiritual responsibility. Several years ago, when I was a struggling young lecturer in the London University system, one of my most interesting students was a Jewish lad of 18; an orthodox Jew from Antwerp, Belgium. I shall call him Ya’acov. One day over launch he narrated to me his life-story. His father and uncles worked in the diamond business. After his Bar-Mitzvah at 13, he was taught the ropes of the business alongside Talmudic and formal schooling. Ya’acov revealed that he made his first million dollars when he was only sixteen. At

18 he got married and moved with his wife to London to pursue university studies. He often represented his father on the board of the global diamond conglomerate De Beers. He once took me on a drive around The City, to a large impressive building without a signboard. “Zees is De Beers”, he bellowed. At the end of his second semester Ya’acov came to see me in my office one afternoon, looking rather sombre. He informed me that he had taken the momentous decision to withdraw from university. I was alarmed. He was a bright and studious young man, with all the future before him. He explained to me that he had just landed a trading seat at Glencore, the Anglo-Swiss international commodity firm. He revealed that he would be able to earn in a week what the average graduate would earn in a year. I could not argue with him. What I shall never forget about Ya’acov was that at 18, he was well beyond his years in maturity. He had focus and energy and an extraordinary can-do spirit. He knew what he wanted in life. Typical of his people, you could never catch him idling away his time in socialising. It was from our friendship that I

always understood why Jews always seem to be in a hurry! When you consider the story of my young Jewish friend, you would understand why it’s absurd for a man of 35 to be addressed as a youth. It is a sad development these days that many young men at that age are still very much dependent on handouts from their parents. This may partly be attributable to the difficult times in which the youth find themselves in terms of dwindling job opportunities. But it is also a mindset problem. It is definitely not a situation that parents in this country should encourage. We are told that the Greek philosopher Diogenes used to go about with a lamp in broad daylight in the streets of his native Athens looking for honest men. Diogenes also taught that the foundation of every state is the education of its youth. Nigeria’s population currently stands at an estimated 198 million, of which young people are the overwhelming majority. Some 70 percent of our population comprises those within the ages of 1 to 24. Nigeria’s average life-expectancy is 53 years. By contrast, the average lifeexpectancy in the Japanese island of Okinawa is 100.

HumanAngle FEMI OLUGBILE Physician, psycho-profiler and essayist

n Friday June 25, the fifth edition of the premier Healthcare awards in Nigeria took place at the Eko Hotel and Suites, Victoria Island, Lagos. It was a ritzy occasion. The hall was gaily decorated. Elegant men and women sat around the white-draped tables or milled about networking. Some of the individuals and brand names were easily recognizable for anyone with any knowledge of medical practice in Nigeria. Jimi Coker – Medical Director of Lagoon Hospitals, was in black buba and sokoto, with a fila rakishly draped to one side. His black shoes shone in the reflected light. Sir Philip Atuehi, with his mane of grey hair, sat quietly beside his wife. A veritable institution in Nigerian health, who has continuously published Pharma News – from as far back as anyone could remember. Ngozi Onyia of Paelon Memorial Clinic, whose hospital had lately become the first in the country to scale the highest level of safecare quality standards. Pamela

For the vast majority of our people, the possibility frontiers of welfare have shrunk. Thanks to nihilistic violence, conflict and insecurity, life has become what the English political philosopher Thomas Hobbes characterised as the state of nature – “nasty, brutish and short”. The youth have borne the brunt of the structural violence that the majority suffer in terms of poverty, disease, social deprivation, disempowerment and marginalisation. School enrolment in Nigeria is still a low 57.6 percent. According to the UN, Nigeria’s Youth Development Index, a measure of youth benefitting from social development interventions, is at a mere 0.41, placing us at 140 out of 170 countries. More recently, the Global Slavery Index reports that some 875,500 of our young people are victims of modern day slavery. Modern day slavery includes things such as trafficking in children and young people, forced labour, forced prostitution, trafficking in human organs and so on. I am sure many of you have seen the gory images of young people drowning in rickety boats in the Mediterranean Sea. Many of those shipwrecks are Nigerians. Our youth face enormous

challenges. For one thing, our system offers them little hope and even fewer opportunities. The youth, by definition, are endowed with tremendous energy. That energy, psychologists tell us, must find an outlet one way or the other. If it cannot find outlet in creativity, it will find it in destructiveness. But find an outlet, it must. Our youths have been offered no reason to feel proud of their country. Most are scheming how to leave for so-called “greener pastures”. There are more Nigerian doctors currently practising abroad than in our country. Most of our youths have been brainwashed into believing that the streets of Europe and North America are paved with gold. Those of us who have lived abroad never tell them the other side of the story – of racism, fascism, neo-Nazism and discrimination in the West. We shield the fact of Global Apartheid from their consciousness to our common peril. Do not get me wrong. The Nigerian youth also have a lot going for them. Far from being “lazy”, they are among the most enterprising young people you can find anywhere. Some of our creative industries – from ICT to music, Nollywood and Kannywood

they were no longer content to be ‘local champions’ but wanted to play at the highest level in the world. A lofty ambition in a place where, often, everything that could go wrong was guaranteed at some time or other to go very wrong indeed. The dual anchors invited

deadpan expression how the President should have been invited to the occasion to see the best specialists in the land – how it was cheaper than going to spend weeks in London. There were serious issues at stake, despite the hilarious jokes and the good music, and the general bon vivant air. Nigerian health was in dire crisis and had been so for several years. Nigeria still lost still too many women in childbirth - the equivalent of a major plane crash every twenty fours. The rate of stunting in childgrowth was still increasing, and a distressingly large number of Nigerian children were still not living beyond their fifth birthday. As evidence of the lack of trust of the population in their healthcare facilities, citizens were spending one billion dollars every year to seek medical treatment abroad. On the surface there was not a lot to celebrate about Nigerian Healthcare. Looking deeper, it was clear that, while government might appear to be slow to action, the private sector was stepping up to the plate more and more to try to lay the groundwork for the health service the people desired and deserved. Among the people being honoured at the award ceremony were the icons of the industry, as well as younger, newer faces who had come on the scene and were making waves with

The national healthcare excellence awards 2018: Matters arising The boldness to assume that, despite the many discouragements of the past, the people of Nigeria would, through the energy and innovation of their own citizens, get access to world class healthcare in short order was the brash notion that impelled activities such as these awards Ajayi – who built Pathcare laboratories to a gold-standard brand in diagnostics over the years. Pathcare was rebranding now – to ‘SYNLAB’, a name that was yet to catch on in

the Nigerian space. It had a swagger to it (‘We do every test’ – they would say, matterof-factly). That she had taken Pathcare into an international partnership was evidence

THE NEW WEALTH OF NATIONS

a popular comedian onstage to warm up the audience with risqué jokes. He was very good – the comedian. He had everyone in stitches. He ended on a howler, saying with a

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

-- are driven by youths. I was astonished to find that youths in the Caribbean, South Africa, Kenya, Uganda, and even as far as the islands of the southern seas are wild about film stars such as Omotola Jelade and Genevieve Nnaji and about musical artistes such as Tiwa Savage and Tu-Face. They are a form of soft power for Nigeria. They have boosted our image as a creative and Continues on page 35

innovative inputs. As the evening wore on, some predictable victories were announced. Lagoon Hospitals won the Private Health Facility of the Year. HealthPlus won the retail Pharmacy of the year. Sir Atuehi’s PharmaNews won the Health Publisher of the Year. Dr. Onyia’s Paelon Memorial Clinic won the prize for Patient Safety. Smile 360 – a very visible presence in the social media – again won the Dental Facility of the year. There were some pleasant surprises. Harmony Advanced Diagnostic Centre, located in Ilorin, Kwara State, won the Radiology Service Provider of the Year. Aminu Kanu University Teaching Hospital won the Tertiary Hospital of the year. Some of the young brands with innovative solutionsiDokita, DoctorNow, Doctoora, Ampersand Logistics and their fellows, received recognition and fulsome praise. You reflected that an event such as this reiterated the fact Nigerians were hungry to keep pace with the world and were no longer content with using the Nigerian condition as excuse for an inferior healthcare. While Health was a social service, it was also a business. Government might be an enabler, but it could not really be expected to provide Continues on page 35

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

WOMEN’S HUB Friday 13 July 2018

BUSINESS DAY

Reviewing World Population Day WORKPLACE PALAVER

Laide isn’t falling for the threats, she knows better

UN Women admonish women on peacekeeping, security processes

MARY AKPOBOME

on marriage, work, life’s lessons and resplendently turning 50

EDITOR’S NOTE

n our cover this week is the amiable and gracious Mary Akpobome, who shares with us on various aspects of her life, especially on turning 50. Ufoma McDermott is saying that helping the youths to build their self-confidence will go a long way in helping to curb drug abuse. We also bring you a story on UN Women admonishing women on peacekeeping and security processes. July 11th was World Population Day and the theme for this year was: Family Planning is a Human Right. It makes an interesting read. In Workplace Palaver section, Laide isn’t falling for the threats, she knows better. Find out what that is all about. These and more we have for you this week. Enjoy

KEMI AJUMOBI kemi@businessdayonline.com

Graphics by David Ogar

BUSINESS DAY Fondly called Mummy Mary by many, often described as the Mother Theresa of our time. Beautiful, determined, intelligent, assiduous and benevolent are few words that best describes her. With 30 years experience in the banking sector, she is currently the Co-Founder of The Purple Girl Foundation. MARY AKPOBOME recently turned 50 and she shares with KEMI AJUMOBI on work, family, goals and more. In the beginning grew in Calabar, arguably then the most peaceful city in Nigeria. I’m from a family of 8, and with me being the last born for some time, then after many years came another child so I was pretty ‘spoilt’. As a little child, I wanted everything, but I also grew up very quickly. I spent a lot of time on the sport field, I loved to play basketball, I also played badminton and table tennis too so I related a lot with the adults. But when I lost my mum, then I grew up a little faster than I thought I would for my age and most certainly, I was having my way in a lot of situations but it was fun, there were a lot of children, family time was fun, I was going to the village for Christmas and there was a lot I looked forward to do during holidays. You could call us your ‘aje butter’ growing up. It was good. It was fun, it was a big family. What way has your earlier years helped influence you till date? What it has done is to enable me try to build a family structure that has a bond. Back then, as a family, from church, (today it isn’t yet a ritual, but it’s almost there) in a month at least, three times after church service, we would eat out. So we just go somewhere from church and enjoy. It’s really to try to build that family structure. It’s a little different now because back then, everybody lived at home. You only left home when you were going to the University. But now, it’s much different, the kids are leaving at the age of seven, at nine, to go into secondary school and generally just move on and out of the country.

Mother, wife, entrepreneur, banker, Founder. How are you able to mix all of this together and do it excellently well? Well, don’t know if I do it excellently well, I just know that I get up and I get going because I know that I have to get up and get going. If you have a purpose to fulfil, you stay on that path but the road to that path is from several arms. In the midst of that, you prioritize, you compartmentalize these different aspects of one’s life or my life as it were, and you do your best to give each as much attention as is required for you to be able to achieve what you want to achieve in that compartment. I can’t say it’s been easy, because it’s not easy to get up every day at about 5, 5.30am because by 7:30am, I ought to be at my desk. You have that positive burden because there are people who look up to you, there are people who are inspired by you, and there are people for whom your actions or otherwise are also shaping theirs. Basic skills of technical skills of being a banker, an entrepreneur, to some extent you can learn some of those things and apply them. Where I found that one needs to be able to put everything else together, goals beyond the skills, is where you need excellent, emotional intelligence. It’s where

MARY AKPOBOME on marriage, work, life’s lessons and resplendently turning 5 you need God’s grace, and I believe that I’ve had that in abundance going through these different areas of my life and trying to balance it. Balancing is just being able to look into those compartments and at the end of the day you tell yourself “I’ve done the best I could have done today in this compartment”. It’s really about you being truthful to yourself and telling yourself that you’ve done the best you could. Grace comes when you realize that you are not the most intelligent, you are not the most beautiful, you are not the most tactical, you are not the most of anything. But putting it together as a whole, it’s really not by what you’ve done, it is that there is help from above that you are able to do everything. What does turning fifty mean to you? When I turned 40 I thought to myself, ‘they say life begins at 40’ and all of that, but turning 50 means a lot. There are many significant decisions that I’m taking at this time, in these areas you’re talking about, decisions that are huge. At some point, I told myself that when I turn 50, I was going to take one year off everything and do nothing but go on a low budget trip and travel the world. Really if I think about it, I’ve just been working. So when I say I’m off on a holiday, I’m actually going shopping for the shoes and clothes we are going to wear for the next work when we come back. Back then, when I say holiday,

I’m like ‘ok let’s go to London and London means Oxford Street and back’. So, going forward, when I say I am going on a holiday, I’m actually going on a holiday. I’m going to learn to go to places and that includes, Obudu Cattle Ranch, even some places in Nigeria that I’m totally clueless about to open up my mind a bit more. The children are all grown. The little one is 10years old and will soon enter secondary school. So I’m going to have time to do what I want to do, to be what I want to be, to explore. I’ve got a swimming coach; I’m getting someone to teach me how to bake. I’m doing things that I didn’t have time to do. I just feel very excited that I’m just looking forward to opportunities that look really exciting. So this 50 is a big deal. What’s the greatest lesson life has taught you? Life has taught me many lessons. You can summarize it with one of my favourite quotes by Mother Theresa. That irrespective, do what you know is good, do what you know is right. That means, smile any way, laugh any way jump anyway…do whatever. Life has taught me that I should stay real to myself, that I should be kind to people, that I should be there for people, because people have been there for me. My own quote is that everybody, everyone that has come into my life has come for a reason and for a season. The season may be a day, a month, a year, a life time. But the reason, the purpose, whether pleasant or not, is to make me a better person. So it’s about me. You throw good

Friday 13 July 2018

WOMEN’S HUB

at me, it’s fine, you are there for the purpose of throwing good at me. You throw bad at me, it’s fine, you are there for the purpose of throwing bad at me. But At the end of the day, it is what I make out of it that matters, and there is always a lesson to learn in every situation, good or bad. When things go wrong, the first question I ask is ‘what did I do wrong?’ That’s not an easy question to ask, especially when you know the answer to the question. Mind you, you are not asking that question so that you can have a good answer, but you are asking so that you can find a lesson to learn in that situation so that, hopefully, if such situation presents itself at some point, then you would have hoped you’ve learnt from the past experience. There is a superior being, and He’s there. He sees, He watches. Without HIM, I’m nothing, I can do nothing. So I’ve learnt. If Maya Angelou says “still I rise”, I say “Yes, I rise because HE’s with me”. I’ve learnt over the years to fall forward. Sometimes you really just fall. I’ve fallen with a thud, I’ve fallen with a bang but I rise because I fall forward and HE’s always there to lift me up, to show me where I tripped. That way hopefully, you can avoid that road. I’ve learnt to just be me. I’ve learnt not to carry titles around. So you just see Mary. I’ve learnt that we are first human beings before we are anything. And I’ve learnt that indeed in the end, we’ll all die. What’s the big deal about the things you are making? Life is simple. Life is much simpler than we make it sound. It’s just being nice and kind to your neighbour and your neighbour can be anybody. You don’t know when that neighbour will be the one saving your roof. So just be kind and nice to people, be respectful to people, smile at people, be there for people as much as you can. Will you be taken for granted from time to time? Yes! Be kind anyway. I’ve learnt not to judge people. I’ve also learnt that there is a good in everyone, and you will get what you are looking for in people. Of all life’s possession, the greatest you have is your relationship with God first and secondly, people. What would you like to say to your younger self? To thyself be true. Know that every action you take, you take responsibility for it. Know that there are people in the world that God has placed along your path for you to be of help to, don’t miss that opportunity to fulfil that, knowing also that there are people that are kept for you, to help you. In everything it’s important that you put God first. Know that things may not go your way because your way may not be the right way. Know that in the end, you will see why certain things didn’t go your way. In the end, you will see why the way things went was how it was supposed to go in your favour. In the face of laughter, joy or pain, stay positive that at the end, good will come out of this. Be good to your brothers, and I don’t mean your blood brothers and sisters alone, but everybody along the way. As much as God puts resources in hands, bear in mind that it’s not about you. Stay simple, there is beauty in simplicity. Have respect for people, elderly, regulations, laws.

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With 30 years experience in the banking sector, what advice would you give to those who are there or who intend to go there? Banking is a knowledge based industry, and you can get customers literally eating out of your palms if you understand their business. They walk into your office because they want their problems solved. They walk into your office because they want an increase in their business; they walk into your office because they want to grow their businesses. When you understand their businesses, their sectors, then you understand how to add value to them which is where the knowledge comes in. Customer will stick to where they can get that extra commitment. An excellent spirit in everything that you do is being able to see through situations. Banking is a service industry. Survey has shown that among all the various ways customers use to decide who to bank with, the highest is service. So customers want the right service, at the right time. You make a promise of service to a customer; he also makes a promise of service to his customer. There is a cycle. So where that promise fails, you really don’t know the pack of cards that have failed along the line. Your reputation should be such that the customer is the one making an excuse on your behalf because you have consistently been what he has wanted –his financial adviser. You need to understand the power you have and be able to use that power for the good of the customer because if the customer is happy, everybody is happy. You also need to under that banking is a highly regulated industry. You have to be skilled and competent. You need to keep reminding yourself that you have a duty to the industry, the institution, the customer, yourself, to do things right. So you need the skill, and the knowledge that you require. Purple Girl Foundation Poverty remains the most important factor for determining whether a girl can access an education. Studies consistently

reinforce that girls who face multiple disadvantages such as low family income, living in remote or underserved locations, disability or belonging to a minority group are farthest behind in terms of access to and completion of education. The Purple Girl Foundation was borne out of a desire to provide opportunities for enhancing education for the girl-child amid these disadvantages. Our main emphasis is on providing educational support to female children from indigent families at the primary, secondary and tertiary levels. For the first three years, the Foundation will focus on female children from indigent families in Lagos, Delta and AkwaIbom states with an increased scope across Nigeria. What is it about your husband Alibaba that inspires you? We are simple people. We are pretty normal people. Yes he is popular in his own way. But I believe while together, he may bring what is actually a very serious side however, because he’s a comedian, some people think he’s unserious whereas in everything he says, even in the jokes, there is always a message he is passing across. I bring the very serious side in the years we have been together. I commend couples that operate in very high energy sectors because I know the requirement of those roles and responsibilities in those roles. But in our case, it is a bit of the obvious. While I have what is called a ‘hard job’, he has a ‘soft job’ even though he earns more than me. So when he brings that ‘unseriousness’ from his day, and I bring the seriousness from my day, we are able to balance out. We try to laugh over issues, we separate the things that are serious and deal with them. His name has opened doors for me in several ways. Obviously, that also comes with the burden of the fact that you cannot just go in quietly into a place and just leave quietly. In our relationship, we behave like 20 year olds. We understand each other. I have a lot of respect for him, his creativity, his giving heart, his intelligence, he believes in the Nigerian dream, the Nigerian youth. He is a good man, and a good person to be with.

BUSINESS DAY

Friday 13 July 2018

WOMEN’S HUB

Clarion Events West Africa Announces IGF Expo 2018

C Reviewing World Population Day

ccording to United Nations Population Fund (UNFPA), family planning is the information, means and methods that allow individuals to decide if and when to have children. July 11th is World Population Day and the theme for this year was- Family Planning is a Human Right. Women, youths and adolescents in Nigeria must be provided services that are accessible, available, and acceptable to prevent unplanned pregnancies most of which ends in procurement of unsafe abortion, one of the contributors to maternal deaths in the country. Akin Jimoh, programme Director at Development Communication Network’s asserts that “it is important to establish Youth Friendly Centres dedicated to providing sexual and reproductive health services that meet young people at

their point of need rather than resorting to practices that endangers their lives. These should operate based on elements of full, free, and informed choice with citizens having access to information on all methods of contraceptives (temporary and permanent) and also have the right to make decision about what service to uptake without coercion and barriers.” Family planning is a wise investment for national development though with a number of differentials in level of acceptance across the country, that needs to be further enhanced for the benefits of Nigerians. It is very important that government at all levels should ensure the availability of family planning commodities and consumables in order to advance access to a major means of addressing the country’s

larion Events West Africa recently announced the relaunch of one of her major portfolio brands, tagged IGF Expo 2018, formally known as Home Décor and Giftware; a foremost B-2-B trading platform for manufacturers and suppliers of Interiors, Gift and Fashion. Clarion Events are one of the world largest exhibition organisers responsible for over 30 market leading global portfolios of interi-

procurement professionals. According to Bunmi Aliyu, Event Manager IGF Expo, Clarion Events West Africa, ‘the event is a must-attend whether you’re on the look-out for design-led or mid-low price point interiors, furniture, textiles, coverings, gifts and objet or fashion and accessories. The IGF EXPO presents an exciting edition of trend-setting brands from around the globe including the Best of Made in Nigeria, many exclusive to the show. Hundreds of suppliers will bring their complete portfolios for specifiers, installers, hospitality, importers, wholesalers and Retail businesses to see, touch and feel in a showroom setting’.

population debacle. Government should realise that without contraceptive products there will not be a programme to save the lives of women, children and others who needs it. Government should be accountable for ensuring that the supply contraceptives products and consumables are available at the point of needs for every prospective user. All stakeholders need to collaborate in other to make up for the unmet needs among target groups which according to the World Health Organization (WHO) is high among adolescents, migrants, urban slum dwellers, refugees and women in postpartum period. Health workers have a key role to play in making reproductive and sexual health service available to those who need it. From when an adolescent walk through the door of a clinic, to when he/she leaves, the services provided, good or bad, might shape the future of such individual.

ors, gift and fashion exhibitions. IGF Expo, scheduled to hold from 13-15November, 2018 at the Landmark Event Centre; is Nigeria and West Africa’s most diverse interiors and gift trade show, offering 6 sectors full of retail inspiration, and opportunities for new brands, trend setting start-ups, the best of made in Nigeria and the biggest international brands to crack the Nigerian market, build strong relationships and take high value bulk orders from interior designers, architects, property developers, retailers, corporate gift buyers, importers, wholesalers, contract buyers and

Russell Hughes, Commercial Director, Clarion Events West Africa, in his words, affirmed that Nigeria has a lucrative growing fashion & apparel market with over $4 billion spent annually on importing textiles, clothing. It is the largest retail market in SubSaharan Africa worth $215 billon per annum. Clarion Events West Africa is a division of Clarion Events Limited based in the United Kingdom established since 1947 with capacities and expertise in producing over 180 innovation and market leading exhibitions annually; organised across 13global offices.

CMYK

Imposition Studio 5.1.1

Friday 13 July 2018

AGAINST ALL ODDS

Evi’s story of survival I

was involved in a serious road traffic accident. I don’t remember how it happened and I am grateful for that. The police told me that there was a pot hole on the side of the road which caught my front side wheel of my car and span me into opposite direction, where my car sadly hit another car at a combined speed of 100 mph. All I remember was waking up in the car and everything was in a very slow motion, in absolute quiet. No sense of smell or touch, just nothingness. Then the adrenaline kicked in and I had to drag myself out of the car because I could smell smoke. Still not knowing what had happened and where I was. The only thing I knew was that my legs weren’t working and that I did not want to burn. I was taken to St George’s Hospital, Major Trauma Centre. I remember being scared as I was in so much pain and dazed from all the painkiller drugs. There were lots of doctors, nurses, beeping noises, tubes, many questions thrown all in my direction, thousands of voices that didn’t make sense to me. I had no idea why I couldn’t feel my legs and what was wrong with me. It was a hard two months. All my dignity was gone. I became totally dependent on everyone around me. I had to learn to trust strangers very quickly. Their judgements, statements, advice and believe me it wasn’t always easy. But, on the other hand, I also had an amazing support from the wonderful therapy team, who helped with my rehab. The clinical nurse specialist, who was the right hand of my surgeon, always put a smile on my face. There was also the porter, the dinner lady and cleaning lady with her enormous enthusiasm for life. Meeting other patients and hearing their stories also helped and made me appreciate how lucky I was and that it could be worse, which became my daily mantra. All these people and their joined effort made me work twice as hard so their hard work wouldn’t be wasted. Two months down the line I went home. To be honest I was petrified to go. For me it meant leaving my “safety net’’, my ‘’new home’’ and the new friends I had made. I was leaving to go back home, which was at that time

OSARUGUEMWEN B. OGBEIDE

McDermott pushes strong self-esteem, flays security harassment as step to remedy DESMOND OKON

ollywood Superstar, Ufuoma McDermott advocated for a strong selfesteem as the first step in curbing drug abuse which has become prevalent in recent times, at the Goge Africa Foundation, GAF, recently held at the National theatre, Lagos. While she said that good self-esteem would enable youths stand against peer pressure, in the same breathe, she kicked against the tendency of harassing victims by security agencies charged with the responsibility to check drug abuse. Instead, she suggested that the law be made known to them as well as the dangers they expose themselves to by abusing drugs. “A whole lot of times, people become victims of drug abuse when they don’t have the self-esteem that they require to understand their abilities. Some feel that the reason why you can’t get the cool girl is because you are not a cool guy, and you need to take drugs to become the cool guy, and you believe that lie. You then begin to live a life that is not you because someone has convinced you that you need the introduction of something else to make your life what you want it to be. So peer pressure, poor self-esteem is most times the first loophole to drug

abuse” she said in an interview with Women’s Hub. According to her, “A lot of young people have access to these drugs and we cannot stop talking about it because there are still people who are into it. The minute we stop, I think we’re a failed society. We need to keep talking about it to make sure that all our children are secure, to make sure that our siblings, our wards are secure. Until then, it’s a long road.” While many have the tendency to blame a youth’s involvement in drugs on bad parenting, McDermott thinks differently. According to her; “If a child wants to do things away from the parents, he will. It won’t be fair for me to say it’s bad parenting that causes drug abuse. It may have a hand, but it’d be wrong to lay the blame on one person and say ‘This parent is bad that’s why his kid turned out like this’. I know parents who have done everything good in the books just to ensure their kids end up well, but somewhere along the line, an external influence could make you feel like you need this thing to feel good about yourself, to feel good about a situation. For some other people, it could be a situation they find themselves and

they feel like I need a substance to get my mind off this thing, anything to keep me busy. And it’s a downward spiral once you start.” She said the security agencies who should be curbing the menace should have the proper knowledge, tools, guidance to execute their duties effectively, and also tell both young women and men engaging in drugs abuse the right things. “Don’t just go out there and harass them because they might go home and not feel like they were in the wrong for carrying drugs, and think that the policeman was just being mean. When you call them into a corner, talk to them, show them the laws and let them know what they have done is wrong. Don’t just be aggressive and harassment them. Make sure that they leave you learning something,” she said “For the people who actually take these drugs, try and understand this is about you. You are the most important person in your life. If you mess up yourself, you’ve messed up your life completely and the sad thing is when you mess up yourself, you’ve left a vacuum that nobody can fill. So, you’ve robbed the earth of you,” she adds.

in the middle of nowhere, and where I lived with my ex-partner, so not the friendliest surrounding. I was not allowed to weight bare for 6 months and all I really wanted was to fly back home to my family but couldn’t. One month after being at home I hit rock bottom. The scariest thing is I did not see it coming, because that was not me. I am normally a positive person, the glass is full. The smallest tasks like getting to a bathroom in a wheelchair, or putting my washing on. Not even that, just to gather the clothes for washing was an enormous task. The pain and constant exhaustion all of sudden became my non-stop companion. I got involved in several patient engagement projects, hoping to help others with my experience and story. I found a new man in my life, who is incredibly patient and supportive and who doesn’t see my scars. I have great family and friends who helped me when I needed it most. I am alive thanks to amazing team of doctors, nurses, therapists, family and friends. I can never thank them enough. I will never forget the feeling of having a shower for the first time, going to the loo myself, my first step (which I cried and laughed about at the same time with happiness) the first time I could brush my hair with my right hand. I have learned to cherish my scars as they tell my story, I appreciate how much I’ve learned about myself and my own strength. And I hope the reader will know that it really does get better, with patience, courage, hard work and time.

UN Women admonish women on peacekeeping, security processes

DESMOND OKON

he United Nations Women, a subset of the United Nations Organisation dedicated to gender equality, and the empowerment of women, encouraged women to become active players in the peacekeeping and security processes. This was done in commemoration of International Day for the Elimination of Sexual Violence in Conflict, as it celebrated ten years since the adoption of the United Nations Security Council’s resolution 1820 in 2008, which classified the use of conflict-related sexual violence as an impediment to the restoration of international peace and security. Ground breaking advancements in the fight against conflict-related sexual

violence have been recorded; including successful prosecutions by national and international tribunals against perpetrators who appeared untouchable; legal and legislative reforms to enhance protection and ensure access to justice for survivors and witnesses; comprehensive sets of specialized services for survivors, including socioeconomic rehabilitation initiatives and reparations; codes of conduct for security forces to ensure sensitization and training on conflict-related sexual violence; and an overall global mindset that firmly renounces these crimes and supports the efforts of women and their organisations to eliminate them. However, globally, sexual vio-

lence continues to be used as a tactical, effective and cost-free strategy to terrorize communities and facilitate territorial, political and economic gains in the war field. For example, in the Democratic Republic of the Congo, sexual violence has spread to the once non-conflict affected provinces; in Myanmar, communities have been forced to flee due to gross human rights violations, including widespread sexual violence. UN Women stated that it is persisting to implement strategies to tackle sexual violence in conflict by supporting National Action Plans on Women Peace and Security as tools to promote women’s participation, leadership and protection

from gender-based violence and conflict-related sexual violence, and acting as the Secretariat of the Women, Peace and Security

Focal Points Network –an informal, cross-regional forum for more than 80 Member States and regional organisations to share best practices.

BUSINESS DAY

Friday 13 July 2018

WOMEN’S HUB

WORKPLACE PALAVER

Laide isn’t falling for the threats, she knows better KEMI AJUMOBI