BusinessDay 14 Aug 2020

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news you can trust I * *FRIDAY 14 AUGUST 2020 I vol. 19, no 628

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Naira devaluation stokes fees of Nigerian students abroad Endurance Okafor

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niversities abroad have not increased their annual tuition fees for 2020. That notwithstanding, new and continuing Nigerian students who will be resuming schools abroad for the September 2020/2021 academic session could be paying as much as an additional N2 million to complete their tuition fees on the back of the depreciation of the naira.

Nigeria’s persistent dollar scarcity, which has led to a further weakening of the naira, means that Nigerians travelling abroad for studies would not only be spending more on their tuition but on the cost of living.

Exacerbated by the outContinues on page 29

Inside

Rivers applies revenuebased financing model to grow tourism earnings P. 2 10 years after, Nigeria dumps National Identity Cards, opts for digital ID P. 2

Babatunde Fashola (2nd l), minister of works and housing; Abubakar Aliyu (l), minister of state in the ministry; Sam Egwu (2nd r), chairman, Senate Committee on Housing and Urban Development, and Mustapha Dawaki (r), chairman, House of Representatives Committee on Housing and Habitat, during the inauguration of the Executive Management Team of the Federal Housing Authority (FHA) at the Ministry of Works and Housing headquarters, Mabushi, Abuja, yesterday.

NDDC officials use private firm accounts to launder funds T Obinna Nwachukwu, Abuja

he last is yet to be heard about the deep rooted allegations of corruption at the Niger Delta Development Commission (NDDC).

It will be recalled that the National Assembly ad-hoc committee probing the activities of

Over N3.6bn diverted in one month 7 commercial banks under investigation

the NDDC Interim Management Committee (IMC) led by Kemebradikumo Pondei recently made shocking discoveries of how over N40 billion was fraudulently spent.

But fresh documents available to BusinessDay show that the issue of corruption in NDDC is more than imagined.

For instance, in May 2019 alone, a sum of N3,956,267,688.53

billion was siphoned from the NDDC account domiciled with the Central Bank of Nigeria (CBN) using private company Continues on page 30

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news

Poor sales squeeze FMCGs gross margin to 5-year low Favour Olarewaju

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he amount Nigerian fast-moving consumer goods (FMCGs) companies are retaining from each naira of sales as gross profit fell to its lowest in over five years in the first half of 2020, as declining sales and higher costs bite hard on profitability amid the COVID-19 pandemic.

Analysis of the average gross margin for Nestle Nigeria, Cadbury and Unilever, three big FMCGs listed on the Nigerian Stock Exchange (NSE), shows only N29 gross profit was made from ever y N100 sale in the first six months of 2020, the worst record in over half-a-decade. Last year the industry average was N31.

The trend among the FMCGs reflects the impact of a struggling economy and its weak consumer spending, a situation worsened by the Covid-19 pandemic.

“There has been no significant improvement in sales on the back of soft consumer demand because of declining per capita income (PCI) among consumers,” notes Gbolahan Ologunro, a research analyst at Lagos-based CSL

Stockbrokers.

Since Nigeria’s recession in 2016, the economy has expanded less than 2 percent on the average, below population growth of 2.6 percent. As many as four in 10 or 83 million Nigerians live on less than N376.5 per day or under $1 on 379/$, according to the latest poverty count by the National Bureau of Statistics (NBS).

This means average consumers in Nigeria have become poorer, causing weaker demand that is affecting companies that even have inelastic demand, analysts say.

Ologunro also recognises that this together with increasing competition has contributed pressure on sales volume for the firms.

Although revenue increased in some years for these companies, the average growth of revenue increase has been on a downward trend from 16.4 percent in the first half of 2016 to -9.7 percent in the first half of 2020.

Cost margin, a measure of cost pressure, has largely risen in the period too.

From 64 percent of sales comprising direct cost in 2016, the portion of direct costs has risen to 71 percent

Continues on page 29

10 years after, Nigeria dumps National Identity Cards, opts for digital ID Tony Ailemen, Abuja

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en years after the National Identity Management Commission (NIMC) began enrolment exercise for the issuance of National Identity Cards to Nigerians, the Federal Government says it is dumping the cards for a more reliable and fullproof digital means of identification in line with global best practices.

NIMC began enrolment exercise in September 2010 and started the issuance of a multipurpose card in 2013 for Nigerians aged 16 or who have lived in the country for two or more years. The ID card contains a National Identity Number, two photographs of the card holder, and a chip containing the biometric information of the holder.

But Isa Pantami, minister of communications and digital economy, announced on Thursday that Nigeria would no longer produce cards and that with the migration to digital ID, the country has gone global.

“The world has gone digital, so that card is no more.

Our priority now is digital ID, it will be attached to your database wherever you are,” Pantami said.

“So, if you can memorise it, wherever you go, that central database domiciled with NIMC will be able to provide the number and every of your data will be provided,” he said.

This was part of the report submitted to President Muhammadu Buhari by Committee on Citizen Data Management and Harmonisation headed by Rauf Aregbesola, minister of interior, in Abuja on Thursday.

The committee was set up on February 3, 2020, to, among others, review the status of Nigeria’s numerous citizen identification data, including biometrics, held by different ministries, departments and agencies, and propose strategies for the harmonisation of same.

This followed concerns raised by the United States, on the basis of which it imposed an immigrant visa restriction on Nigeria, alongside other African countries.

The committee was also

Continues on page 29 www.businessday.ng

L-R: Nsidibe Aideyan, secretary, Nigeria Bar Association Women Forum (NBAWF); Chinyere Okorocha, vice chairman; Oluyemisi Bamgbose, chairperson; Safiyat Balarabe, treasurer, and Ayotola Jagun, head, external relations committee/company secretary, OANDO, during the signing ceremony of a partnership between New York State Bar Association (NYSBA) and NBAWF in Lagos, yesterday.

Pic by Olawale Amoo

Rivers applies revenue-based financing model to grow tourism earnings OBINNA EMELIKE

… to over N100bn annually

n furtherance of efforts at diversifying the state’s economy away from oil, the Rivers State government, through its Tourism Development Agency (RSTDA), is targeting over N100 billion annual revenue from tourism receipts.

The ambitious revenue target, which could increase to trillions of naira in a few years, according to RSTDA, would be realised through revenue-based financing (RBF), an investment vehicle deployed by financial institutions (banks) to finance bankable marketplace commodities.

Speaking on the financing model, Yibo Koko, director-general/CEO, RSTDA, explains that the RSTDA revenue-based finance strategy would drive 10 commercial

banks to finance 10 tourism commodity marketplaces with N100 billion economic stimulus across a fouryear structured investment framework at a guaranteed 100 percent revenue rate of return.

“Revenue-based financing is not a loan or a grant. It is simply a marketplace fiscal instrument using shared revenue-partnerships to deploy strategic commodities with a high profitability profile for the investing partners,” Koko states.

Highlighting the abundant tourism potential across the state, the RSTDA boss notes that the top 10 culture and tourism commodities have been identified, chosen from the 23 local government areas in the state and would be presented to the commercial banks and partners in the

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project.

Aside the 10 top bankable commodities, RSTDA is also targeting 10 culture and tourism products per local government area for a guaranteed return on investment.

To ensure a smooth take off the project, the RSTDA is working with a team of tourism industry consultants to create arts and culture tourism – marketplace mobile app, called ‘Tourivarian’.

With the app in place, they will deploy 10 heritage tourism commodities across 50 weeks of mobile ‘tourivarian festivals to connect 2 million smart culture citizens in the state.

“This will generate in excess of N500 billion as tourism marketplace revenue,” Koko assures.

Speaking further on the rationale for the new focus

on growing tourism revenue or the ‘green economy,’ as it is called in the globally parlance, the RSTDA chief executive says the state is looking beyond oil and now giving attention to the green economy on the realisation that globally today - it is the knowledge capacity, not so much of natural resources that hold sway.

Again, he states that aside the huge decline in the investment in Nigeria’s crude oil production due to oil theft and insecurities as well as oil losing its relevance globally in a pandemic ridden era, the green economy presents viable economic diversification option for the state.

Moreover, he is convinced that revenue based financing is the most progressive economic stimulus

Continues on page 29

Low yield environment eludes small businesses Oluwafadekemi Areo

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hile the low interest rate environment in Nigeria’s debt market has been a boon for large corporates who are raising capital at cheaper rates compared with bank loans, micro and small businesses, which form the bulk of firms in the country, are left out.

Large corporates are leveraging low interest rate environment to issue commercial papers at single digits while micro and small businesses, which employ over 80 percent of Nigeria’s labour force, are largely shut out of the opportunity to raise capital at such low rates due to their small size and most times lack of a formal structure.

Commercial papers represent short-term debt in-

... as large corporates snub bank loans for cheap debt capital struments issued by large organisations to meet their financial obligations as well as cover short-term receivables within a short period of time, usually between 15 and 270 days.

Large corporates in Nigeria like MTN Nigeria, Guinness Nigeria plc and Dangote Cement are able to lower their finance costs by issuing commercial papers at relatively attractive rates to investors rather than borrowing at a higher cost from banks, according to Obinna Uzoma, chief economist at EUA Intelligence.

Uzoma states that as long as the ban placed by the Central Bank of Nigeria (CBN) on local corporates on participating in OMO auctions remains, there would always be an over-subscription in

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the treasury bills market, thereby keeping yields low.

Interest rates on Nigerian treasury bills have remained below 5 percent since last year, while the prime lending rate of commercial banks, the rate at which most large corporates borrow, is at about 15 percent.

Information gathered from FMDQ shows that large corporates in Nigeria as at August 7, 2020, have risen about N559.77 billion from commercial papers, which is about 103 percent higher than the N275.37 billion raised in March.

In March 2020, Dufil Prima Foods plc issued a 270-day commercial paper of N14.23 billion at an issue yield of 7.38 percent. Given the prevailing bank lending rate of 14.71 percent at the @Businessdayng

time, this would imply that Dufil was able to lower their borrowing costs by about 733 basis points by raising a commercial paper instead of borrowing at 14.71 percent.

MTN Nigeria in June issued a 270-days commercial paper of N80 billion at an issue yield of 5.95 percent, compared to the average prime lending rate of 15.65 percent during the same period. MTN was able to reduce their borrowing cost by 970 basis points. Guinness Nigeria also saved an interest expense of 650 basis points on their June commercial paper issue of N2.5 billion at an issue yield of 6.5 percent.

Omobola Adu, research analyst at Growth and Development Asset Management

Continues on page 29

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How FG, Lagos can resolve Ijegun-Egba tank farm crisis, says Sanwo-Olu JOSHUA BASSEY

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agos State governor, Babajide SanwoOlu, has explained what needs to be done in bringing a lasting solution to the lingering disagreement between owners of petroleum tank farms in Ijegun-Egba area of AmuwoOdofin and the residents of the host community.

The governor said all the Federal Government’s regulatory agencies operating in the area must stop working at cross purposes with the state’s agencies in addressing environmental degradation in the area.

He added that the tank farm owners and tanker drivers must also subscribe to operational regulations that limit the loading of tankers beyond their weight capacities.

Sanwo-Olu said the agitation by members of the host community for the relocation of the tank farms may be far from being over, if

stakeholders failed to come to discussion table and work collaboratively.

The governor spoke on Thursday at the State House, Marina, when he received members of the House of Repres entatives ad-ho c committee on relocation of tank farms constituted by the speaker, Femi Gbajabiamila with the mandate to investigate the matter and make recommendations.

The ad-hoc committee members, led by the chairman, Sergius Ogun, representing Esan North-East/ Esan South-East federal constituency of Edo State, had initially gone on a twoday inspection to Ijegun before sharing the findings with the governor.

Sanwo-Olu said the regeneration of Ijegun-Egba was as important to the community residents as smooth transportation of petroleum products was important to the tank farms’ owners. He said the nation could not afford to allow the host community’s agitation

to hinder the operations of the tank farms, which, he said, supply 45 percent of petroleum products consumed in the country.

“The Ijegun-Egba tank farms are strategic national assets created by the private sector to serve the whole country. Between 40 to 45 percent of the entire petroleum products that go across the country pass through that corridor. Even if it is to cater for our own need, we must take care of those assets, because they are like a strategic reserve for us as a nation,” he said.

Speaking on the committee’s finding, Ogun pointed to the inability of the Federal Government’s agencies to work collaboratively with the Lagos State government as part of the reasons the community’s agitation festered.

He promised that the house would prevail on the federal agencies to close ranks with stakeholders and bring about lasting solutions.

PenCom to launch RSA transfer window before end of the year Cynthia Egboboh, Abuja

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ubscribers to the Contributory Pension S cheme (CPS) can look to conveniently moving their Retirement Savings Account (RSA) from one Pension Fund Administrator (PFA) to another, as the National Pension Commission (PenCom) says it will be launching the RSA transfer window before the end of this year.

PenCom in a statement on Thursday said the transfer system is a robust electronic platform that would enable seamless RSA transfers and aid Pension Fund Administrators (PFAs) to submit RSA transfer re-

quests.

“The opening of the transfer window will facilitate full and equitable pension assets portability within the pension industry, enhance ethical competition amongst the PFAs and improve service delivery to RSA holders”.

“The commission is optimistic that all necessary preparations will take place to enable opening of the RSA transfer window by the end of the year”.

T h e c o m m i s s i o n e xplained that Section 13 of the Pension Reform Act, 2014, allows contributors to move their RSA through a transfer window from one PFA to another, provided

that it is not more than once in a year.

“The National Pension Commission has been working assiduously to actualise the provisions of Section 13 of the Pension Reform Act, 2014. Preparatory to the opening of the transfer window, the commission developed and deployed the Enhanced Contributor Registration System (ECRS) in September 2019”.

“The full deployment of the platform would, however, entail extensive training of the PFA’s relevant personnel and simulation of the processes, industrywide,” Pencom said in the statement.

Nova Merchant Bank plans medium, long term loan for 3 sectors Hope Moses-Ashike

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ova Merchant Bank Limited has disclosed plans to create medium to long-term loan for three sectors of the economy with growth opportunities. The sectors include agriculture, telecoms and healthcare.

The tenor of the loan will range between three and five years, Anya Duroha, managing director said during a virtual meeting on Monday.

The bank last month

made market debut with N10 billion bond issue, which was over-subscribed by 300 percent.

Duroha explained that the bank planned to raise N10 billion but realised over N31 billion. The bond issuance is aimed at putting the business on firm footing to achieve its short-term and long-term goals.

“As part of Nova’s strategy, we knew that as a merchant bank with an objective to do developmental financing, we needed to get long term funds to fund www.businessday.ng

long term assets. That was why we went to the capital market to raise funds to finance long term loans for our customers,” he said.

The financial institution has weathered the storm brought by Covid-19 pandemic leveraging technology.

Duroha said in the last three years the bank has done well, with earnings growing from about N1.2 billion in 2017 to about N5.8 billion in 2019, with profitability also on the upswing. https://www.facebook.com/businessdayng

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comment I miss my mum – it has been ten years

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Tales from the main road

Eugenia Abu

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was lying on the couch in my home trying to catch some sleep when my elder sister Architect Eucharia Alozie called. The jarring noise of my ring tone got me awake. I had picked without looking at the screen punching the answer call button as we often do when we are startled. I was in a daze but recognised my sister’s voice. I could not make out most of what she was saying but I remember that the sentences running into each other had a discerning re-occurrence.

She repeatedly said Mama, it is Mama and then would go into words I could not understand. As my heart raced past me, I jumped up from the couch, grabbed a scarf and ran into the car.

Something was terribly wrong. I was on my way to the National hospital where my mum lay ill, where we all took turns to watch over her. I had been there the night before and only came home to freshen up. My sister was inconsolable and my mum lay very still on the hospital bed as the nurses were busy preparing her for where only those who have gone before us are kept. I could not find my voice. My voice chord shrank and my world shattered. It was April 4th ten years ago.

My mum, the elegant and very deeply respected Josephine Awawu Amodu, nurse, midwife, hospital ma-

tron, hospital administrator was my friend. She was the quintessential mum who would sacrifice the very clothes on her back for you. I could call her about anything, and I mean anything at all. I find it difficult to understand the new generation who are highly secretive and do not trust their parents. My mum was my senior special adviser and she could fix anything, from one of the most delicious meals in the world to a knotty problem. Mrs Amodu had a girlish laughter when she was deeply amused and would throw her head back and guffaw. She also had the most infectious laughter.

So, if she was amused by something, it’s most likely that there will be a chain reaction and everyone around her will fall about laughing. She also had an amazing sense of humour and made everything light with a bowl of pepper soup and her pernickety ways of fixing a gourmet meal when you were visiting. You became the centre of her world. Many of our talks were held in the kitchen. My mum loved to cook, and was often in the kitchen, a disease she has bequeathed to all her children.

Food, community, a broth, a well sautéed chicken wing could always make a problem go away, at least temporarily, until you could all sit after a good meal and talk about it.

Today I remember my mum as if it were yesterday. Ten years is a long time but I speak about her every so often.

And this was mostly unconscious until a friend of mine told me one day,” you are always talking about your mother, you really must capture all her nuggets in a book.” Hopefully one day.

My mum, wise and kind would often regale us with anecdotes, tales and stories that would position the lesson in an unforgettable way. There were always lessons in a story. She was patient and

a good listener and would often give and give until she had nothing of her own left. An only child of her Mum in a polygamous home where there was little or no animosity. She was tall like her father, the much-admired merchant of note, Alhaji Lani Boyi and warm like her mother, Mariamo Lani Boyi. In her nurse’s uniform, white and well suited for her frame, my mum would remind us that everyone must love what they do. She was always giving medical advice and tending to the sick, friends, family and strangers alike till she died.

Mrs Amodu was also an incredible marriage counsellor, visiting homes where there was strife and calling for patience. She told me almost every day that marriage is about patience not pride and each partner in the relationship must bring their quota of patience to the table. “You see, you all come from different backgrounds,” she would say, “socialised differently and must both be very patient with one another. Also remember, patience is not a one-way street, not one person being patient and the other being brash. Patience must be an attribute of both of you for marriage to work. You must learn to forgive each other.” A bankable advice.

My parents were wonderful together. Even when they disagreed, you could never tell as they managed it well. She was the epitome of intertribal marriage, an early apostle and became a beacon for both her people and her husbands, bringing them together as only she could. It is to her credit that people cannot tell whether I am Ebira or Igala. I am the latter but I speak both languages fairly well and several other languages, a gift from my mother.

One day, my mum told me the story of one of my father’s friends whom she did not like. “He was always coming to take your father out. And he looked

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I miss my mum.

She was my greatest fan but was also the greatest fan of all her children. She worried in eight different places as there were eight of us. And was a doting grandmother whose stories for grandchildren were epic

like a mean person.” My father was a gentleman and she did not want him around mean people. As they left one fine afternoon, she tucked some new naira notes in my father’s pocket in the full view of his friend and fetched a hair brush to make him look dapper.

“Okay, you look nice now. Enjoy.” When my father’s friend got home, he took it out on his wife. “Always complaining, go and see Mrs Amodu, the way she treats her husband when he is going out. You, always nagging.” In the end, the friendship waned. She chased him away with too much love for my father, it was unbearable. It was pretty hilarious.

I have so many stories about my mother, that if God wills it, I might just be lucky to write that book that has called my name for ten years.

I miss my mum. She was my greatest fan but was also the greatest fan of all her children. She worried in eight different places as there were eight of us.

And was a doting grandmother whose stories for grandchildren were epic. And when my Dad died and then my sister, she found it very difficult to cope.

Mrs Amodu made me the woman I am today. She was tough, you could not mess with her, but she was also kind and that formed us. I miss her stories, her wisdom, her advice, her strength of character and that meal that made all your problems go away. But we know where our loved ones go.

I celebrate my mum today, her legacy, her gifts and values of family, honesty, kindness, empathy, faith, integrity and charity. May her gentle soul continue to rest in peace, Amen.

Eugenia Abu is a broadcaster, writer, trainer, brand and multimedia strategy expert and media consultant.

Email: abu_eugenia@yahoo.com Phone number: 08033109820

Idiomatic expressions and their Nigerian variants

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n idiomatic expression or idiom, for short, comprises a group of words in a fixed order, whose meaning is different from the meanings of each word.

In that connection, this week’s treatise seeks to juxtapose these fixed expressions in standard English language with their Nigerian variants.

To err on the side of caution, it is strategically vital to affirm that, although the Nigerian variants have become ubiquitous in our climes, you ought to acquire mastery of their standard and globally acceptable counterparts. Without question, these standard renditions will prove instrumental in engaging audiences that consist of native-speakers only, second-language users only or an impressive admixture of both categories.

To start with, you should bear in mind that the idiom with which one implies that people attempt to enjoy the advantages of something without being confronted by its drawbacks is “to have one’s cake and eat it,” as opposed to the predominant variant: “to eat one’s cake and have it”. Also, have you once or often acknowledged that “beggars have no choice”? If that is the case, it may interest you to know that this is expressed more appropriately as “beggars can’t be choosers”.

Presumably, as well, it might have been said within your hearing that ‘the devil you know is better than the angel you don’t know’. So long as my presumption is not wide of the mark, be reliably informed that the inclusion of ‘angel’ in that idiom is largely born out of people’s spiritual inclination. As such, the idiom is conclusively rendered thus: “better the devil

you know than the devil you don’t”. Further to this, when you discuss two perspectives that can rationalise a situation or circumstance, it is correctly branded as “two sides of the same coin” — not “two sides of a coin”.

Another noteworthy instance is the declaration that somebody “woke up on the wrong side of the bed”, when people intend to admit that someone is in a melancholy mood. If the truth be known, such dejected people are appropriately said to have “got out of bed on the wrong side”. On top of that, “James is determined to secure that contract by hook or by crook” — not “...by hook or crook”.

Besides, as responsible citizens, you shouldn’t be a law unto yourselves. In other words, you shouldn’t “take the law into your own hands”. On this evidence, you are highly likely to hear some people incorrectly say, “... take the laws into your hands”. Crucially, too, one is supposed to assert that “you have got another think (not ‘another thing’) coming”, when one has resolved to admonish an individual to ditch his/her plans or sentiments for something else.

Pursuant to the aforementioned reflections, until Nigerian English is made to serve official purposes in Nigeria, through its recognition in the National Policy on Education, Nigerians must have it engraved on their minds that idioms such as “what is good for the goose is good for the gander”, “on a platter of gold”, “in the twinkle of an eye”, “one man’s food is another man’s poison”, “bite the finger that feeds you”, “from frying pan to fire”, and “actions speak louder than voice” should be correctly porwww.businessday.ng

trayed as “what is sauce for the goose is sauce for the gander”, “on a (silver) platter”, “in the twinkling of an eye”, “one man’s meat is another man’s poison”, “bite the hand that feeds you”, “out of the frying pan into the fire” and “actions speak louder than words”, respectively.

Likewise, do not forget that “the proof (not ‘the taste’) of the pudding is in the eating” and “He who pays (not ‘plays’) the piper calls (not ‘dictates’) the tune.”

In equal measure, “green snake under the green grass” is aptly depicted as “a snake in the grass”. Not only that, “out of sight is out of mind” should be put in black and white as “out of sight, out of mind”. Additionally, what bridegrooms and brides should declare over the course of exchanging marital vows is “for better or (for) worse”; not “for better for worse”. However, it is quite unfortunate that “if the worst comes to the worst”, some people will divorce their spouses.

With recourse to the foregoing, kindly observe that I did not write the adulterated version: “if worse comes worse”. Coincidentally, when a mediator attempts to pacify an aggrieved or disgruntled party, the chances are that the former will say, “Don’t take this matter personal”, instead of “Don’t take this matter personally”.

Funnily enough, there is a superabundance of other standard idiomatic expressions that might even sound incorrect to the overwhelming majority of Nigerians. One of such expressions is obtainable in the last sentence: “funnily enough”. This is pervasively and unwittingly expressed as “funny enough”. Equally in the category is “joking apart” or “joking aside”, which, as often as not, is voiced as “joke apart” or

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The Gift of Gab

Ganiu Bamgbose

“jokes apart”. Again, note that when you refer to an energetic and unpredictable person, you are talking about a “live wire”, and not a “life wire”.

Lastly, when an individual, for instance, an ICT mogul like Mark Zuckerberg, makes a mammoth sum of money easily, such a person will not “smile to the bank”. For the sake of the precision that idioms originally represent, that person will “laugh all the way to the bank”.

In conclusion, when Chinua Achebe was quoted as saying, “Proverbs are the oil with which words are eaten”, that extends to idiomatic expressions in the case of the English language. They enrich your language use and should be applied with exactitude.

Dr Bamgbose (Dr GAB) has a PhD in English and lectures at the Pan-Atlantic University, Lagos. He is a social commentator who writes on different issues of national concern and the author of daily online English lessons titled “English for Today” with hundreds of lessons available on his website www.englishdietng.com.

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China and the new imperialism THE NEW WEALTH OF NATIONS

Obadiah Mailafia

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n ancient times, China and India dominated the world economy.

Their combined GDP accounted for nearly 40 percent of the world total. In the first millennium of our Christian era, geopolitical power shifted to the Mediterranean powers, Venice, Spain, and Portugal.

It later gravitated to the central Europe trading states of Holland and Sweden.

Then came France, England and Germany in the nineteenth centuries.

Britain in particular achieved world mastery through conquest of the high seas and acquisition of colonies.

Under the power of sterling, the Bank of England became the world’s banker of last resort. However, the rise of the young American republic and the toll of two world wars spelt the death-knell of British Empire.

Our twentieth century, as Walter Lippmann described it, was “the American Century”. From Woodrow Wilson to Harry Truman, American statesmen largely crafted the economic and political institutions of global governance in their own image. Without American assistance through the Marshall Plan, Europe would not have risen Phoenix-like from the ashes. For better or worse, my generation grew up in the shadows of the American Imperium – in the frosty atmosphere of the Cold War. With the benefit of hindsight, the “balance of terror” ensured a long peace. The disintegration of the Soviet Empire in 1989 and the ending of the Cold War has, ironically, created

a new dis-order under heaven.

Today, history has come full circle. Over the last 30 years the centre of world gravity has gradually been shifting towards the East. China and India have risen from the ashes of a millennial servitude.

Napoleon Bonaparte famously warned his compatriots long ago: “Let China sleep; when she wakes, she will shake the world.”

The rise of China is one of the defining features of our twenty-first century. For centuries, the Chinese defined themselves as the Middle Kingdom –- essentially the centre of the universe. That worldview embodied both a strength as well as a fatal weakness. It bolstered a cultural self-confidence about their stature as a race and a civilisation. But they also became frozen and insular -- prisoners of their own imagined self-sufficiency.

In terms of today’s nominal GDP, America outstrips China by a considerable order of magnitude, with $22.32 trillion as against China’s $14.140 trillion. However, if we base the comparisons on purchasing power parity (PPP), China has already surpassed the USA, currently estimated at $27.3 trillion. Even in nominal terms, China is closing up rapidly. By 2030, China’s nominal GDP would have overtaken that of the United States.

The Chinese themselves are wary of such comparisons. They prefer not to see themselves as Number One. Rather, they want to continue to pursue their quiet policy of “peaceful development” without drawing too much attention from the world powers.

With external reserves estimated at $3.3 trillion, China is currently investing some US$2 trillion in developing its ambitious Silk Road project that will cover much of central Asia, the Middle East, Southern Europe and East and West Africa. It will link these regions with transcontinental highways, speed trains and other trading infrastructures.

The Made in China 2025 policy unveiled by Premier Li Keqiang and his cabinet in 2015 is another ambitious programme aimed at upscaling the technological capability of China by moving away from being a factor for cheap low-grade products to becoming the manufacturing hub for high-quality goods. The mandarins in Beijing have committed $300 billion to this project. When fully implemented, these projects will reposition China as the preeminent factory of the world while consolidating her geostrategic position as a world power.

India is having one of the world’s most rapid growth rates, averaging 7.5 percent in the last couple of years.

China is slightly lower at 6.9 percent.

These growth trends are considerably ahead of the United States average of 2.3 percent and the EU average of 2.4 percent. Despite the slowdown occasioned by the novel coronavirus pandemic, the world centre of economic gravity has all but shifted to Asia and the emerging economies. China and India will both account for 35 percent of world population and 25 percent of world GDP. China is currently the biggest creditor to our continent. From the year 2000 to 2018 Chinese loans to Africa stood at the order of magnitude of $152 billion. Most of such loans are issued on commercial terms and go into financing projects in sectors such as mining, extractive industries and infrastructures.

As matters currently stand, Nigeria’s total national debt stands at an unprecedented $79.5 billion, of which the external component is $27 billion.

We owe some $10 billion to the World Bank and $2.56 billion to the African Development Bank Group. We owe the Exim Bank of China the sum of $3.12 billion, which is about 81.25 percent of our total bilateral debt obligations.

China is awash with cash. It has become a capital-surplus country needing to find good investment outlets. If we could make good business

‘

It is evident Chinese loans are quite not as generous as we imagine. This is why we must defend the right of parliament to scrutinise them. Under our constitution, the National Assembly has fiduciary duties to scrutinise as well as approve all external loans

deals with Beijing, it would be a winwin positive-sum game. My concern is not only with the quality of the projects for which the loans are being incurred, but also with their Shylock-like collateral terms.

Several of the infrastructure projects for which we have incurred loans are badly planned. I believe that the Ethiopians, for example, have negotiated far better terms for their 1,300-rail project from Addis Ababa to the port of Djibouti. The cost is about 50 percent of what we are spending on our own China rail project. In addition, the Ethiopians insisted that 3,000 of their engineers and technicians must be trained to maintain the coaches, engines and rail lines. They also got a deal by which all the engines and coaches must be assembled within Ethiopia.

They have negotiated technology transfer terms that would ensure that the rail project will be sustainable, going forward.

By contrast, ours is far more expensive and the terms we settled for are a simple build, operate and transfer (BOT) scheme. There is no real technology transfer component that we are aware of.

There is also the big matter of the little print. We understand that the original contracts are often written in Mandarin. We hear that our government has already pledged some of our oil fields as collateral. We have no firm evidence to that effect, but the troubles countries such as Madagascar, Zambia, Kenya and Djibouti are currently facing with their debt-repayment raise deep concerns.

Note: The rest of this article continues in the online edition of Business Day @https://businessday.ng 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)

Workplace Coaching (WC)

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have been unwell and it is directly connected to my work chairs both at home and in the office. The chair vis a vis the desk, vis a vis the computer and all work tools is of tremendous importance. My posture went crazy and this led to a pinched nerve that has been trapped for two weeks now. The bottom line is that, in order to start healing, I had to buy an expensive chair, (strangely enough the most comfortable chair was not the most expensive, so you have to try it out) and also do pilates, a type of exercise that will help my body bone structure heal.

Today we are looking at Workplace coaching which is the process of equipping people with the tools, knowledge, and opportunities they need to fully develop themselves so as to be effective in their commitment to themselves, their work, and the company. Please note, coaching is more for the individual than the organisation, directly even though obviously this indirectly impacts the organisation.

This is focused on developing the employee to become their “best self” and to contribute their “best fit” and talents. The process creates quick sessions to draw out distinctions and promote shifts in thinking and behaviour.

Researchers have identified coaching as a critical leadership and management competency and employees are asking more and more for it. True coaching improves employee and organisational resiliency and effectiveness in change. Change is the only constant thing so we

must always ensure our staff are always ready for it. There is no better time to change than now which is why we are looking at coaching today.

There are times we mistake some things for coaching. Coaching is not management skills repackaged, even though it draws on certain management skills and competencies. It deals with employee growth, development, and achievement by removing roadblocks to performance and enhancing creativity. Management deals with supervision, evaluation and meeting objectives.

WC is not therapy or counselling, although it uses some of the same communication processes. Coaching is about creativity, performance and action, while therapy deals with resolution and healing of the past.

WC is not mentoring or consulting, although coaches will use their experience, diagnose situations and give opinions or advice at times.

Coaches use all of one’s knowledge and experience to enable the person being coached to create and develop their own best practices, connections and resources.

Finally, coaching is not training. Coaches give information, but they support those they coach in developing their own skills, knowledge and final decisions.

As already stated, WC promotes creativity, breakthrough performance and resilience, giving organisations a competitive edge and an effective way to flow and operate within an environment of continuous change. Successful organisations have recognised that managers

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must be able to coach their employees and each other. Coaching has been included in their management/leadership development and has been identified as a critical leadership and management competency.

Clearly the traditional “command and control” style of management is no longer effective.

We now require rapid response, leveraged creativity, resilience, and individual effort and performance in order to even remain competitive.

Retention is critical, and coaching supports employee career/professional development and satisfaction thereby keeping valued employees.

Coaching to performance rather than managing to performance produces more committed staff who are invested in the outcomes of their work and achievement of organisational goals. If you remember, it is like your performance in a favourite teacher’s course to the course of a task master, teacher.

On-going training is necessary to remain competitive, however without coaching, training loses its effectiveness rapidly, and often fails to achieve the lasting behavioural changes required. Training is an “event” while coaching is a process. Coaching is a valuable next step to training to ensure that the new knowledge imparted, actually becomes learned behaviour.

Moving forward. change will clearly be the norm and individual resilience and performance will be crucial to team and organisational success. Coaching leverages individual strengths

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Olamide Balogun and abilities for maximum performance.

Coaching provides for direct on-the-job learning as well as just-in-time learning tailored to the particular situation. By enabling behavioural shifts, coaching allows projects and people to move forward immediately and with less effort. True coaching supports people in quick shifts needed to meet changing business demands like in these covid19 times.

Successful coaching adds value to employees, who then add value to their organisations by giving their best. Employees want to be happy, productive and innovative, and coaching creates the enabling environment and also supports diversity by recognising every employee’s uniqueness. Just thinking of everybody as a suit no longer works.

Note: The rest of this article continues in the online edition of Business Day @https:// businessday.ng Balogun is the founder of Box & Cedar Ltd a boutique Recruitment and HR Consulting firm Www.boxandcedar.com

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BUSINESS DAY

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‘Too much and never enough’ – towards a psychobiography of Donald J Trump HumanAngle

Femi olugbile

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oo Much and Never Enough” is the title of a book recently published

by Mary Trump, the only niece of Donald Trump.

One of the significant things about the book is that it is written by an author who is not only a close member of the Trump family, but also a holder of a doctorate degree in Clinical Psychology.

Even before Donald Trump became President of the USA, he had been the subject of much anxious speculation and conjectural analysis by psychiatrists and psychologists. The mental health specialists almost unanimously expressed worry about the man’s mental health and his suitability for what was arguably the most powerful office in the world. Many described him as a narcissistic personality with child-like impulsivity and shortness of attention-span.

By and large, the scary scenarios conjured up by the mental health specialists have not cut any ice with Donald Trump’s die-hard base. They may even have enhanced his image as the outsider who is opposed not only by the “Deep State” but by a mainstream press that is really a fake news mill, as well as an assortment of professionals including psychologists and psychia-

trists who cannot accept the genius of Donald J Trump.

Mary is the daughter of Trump’s brother who was the previous heirapparent to the Trump family business and fortune.

Mary Trump, Clinical Psychologist, would appear to be in a better position than anyone has ever been, to write the definitive psychobiography of her Uncle.

There is just a tiny point that is important to note. Mary hates her Uncle.

She blames him, along with the family patriarch Fred, for breaking her father Freddie’s spirit and driving him to despair, to alcoholism and early death.

Psychobiography as a genre of literature acquired a certain cachet from the times of Sigmund Freud, the father of Psychoanalysis. Such was the stature and self-confidence of the profession of Psychiatry at one time that many believed that Psychiatrists” deep knowledge of the human mind could provide answers to War, to Poverty and other ailments of mankind.

Some of those early assumptions have since been pared down by hard reality. There have been “left-wing” psychiatrists such as Franz Fanon and right-wing Nazi-supporting psychiatrists. Some psychiatrists took part in the forced admission and “treatment” of political prisoners in totalitarian societies such as the USSR. Some supported Apartheid. Even in Nigeria, some psychiatrists support Feudalism, some support Restructuring and some support IPOB. The inescapable conclusion emerges that all too often, human beings “think” with their guts and “rationalise” with their intellect. It is hard to find a totally objective human being.

Despite the caveats, Psychobiography, when expertly done, is still the best way to know “the person behind

the person”, and Mary Trump’s book provides the first authentic “behind the man” view of Donald J Trump.

Fred, the patriarch of the Trumps, came from a family that migrated from Germany. He married Mary Anne MacLeod; whose family came from Scotland. Grandmother is described as a woman who was totally self-focused and had no time to show care or affection for any of her children.

Grandfather Fred was hard, clipped, precise, and without emotion in his dealings. He detested weakness and despised the slightest display of ‘softness’ in any of his children. Though Freddie, Mary’s father, was the eldest son of the family, Fred favoured Donald, his younger brother, from early because he resembled him more.

Fred is described by his granddaughter as a “high functioning sociopath” who worked twelve- hour days building his Trump corporation. The elder Trump showed great aptitude for building construction and wheeling and dealing, including underhanded manipulation of local officials. The Trump organisation quickly blossomed. He had naturally expected that his eldest son, named after him, would be like him – ruthless, unemotional, dismissive of government rules and regulations, taking every opportunity to avoid paying taxes, racist, riding roughshod over other people to get his way.

As Freddie grew up, it was obvious he had nothing of those attributes. He was creative, sensitive, and inclined to explore new boundaries outside the family business. He learned to fly a plane and for a time worked as a pilot for TWA. His father despised him and took every chance to put him down. Gradually, Freddie lost his spirit, turned to alcohol, lost his career, his marriage, and eventually his life.

‘

Mary’s book, despite its inherent bias, is a good read for anyone seeking to understand the man behind “The Donald”, and why America is in its present bizarre dilemma

“Too Much and Never Enough” is published by Simon & Schuster. It is available on Amazon.

Olugbile is a writer and psychiatrist. synthesiz@gmail.com

Empathetic leadership and corporate culture

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n today’s climate, the times of uncertainties call for unparalleled leadership. There is a massive demand for those in executive management positions to show their humanity a substantial dose of empathetic leadership. The truth is that empathy will motivate an organisation through a crisis, but it will help the leadership to deal with any conflicted feelings of their own.

Empathy is not a catchword or slogan; it is a leadership competency and skill required for developing productivity, engagement, and partnerships in any organisation. A critical part of empathy in leadership is providing emotional guidance and encouragement that will help every team member develop personally and professionally. Leaders who show little or no empathy pay the price literally as you cannot inspire your team members or elicit loyalty.

Usually, many organisational cultures promote rules, rewards, and sanctions that discourage honest communications; suppress intense emotions; and minimise risky, truthful, and authentic dialogue. They do this to create a positive public image of its leadership and how it operates or shields business processes and relationships from unnecessary disruptions and unanticipated changes. At the same time, these restrictive cultures may seem necessary for success or survival. Still, they perpetuate deep dysfunction, demoralisation, and despair in the lives of those who work in such an environment.

In a dysfunctional corporate culture, the smiling faces presented to employees, members, and the general public often masks unhappy repressive conflict-avoidant realities.

Indeed, it is rare in most organisations that employees or members feel entirely free to openly and honestly discuss what is going on,

especially with those above or below them in the hierarchy or with outsiders, customers, and those with whom they conflict.

Naturally, organisations develop unspoken, unwritten rules and regulations for determining the safe and ideal moment to speak honestly within limited boundaries or stand the risk of losing their livelihood. Sadly, these rules contribute to the creation of dishonest, inconsistent, unethical organisational cultures that encourage secrecy, covert behaviours, and silence, rewarding them and preventing employees or members from resolving their conflicts in some organisations. On the other hand, by inspiring empathy, honesty, and openness; identifying and calling attention to negative and covert behaviours; clarifying shared values, and encouraging managers and employees to act ethically and responsibly; these same repressive cultures can be transformed, and the dysfunctional behaviours they generate can be discouraged.

However, cultural transformation requires a leadership team with a clear vision and a strong commitment to making their practices compatible with the new and evolving culture. Everyone in the organisation is required to make a difference in their behaviour for the cultural change to succeed and become sustainable.

Most importantly, the leaders must participate in defining the new culture, and they must be willing to implement it in ways that are consistent with what they wanted to create.

It is important to note that organisational cultures are virtually holographic, which suggests that every piece contains and reproduces the whole, which means that it is impossible to change an isolated element in a culture without transforming the entire matrix of mutually reinforcing behaviours that interact with each

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The leadership factory with

other and give the culture its overall character.

This aspect of organisational culture allows it to be transformed by strategically changing, even minor, seemingly unimportant parts.

Some organisational cultures place a premium on conflict avoidance, while others reward accommodation or compromise. Several highly competitive corporate cultures give high marks for aggression. Most organisations possess a subtle set of rules regarding who can behave, with whom, and over what. When we scan most organisational cultures, we search in vain for signs of meaningful support for genuine collaboration with people with opposing views.

We hope for an open, creative dialogue regarding problems; honest, emphatic, self-critical leadership in addressing and responding to conflicts; and preventive, persistent, systemic approaches to resolution.

Instead, what we see are dismissive attitudes that regard conflict resolution as pointless or “touchy-feely.” An organisation with a conflict-averse culture rewards avoidance and accommodation. Such organisations encourage aggressive, hypercompetitive cultures that subtly or overtly permit retribution and reprisal for speaking the truth; bureaucratic rules that help passive-aggressive behaviour; hypocritical, self-serving leadership; and covert systems that are creating chronic, avoidable conflicts.

Sadly, in most organisational cultures, it is rare that aggression, avoidance, and accommodation of conflicts require an explanation, but collaboration, honesty, openness, and forgiveness seem vaguely unacceptable. The apparent effects of this continuous immersion in battle are immediate, clear, and pervasive.

They include a brutalisation of the soul or conscience, the loss of capacity for empathy with

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Fred the senior’s attention was fully on Donald, who was everything he wished in a child, and even more.

Where the older man was a stiff Boardroom type, Donald was outgoing, flamboyant and able to manipulate the press to his advantage, building a public image based on lies and half-truths.

Donald was the future of the Trump brand, his father decided. He could do no wrong.

Even when he went bankrupt in several business ventures, his father was there to bail him out and help preserve the illusion of the invincible dealmaker.

He used his political connections to paper over the cracks in Donald’s persona and to firm up the lie of a high-flying superstar entrepreneur. He encouraged his ego and fed the inferiority complex and ontological insecurity that made him want to put his name on everything he touched, from buildings to toothpaste, to toilet paper.

Getting on television with a virtual reality programme - The Apprentice further burnished his public image as a man with the Midas touch. Illusion had become reality.

Trump the elder died in 1999.

Donald, his heir, against reason, and against all the dictates of “real reality”, according to the author, became the President of the United States of America in 2016.

The rest, as they say, is History.

Mary’s book, despite its inherent bias, is a good read for anyone seeking to understand the man behind “The Donald”, and why America is in its present bizarre dilemma.

Toye Sobande the suffering of others, an overwhelming fear of violence, and anxiety about social acceptance, a cynicism about human worth, avoidance of social intimacy, a retreat into “eye service” behaviour and a “stick and carrot” atmosphere.

These effects divert our attention from resolving conflicts or overcoming the fear of criticism, controversy, and retaliation.

So many organisations have developed entire ecosystems based on miscommunication and conflict avoidance in which team members spend an extraordinary amount of time hiding from honest communication. They are stuck in unresolved disputes with others in the organisation, confused over unclear messages or body language, and unsuccessfully trying to make their needs and feelings heard and understood. People in these cultures spend little time learning what their conflicts are about, what caused them, what upset people’s feelings, why they have such a hard time saying what they think and feel, or talking directly, openly, and honestly.

Note: The rest of this article continues in the online edition of Business Day @https:// businessday.ng Sobande is a Lawyer and Leadership Consultant. He is a Doctoral Candidate at Regent University, Virginia Beach, USA, for a Ph.D. in Strategic Leadership. He can be contacted by Email: contactme@toyesobande.com

@Businessdayng

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Friday 14 August 2020

BUSINESS DAY

Editorial Publisher/Editor-in-chief

Frank Aigbogun editor Patrick Atuanya

Past policy inconsistencies will weigh on Nigeria’s recovery After the contagion, the government must stay the course of reform

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

Bashir Ibrahim Hassan

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olicy uncertainty and inconsistency has been a major culprit among several fundamental factors that have kept both local and foreign patient capital away from the Nigerian economy, it is the reason why investors take speculative positions in the capital markets and why a chunk of our foreign reserves is flighty. Investors worry about the inability of the Nigerian federal government to maintain clear and consistent policies pursued when a crisis happens, only to revert post crisis.

This behaviour is not market friendly and must stop if we must advance as an economy.

The current COVID-19 pandemic has forced the Nigerian authorities (fiscal and monetary) to roll out policies in a bid to ameliorate the impact of the virus on the economy. The NNPC announced earlier this year that there will be no more subsidy, and how a new “price modulation” mechanism will be used

to ensure that they do not have any under-recovery. This is not a new development in the history of Nigeria.

Subsidy removal has always been a response to a crisis, say, when oil prices plummet, and yet after the crisis, it is reversed when prices begin to trend upwards.

A refusal to fully deregulate the downstream sector, put an end to price fixing, is a refusal to open up the space for private investment which would spur healthy competition and growth in the industry.

The Central Bank of Nigeria too is very much guilty of policy inconsistencies. Especially its defend-the-naira-at-all-cost strategy.

So far, the CBN has reluctantly devalued the naira to N380/$1 from N306 earlier this year while still unwilling to unify Nigeria’s multiple exchange rates. It also allowed the rate at the Importer and Exporters (I&E) window to adjust to N380 in response to market developments. However, are there any institutional changes to guarantee that when this crisis is over, the CBN won’t revert this policy?

Every economy runs basically on two wheels; the trade wheel and the liquidity wheel. Prior to the outbreak of the novel coronavirus, COVID-19, in the fourth quarter of 2019, the global market was flooded with cheap capital due to the large liquidity injections by the central banks of the US, the UK and EU. Smart and proactive economies joined the race to attract these cheap sources of capital while Nigeria slacked, its policies weren’t perceived as favourable.

Now with the outbreak of COVID-19, not only has the pandemic depressed export, it has halted production and claimed lives in their thousands. It has also increased further liquidity glut in the global economy as governments across the world respond to the crisis by throwing money at it.

Here could be another opportunity for Nigeria to get its fair share of the glut, but her weak fundamentals make this at best a mirage. Standard & Poor (S&P), a rating agency, downgraded Nigeria from stable to negative on the

back of the country’s weak buffers.

Likewise, the International Monetary Fund (IMF) has announced that the Nigerian economy would witness a deeper contraction of 5.4 percent and not the 3.4 percent it projected in April 2020. It predicts that inflation is likely to increase while terms of trade and capital outflows will make our external position more vulnerable. Hence, the need to grow revenue.

Oil prices are still depressed.

While Nigeria borrowed recklessly when oil prices were stable, it doesn’t have such luxury today given its weak earnings, besides the proportion of its revenues spent on repaying and servicing debt has ballooned.

Nigeria must unlock value from its dead assets. The federal government owns stakes in companies, owns lands and other assets which are wasting away and can be unlocked to attract foreign capital. These assets can be sold, securitised or leased.

Above all policy clarity and consistency are paramount to boost investors’ confidence.

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

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

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Mission Statement To be a diversified provider of superior business, financial and management intelligence across platforms accessible to our customers anywhere in the world.

BusinessDay avidly thrives on the mainstay of our core values of being The Fourth Estate, Credible, Independent, Entrepreneurial and Purpose-Driven.

• The Fourth Estate: We take pride in being guarantors of liberal economic thought • Credible: We believe in the principle of being objective, fair and fact-based • Independent: Our quest for liberal economic thought means that we are independent of private and public interests.

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Friday 14 August 2020

BUSINESS DAY

COMPANIES&MARKETS OIL & GAS

EQUITIES

Despite cheap valuations offshore investors shun Nigerian equities Mercy Ayodele

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oreign investors have remained on the side-lines of the Nigerian stock market as currency uncertainties and grim outlook for the economy come into focus even though the country’s equities are one of the cheapest among continent peers this year.

In June, foreign investors’ participation on the domestic bourse dropped to 39.52% compared to 45.84% in the same period last year.

Meanwhile Nigeria stocks are cheaper at a price to earnings of 8.64X compared to 10.96X for Egypt, and 17.64X for South Africa.

Analysts say dollar scarcity is keeping foreign stock investors at bay; uncertainties around the naira and inability to repatriate capital

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means new investments are put on hold.

“Ever since the drop in oil price in March, CBN has not been able to sustain its intervention in the I&E window leading to liquidity issues in that market,” said Gbolahan Ologunro, banking analyst at Lagos-based CSL Stockbrokers. “Foreign investors who put in funds before that time could not pull out their fund.’’

Amid scarcity of the dollar, backlog in FX demand rose to around $7 billion in June according to a BusinessDay report as daily turnover in the I&E market also declined. The Central Bank of Nigeria (CBN) promised to fund “legitimate” dollar demand but its firepower has been questionable in the face of stunted inflows.

Since March, the apex bank has stopped the sales of FX to retail traders, and adjusted the Bureau De Change (BDC)

to N380 per dollar from N360.

It also adjusted the naira’s official rate from N307 to N360 which is a devaluation of 15%, while official rate was further devalued from N360 per dollar to N381 earlier in August.

Analysts say investors are also worried that gains on Nigerian stocks may be eroded due to currency adjustments. ‘‘Until there is better clarity on the exchange rate framework and improved flexibility such as the CBN allowing the market to determine prices in the I&E window, we are not likely to see a significant demand from investors despite cheap valuation’’ said Ologunro.

Depressing outlook on the economy, projected to decline 5.4% this year according to the IMF, is also weighing on foreign investors’ sentiments.

Earnings results for the first six months of the year

especially in the consumer goods space have been unimpressive, showing COVID-19 effects. Second-quarter results showed huge decline in sales among the biggest food and beverage makers on the NSE. For banks, the toast of foreign investors, both earnings and asset quality are expected to come under pressure this year.

While foreign investors are avoiding risky investments in most emerging markets, they have poured money into havens like gold which recently rose to its highest value since 2001 before declining on Tuesday. Amid uncertainties of the ongoing pandemic havens are seen as bets for investors.

For Nigerian stocks, domestic investors are taking advantage of the cheap valuation as their participation accounted for 60.48 percent in the first half of the year, from 54.16 which was recorded in 2019.

NNPC partners private sector on repair of depots and pipelines OLUFIKAYO OWOEYE

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he Nigerian National Petroleum Corporation (NNPC) declared open bids for the repair of pipelines and depots serving the nation’s refineries. The deadline for the submission of these bids is due by September 18. The pipelines, which according to NNPC are in dire need of comprehensive repairs, have experienced years of incessant theft and vandalism as well as ageing.

These pipelines, built almost 4 decades ago, are very critical in the successful movement of crude oil to the country’s 3 refinery complexes located in Port Harcourt, Kaduna and Warri, and the subsequent movement of the finished petroleum products to the consumers.

This project is expected to be operated on a publicprivate partnership basis as the bidders are expected to finance and execute the project, then operate for an agreed number of years before transferring

back to the NNPC. In other words, the bidders for the extensive repairs of these pipelines would have to finance them independently and operate for a defined period in order to recover their investment c o s t s w i t h t h ro u g h p u t tariffs.

The NNPC also announced plans to get private investors to invest in the repair of the 3 refineries on a repair and operate basis, as they do not want to be involved in the management of these refineries. Mele Kyari, group managing director, NNPC said the ultimate plan for these refineries was to allow it to run on the LNG model, where the shareholders would be free to decide on the fate of these refineries going forward.

The refineries, which have only run sporadically, were shut down by NNP C earlier this year while awaiting repairs and upgrade. These 2 projects are expected to be handled separately according to information made available on Tuesday.

CONSUMER GOODS

Northern Flour Mills turns the corner to post first full-year profit in five years Oluwafadekemi Areo

N Source: NSE

BANKING

Access Bank rewards over 9,000 Customers in DiamondXtraWins Campaign Hope Moses-Ashike

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eading retail bank in Nigeria, Access bank Plc, has rewarded over 9,000 lucky customers in the DiamondXtra campaign tagged XtraWins; a seasonal offer leveraging the ongoing DiamondXtra campaign to reward customers for saving and transacting on its digital channels.

The XtraWins initiative, was borne out of the need to encourage customers to remain safe as they carry out their transactions in these times. The initiative is also aimed at rewarding loyal customers for choosing digital channels, giving them the opportunity to win cash prizes for performing transactions

daily using the Access Bank USSD code *901# or the AccessMore App. Adaeze Umeh, head, consumer banking, Access Bank Plc, explained that the Xtrawins initiative was born out of the need to transform the lives of the bank’s customers who have been transacting with the bank’s digital platforms especially with nationwide restricted movement in response to the Covid pandemic.

“In our own little way of showing appreciation to our customers for their patronage and better returns on their savings, we launched the XtraWins campaign to ensure our loyal customers are rewarded. We have rewarded more than 100 customers every day and over 1,000

every week with various cash prizes since the beginning of the campaign which started about 10 weeks ago.

Lucky customers can win from N500 – N1million when they maintain a minimum of N1,000 in their accounts and conduct at least 5 transactions daily using our USSD code *901# or the Access More app to purchase airtime, pay bills, make transfers and so on.

The beauty about the Xtrawins campaign is that customers can win repeatedly as long as they keep transacting with our digital channels and carry out the number of transactions required to qualify for the daily draws.

Adaeze concluded.”

Some of the XtraWins lucky winners took to their

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social media platforms to express their excitement and gratitude towards the Bank.

Ube James, @UbeJames N100,000 XtraWin winner tweeted: @accessbank_more can’t thank your guys enough for the opportunity of being one of the winners. Had to invest the money so as to always remember such feat.

I’m so greatful. #Xtrawins.

Another winner Hamstylez , @Hamstylez1 also tweeted : #Xtrwins ..I got rewarded and it seems lika a dream…

To join the winning train, simply conduct at least 5 transactions daily using the Access bank USSD code *901#, or the Access More app or to purchase airtime, pay bills and carry out NIP transfers.

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orthern Nigeria Flour Mills a liste d Miller on the Nigerian Stock Exchange (NSE) has announced its first profit in five years; thanks to a double-digit growth in revenue for the year ended March 2020.

Northern Nigeria Flour Mills on Tuesday 11th of August 2020 announced that it made a full-year profit of N64.6 million for the period ended in 2020.

This is the first time the company will be making a profit since 2015.

The profit emerged on the back of a 113 percent growth in the company’s sales as well as the 842 percent growth in finance income for the same period.

Shares of the company however remained flat at N4.30 at the close of trade on Wednesday but their basic earnings per share showed an increase of 100 percent from 18 kobo in 2019 to 36 kobo in 2020.

Northern Nigeria Flour Mills Plc is a milling company. The Company produces @Businessdayng

flour and semovita.

The surge in their revenue growth for the year ended from N4 billion to N8.8 billion was despite a 128.9 percent increase in sales of goods and due to a 43 percent boost in rendering of services-contract milling fees for the period ended.

Gross profit grew by 50.9 percent from N580 million in 2019 to N876 million in 2020 while the company was able to retain less from every N100 sale as gross margin fell from 13.9 percent in 2019 to 9.91 percent in 2020.

Operating profit grew by 6.5 percent as selling expenses increase by 158 percent.

The proposed dividend of Northern Nigeria Flour Mills Plc, if approved by the shareholders of the company, would be subject to deduction of appropriate withholding tax.

The total asset of the flour miller rose by 70% year-onyear to N8.49 billion in the year ended March 2020.

Also, total liabilities grew by 49% to N5.722 billion.

Owner’s wealth more-thandoubled to N2.77 billion.

14

Friday 14 August 2020

BUSINESS DAY

COMPANIES&MARKETS

Business Event

OIL & GAS

WAPIC gets shareholders approval for change of name to Coronation Insurance plc Modestus Anaesoronye

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apic Insurance Plc has secured the approval of its shareholders to change the Company’s name to Coronation Insurance Plc. The change of name came as a Special Resolution during the Company’s 61st Annual General Meeting held in compliance with Covid-19 directives.

Mutiu Sumonu, new chairman of Wapic who presided over the meeting said the decision was aimed at enabling the Company reflect its independence, achieve set goals and in line with ongoing transformations in the nation’s insurance industry.

Sumonu assured the shareholders that this resolution was in the best interest of the Company and would reflect the direction it is going as a leading player in the industry.

The shareholders, including Sunny Nwosu, national coordinator, Independent Shareholders Association of Nigeria and Boniface Okezie, chairman, Progressive Shareholders Association of Nigeria applauded the immediate past chairman, Aigboje AigImoukhuede for leading the transformation of Wapic Insurance that has not only brought the Company back to position of relevance , but as

major player in the industry.

They however urged the new chairman to step in the shoes of Imoukhuede and bring more value to shareholders, while giving their promise to support the new board to take the company to greater heights.

Adeyinka Adekoya, managing director/CEO, Wapic Insurance speaking on the performance of the Company in 2019 financial year said the Group recorded a 17 percent growth in gross written premium to N15.20 billion from N13.89 billion in 2018.

While this could not translate to huge profitability, she said the year 2019 was a challenging year for the company as it was only able to achieve marginal growth in her Gross Written Premium. The increase recorded in claims expense and other operating expenses, she noted were as a result of costs incurred on its ongoing transformation projects, expecting that the benefits of these investments will begin to reflect in her performance from 2020 and beyond.

Adekoya said the new strategic plan for the company gained full speed in 2019 with very bold and audacious objectives set to outstrip competition and increase her consumer share of wallet.

“With our value propositions focused on improved excellence, service delivery

and competitive pricing, we are on a journey to becoming a top three insurer in the Nigeria Life and Non-life insurance market by year 2023. We worked with a global consulting firm in the development of this 5-year strategic plan, which has set us on an ambitious growth trajectory from 2019 to 2023.”

Adekoya stated “to achieve our aspiration of being a top three insurer by the target date, the need to scale up our business is paramount. We are building on the successes we have experienced so far within the corporate space and extending our reach to mid-sized corporates and SMEs who have special needs that are currently unmet” She further noted that given the uncertainties surrounding 2020, she assured that Wapic Insurance will remain resilient as it keeps investing proactively in technology and talent to bolster her core systems and capabilities.

“These efforts are aimed at enhancing customer experience through artificial intelligence (AI), digitalisation, new and improved sales platforms, new and bespoke product development, and other innovations aimed at strengthening the company in preparation for the stiff competition which is likely to be the face of the insurance industry as it proceeds through-this challenging year.”

L-R: Chisom Onyeka, corporate affairs advisor, Nigerian Breweries Plc; Uchenna Ibemere, head of integrated communications, Nigerian Breweries Plc; Qasim Akinreti, chairman, Lagos Council Nigerian Union of Journalists (NUJ); Joy Egolum, corporate affairs manager, Nigerian Breweries and Alfred Odifa, secretary, Lagos Council, NUJ, during the donation of drinks & food items to members of the Lagos Council, Nigerian Union of Journalists (NUJ) in Ikeja, Lagos

L-R: Ebuka Obi-Uchendu (event host); Chima Patience Ebor, head priority and premium banking, Standard Chartered Bank; David Idoru, head, retail banking Nigeria, and Zainab Ibironke Lawal, head, premium banking at the launch of the Premium Banking segment of Standard Chartered Bank’s Retail Banking business in Nigeria

Ojaayo Eserve limited commits to revolutionising e-commerce business in Nigeria KELECHI EWUZIE

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jaayo Eserve Limited the online arm of Maxicoin group says it is committed to revolutionising the ecommerce business in Nigeria and Africa in general.

The company says its highlevel operation seeks to solve the trust issues between buyers and sellers in Nigeria’s e-commerce industry with the best possible niche platform.

Ikechukwu Madu, chief executive officer, Ojaayo Eserve Limited observes that with the world adjusting to the threat of Covid-19, the need to avoid hotspots such as open markets has become necessary.

Madu noted the company set out to create an e-commerce system that would solve the issues of trust between merchants and buyers, adding that the platform offers merchants the opportunity to sell at very little cost while buyers can get affordable, durable goods.

He opines that even though a lot of people still believe in the traditional methods of shopping, however, this is gradually changing as even the petty trader on the street is engaging in some methods of e-commerce.

According to him, “Comfort and convenience have become paramount for a lot of people. Most shoppers want to buy and have it delivered to their doorstep. Yes, e-commerce is definitely evolving and definitely here to stay”.

He noted that the company made the platform flexible for all users and have recorded huge success since its lunch in 2017.

Commenting on how to grow the e-commerce industry in Nigeria, Madu noted that cheaper access to data will encourage e-commerce services, stressing that policies that support e-commerce should also be encouraged as it is a way for people to do business and become productive members of the society.

He further called on the www.businessday.ng

ministry of information and national orientation to intensify work on improving Nigeria’s image to the eyes of the world as it the desire of merchants to be able to sell all over the globe.

“Nigeria needs to seriously work on her image as a country. That is the future we see and that is what we want to achieve and we would not want the poor image created about Nigeria to stop that from happening,” Madu said.

“To become a vendor, all you need to do is visit ojaayo. com, register and start uploading your products. Buyers visit the site and select a particular product or products and buy”.

The products sold on ojaayo.com are generally affordable. Besides that, our vendors often offer discounts on their products, more often than you would get on other e-commerce platforms. We often notify our customers on new discounts and flash sales so they don’t miss any bargain opportunity,” Madu said.

L-R: Olujimi Oyetomi, director media and publicity of the Federal Ministry of Health; Abiodun Olubunmi, director of general services of the Federal Ministry of Health; Abdulaziz Mashi Abdullahi, permanent secretary of the Federal Ministry of Health, and Oke Kehinde, P&G Sales manager, at the official handover of P&G handwashing stations to the Federal Ministry of Health in Abuja

L-R: Taiwo Adeona, secretary, Lagos State Water Tankers Association (LSWTA); Funke Adepoju, executive secretary, Lagos State Water Regulatory Commission (LSWRC), and Abdul Adeshina, chairman, LSWTA, during a stakeholders meeting on licensing of water tankers opera

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Friday 14 August 2020

News

BUSINESS DAY

Products Review

Technology Review

Personality Review

Company Review

15

FINTECH

The long road to recouping telcos’ N17bn USSD debt from banks FRANK ELEANYA

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elecommunication operators are on a queue to recoup N17 billion which the Nigerian Communications Commission (NCC) says Nigerian banks are owing for USSD services. However, getting the banks to buy a debt they didn’t know when they entered the agreement could be a difficult sale.

According to Umar Garba Danbatta, Executive Vice Chairman of the Nigerian Communications Commission (NCC), the debt is from deductions made from subscribers’ bank transfers since 2019 following the suspension of its determination on Unstructured Supplementary Service Data (USSD) pricing last year.

How it began It started 20 October 2019, when MTN Nigeria sent a text message to its subscribers informing them of plans to charge N4 for every 20 seconds of USSD transactions.

A few of their partner banks picked up the message and pushed it to customers.

Almost immediately, bank customers expressed their disappointment at the charge which many classified as ‘insensitive’ and an extra burden on the many bank charges they were subjected to.

Godwin Emefiele, Governor of the Central Bank of Nigeria who was attending a conference in far-away Washington was forced to issue a statement condemning the plan by MTN which would not be allowed to happen.

The CBN Governor went to disclose that it had in a meeting - sometime in May - with some telecommunication companies and big banks “agreed” that the use of USSD was a “sunk” cost. A sunk cost is an additional cost on the infrastructure of the telecom company.

“But the telecom companies disagreed with us,” Emefiele had said. “They said it was an additional investment in infrastructure and for that reason, they needed to impose it.”

The CBN governor said the big banks and telcos were later asked to come up with an option since imposing charges on users was not an option for the bank regulator. The CBN has the objective of making USSD services as seamless and affordable as possible because of financial inclusion.

Ali Isa Pantami who was then barely four months into his tenure as minister of Communication and Digital Economy quickly issued a state-

ment ordering the suspension of the planned fee pending an agreement with banks on a way forward.

How USSD work USSD is a protocol used by GSM cell phones to communicate with their service providers’ computers.

It can be used for wireless application protocol (WAP) browsing, prepaid callback service, mobile money services, location-based content services, menu-based information services, or even as part of configuring the phone on the network.

For the banking sector in Nigeria, Niyi Toluwalope, managing director and CEO of eTranzact, in an interview with BusinessDay, said the company kicked off USSD transactions in the Nigerian banking sector, partnering with Guarantee Trust Bank (GTBank) to launch its nowfamous *737#.

Users do not necessarily need an internet connection

to carry out transactions; hence it is ideal for persons in regions where broadband is either non-existent or very poor. It is also driven by adaptability.

Charging for USSD services Until recently when EcoBank introduced its zero-fee, banks have always placed a fee on USSD services and it is not fixed. When initiating a transaction via USSD, every process is charged by the network provider. Depending on how many steps required to complete the transaction, users can pay as much as N50.

Banks like GTBank charge N10 for transfers, Access Bank’s fee for fund transfer to other banks go as high as N20 depending on the amount being transferred and the users must have airtime to initiate a USSD transaction.

Do telcos have a valid claim?

Two USSD experts BusinessDay spoke with on conditions of anonymity do not think the

What the banks say While the banks BusinessDay

reached out to declined comment, is not likely that banks will agree with the NCC and the telcos on the N17 billion debt.

In October 2019 after the suspension of the charges by the Minister of Communications, the Body of Bank CEOs issued a statement in which they said that when presented with two options for billing, banks supported the standard practice for a relationship between a telecommunications company and their subscribers.

“We proposed the same method they charge for voice calls, SMS, and data. We then asked to work with the telecommunications companies to bring the cost of their USSD service down for Nigerians,” the banks said. “Since banks cannot reasonably be expected to charge for the service of another industry, over which they have no control of price, quality, and security we are delighted that consumers will now be able to access their banks for free, using USSD.” There is little evidence that banks’ position has shifted enough to make them agree they owe a debt of N17 billion to telcos.

“USSD Session is also utilised in other GSM functions like calling and SMS,” said a financial services expert. “It’s not like there is some specialised equipment for USSD only. Besides, it is bad business practice for them to be allowed to claim USSD charges because telcos are free to set up their USSD services and get people to use it, CBN will gladly grant them licence to operate financial services like it did for MTN MoMo.”

the all-time-high set in 2017 and the market conditions that enabled the surge in 2017 are still very absent.

Nevertheless, 2020 has seen some milestones despite the COVID-19 pandemic which has rocked the economy of nearly all the countries in the world. July for instance saw the least volatility the first time since 2018. Additionally, many analysts say the market is more matured in 2020 than it has ever been as more institutional investors take

position. This has certainly affected the volume of trade.

“As bitcoin started moving, we’ve seen several days with volume above $2 billion,” analysts at Luno said.

“We can certainly conclude that the almost 3-month long downwards trend has shifted upwards.”

Sustained bullish demand could see bitcoin’s value pushing higher. Coindesk notes that if bitcoin surpasses $12,118 level, the next target would be the high of $12,325 reached early in August 2019.

telcos claim is strong enough.

Historically, USSD has been a service channel. It was invented to provide services to users. Service channels aid companies in carrying out business transactions.

“In a USSD Session, everything is destroyed as soon as the session ends, nothing is stored on any disk or hard drive - unlike SMS,” one of the experts said. ‘If there was some form of the storage layer, telco s could have a case, because that is the overhead cost per USSD session. But as it is, the cost of running USSD services is negligible.”

However, telcos’ main premise for the debt claim is that the cost of powering their USSD infrastructure deserves compensation. The NCC also agrees and has in the past provided guidelines for USSD charges for telcos. The commission issued a revised guideline which takes effect from August 1.

In the revision, the NCC unified the previous cap and floor prices at N1.63k and N4.89k per 20-second USSD session respectively, and now pegs it at N1.63K per session.

In a statement that followed the release of the guideline, Danbatta, the NCC boss, averred that “USSD is a service to banks and not to the telecom consumers, and as such, banks should see themselves as corporate customers of telecom operators with a duty to pay for using the telecom network and infrastructure, including USSD channels extended to them for service delivery to their customers.”

Bitcoin shrugs off dump fears as price soar above $12,000 FRANK ELEANYA

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he price of bitcoin jumped above $12,000 on Monday morning for the second time in recent weeks rising from $11,750 in a move some experts attribute to the kick-off on Monday of the Grayscale’s national ad campaign in the US. Barry Silbert, the founder and CEO of Digital Currency Group, the parent company of Grayscale Investments, Gen-

esis Trading and CoinDesk, announced a few days ago a national TV campaign for Bitcoin (BTC), Ethereum (ETH) and Ripple (XRP). The planned massive ad campaign is intended to expand the reach of cryptocurrencies to a larger audience for mass adoption and encourage government buy-in.

As of time of writing this article bitcoin was trading at $11,741 a signal that other market forces may also be at play. But there is little doubt that the market has recovered www.businessday.ng

from a brief dump last week.

Last Sunday, bitcoin took a price hit and the entire crypto market followed it’s downward slump from a high of $12,000 to below $10,700 losing 10.9 percent in value after $1.3 billion was liquidated during a massive sell-off. The sharp drop was quick - lasting about 30 minutes - and even though a decent amount of value was lost, investors said that BTC will recoup the losses and continue to gain.

The $12,000 indicates the market is already started to

recoup the losses. Analysts at Luno in a weekly note sent to BusinessDay confirmed that professional traders finding their way back to the cryptocurrency market after bitcoin crossed $10,000 in July. The Bakkt and CME, both prominent futures markets, are seeing record high inflows and surge in trading activity.

Many people’s expectation is that bitcoin would repeat the run of 2017. This was also predicted by a Bloomberg report in June. However, BTC is still down 43 percent below

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@Businessdayng

16

Friday 14 August 2020

BUSINESS DAY

INTERVIEW ‘Nigeria needs accurate off-taker affordability data from profilings to avoid previous mass housing pitfalls’

The housing sector with an estimated 25 million deficits is projected to offer big hope for Nigeria’s economy post COVID-19.

Joshua Egbagbe, team leader, Project, NGNHOMES.NG, in this interview with John Osadolor and Tony Ailemen, says to get it right, issues of value chain profiling for off-taker affordability must take precedence to avoid previous pitfalls. Excerpts: Can you bring us to speed on the prospect and challenges of the property value chain in Nigeria, as well as what your company is out to achieve with the Value Chain concept? hen you talk about value chain in the real estate business in Nigeria, it is a term that encompasses issues such as supply chain dynamics, demand dynamics , from processing and transforming raw materials to end product. It speaks to understanding how demand works and all of the issues surrounding bringing a service or product to the market place, and what you do after that to ensure that the product has continuity of value.

When it is narrowed down to real estate ,you discover that in real estate we have residential, commercial and ofcourse specialised real estate. But we will narrow it down to housing, my understanding of the market has to do with the demand/end user factor, how elastic or effective is the demand, how affordable are the products that are being presented.

Then of course, we cannot talk about housing issues without talking about the land, especially as it effects the legal issues, how you process the land title and the extant laws governing them. In the value chain, we talk about the person that is buying, how effective is the demand and what is the capacity of the market to absorb your services. So in Nigeria, I will narrow it down to mortgage backed housing, because with the mortgage you can pay over a period of many years.

The average buyer in Nigeria would depend on mortgage.

So that will bring us to looking at the mortgage industry, and how it affects the value chain in housing.

An investor coming into the housing sector in Nigeria will have to look at all these factors, in taking an informed decision.

For my first project in Bauchi state, as an investor, I did a general market survey, I went to a real estate agent company who did estimations for us, and told us the preferences of the people, the costs and demand. So we went ahead to build what the people would prefer and our prices were even below the market price. But at the end of the day, we built a huge estate of over 500 housing units and we ended with houses that we couldn’t even sell.

So an investor coming into the Nigeria housing sector, will have to look at these, not from and eagle eye-view but must come down and consider every single detail. You must not just do the general market survey but must carefully look at these factor, especially the off-taker factor, because the other factors are functions of bureaucracy and costs , such as land and the others, but if after going through these bureaucracies and you still do not have people to buy the houses, you are building for waste. So we discovered that there need to be a paradigm

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Joshua Egbagbe

shift for investors coming into the housing sector, put the off-taker first, then you build all other factors to tally with the off-taker.

Considering the designs of the houses is another value chain, you cannot just go and build houses in Bauchi for instance because you built in Lagos and the people liked it. Because in Bauchi, their cultural orientations are different. So for us, applying the Value chain concept generically is the best way to look at housing investment.

How have you factored this into what you are doing now?

For us as an organization, we took our bearing from the challenges that we experienced building without the value chain factors.

Between 2008 and 2011, we engaged the Bauchi government, proposing a PPP concept which we successfully executed, but because of the challenges of government in PPP arrangement, we ran into a situation of mismatch between the product available and the capacity of the market to absorb the products.

Despite the well priced profile, like below N6 million for a 3-bedroom and N5 million for 2- bedroom, for an estate of over 500 units we were able to get less than 50 people to buy and even those that bought with the mortgage, were still not able to satisfy the terms of the mortgage, because mortgage is another challenge in this country.

So my perspective was to step back and fall back on my post Doctoral training in public health medicine, where I worked mostly on the socioeconomic factors that influence public health behavior of a people. The use of data is critical, we then looked at the statistical correlations between people economic conditions and the services.

So I did a study on the correlation between the off-takers(potential buyers) and the product(houses), and I discovered why the off-takers are www.businessday.ng

unable to take up houses, despite the existence of such a huge market for a properly managed affordable housing.

My perspective right now is that the off-takers should be at the very centre of every affordable housing permutation, and not just that alone, every other factor such as mortgage conditions, land, government incentives, etc, must be brought into alignment with the off-takers at the centre.

I was fortunate, the German government (GIZ) sponsored my research and at the end of the day, I discovered that if we can have critical data that look into the lifecycle of housing from the off-taker, to land acquisition, to building materials (as we import most building materials), so everything really shows that we need to regig, I call it paradigm shift.

At the 2016 housing summit, sponsored by the Federal ministry of housing and GIZ and a few other private companies, I propounded what we need for paradigm shift, to stop looking at housing through the eyes of finance, through the eyes of land and government policies, but through the eyes of the off-takers.

So today, with the off-takers driven perspective, we are able to design housing solutions, we have done for the Ogun state government under the ogun state housing corporation, where the then GM was able to build an estate called Valleyville, for civil servants whose salaries were not even much.

In Bauchi, we have one or two projects already in line, in kaduna projects are far gone with plans. So as a national policy, I discovered that affordable housing is the way to go, it will transform the country, so let’s go for the off-takers and build around them.

So I decided to set up a consulting firm, like a corporate social responsibility to investigate how the off-taker challenges can be brought to the forefront , with designed solutions to meet the challenges. And with the solution template, we can look at

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issues of mortgage funding, building materials and all the different choices can come into play. So far so good, its is challenging, but our results are showing that Nigeria can really benefit from housing.

engage a reputable contractor to build for him.

So every stakeholder gets to benefit through the credible data it offers, this is a private sector driven data base that tells of individual capacity.

In specific terms, what will be the benefits for all the players, such as off-takers, property developers, industry, and national economy?

Well let me start with the off-taker, the buyers dont know that they can own their own houses, here, we speak of good quality affordable houses, but through our product at “NGNHOMES. NG” , we offer a free portal that allows off-takers to know what they can afford, and help them to plan towards achieving that.

Having known what you can afford with your present money, you look for who can offer the service, and present the documents to the mortgage bank for confirmation. Our data evaluation uses the standard underwriting criteria for the country.

On how it benefits developers, let’s assume we go to any of the states in the country and we do this for 10,000 of the civil servants, we get to know who can afford a house of N10 million, N5 million or whatever price, and because it is digital, there is no much labour, but the developer knows that if he goes to any state to build, he already has a market of people that can afford houses within a particular price range, it provide developers with data to plan real estate investment.

What we see in some estates now, is that there are estates in the country where there is a mismatch between the products and the capacity to get the mortgage. Now, with this product, the developer do not have to go build blindly because he has the data, and he can pre-sale to targeted audience.

The next person that enjoys this product is the mortgage banker, who do not have the resources and do not need to go round the country to evaluate prospective off-takers. With this product, mortgage bankers can know that there are people in a particular place that can afford a product, so he will go and give them offers, knowing a developer that can also builds for that category of persons.

Government is the next beneficiary, government can now know that if the civil servants can give them one-third of their salaries, they can get affordable houses. I was in a state recently, having a meeting the head of service, ministry of housing , mortgage bank other agencies. And the Director of housing said the state was poor and they cannot afford houses of N7 million, N5 million.

Then when he finished talking I brought out my statistics for the state, I have done pilot off-takers affordability and mortgage evaluation for that state, and when I brought out the result everybody was shocked.

For investors, the statistics tell him what he can build and so he can

From the foregoing, it will appear that your targets are the civil servants?

No, but they constitute the bulk of the market. For now, they have more secured and stable salaries, but there also industries and corporate organisation that have stable salaries. The system depends on mortgage, so anything that makes mortgage more secured, benefits the off-takers. You don’t want to start a program and after a year the person loses his or her job and it is abandoned.

Every country need this system, because there will be no risk, you have already secured your risks before you start. In plateau state, where we did the research, we had both civil servants and bankers who got prequalified.

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What level of support have you got so far, and to what extent have you been encouraged or discouraged by it?

Acceptability of anything new is always a challenge, a lot of new businesses are products of several trials. Accepting it is not as easy, and the staying power is also a rare virtue. But my greatest joy today is that it has been accepted by the entire housing industry in Nigeria.

From the Mortgage banks, the family home fund, to individual mortgage banks, to developers etc, now all talk about off-takers affordability before they can give a loan.

But the icing on the cake for me, is that today the paradigm shift has been established, I see it as a National and patriotic service. It will benefit Nigerians and Africans at large. Even as I develop our commercial aspect, I see many things that we need to get started with because it is expanding.

We can actually with this method create a digital mortgage fund, for civil servants to key in. So, acceptability is 100 percent.

Even recently, the CBN issued a release to set up COVID-19 related intervention fund and the criteria for developers to come for such money is the off-taker affordability work already done, that is a direct acceptance of this concept.

Of course, when we started, we were considered crazy, that how can we be talking about mortgages before building, the model FMB was using was to build a house first, then people buy. Some time ago, at the FMB Management retreat, I explained that we need to rejig the NHF and EDL, but they built first with EDL before looking for subscribers to pay. That is why we have a lot of empty houses, in fact there are huge unoccupied estates in this country and deficits because we were not using this method so there has been acceptability.

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Friday 14 August 2020

BUSINESS DAY

INTERVIEW Federal Government should grant tax rebates for SMES to grow, says Lola Adedeji As the national economy groans under the yoke of Covid-19 pandemic that has occasioned lockdowns in all industries, small and medium size enterprises are increasingly finding it difficult and challenging to operate due to taxes and multiple taxations. Consequently, players in the sector have become more than ever concerned on the fate and future of their businesses. In this interview, General Manager of Amber Energy Drink Ltd, LOLA ADEDEJI, a serial entrepreneur enjoined the Federal Government to come to the rescue of SMEs by granting them tax rebates and curbing multiple taxations. She spoke on other industry issues as well. Daniel Obi reports. Excerpts How do you assess Nigeria’s energy drink market where Amber is playing? he Nigerian energy drinks market, is, no doubt, a very big market; it is one that can accommodate more players. Nigeria’s energy drink sector is a lucrative industry with market research fore-casting a yearly consumption growth of over 6.5% by 2022. This is slightly an increase in the 5% annual growth experienced between 2014 and 2016, which made the average consumption to be about 25.5 liters according to the World Health Organization (WHO) report January this year.

The questions would then be who are you targeting and what are you delivering? So, it is the best market and I think that if you understand who you are targeting, where you are going, you will play perfectly well in it.

So, who are you targeting and where are you going with Amber brand?

We are targeting the man; woman or girl who understands quality; who understands what it means to have a healthy lifestyle.

The market is very competitive; are you ready to play and, if yes, how ready are you?

We are ready to play. For us, we have done everything possible; we have even gone the extra mile to which many other companies cannot go to prepare ourselves.

We have taken our time to study not just the market but also who our consumers are, and we have decided that every step of the way, Amber will meet the needs of that consumer. So, if you say it is competitive, yes it is. To ask if we are ready to play , yes we are. So, as we unveil, as time goes on you will see the wonders of Amber.

What do you perceive as challenges in the market?

One of the biggest challenges in the Nigerian market is that quality is not what a lot of Nigerians understand. For instance, for an energy drink, the first question they ask is “Is it cold? How much is it? Is it sweet? Is it bitter? These are their four main questions. On our part, we have taken our time to come up

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Lola Adedeji

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‘

With the Nigerian business experience I learnt that every challenge is there to teach you something; not that it is not going to break you down temporarily but you will definitely come back stronger

‘

with the Amber brand. Besides answering all those questions it also nourishes the body. The challenge is communicating to the average Nigerian why this is the best option for him/her. That is what we have taken out time to study and find ways to get to them easily. Once they have it or they come in contact with the brand, every step of the way they are being informed about the good things about the brand and why they should take Amber as their preferred brand. It will take time; but we will get there.

What are the unique selling points of Amber?

Just for the lay man; let’s assume that you like coffee and you can have three cups of coffee and feel like you have had enough of it.

But with Amber energy drink, you will have three Cans of it, and the total caffeine intake is equivalent to that of one strong cup of coffee.

However, with one Can of Amber you are energized! We played with the caffeine level; we introduced Guarana which is natural caffeine.

It will boost you naturally without being detrimental to your heart or to your liver, but it will give you the

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boost that artificial caffeine will give. Mind you, I am not saying that there is no artificial caffeine in it at all; but the quantity is reduced. We also packed it full with vitamins and nutrients that would help to energize your body. For instance we all know that sugar is an energiser but too much of it is a death trap; These are the things we took into consideration when creating a Can of Amber, such that even if you decide to take three Cans a day you are still within limit. It gives you a better taste; it gives you a lasting impression; the Can is beautiful. And it’s also going to meet with some of your nutritional and economic needs.

But, then, I don’t want to give out all our secrets. But it will meet all your needs when you become a loyalist to Amber because it is not just refreshing you, it also builds your energy and gives you a better quality of life What has been your experience doing business in Nigeria?

First of all, I would say that the Nigerian market is not for the faint hearted. If you want to do it you have to do it. With the Nigerian business experience I learnt that every challenge is there to teach you something; not that it is not going to break you down temporarily but you will definitely come back stronger. And over the years I have learnt that every time there is something blocked, when I go back and look at it properly, there is a solution in it. So, using this theory, there are many things people are scared of. Most of the time fear is a function of the mind, it’s not reality. That is how I see life. So, for me every time something shows up, I sit down and look at it properly. You take self away from it with business, self means emotions, because we all have our fears; once you are able to push past that, that means, nothing is impossible, absolutely nothing.

What is your take away from COVID-19, which would guide your business strategies going forward?

For me, it reminds me that emergent strategies are very important. Don’t ever think in your mind that the strategy I have is the @Businessdayng

best and will remain so forever. It has thought me to always think. I always think; but it has made me to go back thinking and to find details.

I am very open to new advice; but you have to be more open because COVID-19 thought us that you don’t know until you know or you think you know. And you may not even know. And that at every time you should be willing to be fluid but don’t lose your core. When we began the year, we had a strategy. But oh with Corona virus pandemic, we said this is what we have. So we have to tune it to what is happening now to get the same result. So, COVID-19 opened my mind and I faced one of my biggest fears which is staying at home and not doing anything. I couldn’t imagine it. I am always traveling. I am someone that is so used to being busy. I travel a lot and in four months I haven’t gone anywhere. Even at that, I am a very smiling person who wants to be in the midst of people; but now you can’t hug and things like that. It also showed compassion for people. Even if I have been compassionate, I now have a bit more compassion for people. Now I pay closer attention to people, to my staff, etc. It opened up that human side that I knew I had but I didn’t know the depth of it.

Advise to the Federal government on how to support businesses at this time?

I think they should support businesses, by looking at tax rebates for Nigerian brands whether it is produced here or elsewhere but it is marketed in Nigeria and it is for Nigerians. For instance, Amber is produced in South Africa but you see if the federal government has provided us with enabling environment production in Nigeria is good.

However, to produce the quality we need, certain raw materials which were imported from all over the world to ensure that every Can has top quality. Now bringing it down here, the first issue we have is with the ports, in the process of clearing, some of our things have been vandalized. So, it is safe to bring the finished products in Cans. Nonetheless, over time, our plan is to produce Amber in Nigeria at some point; but when I cannot tell you.

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Friday 14 August 2020

BUSINESS DAY

LEADINGWOMAN Sola Adesakin, your personal and finance coach responsible for guiding your pecuniary involvements Kemi Ajumobi

S

ola Adesakin is a multi-dimensional author, speaker and finance expert, experienced and versatile chartered accountant with about 18 years hands-on experience on personal and SMEs finance. She is a personal finance coach, trainer and conference/seminar speaker.

Through her blog and The Smart Stewards Academy, (www.smartstewards.com), she has helped many men and women bounce back from stress to rest and from debt to wealth.

She holds a BSC in Applied Accounting from Oxford Brookes University, United Kingdom.

She is a Fellow of the Institute of Chartered Accountants of Nigeria (ICAN) and also a Fellow of the Association of Chartered Certified Accountants of the United Kingdom (ACCA). She is a Member of the Chartered Professional Accountants of Canada (CPA) and she also holds an MBA from the Edinburgh Business School (Heriot-Watt University) Scotland.

Sola is the Managing Partner of BookSmart Financial Solutions; an SME friendly Accounting firm and also the Founder and Lead Coach of Smart Stewards; a platform for teaching sound principles on personal finance management especially for women.

Through the Smart Investment Club, she has helped many Africans (mostly Nigerians), living across the world, jumpstart their journey to financial freedom using investments as a tool and they have jointly invested over $2m in just about 18 months.

She has authored 8 books, her latest being “Fit to Fly Financial Plan,” .Other books authored by Sola, include, “May I Have My Money,” “The Real Profit,” “40 Frugal Rules For Your Journey To Financial freedom” and “A Practical and Pragmatic Guide For Wealth Management.” Her books are available on Amazon (in digital and paper back formats) and other leading book distributors. She is a recipient of the Women X Scholarship, an initiative of the World Bank and Pan Atlantic University for Female Entrepreneurs. She is happily married with children.

Growing up and influence till date I am grateful for the input of my parents who provided the motivation and financial support for who I have become today. I remember my mum bought my ICAN forms a few years before I would even be ready to start writing the qualifying examinations. She kept the forms in her wardrobe and kept telling me about the need to study hard. Little wonder I qualified as a Chartered Accountant less than 2 years after I left the University. My Dad supported me by financing my education all the way to my very first professional qualification (I have got quite a number of them today).

Adesakin

Why the passion for Personal and SME Finance?

I qualified as a Chartered Accountant about 18 years ago and for long enough, my personal financial state was nothing to write home about. My finances were scattered and I was always unhappy about that. I made money mistakes and lost money a few times before I realised that financial literacy was totally different from getting formal education. While schooling refines our minds, financial literacy refines our financial minds increasing our aptitude - and helps us make intelligent money decisions.

My passion for personal and SME/business finance emanated from the lessons I learnt from my Dad’s business. Despite the injection of funds into the business through a loan from the bank, mismanagement of funds and pilferage led to the collapse of the business. In a book I wrote about 2 years ago titled The Real Profit, I drew a lot on the lessons from this experience for the benefit of today’s business owners. As I proceed with active coaching engagements for this group of individuals, I am quick to share how best they can avoid some of those mistakes by putting the right structures in place.

Smart Stewards Academy Smart Stewards is a platform established to provide financial literacy resources and tools to people of different age categories and who are committed to attaining financial freedom. We have several expressions of this platform with www.businessday.ng

uniquely different structures and functions. The Smart Stewards Academy is the learning hub for Smart Stewards where we have an array of courses on personal and business finance, as well as talent and resource management.

There are self-paced short courses that teach financial management, investing and more. We also have group coaching courses, usually with a duration of between 4 - 6 weeks, for those with that learning experience preference.

The Smart Investment Club The Smart Investment Club is one of the arms of Smart Stewards founded in November 2018. It is an informal club with members from about 13 countries (so far) who pool funds together to invest in viable opportunities. We have invested about $2m in various local and global opportunities across different asset classes.

Advice for businesses in times like this 2020 has been such a peculiar year. It has been quite disruptive, yet distinctive at the same time.

Some businesses have failed, while others have experienced immense expansion. In my opinion, the three things that will further differentiate businesses at this time are: Knowledge, Technology and Collaboration.

Spend this time improving on your skills and business propositions. Work on your structures, position yourself in the digital space, acquire digital and e-commerce skills and finally, collaborate with others.

From your interaction and observations, would you say the

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average Nigerian understands the importance of savings and investments?

The dynamics of personal finance and literacy have changed over the last few years with the advent of financial technology platforms and increased awareness created by personal finance coaches and tutors. I see a lot more people getting interested in how they can make, manage and multiply their resources. It’s however important to mention that it is not enough to seek literacy; you must be willing to put in the efforts and cultivate the right habits. There is the popular personal finance saying that goes thus: Personal Finance is 20% knowledge and 80% habits.

It is not enough to know; you must be willing to do, too.

What have you mostly observed this season with your clients and also those who are not your clients?

A lot of people are looking for a quick way out, taking the “fastest route” approach to building wealth. Many want to invest in opportunities that will return 300% in 1 month and thereby, find themselves falling prey to ponzi schemes. My clients, though, know that wealth building is a marathon and not a sprint. It may take more time, but it works.

Learn the principles and reap the rewards.

In what ways can people make money despite the challenges of the season?

Upskill, reskill, become more versatile, embrace technology and be ready to learn. There are new challenges coming up each day. So, position yourself as the solution to these challenges and people will readily hand you their money.

What were the challenges you faced when you started sharing with people on finance and from then till now, what has changed?

The main challenge revolved around the psychological beliefs that people had about money. For example: it takes money to make money, you have to come from a wealthy home to get wealthy, you have to be corrupt (especially in Nigeria) to build wealth, and so on. These couldn’t be further from the truth!

Becoming wealthy first of all happens in the mind. You must be positive about finances, about the fact that you have what it takes to build wealth and that life will reward your efforts. In recent times, I have seen a lot of people change their minds and come to embrace these truths.

At what age should parents begin to encourage and teach their children about financial matters?

As early as possible! As soon as these children can wield the power of choice, teach delayed gratification, contentment, teach about avoiding wastage, teach them about how money gravitates towards value and encourage them to maximise their talents. @Businessdayng

In doing this, you build the foundations necessary for a fruitful financial life.

How are you balancing work and family?

I am grateful for a very supportive husband who allows me to soar. For me, I tend more towards life integration than balance. My efforts are strategically targeted at maximising my time and resources such that everything works well, with all dimensions to my life getting the right amount of support and attention per time. At all levels, also, I have put support systems in place. An extra hand here and there goes a long way in making the journey easier.

What are your personal and professional challenges?

The absence of the right social and economic infrastructure that will allow for growth and development at all levels. By God’s grace, though, I am committed to overcoming the identified challenges for the benefit of myself and humanity at large.

If you were asked to advise the Nigerian government on our spending and borrowing, what will you say?

For a moment, think of Nigeria as a human being. Now, can you imagine a 60 year-old man who does not have a clue about being financially free? A 60 year-old that is still being spoon-fed, still being bathed, still being rocked to sleep?

Ideally, a 60 year-old should be able to boast of a net-worth and legacy for generations to come.

But, all hope is not yet lost, if this 60 year-old is not there yet. She just needs to begin the journey.

So, to the government, I will encourage that our spending and borrowing be directed towards acquiring generational assets rather than towards consumption. That way, those coming ahead who will inherit these debts will gladly make the sacrifices necessary to pay them off in good time.

If you stood in front of a sea of Nigerian youths, what would you say to them?

My fellow Nigerian youths, GRIP your finances. This is so crucial. Pay attention to: G: Growth (Commit to self-development), R: Reading (Take responsibility for continuous learning.), I: Influence (Be careful who you allow to influence you) and P: Power of Many (Collaborate with others, especially now.)

You are uniquely talented.

So, appreciate every good thing you have. Everyone has fears and insecurities. Even the strongest and bravest do. But you must never allow those fears to gain the upper hand. Time is one of your best resources, so use it well.

Learn as much as you can. As well, celebrate those who are winning and collaborate wherever you can.

Final words No matter where you are on the journey to financial literacy and freedom, just ensure you begin and don’t stop. Soon, your results will be evident, providing you the fuel you need to continue along that journey. I believe in you!

Friday 14 August 2020

BUSINESS DAY

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MoneyInsight Here’s why DeFi is getting attention from crypto investors FRANK ELEANYA

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n recent weeks, Bitcoin has been the sweet spot of the cryptocurrency market for many people looking to make an extra income, especially as the bullish run seems unabated since June. However, it is not the only part of the market getting all the attention.

Aside from some altcoins which have leveraged the bitcoin run to advance their market values, investors have also increasingly been writing many cheques in the decentralised finance ecosystem also known as DeFi. An August report by Luno in partnership with A rca n e Re s e a rc h d e scribed the attention in the DeFi ecosystem as a “wild summer” as yield farming frenzy has driven huge amounts of cash into the ecosystem.

What is DeFi? It refers to a movement that aims to create an open-source, permissionless, and transparent financial service ecosystem

that is available to everyone and operates without any central authority. The users would maintain full control over their assets and interact with this ecosystem through peer-topeer (P2P), decentralized applications (dapps).

Put differently, DeFi is the notion that crypto entrepreneurs can recreate traditional financial instruments in a decentralised architecture, outside of companies’ and governments’ control. One

of its major inspirations is Tether’s supposed failure to address financial corruption. In 2019, Bitfinex was accused of using Tether, a dollar-backed cryptocurrency, to cover up $850 million that went missing.

The first original DeFi applications are bitcoin and Ethereum, this is because both are controlled by a large network of computers, not any central authority. While bitcoin is treated like gold, as a

store-of-value investment that protects against inflation, Ethereum has been instrumental in helping startups crowdfund their operations.

Dai is another DeFi application that is popularly used. According to data, about 21,000 people hold the asset. In early April, it hit a peak number of daily transactions at 13,490, up from less than 500 average daily transactions in the first few months after it was launched in 2017.

MakerDAO is the decentralized credit platform on Ethereum that supports Dai, a stablecoin whose value is pegged to USD. Surge in DeFi lending Crowdfund or open lending is where DeFi has had a major breakthrough as it has become one of the most popular types of applications that are part of the DeFi ecosystem. Advantages include instant transaction settlement, the ability to collateralise digital assets, no credit checks, and potential standardisation in the future.

There has been a surge in entrepreneurs choosing this method to raise money for their business.

Aave, a noncustodial lending protocol reportedly issued $138 million in loans with zero collateral in June 2020. In the last week of the same month, DeFi flash loans grew by 809 percent as the protocol Aave was issuing anywhere between $80 - 100 million in flash loans per day. By August Aave’s market size was at $662 million.

To be sure, the word “Aave” is a Finnish term to describe a ghost, as the noncustodial platform

allows for lending interest rates to be guided by algorithms directed by the supply and demand. Flash loans are used for significant arbitrage opportunities and they allow people to obtain handsome loans without collateral.

The report Luno showed that the DeFi lending market has seen the largest growth, accruing a total of $2.9 billion in total value locked (TVL) with MakerDAO accounting for $1.5 billion of the value.

Currently, the billion or so dollars tied up in DeFi pales in comparison to the trillions of dollars in traditional, centralized finance.

But, the excitement of rapid growth and the possibility of meaningful investment returns in a low interest rate environment are starting to pull some real money away from traditional investment.

DeFi is more than lending.

It incorporates other pieces including derivatives, stablecoins, asset management, insurance platforms, prediction markets, KYC and identities; infrastructure, and decentralised exchanges.

LEAP Africa leads social change effort through Youth Day of Service STEPHEN ONYEKWELU

L

E AP Africa has launched a yearly Youth Day of Service campaign designed to offer young people and corporate organisations in Nigeria the opportunity to transform society through series of projects.

The ‘Youth Day of Service’ (YDoS), is an actiondriven social impact campaign, which would take place on August 12th, 2020 and the days following, as a way of commemorating the ‘International Youth Day. YDoS invites young people and youth-focused organisations across sectors and locations around Nigeria to participate in social change projects that are targeted at one of the sustainable development goals.

Nigeria’s Ministry of Youth and Sports Development has endorsed the initiative.

Participants will carry out physical projects or

active virtual advocacy in different locations as either project initiators or volunteers on existing projects listed on the YDoS online portal, https://yds. leapafrica.org/projects/.

“In the context of the SDGs, this is the decade of action. The Youth Day of Service provides young people with the opportunity to carry out different projects in communities across Nigeria in line with the SDGs,” Femi Taiwo, executive director LEAP Africa said during press conference announcing the YDoS campaign.

With only a decade to reach the global goals, LEAP Africa is committed to building the capacity of young people as ready talents for the actualisation of the SDGs. “The Youth Day of Service presents us with a unique opportunity to mobilise the efforts, energies, creativity and agency of young people across the board; and to rally an ecowww.businessday.ng

system of like-minded organisations to support and advance efforts towards localising and achieving the SDGs,” Taiwo said.

It has become important for the private, public and development sectors

to forge partnerships that will transform the situation of Africa’s youth.

“Our experience at with over a million students and alumni at Junior Achievement Africa (JAN) has shown that when young

people are given an enabling environment, they can start businesses that solve social problems,” Oduolayinka Osunloye, director Marketing & Innovation, JAN said at the LEAP Africa’s YDOS media event.

L-R: Tayo Olosunde, executive director, MindtheGap; Oduolayinka Osunloye, director, Marketing & Innovation, Junior Achievement Nigeria; Femi Taiwo, executive director, LEAP Africa; Molade Adeniyi, chief executive officer, West Africa Vocational Education at a joint press conference organised by LEAP Africa to announce the Youth Day of Service campaign. https://www.facebook.com/businessdayng

@Businessdayng

Enabling prosperity for young people has become a priority for global policies including the SDGs. Partnerships among organisations offer viable pathways in realising these aspirations.

“Driving partnerships is our strength and this is SDG goal 17 we are focusing on. We will amplify, accelerate and give each YDoS project a voice,” Tayo Olosunde, executive director, MindtheGap said.

The YDoS is an open initiative that meant to foster strong collaborations for like-minded individuals and organisations The Sustainable Development Goals (SDGs) are a collection of 17 global goals designed to be a “blueprint to achieve a better and more sustainable future for all.”

The SDGs, set in 2015 by the United Nations General Assembly and intended to be achieved by the year 2030, are part of UN Resolution 70/1, the 2030 Agenda.

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Friday 14 August 2020

BUSINESS DAY

PERSONALITYPROFILE

Mazi Sam Ohuabunwa: Wired to Lead

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aving been born in August of 1950, Samuel Iheanyichukwu Ohuabunwa will be 70 tomorrow. Humble and God fearing, Mazi, as he is fondly called, is liked by friends and respected by peers for his selfless and untiring service to Nigeria.

Ohuabunwa loves writing and was for years a columnist for BusinessDay. Tomorrow, he will call friends together on Zoom to honour God and also to launch his latest book, “Wired to Lead - life lessons from many years of organisational leadership.”

It is a 214-page book that begins with comments by four eminent Nigerians - Prince Juli AdelusiAdeluyi, the former minister of health who turned 80 last week; a retired Professor of Political Science, Uma O Eleazu, an elder of the Presbyterian Church of Nigeria; Nath C U Okoro, and retired General ML Agwai. The forward is written by Vincent Anibogu, director-general, Institute of National Transformation.

The fifth comment comes, fittingly at the end of the book and it is that by Christopher Kolade, the respected former Nigerian Envoy to the UK, who notes that Mazi “committed himself, early enough to the faith that assured him that, indeed, he could do all these things ‘through Christ, who gives (him) strength’.”

In the opening Chapter, titled Experiential Domain, the author talks about his love and desire for work driven by an innate desire to contribute to changing things and making a difference, and underpinned by an unusually high dose of social conscience.

In Chapter 19, Mazi recounts the many awards he received while in service, including three from three different presidents of Nigeria. But, Mazi is quick to ascribe his attainments in life to the Grace of God. Founder of Sam Ohuabunwa Foundation For Economic Empowerment, Mazi Ohuabunwa has transversed the business landscape, and at different times has been at the head of seven different companies and groups including the position of chairman and chief executive officer of Pfizer Specialist Limited; chairman Nigeria Economic Summit Group; president at Nigeria Employers Consultative Association; chairman and chief executive officer of Pfizer Products plc, and president Nigerian-American Chamber of Commerce.

Mazi Ohuabunwa is the current president of the Pharmaceutical Society of Nigeria (PSN).

He received an undergraduate degree from Obafemi Awolowo University and has been honoured twice by the Nation - first as Member of the Order of the Niger (MON), in 2001, and then Officer of the Order of the Federal Republic (OFR), in 2011. He has also received the National Productivity Order of Merit (NPOM) Award, given in 2018.

Sam Ohuabunwa

Sam is a proven leader, Lay Minister, social worker, entrepreneur, nation builder, columnist and author - all rolled into one, as he credits all his successes to the Grace of God. Mazi Sam Ohuabunwa first studied pharmacy at the University of Ife (now OAU), graduating in 1976. He had a postgraduate training in Business and Organisational Management at the Columbia University, USA, and he is an alumnus of the Lagos Business School (LBS).

He joined Pfizer Products plc

‘ Sam is a proven leader, Lay Minister, social worker, entrepreneur, nation builder, columnist and author - all rolled into one, as he credits all his successes to the Grace of God www.businessday.ng

in 1978 as a Pharmaceutical Sales Representative, rising to becoming the chairman/CEO in 1993.

He was tested in 1997 when he

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had to lead the Management Buyout of Pfizer Inc. shares in Pfizer Products plc, transforming the resultant company - Neimeth Inter@Businessdayng

national Pharmaceuticals plc, into a medium-sized Nigerian Research and Development (R&D) Based Pharmaceutical company.

He voluntarily retired from the company after 33 years of service.

Eighteen of those years he spent on the CEO level.

Mazi Sam Ohuabunwa is a Fellow of several professional organisations including the Pharmaceutical Society of Nigeria (FPSN), the Nigerian Academy of Pharmacy (FNA. Pharm), the West African Postgraduate College of Pharmacists (FPC. Pharm), the Nigerian Institute of Management (FNIM), the National Institute of Marketing of Nigeria (FNIMN), the Nigerian Institute of Public Relations (FNIPR), the Institute of Management Consultants (FIMC), and the Association of Corporate Governance Professionals in Nigeria (FCGP).

He was a member of the Presidential Advisory Council (PAC) and served as a member of the Presidential Committee on Subsidy Reinvestment and Empowerment Programme (SURE-P).

Mazi Sam Ohuabunwa, a Christian and Knight of Saint Christopher (KSC) of the Anglican Communion, serves as the National Coordinator - Strategic Operations of the Full Gospel Business Men’s Fellowship International (FGBMFI), Nigeria.

In addition to his long years of work in the private sector, he has had exposures to the working of the public sector. He was chairman, Governing Council, Abia State Polytechnic, chairman of Board of Abia State University Teaching Hospital, currently chairman, Governing Council of the Abia State PublicPrivate Partnerships and Investment Promotion Agency, and chairman, Board of Trustees (BOT), Gregory University, Uturu (GUU).

Throughout his career, Sam participated in several activities and was a member of several delegations that worked to promote the interest of his Profession and Society.

For his active participation and service in the profession and its activities, Sam has been severally honoured by the Society. Sam also received the Merit award of Lagos State PSN (1993); Award of Excellence by PSN Enugu (1994); Eminent Persons Award of the Nigerian Association of Industrial Pharmacists (1996); Professional Excellence Award of the Association of Lady Pharmacists (1997); Award of Excellence of PSN, Ebonyi State (1999); Icon of Pharmacy by the National Association of Industrial Pharmacists (2011).

He was honoured with the Fellowship of the Society (FPSN) in 1994 and has been invited to the prestigious fellowships of the West African Post Graduate College of Pharmacists (FPC.Pharm), and the Nigeria Academy of Pharmacy (FNAPharm). He is the life Patron of the Pharmaceutical Association of Nigerian Students (PANS) National, and has supported PANS yearly since graduation in 1976.

BUSINESS DAY

Friday 14 August 2020

21

Health Business&Life Experts highlight challenges in endometriosis patient care Anthonia Obokoh

F

ound in a large number of young girls and teens with pelvic pain and painful periods, endometriosis does not manifest before the onset of menstruation.

Endometriosis is a condition where tissue similar to the lining of the uterus (the endometrial stroma and glands, which should only be located inside the uterus) is found elsewhere in the body.

Endometriosis is one of the most common gynaecological conditions but there is a lack of awareness about the disease and its exact causes are still unknown. Over 621 medical experts from Nigeria and other countries across Africa, the Middle East and Asia recently came together to learn how to tackle and advocate for better management of infertility in patients of endometriosis.

According to Abayomi Ajayi, a fertility expert and managing director at Nordica Fertility Centre some patients try to treat suspected cases of the medical condition with certain medications, making symptoms to avoid undergoing surgical procedures.

“One of the ways to tackle the scourge of endometriosis is by ensuring that doctors are equipped with the necessary knowledge and skills to diagnose and manage endometriosis properly,” Ajayi said. “We have to understand the biggest problem in endometriosis because more than 64 percent of cases endometriosis occurs before patients

are 30 years old.” This means knowing about endometriosis in infertility and Assisted Reproductive Technology (ART)”.

There are many controversies about what causes endometriosis, its prevalence and symptoms, up to its effect on fertility, and how to manage the condition.

Ajayi explained a study published in February 2020 the issue of prevalence is always either over or underestimation of endometriosis.

“We don’t even know the prevalence of this case or dynamic in our community, so it depends on where you’re looking at it. If it’s a hospital-based signal it is likely to be overestimated. If we take communitybased fever it is likely to be underestimated. And so that’s one of the things that we faced with endometriosis,” he said.

The fertility expert also said that looking from a diagnosis point of view on endometriosis; he noted that data show approximately 25 percent of fertile women have endometriosis.

However, citing another paper from Israel which looked at about 2 million people, one-

third of women who have infertility actually will also have endometriosis.

“We do not seem to agree on the prevalence and there is no symptom that’s particular for endometriosis. We sometimes call it a masquerade of a disease and it has caused a lot of delay in diagnosis in the majority of people, especially in the developing part of the world.

“Even in developed parts of the world, we know that they have about four to seven years of delay in diagnosis. Majority of these people are misdiagnosed, mislabeled and misunderstood,” he said.

According to Abayomi, in my centre (Nordica), we did a 10 years review of what the symptoms of endometriosis are like and what we saw was that this was published in the Journal of endometriosis and pelvic pain disorders in 2016.

“We saw that 73.8 percent of our patients had dysmenorrhea, and so we thought that was a predictive symptom of endometriosis then interestingly, 62.5 percent of this patient had severe endometriosis based on laparoscopic evi-

dence. And also, interestingly, about 52.5 percent of this patient had blocked either one or two tubes.

“And therefore, we saw that there was a big need. Of course, it was not surprising the majority of them had severe endometriosis and also the tubes were involved. Therefore, ART is a very important aspect of the management of endometriosis, at least in the population that we reviewed,” he explained.

He added that the relationship between endometriosis and infertility is still unknown, noting that there is no causal relationship and there is a lot that might be responsible for the infertility that we’ll find in endometriosis.

“The most appropriate treatment for endometriosis-related infertility is still controversial.

Diagnostic laparoscopy should be discouraged in endometriosis,” he urged.

Also speaking at the webinar, Prakash Trivedi, a consultant gynaecologist and pioneer of hysteroscopy surgery and laparoscopic suturing 3D Light in Asia said that endometriosis is a subject which is the disease of the millennium.

“We have to understand that nobody has understood endometriosis and there are many unanswered questions.

Management of endometriosis starts much early, but we are not always in a hurry to operate on young patients because if you operate at 19, there might be a recurrence at 23. So you have to be very concerned about when you will operate on an adolescent for this complication.”

How public health experts debunk COVID-19 misinformation in Nigeria ANTHONIA OBOKOH

S

ince the first confirmed case of COVID-19 in Nigeria, there has been an overflow of information on social media, websites and mainstream media about the virus.

The increased access to the information has led to a proliferation in sources of information, with the attendant consequence that it has enabled the spread of misinformation and fake news, says public health experts.

According to Vivianne Ihekweazu, managing director at Nigeria Health Watch, through Meedan’s public health ex-

perts, Nigeria Health Watch is filling the misinformation gap in Nigeria by debunking COVID-19 rumours in a timely manner. For Nigerians to stay safe and protect themselves from COVID-19, they need to be accurately informed.

Meanwhile, through a project supported by Meedan and launched in June 2020, Nigeria Health Watch counters misinformation and fake news about COVID-19 in Nigeria.

“Nigeria Health Watch leverages on Meedan’s team of public health experts who fact-check health rumours, responding and debunking them. The evolving nature of information about the virus has created a vacuum that is

being filled with many unknowns, as a result leaving people vulnerable to misinformation and disinformation,” said Ihekweazu.

Ihekweazu explained that Nigeria Health Watch uses social and traditional media to disseminate the debunked misinformation in an engaging and informative approach.

This is done by producing multimedia messages to reach different target audiences and especially communities at the grassroots.

“The platform that Nigeria Health Watch provides is important because it provides feedback for the rumours that are circulating around COVID-19,” she added.

Similarly, Meedan’s experts have debunked several common rumours, and pieces of misinformation on COVID-19.

This includes the myth that malaria and COVID-19 are the same. This is particularly important as malaria cases peak at this period in Nigeria and both diseases have similar symptoms but have different modes of transmission and a misdiagnosis could have serious repercussions, harming people’s lives.

Other rumours that have been debunked include the potential for COVID-19 reinfection, drinking of alcohol to prevent COVID-19 and wearing gloves to protect against COVID19.

Kwara Gov applauds CACOVID for rallying support to vulnerable households in Nigeria SIKIRAT SHEHU, Ilorin

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bdulrahman Abdulrazaq Kwara, State Governor,has said the organised private sector played strategic roles in Nigeria’s campaign against COVID-19 pandemic.

Abdulrazaq, however, commended their efforts which he said included the setting up of isolation centres, medical support to various states, and the recent donation of food palliatives to vulnerable households across the country.

The Governor spoke in Ilorin the state capital, on Tuesday at the flag off of the distribution of the food palliatives donated by the private sector-led Coali-

tion Against COVID-19 (CACOVID) and the Central Bank of Nigeria (CBN) to the state.

A statement by Rafiu Ajakaye, chief press secretary to the Governor, Abdulrazaq says: “We are very appreciative of the efforts by CACOVID in the fight against COVID-19.

This is not the first. They were with us at the isolation centre where they made donations of medical supplies and other things. The food palliative is another move. We are really grateful for their interventions to governments across the country.”

The CACOVID food palliatives to Kwara were 27,360 bags of semolina; 27,360 bags of sugar; 27,360 cartons of pasta; 27,360 bags of salt; 27,360 www.businessday.ng

(10kg) bags of rice; and 54,720 cartons of noodles.

Abdulrazaq promised that the government would work with CACOVID team to ensure that the palliatives get to the intended beneficiaries, as he commends the government’s committee led by Emir of Shonga Haliru Yahya and the civil society organisations for the great job done in the distribution of government’s palliatives.

“I must mention Aliko Dangote and others for this feat.

They have spent billions of naira to distribute food to all the states. But they understand that they cannot give foods to all Nigerians and that is why it is targeted at the vulnerable families. We are working with

them to ensure that it goes to the ward level.

“Unlike what we distributed earlier, this is for (specific) households and I want to appeal to our people to understand that. This is not the time to say what I got is too small.

Whatever you get, please say Alhamdulillah. CACOVID has a template and we will allow them to make use of their template for the distribution. We will follow their template. I sincerely thank the Emir of Shonga, Yahya Haliru, other members of the state committee, and the civil society organisations for the way they handled the distribution of the state’s palliatives.

I also thank all the traditional rulers for the way they handled COVID-19 issue.”

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Tips for pregnant travellers Executive Travel Health

Adeniyi Bukola Consultant Family Physician and Travel Medicine Physician Q-life Family Clinic qlifeadvisory@outlook.com.

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omen experience physiologic changes in pregnancy that requires special consideration when traveling. With careful preparation, however, most pregnant women can travel safely.

The pre-travel evaluation of a pregnant traveler should begin with a careful medical and obstetric history, with attention paid to gestational age and evaluation for high-risk conditions. A visit with an obstetrician should be a part of the pre-travel assessment, to ensure routine prenatal care as well as identify any potential problems.

The traveler should carry a copy of her prenatal records and physician’s contact information.

A review of the pregnant woman’s travel itinerary, including destinations, accommodations, and activities, should guide pre-travel health advice.

Pregnant woman must be knowledgeable on avoidance of travel-associated risks, the management of minor pregnancy discomforts, and recognition of more serious complications which include: Bleeding, severe pelvic or abdominal pain, contractions or premature labor, premature rupture of the membranes, symptoms of preeclampsia (unusual swelling, severe headaches, nausea and vomiting, vision changes), severe vomiting, diarrhea, dehydration, and symptoms of deep vein thrombosis (unusual swelling of leg with pain in calf or thigh) or pulmonary embolism (unusual shortness of breath) which require urgent medical attention.

Pregnant travelers should pack a health kit that includes items such as prescription medications, hemorrhoid cream, antiemetic drugs, antacids, prenatal vitamins, medication for vaginitis or yeast infection, and support hose, in addition to the items recommended for all travelers.

Pregnant travelers should consider packing a blood pressure monitor if travel may limit access to a health center with blood pressure monitoring available. It is very important that the pregnant woman is checked for immunity to infectious diseases, for example, hepatitis A and B, rubella, varicella, measles, pertussis; update immunizations as needed.

Before travel, it is advised she checks airline and cruise policies for pregnant women.

She should also carry a copy of medical records, letter confirming due date and fitness to travel and travel insurance.

The pregnant traveler is also advised to prepare for obstetric care at destination, arrange for obstetric care at destination, as needed, review signs and symptoms requiring immedi@Businessdayng

ate care which include: Pelvic or abdominal pain, bleeding, rupture of membranes, contractions or preterm labor, symptoms of preeclampsia (unusual swelling, severe headaches, nausea and vomiting, vision changes),vomiting, diarrhea, dehydration, symptoms of potential deep vein thrombosis or pulmonary embolism (unusual swelling of leg with pain in calf or thigh, unusual shortness of breath). Although travel is rarely contraindicated during a normal pregnancy, complicated pregnancies require extra consideration and may warrant a recommendation that travel be delayed.

Pregnant travelers should be advised that the risk of obstetric complications is highest in the first and third trimesters.

Obstetric emergencies are often sudden and life-threatening.

Travel to areas where obstetric care may be less than the standard at home is inadvisable.

For women traveling in the third trimester of pregnancy, it is recommended to identify international medical facilities capable of managing complications of pregnancy, delivery, a cesarean section, and neonatal problems.

Many health insurance policies do not cover complications of pregnancy or the newborn overseas. Supplemental travel health insurance should be strongly considered to cover pregnancy-related problems and care of the neonate, as needed. Evacuation insurance that includes coverage of pregnancy-related complications is also highly encouraged.

Pregnant women should be advised to wear seat belts, when available, on all forms of transport, including airplanes, cars, and buses. A diagonal shoulder strap with a lap belt provides the best protection.

The shoulder belt should be worn between the breasts with the lap belt low across the upper thighs. When only a lap belt is available, it should be worn low, between the abdomen and the pelvis. Most commercial airlines allow pregnant travelers to fly until 36 weeks’ gestation.

Some limit international travel earlier in pregnancy, and some require documentation of gestational age.

Pregnant travelers should check with the airline for specific requirements or guidance.

Cabins of most commercial jetliners are pressurized to 6,000–8,000 feet (1,829–2,438 m) above sea level; the lower oxygen tension should not cause fetal problems in a normal pregnancy, but women with preexisting cardiovascular problems, sickle cell disease, or severe anemia (hemoglobin <8.0 g/dL) may experience the effects of low arterial oxygen saturation. Risks of air travel include potential exposure to communicable diseases, immobility, and the common discomforts of flying. Abdominal distention and pedal edema frequently occur.

The pregnant traveler may benefit from an upgrade in airline seating and should seek convenient and practical accommodations (such as proximity to the toilet) and aisle seating so she can move about frequently. Loose clothing and comfortable shoes are recommended.

TO BE CONTINUED NEXT WEEK

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Friday 14 August 2020

BUSINESS DAY

Hotels Bristol Palace, the jewel in Kano hospitality

Top BusinessDay Partner Hotels Four Points by Sheraton Hotel (Oniru Chiefatancy Estate,Lekki) Tel: +234 1 448 9444

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

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o doubt, Kano is a city with different appeals to residents and visitors alike.

With its many tourism trappings, the ancient city is a great delight for tourists, culture and heritage lovers any day.

As well, it is a melting pot for business in the northern part of the country. With all these going for the city, Kano is a place to visit for obvious reasons.

However, the city is also very hospitable to visitors and does not lack in quality accommodation offerings for discerning guests.

But whenever you visit for either business or leisure, and need to rest your body, one hospitality outfit comes to mind.

Bristol Palace Hotel speaks volume of quality service, amid world class facilities and product offerings.

Set within the centre of Kano metropolis, about 8.3km from Kano Airport and 1.5km from Kano Zoological Park, Bristol offers well-appointed accommodation offerings comprising 114 rooms and suites spread across five floors.

As expected, the accommodation offerings with large living area, come in different categories and offer guests beyond a good rest, comfort and enabling environment amid all-day room service. They also come with modern amenities and different panoramic views, especially the Kano city landscape.

Moreover, the city hotel is an amazing home-awayfrom-home outfit, which indulges guests with the best of gourmet, entertainment, quality rest, balance of life and works, among other unique and value for money experiences.One reason to visit is the quality assurance sustained by experienced hands as the hotel is the brainchild of proprietors with over 18 years experience in

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

the hospitality industry.

Speaking on the hotel, Paul Murray, the general manager of the hotel, described Bristol Palace Hotel as a full-service hotel that accommodates the needs of all guests whether for leisure or business, private or corporate guests.

“We have come up to be among the Top 3 hotels in Nigeria, at a five-star level but offering prices like a three-star. We have great offerings and unique style of delivering our services, our food and giving guests wonderful experience here at Bristol Palace”, the general manager said.

A section of the hotel that delights guests most is the entertainment area, which is surrounded by soothing palms and provides a relaxing ambience for leisure seekers.

The area features a barbecue stand, shisha station, among others while drinks and food can be ordered from the restaurant as guests enjoy the ambience.

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As well, the entertainment area hosts a large swimming pool, which every guest is welcomed to.

While in the hotel, a team of culinary experts led

by Chef Hapiness, the hotel’s executive chef, effortlessly satiate your taste bud with a wide range of menu, including continental and local delicacies.

Also, the hotel spices guests culinary variety with its themed restaurants including; Dala, which overlooks the pool area and Chopsticks.

To ensure that guests keep up with their physical health requirements while lodging in the hotel, Bristol Palace Hotel has in place a fitness centre furnished with ultramodern gym equipment. It also offers aerobics classes with seasoned fitness instructors to further assist guests with their physical wellbeing.

The hotel also caters to the needs of its corporate clients with ultramodern conference facilities including; three multipur-

pose halls with maximum capacity of 400 guests theatre setting, two breakaway rooms, among other conference incentives.

Of course, the hotel opens its leisure facilities to corporate guests to unwind after a long conference, training or closed-door sessions.

Considering the tourism potential of the ancient city of Kano, the hotel also has a tourist package for “outof-towners” who would like to explore the wonderful sights of Kano – from the annual Durbar festival, the tie-dye wells, the hills, the old markets, and to the Zoological Park.

While health, safety and security are of great concerns for many would-be guests in the post Covid-19 era, the general manager, who has been in Kano for four years now, assured that Kano is safe from all forms of banditry and insecurity.

Most importantly, he reassured guests’ safety from the current health challenge posed by the pandemic.

“It is of foremost importance to follow the Covid-19 protocols. We have made a video, which we sent to all our corporate clients. We disinfect the hotel every month. We have our own designed face masks, sanitizers and gloves, and have continued day-to-day hygiene protocols, so that we can assure our staff and customers that they are in a safe environment”, he concluded.

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Lagos Continental Hotel 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

206 Exclusive Hotel Plot 206 Oladipo Diya Road Opposite Olympia Estate

By Games Village Second Gate Durumi2 Abuja

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

Radisson Lagos Ikeja #42-44 Isaac John Street, GRA Ikeja, Lagos

Southern Sun IkoyI Hotel Address: 47 Alfred Rewane Road, Ikoyi, Lagos Tel: +234 1 280 5200 / +234 1 280 0630 Email: ssikoyi.reservations@ tsogosun.com

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

Friday 14 August 2020

BUSINESS DAY

23

entertainment

Canon revolutionizes African film industry with high-tech cinema cameras ...unveils knowledge-sharing series Obinna Emelike

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s part of efforts at offering African filmmakers opportunity to improve on their productions and to share their stories to a global audience, Canon Central and North Africa (CCNA), a leader in imaging solutions, has unveiled its compact and versatile 5.9K CCNA nextgeneration professional Cinema EOS System cameras.

Regarded as the future of filmmaking, the new camera has attracted the attention of some African filmmakers. Impressed by the latest offering, Kunle Afolayan, Merzak Allouache, among other leading African film directors, have applauded the EOS C500 Mark II for elevating their latest productions.

Kunle Afolayan, awardwinning director, said, “I first saw the Canon EOS C500 Mark II at IBC 2019 and I was amazed at its capabilities.

Normally it is not a director’s place to tell a director of photography what kit to use, but I always wanted to shoot in 4K full-frame, and I knew that this camera would make it to the Netflix approved list”.

“Thankfully Jonathan

Kunle Afolayan, Nigerian film director. He shot Citation, his latest movie, with Canon EOS C500 Mark II.

Kovel, the DOP working on my new film, loved the camera, therefore, we were able to shoot Citation with the Canon EOS C500 Mark II, which gave us another level of authenticity and creative freedom.”

As well, Merzak Allouache, an Algerian film director, is also using the new camera for his latest film, as part of a technical partnership with Baya Productions.

Following a glittering 40year career with 22 films to his credit, 86-year-old

Allouache marks his come back with UNE FAMILLE, a new cinematographic masterpiece.

“The film benefited from the technology provided by Canon. The production team was provided with a Canon EOS C500 Mark II camera and a range of Cine Lenses and accessories so that the film could be shot entirely in 5.9K at 24 fps,” said Hamoudi Laggoune, Algerian cinematographer chosen to work alongside Allouache on the new film. “The camera

provides complete flexibility and freedom to choose the image formats, effects and lenses that are best suited to the filming conditions,” he added.

Also speaking on the new camera, Amine Djouhara, sales and marketing director, Canon Central and North Africa, disclosed that Canon’s continuous relationship with empowering the African creative market via innovative technology has supported the rise of Africa’s content.

“Our focus is on offering

leading industry know-how and award-winning cameras and lenses built for enthusiast and professional level creatives,” he said. “The Cinema EOS range is the perfect expression of form and function, exceptionally adaptable to virtually any production with its modular design, and we are excited to see what Africa’s talented filmmakers create.”

The new camera is offering Canon opportunity collaborate with Africa.

According to Afolayan, the Canon collaboration is a good development, and with it independent filmmakers can be empowered by technology to share their stories with a global audience.

Earlier, Djouhara unveiled the features and technology that make the camera truly the future of filmmaking. According the sales and marketing director, the latest model in Canon’s Cinema EOS Camera range features Canon’s newly developed Super 35mm 4K CMOS sensor and comes with 16+ stops of dynamic range, professional codecs in a compact, modular body.

For him, expertise and technical knowledge are at the heart of Canon’s innovative products, hence the latest in

the EOS range offers a customisable full-frame cinema camera experience that is built for creative freedom.

To help support all aspir ing and establishe d filmmakers during these challenging times, Canon will begin a three-month knowledge-sharing initiative with over 42 pro-video webinars called Canon Tech Talk Series for the film market in Africa. On August 11, the first webinar featured Canon’s Djouhara, alongside African film legends; Laggoune and Afolayan.

After the first webinar, the CCNA team will continue with a series of Canon Tech Talk webinars on changing the face of filmmaking, covering vlogging, streaming, colour science, postproduction, and a range of other film-making classes.

The remaining 18 webinars on beginner and professional courses would be in three languages (English, French and Arabic).

“During these challenging times, these series of webinars offer a virtual developmental tool to maintain the evolution of critical skills for continued and sustainable growth of the film industry”, Djouhara concluded.

Barely three weeks, Lockdown contends strongly for best BBNaija edition Obinna Emelike

B

ig Brother Naija is avidly watched by fans from 48 African countries who will attest that the show only gets better and more entertaining with each passing season. In the past three weeks since its premiere, Big Brother Naija Lockdown is already exceeding expectations.

On Sunday July 19, 20, housemates were locked down in Big Brother’s house after being quarantined for two weeks to ensure they were COVID-19 free. The first impressions of the housemates started emerging within the first few days, social media sleuths started to discover information about the housemates as they began to interact in the house.

Some of the things discovered were that Praise is engaged, Nengi is a former beauty queen, Prince was Mr. Nigeria in 2018, and that Laycon is a pretty talented rapper.

It has been three weeks since the show began, but

there are many spectacular things fans love about the Big Brother Naija Lockdown edition so far.

The housemates Since the show began, the housemates have been the source of major banter, memes, and laughs on social media. The housemates are an amazingly diverse bunch, and the consensus is nearly unanimous - these guys are probably the most entertaining set ever seen on the screens since the show’s inception.

Literally every housemate will remind you of someone you know or a situation you have previously encountered.

Kiddwaya is that guy who is very aware of the fact that he is too good looking for his own good. BrightO seems a sly for want of a better word.

He plays the game so well!

For three weeks, Kaisha is yet to unveil herself and that tells you something about her.

Ozo is the super nice guy who ‘friendzones’ you so nicely that you barely notice it.

Lucy is your loudmouth friend with a temper, who never holds a grudge. The review www.businessday.ng

could go on and on, but you understand already, right?

Challenges, games, and wagers The Big Brother Naija show is popular for giving the housemates innovative games that challenge their minds, talents, and their ability to think on their feet. The Lockdown edition is no different.

For the last wager task, the housemates were asked to put up a musical drama set in the 80’s, and their different talents were put to good use. Triktytee made for an excellent director, Vee showed her musical skills in overseeing the musical acts, and Tochi proved that he is a pretty good actor.

The Betway Arena Games are always hilariously inventive, and after three weeks of watching the show, all fans want to know is - who thinks up those games?!

Eviction Wahala The BBNaija format is not news to anyone - 20 housemates or so stay together in a secluded location for nearly three months, and the housemates with the lowest votes

from the viewers are periodically evicted.

In this season of the show, all the housemates are put up for eviction every week, except the Head of House and Deputy Head of House, whose positions grant them immunity. Viewers then vote for their preferred housemates, and then the rest of the housemates go into the Diary Room to tell Big Brother who they want to be evicted from the show.

So far, there have been two sets of evictions in the BBNaija lockdown house, and in an unexpected twist typical of how Big Brother likes to take us all by surprise, both evictions were double evictions, so four housemates have been eliminated so far.

The concept of evictions seems almost unfair; the housemates are allowed to bond and get accustomed to each other and then suddenly someone gets booted out of the door, but as Tochi said at the last Eviction Show, “it is what it is”.

Saturday parties The Saturday parties have

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been time for the housemates to blow off steam resulting from disagreements among themselves, or anxiety about being evicted. They always take the parties very seriously, dress to the nines, and come prepared to have a good time.

After the party, conversations about the housemates go on until well after midnight as social media users discuss the activities of the housemates.

Erica’s popularity grew from how hard she partied at the Saturday parties, while BrightO surprised the viewers when he showed us what kind of party animal he was. From the Saturday Parties, you also get a sense of which ‘ship is about to sail.

Head of House Besides the Head of House game, that seems to confound the housemates every week, it is clear that the personality of the HoH inevitably sets the tone for the other housemates during the week of their reign.

In the first week, the Head of House was Nengi. The housemates, flush from the excitement of having gained @Businessdayng

access to the BBNaija house, combined with Nengi’s breezy leadership style enjoyed a pretty cool first week.

Lucy’s more strident style in the second week led to several arguments and clashes between housemates and the failure of their wager task.

Ozo emerged as the Head of House in the third week, and his reign was marked by ‘round table’ discussions in the aftermath of arguments, and the housemates winning their first wager task.

Flirtations, love triangles and squares The show started out with 20 housemates, evenly balanced across both genders.

After a few days in the house, in true Noah’s Ark style, the housemates started to pair themselves up into couples. Lilo and Eric are the kind of couples you know the kind that get absorbed in each other and forget that any other humans exist in the world. Tolanibaj and Prince just started to sail their ship and viewers were extremely curious to see how that will go.

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Friday 14 August 2020

BUSINESS DAY

Harvard Business Review

ManagementDigest

Growth after trauma Richard G. Tedeschi

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hat good can come of this?

In times of crisis, people often ask that question. This year we’ve been hit by a pandemic that has caused hundreds of thousands of deaths and a global economic downturn. In the face of such a tragedy it might appear that the answer is “Nothing.”

However, at some point we will be able to reflect on the long-term consequences of this terrible time and what it has meant for us, our organizations and communities. Almost certainly those outcomes will include some good along with the bad. Psychologists refer to this phenomenon as post-traumatic growth.

Negative experiences can spur positive change, including a recognition of personal strength, the exploration of new possibilities, improved relationships and a greater appreciation for life. So despite the misery resulting from the coronavirus outbreak, we can expect to develop in beneficial ways in its aftermath. And leaders can help others get there.

Although post-traumatic growth often happens naturally, it can be facilitated in five ways: — EDUCATION: To move through trauma to growth, one must first get educated about what the former is: a disruption of core belief systems. For example, before the pandemic, many of us thought that we were safe from the types of diseases that endangered people in the past and that our social and economic systems were resilient enough to weather all storms. None of that was true.

So now we need to figure out what to believe instead.

As we move through the crisis, consider how you can reinforce the recognition that it may have a positive as well as a negative impact. For example, I know an information technology employee of a company that laid off most of its workers earlier this year. As one of the few to remain, she was forced to work in areas she’d never touched before, which was a struggle.

But she soon realized that, un-

encumbered by the usual bureaucracy and turf battles, she could ferret out inefficiencies and improve on procedures.

— EMOTIONAL REGULATION: To do any learning, one must be in the right frame of mind. That starts with managing negative emotions such as anxiety and anger. Instead of focusing on failures, uncertainties and worst-case scenarios, try to recall successes, consider bestcase possibilities and think reasonably about what you can do.

You can regulate emotions by observing them as you experience them. Physical exercise and meditative practices such as breathing also help. Employ these techniques yourself and share them to help others. Acknowledge that circumstances continue to be both challenging and frightening; then demonstrate poise under pressure.

— DISCLOSURE: This is the part of the process in which you talk about what has happened and is happening: its effects — small and broad — and what you are struggling with.

Articulating these things helps us make sense of trauma and turn debilitating thoughts into productive reflections.

As a colleague and a leader you should understand the varying effects the pandemic and the ensuing market volatilwww.businessday.ng

ity, layoffs and recession have had and continue to have on the lives of those around you. Start by speaking openly about your own struggles and how you are managing the uncertainty. You can then invite others to tell their stories, and listen attentively as these people locate their difficulties and come to terms with how their challenges and losses compare with those of others.

— NARRATIVE DEVELOPMENT: The next step is to produce an authentic narrative about the trauma and our lives afterward so that we can accept the chapters already written and imagine crafting the next ones in a meaningful way. Your story — and the stories of people you’re helping — can and should be about a traumatic past that leads to a better future.

Consider a nonprofit executive who had been fired from two previous positions over sexual harassment allegations.

One night, he and his wife were involved in a horrific car crash.

His wife’s injuries were minor, but he was left comatose for a month and needed a year of rehabilitation. His new narrative went something like this: “Many would think it was this accident that put my life in jeopardy. But I was already in great danger. I was causing pain to others, ruining my career and

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heading for a life without my wife or children. The accident forced me to stop, created time for reflection and showed me what love really is.”

— SERVICE: People do better in the aftermath of trauma if they find work that benefits others — helping people close to them or victims of events similar to the ones they have endured. Two mothers I know who’d each lost a child started a nonprofit to help bereaved families connect with others who understood their grief.

Forty years later the organization thrives under the leadership of people who have faced similar losses and want to share the strength they’ve gained.

Of course, you don’t need to start a nonprofit or a foundation to be of service. Focusing on how you can help provide relief during the continuing crisis — whether by sewing masks, retraining teammates, supporting small businesses or agreeing to a temporary pay cut — can lead to growth. So can simply expressing gratitude and showing compassion and empathy to others.

How you and your group turn to service will determine whether you see the pandemic and its fallout as an unmitigated tragedy or as an opportunity to find new and better ways to live and operate. Maybe you can see how to ensure that similar @Businessdayng

emergencies are handled better in the future. Perhaps you can help those most seriously affected.

Hopefully, through this process, you and your organization will experience growth. People are often surprised by how well they can handle trauma. They are left better equipped to tackle future challenges. Groups often come through such trials with a clearer picture of their collective knowledge, skills, resilience and growth potential.

Trauma can also help forge new relationships and make people more grateful for the ones they already have. Coming through a crisis together is a bonding experience.

If you’re thinking this is all too optimistic, you may still be too close to the tragedy of this pandemic. So be patient as you work through and facilitate the process of post-traumatic growth. Growth can’t be forced, and it can’t be rushed. However, when you and others are ready, it is worth the effort. Let’s make sure that we derive something positive from this time of struggle.

Richard G. Tedeschi is a professor of psychology emeritus at the University of North Carolina at Charlotte; the distinguished chair of the Boulder Crest Institute; and a co-author of “Posttraumatic Growth.”

Friday 14 August 2020

BUSINESS DAY

25

Markets + Finance

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

Northern Nigeria Flour Mills returns to profit amid headwinds BALA AUGIE

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orthern Nigeria Flour Mills (NNFM) Nigeria Plc just released its audited financial statement for the year ended March 2020 that showed the miller reverted the path of profitability.

With a robust cash flow from operating activities, investors should go their bed without worries because the company has the financial ammunition to fund future expansion plans, settle its debt, and pay dividend to shareholders.

For the year ended March 2020, NNFM’s revenue surged by 113.08 percent to N8.84 billion from N4.41 billion as at March 2019.

The growth at the top line was driven by market penetrating products with improved packaging to cater for the price-sensitive consumers as well as the improvement in route to market. Also, land border closure in the latter part of the financial year supported revenue growth.

Analysis of the financial statement showed cost of sales increased by

123.96 percent to N7.96 billion in the period under review from N3.56 billion the previous year; the increase in cost was due to higher material costs, (+143.35 percent).

However, the slow growth in cost of sales relative to revenue-growth, reflected the management’s success in achieving cost optimization during the review period.

Meanwhile, there was a 91.64 percent increase in operating expenses to N554.36 million in March 2020 from N289.27 million the previous year.

The uptick in operating expenses was spurred by a number of factors

ranging from advertising cost on new products, further spend to deepen route to market, costs associated with business continuity plans following the pandemic as well as COVID-19 donations and relief items expenses.

NNFM has optimized direct sales attributable to projects gross profit spiked by 50.35 percent to N876.05 million in the period under review as against N580.25 million the previous.

Operating profit followed the same growth trajectory as it grew by 6.5 percent N526.19 million for the year ended March 2020 from N527.86 million the corresponding period of March 2020.

The company has been sourcing raw materials locally as it seeks to reduce its import bill amid a currency crisis caused by volatility in the price of oil at the international market.

The miller posted a profit of N64.35 million from a loss of N31.39 million it posted the previous year.

NNFM has efficiently utilized its fixed assets to higher generate sales, which indicates higher return on investment as fixed asset turner ratio increased to 2.36 percent in the period under review from 1.98 percent the previous year.

Money to finance expansion activities is not the miller’s problems, as its cash flow from operating activities surged by 156.09 percent to N3.15 billion as at year end March 2020 from N1.23 billion the previous year.

The charts below shows the company has been recording consistent growth in revenue and operating performances over the past five years even amid the ups and downs of country’s macroeconomic environment.

Consumer goods firms in Africa’s largest economy are operating in an environment beset by a myriad of challenges such as decrepit infrastructure, harsh regulatory environ-

ment and weak consumer spending.

In 2016, the sharp drop in oil price of mid-2014 that stoked a severe dollar scarcity created problems for company because they were forced to source foreign currency at the an exorbitant black market rate. That stoked cost of production as material cost spiked due to imported inflations.

The country’s economy has been growing sluggishly since it exited a recession in 2017- thanks to the instruction of a foreign exchange regime by the central and rebound in oil price- and inflationary pressure

spread of the virus disrupted the demand and supply side of the market.

Analysts have warned that the economy may enter a technical recession by the third quarter of (Q3) 2020, with a chance of early recovery by fourth quarter (Q4) 2020 or first quarter (Q1)2021.

Analysts at sundry research house expect Northern Nigeria Flour Mills and peer rivals to stay immune to the negative impact of the COVID-19 pandemic or restrictions, largely because their major product portfolios (Food, Sugar and

and hike in utility bills have damped consumer sentiments.

Economic growth in the first quarter of 2020 (Q1-2020) slowed to 1.87 percent and the figure for the next quarter (2020) is set to come in negative, despite the series of stimulus packages announced by the authorities aimed at easing the impact of the pandemic on businesses and households.

The coronavirus pandemic that paralyzed business activities across the globe has damped the outlook for the Nigerian economy as lockdown imposed by government to curb the

Agro-Allied) which are concentrated on essential items.

Also, they expect that the recent reversal of the 5.0 percent increase in duties on raw Sugar by the federal government in July 2020 would further spur growth in the Sugar segments even as the benefits from border closure remain apparent across the segments.

However, industry players with low portfolio concentration in products that are considered essential (food, beverages, agro-allied and home & personal care) could capitulate to COVID-19 crisis.

BD MARKETS + FINANCE Analyst: BALA AUGIE ; Grahphic Fifen Famous www.businessday.ng

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@Businessdayng

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Friday 14 August 2020

BUSINESS DAY

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Friday 14 August 2020

BUSINESS DAY

Live @ The Exchanges Market Statistics as at Tuesday 13 August 2020

Top Gainers/Losers as at Thursday 13 August 2020 LOSERS

GAINERS Company NB UNILEVER MTNN STANBIC

FLOURMILL

Opening

Closing

Change

N34

N36

2

Company

ASI (Points)

Opening

Closing

Change

BUACEMENT

N38.7

N38.6

-0.1

DEALS (Numbers)

N1.01

N0.91

-0.1

N2

N1.9

-0.1

VOLUME (Numbers)

N0.78

N0.71

-0.07

N11.9

N11.85

-0.05

N12

N13

1

IKEJAHOTEL

N118.5

N119.5

1

NEIMETH

N33

N33.8

0.8

CHAMPION

N19.4

N19.85

0.45

WAPCO

25,236.97 3,640.00 258,081,869.00

VALUE (N billion) MARKET CAP (N Trn)

1.678 13.165

Nigeria’s stock market gains N50bn as more investors buy Iheanyi Nwachukwu

T

he stock market of Africa’s largest economy maintained its upward trend on Thursday August 13 as more investors continued to bargain-hunt some value counters despite pockets of profit taking activities by short term players.

Investors booked about N50billion gain, thanks to stocks like Nigerian Breweries, MTNN and others alike seen favoured on the buy side of market.

The Nigerian Stock Exchange (NSE) All Share Index (ASI) closed higher by 0.38 percent to 25,236.97 points as against preceding trading day low of 25,141.48 points.

The market’s nega-

tive return year-to-date (YtD) printed lower at -5.98 percent. The value of listed stocks on the Bourse increased from N13.115trillion to N13.165trillion, up by N50billion.

Nigerian Breweries Plc recorded the highest gain after its share moved up from N34 to N36, adding N2 or 5.88percent. It was fol-

lowed by MTNN Plc which increased from day open low of N118.5 to N119.5, adding N1 or 0.84 percent.

Also on the top advancers list is Unilever Nigeria Plc which moved up from N12 to N13, after adding N1 or 8.33 percent.

Likewise, Stanbic IBTC Holdings Plc increased from N33 to N33.8, up by

80kobo or 2.42 percent and Flour Mills Nigeria Plc which rose from N19.4 to N19.85, adding 45kobo or 2.32 percent.

Equities traders in 3,640 deals exchanged 258,081,869 units valued at N1.678billion. Transcorp, Zenith Bank, Chams, GTBank and FBN Holdings were actively traded stocks on the Bourse.

Linkage Assurance grows profit by 894% ...rewards shareholders with bonus issue Modestus Anaesoronye

U

nderwriting firm, Linkage Assurance Plc has rewarded its shareholders with a bonus issue of one for four shares by the capitalisation of N1 billion from the Company’s general reserve account.

This is coming on the heels of tremendous achievements made by the Company in 2019 financial year when it recorded a Gross Premium Written (GPW) of N6.52 billion from N5.39billion in December 2018, a 21 percent increase, while profit before tax (PBT) also increased from N134.70 million in 2018 to N1.34billion, representing an 894 percent increase.

Joshua B. Fumudoh, Chairman of the Company speaking during its 26th Annual General Meeting

27

held in compliance with Covid-19 directives, said despite the increasingly difficult operating environment Linkage Assurance made appreciable progress in all fronts.

He said the Company achieved an underwriting profit of N409 million in 2019, compared to the N772 million losses in 2018, while net claims paid was N1.7 billion compared to N2.7 billion.

“The significant reduction in net claims Fumudoh said was a result of improved underwriting and effective reinsurance arrangement.”

Shareholders who attended the meeting including Sunny Nwosu, National Coordinator, Independent Shareholders Association of Nigeria and Boniface Okezie, Chairman, Progressive Shareholders Association of Nigeria; Bisi Bakare and Nona Awoh applauded www.businessday.ng

the board and management for such a wonderful result in 2019.

They also appreciated the bonus issue, describing it as palliative to shareholders particularly at this time, expressing optimism that Linkage is positioned to pay better dividends in the coming years.

Joshua B. Fumudoh in his further remarks commended the Management and Staff for the performance of the Company, stating that they demonstrated uncommon commitment and dedication to the growth of the business despite the stiff competition and the harsh operating environment.

Daniel Braie, Managing Director/CEO of Linkage Assurance speaking at the meeting said the Company during the year under review crafted a Five-Year Strategic Road Map that will guide its operations in

achieving both her short and long term goals.

The four strategic pillars in line with its Balanced Scorecard Framework Daniel Braie noted include Business Growth, Financial Excellence, Operational Excellence and Customer Intimacy “In line with our strategic focus and business growth initiatives, the last quarter of 2019 was our starting point in delivering on our Strategy. Using an agile approach and with strong dedication, we were able to achieve a significant milestone in revenue. This achievement acted as a catalyst to our desire to do more for both our shareholders and the customers.”

According to him, the Company has embarked on digital transformation to improve her services especially to the millennials and remote customers.

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Global market indicators FTSE 100 Index 6,185.62GBP -94.50-1.50%

Nikkei 225 23,249.61JPY +405.65+1.78%

S&P 500 Index 3,380.94USD +0.59+0.02%

Deutsche Boerse AG German Stock Index DAX 12,993.71EUR -64.92-0.50%

Generic 1st ‘DM’ Future 27,851.00USD -15.00-0.05%

Shanghai Stock Exchange Composite Index 3,320.73CNY +1.46+0.04%

SEPLAT partners host community to promote security

F

oremost energy company, Seplat Petroleum Development Company Plc has provided the Ugborhen Community in Delta State a critical support leading to the community handing over of three security vehicles to the Nigeria Police, Navy and the Nigeria Security and Civil Defense Corps (NSCDC).

The vehicles were procured from the community’s Freedom To Operate (FTO) account. Ugborhen is one of SEPLAT’s foremost oil and gas host or producing communities in Ovhor field in OML 38 & 41, a swampy terrain in Okpe Kingdom in the Western Niger Delta of Nigeria.

The presentation of the three Toyota Hilux vehicles was done at the Ugborhen Community town hall, and this is coming following the incident of insecurity in the area, which was highlighted in the community’s correspondence to Seplat whilst seeking support to addressing the situation. The company carried out an assessment of the situation and the need and provided advise on how to address the situation, particularly, considering the peculiar location of the community, being situated at the extreme end of Sapele Local government and ease of access by both land and water, which makes it vulnerable to insecurity.

The company also provided

technical input (specifications) on the type of vehicle to be procured and provided guidance on how to make the agreement with the security agencies (the Nigerian Navy, the Nigerian Police and the NSCDC workable. Though procured by the community, Seplat helped in inspecting the vehicles and ensured the vehicles are fit for the intended purpose.

The vehicles were presented to the Navy commander for the Nigerian Navy logistics base, Sapele; the Police Area Commander and the Commander of the Nigerian Security and Civil Defence Corps in Sapele Local Government by the President of the community, Engineer Phillip Mebradu.

Speaking on behalf of the Seplat Chief Executive Officer, Roger Brown, the Base Office Manager, Western Assets, Emmanuel Otokhine, reiterated the company’s commitment to partnering with host communities in creating shared business values.

Brown reiterated Seplat’s commitment to sustainable development in its host communities, saying the company will continues to promote security in its areas of operation and beyond, whilst urging the citizenry to continuing to remain peaceful at all time.

Prestige Assurance targets N6.8bn from ongoing Rights Issue ...on the basis of 38 new shares for every 15 held by shareholders

P

restige Assurance Plc is currently in the market shopping for about N6.81billion from its existing shareholders in Rights Issue which opened Monday August 10 till Thursday September 17, 2020.

The insurer’s Rights Issue of 13,635,796,006 ordinary shares at 50 kobo each is on the basis of 38 new ordinary shares for every 15 ordinary shares held by existing shareholders.

The Rights Issue is part of Prestige Assurance’s recapitalisation strategy in

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response to the regulatory directive from the National Insurance Commission (NAICOM) and path towards the implementation of the company’s mediumterm strategy.

NAICOM has mandated a minimum recapitalisation for general insurance business in Nigeria of N10 billion in admissible Share Capital by September 2021 and with this, the firm has said it intends to prosecute towards becoming a top industry player over the medium term of 5 to 7 years.

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Friday 14 August 2020

BUSINESS DAY

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Friday 14 August 2020

BUSINESS DAY

29

News Poor sales squeeze FMCGs gross margin...

Continued from page 2

Back row: L-R: Adetola Salau, senior special assistant on Science, Technology, Engineering and Mathematics (STEM) education to the Lagos State governor; Kaodi Ugoji, group chief operating officer, FMDQ Group; Yinka Ayandele, permanent secretary, education district 3, Ikoyi, Lagos State, and Olufunke Oyetola, representing Lagos State commissioner for education, with students during the presentation of pre-loaded educational tablets donated by FMDQ Group to Lagos State public schools students.

Naira devaluation stokes fees of Nigerian students ...

Continued from page 1

break of Covid-19 and lower crude oil price, dollar shortages in Nigeria pushed the Central Bank of Nigeria (CBN) to adjust its official currency peg against the dollar by 23 percent within just five months this year.

The apex bank first devalued the official exchange rate in March to N360 from N307. With the further decline in oil price, a commodity that accounts for more than 90 percent of the country’s foreign-exchange earnings and more than a half of its revenue, the CBN recently moved FX rate from N360 to N379 per dollar.

With the current exchange rate, Nigerian students in the UK universities who paid an average of N6 million (using N463 to change £13,000) annual tuition fees in 2019 academic year would be paying almost N8 million (N606 for £13,000) in 2020, according to BusinessDay analysis.

Average tuition fee for i nt e r nat i o na l s t u d e nt s studying in the UK is about £13,000 per annum.

The situation is the same

for Nigerian students who are studying in the US as the exchange rate for the naira against the dollar has weakened by more than N73 in 2020.

The naira should be anywhere between N427 and N491 to the dollar, converging with the black-market rate, Renaissance Capital said in a note to clients on July 7.

Fitch Solutions expects naira to weaken to N475 against the US dollar at the end of this year, and further decline to N510 next year.

“The depreciation will come in a series of steps, as in recent years,” it said, adding that policymakers are very unlikely to fully liberalise the FX regime.

The naira’s black-market rate declined to 475 per dollar on Wednesday from N306 a year ago, as compiled from data by abokiFX.com, a platform that collates rates from street traders in Lagos.

That’s the weakest since February 2017.

“I will be resuming school online by September and be travelling abroad when they open the airport but my dad has been complaining about the tuition fees he is going to

Low yield environment eludes small...

Continued from page 2

Limited, asserts that it is no surprise that we have seen a rise in the value of commercial papers in the financial market over the last few months. With the advent of COVID-19 and the pressure it has placed on the cash flow of most companies, it is much cheaper for these big companies to issue commercial papers at about 7 percent, as against borrowing from the bank at 15 to 20 percent.

However, while large cor-

porates are able to take advantage of the low interest rate in the market, micro, small and medium enterprise (MSMEs) companies have to bear the cost of borrowing from commercial banks.

Nigeria’s SMEs contribute nearly 50 percent of the country’s GDP and account for over 80 percent of employment in the country. Despite the significant contribution of SMEs to the Nigerian economy, challenges still persist that hinder the growth and development of the sector. www.businessday.ng

pay as it is now higher than the budgeted amount,” a young Nigerian who simply identified herself as Efe told BusinessDay on Twitter.

In 2016, the Nigerian government added overseas study to a growing list of expenditures for which it would no longer provide foreign exchange from the central bank.

This means that Nigerian parents cannot purchase foreign currency through official bank channels in Nigeria in order to pay foreign school fees. Parents who need to acquire foreign funds to support their students abroad must do so in the open market, at a much higher exchange rate, or via foreign currency accounts held abroad.

According to market analysts, the central bank official exchange rate used mainly for government transactions and the budget is not usually accessible by the ordinary citizens except, of course, they have connections.

“Those who can afford foreign education for their children can afford it but Nigeria cannot allocate foreign exchange for those who decide to train their children outside the country,” President Muhammadu Buhari

told Al Jazeera in March of 2016. “We just can’t afford it.”

According to Anthony Kila, professor of Strategy and Development and international director of studies at the European Centre of Advanced and Professional Studies, the government is to be blamed because it has not done its best to make Nigeria’s education system attractive.

“Nigerians tend to travel abroad for studies because the education system is bad in the country and those that go abroad are the ones that can afford it,” Kila said.

While many Nigerian students may have a hard time paying their way through schools abroad, enrolling in Nigerian universities, especially public ones, is not an option for many as the country’s education standard has been questioned by many.

The United Nations Education, Scientific, and Cultural Organisation (UNESCO) had recommended that 15 to 20 percent of the total budget should go to the education sector. Nigeria’s 2020 budget only allocated 6.48 percent to its education sector. It was 7.11 percent in 2019, 7.14 percent in 2018, 7.27 percent in 2017, and 9.20 percent in 2016.

Primary among these challenges encountered by the sector is lack of access to affordable capital.

According to a survey conducted by PWC, 29 percent of businesses see the high interest rates on loan as the most important limiting factor to getting funding for working capital and expansionary activities. 25 percent cite insufficient collateral or guarantees for funding, while 22 percent point to the current economic conditions as the most important limiting factor.

According to the NBS, less than 5 percent of SMEs have

been able to access adequate finance for working capital and for funding business growth/expansion.

A check by BusinessDay on guidelines to issue a commercial paper indicates that corporates must provide an ‘Issuer’ or ‘Issue’ rating of minimum investment grade; the commercial paper issued must be a minimum size of about N100 million, and the issuer must have been incorporated for not less than five years and be in operation for not less than 3 years prior to registration for commercial paper issuance.

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of sales.

Ayorinde Akinloye, a consumer goods analyst at CSL Stockbrokers, comments that the naira devaluation, which has occurred about four times since 2016, has raised cost components of firms sourcing input from abroad.

However, “Many big and small local businesses that are not listed on the NSE have sprung up to heighten competition by having more local market reach and providing cheaper alternatives to Nigerian consumers,” Akinloye says.

This trend by unlisted domestic businesses will likely continue to make those FMCGs that are listed to experience declining market share, in light of prevalent economic situations, he notes.

United Capital analyst, Yinka Ademuwagun, identifies the inability of FMCGs to sufficiently increase their selling price to cover their rising costs.

Despite Nigeria being a

big market of about 200 million people, it is also a poor market, causing consumers to be price-sensitive and gravitate towards lowerpriced commodities.

Ademuwagun explains that naira devaluation has adversely affected importation costs, thus encouraging the smuggling of products from other countries at much cheaper prices. Such smuggling activities have greatly depleted the market share of FMCGs listed on the NSE and resulted in the border closure.

“To make matters worse, the Covid-19 pandemic has disrupted FMCGs from reaping benefits of the border closure, thereby contributing to worse unemployment levels and further weakening the purchasing power of consumers’ income over the years,” Ademuwagun says.

Although sales are declining, FMCGs have managed to grow net profit margin since 2017, but the coronavirus pandemic weighed on bottom line in the first six months this year.

Rivers applies revenue-based financing...

Continued from page 2

instrument to reboot tourism to boost the internally generated revenue (IGR) profile of the state by up to 50 percent.

As well, Plateau State is offering tour operators, destination managers and financial institutions opportunity to partner in improving on its many tourism products, marketing and sharing revenue accruing from their efforts.

The state, which is a once-thriving tourism destination in Nigeria, is opening up to private sector and their financial partners in a concerted effort to restore its past glory as tourists’ heaven in the country.

In line with the same financing model, Sterling Bank plc is setting aside N5 billion to funding viable domestic tourism products.

With the fund, the bank is seeking to partner tourism businesses that have viable products to sell to the domestic market.

It would be recalled that the Nigerian creative industry and the tourism and hospitality sector have recorded rapid growth in the past few years and contributed more to the Gross Domestic Product of the country.

Consequently, the feats have increased interests and investments in the industry, which is acclaimed the second biggest employer in Nigeria by the International Monetary Fund (IMF).

The investments will increase in the post-COVID-10 pandemic era as tourism, acclaimed to be the lowest hanging fruit for economic diversification, is more resilient in times of economic crisis.

10 years after, Nigeria dumps National...

Continued from page 2

mandated to review the visa restrictions imposed by the US and develop systems and processes that would address the security concerns raised.

The committee reported that Nigeria had fully satisfied two of the six areas of concern raised by the US, two others substantially satisfied, and progress being made on the remaining two.

Aregbesola expressed the hope that the findings, strategies and implemen@Businessdayng

tation plans proffered, if fully implemented, would expedite the lifting of the visa restrictions while bequeathing to the nation an enduring identity management system.

“We are just upgrading it such that your DNA too will be there very soon. Even if you are in a car, I will know if you are the one in the car with your DNA, it’s already captured. You are already captured, you cannot run away anymore,” Aregbesola said.

30

Friday 14 August 2020

BUSINESS DAY

news Continued from page 1

accounts. The illegal transactions were facilitated by some NDDC staff with active connivance of bank workers, according to a report by the Economic and Financial Crimes Commission (EFCC), seen by BusinessDay. Following a tip off, a team of investigators from the EFCC Intelligence and Special Operations Unit recently visited seven commercial banks alleged to be the conduit pipe for the illicit business.

According to the EFCC Interim report submitted to the former acting chairman of EFCC, Ibrahim Magu, by the Head of the investigating team dated September 19, 2019, and obtained by BusinessDay, the investigators discovered that “most of the funds were either withdrawn cash or transferred to Bureau de Change Operators and dollars equivalent collected cash by staff of NDDC and those of the banks, confirming the suspicion that the funds were laundered. Some of the funds were equally diverted to the personal accounts of NDDC officials which they utilised,” the report stated.

As a result, the EFCC said it placed a Post No Debit Order (PNDO) on three bank accounts of the suspects while a total sum of N827,745,699 was frozen through interim freezing order from the court.

The bank accounts allegedly under EFCC investigations belong to the seven private companies, or Companies A to G, as seen by BusinessDay. The EFCC investigation was carried out by its Lagos Zonal Office with crime report number (CR: 730/2019) and involved in-

NDDC officials use private firm accounts...

vestigation of activities of seven commercial banks alleged to have been used by the suspects to commit the crime. Individuals and corporate bodies including the banks’ senior officials were said to have been interrogated by the EFCC operatives.

A look at the report reveals bone-chilling findings.

Company A maintained an account with a well-known commercial bank (name withheld) where according to the EFCC report, witnessed an inflow of the sum of N798,179,305.82 million from NDDC on May 27, 2019.

On May 31, 2019, the total sum of N181,500,000 million was transferred from the account to an individual suspected by the EFCC to be an unlicensed Bureau De Change operator who converted it to $500,000 cash and the same was collected by a former staff of a firstgeneration bank.

Consequently, the EFCC placed a Post No Debit status on the ac-

count on May 31, 2019 and the total sum of N616,714,792.48 million was frozen.

Interestingly, the same account had earlier received a total sum of N525,295,931.30 million from NDDC on September 24, 2018. The funds were allegedly transferred as follows: •N5,000,000.00 to a House of Rep. candidate in Akwa Ibom State at the 2019 elections.

•N10,000,000.00 for printing of campaign materials for a former MD at NDDC. •N175,250,000.00 to a BDC operator for dollar exchange.

•N36,200,000.00 which was converted to $100,000.00 cash •N30,000,000.00 which was converted to $82,000 cash •N230,000,000.00 cash withdrawal On its part, Company B maintained an account with a major Nigerian bank, which witnessed an inflow of the sum of N287,065,000 million from NDDC on May 28, 2019.

On May 31, 2019, the total sum of N79,965,800 million was transferred to persons alleged by the EFCC to be unlicensed BDC operators who converted it to $220,900 cash and the same was collected by one staff of a major bank.

There was also a cash withdrawal of the sum of N6,000,000 million. As a result of these suspicious transactions, the anti-graft agency said it froze a total sum of N211,030,906.49 million belonging to the company.

That was not all: the same account had earlier allegedly received a total sum of N27,000,000 million from NDDC on February 27, 2019 and March 27, 2019, which funds were all allegedly transferred on April 15, 2019.

Another company used

by NDDC officials to launder funds was Company C, which maintained accounts domiciled with two commercial banks.

An analysis of the accounts reveals no inflow from NDDC in May 2019.

But a Post No Debit status

Buhari commissions 10mw power project built by Eni Olusola Bello

N

ig e r ia’s P re si d e n t Mu h a m madu Buhari on Thursday commissioned a 10-megawatt (mw) power plant built by Eni companies in Nigeria and its partners in Yenagoa, Bayelsa State. Eni companies comprise Nigeria Agip Oil Company and Nigeria Agip Energy Corporation (NAEC).

The plant will power the

headquarters building of Nigerian Content Development and Monitoring Board (NCDMB) and other major government and industrial facilities in the state.

Experts say 10mw could substantially serve two local government areas in Lagos State as currently constituted with all its industrial activities.

The power project, acknowledged as a giant leap in the journey towards the development of Nigerian www.businessday.ng

content in the oil and gas industry, is an initiative of Eni companies in Nigeria and its partners – Nigerian National Petroleum Corporation (NNPC/NAPIMS), Nigerian Petroleum Development Company (NPDC) and Oando Energy.

The power plant aims to enhance the capacity of NCDMB and other government infrastructures in the state, kick-start sustainable industrialisation, create employment opportunities

and generally improve the standard of living through reliable supply of electricity.

The project activity include the provision of 10mw GE Gas Engine Generator Power Pack Units (including all associated ancillaries) and installation of Overhead Transmission Lines and Balance of Plant for the evacuation of power to end users in the state.

Speaking at the occasion, Lorenzo Fiorillo, managing director of Eni companies

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was subsequently placed

by EFCC on the account on May 31, 2019, and the total sum of N503,704.53 and N28,217.00 in the two accounts in the two banks were frozen.

The other firm, Company D, maintained an account with a well-known commercial bank. The account witnessed an inflow of the sum of N471,494,880 million from NDDC on May 2, 2019. On May 2, 2019, the total sum of N450,000,000 million was transferred. N10,000,000 million and N11,000,000 million were equally transferred, respectively.

The balance on the account as at May 31, 2019 was N56,690.00. The same account had earlier received a total sum of N507,168,191.78 million from NDDC on March 6, 2019. The above funds were subsequently transferred to companies/individuals.

Also involved in the illegal transaction is a Company E, whose bank account witnessed inflows of N467,859,684.91 million on January 21, 2019, and

N569,635,468.53 million on February 12, 2019 from NDDC. The funds were subsequently transferred to companies, individuals suspected to be BDC operators and dollars equivalent were collected by a female staff of one of the commercial banks. She was alleged to have been used by the suspects to perpetrate the crime.

While submitting the report, the EFCC operatives noted that from their findings, “It is obvious that public funds are being diverted from the NDDC account to private company accounts for a purported purpose that the investigation will soon unravel” and pledged their determination to get to the root of the problem.

It was not clear as at press time what the EFCC and the government hoped to do with the report, given the fact that the former acting chairman, Ibrahim Magu, who ordered the investigation is himself undergoing investigations over similar allegations.

in Nigeria, explained that “this initiative is part of Eni’s global effort to ensure access to affordable, reliable, sustainable and modern energy for all – one of the 17 Sustainable Development Goals defined by the United Nations in its 2030 Agenda, which are an integral part of the Company’s mission”.

The ceremony, conducted virtually from the Aso Rock Presidential Villa, was witnessed by Douye Diri, governor of Bayelsa State, Timipre Sylva, Minister of State for Petroleum Resources, Mele Kyari, group managing director of NNPC,

and other top management of NCDMB led by the executive secretary, Simbi Kesiye Wabote.

Eni has been supporting access to energy in Nigeria by implementing projects and initiatives targeted at alleviating power deficit and achieving reliable power supply in the country. These include the 480MW Okpai power plant, built in 2005

by NAOC JV, currently being expanded to 1000MW, as well as supply of free electricity to over 120 communities in Niger Delta with about one million population.

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Friday 14 August 2020

BUSINESS DAY

31

Sports Chukwueze makes list of rising African stars to watch in LaLiga new season his talent at the highest level.

Yan Brice Eteki (Granada CF) The young Cameroonian star looks set to follow in the footsteps of compatriot Samuel Eto’o as he makes his mark on the European football scene.

At 22, Eteki is an up and coming midfielder with a solid record on the continent.

Since his debut for Sevilla FC’s youth team 8 years ago, fans have watched his skills grow tremendously - and LaLiga followers have started to take note of them too.

The past two seasons have seen Eteki switch from UD Almeria back to Sevilla and most recently to Granada CF, who will play in next season’s Europa League thanks to a remarkable first season back in the top flight. As he looks to

Stories by Anthony Nlebem

A

frican talents are set to electrify LaLiga this coming season, there’s plenty to look forward to starting in September.

Defending champions Real Madrid are eager to retain the crown they won in dramatic fashion less than a month ago. But fans of LaLiga in Africa and across the world have so many more storylines to watch when the campaign gets underway, including keeping an eye on the African players who are poised to breakout this coming season.

Here, BusinessDay takes a look at young and talented African upcoming stars to watch in the 2020-21 LaLiga season.

Samuel Chukwueze (Villarreal CF) The talented Nigerian shone as a member of the victorious U-17 World Cup team, and most recently as part of the 2019 FIFA World Cup. The 21-year-old impressed for Villarreal CF – the club he first joined in 2017 as an 18-year-old – last season, proving to be a crucial player in the side which qualified for next season’s Europa League.

The left-footed striker, whose relatives back in Nigeria once set his football kit

on fire to keep his mind on his education, has overcome a great deal to live his football dream.

With 12 career goals to his name and with comparisons often made between his playing style and that of Dutch legend Arjen Robben, this exceptional young player is definitely a star for the future and has already received raving reviews from former African legends such as Freddie Kanoute, Mutiu Adepoju and Nasief Morris.

Youssef En-Nesyri (Sevilla FC) Youssef En-Nesyri, A for-

settle into the 2020-21 season, he will be keen to score his first goal for his new team and to continue showing football fans what he’s capable of.

O l i v i e r Ve r d o n ( D .

Alaves) Olivier Verdon is a talented Benin international defender who looks keen to breakout in Spanish football this coming season The 24-year-old made his debut in 2017 with French side Bordeaux before making the move to Spain and Alaves two years later. He spent last season out on loan at Belgian side AS Eupen, making 22 league appearances and now returns to Spain with an eye on cementing his place in the Alaves first team for 2020/21.

Joseph Aidoo (RC Celta) One of Ghana’s most riveting young players rounds off

our list of young African stars to watch in LaLiga this coming season.

24-year-old Joseph Aidoo burst onto the scene in his home country with Inter Allies, when he was in the running for the Ghanaian Premier League’s Defender of the Year award in 2014, then later made his name in Europe first with Swedish side Hammarby and then for Genk in Belgium.

Since joining RC Celta in 2019, he has become a key member of the team’s defence - a position he will be sure to retain in the 2020-21 season. Having made 32 appearance during the previous season, Aidoo has yet to score his maiden LaLiga goal, however, be sure that the best is yet to come for this dynamic player.

mer FIFA World Cup and African Cup of Nations star, will continue to make his presence felt at Sevilla FC this coming season.

The 23-year-old Moroccan has been a top performer in LaLiga since his debut with CD Leganés in 2018. He scored four goals that season before securing a big money move to Sevilla midway through last season, racking up a total of eight successful strikes by season’s end. With Sevilla also set to compete in the 2020/21 UEFA Champions League, En-Nesyri will have the chance to showcase

NFF distributes $2m Covid-19 relief funds to clubs, national teams

T

he Nigeria Football Federation (NFF) says it will distribute a total of $2 million Covid-19 relief funds across the Nigerian football ecosystem.

Rising from its executive committee meeting held via video conference, the NFF in a communiqué, disclosed the sharing formula for the palliatives, explaining that it decided to distribute the money after due consultations with the sports ministry.

The Executive Committee of the NFF approved a schedule of payments and released a breakdown of beneficiaries.

The total sum which will be distributed in two tranches is made up of $1,500,000 FIFA support fund for operational support with $500,0000 of the sum solely dedicated to women’s football.

“The total sum is made up of $1,000,000 (being FIFA’s support for restarting the football season); $500,0000 (being FIFA’s dedicated support for women’s football); $300,000 (CAF’s support to its member associations); and $200,000 (NFF’s support from Sponsors’ Funds).”

The Federation also received $300,000 from CAF while sponsors Nike and CocaCola weighed in with $100,000 each.

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While the funds have been sourced in US dollars, the NFF say the disbursement will be made in naira with the exchange rate pegged at the CBN approved N386 exchange rate.

According to the breakdown released by the NFF, the women football will receive only $500,000 and while $1,500,000 will be distributed across men’s football.

The funds to be distributed will cover various professional and amateur football clubs,

and governing bodies of the various leagues to aid preparations ahead of the 2020/2021 League Season which has been set to resume between September and October.

There are also provisions for the various national teams and support for professional players and coaches unions as well as referees, sportswriters and supporters clubs.

According to the breakdown released by the NFF, the Super Falcons will get $100,000, the U-17 and U-20 women’s team will receive $70,000.00 respectively.

All sixteen NWFL Premiership Clubs will get $10,000 each totalling $160,000.

Each clubs in the league will get $4,000 each totalling $56,000.00.

Other provisions for women’s football include support to

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NWFL for League Admin and Operations $30,000; Support to 12 NWFL Amateur Clubs at $1,500 each, totalling $18,000; women’s coaching $10,000; women’s refereeing $10,000.

The Super Eagles will receive $200,000, while $125,000 has been earmarked for the youth teams and $30,000 will go to the NFF Football Foundation.

All twenty clubs of the men’s top tier Nigeria Professional Football League (NPFL) will get $15,000 totalling $300,000; the 42 clubs in the Nigeria National League will each get $5,000 amounting to $210,000, 306 amateur clubs in the Nationwide League will receive a total of $130,000.

Referees Association will get $20,000 for operations while another $60,000 has been earmarked for referee’s @Businessdayng

development.

Also, the NFF disclosed that it has instructed its technical and development committee to liaise with the integrity office to submit a shortlist of candidates for the positions of technical director, head coaches of the U-20 and U-17 national women teams, the U-15 male national team, as well as candidates for the position of consultant on coaches training and development.

It also announced that it has approved that the reputable consulting firm contracted by the NFF should, as soon as possible, submit a shortlist of candidates for the positions of Head Coach of the Super Falcons, NFF Head of Women Football and Head of Compliance Unit and Chief Commercial Officer.

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Friday 14 August 2020

BUSINESS DAY

NEWS

A/Ibom revenue service partners IMF for efficient tax administration ANIEFIOK UDONQUAK, Uyo

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kwa Ibom State internal revenue service has entered into partnership with the International Monetary Fund (IMF) for the training of its staff in tax administration, aimed at ensuring efficient revenue generation.

The revenue service is doing this through the Tax Administration Diagnostic Assessment Tool (TADAT) of the IMF to facilitate the assessment of the performance of tax administration in the state.

Okon Okon, executive chairman of the state internal revenue service who made this known while opening a 10-day zoom enhanced training programme

with experts drawn from US and other parts of the world, said the training was expected to add value to the institutional capacity-building efforts, and translate to effective service delivery as well as rapid growth in the state’s IGR. “The significance of this training is to build capacity, our own internal capacity in the system, to be able to deliver more, to benchmark against international best practices.”

Maimbo Nyanka, a senior economist with the IMF said the training would streamline processes using the TADAT framework to provide an objective assessment of the health of key components of the state’s system of tax administration.

NJC recommends 22 justices for elevation to Supreme, Appeal, High Courts, others

FG omits IOCs, local oil producers in consultations over revised PIB ISAAC ANYAOGU

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he Federal Government has re-introduced a revised version of the Petroleum Industry Bill (PIB) which lawmakers are expected to pass into law before the end of the year, but unlike in previous versions, the input of oil sector operators was not sought in drafting it, which could impact both quality and quick passage.

This puts at risk a smooth passage of the bill because it could be subjected to protracted delay when it progresses to public hearings as part of the legislative process and operators, with a better grasp of reality, present genuine concerns based on their experience.

“The Oil Producers Trade Section (OPTS) and independents have not been consulted

or sent a copy of the draft bill,” said Imo Itsueli, chairman of Dupri Oil, during a webinar organised by the Nigeria Natural Resource Charter (NNRC), a non-profit in the extractive sector, and BusinessDay Media Ltd, on stakeholders’ expectations for the new PIB. Itsueli said that complications could arise if oil sector operators with experience of how the industry functions raise significant issues not thought of by the ministry and this could lead to further delay of passage of the revised bill when the current version is found to be unfit for purpose.

Nigeria has been unable to pass a holistic petroleum industry bill for over a decade.

This contradicts an earlier comment by Timipre Sylva, minister of state for Petroleum Resources, that broad consultations would be undertaken once the process of passing

the bill is completed.

Sylva, in an interview over video conference with Kadaria Ahmed, veteran journalist, which aired on Channels Television on August 2, said the revised PIB was going to be sent to the National Assembly within two weeks.

He further said that in order to prevent previous delays in the passage of the bill, the government has embarked on broad consultation with stakeholders to arrive at a bill that would not be encumbered in the National Assembly.

The OPTS and independents produce the bulk of Nigeria’s crude oil and pay the royalties and taxes, and are part of different commercial arrangements like joint ventures with Nigeria’s stateowned oil firm, the NNPC, and so are considered critical stakeholders.

It is not clear who the min-

istry has been consulting with because local oil producers say they have only seen versions of the bill floating around but without official communication from the ministry of petroleum resources, and so they cannot be said to have participated in the process.

Experts on the video conference including Isreal Aye, an energy lawyer, Joseph Nwakwue, chairman of Society of Petroleum Engineers, Najim Animashaun, a respected policy adviser and energy lawyer, did not attest to any engagement with the Federal Government in drafting the revised PIB. The revised PIB is an executive bill prepared by the ministry of petroleum resources, unlike the previous version which was drafted by members of the previous National Assembly.

….dismisses petitions against 16 judges Felix Omohomhion, Abuja

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he National Judicial Council (NJC) has recommended 22 judges as Justices of the Supreme Court, Appeal Court, Federal and States High Courts, among others.

The NJC in a statement on Thursday also dismissed petitions against the Chief Judge (CJ) of Kwara State, Sulyman Kawu and 15 other judges across the country.

The NJC described the petitions against them as frivolous, baseless and unmeritorious.

The council, the highest umbrella body constitutionally empowered to invoke disciplinary punishment against serving erring judicial officers, said in the statement that at the end of its virtual meeting presided over by the Chief Justice of Nigeria (CJN), Ibrahim Tanko Muhammad, Kawu and others were not found wanting in the allegations against them by the petitioners.

Other judges who have petitions against them dismissed include Ayodele Daramola, (CJ, Ekiti State); I. N. Oweibo, Hadiza R. Shagari, Ijeoma Ojukwu, Ambrose Lewis-Allagoa, all of Federal High Court.

The others are B. A. OkeLawal, O. A. Ogala, (Lagos State High Court); Augusta Uche Kingsley-Chukwu (Rivers State High Court); Mustapha Ramat, (Nasarawa State High Court); M. M. Ladan, Muhammed Lawal Bello, both of High Court of Kaduna State.

Petitions against Adamu M. Kafin Madaki, (High Court of Bauchi State); L. M. Boufini, (High Court of Bayelsa State); and Kadi Goni Kur, Sharia Court of Appeal (Bor-

no State) were also dismissed for lacking merit.

The council also dismissed another petition written by one Ademujimi Adenike Nancy against Justice Sunday Olorundahunsi for want of merit.

The statement read in part: “the National Judicial Council under the chairmanship of the Chief Justice of Nigeria, Justice I. T. Muhammad, at its 2nd virtual meeting held on 11th and 12th August, 2020, considered the report of its investigation committee on allegation of misconduct made against Justice K. N. Ogbonnaya of High Court of the Federal Capital Territory, Abuja.

“At the end of deliberation, the plenary resolved to issue warning letter to Justice Ogbonnaya following its findings on the petition written against him by Uchechukwu Samson Ogah that His Lordship refused to release a copy of judgment delivered to the petitioner within the constitutionally prescribed period of seven days.

“Similarly, the council considered the report of its interview committee and recommended 22 judicial officers as justices of the Supreme Court of Nigeria, Heads of Court, Judges of High Court of States, Kadis of States Sharia Courts of Appeal and Judges of Customary Courts of Appeal.

“It also received the final report of the judicial ethics committee and other ad-hoc committees set up.”

The NJC statement released by its director of information, Soji Oye, also indicated that it received the notification of retirement of 13 judges and notification of death of six judges of state high courts and Sharia Court of Appeal. www.businessday.ng

Top row: L-R: Uduimo Itsueli, Chairman, Dubri Oil Co. Ltd; Joseph Nwakwue, Chairman, SPE Nigeria Council, and Isreal Aye, founder, Mylaw.ng; Last row; L-R: Tengi George-Ikoli, program coordinator, NNRC; Najim Animashaun, policy advisor, and Ken Henshaw, founder, WeThePeople, at the “What a good PIB should look like” webinar hosted jointly by NNRC and BusinessDay

Six months of COVID-19: Africa makes progress Anthonia Obokoh

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recent World Health Organisation (WHO) assessment based on self-reporting by 16 countries in sub-Saharan Africa found that the countries improved their capacity to respond to Covid-19.

Africa marks six months today (August 14) since Covid-19 was first reported on the continent. While the virus has raced through many other regions of the world, the pandemic’s evolution on the African continent has been different.

In response, WHO measured countries’ readiness in a range of areas including coordination, surveillance, laboratory capacity, case management, infection prevention and control.

“Six months ago, the score was 62 percent and now it is 78 percent. While much progress

…as WHO urges caution appears to have been made at the national level, at the district level countries are generally lagging behind.

“The scores for coordination (38 percent), infection prevention and control (46 percent) and clinical care for patients (47 percent) are all particularly low at the district level,” WHO observed.

Preliminary analysis by the international agency showed that an exponential surge in cases which peak about two to three weeks later no longer occur in Africa. Instead, many countries are experiencing a gradual rise in Covid-19 cases and it is difficult to discern a specific peak, while transmission patterns also differ between countries, but more importantly within countries.

According to Matshidiso

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Moeti, WHO regional director for Africa, curbing Covid-19 in Africa is a marathon and not a sprint.

“We are observing multiple local outbreaks each with their own infection patterns and peaks. It is by bolstering the response at the community level that we will win this race.

The Covid-19 response must be integrated into the fabric of every health district,” she said.

In the past six months, countries have made a lot of progress. Many African governments were quick to impose lockdowns and key public health measures that helped to slow down the virus.

Over time preventive, diagnostic and treatment measures have been strengthened. All countries can now diagnose Co@Businessdayng

vid-19, with 14 performing over 100 tests per 10,000 population.

Production of oxygen, critical for severely ill Covid-19 patients, has also considerably increased, with the number of oxygen plants in the region rising to 119 from 68 at the onset, while the number of oxygen concentrators has more than doubled to over 6000.

While progress has been made, it is important that governments step up readiness and response measures, particularly at the subnational levels. With the loosening of movement restrictions, there are risks that the virus may spread even further into remote areas of the continent.

WHO cautioned that not only must Africa keep up with the evolving trends; it must also anticipate, predict and act faster to head off potentially disastrous outcomes.

Friday 14 August 2020

BUSINESS DAY

news

MAX.ng to facilitate farmers’ access to market with launch of electric motorcycle Endurance Okafor

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etro Africa Xpress (MAX), a logistics and mobility platform for commuters and businesses, has launched electric motorcycle in Nigeria to enable farmers transport their produce from farm to the market.

According to the technology-driven Mobility Company, the initiative, which is first of its kind in Nigeria, has kicked off in a rural community in Ogun State.

“We are piloting electric motorcycle in rural communities to facilitate access to the market for farmers through a more affordable means of transportation,” Guy-Bertrand Njoya, CFO of MAX, says in a recent interview with BusinessDay. With the mission to make mobility safe, affordable, accessible and sustainable for all Africans, MAX’s new electric motorcycle initiative, which is scheduled to kick off in August, has already been piloted in a rural community in Ogun State.

“We have partnered with a mini-grid operator that will be in the community to provide solar energy and we have deployed electric motorcycles there with a stop in stations,” Njoya states, adding that MAX has provided about 20 motorcycles to a combination of farmers and transport operators in the community.

MAX explains that through the new electric motorcycles it is driving economic activities in the host community.

“Now they have access to electric bike; they do not need to ride hundreds of thousands of miles to have access to the closest filling station. They now have access to clean and cheap energy, so we are solving many problems at once,” he says.

Explaining why it has not launched the electric motorcycle in other states in Nigerian, the CFO notes: “When we come

into a new market we try and understand how the market operates.”

While MAX has highlighted that it will leverage the electric motorcycle to solve the problem of access to energy, access to market while also solving the problem of sustainable and robust means of transportation, he states that the company wants to gather some data and learn from the experience of the product pilot in Ogun State before replicating it in other states.

“We’ll replicate and scale it in other regions across Nigeria,” Njoyasays,addingthattheelectric motorcycle will lead to improved income generation for farmers, which is in line with the plans of MAX to push back poverty, include more excluded Nigerians into the economic net, and thus, boost financial inclusion.

Meanwhile, one of the greatest problems confronting rural farmers and communities in Nigeria is the absence of critical infrastructure such as ‘motorable’ roads. This is hindering market access for farmers in such communities who work assiduously to eke out a living from farming.

Nigeria continues to suffer low level of agricultural productivity due to infrastructural deficit across the country. Due to the deplorable state of roads, farmers have to grow only what they can eat or the extra they can carry on their heads to nearby markets.

Most times, the surplus gets rotten in storage in the villages or during transit as a result of many hours or days spent in transporting the foodstuffs to where they are needed due to bad roads.

Meanwhile, urban dwellers have to spend a very large percentage of their income to buy food. This is because the food that gets to the towns and cities are far more expensive than what the poor struggling farmers would have sold them.

UNILAG workers urge Buhari to dissolve governing council MARK MAYAH

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embers of academic and non-academic staff of University of Lagos (UNILAG) have called on President Muhammadu Buhari to dissolve the governing council of the institution.

The workers, who made the call on Thursday, also said that there was no room for any surrogate acting vice-chancellor in the institution. The worker unions comprise Academic Staff Union of Universities (ASUU), Senior Staff Association of Nigerian Universities (SSANU), Non-Academic Staff Union (NASU), and National Association of Academic Technologists (NAAT).

The workers, who spoke through Dele Ashiru of ASUU, argued that the “bad precedence that the council tried to set should not be allowed to remain” adding that the country was not a banana republic.

Earlier in the day, a meeting of all the industrial unions in the university, operating under the

aegis of Joint Staff Union (JSU) took place where the issue of the sack of institution’s former vicechancellor, Oluwatoyin Ogundipe, by the governing council was the main item on the agenda.

Our correspondent, who was on the campus, early Thursday morning, gathered that during the congress, the unions would resolve to issue an ultimatum to the council to reverse its decision.

The governing council, headed by Wale Babalakin, had on Wednesday in Abuja, announced the sack of Ogundipe.

Babalakin and Ogundipe had been at loggerheads over issues relating to the holding of this year’s convocation by the school.

Babalakin accused Ogundipe of not carrying the council along in the preparations for the event. He petitioned the minister of education, Adamu Adamu, who ordered the National Universities Commission (NUC) to stop the ceremony. The action led to ASUU declaring Babalakin as an unwanted visitor on campus.

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L-R: Olusola Oluwole, medical director, Armoured Shield Medical Centre; Folarin Oluwole, director-general, Nigerian Tourism Development Centre; Akin Abayomi, commissioner for health, Lagos State, and Yemi Onabowale, chief executive officer, Reddington Hopspital Group, at the inauguration of Amoured Shield Medical Centre and ZaineLab, first private medical facility approved for diagnosis and treatment of COVID-19, by Reddington Medical Group in Lagos, yesterday.

Covid-19: Low interest to pressure insurers’ profit in 2020-Afrinvest BALA AUGIE

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rofitability of insurers could decline due to fall in yields on fixed income securities which constitutes the bulk of their assets, while COVID-19 crisis that led to business closure is expected to undermine premium income, according to a recent report by Afrinvest Securities Limited.

That is triple-fold whammy for an industry whose contribution to the economy is abysmally poor. Insurers rely on yields on invested funds to compensate for deteriorating underwriting performance especially in the face of unfavourable underwriting conditions.

In Nigeria the combined ratio for most operators in the industry has crossed the red line due to huge claims and operating expenses,

www.businessday.ng

which makes it practically difficult for listed firms to deliver higher returns in dividend and share price appreciation.

For the year ended December 2019, the largest insurance companies in the country posted a combined underwriting loss of N15.156 billion as at December, but they posted a cumulative net income of N39.58 billion, thanks to investment income of N45.13 billion.

Insurance companies invest in government securities when yields are favourable with a view to earnings income, but yields have been dose diving since late year as the central bank has prohibited individuals and local firms from investing in both its primary and secondary Open Market Operations (OMO) auctions.

Nigeria’s treasury bill

now hovers between 3.75 percent and 2.85 percent, respectively.

The future profit growth of insurers is in jeopardy because the renewal of policies may be poor due to lockdown policies impose by government to curb the spread of the virus, which could also result in lower premium income.

Analysts at Afrinvest Securities said the overall profitability of companies would rely heavily on effective risk management and operational efficiency as a result of slower growth in premiums and rising claims.

“There is need for them to plunge the funding gap between assets and liabilities and also, rely on re-price policies in the light of the current interest rate environment,” said analysts at Afrinvest Securities.

The report, seen by

BusinesDay, added that the broader fallout from the pandemic in terms of lower density and investment returns; a significant deterioration in the credit quality of fixed income securities and increased mortality rates from the virus could pressure earnings and reserves of life insurance sector in 2020.

“For the non-life, a rise in Covid-19 related claims, premium rebates and lower interest rates could offset the increased demand for pandemic related and reduced profitability.

Nigeria, Africa largest economy, lags peers in Sub Saharan Africa in insurance penetration and density as lack of trust by policy holders towards operators and the claims settlement process, poor regulations, and economic downturn, continues to stunt industry growth.

Killings: Military deploys special forces to Southern Kaduna Godsgift Onyedinefu, Abuja

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ollowing the continuing attacks and killings in Southern Kaduna, the Nigerian military has deployed special forces to curb the trend and take out the perpetrators.

John Enenche, coordinator, Defence Media Operations (DMO), who disclosed this on Thursday, said the move was expected to achieve the desired result with the provision of credible and actionable intelligence specifically from primary sources.

Enenche said the special forces were deployed to the joint operations area covering the various flashpoints in the state, while troops of ‘Operation Safe Haven’ have

continued to intensify efforts aimed at securing lives and property in the general area “In this regard, the locals are requested to cooperate with the security agencies by availing them with the required information that will be useful to our collective objective of taking out the criminals from the area”, he said.

The coordinator further informed that banditry, terrorism and other forms of criminality witnessed a decline in the last one month across the northern region due to the “overwhelming superiority of the troops over the criminal elements.”

“For the past one month we have witnessed downward trend in the activities of armed bandits and cattle rustlers

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across Katsina, Kebbi, Zamfara, Sokoto and adjoining states. Most of these criminal elements have been decimated.

“Gradually there is restoration of human activities in the zone. Farmers have returned to their farms while other economic activities have picked up across the zone”, the coordinator said.

In the northeast zone, Enenche noted that there has been a reduction in the number of incidences recorded so far. He said troops in the region have drastically degraded the operational capabilities of the Boko Haram/ Islamic States of West Africa Province (ISWAP) elements.

“Troops have also sustained the clearance opera@Businessdayng

tions, aggressive patrols and intelligence surveillance reconnaissance missions, sustained air offensive operations as well as artillery and aerial bombardments in the theatre of operation”, he added.

On the recent warning by US AFRICOM that extremists have begun deploying several strategies to silently re-establish themselves across some regions in Africa including the West Africa sub region, Enenche assured that the Nigerian Armed Forces and all the relevant security agencies were leaving nothing to chance.

“Consequently, actions in place in this regard are being reviewed to handle this all important intelligence appropriately.

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Friday 14 August 2020

BUSINESS DAY

FT

FINANCIAL TIMES

World Business Newspaper

Israel and United Arab Emirates strike historic peace accord

Netanyahu to suspend annexing parts of occupied West Bank under US-brokered deal Andrew England in London, Demetri Sevastopulo in Washington and Ilan Ben Zion in Jerusalem

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srael and the United Arab Emirates have reached a historic peace deal that will normalise diplomatic relations between the Jewish state and Gulf power.

The agreement, which the US helped broker, means the UAE is on course to become only the third Arab state to have full diplomatic ties with Israel, after Egypt and Jordan.

“HUGE breakthrough today!

Historic Peace Agreement between our two GREAT friends, Israel and the United Arab Emirates!,” US President Donald Trump said on Twitter.

A joint statement by the UAE, Israel and the US said the “breakthrough will advance peace in the Middle East region”. But the move will infuriate the Palestinians.

“Israel got rewarded for not declaring openly what it’s been doing to Palestine illegally & persistently since the beginning of the occupation,” Hanan Ashrawi, the veteran Palestinian official wrote on Twitter. “The UAE has come out in the open on its secret dealings/ normalisation with Israel.”

Fawzi Barhoum, a spokesman for the Palestinian militant group Hamas, which controls Gaza,

Israeli prime minister Benjamin Netanyahu on a conference call with Donald Trump and Abu Dhabi’s crown prince Mohammed bin Zayed © Koby Gideon/GPO/dpa

said that normalisation of relations between Israel and the UAE was “a stab in the back of our people and encourages more violations against our people and their principles”.

Speaking to reporters in the Oval Office on Thursday morning, Mr Trump said that he expected some other Muslim countries to agree similar deals with Israel.

“Things are happening that I can’t

talk about,” he said.

The deal will give him a welcome boost as he campaigns for re-election against Joe Biden, who has a substantial lead over the president in opinion polls.

The president has frequently touted his ability as a dealmaker but he heads towards November without a deal with either Iran or North Korea, despite his repeated

insistence that he would reach agreements previous US administrations had failed to achieve.

The UAE, a staunch US ally, has been increasing its intelligence and security co-operation with Israel in recent years as both share common goals in countering Iran’s regional influence and fighting Islamic extremism.

Anwar Gargash, UAE state min-

ister of foreign affairs, said the timeframe for normalising relations with Israel would “definitely” not be long.

The two sides would “negotiate aspects and reach agreements on aspects of what a bilateral relationship looks like, ultimately reaching a reciprocity in diplomatic representation,” he added.

Under Sheikh Mohammed bin Zayed, Abu Dhabi’s crown prince and the UAE’s de facto leader, the Gulf state has pursued an increasingly assertive foreign policy across the Middle East and become one of the region’s most powerful states.

Let us use this to try to extract a commitment from the Israelis not to annex Palestinian land. Is it perfect? Nothing is perfect in a very difficult region Anwar Gargash, UAE state minister of foreign affairs The deal is a victory for Israeli prime minister Benjamin Netanyahu, who regularly touts his success in improving Israel’s relations with Arab states that were once sworn enemies.

As part of the agreement, Israel has agreed to suspend the annexation of parts of the occupied West Bank. Mr Netanyahu had promised to annex areas of the Palestinian territory as he campaigned in elections over the past 12 months, but the process stalled in recent weeks.

France stokes Turkey tensions by sending naval vessels to waters off Cyprus Paris backs Greece in row with Ankara over oil and gas exploration in disputed area FT reporters

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ensions between Nato allies France and Turkey have sharply intensified after Paris deployed naval vessels to the eastern Mediterranean in support of Greece, which is embroiled in a confrontation with Ankara over oil and gas exploration in disputed waters off Cyprus.

Kyriakos Mitsotakis, Greece’s prime minister, warned in a television address on Wednesday night of “the risk of an accident with so many military assets gathered in an enclosed space [the eastern Mediterranean]”.

The spark that ignited the latest flare-up was Turkey’s decision to pursue its claim to possible offshore oil and gas reserves by sending the survey ship Oruc Reis into disputed waters —acompanied by Turkish warships — on an exploration mission.

France, which has already clashed with Turkey over the two countries’ support for opposing sides in the Libyan civil war, demanded that Turkey stop its “unilateral” oil and gas exploration in disputed waters.

French President Emmanuel Macron decided to “temporarily reinforce” France’s military pres-

The French helicopter carrier Tonnerre escorted by Greek and French naval vessels in the Eastern Mediterranean on Thursday © Greek National Defence/AP

ence “in order to better monitor the situation in this part of the Mediterranean and to ensure that international law is respected”, the Elysée Palace announced after a call between Mr Macron and Mr Mitsotakis.

Two of France’s Rafale warplanes will be based on the Greek island of Crete. It will also keep two ships in the area, the helicopter carrier Tonnerre that is taking aid to Lebanon after the fertiliser explosion at the port of Beirut, and the frigate La Fayette that has been on a naval exercise with Greece and has sailed from Larnaca in Cyprus.

In a veiled reference to France, www.businessday.ng

Turkish President Recep Tayyip Erdogan said: “No foreign nation, company or ship will be allowed without permission into our maritime areas. We see provocations by a country that has no coastline in the east Mediterranean pushing Greece and the Greek Cypriot administration to take wrong steps.”

Germany said it was “very concerned about the latest tensions”. Chancellor Angela Merkel’s spokesman Steffen Seibert said Berlin was in touch with both sides, but added it was “urgently necessary” that the Turkish and Greek governments talked to each other directly.

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Greece raised the stakes in a long-running dispute with Turkey over seabed drilling rights by reaching agreement with Egypt on delineating their respective maritime zones south of Crete — an area partially claimed by Turkey which signed a similar deal with Libya earlier this year.

Mr Erdogan, who has increasingly been flexing his country’s military muscles across the Mediterranean, north Africa and the Middle East, said on Thursday he would speak by phone with both Ms Merkel and Charles Michel, European Council president.

The division of the island of Cyprus between an internationally recognised EU member state and a Turkish-backed republic in the north has long poisoned relations between Athens and Ankara. Turkey is the only country in the world to recognise the self-declared Turkish Republic of Northern Cyprus.

“Turkey is not the one escalating tensions in the Mediterranean,” Mr Erdogan added. “Greece and the Greek Cypriot administration are trying to appropriate Turkish Cypriots’ hydrocarbon rights.”

Mr Mitsotakis’s hastily arranged speech came as reports circulated in Athens that a Greek navy warship shadowing the Oruc Reis almost collided with a Turkish @Businessdayng

navy vessel on Tuesday. The Greek defence ministry did not confirm the reports.

The Greek prime minister also stressed that Greece was ready to resume talks on exclusive economic zones in the area. “We are vigilantly looking forward to good sense eventually prevailing in our neighbouring country so that a dialogue can be restarted.”

The latest move by Paris, in support of calls by Greece and Cyprus for stronger EU action against Turkey, comes ahead of an extraordinary meeting of EU foreign ministers called for Friday, at which the eastern Mediterranean will top the agenda.

Sanctions imposed by the EU on Turkey over the dispute have so far been largely symbolic. EU foreign ministers last month agreed to try to lower tensions with Turkey — but also tasked Josep Borrell, the bloc’s foreign policy chief, to come up with options for action if Ankara pressed ahead with Mediterranean drilling.

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BUSINESS DAY

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@ FINANCIAL TIMES LIMITED

Trump administration overturns rules on methane leaks Environmental Protection Agency frees oil and gas industry from Obama-era regulation Gregory Meyer in New York and Kiran Stacey in Washington

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ethane leaks from oil and gas wells will no longer be regulated in the US, as the Trump administration rolls back a set of environmental rules even in the face of opposition from large oil and gas companies.

Andrew Wheeler, the head of the US Environmental Protection Agency, will announce on Thursday a finalised version of proposals originally made last November to remove methane from federal oversight across the oil and gas industry.

The main component of natural gas, millions of tonnes of unburned methane leak each year from natural gas and petroleum systems, according to EPA data.

Methane traps heat in the atmosphere 25 times more effectively than carbon dioxide and accounts for 10 per cent of US greenhouse gas emissions. Environmental campaigners and even large parts of the oil and gas industry protested about the plans when they were published last year, but the Trump administration has said it intends to push ahead anyway.

Mr Wheeler has argued that existing rules on chemicals called “volatile organic compounds”

The main component of natural gas, millions of tonnes of unburned methane leak each year from natural gas and petroleum systems © REUTERS

would be adequate.

Advocates of the rollback say that the same equipment that is used to monitor VOC leaks also captures methane leaks, so the VOC rules will mean methane leaks are monitored as well.

Even the EPA admits, however, that failing to regulate methane emissions directly is likely to lead to them increasing. The agency said last year that it expected an

extra 370,000 short tons of methane — equivalent to 8.4m tonnes of carbon dioxide — to be emitted as a result.

The US backtrack on methane sets it apart from other jurisdictions that have taken steps to control leaks including Canada and Mexico, said Sarah Smith of Clean Air Task Force, an environmental group. In Europe, comments on new methane standards closed

last week, she said.

“The US is really alone in rolling this back,” she said.

The EPA’s action undoes methane rules imposed in 2016 under the Obama administration, the latest reversal of environmental regulations crafted by Mr Trump’s predecessor.

Lawyers say that Joe Biden, the Democratic presidential candidate, who was vice-president to

Barack Obama, could reinstate the regulations if he wins November’s election. Mr Biden has pledged to impose “aggressive” methane limits the day he takes office.

Some US oil and gas states are independently cracking down on methane leaks. Colorado, a significant shale producer, has standards in place, while New Mexico and Pennsylvania are pursuing them.

International oil companies including ExxonMobil, BP and Royal Dutch Shell opposed the rollback. The natural gas produced by these companies has pushed coal out of power stations and helped reduce carbon emissions, but those gains are undercut by methane pollution.

Regulation “helps build public confidence in the environmental responsibility and stewardship of the oil and natural gas industry and our ability to deliver clean and dispatchable energy that will lower the nation’s carbon footprint,” Krista Johnson, head of US government relations at Shell, wrote in comments submitted to the EPA. The American Petroleum Institute, the nation’s largest oil lobby, supported the EPA’s action. Its members include ExxonMobil, BP and Shell. Smaller oil and gas operators also backed the agency, arguing that the Obama-era regulation cost too much.

US stocks hover close to record while bonds steady Investors digest latest weekly unemployment claims Philip Stafford, Sarah Provan in London and Hudson Lockett in Hong Kong

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S stocks inched towards an all-time high on Thursday but investors were of nervous of passing the milestone amid uncertainty over whether Congress would agree another economic stimulus package.

The benchmark S&P 500 index struggled for direction in morning trade in New York, rising 0.1 per cent and trading within a narrow range while the technology-based Nasdaq Composite rose 0.8 per cent. The S&P 500 was within 10 points of a record high of 3,393.52 set in February.

The White House and Congress have been unable to agree a new economic stimulus package to help the millions of Americans left out of work amid the pandemic.

Hopes of a deal were tempered by news that weekly jobless claims in the US fell below 1m for the first time since the start of the coronavirus outbreak. The latest figure was fewer than the 1.1m analysts

had expected.

“With US stock markets at record highs and the jobless claims numbers still on a downward track, US politicians have little incentive to arrive at any sort of new stimulus deal,” said Michael Hewson, chief market strategist at CMC Markets, a UK online trading platform. “So the procrastination is likely to go on, until one or other of these two factors goes into reverse.”

Sentiment in European equities markets was hit after disappointing earnings reports from blue-chip shares including those www.businessday.ng

of the German steelmaker Thyssenkrupp and the Dutch insurer Aegon. The duo fell 16.3 per cent and 15.3 per cent respectively.

That pushed down the continentwide Stoxx 600 index by 0.6 per cent.

Markets in Frankfurt and Paris were lower by a little over half a percentage point while London’s FTSE 100 fell 1.3 per cent, with declines in oil and bank stocks.

However, the news did not put off some bulls.

“We expect most equity markets to rally further, so long as progress in limiting the economic

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impact of the virus continues,” said Oliver Allen, an economist at Capital Economics.

US Treasuries steadied following three days of selling.

The 10-year Treasury note yield trimmed an earlier decline to be little changed at 0.688 per cent.

The yield on the 10-year German Bund rose 4 basis points to minus 0.41 per cent.

As investors have shifted from haven sovereign debt into equities, yields on the 10-year Treasury have risen 12 basis points since the end of July while the German Bund yield touched its highest level since early June. Yields rise when prices fall.

“You’ve had a bit of a sell-off [on Treasuries] over the past week, so I think it’s natural you see some consolidation,” said Lyn GrahamTaylor, strategist at Rabobank.

“Markets assume that the Fed isn’t going to allow yields to rise very much.”

Fixed-income investors said they would pay close attention to a large auction of US 30-year bonds on Thursday. There had been strong demand in a record $38bn sale of 10-year notes on @Businessdayng

Wednesday.

“Despite the recent increase in yields and improvement in market functioning, we think that, given the substantial increase in auction size as well as the upsized 20-year auction coming up next week, [the 30-year auction will probably require robust demand] to be digested smoothly,” said Jay Barry, strategist at JPMorgan.

Asian equities markets were broadly higher with a 1.2 per cent gain in Japan’s Topix index, a two-month high, and a 0.2 per cent climb in South Korea’s Kospi.

China’s CSI 300 index of Shanghai and Shenzhen-listed stocks dropped 0.3 per cent.

Gold climbed 1.5 per cent to $1,944.56 a troy ounce. The precious metal has rallied this year in the face of broad dollar weakness and last week touched a record of more than $2,070 a troy ounce.

The dollar fell about 0.3 per cent against a basket of six developed market currencies, extending a decline from Wednesday.

Additional reporting by Tommy Stubbington in London

Women in Business

Akudo Anyanwu Ikemba CEO/Founder Friends Africa (Friends of the Global Fund Africa)

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kudo Anyanwu Ikemba is a Medical Doctor. She founded Friends Africa (Friends of the Global Fund Africa) as an African voice in support of the Global Fund and the fight against AIDS, Tuberculosis and Malaria.

She is an award-winning global health expert, public health innovator and social entrepreneur with over 15 years of experience in the field of international development. She is an Associate Dean at Johns Hopkins University.

Friends Africa mobilizes and builds the capacity of the African private sector, civil society and government to improve Africa’s health and is the winner of the 2012 Stevie Award for Non-profit of the year and finalist for the 2012 ONE Africa Award.

Through her leadership, Friends Africa has been able mobilize over $560 million USD to countries in Africa for the purpose of integrating family planning and HIV services in addition to training over 2700 SMEs across Africa to create a healthier workforce.

Anyanwu Ikemba is a World Economic Forum 2012-2017 Young Global Leader and a member of the Nigerian Leadership Initiative. She holds a Doctorate degree in medicine from Tufts University, a Master’s degree in International Public Health from Harvard University, and a Bachelor of Science degree in Molecular Biology from Lehigh University.

She also has diplomas in non-profit management and non-profit leadership from Duke University and she has done post graduate studies at the University of London and the London Hospital for Tropical Diseases.

Anyanwu Ikemba is the recipient of two 2012 Stevie Awards: Female Social Entrepreneur of the year and Female Innovator of the year respectively. Prior to Friends Africa, she was the Technical Advisor for Global Fund Projects in Nigeria, under Columbia University’s Access Project. In this role, she provided technical assistance to countries to enable them access and manage the Global Fund to Fight AIDS TB Malaria (GFATM) and was successful in securing $480 Million in funding for Nigeria from the Global Fund. She has worked for the Centers for Disease Control (CDC) in

Atlanta, Georgia and as an Associate Scientist with Life Technologies in Palo Alto, California.

She has also worked as a lecturer at Tufts University School of Medicine and has done extensive molecular biology research at Tufts University and Katholique University, Belgium on DNA analysis of Cryptosporium parvum and the motilin protein respectively.

Akudo has also served on the boards of Roll Back Malaria, the Global Health Council and the AIDS Healthcare Foundation. Anyanwu’s pioneering work on the Gift from Africa Campaign has been recognised by the Rockefeller Foundation as a top 100 next century innovation. She has also been recognised as Tufts University’s Distinguished Service Award (21015), a Harvard School of Public Health Innovator of the Year (2013), an Ogunte Social Leader of the Year (2013) and Stevie Innovator and Social Entrepreneur of the Year (2012).

Her interests are in infectious diseases, economic development and in public-private partnerships for health in developing countries. She is challenged and affected by Africa’s astoundingly poor health indicators and the low quality of health systems and infrastructure. Her life goal is to play a pivotal leadership role in improving Africa’s health status and development as a whole.

Friends Africa is an indigenous, independent pan-African organisation. It is an innovative, multi-sectoral organisation with credible and committed Board of Directors across Africa.

Akudo founded Friends Africa as an African voice to support the fight against AIDS, TB and Malaria. She birthed her idea of establishing her NGO while working as Technical Advisor for Global Fund Projects in Nigeria, realizing the numerous untapped opportunities on the continent; she envisioned an organisation that galvanizes the strengths of Africa’s private sector, civil society and government to save lives.

The Friends Africa story is indeed a story of commitment from Africa towards Africa, showing entrepreneurial rigor in the midst of challenges.

BUSINESS DAY Friday 14 August 2020 www.businessday.ng

By Kemi Ajumobi

Valerie Obaze CEO R&R Luxury

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alerie Obaze is a beauty entrepreneur, mother, wife and philanthropist. She founded the awardwinning luxury skincare brand R&R in 2010, following the birth of her first daughter. Her inspiration to create the brand arose from the life changing experience of motherhood and a deep desire to nurture and nourish both her daughter’s and her own skin with the purest natural beauty products.

Being a lover of nature and a beauty enthusiast with a natural affinity for aesthetics, she was drawn to seek the best products made with the most potent ingredients that nature could offer. Her discontent in not finding what she so desired, started a journey of discovery that led her back to one of nature’s purest and richest ingredients, Shea, which became the core of her first beauty formulation. Today, R&R offers a full range of luxury beauty products and home fragrances formulated with Shea butter and other natural ingredients, using the most meticulous production methods.

As she was becoming a mother for the first time, she wanted the best for her newborn baby and was determined to find a natural product gentle enough to use on her skin. After a chance encounter with a massage therapist, who only used natural oils for treatments, she started to look into natural ingredients that were grown locally in West Africa. It was then that she was introduced to the amazing healing properties and various uses of shea butter. She continued her research and noticed a gap in the market for luxury natural products that use Africa’s purest and most effective ingredients, which are kind enough for newborns, young children and adults. From there, the idea for R&R Luxury was born with her first product, Shea Oil, and the rest as they say, is history.

Born in London to Ghanaian parents, she was nurtured with an ingrained entrepreneurial, independent and leadership spirit, shaped by my unrelenting pursuit of excellence from her first job at the age of 14

years, while in secondary school, to date.

After graduating from the university with a Bachelor of Arts in Communications, Culture and Media from Coventry University; where she was also the President of the Coventry University African/Caribbean Society, she built a successful Public Relations career in the United Kingdom and beyond, culminating in the launch of her own agency in 2008.

She has always had an entrepreneurial mindset. Till date, her goal is to show the rest of the world the amazing natural ingredients that are indigenous to Western Africa, which can be used by anyone and everyone no matter their age, race, gender, skin type or tone.

In addition to leading her brand R&R to continuous growth, she is also an active board director for three foundations of which she is a founding member of two and sits on the board of one, including: My Sister’s Keeper Ghana, The Women of the Savannah Development Project (WSDP) and Outpouring To The Nations (OTTN) respectively.

She also co-created the Mumpreneurs Network Nigeria in 2015 to support her fellow working mothers in balancing family life while becoming a successful business woman and more recently, co-founded The Afristyle Lounge Collective in December 2019 to promote the extraordinary fashion, beauty and lifestyle brands coming out of the African Continent.

Valerie says she is grateful to be married to her best friend and high school sweetheart. They are both blessed with three beautiful children.

Obaze admits that being an entrepreneur forces you outside of your comfort zone and as such, you aren’t immune to errors nevertheless, she says, despite the daunting challenges, you must be confident in your idea, in your plan and in yourself, but most importantly, “start where you are with what you have, insert passion, dedication, research and prayers and watch it grow”. She admonished.

For sponsorship and advert placement contact: kemi@businessdayonline.com Published by BusinessDAY Media Ltd., The Brook, 6 Point Road, GRA, Apapa, Lagos. Advert Hotline: 08033225506. Subscriptions 01-2950687, 07045792677. Newsroom: 08169609331 Editor: Patrick Atuanya. All correspondence to BusinessDAY Media Ltd., Box 1002, Festac Lagos. ISSN 1595 - 8590.