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Beyond peace accords: Nigeria needs violence-free elections D “ B

Despite improved capital importation, Nigeria’s FDI leaves nothing to cheer

DIPO OLADEHINDE & OLUWASEGUN OLAKOYENIKAN

ISAAC ANYAOGU

e t w e e n 1 0 a. m. and 12p.m., they entered the school chanting slogans and shouting: ‘Where are the Christians that supported the ruling party?’ “When you see the mob, they L-R: Abdulsalami Abubakar, former head of state; President Muhammadu Buhari, APC presidential candidate; Atiku Abubakar, PDP presidential candidate, and Ellen JohnsonSirleaf, head of ECOWAS election observers and former Liberian president, at the second signing of peace accord for the conduct of Nigeria’s 2019 general election in Abuja.

were not in their senses. They had painted their faces black and were shouting that they needed ‘change’, the Congress for Progressive Change (CPC) campaign slogan. “The mob had all sorts of weapons – machetes, sticks, and clubs. They started breaking the windows on the buildings. The

ANALYSIS

students ran away but the mob pursued them into the staff quarters and they had nowhere to go. The mob beat them to death and hit them with machetes.” The above is an eye-witness account of a lecturer at the Nuhu Bamalli Polytechnic, a college on

the outskirts of the city of Zaria in northern Kaduna State, to Human Rights Watch after former President Goodluck Jonathan was announced as winner of the 2011 presidential election. Over 800 people died following clashes in northern Nigeria. Continues on page 38

espite relative improvement in capital importation, Foreign Direct Investment (FDI) inflow into Africa’s largest economy is worsening, according to latest data from the National Bureau of Statistics (NBS) released yesterday. This is no thanks to poor investment climate characterised by overly stringent or impromptu government policies, bureaucratic bottlenecks for securing permits, and a weak legal framework. Total capital importation into Nigeria in 2018 stood at $16.8 billion, compared to $12.2 billion in 2017, representing a yearon-year growth of 37.49 percent thanks to portfolio investment, Continues on page 38

Inside WAV, STG resolve years of rift, sign settlement P. 39 agreement Shell, partners sign 300m cubic feet of gas FID P. 39 Understanding the economy of Nigeria’s 36 states – South-West

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Insurers see rise in policy surrender over increasing unemployment, poverty MODESTUS ANAESORONYE

he increasing rates of unemployment and poverty in Nigeriaarehavinganegativeimpact on the insurance business. Africa’s most populous nation has over the last three and a half years witnessed high rate of job losses and deepening poverty level. Unemployment rate in Nigeria increased to 23.10 percent in the third quarter of 2018, from 9.9 percent in the third quarter of 2015, according to data from the National Bureau of Statistics (NBS). Similarly, more Nigerians have slid into poverty, with about 87 million Nigerians in extreme poverty as at the end of May 2018, and six Nigerians sliding into extreme poverty every minute, according to a June 2018 Brookings Institution report. As a result, the insurance industry, particularly life business, has seen rising policy surrender following the inability of policyholders, who are seeking cash value to meet basic needs, to continue payment of premiums. This development has led to increase in claims paid by insurance companies to their policyholders who voluntarily chose to terminate their policies. The cash surrender value is the sum of money an insurance company pays to a policyholder or an annuity contract owner in the event that his or her policy is voluntarily terminated before its maturity or an insured event occurs. Sometimes after owning life insurance for a number of years, people have changes in their lives. They could surrender their life insurance contracts as one of the first ways to pay unexpected expenses such as house rents, new business, or to get through a period of unemployment. For the general insurance business, the response to the economic situation is usually reduction in pol-

icy coverage or breaking of premium payment in bits to suit income flow. “We are witnessing increasing level of policy surrender in our life business more than we saw some years back,” said an insurance CEO who preferred not to be mentioned. “I suspect that it is in response to the economic situation. Some people who lost their jobs are yet to get new one; some need cash to pay their children’s school fees, and some want to complete their house project,” the CEO told BusinessDay. The fact that insurance money comes handy when one is down, he said, is one of the benefits of insurance that many people do not know. “Policy surrender does not stop you from paying your premium because thereisalifecoverthataccompaniesthe policy,whichbecomesanotherbooster in the event of the unexpected,” he said. For instance, Mutual Benefits Life Assurance, a member of Mutual Benefits Group, paid N13.05 billion in claims between January and August 2018. Analysis of the claims paid in life business during the period shows that clients’ maturity benefits accounted for N5.50 billion, while surrender benefits was N4.9 billion. The life business also paid N2.6 billion in death benefits to dependants of deceased insured, while N34 million was paid as death claims. Sovereign Trust Insurance plc in 2018 settled claims totalling N4.24 billion to various insured across the country. Segun Bankole, head, corporate communications, Sovereign Trust Insuranceplc,saidtheclaimspaidin2018 were quite humongous, attributing this to the downturn in the economy. “Every insured wants to claim at every given opportunity which really escalated the claims figure for the year,” Bankole said. Niger Insurance also paid N2 billion in 2018 to policyholders in the life and general business.

North African countries leave Nigeria behind in job creation, poverty reduction BALA AUGIE

hile Nigerian policymakers were sleeping, some East African countries were creating jobs and lifting millions of their population out of poverty. Egypt’s unemployment rate fell to 8.9 percent in the fourth quarter of 2018, from 10 percent in the previous quarter, for instance, while Morocco’s unemployment rate dropped to 9.8 percent in 2018, from 10.2 percent in 2017. In Nigeria, unemployment rate increased from 18.8 percent in the third quarter of 2017 to 23.1 percent in the third quarter of 2018. Nigeria is currently tagged poverty headquarters of the world with over 87 million people in extreme poverty, according to a 2018 Brookings Institution report. This is because Nigeria’s policymakers have failed to embrace reforms that would unlock opportunities like some East African countries. Back in 2016, Egypt and Nigeria were in the same situation when they both grappled with a severe dollar scarcity that paralysed business activities and hemorrhaged external reserves.

But Egypt was able to revive a struggling economy and improve the standard of people by agreeing to a $12 billion International Monetary Fund (IMF) loan. The credit facilities, which are in tranches, reflated Egypt’s economy as government was awash with money to fund infrastructure projects while businesses had access to foreign currency to import raw materials and equipment to meet production. Morocco adopted a more flexible foreign exchange system under freemarket reforms recommended by the IMF, a policy that made the country’s assets attractive to foreign investors. On the other hand, Nigeria’s refusal to adopt the right reforms has left its economy battered and its citizens despondent as they get poorer as the clock ticks. For instance, the Petroleum Industry Bill has yet to be passed and the the Central Bank of Nigeria (CBN) refused to float the naira at the height of the currency crisis that tipped the country into its first recession in 25 years. Perhaps more worrisome is that government, rather than selling assets and using the proceeds to fund

Continues on page 38

L-R: Mike Amaeshike, MD, West African Ventures Limited; Simbi Wabote, executive secretary, Nigerian Content Development & Monitoring Board (NCDMB), and Fraser Moore, MD, Sea Trucks Group/Telford/Afrimarine Limited, having friendship handshake after signing of the settlement agreement between STG & WAV in Lagos.

Stock investors price in likely outcome of Nigeria’s election IHEANYI NWACHUKWU & OLUWASEGUN OLAKOYENIKAN

he past weeks may have marked a turning point in Nigeria’s political history, but uncertainties that earlier beclouded the possible outcome of the presidential election seem to be whittling down. Nigerians will this Saturday go the polls to choose their next president in a keenly-contested election between Muhammadu Buhari, incumbent president and ruling All Progressives Congress (APC) flag-bearer, and Atiku Abubakar, a former vice president and presidential candidate of the People’s Democratic Party (PDP). While Nigeria’s major opposition PDP, after 16 years in power, is working very hard to regain its populist position in the run-up to the elections, the ruling APC is also trying to turn the tide in its favour after criticisms that it led Nigeria to become home to highest number of very poor people in the world. But more investors are routing to take shots into value stocks on the back of the whittling down of

political uncertainties ahead of Saturday’s election following projections that the election will be largely peaceful. “Because there are no longer election uncertainties, what happens in this case is bargain hunting in anticipation of post-election rally,” said Fola Abimbola, an equity research analyst at FBN Quest. “People are expectant that there will be a peaceful transition going by previous election outcomes,” Abimbola said. Lucky Djebah, an equity research analyst at Lagos-based Qualinvest Capital Limited, said the market would rally irrespective of who wins. “If Buhari wins, the market would rally, but if Atiku wins, the market will rally the more,” Djebah said. “The reason the market will rally the more is that there are lot of funds that are trapped because of anti-money regulations. Whether we like it or not, those are slush funds; they go into every system, and those kinds of inflows have been coming to the Nigerian market and once the government fights with anti-money regulation, you

see those inflows will hang. “If it is an Atiku that is more loose in terms of corruption, you will see some of those inflows coming into the market. The market will receive Atiku’s win more positively than Buhari’s victory. With Buhari’s victory, the market will move but not as much as if Atiku is declared the winner,” he said. Nigerian stocks began a resounding rebound last week with their returns comfortably in the positive territory of +3.13 percent, representing value accretion of about N330 billion as evidenced in investors’ decisions to stage a comeback on Custom Street. Before a negative close recorded Wednesday, February 13, stocks were up to their highest level in almost four months as equity investors were seen taking positions in cheap stocks with sound fundamentals and good records of dividend payment, owing to rising optimism of market rally after Nigeria’s 2019 general elections scheduled to kick off this Saturday. The stock market which opened this year with record value of

Continues on page 38

Employed Nigerian pilots rise by 34% in 2018 despite stunted aviation growth …experts tie increase to implementation of expatriate quota, rise in charter operations IFEOMA OKEKE

espite the stunted growth in the country’s aviation sector, causing airlines to reduce fleet and suspend operations, there has been a remarkable increase in the number of Nigerian pilots employed in the country. BusinessDay checks show that Nigeria’s eight commercial airlines, which altogether had over 70 aircraft on their fleet, are currently struggling with about 30 to 35 aircraft, thereby causing passenger glut. Yet, the total number of licensed pilots in Nigeria (foreign and Nigerian pilots) increased to 2,260 in 2018, from 2,226 in 2016, according to documents obtained from the Nigeria Civil Aviation Authority (NCAA). Similarly, the number of licensed (employed) Nigerian pilots grew

from 1,300 to 1,739 over the same period, representing approximately 34 percent increase. Experts in the aviation sector have tied this significant increase to the Federal Government’s implementation of expatriate quota system and the rise of charter flight operators in Nigeria. Hadi Sirika, minister of state for Aviation, said in 2017 that the Federal Government has put in place a policy to regulate the engagement of expatriates in the aviation sector in a bid to help engage Nigerian professionals in aviation, particularly pilots and engineers who do not have jobs. Sirika said with the policy on ground, the only areas where expatriates would be engaged would be areas where there were no licensed Nigerian professionals to handle. Isaac Balami, former president,

National Association of Aircraft Pilots and Engineers (NAAPE), told BusinessDay that although Nigerian pilots are still going outside the country to practise, many domestic and foreign airlines are now working with Nigerian pilots. “Hadi Sirika and Muhtar Shaibu Usman, DG of NCAA, have taken this into consideration. There was a time we had a committee where we agreed the expatriate quota should be looked at critically. There has been a lot of improvement,” Balami said. Chris Iwarah, corporate communications manager, Air Peace Limited, told BusinessDay that AirPeace has employed 141 foreign and Nigerian pilots since 2016, with most of them being Nigerian pilots.

•Continues online at www.businessday.ng

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Disappearance of Apapa trucks: A short-lived dream JOSEPH MAURICE OGU

rior to President Muhammadu Buhari’s visit for his presidential campaign in Lagos, February 9, all roads leading to Teslim Balogun Stadium from all axes were cleared of trucks and tankers. With this, the menace of trucks on Apapa roads that had apparently defied all efforts suddenly disappeared in less than 48 hours prior to the president’s visit. So, from Friday to that Saturday, all roads leading to Apapa were free and one could go into or leave Apapa in no time. That was the dream Lagosians thought had come to stay. But the dream of having a smooth ride on Apapa roads was short lived. Just minutes after the departure of the president, the trucks were back to their ‘normal’ parks on the bridges. Earlier, some of the Apapa residents had thought the trucks within the area would remain and Apapa would not benefit from the clean-up process for the presidential visit since the president’s itinerary did not include Apapa.

Surprisingly, the clearing of trucks off the presidential route extended to Apapa and its environs. Words from the Lagos State government quarters and other government agencies entrusted with the handling of the visit indicated that the president could use the opportunity of his visit to Lagos to visit Apapa and see for himself the people’s plight, which also triggered the recent demonstration by Apapa residents. This uncertainty possibly led the authorities to include Apapa in their areas of consideration for the president’s itinerary. Another quarter had it that the security operatives felt that the president would not be safe with the presence of the trucks littering Lagos roads. It said this was why the security operatives enforced the removal of all trucks and trailers from the roads during the visit. However, this dream was short-lived. No sooner had the president departed Lagos, than the trailers were let loose like specially bred, starving dogs and made their ways back to Apapa. Those who witnessed the free flow of traf-

fic on Saturday were disappointed to see the trucks back minutes after the departure of the president. Worshippers had hectic experience getting to their worship centres in and out of Apapa on Sunday. Workers and residents of Apapa equally lament ugly experiences they had in trying accessing Apapa, especially after the departure of the president. “They’re hypocrites, the people in government know what they’re doing. In one minute they removed the trailers, in another minute, the trailers are back”, fumed Kunle Ologa, a motorist who has his business in Apapa. “Buhari is the number one servant we have. It’s a slap on us because the president isn’t above the people. The president’s responsibility is to serve the people,” said Aderemi Olikuntuyi, chairman, Apapa Community Association.” According to the retired military officer, for the president to come and the security outfits could clear the roads shows that they have the capacity to make life better for us. “But why are they not doing it,” Olikuntuyi queried.

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AU identifies Nigeria among severely health stressed countries ANTHONIA OBOKOH

... as Dangote launches continental health coalition

igeria has been identified as one of the severely health stressed countries in Africa at the 32nd Summit of the African Union (AU), as the country spends less on health than they should relative to their Gross Domestic Product (GDP). Healthcare delivery in Nigeria has experienced progressive deterioration due largely to weakened political will on the part of successive governments to effectively solve a number of problems that have accumulated in the sector over years. This directly impacts the productivity of citizens and by extension Nigeria’s economic growth. Kenya’s health minister, Sicily K. Kariuki, says Kenya is a role model for driving private sector capital into health: “We have $4.5 billion invested

from the private sector in health; it’s projected this can grow to upwards of $11 billion in the next 10 years.” The Healthcare and Economic Growth in Africa report launched February 12 at Africa Health Business Forum in Addis Ababa, Ethiopia, discloses that Angola, Chad, Mauritania, Nigeria, Sierra Leone, South Sudan and Zimbabwe spend less in health, disease is high and there is a low density of skilled workers in these countries. Michel Sidibe, executive director, UNAIDS, says Africa Business Health Forum is promoting a critical dialogue between African private and public sectors on strengthening national health systems in Africa, as prioritising health financing is a political choice, spending on health must be considered as an investment and not a cost, and invest-

ments in health are investments in human capital. “Without making health a right for every single citizen it will not be possible for us to achieve our dreams of 2030,” he states. However, demonstrating their strong commitment to the health and well being of their populations and to improve access to health, Nigerian business mogul, Aliko Dangote, through his Foundation, launched in Addis Ababa on Tuesday, African Health Coalition together with more than 10 companies joining the African Business Coalition on Health “ABCHealth.” “One percent of the company’s after tax returns for health activities in Africa,” Dangote says, represented by his daughter, Halima AlikoDangote, executive director of the Dangote Group.

“I am ready to work with African leaders in helping fix the continent’s health challenges. However, a healthy Africa can achieve sustainable and inclusive growth,” he states. According to a report issued by the United Nations Economic Commission for Africa, there is a $66 billion financing gap in the healthcare annually. Calling for public private partnership, Vera Songwe, executive secretary with the UNECA, notes that there are potential economic opportunities in tune of $450 billion investment in the health sector across Africa. “Africa imports $14 billion worth of its pharmaceuticals. The health and wellness sector has potential to create 16 million jobs. We should no longer export those jobs. We should bring them back,” she advises. L-R: Chukwudike Nwanko, federal controller of works, Abia State, and representatives of the minister of works; Empire Kanu; Okechukwu Enalamah, minister of industry, trade and investment, and Bosun Kalejaiye, project director, AG Dangote plc, during the ground breaking ceremony of Ofeme road Abia State as part of road infrastructure tax credit incentive scheme in Abia State.

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Processing Centre ready before mid-year - Obaseki

overnor Godwin Obaseki of Edo State says the first of the several production and processing centres being set up across the state will be open to micro, small and medium enterprises before middle of the year. The facility, located off Sapele Road in Benin City, will be followed by the second processing centre which is being located inside the Government Science and Technical College, formerly Benin Technical College (BTC), set for launch in September. Speaking during a meeting with beneficiaries of the Federal Government’s NPower initiative, a component of the Social Investment Programme (SIP), Obaseki urged youths in the state to vote for candidates of the All Progressives Congress (APC) in the forthcoming general elections. “I am looking for other

facilities in Irrua and Auchi to create more processing centres. The centre will have facilities that artisans and small and medium scale enterprises will utilise to grow their businesses,” he said. The governor added that the first set of companies that would operate from the Benin Industrial and Enterprise Park would commence business by the first quarter of 2020. “We are reviewing the companies and we are making arrangement on how people from the state can be trained to provide the needed skills for the companies that will operate at the park. “We are encouraging people to invest in the state so that your skills will be in high demand,” he said. He explained that to sustain the tempo of development in all sectors of the state, backed by the APC-led federal government, he requires the support of the youths.

CCT issues bench warrant of arrest on Onnoghen

ode of Conduct Tribunal (CCT) on Wednesday in Abuja issued a bench warrant for the arrest of Justice Walter Onngohen, over his continuous failure to submit himself for trial. The Federal Government had filed a six-count charge against the embattled suspended CJN on allegations bordering on non-declaration of assets. Adegboyega Awomolo, counsel to Onnoghen, had approached the tribunal with an oral application for adjournment of proceedings pending the decision of the National Judicial Council (NJC) on the matter. Umar Danladi, chairman of the tribunal, held that the only option left to the tribunal was to compel the defendant to appear before it.

Danladi said the defendant was using legal technicalities to abort his trial, adding that the tribunal had taken judicial notice of some delay tactics being deployed. He said the Administration of Criminal Justice Act had mandated speedy conduct of criminal cases, adding that it was incumbent on the defendant to appear and take his plea. He said the defendant had consistently avoided the trial, and that none of the interlocutory applications filed by the defendant would be dispensed without him surrendering to the authority of the tribunal. “In the circumstance, I hereby order that the defendant surrenders himself to the tribunal before he can challenge the validity of the process.

Buhari violates laws by refusing to constitute boards of parastatals - NECA TVC set for dynamic audience, unveils multi-million naira new studio JOSHUA BASSEY

resident Muhammadu Buhari-led Federal Government is violating the acts that established the various parastatals and agencies - like the Nigerian Social Insurance Trust Fund (NSITF) and National Pensions Commission (PenCom) by refusing to constitute their governing boards. This is the position of Nigeria Employers Consultative Association (NECA). NECA says apart violating the laws, the non-constitution of the boards is capable of eroding the confidence of Nigerians in the affected agencies. Timothy Olawale, director-general of NECA, speaking in Lagos as a follow up

to the recent investigative activity of the National Assembly on PenCom, reminded the presidency that Section 19 of the Pension Reform Act 2014 provides for a governing board of PenCom saddled with certain responsibilities. “It is saddening to note that the board of the PenCom has not been constituted. This raises fundamental governance issue, as contributors’ funds are involved, being contributions from employers and workers in Nigeria,” Olawale said. The NECA DG further stated that the implication of the non-governance framework, which is to regulate the activities of these agencies, three and half years down the line, is unfortunate, especially for

a government that prides itself in the rule of law. “There is, therefore, no reason why boards of various government agencies should, urgently, not be constituted and inaugurated – to avoid eroding the confidence that had been built over the years by Nigerians, especially where contributors; funds are involved and should be protected,” he said. The DG said the acts establishing the various agencies had provided for the composition of the board members and in some instance; institutional representative; to the boards are mentioned. “Thus, government should ensure and encourage the practice of good corporate governance at all levels,” he said.

DANIEL OBI

VC Communications, a member of independentlyowned and operated media organisation, has unveiled a brand-new high definition news studio at its headquarters in Lagos. The cost of the new studio designed and constructed in Mumbai, India, was not disclosed but it runs into millions of naira. Following substantial investment in studio operations and mobile digital satellite technology, management of TVC News said the company is now positioned to become the home of breaking news for Nigeria, ensuring the fast and reliable reporting of news stories whenever, and wherever those stories break around the Federation from

its network of news bureau and correspondents. Andrew Hanlon, CEO, TVC Communications, said its improved news service formed part of a substantial ongoing investment plan aimed at growing the TVC Group of Companies into one of the country’s leading media organisations. Hanlon said, “Behind this state-of-the art studio in Lagos lies the real engine of our news operation: a substantial team of journalists, producers and the latest mobile satellite technology, spread throughout Nigeria, providing us with the ability to broadcast live anywhere, anytime. This will be put to the test this election weekend as over 80 million Nigerians go to the polls to cast their votes. “We must be capable of mobilising correspondent’s

and technical teams anywhere, anytime in this vast country, to cover stories within a very short space of time to get the story on air first – and that’s what separates TVC News from other news networks and allows us to be First With Breaking News.” In addition, is a powerful new suite of motion graphics and visual elements that provide a contemporary look and feel to the TVC News channel, produced by the most talented Nigerian professionals. Also speaking at the event, director of news, TVC News, Stella Din-Jacob, said, “We are incredibly fortunate to have some of the best people and broadcast facilities in continental Africa which will enable us to bring the highest quality news service to our viewers right across Nigeria, Africa and Europe.

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Alleviating poverty with more investments in the transportation sector in Nigeria and Africa

Festus Okotie

he process of poverty reduction is embedded in a broad range of socio-economic activities to which transportation provides intermediate inputs. Poverty can be measured in absolute and relative terms. Absolute poverty is defined with a minimum subsistence level and a poverty line specifies a dollar amount necessary to sustain livelihood (primarily minimum nutrition). It is also characterized by many non-income conditions such as malnutrition, ill health, illiteracy and lack of access to basic social amenities. The extent of absolute poverty for a country or a region can be defined by the number or fraction of people living below the poverty line and an individual is regarded as poor if his or her income falls below the poverty line. Relative poverty is about where people at the bottom stand relative to people elsewhere in the income distribution index level, usually around the middle. A relative poverty measure might be the fraction of the people with income less than half of median income level and reduction of absolute poverty can be achieved either directly through income redistribution or indirectly through per capita income growth.

The direct approach focuses on the provision of basic education, nutrition, health, access to employment and product markets for the poor. It arises from recognition that the very poor generally do not have sufficient resources to meet basic human needs and because of the lack of human capital, in many cases they may not be able to take adequate advantage of the economic opportunities generated by national economic growth. Direct interventions to assist the poor can vary from being essentially re-distributive transfers to being warranted on efficiency grounds alone, while the indirect approach addresses poverty through investments and policies that foster economic growth, enhances the performance of markets, facilitate flexibility of adjustments, increases the efficiency of resource allocation and the gains from overall growth of GDP. Per capita income are expected to bring benefits to the population as a whole including the poor in the forms of jobs creation, economic, social opportunities and basic human necessities. A large body of empirical evidence shows that sustained national economic growth generally contributes to the alleviation of absolute poverty and poverty reduction policies are heavily affected by the relative emphasis that a country attaches to promoting growth and raising the real incomes of the poor. The relative emphasis has much to do with the gravity of poverty, levels of national incomes and the nature of the political process for public choices. Therefore, the combination of the two approaches varies and is highly influenced by the specific circumstances at a particular point in time. A new report by the World Poverty Clock shows Nigeria has overtaken India as the country with the most extreme poor people in the world, while India has a population seven times larger

than Nigeria’s. It is very unfortunate to see this current situation in our nation and this struggle to lift more citizens out of extreme poverty is an indictment on successive Nigerian governments which mismanaged the vast oil riches through incompetence, corruption, lack of awareness on how to diversify the economy and take advantage of the huge natural resources the nation is blessed with. 86.9 million Nigerians now living in extreme poverty represents nearly 50% of its estimated 180 million population. As Nigeria faces a major population boom—it will become the world’s third largest country by 2050—it’s problem will likely worsen if deliberate steps are not taken to stop it, although having large swathes of people still living in extreme poverty is an Africawide problem and its high time the leaders of Africa come together once and for all to put an end to this challenge. In line with the direct and indirect approaches to poverty reduction, developmental projects in the transport sector can roughly be divided into three categories projects that focus on poverty, projects oriented toward efficiency and growth, efficiency- and growth-oriented projects with components that focus on addressing poverty. The concern of this article is a more detailed understanding of how transportation improvements can either focus on addressing poverty or on growth, contribute to poverty reduction. In general, a transport project is expected to contribute to poverty reduction through its indirect impacts and stimulation of economic growth or its direct impact on personal welfare of the poor. The exact impact the project would have on poverty reduction hinges on both the type of infrastructure or services, the areas and people the project would serve. This also depends on the operating environment of the project particularly market structures and government poli-

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Transportation generally contributes to the alleviation of absolute poverty

cies and regulations. In general, local access roads in poor rural and urban areas make only a modest contribution to national income growth, but they have a direct and significant impact on the daily life of the poor. On the other hand, inter-city transport modes such as trunk roads, air, rail and shipping are of strategic significance to a national economy which were provided with the objectives to stimulate and facilitate national income growth. Their impacts on poverty reduction are very significant. Such modes creates jobs and business opportunities. The process through which the benefits of transport investments and policies lead to improvements in the standard of living of the low-income groups often involves many links. The final general equilibrium outcomes and incidence pattern across various groups are often very difficult to predict. Investments in the transport sector improve access to economic opportunities by reducing transport costs. The provision of transport market structures brings about competition, which is reflected in a reduction in prices for both freight and passenger services. Again, under competitive conditions, significant predictable consequences will arise. These include lower market prices for final products (both rural products and consumer goods), spatial extension of the market (due to the transport-induced changes in production and consumption patterns), higher personal mobility and stimulation of growth efficiency in the system. Note: The rest of this article continues in the online edition of Business Day @ https://businessday.ng Okotie, a maritime transport specialist, writes via fokotie.bernardhall@gmail.com, Fokotie@ bernardhallgroup.com

Why Atiku is good for Nigeria Louis Okoroma

t is a good development that the former ruling party, the Peoples Democratic Party (PDP), has come back to reckoning. This is a party that was founded to promote the unity of Nigeria under a pan-Nigeria platform. The party that is home to great Nigerians like Olusegun Obasanjo, late Solomon Lar, late Abubakar Rimi, former Governor of Kano State, former Vice President Atiku Abubakar and other notables like late Dr. Alex Ekwueme, General Ibrahim Babangida, and most of the top members of today’s ruling All Progressives Congress. It is equally a good sign for Nigerians who have had a rough time under the leadership of President Muhammadu Buhari that a humane and detribalized Nigerian, in the person of Atiku Abubakar, a good economic manager is the presidential candidate of the resurgent PDP. The good thing about Atiku’s candidacy is that at last, an alternative to the Buhari brand of leadership has emerged in the person of a man who is many things rolled into one, and in whom Nigerians will find the qualities they are looking for, in management and leadership. Before it lost the 2015 presidential election, the PDP was a party that did not lack capable men and women to engage in a presidential contest. In fact, it could be said that the PDP has always been star-studded. Today, however the situation is slightly different as a political party might have star personalities but only a few would have the leadership quality to lead a country like Nigeria that has clearly faltered in many aspects of development. Atiku Abubakar, the Waziri of Adamawa and a Nigerian of fine credentials comes in as a breath of fresh air both from the resurgent PDP and from

the Northern part of the country that has been poorly represented by the clannish administration of President Muhammadu Buhari. For the APC’s change of duplicity to be replaced by a real change under a man ready, eager and yearning for service to be actualized, the APC has to run the incompetent and divisive government it has been running under Buhari since May 2015, which openly denied responsibility for the promises it made to Nigerians during the campaign for the 2015 election. There are many reasons why Atiku Abubakar is the right person for the people of Nigeria at this time following the uninspiring leadership of President Muhammadu Buhari. First, Atiku Abubakar has a blueprint of governance. The former Vice President who enjoys the company of educated people and is an intellectual in his own right has prepared a policy document with his vision encapsulated in JOBS – Jobs, Opportunity, Being United and Security. In it, he set out his vision of the developmental challenges facing the country and how he will tackle them, sector by sector when he becomes president. Second, and related to the above, on the 25th of April 2018, Atiku Abubakar outlined his governance and political agenda to a select and distinguished international audience of foreign diplomats, Nigerians, politicians, academics and leading businessmen at the international think tank, Chatham House in London, the UK. In the lecture titled, ‘’The Importance of strengthening States’ Economic Management Systems’, Atiku presented an outline of a cooperative and allinclusive type of democratic government in which the states and the Federal Government would be partners in a transparent system built on prudent economic management, as against the present situation of master-servant relationship where the states get monthly handouts from the central government! According to Atiku and experts who

have reviewed the lecture, this system of national economic management will liberate the creative energies of the States and encourage them to mobilize and better utilize resources for development in areas where they have comparative advantages. Third, through his anti-corruption crusade for which Nigerians are grateful but which has unfairly targeted mostly opposition politicians nationwide, the APC government has worked hard to taint most PDP members. On this score, Atiku Abubakar has been vindicated by no less a person than Prof Itse Sagay, czar of the president’s anti graft panel. On the contrary, the corruption and scandals of person we have today appears to be Muhammadu Buhari, going by the many corruption scandals involving many members of his close circle of trusted aides and functionaries and the fact that in most cases, he has failed to discipline and sanction them. On the issue of corruption, the former Vice President is only a victim of allegations, hearsay and suspicion because of his wealth and investment. These allegations are trite as none has been proven in any Court of Law, even when Atiku himself has gone to Court to challenge the allegations. And when one talks of Atiku’s immense wealth, one has not seen the name of the Waziri Adamawa among Africa’s richest men or even the list of the World’s wealthiest rather Atiku could make the short list of those who have impacted humanity the most. Atiku’s investments are the Atiku Group of Schools in Yola, capital of Adamawa State and the development institution known as the American University of Nigeria (AUN), also in Yola. The AUN is the first development-oriented institution of higher learning in Africa. Atiku also established Adama Beverages Limited in Yola, which makes potable water and fruit drinks, as well as Rico Gado Animal Nutrition which makes feed for all classes of livestock. The common trend that runs

through all of these investments of the former Vice President is that they provide employment to thousands of Nigerians directly and indirectly, provides quality education, and provides skills and entrepreneurship as well as innovation, which is the catalyst of development. Fourth, Atiku aside from being a foremost investor and entrepreneur is a good economic manager. As Vice President under former President Olusegun Obasanjo, Atiku was the Chairman of the National Economic Council which started a revolution of sorts in the management of the national economy. Under the Obasanjo/Abubakar administration, Nigeria did well in introducing measures and implementing policies that gave the entire national economy a lease of life and breath of fresh air and created jobs and regular income for the majority of Nigerians. Several industries and companies, both local and foreign started business in Nigeria while those who had been in the country before 1999, expanded their businesses, and modernized their production processes. If we reflect on the fact that the PDP left office in 2015, for Muhammadu Buhari of the APC to takeover, and since then, 13 million jobs have been lost and hundreds of businesses collapsed or relocated outside the country, it would be clear what a disaster the Buhari government has been. It is therefore a matter of urgency for Nigerians to elect in the February 16 presidential elections, a man used to business and entrepreneurship and who gets things to work to replace Muhammadu Buhari, who clearly has failed to get his thoughts and bearing together since May 2015. Note: The rest of this article continues in the online edition of Business Day @https://businessday.ng Louis Okoroma writes from Abuja.

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Thursday 14 February 2019

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Democracy as warfare

Zeal Akaraiwe

rom a rather random discussion on how politicians treat opposition party members, we tried to narrate stories in our native tongues using the word “opposition” in as friendly a term as possible but we all ran into the same brick wall: first, what exactly is opposition in our native language? It all seemed, for most, to relate, or translate, one way or another, to “enemy”. So, out of sheer curiosity, I ran a short poll asking if “opposition” translated to anything other then “enemy” and if the poll has any truth in it, it becomes clear that one of the major concepts in strengthening democratic values is entirely alien to our native languages and our thinking. It will be rather odd to consider the implications of running a style of govt that is in conflict with our native languages and therefore inconsistent with our innate thinking and also,

considering that our educational system has nothing in the curriculum to address our style of government, it’s no surprise that there’s nothing in our educational system that attempts to address this. In a democracy, there are certain pillars and concepts that, where absent, despite what you call the style of government you run, cannot function in the real spirit of a democracy. It is not uncommon to find a country that has civilian rule via elections and yet, in the true spirit, not have a democracy. Such countries mouth the term “dividends of democracy”but yet, the reality is far removed from them. The pillars to test a democracy are: rule of law and equity; freedom; representation and inclusion. And without these pillars and concepts, there can be no real democracy. But let me not digress! Back to our native languages and the translation and/or meaning of the word and concept of “opposition”. How can a “ruling party” ever accept the concept of rule of law if rule of law is in favour of the “opposition” who, in their innate thinking is an “enemy” or “adversary”. The electorate will claim to have, or at least want to have, a government for the people, of the people and by the people; a government that is made up of citizens who are keen to serve the people and improve humanity for the nation as a whole. However, we find that a real good number of politicians go into elections, not to serve but for power; they thirst for power in its

absoluteness and thus, we experience the consequence of ammorals having absolute power. We are told it is a democracy, but in reality, it is partisan subjugative conquest: party in power, with power and for power. This must be the reason why the reactions, post-election, of both loser and winner is the same reaction postbattle. The winners go into a blood thirsty frenzy to hunt down, intimidate and annihilate all surviving opposition members, who in reality are viewed as “enemies” and as such, the “smart” losers quickly jump ship, swear allegiance to the new “masters” and obtain forgiveness and favour. Who knows, perhaps they can even act as saboteurs to their former masters and gain elevated positions. From the behaviour and language of our politicians, it is clear that Machiavelli’s “The Prince” is the script they choose to run and that style CANNOT be progressive for the nation claiming to run a democracy. I once mused over terms and thought of our style of government more of: A banana republic where in the name of democracy, we swapped a kleptocracy for a kakistocracy practiced as an autocracy which is now being converted to an oligarchy via an electocracy. This explains why there is practically no tolerance for any position by opposition; this is why there’s neither engagement nor dialogue with the electorate nor worse, yet, with op-

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In our democracy, our fathers have buried the relevance of the youth and reduced our contribution to mere pawn and cavalry status

position. We really don’t see ourselves in politics nor democracy but in warfare. Thinking of our practicalities, for elections, why do we need arms, ammunition and even the army involved? Why do we have the armed forces habitually announce their readiness to conduct elections? Why do whips, guns, armoured cars feature prominently during, supposedly, free and fair elections? How can anyone claim to be exercising free will looking down the barrel of a gun? “In times of peace, sons bury their fathers and in times of war, fathers bury their sons.” In our democracy, our fathers have buried the relevance of the youth and reduced our contribution to mere pawn and cavalry status. Youth have become the frontline defence for violent interactions during elections. But this is an issue worth its own story! The power must return to the people who understand its use, are willing and demonstrably able to use it for communal benefit even at their personal loss and understand the concept of delayed gratification. For progress, we MUST change the thinking. We must define what we want. We must educate the coming generations into tolerance and dialogue. Otherwise, once the fathers bury all the sons, they too will die out and so will the nation. Akaraiwe is an experienced treasury and financial advisory executive with a demonstrated history of working in the banking industry.

Buhari vs Atiku: The questions you should be asking yourself

Olusegun Akande

won’t bore you with a long prologue. This article is for those feeling disillusioned with Nigeria’s present state – an ever-failing economy, increasingly rancorous ethnic divisions, the four years of acute economic stagnation that has besmirched the life of the average Nigerian, and the lack of a half decent presidential candidate. If you’re a staunch Buhari supporter, then this is not for you. If you’re pro-Atiku, rather than beat your chest with glee, kindly pay attention to the numerous concerns and grievances. On Saturday, 16th February, you will once more vote for your choice of president. The questions you should be asking yourself, as you make your decision are simple; Who is the person most capable of kickstarting the nation’s flat-lined economy. Who is the individual most likely to listen to the electorate? Who is the candidate most likely to form a government designed to unite the nation? In short, who is the person most able to improve the lives of the average Nigerian? I asked a cross section of people to tell me three things that Buhari’s government has done that have improved the lives of Nigerians. Here are their responses. ‘I think his main achievement is grow our foreign reserves from $20bn to over $40bn. And generally, plug leakages. Not much else.’ Leke

‘I really can’t say.’ Nath ‘I would say absolutely nothing. No power, higher diesel prices, ailing infrastructure. Most things that can be claimed as positive appear only surface.’ Michael ‘He hasn’t actually done anything that’s translated to making the life of the average Nigerian better.’ Tosin ‘They planned the Lagos-Abeokuta-Ibadan railway and finished the Abeokuta leg within 3 years. It is a major segment of the Lagos-Kaduna railway, which will improve logistical ops across the country for both people and cargo, thus unlocking more efficiency and GDP growth. They setup financial instruments that provided funding and FX stability for major infrastructure projects such as the massive Dangote petrochemical and fertilizer factory. As the largest refinery in Africa, it will wean Nigerian off imported petroleum products and reduce pressure on our small USD reserves. It’s a major win for their import substitution economic policy On the corruption front, he removed end of level boss, and human contradiction in terms, Crooked Onnoghen the Chief Justice. Major win in the fight against grand corruption. Still on corruption, he implemented the TSA policy that ring fenced all Federal revenue streams from the thousand grubby fingers that were pinching them. On the agricultural front, during his tenure, our import bill for fish, rice, sugar, milk, and wheat has been reduced by up to 99%. Another major economic win for import substitution I can probably write 10 areas in which he completely botched up his job Niyi ‘We now grow our own rice, Trading money(soft loans for petty market traders), and Train service from Lagos to Abeokuta & Ibadan. He’s the best for Nigeria right now’

Banky ‘To be honest, I can’t think of anything that has impacted positively on the man on the street. There are some things that have improved certain economic indices but have they trickled down to me? I don’t think so. The rail projects Abuja to Kaduna has been completed and is in use. The Treasury Single Account has somehow channelled public funds that were hitherto freely available for chopping. Beyond this, right now I can’t think of anything. No improvements in healthcare, education, infrastructure (very slow). Awele ‘That one na JAMB question o’ Olumide ‘Tax . Only one mate. Don’t let all the APC sympathisers fool you. And if they say PDP is corrupt yes they were and probably are but half their members are now in APC. The looting in CBN via Fx rounding tripping is on par with the subsidy looting by Jonathan. So, corruption is a given either option unfortunately; but which Govt will make the economy work better is the question we must ask. Buhari or Atiku.’ Gboyega ‘None’ Chris ‘Presidential Fertiliser Initiative, Agric Intervention Fund, Increased allocation to infrastructure is great. Those are three good things he has done. There are obviously more negatives than positives. Though for me personally the biggest positive is the tax reforms. The non-oil revenues have now exceeded the oil revenues in the budget. The importance of that is that reliance on oil as the main source of funding the budget is dwindling... the approach has been aggressive and near barbaric, but it’s a huge positive impact. Structurally things are changing. However, my biggest grouse with the Buhari Govt is that it is too socialist in nature. He is not capitalist oriented. Govt should not bother trying to do what it can longer provide and fully embrace

capitalism by creating an enabling environment for private sector lead growth.’ Mohammed ‘1) blame 2) blame 3) blame. This govt is just all about lies, propaganda, and deceit’ Chinwe ‘He has failed woefully on delivering on his campaign promises. .His two main targets were security and the anti-corruption fight. He claimed a year or so after assuming the Presidency that Book Haram had been “technically defeated”. Rubbish. Boko Haram is still going strong. Ritual killings etc have increased dramatically due to the crashed economy. The Hausa Fulani herdsmen not only destroyed hundreds of farms across the country thereby impoverishing innocent people trying to do legitimate business; not only did they kill thousands of people in the process with the most sophisticated of weapons but for ages our dear President who of course is also Hausa Fulani didn’t do a thing about it. Not only that, he didn’t say one word to even given people an assurance that the government would do anything about it or that he felt their pain. He has vindicated those who had accused him of being clannish by making heavily lopsided appointments. Heads of most anti-graft, paramilitary and the country’s judiciary are Northern Muslims: EFCC - Magu NFIU- Hamman-Tukur Police- Mohammed DSS- Bichi NIA- Ahmed AGF - Malami Appeal Court - Bulkachuwa High Court - Abdul Kafarati Supreme Court - Tanko Customs Immigration. Note: The rest of this article continues in the online edition of Business Day @https://businessday.ng

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frica is comprised of a range of distinct investment destinations, with each region and country having its own appeals and challenges, created through differing cultures, business practices, as well as political and economic circumstances. However, African private equity activity has remained steady over the past seven years, with investors having confidence in the longterm attractiveness of Africa, especially when compared with developed markets. According to the African Private Equity and Venture Capital Association, 76% of surveyed investors plan to increase or maintain their allocation to African private equity over the next three years. The size of private equity investments in Southern Africa more than doubled in and from 2017, and private equity has consistently outperformed listed equity. However, while South Africa was the traditional powerhouse of the African private equity industry, Nigeria and Kenya have recently overtaken it in attracting the most attention from private equity investments in Africa. The political and economic uncertainties of 2017 caused some concern in the South African market, however, stability through 2018 saw investor confidence pick up. Challenges and Impacting Factors Political risk management is always a factor in driving portfolio trends, with elections, currency and commodity price volatility being some of the most significantly impacting macro factors. In 2019, South Africa specifically may see some temporary stalling in investment due to the upcoming presidential elections. Additionally, environmental, social and governance (ESG) factors are increasingly becoming important considerations for and drivers in investment decisions. Some of the usual culprits which

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Investing in Africa: Review and trends for 2019 ANASTASIA POSOKHOV & JEFF BUCKLAND

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cause investors to shy away from investing include corruption and weak governance, as well as limited exit opportunities, which continue to hamper investor perceptions of and confidence in the continent. Sourcing quality, competitive deals is frequently a challenge for private equity firms in Africa, as intermediaries on which they depend often have confined geographic and social networks, and tend to generalise, lacking the necessary sector knowledge to more effectively and suitably match investors with deals. Another challenge to private equity investment into Africa is that there is still a large gap in reliable data pertaining to private companies. This makes it difficult to achieve reliable valuations and peer comparisons, resulting in African companies being compared to international peers, which in turn leads to mispricing. In order to maximise their return on investment, fund managers are required to adopt a more hands on approach to managing investments. This requires time and human capital with the necessary skillset to engage more actively with and nurture portfolio companies. This often proves challenging where portfolio companies remain majority family owned and controlled, with significant owner resistance to perceived investor interference with the operation of the business. Local regulatory frameworks often create barriers to investment and place burdensome restrictions on private equity operations, including limited access to local capital such as domestic pension funds, exchange controls, local content requirements and ownership restrictions. More developed frameworks in South Africa and Nigeria are driving change, but progress is slow. On a positive note, intra-African trade is set to increase interest in Africa. Looking to generate 22 African nations to support the initiative, the African Continental Free Trade Agreement aims to stimulate and facilitate intra-African trade, which should fuel investor confidence, particularly in the ever popular consumer goods sector. Additionally,

Africa’s middle class is growing, with rising disposable incomes, stimulating investment into telecoms, consumer and financial services. Sectors Consumer driven industries (such as financial services and consumer goods), healthcare and education remain steady and stable investment bets. The agricultural sector is set to hold strong as agro-processing increases and global food demand spikes. Lack of efficient infrastructure across Africa impacts significantly on per capita growth rate and places significant strain on human development. The African Development Bank’s most recent estimation of infrastructure needs is between USD130 and USD170 billion annually, a need which is not matched by the continent’s capital. This creates a substantive opportunity for private equity and infrastructure funds’ support, which is anticipated to continue to grow over the next few years. Technology has developed as the highest interest emerging sector for private equity investment. Historically, this sector in Africa struggled to access funding and capital due to the lack of understanding and backing of the industry and its potential impact on the development of other industries and the economy as a whole. Another regular challenge for the industry is the poor connectivity that, in spite of improvements, still plagues the continent. However, tech-enabling solutions in the consumer discretionary spending space, as well as technology driven financial solutions are hot topics and on trend for 2019, particularly across Africa which is ripe for the industry to explode. Technological advancements and solutions have a substantial impact on the development and growth of other industries, and as this model is repeatedly proven, then investment in tech companies becomes an easier decision to justify. Kenya, Malawi and Rwanda are already deploying technology in the agricultural sector, including aerial imagery from drones or satellites, weather forecasts and soil sensors, all of which are making

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Local regulatory frameworks often create barriers to investment and place burdensome restrictions on private equity operations

it easier for farmers to manage their crops in real time, while financial solutions are connecting small holder farmers with credit, financial institutions and greater market access. Funding in tech startups surged by 51% (amounting to USD195 million) in 2017, and continues to grow exponentially, with development capital set to carry the sector to new heights. Additional Trends In 2017, the most popular disposals, in value terms, were sales to other private equity firms or financial institutions, and the most popular method of disposal were sales to management. Sponsor exits by way of initial public offering have remained stable over the past few years, amounting to a total of 16% of all IPOs in Africa between 2010 and 2017, with an increase from 3 in 2016 to 4 in 2017. This trend is anticipated to continue into 2019, particularly with the growth and maturing of Africa’s stock markets, including the Nigerian Stock Exchange and the Kenyan Capital Markets Authority. As China’s domestic growth began to surge at the end of the last century, demand for natural resources and job creation forced China to look for markets abroad, with Africa being an ideal partner, with its abundance of commodities and need for infrastructure development. Chinese investment into infrastructure projects is continuing to increase, with investment speculated to reach USD100 billion by 2020, equal to 4% of African GDP. This would go a long way to boosting economic growth, and addressing needs and deficits specifically in the energy and transport sectors. Interestingly, in 2019 it is anticipated that more private equity firms will participate in later stage million-dollar venture capital deals, as more businesses look to scale-up after proving the viability of their business models. Clearly, we will need to look out for market intelligence and deal reporting to see if this anticipated trend comes to fruition. Note: The rest of this article continues in the online edition of Business Day @https://businessday.ng

The cash bazaar is over as slush fund dries Larry Ifebelunoke

his is election week in Nigeria. Campaign rallies are on-going across the federation for the presidential, gubernatorial and legislative elections. Yet, the nation is not awash with cash. This is odd, most unusual. This is not the Nigeria we are used to. In the weeks to the elections in 2015, the streets of Nigeria were awash with cash. There was ‘cash mobilisation’ for virtually everybody for all manners of services, right or wrong, towards electoral success. A lot of cash was shared out on campaign grounds too. It had been like that since the decade of independence. You could say it was a Nigerian thing. Not this time. Something definitely has changed. This is not the usual Nigeria. It is a very significant pointer to the change which President Muhammadu Buhari and his All Progressives Congress (APC) promised in their 2015 campaign for which the electorates handed them victory. The electoral cash bazaar is over; wasteful and prodigal spending is out the door; sanity has taken over; Buhari is in charge, and things have changed! It is not an accidental outcome. It was planned, and it kicked in with precision. The profligacy of electoral campaign seasons was never financed by legitimate cash. It had always

been financed by misappropriations from government coffers at various levels. That was why the APC government made sweeping arrests of the human ‘cash machines’ immediately it came to power. So many of these human ‘cash machines’ confessed to their crimes and made refunds to government coffers. Others are facing trials for brigandage running into billions of dollars. But for the wheel of justice rolling ever so slowly, they would have started serving their terms. However, they would get there, and President Buhari, by Executive Order which makes for the confiscation of proceeds of corruption, has ensured that they would not enjoy the proceeds of their crimes. Beyond ensuring the recovery of stolen funds, the APC government has taken steps to tackle the problem of election cash bazaars right from the root. The basic question was: where and how does this corrupt funding emanate from? The APC government carried out an audit of 15 Federal Government revenue-generating agencies and found out that between 2010 and 2015, their remittances fell short by N8.1 trillion! That is over N1.6 trillion per annum over the period. It is also over 25 percent of the national budget for the period! This massive under-remittance carried out by civil servants is often done with the knowledge and connivance of people in government to provide slush funds for various purposes. It is a major source of the electoral cash bazaar.

President Buhari has shut this huge window for good. That is why the cash bazaar hasn’t run this year – and will never run for as long as the APC is in power! It used to be that governments did whatever they could in terms of development within the first two years after the elections. From the third year, everything about development ceases and the governments stash up cash to prosecute the next elections with the usual cash bazaar. It is now over for good. Now, the effects of this are visible in every neighbourhood, even for the simple to see. This campaign season shorn of cheap cash will see much less young men dying from drunken revelry and substance-induced brawls on behalf of political godfathers whose children are safely abroad. Way beyond that, the Nigerian economy is much healthier without this wasteful spending and its resultant outcomes. Basic economics tells us that when there is too much money chasing too few goods, there is inflation. This is what happens after each electoral cash bazaar. The whole country suffers it through heightened inflation. It won’t happen this time, as a result of deliberate actions taken by the Buhari government. There is also a foreign dimension to the election-related economic destabilisation which has also been sown up by the Buhari government. The Nigerian economy had been running on four-year cycles coinciding with the elections. It was a system well-known to institutional investors, especially foreign investors.

And it has ensured constant crash and restart for the Nigerian economy. Canada-based investment analyst, Pat Okaro, explains how this stultifying system has worked over the years: “In Africa or the developing world, foreign investors sell off before any presidential election to avoid heightened risks of anarchy and breakout of violence post-election. And so, if you’re into the Nigerian Stock Exchange (NSE), you’ll notice that the market crashed every four years,” Okaro said. “Now, enter Acting President Osinbajo who set up a special forex window for foreign investors. This window guarantees them to take out their dollars at the same rate they brought them in. So that removes the panic because in every election cycle when they sell off, not only does the stock market crash, but the naira also crashes as a result of oversupply. So with this guarantee, the foreigners are a bit relaxed. “At this time in the last election cycle, GTBank was N17. Today, it is N33.50. At this time in the last election cycle, Zenith Bank was N17. Today, it is N22.50. Some of us have keyed into this predictable market response pre-election and have played it successfully in the last election cycles. It’s working this time, but obviously the returns won’t be as usual,” he said. Note: The rest of this article continues in the online edition of Business Day @https://businessday.ng Ifebelunoke writes from Lagos.

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Nigeria’s dismal health statistics

igeria likes to boast of its status as Africa’s biggest economy, but its health statistics indicate the country is not only far behind its peers and other smaller countries in Africa, but it shows, in a classic way, the callousness of its politicians and government officials who go abroad to treat even common ailments while abandoning the people they govern to die in decrepit hospitals that now serve more as morgues than places for accessing healthcare. A 2014 World Health Organisation (WHO) report on healthcare delivery, which surveyed 200 countries, placed Nigeria at an abysmal 197th position, just ahead of Congo Democratic Republic, Central African Republic (CAR) and Myanmar. Its verdict was damning: “Nigeria lacks a serious approach to healthcare.” In 2016, President Muhammadu Buhari promised to end the practice of spending the government’s hard-earned cash on treating officials overseas, especially when Nigeria had the expertise. But three months later, the president himself flew to the United Kingdom to treat a common ear infection, an action the then president of the NMA described as a “national shame” considering that Nigeria had more than 250 ear, nose and throat (ENT) specialists, as well as a

national ear centre. Well, the president has continued to frequent UK hospitals and last year, spent more time in the UK than in Nigeria, treating an undisclosed ailment. Even the President’s wife and daughter have complained about the quality of healthcare available to them at the presidential villa. While the president’s daughter raised alarm that the Aso Rock Clinic, which is supposed to cater for the immediate health needs of the first family, ministers and presidential aides, Mrs Buhari said she was advised by her aides not to bother using the facility but go abroad for treatment if she feels unwell. If the health facility at the seat of power in the country is that decrepit, what would one expect in other parts of the country? In February, Nigeria was ranked 187 out of 191 countries in the world in assessing the level of compliance with the Universal Health Coverage (UHC), as very few of the populace is health insured, whereas even government provision for health is almost negligible. Available figures show that Nigeria’s budgetary allocation to the health sector in 2018 was a mere N340.45 billion (less than $1 billion), representing only 3.9 percent of the budget. On a per capita basis, N1,800 ($5) is what the 2018 budget provides for the health of each of Nigeria’s 190 million citizens. This is completely dwarfed by South Africa which proposed a health budget of R205.446

billion ($17.1 billion) in 2018, represents $299 per head when compared to its population of 57million. Yet, Nigeria supposedly holds the title of the continent’s largest economy. According to the World Health Organisation, Maternal mortality rate in Nigeria is 814, per 100,000 live births only outperforming Chad with 856, Central African Republic; 882, and Sierra Leone; 1360. War torn countries like Somalia and Democratic Republic of Congo even outperformed Nigeria. Also, while Botswana and Mauritius have the proportion of births attended by skilled health personnel as 100 percent, Nigeria is again down the pyramid with 35 percent, competing with countries like Eritrea, Ethiopia, South Sudan, and Chad. The statistics get worse, for every 1000 births in Nigeria, 108 infants (and children) die before the age of five, and again, the country sits comfortably close to the bottom of the ladder in Africa. Data from WHO world health statistics 2017 further shows that over 72 million Nigerians are at risk of malaria, with 380.8 at risk out of every 1000 Nigerians, whereas, malaria has ceased to be a health concern for many other countries. Yet, Africa’s largest economy shares the three bottom slots on the continent with Burkina Faso and Mali. The figures for cancer are even more mind-boggling. Nigeria has a cancer death ration of 4 in 5, one of the worst in the

world. According to the WHO, over 100, 000 people are diagnosed with cancer annually in Nigeria, and about 80, 000 die from the disease, amounting to 240 daily. Furthermore, cervical cancer, which is virtually 100 percent preventable, kills one Nigerian woman every hour while breast cancer kills 40 Nigerian women daily. What is more, due to the terrible working conditions, Nigerian doctors have been deserting the country in droves in search for better working conditions in other countries. According to the Nigerian Medical Association, more than 40, 000 out of the 75,000 registered Nigerian doctors were practicing abroad while over 70 percent of those in the country were thinking of picking jobs outside. BusinessDay research shows that an average of 12 Nigerian trained doctors register for practice in the UK every week. While experts are calling for better working conditions and greater investments in medical training, the Minister of Health, Isaac Adewole, is on record saying Nigeria doesn’t have shortage of doctors and that it can’t even train all its doctors, advising some to take to tailoring, business and politics. With such standoffish and inconsiderate posture, we do not need a soothsayer to tell us that Nigeria’s health statistics will continue to deteriorate while the government busies itself with the manufacture of alternative facts to look good before its teeming supporters.

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COMPANIES & MARKETS

DAY

BUSINESS

Renmoney introduces micro loans for MSMEs

Pg. 14

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

MARKETS

Pre-election appetite drives Nigerian stocks to record longest gaining streak since 2017

OLUWASEGUN OLAKOYENIKAN

n less than a week to Nigeria’s general elections, equities investors a r e a l r e a d y t a king positions in the nation’s stocks with high optimism of an imminent market rally after t h e p o l l s, c a u s i n g t h e domestic bourse to record its longest gaining streak since 2017. “ The gains recorded thus far in the year has defiled analysts’ expectations,” said Gbolahan Ologunro, research analyst at CSL Stockbrokers. The Nigerian Stock Exchange (NSE) extended its daily gains Tuesd ay a f t e r t h e ma rke t ’s key performance index, A l l -Sha re In d e x ( A S I ) , rose by 2.14 percent to close at 32,462.31 points, its highest level in over three months. This caus e d the Lagos bourse to record i t s e i g ht h c o n s e c u t i v e day of gains and further i m p rov e d t h e y e a r- t o date of the NSE to 3.28 percent. “The uptrend is caused by foreign investors picking stocks at very low prices,” Paul Aluko, equity research analyst at Lagos-based MBC Securities Limited, told BusinessDay. “The foreign investors are

taking positions ahead o f t h e e x p e c t e d p o s telection rally.” Nigerians will on Feb 16 go the polls to choose their next leader among r uling President Muhammadu Buhari, business mogul and former Vice President Atiku Abubakar and other candidates. The election is seen to be a close contest between President Buhari, who plans to create jobs and continue on his

infrastructural projects, and Atiku Abubakar who p ro m i s e d t o p r i v a t i s e t h e Ni g e r i a n Nat i o na l Petroleum Corporation (NNPC) and float the Naira. According to Aluko, domestic investors are still watching and waiting for the outcome of the election, but foreign investors have already factored in the worst and best case scenarios between the two major candidates in their in-

vestment decisions. Analysts at Citigroup, one of the world’s largest banks, projected that the market is likely to rally if President Buhari l o s e s t h i s S a t u r d a y ’s election. Ologunro said the re cent per for mance is a re f l e c t i o n o f a n a n ticipated rally and the United States Fed’s decision to paus e its interest rate hike. These, post-election peace and the forthcoming release

of audited 2018 reports of listed firms, other believe would drive the market regardless of who wins at the polls. Dangote Flour Mills, Jaiz Bank, L ivesto ck Feeds and NPF Microfinance Bank all gained 1 0 p e rc e nt t o c l o s e at N8.25, 55 kobo, 55 kobo and N1.65, respectively, while Champion Breweries rose 9.88 percent to N1.78 per share. C o nv e r s e l y , R e g e n c y A l l i a n c e In s u ra n c e

Company lost 8 percent to 23 kobo, UAC Property Development Comp a n y f e l l b y 7 . 8 6 p e rcent to close at N1.76, while Lasaco Assurance plunged by 6.06 percent to 31 kobo. Diamond Bank emerged the toast of investors as over 125.82 million units were traded. Zenith Bank trailed with 63.18 million units, while Guaranty Trust Ba n k t ra n s a c t e d 5 7 . 1 3 million units of shares.

MOTORING

Dunlop set for a rebound amid new automotive policy OLUFIKAYO OWOEYE

N Tyre and Rubber Plc (formerly known as Dunlop Nigeria Plc) has issued an update on its restructuring plans. In a notice sent to the exchange, the firm revealed that it had recorded significant results with the Federal Government,

pertaining to the conclusion of a new automotive policy which had taken into account some policies that had an adverse effect on the company. The policy, the company noted, is in the process of being forwarded to the National Assembly for legislation. The company further revealed that it has developed a

10-year strategic business, to enable it to return to local manufacturing. Noting that the company was marketing this plan to potential investors, after which it would seek technical partners. “The firm is also in serious discussions with a state government which is setting up an industrial park, with provision for an

automobile cluster and tyre manufacturing plant.” The company has also retained its majority holding in Pamol Nigeria Limited, its subsidiary which manages rubber plantation. It would be recalled that in 2005, DN Tyre spent $50 million on a truck tyre project. The Federal Government in 2006, reduced

the tariff on imported tyres from 40% to 10%. This coupled with poor power supply led to the company shutting down operations in 2008. In a bid to pay off N8 billion in loans, the firm in 2012, decided to sell several assets. The transaction was eventually completed in 2014. The company’s stock was last traded

Edited by LOLADE AKINMURELE (loladeakinmurele@gmail.com) Graphics: CHINEDUM ONYEMA

in October 2018 and has been labeled Delisting In Progress (DIP) by the Nigerian Stock Exchange (NSE). DN Tyre and rubber Plc (formerly known as Dunlop Nigeria Plc) was established on the 21st of October 1961 and commenced business in February 1963. The primary business of the firm is the sale of vehicle tyres and tubes.

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Business Event

FINTECH

Renmoney introduces micro loans for MSMEs Endurance Okafor

enmoney, a Fintech lending company in Nigeria, on Tuesday announced the launch of a new solution for self-employed individuals, business men and business women. The new product allows the market segment to access credit of up to N4million either via Renmoney’s, contact centre, agent network or branches. Since inception, Renmoney focused on the employed market and has learnt a lot from this segment and used this to refine its score cards and algorithms to ensure the company continues

to make responsible lending decisions. Oluwatobi Boshoro, Renmoney’s CEO said “we’ve always been aware of the need to solve credit challenges for another equally important segment- the self-employed, the businessman, the business woman”. She said during the product launch that “we have tested and iterated this product extensively for almost six months, reviewed over 30,000 applications and issued over 6,000 loans in the process.” She added that “we’re convinced this product will go a long way in making financial inclusion meaningful for these micro business owners and im-

pactfully contribute to Nigeria’s goal of a post-oil, diversified economy.” Renmoney continues to be a key player in the Fintech space, focused on solving complex credit challenges and driving impactful financial inclusion for individuals in Nigeria. Meanwhile, in 2018 the Fintech Company recorded a 112 percent, year-on-year increase in the value of loan served to its customers, with a 38.5 percent representation of female customers. “For these micro business owners, it was important that we understood their needs and leveraged,” the company said in a statement.

L-R: Tina Bawa-Shitgutrum, guest; Ezinne Kufre Ekanem, CEO, Rosemary’s, The Soft Furnishing Company; Kufre Ekanem, MD, Philosoville Limited, initiator of Hymnodia; and Lampe Omoyele, MD, Nitro 121, at the arrival ceremony of 14 hymntestants (contestants) to the Hymnstitute show’s house for the Hymnodia reality TV show on hymns, in Lagos. Pic by Pius Okeosisi

TECHNOLOGY

MTN Foundation launches “The Business of the Arts Series”for MUSON scholars

TN through its Foundation has launched a series of workshops to give students of the MUSON Music Scholars Programme a better understanding of the business side of their craft. The first in the quarterly series was themed “Copyright and Intellectual Property Protection,” held at the Agip Recital Hall of the MUSON Centre, Lagos. Using a variety of local and foreign case studies,legal experts, educated scholars on the fundamentals of intellectual property rights, discussing its benefits and possible consequences of its negligence.The scholars also received information which will enhance their entrepreneurial skills. Speaking on the new initiative, Nonny Ugboma, the

executive secretary of MTN Foundation, stated, “We have a long-term commitment to the development of young talent, as demonstrated through our interventions over the years. “Last year,we sponsored a masterclass with the renowned countertenor, Daniel Taylor and soprano impresario, Ellen McAteer for all students of the MUSON School of Music;our desire to see well-rounded music professionals who are skillful, and understand the business of music led us to introduce this workshop series for participants in the music scholarship programme. The workshops will help prepare the scholars for the real world,” said Ugnoma. Banke Ademola, the director, School of Music, MUSON, appreciated the foun-

dation, reminded attendees at the inaugural workshop that, “What MTN Foundation is offering is critical learning often overlooked or unavailable to aspiring artistes. It’s difficult to find words to express my delight that beyond supporting the scholarship programme, MTN Foundation, is providing this opportunity,” Ademola said. The collaboration between MTN Foundation and MUSON dates back to 2006, with the initiation of a scholarship programme that has produced hundreds of graduates from the MUSON School of Music, who are currently achieving laudable feats in various spheres of arts and culture globally. Supporting arts and culture remains a crucial focus of MTN’s social investment mandate in Nigeria.

L-R: Mallam Rabiu Umar, MD, Ashaka Cement Limited; Mohammed Maina Adam receiving keys to his 20 ton truck from the Country CEO of Lafarge Africa Plc; Michel Puchercos, flanked by Aitami Hassan, chairman, Cement Dealers Association, Gombe, and Mohammed Abdullahi, during the event to reward customers and key distributors for excellent performance in the year 2018.

L-R: Wale Olaoye, group CEO, Halogen Security; Francis Emepueaku, supervisor and co-winner, Silverbird Heroes Award; Biodun Shobanjo, chairman, Troyka Holdings, owner of Halogen; Achi Daniel, operative & cowinner, and Femi Akintunde, GMD, Alpha Mead Facility Limited after the two Halogen guards were jointly honored with special HEROES AWARD at the Silverbird Man of the Year Awards event, recently, in Lagos... Francis and Daniel had found and returned a lady›s bag filled with dollars and other valuables at the Murtala Mohammed International Airport, Lagos.

L-R: Yemisi Adegoke, multimedia journalist and documentary filmmaker; Oluwatosin Ajibade, founder, Olorisupergal (OSG); Gbenga Sogbaike, CEO, Plaqad Limited; Funmi Oyatogun, founder, TVP Adventures, L-R: Obi Asika, founder, Social Media Week; Segun Agbaje, MD/CEO, Guaranty Trust Bank Plc and Oyinade and Larry Madowo, journalist and BBC business editor, panelists at the BBC Social Media Week Lagos 2019. Adegite, head, corporate communications and external affairs, at the Social Media Week, in Lagos, recently. Pic by Pius Okeosisi

BUSINESS DAY

Thursday 14 February 2019

CITYFile

Police arraign fake nurse in Ibadan

he police have arraigned a 35-year fake nurse, Morili Balogun in a Grade “A” Customary Court, Iyaganku GRA, Ibadan for allegedly using a forged nursing certificate to get a job as a nurse. The police charged Balogun with twocount of conspiracy and forgery. According to the police prosecutor, Bola Olookooba, Balogun and others (at large) allegedly conspired and committed the offence of forgery. Olookooba alleged that the defendant forged a nursing certificate and license in her name which she used in gaining employment at the Ona-Ara Hospital, Ibadan. He said the offence was committed sometimes in 2011, and contravened the provisions of Section 465 and punishable under Section 467 of the Criminal Code of Oyo State 2000. The defendant pleaded not guilty to the charges against her. The president of the court, Basirat Gbadamosi, admitted the defendant to bail in the sum of N100,000 with two sureties in like sum. Gbadamosi ordered that the one of the sureties must be a blood relative, while the other must be a clergy or community leader. She adjourned the case until March 26, for hearing.

Commuters groan as IPMAN shuts operation in Anambra

otorists and commuters in Onitsha and its environs were on Tuesday thrown into hardship over the shutdown of operations by petroleum marketers in Anambra, saying it had caused them undue sufferings. Many filling stations were shut as early as 7.00 a.m in compliance with a directive by the Independent Petroleum Marketers Association of Nigeria (IPMAN) in the south-east. Some of the filling stations visited include Total and Oando along New Market road, J.I. Ejison and NNPC Mega station along Awka road and Seaman by Borromew round about, Onitsha. The development affected transportation fare as passengers who usually pay N100 from Main Market, Onitsha to Nkpor paid N200 while the fare from Onitsha to Nnewi increased from N200 to N400. Chukwuebuka Odo, a shuttle bus driver said the fuel he was still using was the one he purchased on Monday. “We didn’t get information about their intention to close operations. “Once the fuel I have in my vehicles gets exhausted, I will have to resort to black market and increase my price,” Odo said. A civil servant, Joy Udeakpe said the development came to her as a shock as she was not prepared for the hike in the transportation price. “I have been standing here for the past one hour now and they keep telling me N500 to Awka from Onitsha which I used to pay N300,” she said. Also speaking, a trader, Uche Okafor said “those closing filling stations at every slightest provocation are wicked.” “Their leaders should be patriotic and consider the plights of many Nigerians before closing filling stations or embarking on strike,” he said, urging the state government to intervene. Cletus Obi-Okafor, chairman of Petrol Dealers Association of Nigeria (PEDAN) in the state confirmed the shutdown, saying the action was in compliance with the order of national leadership of IPMAN. Obi-Okafor said the total shutdown would persist until there was counter directive to members. “We were directed to close our outlets over a crisis at our Enugu Depot office, the compliance will be total until we get further directive,” he said. nan

Cross-section of women during a march against violence, themed “Justice Must Prevail”, led by Betsy Obaseki, Edo State First Lady, in Benin city on Tuesday

Lagos: Customs distributes seized rice, vegetable oil to orphanage homes

AMAKAANAGOR-EWUZIE he Nigeria Customs Service (NCS) has flagged off the distribution of seized smuggled rice and vegetable oil to orphanage homes in Lagos. Joseph Attah, spokesperson of the Customs, who disclosed this to newsmen in Lagos, Tuesday, said this became necessary since peace has returned to the north-east region, cutting down the quantum of seized products that should be made available to Internally Displaced Persons (IDP). “We announced that the Comptroller General of Customs, Hameed Ali had secured the presidential nod to extend the distribution of relief materials such as rice, vegetable oil, soap and spaghetti, used clothing and all that, to orphanage homes across the country.

“Before now, the national logistics committee was distributing these items to victims of insurgency in the northeast. Then, it was restricted to the northeast but with the relative peace in the region and increasing numbers of IDPs returning to their ancestral homes there is need to extend the distribution of this to victims of herdsmen crisis, communal and more importantly orphans across the country,” he said. Attah further disclosed that a subcommittee headed by Yakubu Salihu, a Customs Comptroller, had arrived in Lagos to begin distribution of 68,226 bags of rice to 98orphanage homes. He said that 34,332 kegs of 25 litres of vegetable oil; 68,226 bags of rice; second-hand clothing; used foot wears and spaghetti would be distributed among 98 orphanage homes in Lagos. “We have foot wears, used clothing and other perishable seized items

which we will try as much as possible to ensure that they get to the intended recipients. We have identified 98 orphanage homes and we are still identifying more. Five of them have already arrived and these are the early callers.” Attah said that the relief items would be loaded and escorted to these homes and the recipient will sign a landing certificate indicating that the number taken from the warehouse actually got to the intended orphanage. “The number of bags of rice to be given will depend on the number of children in the home because the benchmark we are using is that we give five bags a child and if we have 20 children which are authenticated. It will be multiplied by five. So, some people will receive 100, 500 and we have even identified those who will receive 1000 bags,” he added.

Trial of policeman accused of killing woman stalled in Abuja

he trial of 36-year police officer, Wagozie Godwin, who allegedly shot dead one Anita Akapson, was on Tuesday stalled at the FCT High Court, Zuba, due to the absence of a prosecuting counsel. Okon Ebong ordered that a notice should be issued to the Attorney General and Commissioner of Police, and adjourned the matter until March 18 for hearing. The defendant is charged with cul-

pable homicide. He is being accused of causing the death of 31-year Akapson, by shooting her at Katampe Extension, Abuja on October 13, 2018. The defence counsel, Chukwuma Nwachukwu, told the court that the police were aware of Tuesday’s date to appear in court, and there was no letter as to why they were not in court. “Since the last prosecutor, Donaltus Abbah withdrew his appearance in the matter, we have not heard if the case

file has been transferred,” he said. Abbah withdrew his appearance based on issues of bias and interest expressed by the deceased family’s counsel, Kayode Ajulo. In an interview, Abbah said Ajulo had informed the press in November, 2018, that the case ought not be prosecuted by the police because the defendant is a policeman. He also said the case had been transferred to the department of public prosecution, ministry of justice.

BUSINESS DAY

Thursday 14 February 2019

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In association with

Helping you to build wealth & make wise decisions NSE All Share Index

Market capitalisation

NSE Premium Index

The NSE-Main Board

NSE ASeM Index

2,165.23

399.27

793.81

Week open 01 – 02–19)

31,070.0 30,636.36

N11.721 trillion

N11.424 trillion

2,142.64

1,401.84

790.06

Week close (08 – 02–19)

31,529.92

N11.758 trillion

2,161.26

1,465.57

791.76

Year Open

Percentage change (WoW)

2.92

Percentage change (YTD)

0.32

0.87 -1.54

NSE Lotus II

NSE Ind. Goods Index

NSE Pension Index

300.24

2,218.37

1,222.99

1,201.80

696.73

279.09

2,229.21

1,270.52

1,178.76

725.31

286.18

2,253.54

1,262.09

1,219.43

NSE Banking Index

NSE Insurance Index NSE Consumer Goods Index NSE Oil/Gas Index

1,399.64

399.27

124.82

1,366.69 1,421.80

396.59

121.98

428.72

126.86

NSE 30 Index

4.55

0.22

4.03

1.79

-0.26

0.33

8.10 7.46

4.00 0.30

731.57

4.10 -3.14

2.54 -5.31

1.09 0.88

0.66

3.45

1.96

0.99

Analysts say stock market looks attractively valued …offers interesting entry-point despite brewing political jitters heanyi Nwachukwu

sizeable extract from many analysts’ notes on the near term future of Nigerian equities market signal the market is attractively valued and offers interesting re-entry point for investors. In the absence of a near-term positive catalyst, political anxieties ahead of the upcoming 2019 elections had negatively impacted the stock market as foreign investors pulled over N600billion out of the market. Before now, investors were guided to trade cautiously following some analysts negative outlook for Nigerian equities in the near-to-medium term. Nigeria’s recently released headline growth figures for year 2018 showed yearon-year (y/y) GDP printing at 1.9percent, beating some analysts’ estimates of 1.8percent y/y and that of International Monetary Fund (IMF) at 1.9percent y/y “My base case is that Nigeria’s GDP will do better in 2019-2023 than in 2015-19 whoever is president, because Nigeria will no longer be dealing with the immediate shock of the fall in the oil price,” said Charles Robertson, chief economist at Moscowbased Rencap. The equities market has further advanced into the positive territory. It started recouping loss from last week Friday after a record loss of N2.3trillion seen last year which placed it at the worst performing in the world. Thestockmarketgainedapproximately N334billion in the trading week ended Friday February 8, 2019 as more investors leveraged attractive entry opportunities created by many value stocks that are currently priced low. Taking a cue from last week’s performance, Lagos-based research analysts at Vetiva Capital expect the positive trend to persist this week, “buoyed by sustained interest on select stocks even as investors position to take advantage of a possible post-election rally”. The factors that resulted in a persistent decline in the Nigerian equity market in

2018 were still putting downward pressure on the equity market. These factors include pullback from foreign investors due to political considerations, rising global yields and increased yields on fixed income securities in Nigeria leading to a reallocation of portfolios away from the equity market. As noted earlier in their shortterm economic and financial market outlook, FSDH Research expects election uncertainties to dominate first-quarter (Q1) 2019 and deter some equity investors. However, they expect savvy investors to take strategic positions in the months leading to the expected recovery in second-quarter (Q2) 2019. “Despite the overall decline in January, we have seen pockets of this positioning over the month and expect to see further examples in February. The performance of the equity market in the last six years shows that the market recorded a mixed performance between January and February. However, the outcome of the general elections in February will determinethedirectionoftheequitymarket in February,” FSDH Research noted. In a most recent case for Nigerian equities, research analysts at United Capital research said that “Entering 2019, the biggest concern for investors was that the market could fall further, given that most of the challenging factors that beclouded market performance in 2018 were expected to persist over 2019.” “However, just as we stated in our outlook report for 2019, there is a better balance of risk for the market; on the domestic macro scene, GDP numbers in 2018 fell short of expectations, meaning that the bar to beat in 2019 has been adjusted lower. Besides, the risk of US rate hikes and dollar strength - which were major pain points in 2018 – looks more subdued this year, considering the Fed’s recent dovish language,” the research analysts said. “Added to this, 2018’s sell-off sent the gap in valuations between stocks in developed and developing countries back to near-record levels. The P/E ratio for Nigerian equities (9.2x) are currently significantly below their 5-year long-term

average (13.0x) and are trading at a very sharp discount to equities in the rest of the world. Thus, the market clearly looks attractively valued, offering an interesting entry-point to a multi-year recovery story”, United Capital research stated further. “In line with the above, the market has recorded a YTD return of 1.1%, driven by renewed investor interest in the wake of upcoming elections and on the backdrop of better dynamics in the global space (US Fed dovishness)”, they noted. “Looking ahead, we continue to guide investors to trade cautiously amidst brewing political jitters ahead 2019 elections, and the absence of a positive market trigger. However, we believe positive macroeconomic fundamentals will drive recovery post-election”, said Cordros Research analysts. “Following the bullish performance last week, we expect market participants to book profits on portfolios during the week based on associated uncertainty leading up to the presidential elections

this Saturday,” said Lagos-based Afrinvest research analysts in their February 11 note to investors. No fewer than fifty-three (53) equities appreciated in price last week, higher than 16 in the preceding week. Twenty-one (21) equities depreciated in price, lower than 50 equities in the preceding week, while 94 equities remained unchanged lower than 102 equities recorded in the preceding week. Also, in the review trading week to February 8, 2019 the Nigerian Stock Exchange (NSE) All Share Index (ASI) appreciated by 2.92percent week-onweek (wow) to close at 31,529.92 points as against 30,636.36 points the preceding week while the value of listed equities –the market capitalisation closed at N11.758 trillion from a low of N11.424 trillion in the preceding trading weekend. The year-to-date (ytd) return stood positive at 0.32percent. All other indices finished higher with the exception of the NSE Industrial Goods Index that

depreciated by 0.66percent. Regency Assurance Plc recorded the highest gain after its share price increased from 21kobo to 25kobo, adding 4kobo or 19.05percent; followed by that of Dangote Flour Mills Plc which increased from N5.80 to N6.85, adding N1.05 or 18.10percent; while Guaranty Trust Bank Plc increased from N33.70 to N38.65, adding N4.95 or 14.69percent. On the losers list, Royal Exchange Plc occupied topmost position after its share price declined from 30kobo to 26kobo, down by 4kobo or 13.33percent; Guinea Insurance Plc followed after its share price declined from 23kobo to 20kobo, losing 3kobo or 13.04percent; while that of Champion Breweries Plc decreased from N1.80 to N1.62, losing 18kobo or 10percent. The stock market recorded turnover of 1.894 billion shares worth N26.884 billion in 19,213 deals in contrast to a total of 1.452 billion shares valued at N14.788 billion that exchanged hands the preceding week in 19,318 deals.

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Year-to-Date return turns green as players take position ahead of elections

•Have you been shabbily treated by your registrar, stockbroke r or other capital market operators? Let us know and investor will help you investigate and report back. E-mail: iheanyi.nwachukwu@businessdayonline.com

he local bourse drew the curtain for last week on a bullish note owing to consistent gains recorded in the market on all trading sessions in the review week. Overall the NSE-ASI logged +2.9percent to close at 31,530 points. Consequently, market capitalisation surged N36billion to settle at N11.8billion while Yearto-Date (ytd) returns improved to +0.3percent. Activity level was upbeat as both value and volume traded rose +107.6percent and +65.7percent to finish at N12.2billion and 723.8million units. Performance across sectors was bullish as five of the six sectors under our coverage closed in green territory. Analysing the sectors in a hierarchical order of percentage gains recorded, the Banking (+8.1percent) sector topped the week’s gainers, buoyed by massive price appreciation in GUARANTY (+14.7percent). Also, the Consumer Goods (+4.1percent), Insurance (+4percent), Oil and Gas (+2.5percent) and Agricultural (+2.1percent) sector also recorded w/w gains, predicated on buying interest in NESTLE (+5.6percent), AIICO (+12.5percent), SEPLAT (+5.8percent) and OKOMUOIL (+3.7percent). On the flip side, The Industrial Goods (-0.7percent) sector was the lone loser for the week owing to price declines in DANGCEM (-2.4percent). Investors sentiment as gauged by market breadth was overwhelming as it improved to 3.0x; 51 stocks advanced as against 17 decliners. As we approach the final five days to the long-awaited Nigerian presidential election on the 16th of February, we expect investors to trade sentiments around election outcomes. M o n e y M a r k e t : C B N ’s aggressive liquidity tightening stance give bears leg to run During the week under review, system liquidity tightened as the CBN continued its weekly wholesale FX intervention while successfully mopping up a total of N640.2bn via OMO auction on four of the week’s five trading days, against N315.3bn that matured during the week. Accordingly, money market rates (Open Buy Back and Overnight rates) trended higher, averaging 19.1percent compared to 10.7percent in the preceding week. Additionally, while stop rates at the OMO auctions remained the same; 91-day: 11.9percent, 182-day: 13.5percent, and 364day: 15percent demand was fairly robust as average bid-cover ratio came in at 1.2x. Th e s e c o n d a r y t rea su r y bills market was characterized by a tussle between the bulls and the bears. Cumulatively, the bears overturned the bulls as CBN’s liquidity tightening stance gave bears leg to run. Average yields trended higher to settle at 14.6percent from 14.4percent in the week before [91-day (up 26bps to 12.3percent), 182-day (down 31bps to 14percent) and 364-day (up 9bps to 17.5percent)]. Looking into the new week, we expect to see yet more OMO auctions as the CBN doubles down on curbing system liquidity ahead of upcoming elections and in the wake of c. N270.4billion (OMO: N117billion; NTB: 153.4) that is set to mature into the system this

week. Additionally, we also expect the CBN to sustain its weekly wholesale FX auction, in a bid to maintain FX liquidity, adding further pressure to overall system liquidity. Bond Market : Investors to position for slightly higher interest rate ahead of election In the bonds space, the Debt Management Office (DMO) published the FGN’s Savings Bond offer circular for February, wherein the Federal Government of Nigeria (FGN) plans to issue 2-year and 3-year tenors at 12.05percent and 13.05percent respectively. Elsewhere, daily secondary bond market performance was largely tepid. Though on a w/w basis, the bulls outweighed the bears as average bond yields compressed by 8bps to 14.8percent. This was as some players hunted for quick bargain buys. Similarly, the average yield on corporate Eurobonds decreased to 8.6percent from 9.2percent while average yield for FGN Eurobond trended higher by 7bps to 7.2percent. With this week being the final week ahead of the 2019 presidential election, trading sentiments in the secondary market would likely

coupled with a renewed offshore interest and an above $60/b oil price, we reiterate our outlook for naira to trade within the band of N360-N365/$1, at the I & E window. Nevertheless, demand pressures may heighten in the week – being an election week. Global Market Review and Outlook Markets grumble on softening global growth With drums of weakening global growth playing on the background, protracted trade negotiations between the world’s largest economies remained a hot- topic for the global market. In the past week, President Trump hinted that there would be no with President Xi of China, dampening the growing optimism of a trade deal in the short term as the March 1st deadline fast approaches. However, positive earnings report announced during the week gave the bulls some leg to run in the US market. Overall, the NASDAQ and DJIA indices posted modest gains, up 0.5percent and 0.2percent w/w respectively while the S&P 500 closed the week flat. In Europe, downgrades to growth forecasts weighed on sentiments as major indices

be subdued as players await the outcome of election results. Foreign Exchange: Failté... Foreign Portfolio Investors (FPIs) return to the I & E window Foreign Portfolio Investors appetite for Nigerian assets seems to have been kindled by the Fed’s recent “patience” tone as observed by recent inflows into Emerging and Frontier Markets (Nigeria inclusive). FPI’s share of FX inflow at the I & E window has not only rebounded to 51.3percent in Jan19 from 17.2percent in Dec-18 but have also continued to dominate the spectrum of inflows through the I & E window. Similarly, average daily turnover recorded at the I & E window so far in Feb19 ($319.6mn) stands above the average turnover recorded in Jan-19 ($216.5mn) and Dec-18 ($262.3mn). Consequently, the naira firmed across the three FX windows we track. At the parallel market, the naira traded flattish, settling at N359.5/$1 despite marginal volatility seen at the start of the week. Meanwhile, the domestic currency appreciated at the NAFEX and official window by 2bps and 0.3percent w/w to close the week at N361.7/$ and N306.7/$ respectively. With the CBN’s sustained resolve to defend the naira,

faltered w/w. The European Commission revised its forecast for the bloc, reflecting the weak momentum observed in the last quarter of 2018 and an expectation of a weaker momentum in 2019. The commission also highlighted uncertainties surrounding BREXIT, as well as unfolding events outside the EU as key risks. On the back of this the Pan European STOXX and Germany’s DAX shed 0.5percent and 2.4percent week-on-week (w/w) respectively. Furthermore, BRICS-classified Emerging Markets were largely bearish, led by Brazil’s IBOV (-2.6percent) index while South Africa’s JALSH (-1.3percent) and Russia’s RTSI (-1percent) indices also trended southwards. However, the Indian SENSEX index bucked the global bearish trend to close the week at +0.2percent, while activities in the Chinese market was largely muted as it was closed for Chinese New Year celebrations. Crude prices faltered by 1percent w/w as the confluence of potentially slowing global economic growth and ongoing OPEC+ cuts continued to shape s e n t i m e n t s. A l b e i t , p r i c e s remained above the $60/barrel threshold to close at $62.1/b, currently settling at a YTD return of +15.4percent.

Corporate Treasury Series

Strategy, cybersecurity, financial risks are treasurers’ top concerns … KYC for Corporates is a dream come true

reasury and finance professionals believe that strategic, cybersecurity and financial risks will remain the top areas of concern for the next three years. In a poll of nearly 400 practitioners, titled “the 2 0 1 9 A F P R i s k Su r v e y — The Evolving Treasur y Ecosystem”, supported by Marsh & McLennan, it was found that 60 percent cited strategic risk factors such as competitor and industry disruptions as their biggest area of concern. Cybersecurity risk ranked second at 51 p e rc e n t w h i l e f i n a n c i a l risk stemming from credit, l i q u i d i t y , c u r re n c y a n d interest rate risk came in third at 39 percent. While fintech is a growing challenge and opportunity for treasur y and finance, only 34 percent of respondents anticipate using more non-traditional vendors in the future. Non-traditional vendors include vendors other than b a n k s t h a t a re o f f e r i n g n i c h e s e r v i c e s, s u c h a s technology providers, payment providers, fintechs and task-oriented contract employees. Treasury professionals believe they will mostly use non-traditional vendors w ithin treasur y ser vices technologies and merchant ser vices technologies. Fl e x i b i l i t y , a d a p t a b i l i t y and customisation are the primary reasons treasury practitioners are choosing to use these vendors. D e s p i t e t h e c h a l l e n g e s, treasury professionals are anticipating, treasury departments expect to maintain their current level of full-time staffing over the next three years, the survey found. With the top three risks having a direct link to the treasury department ; corporate treasur y more than ever needs to become a stronger business partner to management and other business units. Additionally, the skills within treasury will need to evolve with the increasing use of nont ra d i t i o na l ve n d o r s a n d technologies. Changes are afoot. Treasury departments may be cautious in using nontraditional vendors, but our

survey suggests they could offer treasurers credible a n d e f f e c t i v e s o l u t i o n s. Non-traditional vendors have brought innovations to market that are disrupting existing solutions and relationships. Tw o days ag o, S WIF T announced that it is to open its world-leading Know Yo u r C u s t o m e r ( K Y C ) platform, The KYC Registry, to corporates. Corporate treasurers cite KYC as one of the top three challenges they face in their bank relationships. KYC fo r Co rp o rates is a dream come tr ue for all Treasurers, considering the heavy workload involved in providing the same documentation several times in multiple formats to our banking partners. In a first step, from Q4 2 0 1 9 , a l l 2 , 0 0 0 S W I F Tconnected corporate groups w ill b e able to join The KYC Registry, and use it to upload, maintain and share their KYC information with

to exchange information to enable KYC checks. Data is held in different places and is often incomplete or out of date, making the process time consuming for both corporates and their banks. The absence of uniformity, differing jurisdictional requirements and the lack of standardised data across the corporate KYC space increases these inefficiencies further. The KYC Registry is an online portal for financial institutions to exchange institutional KYC Due Diligence information. The platform allows banks to share KYC data and documents with their correspondents in a secure, standardised and controlled way, as well to get access to their correspondents’ c o m p l e t e a n d v a l i d at e d KYC profiles, resulting in efficiency and cost savings in KYC processes. The introduction of corporates will enable corporates to upload

their banks. Enabling corporates to join The KYC Registry will be transformational both for multi-banked corporates and for their banks, who already benefit from access to the 5,100 bank strong registry and can see the huge advantage of adding corporates. KYC for Corporates extends these benefits to corporates across the region, allowing them to share KYC information efficiently and thereby reducing costly processes. Major corporations use a range of banks in different jurisdictions around the world, with whom they need

standard infor mation to The KYC Registry as well as to exchange other KYCrelevant documents that are requested by their banks, thereby ensur ing the highest level of usability of the platform. Banks will benefit by having access to corporates’ information through the same central repository they use for their correspondent KYC checks, thereby enabling efficient data sharing through a s e c u re c e nt ra l u t i l i t y , eliminating duplication and inefficiency. In partnership with the Association of Corporate Tr e a s u r e r s o f N i g e r i a (ACTN)

Thursday 14 February 2019

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Company Focus

For Eterna Plc, it is about value creation for shareholders Frank Uzuegbunam & Iheanyi Nwachukwu

he Board and management of Eterna Plc visited the Nigerian Stock Exchange (NSE) on Tuesday February 12, 2019 to commemorate the company’s 30th anniversary. At the Exchange, they were honoured with a Closing Gong ceremony. The visit to the Exchange was part of the activities the company lined up to celebrate its 30 years of existence. Ahead of that visit and other activities lined up for the 30th anniversary, Mahmud Tukur, Managing Director/CEO, Eterna Plc who spoke to select journalists said the company is committed to creating value for shareholders. Eterna was incorporated on the 13th of January 1989 as Eterna Oil & Gas Limited. The company commenced business in 1991 and its shares were listed on the floor of the Nigerian Stock Exchange (NSE) in 1998. “It is very exciting time for us…30 years is a long time in the life of a company. Though, it was not without challenges. As a management, we owe a lot of gratitude to the board and shareholders,” he said “Our shares are not heavily traded because our investors are getting value in what they have and are not selling”, Tukur said. The company has declared dividends for three consecutive years, a first-time feat in its history. The dividends have increased year-on-year (yoy) by not less than 20percent since 2016. The company completed its first-ever credit rating exercise in 2018 and was rated a BBB status. The core of the company’s current business is trading, fuel

Easykobo offers investors platform for market information

L – R: Olumide Bolumole, head, listing business division, The Nigerian Stock Exchange (NSE) presenting a replica of the closing gong to Mahmud Tukur, managing director/CEO, Eterna plc, during a Closing Gong Ceremony to commemorate its 30th year anniversary at the Exchange.

supply and lubricants. AccordingtotheCEOofEterna Plc, the company will scale up its existing business by increasing its retail presence nationwide. It also plans to invest in LPG facilities and roll out LPG distribution channels nationwide using retail outlets and independent distributors. Eterna Plc wants to expand/ strengthen its presence in the lubricants markets nationwide, provide competitively priced high-grade products, backed up with world class after sales service. The company also plans to utilize existing assets to compete favourably in the supply of aviation fuels. In its bid to carve a niche as a manufacturer and marketer of reliable, efficient and high quality lubricants and oil products, Eterna Plc established a technical

trading relationship with Castrol BP in 1991 – the pioneers in global lubricant technology and specialty chemicals. The relationship gave rise to a distributorship agreement and an exclusive right to import and market Castrol products in Nigeria. Today, Eterna Plc lubes blending plant is world class with a state of the art laboratory in Africa to manufacture Castrol and Eterna products to cater for the West African markets. The company which operates in the downstream sector of the Nigerian Oil & Gas Industry grew its turnover from a low of N4.9billion in 2007 and a loss of N169million same year to turnover of N173billion in 2017. “For the year-ended 2018, the company’s audit is ongoing, and this will be completed in record time to allow Eterna meet its

regulatory timelines and hold annual general meeting in the first half of year 2019,” the CEO noted. This represents over 3000percent growth in the company’s business over a ten-year period. Eterna has also significantly expanded its fuels and marketing capabilities through the following acquisitions in order to enhance our cashflows and profitability: A Coastal Tank Farm in Lagos with a capacity of 34 million Litres; an Aviation Fuel Depot at the Bill Clinton Drive, near Nnamdi Azikwe Airport, Abuja. It is also committed to serve the petroleum products needs of the Eastern and Southern markets as well as roll-out of numerous filling stations across the country. It is currently targeting 200 Petro Stations in next 5 years.

asykobo.com, a social financial website has announced the launch of its new version 2.0 website. The new version, the company said surpasses any other financial information website in Nigeria, in terms of technology and features. For instance, this is the first time in Nigeria Cashtags have been introduced for every stock, enabling the investors to have dedicated discussions about a particular stock while also being able to access all the information pertaining to that stock, the historical discussions between real investors in a click of a button. All the investor has to do is to type in the stock name with a $ sign before the name. This will take user to company page of that company and show previous conversations between investors. This way, we will improve investor education towards stocks and economy. Keeping up with the current trends, Easykobo is now a social financial website where they provide a safe and secure platform for investors to connect with each other and discuss all their financial ideas or questions. The fun doesn’t end here; the website has also come up with a “Guess the ASI” game which rewards anyone who can guess the ASI before 2pm of any trading day. The new website has a clean uncluttered design, improved functionality and enhanced rich

content focused on the Company’s mission to provide live Financial and stock information to you at absolutely no cost. The new version (Easykobo 2.0) website went live February 1st, 2019. Arjun Markanda, co-founder and CEO of EasyKobo said “despite the current instability and turmoil in the stock market, we felt the launch couldn’t have been at a better time, as this is the right time to invest, as companies with strong fundamentals are reporting their lowest prices. We are committed to Nigerian financial tech innovation as shown in the latest version which comes 7 years after we introduced the Stock-Trials feature which was highly successful with youth investors across the Country.” He said Easykobo is making sure that the new launch is a bang, and the way they plan to do it, is by releasing a 14day Valentine’ Day contest. This contest allows you to participate in the stock trial game and win a romantic date for two in Jevinik Restaurant along with a wine bottle, to make your valentine’s day, a day you will never forget. So enter the contest soon, by logging into easykobo. com. This 14 day stock trials competition allows you to get a feel of investing in the stock market before any actual cash is involved, thus eliminating the risk towards investment in stock market.

Eagle Global Markets highlights its uniqueness

loudTrade, a platform of Eagle Global Markets (EGM) earned it the prestigious award of best “Digital Financial Platform of the Year 2018”. EGM was recognised as the best “Digital Financial Platform of the Year” by BusinessDay. The company had before then earned Proshare Markets’ Best Foreign Exchange Trading Platform of 2018. The EGM CloudTrade platform is one of the most innovative and game changing trading platform in recent times. The platform enables Nigerians to trade over 1000 Global Markets financial instruments in real time using Naira. The CloudTrade platform has been specifically designed to enable both new and experienced traders, trade with ease on the go. It can be accessed on both the web and mobile app platform. Temitayo Sanusi the Director of Operations at Eagle Global Markets said, “We ensure a smooth and easy process for our clients to operate, which in-turn create a great user experience for both the new in-experienced

trader and experienced traders, who find it extremely beneficial, having the option to trade on a dual platform using our local currency (Naira) or US dollars”. Aside the uniqueness of its CloudTrade, the following factors have proved to be the market power of EGM. Technical Accessibility EGM has an application of the same name with which you can control your account and trade in the financial markets on the go. This hasslefree mobile access allows you view real-time charts, place trades and manage your trading account from anywhere in the globe. In addition, the mobile App enables live streaming of prices, advanced order ticket functionality and trading tools. It is safe to say the technical accessibility is impeccable, because the app is updated quarterly; with the needs of the traders and ever advancing technology duly considered. EGM Education Financial illiteracy is a disease; studies by both the NDIC and EFina have shown that the current levels of financial literacy

in Nigeria are low. The cause to eradicate financial illiteracy and enable Nigerians access to good financial knowledge and freedom has been a part of EGM’s mission. EGM provides free weekly trainings, workshops, masterclasses, weekend classes for all those interested in trading global markets to enable them get an additional means of income daily and trade successfully. The top-notch Education EGM provides has been rated by industry experts as one of the best out there and this is evident

in the number of successful traders that have gone through it. Trade of the day More than any other platform, EGM highlights a trade that seems to be the gold mine of the moment. This gives the traders a hint on the profit forecast and how advantageous their corresponding decisions might be. This is categorized under Customer Service. Market Insights With the steady press of market metrics, news, economic calendars, manuals and webinars, EGM poses as a

reputable source of educative information for traders. EGM Analytics One spectacular feature that EGM has incorporated overtime is its “ANALYTICS” The latter has proved to be a reliable means to curb loss and also forecast the possible rise and decline in a time-based spectrum of the market (i.e. the buy / sell signal). By this means, EGM succeeds in providing profitable trade set-ups for its clients on a daily basis. These set-ups are analyzed holistically as they take into account the relevant fundamentals and technicality involved in the market. In actual fact, EGM caters to more wins than losses; which is the real deal to any profit-oriented trader. There is a thriving competition in the Global financial market that keeps all financial platforms beaking for high profit traders in a digital world. In a race to get more traders on your platform, what you do better than any other platform goes a long way to build a success trail for your reputation. There are many factors that highlight a digital

financial platform from the others, For instance; the trading strategy of many digital financial platforms in Nigeria, Eagle Global Market (EGM) has fused a lot of factors together to position itself as arguably the best in the sphere. Receiving the award for the “Digital Financial Platform Of The Year” –at the BusinessDay Nigeria BAFI2018 Awards; the co-founder Gbite Oduneye said; “We are grateful for the recognition and the eco system for adopting the Cloudtrade platform. The amazing team that helped deliver the product to the clients, and we promise to continue to innovate and ensure we deliver the best possible product to our clients”. According to ProShareng. com -One of the leading economic analyst in Nigeria“The Eagle Global Market retains the reputation of being the premier partner for introducing brokers in Nigeria, and the best in the Nigerian digital financial market. Riding on its transparency; longevity and trust have reinforced its position as the best.

BUSINESS DAY

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Leadership

Thursday 14 February 2019

Shaping people into a team

Calculating the value of impact investing trial — which compares groups with and without a designated intervention? Both types of research are preferable to observational or case studies. Just as important is relevance: Does the study include people living in similar contexts and in the same income bracket? When uncertainty or a lack of reliable research stalls your work, seek guidance from an expert in the field.

Chris Addy

AN EVIDENCE-BASED WAY TO ESTIMATE SOCIAL AND ENVIRONMENTAL RETURNS. s concerns about scarcity and inequality become increasingly urgent, many investors are eager to generate both business and social returns — to “do well by doing good.” One avenue is impact investing: Directing capital to ventures that are expected to yield social and environmental benefits as well as profits. Although the business world has several universally accepted tools for estimating a potential investment’s financial yields, no analog exists for evaluating hoped-for social and environmental rewards in dollar terms. Over the past two years the organizations we work for — the Rise Fund, a $2 billion impactinvesting fund managed by TPG Growth, and the Bridgespan Group, a global social-impact advisory firm — have attempted to bring the rigor of financial performance measurement to the assessment of social and environmental impact. The partnership between Rise and Bridgespan has produced a methodology to estimate the financial value of the social and environmental good that is likely to result from each dollar invested. We call our new metric the impact multiple of money. The method of how to calculate an IMM during an investmentselection process consists of six steps.

1. ASSESS THE RELEVANCE AND SCALE Investors should begin by considering the relevance and scale of a product, a service or a project for evaluation. With regard to scale, ask: How many people will the product or service reach and how deep will its impact be? Rise’s experience

with calculating the product reach of the educational technology company EverFi provides a good example. Rise identified three EverFi programs that already had significant reach: AlcoholEdu, an online course designed to deter alcohol abuse among college students, which was given at more than 400 universities; Haven, which educates college students about dating violence and sexual harassment and is used at some 650 universities; and a financial literacy program that introduces students to credit cards, interest rates, taxes and insurance, and is offered at more than 6,100 high schools. On the basis of projected annual student enrollments in these programs, Rise estimated that an investment in EverFi could affect 6.1 million students over a five-year period beginning in 2017. Of course, a program’s impact is not just about the number of people touched; it’s about the improvement achieved. 2. IDENTIFY TARGET SOCIAL OR ENVIRONMENTAL OUTCOMES The second step in calculating an IMM is identifying the desired social or environmental outcomes and determining whether existing research verifies that they are achievable and measurable. Fortunately, investors can draw on a huge array of social science

reports to estimate a company’s impact potential. Over the past decade foundations, nonprofits and some policymakers have relied heavily on research results to guide funding for social programs. For AlcoholEdu we drew on a 2010 randomized controlled trial demonstrating that students who had been exposed to the program experienced an 11% reduction in “alcohol-related incidents.” That would amount to some 239,350 fewer incidents. According to the National Institutes of Health, alcohol-related deaths account for about 0.015% of all deaths among college students in the United States. Rise estimated that AlcoholEdu would save 36 lives among the approximately 2.2 million students who were projected to engage with the program over a five-year period. 3. ESTIMATE THE ECONOMIC VALUE OF THOSE OUTCOMES TO SOCIETY Once they have identified the target outcomes, social-impact investors need to find an “anchor study” that robustly translates those outcomes into economic terms. To choose an anchor study we look at several key features. First, its rigor: Does the study systematically evaluate previous research results to derive conclusions about that body of research? Alternatively, does it present findings from a randomized controlled

4. ADJUST FOR RISKS We adjust the social values derived from applying the anchor study to reflect the quality and relevance of the research by calculating an “impact realization” index. We assign values to six risk categories and total them to arrive at an impact-probability score on a 100-point scale. Two of the index components relate to the quality of the anchor study and how directly it is linked to the product or service. Together these account for 60 of the possible 100 points. Anchor studies based on a meta-analysis or a randomized controlled trial merit top scores, whereas observational studies rate lower. The four remaining index components, each of which gets a maximum score of 10, are context, country income group, product or service similarity and projected usage. Constructing the index proved challenging. We refined the risk categories and the values assigned to each many times on the basis of feedback from experts in evaluation and measurement. 5. ESTIMATE TERMINAL VALUE In finance, terminal value estimates a business’s worth in dollars beyond an explicit forecast period and typically accounts for a large percentage of the total projected value of a business. It is, however, a new concept in social investment, where attention usually focuses on quantifying present or histori-

c 2017 Harvard Business School Publishing Corp. Distributed by The New York Times Syndicate

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cal impact. To be sure, for many projects the social impact does not long outlive the program. But others can have a longer-term impact. In some cases, therefore, it makes sense to estimate a terminal value. 6. CALCULATE SOCIAL RETURN ON EVERY DOLLAR SPENT The final step in calculating an IMM differs for businesses and investors. Businesses can simply take the estimated value of a social or environmental benefit and divide it by the total investment. Investors must take an extra step to account for their partial ownership of companies they are invested in. Suppose Rise invests $25 million to buy a 30% ownership stake in a company projected to generate $500 million in social value. It can take credit only for the proportion of that value reflected by its stake: $150 million. Rise divides $150 million by its $25 million investment and arrives at $6 in social value for every $1 it invested — an IMM of 6X. BUSINESSES AND INVESTORS must develop better ways to assess social and environmental impact. We’ve embarked on this experiment to demonstrate the value of putting impact underwriting on the same footing as financial underwriting. In a world where more and more CEOs talk about profit and purpose, the IMM offers a rigorous methodology to advance the art of allocating capital to achieve social benefit.

Chris Addy is a partner at the Bridgespan Group, a global social-impact advisory firm. Maya Chorengel is a senior partner at the Rise Fund, an impact fund that is part of the private equity firm TPG Growth. Mariah Collins is a manager at the Bridgespan Group. Michael Etzel is a partner at the Bridgespan Group.

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Luxury

Malls

BUSINESS DAY

Companies

Deals

Spending Trends

Nigerians tighten purse before election as retailers count their losses David ibemere

etailers are worried the uncertainty surrounding the election, is weighing down consumers at a time when they hope to recover from the slow sales experienced from last holiday season. A BusinessDay visit to Lagos malls showed worst hit among these retailers are stores selling cards, gift packs, perfume, flower, beauty and female wares. Few store operators who spoke with BusinessDay, however expressed optimism that things will get far much better after election is over. “Usually, all my stock is booked well in advance before Valentine’s Day. But this year I have not secured a single booking, since last year, Nigerians seems to have held on to a frugal habit” said Ademola, a shopkeeper.

Shoprite Nigeria last year announced it recorded its slowest sales growth in years, and was linked to low consumer confidence. Other shopkeepers and stallholders in Yaba, Ikeja, Oshodi, and CMS markets visited were seen chatting away waiting for customers, echoing Ademola concerns. Market survey shows the price of gift cards sold at N1600 last year was selling for N1000 and others N800, perfumes ranges from N2500 to N10,000 most had prices slashed by N600, N400 to woo consumers. “I have sold a couple of them some few hours ago” she said. For Jumai Alabi ,a flower shopkeeper in CMS, expressed surprise noting she had to drop some of her inventories to as low N1500, which on a good market day are sold at N2500 to N4000 depending on the customer bargaining power. Victoria another retailer who deals on cloths said she also had to drop her price due

to the low interest showed especially for the expensive red dresses, which to her is unusual especially on a Valentine’s Day. A survey at various malls further showed that only selected gift stores displayed goods relating to Valentine

Day. In a recent survey carried out by Nielsen, it showed Nigeria’s latest Consumer Confidence Index (CCI) for the third quarter of 2018 decline by four point to 118, when Ghana’s consumer confidence for the same quarter

rose by five points to 113. Consumer confidence measures how optimistic or pessimistic consumers are regarding their present and future economic prospects. Commenting on the results, Bryan Sun, Nielsen Sub Saharan Africa MD

blamed Nigeria’s low consumer confidence on the economic growth, the strain of continued high inflation, and the current political climate with the upcoming elections, have led to a drop in consumer confidence in Nigeria. “Consumer wallets are currently very stretched, with consumers struggling to make ends meet. The sentiment around minimum wages being too low has also taken its toll on confidence levels and is being reflected in consumers’ spending habits,” he noted. Emmauael Morka a marketing lecturer at Delta State Polytechnic explained that the fall in retail sales is a real sign that consumers are tightening their purse strings due to uncertainty about the forthcoming elections. “It’s possible that consumers postponed major purchases until the after the elections, a stability after the election will definitely trigger a rebound in sales volumes.”

Tips on getting the right valentine’s day gift British Airways unveils Valentine’s Day promo BUNMI BAILEY

ritish Airways, a full service global airline is offering fantastic fares in Economy and Business Class this Valentine’s Day. As part of this year’s valentine celebration, British Airways has announced great return fares to London with offers as low as $169 in Economy Class and $2009 in Business Class. This promo is for customers travelling the Lagos – London route or the Abuja – London route. Kola Olayinka, British Airways Regional Manager for West Africa said, “In the spirit of the valentine sea-

son, British Airways wants to show appreciation to its customers hence these promotional fares. We want them to create new moment as they travel this season and spend time with their loved ones.” The promo fares are available for outbound travel between now and 24th March 2019 with a minimum stay of 3 days and maximum stay of 12 months. The offer ends on the 28th of February 2019. British Airways, international flag carrier in the United Kingdom, recently celebrated a hundred years of operation and is committed to providing continuous excellence in its service to valued customers.

alentine is here again with fragrance of love thickening the air. Love, the reason for the season opens a toast to the celebration of friendship, with the most exciting sessions, exchange of gifts. It’s a gifting spree and there are means to do it right. Here are some tips to make a choice nice Keep it meaningful Meaningful gifts don’t have to be expensive. They can be handmade or even specially made. The thought behind the gift is what is important. Finding creative ways to express your love can be the most important gift you could ever give. Don’t just be stuck with buying a name brand item that brings no meaning to the one you love. Buy online Even if you’re looking for the perfect piece of jewelry, online jewelry stores are very inexpensive and have huge variety of gifts for your

loved one. It’s a great way to find the perfect gift and doesn’t take a large effort. You can use a search engine with keywords about your Valentine and come up with sites that will cater exactly to what you’re loved one wishes. You’ll be able to find the perfect gift and save

your wallet at the same time. Buying online is safe and secure too. Think experience, not price Don’t put a price tag on a gift. That’s an old adage that some have taken to mean, you should spend a truckload of money on

something for your loved one. Spare no expense. That’s not necessarily what that can mean, however. It could just as easily mean you don’t spend a lot on their gift, but instead create an experience that they will never forget while you’re giving them that small gift. If you really want to make your Valentine’s Day gift memorable and perfect, don’t just buy a gift. Make an experience out of the whole thing The details matter Thinking about the details is very important. If you’re planning an experience, you’ll want to do research on what it would take to make that happen. Don’t forget that your loved one may work, and you’ll need to schedule around their job. Also, think about how much time it would take to drive somewhere. It may be that there is someplace closer that will work just as well and you’ll be able to spend more time together.

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Weak consumer spending pushes trade sector to 3 year negative growth BUNMI BAILEY

eak cons u m e r spending may be the major factor contributing to the three year negative growth recorded in the trade sector, according to analysts. According to the newly released 2018 National Bureau of Statistics (NBS) GDP report, growth in the trade sector recorded a three year growth to -0.63 percent in 2018 from -0.24 in 2016. Gbolahan Ologunro, an equity research analyst at Lagos-based CSL Stockbrokers said, “This shows that consumer spending is weak .The growth in the real sectors of the economy has been below historical tread levels. And what you will find out is that those sectors that should be the real engine of the economy have not been able to increase the level of employment opportunities so that has also affected consumer spending.” “For instance the real estate sector has been experiencing negative growth for about 12 consecutive

quarters now and the agricultural sector grew at 2 percent in 2018. These sectors have been experiencing growth challenges,” Ologunro concluded. Consumer spending which is driven by growth in these sectors is not strong enough to give rise to higher employment opportunities that will give rise to consumption. Nigeria’s unemployment rate increased from 18.8 per cent in the third quarter of 2017 to 23.1 per cent in in the third quarter of 2018, according to NBS. Johnson Chukwu, CEO, Cowry Asset Management Limited attributed the three

years negative growth to the low purchasing power of consumers in the economy, lack of increment in the wages and salaries of workers and the bottlenecks in the importation of goods and services. “Over the past three years the value of currency has been displaced by more than 50 percent and there have not been any increment increase in the wages and salaries of workers,” “Low purchasing power from consumers has impacted negatively on the trade sector and the bottlenecks in the importation processes has made it diffi-

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Amazon wooed to test Nigeria’s e-commerce waters as India unleash policy ban Temitayo Ayetoto cult for people to get foreign currency on time and this has constrained the volume of goods and services that comes in,” Chukwu concluded. According to the International Monetary Fund (IMF) per capita income data, Nigeria’s income declined by 26 percent to $2050.2 in 2018 from $2763.2 in 2015. Trade GDP growth rate stood at 1.02 percent, which is –1.05 percent points lower than the rate recorded one year prior, but 0.04 percent points higher than recorded in the preceding quarter. Qu a r te r o n q u a r te r growth stood at 9.93 percent. Though slightly better than 2017, growth rate of real trade GDP in 2018 remained negative at –0.63 percent. Trade’s contribution to real GDP was 16.50 percent, lower than the 16.72 percent it contributed the previous year, but still higher than the 15.80 percent recorded in Q3 2018. The contribution of trade to real GDP in 2018 stood at 16.44 percent, a slight decline from 16.86 percent recorded for 2017.

ith India taking no chances at slamming its foreign direct investment (FDI) policy hammer on the world’s largest e-commerce firm, Amazon, some who have long nursed the dream of the company making real entry into Africa’s largest economy have started amplifying their reasons. The arguments are that even though the challenges for both countries are similar, the retail giant appears undeterred in fixing those problems in the case of India. This is evident in Jeff Bezos, its chief executive officer’s aggressive-penetration approach which last year saw $5 billion channelled to consolidate Amazon India’s infrastructure and growth, after already having 42 fulfilment centres, 150 delivery stations, and 25 sorting centres, according to Forbes citing of a Citi’s research. In its six-year entry into India, it grew its worth to $16 billion and controls 30 percent of the market but has not made profit, yet, keeps faith in the sector’s potential to hit $202 billion in few years. But now, India has embarked on the implementation of an e-commerce policy banning platforms like Amazon alongside competitor, Walmart from holding exclusive sales

and prevents it from selling products on platforms they count as investors which applies to restrictions on discounts and cashback promotions. It means Amazon cannot simultaneously have equity participation in e-commerce marketplace firm or its group companies, and sell its products on the same platform. With these hiccups, many already think it’s time Amazon put action to exploring the opportunities in Nigeria, which will likely not consider such policy restriction anytime soon. “Sure, we know why these companies do not want to enter Nigeria with the same zeal and energy but yet India has the same challenges as Nigeria except trust and the American firms are investing to fix those issues,” said Ndubuisi Ekekwe, an analyst. “I call on Amazon and Walmart to open stores in Nigeria.” If it has operations in Nigeria, Amazon could really improve the delivery system, help build new airports that can facilitate the movement of services on a big logistic programme across the country and fix the postal system. Moreso, it could really boost content creation rather than mere aggregation, meaning artisans like shoe makers in Aba for instance could be opened up to a huge big shoe market.

Living under poverty line How Nigerians are struggling to survive

If you want to contact the writer of this story call: +234(0) 8030814083

Bailey.oluwabunmi@businessdayonline.com

Low consumer spending is driving down sales - Edet Name: Emmuanel Edet State of origin: Akwa Ibom Age: 38 Dependants: Wife and two kids Occupation: Food vendor How did you start your journey into the business? The journey ventured started when I had no money to sit for the West African Examinations Council (WAEC ) and I was also an orphan. So I decided to travel to Lagos where I squatted with my cousin and begun to hustle on the streets to make a living. I decided to hawk doughnuts to meet ends meet. But after sometime, things were not going well for me so I decided to do minor jobs by working for a commander. I was his errand boy before I graduated to be his

cook. That was where I took interest in kitchen activities. The commander was also a cook so I guess I learnt from

him as well. Unfortunately I needed to leave the man to start a good business on my own. In 2002, I came to

Apapa to start this indomie business. In the first day, I started with a half crate of eggs and

Analyst: Bunmi Bailey Graphics: Fifen Eyemisanre Famous

half carton of indomie. To my greatest surprise, I finished selling all of them that same day! How are you able to cope with competitors? There was a popular Hausa man known in the area for preparing good indomie. I studied him to see know how he makes its indomie unique from the rest. After studying him, I thereafter decided to change my cooking pattern and before I knew it, people begun to love my indomie. What are the challenges that you face in this business? We have a lot of competitors in this business, the rate of indomie consumers has really reduced and the cost of indomie is really causing a problem. I remember when I used to buy small cartons

of indomie for N800 now it is about N1,500 while the big size is N2, 300. I sell two cooked indomie, garnished with onions, pepper and egg for N300. This business is not booming as before. How do you think you can be helped? I just don’t want to limit myself to preparing cooked indomie anymore due to low demand from consumers. I have plans to start preparing porridge yam, beans, sandwiches, tea, bread etc. And if you look around this environment, nobody is really selling these things that I mentioned. If I can do these delicacies then at least I will do well. I don’t like borrowing money for people. You need to have enough money or capital to be able to support yourself.

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Corporate Social Impact

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Onuwa Lucky Joseph (08023314782) Editor.

CSR PERSONALITY DATA JAJA - MD, DATA CONSULTS

Forging responsible partnerships that Nip today’s issues ideas, services, etc. and this in a way that’s at cost rather than profit to the company. PARTNERING And for Jaja, she has always partnered, except for when the partnership does not materialise quickly enough and she needs to get on with a project. Her backers have been corporates and individuals whose values and CSR goals are aligned with hers.

Onuwa Lucky Joseph

ata Jaja sees the world in terms of gaps that need to be filled. It is for this reason that she’s steeped herself in the world of voluntarism. If no one else will, I will. That seems to be the mindset that’s seen her doing the needful, many times even when financial compensation is not assured. That’s not to say she hates money. She can do with more than she has. But she feels compelled to obey when duty calls. And mostly it calls in the form of children who need tending, mentoring and a sense of direction. This duty to kids has seen her work as a primary school teacher and therapist in schools for children with learning disabilities. But beyond that, she has also been a personal assistant, a management secretary as well as a CSR/Community Relations and Corporate Affairs Manager. Why Her CSR Focus is Education While many bemoan the gradual demise of a once vibrant reading culture amongst our young folks, Data is doing what it is she can to actively address it and to get our kids in love with books again. To achieve success with this objective, her company, Jada Consults, created a methodology that helps develop reading skills in children, which will in turn spin-off other literacy abilities, such as speaking, writing, spelling and listening. She says that this is done via the company’s “Literacy Development Project”, a project that also has Braille Literacy fully incorporated in order to create opportunities for working with the visually challenged and hearing impaired as well. According to Data, “What we are trying to do is to reverse the current trend of educational degeneracy”. Now, that’s not an indictment on teachers or the apparatus of the formal education system. No one is acquainted with that sector who does not understand that where we are is a combination of many factors, some of them far and above the purview of everyday operatives. That’s why the Literacy Project “is an intervention program to mitigate the shortfall in our system in a way that helps children become more competent, to spark the interest of pupils, so that reading becomes a pleasurable habit for them and, ultimately, help them in their school and other work”. Promoting the Reading Culture The Literacy Development Project is set to achieve a number of things: 1) Institute a reading culture in students, 2) Make reading enjoyable and improve students’ ability to write; 3) Broaden their imagination through reading, 4) Improve their level of comprehension and expression in English Language, 5) Develop budding writers who also have analytical skills.

Her Delight is in People, Especially Children “I just knew I loved to help people and really give a helping hand always with the little I had without necessarily wanting back.” That’s a sentiment we hear a lot from people like Data. Regular folks can’t quite get it. This business of doing without expecting some reward does not sit well with us; but having been around these guys, I know that there are those for whom life is about giving of themselves. It’s something a lot more of us would do well to tap into. And to a large extent, looks

knows this because she also has had “a lot of people help me and come to my aid one way or the other. This is how the world goes round.” Her example to illustrate this was when she was in secondary school and had some problem with her eyesight for which her parents had to get her a pair of glasses so she could see and read better. Sometime later a friend of hers also had trouble with her eyes. It was so bad it reminded Data of what she had experienced with her eyes all watery and red and painful and her vision blurry. So she gave her glasses to her friend to use while forgetting her own discomfort for the meantime. Would she Recommend CSR? Wholeheartedly, she says. “CSR is a good thing to do as a corporate body or as an individual.” She says even though a lot of corporate organisations are doing more than they used to do with regards to CSR, “we need to see more, because it is the proper thing to do. We cannot leave it all to the Government to do. We need to help people who clearly need help. In whichever way we all can.” Baking the Passion The passion is but the raw material. The reason she can do what she feels led to do as her life’s work is because she spent some time cultivating and nurturing the talents and skills she now has acquired. Data has amassed certifications and degrees in Public Relations, Secretarial Administration, Law and Theology. She also has professional certification in Alternative Dispute Resolutions (ADR), Writing of Children’s Literature and Short Stories, Understanding and

Borne Out of Her Own Struggles Data says that as a child, “I did struggle a bit with reading and writing, so it came natural as I grew up, for me to want to help children struggling with reading and writing. I mean who better to help young children with reading or writing problems than one who has experienced it?” There you have it. When you’ve been in the well, you want to help lift others out of it. So, it’s a passion and a calling for her, a calling that she has continued to answer. She says her prayer is that more well-meaning Nigerians see the need to tackle this issue and wholeheartedly join her to act as a support system for the educational sector in Nigeria. Data believes she has lived CSR from childhood, only that as a child she didn’t have a name for it. Of course by CSR, she means the spirit of giving back that’s generally altruistic and not based on the profit motive. CSR scholars and practitioners may join issues with her on this, as they insist that CSR should still ultimately be about the bottom-line even if it’s not integrally so structured. Whatever be the case, our understanding is that with corporate social responsibility individuals who may not be staff or suppliers or in any way directly connected to the company, that get the benefit of the company’s social input by way of infrastructure,

like these things start from childhood. Hear her as she says animatedly: “I grew up well taken care of by my parents and very happy. I have so much love to give children today. I enjoy helping people particularly children because I love children; and I have always felt fulfilment when I put a smile on a face”. Though a single parent who has to eke out a living for herself and the kids, that that has not made her a tight wad. “I want to help somebody stay on track and in touch with reality. This is the reason for our being here as human beings, to help take care of one another. Wherever you can help please don’t miss the opportunity to help people. It is a wonderful feeling and spiritually rewarding because you will live right always. “Don’t Turn Your Back on a Child who Clearly Needs Your help” If there’s one thing she would not be caught not doing, it’s helping people. And like she reiterates, that has being a part of her life since childhood. “Don’t turn your back on a child who clearly needs your help. Learn to help.” She

Managing Dyslexia and Montessori Method of Teaching. She is also a Chartered Mediator. Some of Her Projects Data Jaja was a TV Anchor for the Reading is Fun programme on the National Television Authority (NTA). The series couldn’t run for long owing to lack of sponsorship. It is something she might want to give a shot again, if

the right support team comes along. She has organized Literacy/Braille Literacy projects in Lagos State, Oyo State and FCT, Abuja. She received approval from the Ministry of Education, LASG Curriculum Development Services Unit to run the book reading (print and braille) project in all LASG public schools. Her books for the visually impaired are titled - My Book of Animals and My Book of Shapes (Series 1) and all 3 published story books are available in Braille Author Story books for children: Tamuno and his Tall Tale; How the Tortoise cracked his Shell; Tonye’s Magical Christmas; Cheating and Bullying - not so cool; The Gold Field etc. Aside her day job with Data Consults, she currently has a column, Kiddies EcoSpace, in Energy Times where she elucidates on STEM based topics She is a feature writer in several school magazines and children’s comics She is engaged with the SEEEED Academy on pro-bono basis, helping in coordinating a number of activities around the promotion of Skills, Empowerment, Entrepreneurship, Employability and Education Development amongst Nigerian women and youth. SERA Award Nomination And for her many projects through the years, she was nominated for the SERA Innovation Prize in 2018. Although she didn’t win eventually, she found it gratifying that her efforts are being noted by CSR industry watchers and players. She believes that with the right support, her company would be able to deliver a lot more to and achieve on the lofty goals they’ve set themselves. Supporters of the Dream Data lights up when she talks about her corporate and individual sponsors. And that precisely is what the CSR journey is about. Corporate organisations, when they see individuals or organisations with the right skill sets and experience to help deliver on their corporate objectives, they should waste no time supporting such an one. At the end of the day, both parties win, but more especially the organisation because it’s their signature on the project. They just had it made to taste. Her supporters have included: First Bank of Nigeria Plc Guaranty Trust Bank Plc The AGBAMI Partners Eterna Plc AMNI Decorus Dea and several benevolent Nigerian philanthropists who prefer to not be mentioned. She is always fishing for support, of course, so should you feel led to help, the Data Consults door is wide open. “Wherever you can help please don’t miss the opportunity to help people. It is a wonderful feeling and spiritually rewarding because you will live right always|” - Data Jaja.

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Paralympians get wheelchair-Accessible Bus Onuwa Lucky Joseph

ime and again, Nigerian paralympians have done the nation proud with their exploits at international competitions. Disabled is not how these titans consider themselves. Ever! They are bona fide champions, perched right up there alongside other worthies on Mount Olympus, having done the arduous, not to mention fearsome work of climbing all the way to the top. Gold after gold, they have delivered. Same with silver and bronze. And that may be the reason the Parapowerlifting team has been formally adopted by FrieslandCampina WAMCO, makers of Peak Milk, as the very embodiment of citius, altius, fortius - faster, higher, stronger. ‘Higher’ and ‘Stronger’, everyone can understand, but ‘Faster’ to aptly capture the rapidity with which these guys, male and female, break world records at international meets. Their stories have been captured in the Unstoppables Campaign that FrieslandCampina WAMCO dedicated to these athletes who have come from mostly disadvantaged

backgrounds and crawled their way through misfortune after misfortune, never giving up until they ended up champions. The chaperone for that campaign, Cobhams Asuquo might not be an athlete, but he’s had more than his own fair share of travails, overcoming in the end to be a multi award winning singer, songwriter, producer and all round star. On Tuesday, February 5th 2019, barely a week after the para-powerlift-

ers won a total of 42 medals (20 Gold, 15 Silver and 7 Bronze) at the just concluded World Para-powerlifting Competition held in Lagos, Peak Milk presented to the Nigeria Para-Powerlifting Federation a new mobility bus, with wheelchair access. The International Paralympicapproved mobility bus seats 12 people and 15 wheel chairs. This first of its kind mobility bus in Nigeria is equipped with automated lifts and

other features to ensure convenience and the safety of athletes. It was the fulfillment of a promise earlier made by the company and it’s seen by sports enthusiasts as increased motivation for the athletes to ‘Reach for the Peak’ at the 2020 Tokyo Olympic Games. Solomon Dalung, Sports Minister, gushed through his representative, Olusade Adesola that “With this donation, FrieslandCampina WAMCO has

elongated its catalogue of support to the Para-powerlifting team which has continued to contribute positively to Nigeria through global para-sports.” The Managing Director, Ben Langat, highlighted that the company’s support to the Nigeria Para-powerlifting Federation clearly explains FrieslandCampina WAMCO’s purpose as a company and its belief that every Nigerian has a right to reach their peak.

TuBaba, Teni, MI, others, team up for 2019 elections

uBaba, formerly known as TuFace is a known advocate for good governance. His songs ‘For Instance’, and ‘E be Like Say’, amongst others, clearly demonstrate that. He also did a sensitisation song prior to the 2015 elections. He’s demonstrably a veteran at this. MI, being a rapper, also has some strong views about Nigeria and has lent his voice through some of his songs to calls for good governance and better security for Nigerian citizens. In view of the enormous importance of the 2019 elections, the two, working with INEC, have co-opted other notable musicians like Teni the Entertainer, Chidinma Ekile, Waje, and Cobhams Asuquo to help spread the message of “Don’t Sell Your Vote”. It’s a message that resonates and

Charly Boy’s voters’ awareness campaign

harly Boy is clearly unhappy with the state of things and is determined to play his part in ensuring that ignorance does not keep the masses in darkness. It is to this end that the convener of the Our Mumu Don Do (OMDD) Movement launched an awareness campaign centred on the power of the electorate. His job at this moment, he said, was to help people realise that they are squarely in the driving seat and with powers to hold leaders accountable. At the town meeting tagged “Na We Be Government”, Mr.

Oputa insisted that the current crop of leaders were not worthy of the name as they had lowered the bar of governance. For which reason, despite the efforts of government to strangulate free speech, people should not be discouraged from asking questions, demanding their rights and sharing their ideas on how to make Nigeria work better. Participants at the event asserted that government must meet up its responsibilities to the people, failing which they should not be surprised if they are shown the exit door.

should resound all over Nigeria.

NOT FOR SALE (LYRICS) No sell your vote o No matter the thing dem dey tell o No matter how the thing dey do you o No matter how much money dem dey give you o No sell your vote o No need to fight o Because their pikin nor go join you o Dem go dey one corner dey laugh you o Oh, no sell your vote o (MI) Okay, if you look at the situation eh Everything harsh for this our nation eh

Poverty rising and inflation eh Line still dey for the fuel station Things got to change na determination This election, no intimidation To check this election, we got to make sure Everybody vote count for the future Teni Shine your eye welu welu Nor let anybody deceive you Nor let them take your vote from you Na your future be dat o Na your future be dat o Together, together we can make Nigeria better One vote one voice we can make Nigeria better (etc., etc., etc.,)

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BUSINESSTRAVEL Firm to bridge training gap in aviation sector with new simulator Stories by IFEOMA OKEKE

e a d s t re a m Av i a t i o n Training, an Approved Training Organisation (ATO) has said it is studying the Nigerian market and would be bringing in a simulator to bridge the training gap that exists due to inadequate training facilities to help save airlines downtime and foreign exchange. Roland Ahmed, Leadstream’s accountable manager and executive officer said the ATO is doing a comparative study to show airlines what they could save in terms of cost, stress in getting foreign exchange and downtime by utilising indigenous ATO s for their training. Ahmed who explained that there is a vacuum said the organisation is looking at areas and possibilities where it can reduce capital flight.

“Naturally, people want to travel abroad for training because for us, it’s a status thing but the question is what value are you adding to

the system? How are you trying to get the system to work seamlessly and effectively? When you go for training outside, the people you are

Air Peace tasks aviation staff on integrity as airline honours pioneer manager

llen Onyema, chairman/ chief executive officer of Air Peace, last week urged aviation workers, especially those in the airline arm of the industry, to imbibe the virtues of hard work, humility, honesty and integrity to save their organisations from going down. Onyema made the call during a reception held in honour of Olawale Amos Olajide, retiring Air Peace Flight Operations Manager, in Lagos. The Air Peace boss decried the increasing trend of dishonesty among airline staff, saying a lot of carriers had been destroyed by their workers’ lack of integrity and disloyalty. He described Olajide as a dedicated, hardworking, honest and humble man of exceptional in-

tegrity and professionalism in the aviation industry. Olajide, he said, joined Air Peace as pioneer Flight Operations Manager on July 1, 2013 and made huge contributions to the carrier’s ascendancy to the leadership of the air travel business in Nigeria and West Africa. “Olajide would have retired two years ago. When he came to tell me, he did not say he was retiring to go and join another airline, because one thing is certain in this country, there is no airline better than Air Peace. I say this with every sense of humility and responsibility. When he told me he was retiring, I couldn’t take it. I told me ‘you are not going anywhere. You have to continue until I say it is okay’. He honoured my request to stay for another two years.

Allen Onyema, chairman/chief executive officer, Air Peace

“Let me tell you something that you have to know tonight. If you have not got to the stage your employer will not allow you to leave, then you should begin to ask yourself questions. I want all of us here to make it impossible for your employer to let you go. “What I am saying here is to encourage you to be like Olajide. Mr. Olajide gave his all to Air Peace. He was employed on July 1, 2013. That was the hardest period of our lives. That was the period he joined. He contributed immensely to everything we are today. He doesn’t react to pressure. Whatever comes, Mr. Olajide remains the same calm Mr. Olajide. He uses his calmness and humility to disarm you. He has patience in abundance. He has tolerance in abundance. I wish we all will learn from him. He is a man of integrity and honesty,” he said. Onyema thanked Olajide’s spouse, Paulina and children for supporting their patriarch to sustain his reputation of hard work and honesty. He urged Olajide’s children to follow their father’s example and acquit themselves creditably in their different places of work. He presented a certificate of excellence, cash and a car to the retiring member of staff, saying Air Peace was grateful for his dedication to duty and would miss his valuable contributions to its flight operations. Responding, Olajide said he was grateful to Onyema and Air Peace for the opportunity offered him to contribute to efforts to grow the airline. He assured that he would continue to be part of the carrier’s vision to transform air travel in the country and beyond.

going to meet there have their own simulators. You go to Lufthansa, they have their own simulator, and so if we come here and do the same thing, it saves us money. It will bring in foreign exchange for us. “We have put our strategy in such a way that we can penetrate into the airlines and do a comparative analysis for them to see how much they are going to be saving because if a pilot is supposed to do his simulator training and travels out there will be a lot of ground time. This is because when he gets there he is tired and starts his training in two-three days, finishes his training then he flies again and comes back and he will want to rest again for another one or two days and the airline will be losing time and his services. On its plan to bring in the simulator and the type giving the complexities of the Nigerian market, Ahmed explained that operators

are currently shifting from the status quo and that will inform their decision on what simulator to bring in, in a couple of years but for now; there is still capacity to be built on the 737s. He said, “Truth be told, the market is still there for all of us. For us here, we are going for the 737 because unlike other climes, that have moved on, in Nigeria we still deal with the 737classics and we believe next seven to eight years, this will still be relevant in Nigeria but we also have in mind that there are Embraer and CRJs and the truth is that operators are beginning to understand the usage of the right aircraft for routes. “Here, the longest flight is Lagos –Abuja, which is 50 minutes and this is what a Dash-8 can fly in 55-60minutes, so why do you need a Boeing 737 when it burns twice the fuel of a Dash-8 and so it does not make economic sense.”

Virgin Atlantic launches new service between London Heathrow and Tel Aviv

irgin Atlantic has announced that it will be launching flights between London Heathrow and Tel Aviv, Israel with the first flight taking place on 25th September 2019. Flying daily between London Heathrow and Tel Aviv Ben Gurion airport, the five hour flight will operate on an Airbus A330-300 aircraft boasting Virgin Atlantic’s Upper Class, Premium and Economy Light, Classic and Delight offering. Offering over 180,000 seats each year, the new service will offer seamless connections and a consistent long haul on-board experience for those customers connecting from Tel Aviv seamlessly via London Heathrow to destinations throughout North America across both the Virgin Atlantic and Delta networks including New York, Seattle, Las Vegas, Los Angeles and San Francisco. As well as flying customers, Virgin Atlantic will offer 20 tonnes of cargo capacity on each flight. This fast cargo service will offer new opportunities for companies looking to export and import goods such as fresh produce and high tech products between Israel and prime markets in the UK and US. Shai Weiss, Virgin Atlantic CEO commented: “2019 marks the start of a new phase of growth for Virgin Atlantic as we work to achieve our ambition to become the most loved travel company. Tel Aviv represents a fantastic opportunity for us - Israel’s economy is booming and as one of the world’s leading tech hubs we’re anticipating many business travellers and entrepreneurs flying between Tel Aviv and the UK. “We also see a significant opportunity to increase competition in the US – Tel Aviv market, using the strength of our trans-Atlantic Joint Venture with Delta to offer customers from Tel Aviv a wide range of US destina-

tions connecting through London Heathrow including New York and San Francisco. “I’m also thrilled to introduce this new destination to our leisure customers and I know it’s somewhere they’ll love to visit. Renowned for its cultural sites and with UNESCO recognised architecture, Tel Aviv also boasts beautiful beaches, a buzzing artistic and nightlife scene, incredible food and is a great base to explore the tourist destinations of the region including the iconic historical city of Jerusalem, Nazareth, and the Dead Sea”. According to Yariv Levin, Tourism Minister, “The entry of one of the world’s leading airlines into Israel is another expression of confidence in the Israel tourism product. The revolution that we have implemented in the Ministry of Tourism in recent years is bearing fruit with recordbreaking numbers of incoming tourism to Israel. The new flights will be integrated with the marketing campaign in Europe, which highlights Tel Aviv and Jerusalem. I am convinced that, with the entry of Virgin Atlantic into Israel, we will see continued growth in incoming tourism from the UK.” Sharon Bershadsky, director, IGTO for the UK and Ireland: “We’re thrilled with the launch of the new flights and Virgin Atlantic’s confidence in the Israeli product. The ‘Two Sunny Cities, One Break’ campaign has been very successful in showcasing Tel Aviv and Jerusalem and we’re proud of our continued commitment to working with the travel trade industry. “The IGTO has been working with Virgin Atlantic to showcase the business and tourism potential of launching this new route and we looking forward to working together in order to promote Israel as a leading tourist destination.”

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Thursday 14 February 2019

Invest-in-aba

Innovation takes front seat at Aba shoe clusters

made up of shoes, trunk boxes and belts. It provides employment for tens of thousands, with many specialising in different stages such as designing, patterning, cutting, skiving, stitching, peeling and finishing. It is made up of clusters such as Powerline, Imo Avenue, Bakassi, Aba North Shoe Plaza, Omemma Traders and Workers, ATE Bag, and Ochendo Industrial Market, comprising input supplers, among others. However, the industry is in thriving in chaos as the majority of shoe makers in the industrial city are poorly structured and are not

registered at the Corporate Affairs Commission. Exports are made informally, making tracking and planning difficult. “We need funding to get better machines,” said Ken Anyanwu, secretary of the Association of Leather and Allied Industrialists of Nigeria (ALAN), who produced Nigerian armed forces shoes in 2016. “We are already struggling to meet demands. Imagine what happens when we have the needed machines,” Anyanwu said. He said this is why the majority of Aba shoe makers were not meeting demands

and were over working themselves once orders were placed. Nigeria and Ethiopia have things in common in terms of leather. Ethiopia is home to 56 million cattle, which provide ready raw materials to shoe makers. But Nigeria has 131 million cattle, goats and sheep, according to the Federal Ministry of Agriculture (2011 figures). Nigeria also has more shoe makers. Ethiopia is the second most populous (with 105 million people) after Nigeria with almost 200 million people. More investments are going to Ethiopia. Between October and December 2016, Ethiopia attracted over $500 million in FDI to the shoe and leather industry. About 124 investors willing to invest $3.5 billion indicated interest to swell the export-oriented shoe market, according to the Ethiopian Investment Commission (EIC). Ethiopia exported $33.7 million worth o f f o o t w e a r p ro d u c t s, mainly to the United States in 2015, one million lower than the preceding year. Through the African Growth and Opportunity Act (AGOA), the US-Africa trade law that allows duty-free and quota-fre e access into the US market, Ethiopia shoe exports jumped from $630,000 to nearly $7m between 2011 and 2012, a more than tenfold increas e, according to statistics from USAID.

to this, the presence of foreig n manufacturers with their standard equipment has further heightened the problem. In 2017, governor of Abia State, Okezie Ikpeazu, signed a $1.5 billion deal with Huaijan Group, a Chinese shoe manufacturing firm. This was met with fears from those in the industry as they felt that it would cause a further decline in the local’s businesses. Aba still remains one of

the most active industrial hubs in the country, bu t t h e i n f ra s t r u c t u re problems makes it difficult to exert as much influence as it should in the market. The minister for power works and housing Babatu n d e Fa s h o la believes that there is a need to build infrastructure in the country in order to foster prosperity and development in the country. In the recently released GDP report by the National Bureau of

St at i s t i c s, t h e n o n - o i l sector contributed 92.94 percent to real GDP in the fourth quarter of 2018, which reflects the importance of the non-oil sector. C o n s i d e r i n g the incumbent administration’s efforts in diversifying the economy, more attention should be paid to the shoe making industr y while the infrastructure issue should be addressed adequately.

ODINAKA ANUDU

ba shoe makers are becoming increasingly innovative, producing more 1,000 shoe and bag designs demanded locally and across the world. “We are producing a lot of designs here,” said Kingsley Igwe, managing director of Igwe & Sons Shoes. “We have created designs for Europeans, Chinese and Americans,” he said. “What happens is that people come in from many countries with their designs and we produce exactly what they need.” He explained that Aba designs were in high demand in Africa, being among the most innovative in the world today. One million pairs of shoes are produced in Aba each week by shoe and bag makers that number more than 80,000. The industry is estimated at N120 billion, contributing significantly to the gross domestic product (GDP). They produce military shoes, special sandals for school children and other specialised products. T r a d e r s f r o m We s t African neighbours storm the industrial city every week to buy different product designs, with Southern African schools placing orders directly from the shoe makers.

“This is the power house of shoe-making in Africa,” said Chinatu Nwagbara, coordinator of Made-in-Aba Project, who produced shoes for Olusegun Obasanjo in 2016. “The level of e nt re p re n e u r s h i p a n d innovation here is second to none. I have produced shoes for foreign firms and they said the products equalled what they got from Italy,” Nwagbara said. He explained that despite having low-tech machines, many leather makers were still producing a large number of products each week.

Aba shoes are already online, with the likes, of Gada Africa, Jiji.ng and abanaijamade.com.ng, among others, handling marketing and distribution of those shoes, including belts and trunk boxes, after online orders are taken. Online shops take 20 to 50 percent cuts from sellers, BusinessDay gathered from the shoe makers in Aba. “We have built partnership with local and some international logistics handling companies,” said Ben Chiobi, a retired air vice marshal, who is founder of newly birthed Gada Africa. The leather industry is

Infrastructure deficit still a challenge for Aba shoe makers Gbemi Faminu

ba shoe makers may be thriving, but the N120 billion industry is stymied by infrastructure challenge which is hurting its potential. “Roads in Aba are becoming better, but they need to improve,” Adiele Adigwe, a shoe-maker in the industrial city, said. Roads in Aba are still poor while power is not readily available. The impact of this is that the majority of Aba shoe makers are using power generating sets to power their factories. Shoe makers in Aba say lack of electricity, inability to access state-of-the-art machines that will aid production, poor road network and many others are hurting production in the industrial city while

raising production costs. “For instance, we have no money to procure hi-tech machines. The banks are not interested i n t h e i n d u s t r y ,” K e n Anyanwu, secretary of the Association of L eather and Allied Industrialists of Nigeria (ALAN), told BusinessDay in Aba. Infrastructure is very important for any business to thrive. Making footwear can be easy with the use of sophisticated machines a n d p ro d u c t i o n t o o l s. Absence of infrastructure, h o w e v e r, m a k e s production difficult and hurts capacity to create jobs and boost the gross domestic product (GDP). The Manufacturers Ass ociation of Nig er ia (MAN) believes that infrastructure is the biggest fillip to factories, as absence of it frustrates production and hampers

employment creation. There is also no connecting railway line from Aba to the northern Nigeria where shoes, bags and trunk boxes are needed. Analysts say poor infrastructure in Aba lowers the level of innovation and output and hampers capacity to meet the demand. The result of this is the domination of foreign products. Also, the raw materials needed for production are not always readily available, leading to importation with an attendant implication on production costs. The manufacturing sector contributes about 8 percent to the Gross Domestic Product (GDP) and this is down to dwindling infrastructure, notably power. In addition

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LegalBusiness BD Business Law Industry Report Practice Intelligence Partnerships

Meter asset providers urge govt to ease regulations on ROI As electricity continues to elude Nigerians, the federal government has once again introduced an initiative that would tackle the inherent challenges in Nigeria’s metering system. This is the Meter Asset Providers (MAPs) initiative. The initiative will amongst other things, encourage the development of independent and competitive meter services; eliminate estimated billing practices in Nigeria; attract private investment to the provision of metering services; and close the metering gap through accelerated meter roll out. With the initiative officially kicking of next week, BusinessDay Law Editor, THEODORA KIOLAWSON, speaks with Energy Lawyer and Perchstone & Graeys, Partner, Tolulope Aderemi about regulatory issues surrounding metering system in Nigeria and the task ahead of the MAPs.

for the supply and installation of meters. It is important that I add that this is another laudable initiative as successful licensee only require the Regulator’s approval after having satisfied provisions of the Metering Code, Guidelines for Certification of Metering Service Provider and a clear ability to deploy cutting edge technology (for smart metering) and ability to finance the supply and installation of these meters.

EXCERPTS...

n recent times, the Federal Government has initiated many initiatives to improve power supply to Nigerians and one of these methods was by the privatisatization of the Power Holding Company of Nigeria (PHCN). It does appear this has not yielded much result. How so? Thank you. I will not say it has not yielded much results. Rather, I will say that the 2013 privatization exercise requires baby steps and a deeper understanding of how the market/value chain operates to determine the level of consumer expectation and obligation. What is ‘the level of consumer expectation/obligation’? The 2013 privatization exercise heralded high expectation of closing the power gap in Nigeria. Unfortunately, many did not know that a major part of this project lies with the consumer. By this, I mean, payment for electricity. Essentially, the value chain is designed in a manner that the consumer of electricity pays for power generation, transmission and distribution. If a consumer fails to pay for power consumption, this automatically affects the entire value chain. Although, this obligation was meant to mature in phases but that was the ultimate plan and the way to do it was/is by adequately metering the consumers. Good. So this brings me to the next question. What is government doing to ensure

Tolulope Aderemi, Partner, Perchstone & Graeys

that every customer is metered in Nigeria? The simple way to respond is that, government is doing quite a lot in this regard. Although it was reported that 6 (six) in every 10(ten) users of grid generated electricity supplied by the 11(eleven) Electricity Distribution Companies (Discos) in Nigeria, thereby creating a wide metering gap, notwithstanding that this is about 9 (nine) years into power privatization, government is doing quite a lot to close this gap. Let me start with the enactment of the Electric Power Sector Reform Act (EPSRA), 2005, the subsequent privatization of the power assets in 2013 and the several initiatives introduced by the Regulator to adequately provide meters, ensure efficient billing thereby eliminating estimated billing, of the 11 Discos in Nigeria (with a collective customer base of about 8million), we understand that only about 3.5million plus have been metered while about 4.7million or thereabout are yet to have meters. This forms about 57% of unmetered customers in Nigeria. This was as at Q4, 2018. As one who regularly provides legal advisory services to the market, I know government has introduced many initiatives to close this gap, but funding continues to be a challenge. Can you briefly speak on one or two of these initiatives? I will start with a reference to the Performance Agreement between

the Bureau of Public Enterprises (BPE) and the investors in the 11 Discos. This provided for the installation of end-use meters based on agreed targets thereby causing a reduction of their AT&C losses, a breach of which may occasion the termination of the Agreement. Secondly, when it became clear that the Utilities appeared to have been over-valued, power was not sold at a cost-reflective tariff and the and the Discos did not make the expected revenue, it began to engage government on the best way to continue to close the power gap. One of such, again was the introduction of the Credited Advance Payment for Metering Implementation (CAPMI) Scheme which required that customers (who are able) to pay for meters and be paid back in form of energy credit. This was a customer self-finance initiative. In my experience, this initiative yielded very good results and appeared to have closed the metering gap (in a little way) but was discontinued for reasons we are all together not clear about. I must say however that, with the discontinuance of CAPMI, government has also birthed another initiative, the Meter Asset Provider (MAP) initiative. Very interesting! It appears (from your analysis) that metering is a major challenge in providing electricity to Nigerians. Can you please explain in some detail the new MAP

initiative? (Laughs). It doesn’t appear. It is. Collection in the Nigerian Electricity Supply Industry (NESI) is a major component of electricity supply in Nigeria and if that process is inefficient, it automatically affects the entire chain, as I had mentioned before. Now, the MAP initiative has 4 (four) main objectives; to encourage the development of independent and competitive meter services, to eliminate estimated billing practices in Nigeria, to attract private investment to the provision of metering services and to close the metering gap through accelerated meter roll out. Of these objectives, the elimination of estimated billing system is very important. As you may be aware, the Lower Chamber of the National Assembly recently passed an amendment to the Electricity Act (the Electricity Power Reform Act (Amendment Bill) 2018) which criminalizes the issuance of estimated bills based on guess-estimates and/or arbitrariness. The law also forbids DisCos from disconnecting customers who has not been provided a meter after 30 days of duly applying for it. Different fines and prison terms have been spelt out for failure to comply with the provisions of this new law, including a one-year jail term and N1 million fine for defaulters. Essentially, both the DisCos and Eligible Customers (under the Eligible Customer Regulation) can now approach the MAP Licensee

This looks to me like government is now back on track and tackling the about 57% metering gap head on. Are there any challenges that you have observed under this new initiative? Quite a few and this has been brought to the Regulator’s attention. I must say the Regulator has also been proactive and attentive to issues raised and we are sure it (the Regulator) is prepared to continue to improve the process. For example, one of the immediate concerns is the re-characterization of the relationship between the DisCos/Consumers to MAP/ Consumer. Essentially, the MAPs may now be unduly exposed to the risk of non-payment by a consumer who it has no privity of contract with. Some of the Meter Services Agreement appear to be drafted in this manner and these are matters we are taking a keen look at and engaging the DisCos on. Secondly, the MAPs are also concerned about issues around tenure of financing. For example, the Regulation provides that MAPs shall provide financing of up to 10 years to customers for the repayment of their meter asset. No real and credible investor/ financiers will be prepared to wait this long. For us, a period of 10years is too long in a largely unpredictable market and absent any bank guarantees. We also believe that government should less-regulate return on investment as this may be a disincentive to investors. Government should let the market determine the return of investment and not through any cap on the internal rate of returns (IRR). While InterDisco transactions and payment settlement is also one of the concerns, a more important one for me is the availability of power supply in instalment areas. In other words, where electricity supply by the DisCos is quite low or infrequent. This will have an overriding effect on the bills issued to the consumers and ultimately on the revenue of the MAPs. These are very critical issues you have raised here. Is the Regulator aware of these and what are they doing about it? Yes, we have had stakeholder engagements with the Regulator, the DisCos and potential MAP investors and a number of these issues have been placed before it and I believe it is currently considering a number of them.

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Thursday 14 February 2019

LegalBusiness

ManU, Jose Mourinho and Ole Gunnar Solskjaer: leadership lessons for Nigerian Electricity Supply Industry Continued from last week

and artisans use.

The Way Forward- Collaboration, Empathetic Leadership and Other Lessons from Ole Gunnar Solskjaer For the NESI to truly improve, it is pertinent that policy formulation and implementation are not only for the short term but should be and be seen to be for the long term whilst also attempting to solve the immediate problems. Thus, mini-grids, solar homes systems and small-scale renewable energy solutions should complement the grid from which large-scale bulk power is transmitted rather than such being a substitute for the national grid. In taking steps for the long-term, it is germane that all stakeholders are carried along such that the current off-grid policy is not just considered as some form of cherry-picking which gives a sense of the expropriation (indirect or economic) of the franchises of the electricity distribution companies. It is the writer’s view that the Ministry of Power (as embodied by the Minister of Power) needs to keep the dialogue open so that there are more stakeholder engagements such that the current gains from a mini-grid/ off-grid perspective are not only temporary as there is nowhere in the World that people live solely or almost solely on mini or micro grids or largely on off-grid solutions. That simply isn’t sustainable so we do need a mix of off-grid and large on-grid to achieve much success. Thus, it is germane to have an integrated development strategy, that details both on-grid, off-grids, mini-grids and other technologies. It is particularly germane that

he foregoing, notwithstanding, there are several challenges in the NESI. As an example, in 2018, the national grid collapsed 12 times in 2018 and eleven of those times, the collapse was total such that there were national blackouts. It was, however, reported in the dailies that the Minister of Power had on Wednesday, December 12, 2018, stated that if Nigerians do not have electricity, the government should not be held responsible. He was reported to have stated that his role was that of providing regulations, oversight and policy. What in my view he omitted to mention is that he is also to show leadership. Leadership is in understanding that there are issues and taking a corporate and collaborative approach to resolving such problems. It is pertinent to note that every private sector led industry will succeed if regulations, oversight and policy are conducive to the private sector. If there is good government leadership in the form of having the best policies to make private enterprise conducive. It is in fact, the case that the government holds 40% equity in many of the previously government filly owned electricity utilities. The federal government of Nigeria also owns the transmission company of Nigeria, completely which then means the government does have roles (and leadership roles for that matter) to play in the sector. The transmission company of Nigeria owned national grid is regarded the weakest link in the electricity value chain. Thus, it cannot be completely true, that the government has no other role

to play apart from regulatory, oversight and policy. Beyond the foregoing, there have been several complaints about high-handedness on the part of the Minister and several electricity distribution companies have complained that the prices now being paid by consumers under the energizing economies initiative was what they sought to charge these electricity distribution companies and the Regulator, NERC working in tandem with the Ministry did not allow them charge thus, not making such a venture, profitable. Nonetheless, the Ministry via the REA went ahead with same under the same pricing regime which had not been approved for the electricity

distribution companies. There have also been accusations and counter-accusations between the electricity distribution companies and the Minister and this just reminds one of Jose Mourinho’s reign at Manchester United. There have been suggestions that the government has not allowed the market to determine the prices that electricity utilities sell power to consumers. The effect of this then, is that no one wants to invest further in many aspects of the sector beyond mini-grids which cannot truly guarantee energy security or actually support true industrialization, especially where this would include heavy equipment and heavy use of electricity beyond what small traders, market women

the Minister of Power is empathetic to the cause of the electricity distribution companies who feel that the Minister only seeks to give them a bad name, whilst also preventing them from being able to profit from their investment in the electric power sector. It is germane that their position and complaints are given the due attention same deserves without being dismissive or defensive. If tariffs are not cost-reflective, the distribution companies, like Manchester United players during the era of Mourinho, cannot be at their best and will continue to takes steps that are detrimental to the power sector. Conclusion It is thus very important that the Minister does all within his power, to ensure consistent policies, whilst also balancing the interest of investors, financiers and the consumers. No one should be made to feel left out or uncared for. The primary law in the power sector is the Electric Power Sector Reform Act and that law does make provision for ensuring that no investor is left in the cold or any business rendered unprofitable. One of such provisions is the allowance for competition transition charges amongst other sweeteners, in the NESI.

Ayodele Oni, (ayodele.oni@ bloomfield-law.com), a commercial lawyer, specializes in international energy investment law & policy and is currently advising on a number of electric power and gas projects.

YOUNG BUSINESS LAWYER

Readiness

Readiness: “The state of being fully prepared for something.”

he demands of work are changing every day and there is no gain-saying that working fast is now a critical part of working smart and advancement in your career. The skillset for quick knowledge processing and spotting opportunities is honed and does not just happen. If there is one thing I hope this piece does, it is that it makes you realise that there are gaps everywhere and it is necessary that you prepare to fill them. If you are not ready, someone else will fill it or the environment will morph to suit the realities arising. The best phrasing of the responsibility that arises in this regard is the popular scouts’ honour “Be prepared”. Very few are ready to switch up and adapt to developments. The learning curve would be so intense, they could never catch up. The reality is that speed is now a critical aspect of our work as lawyers and we have to pay attention to improve our skills in this regard. In my opinion, the biggest enemy of innovation is routine and with a rapid paced marketplace, one must be nimble to adapt quickly to new realities, own and optimise opportunities. Some skills that will come in handy and aid this

state of readiness include: • Getting the basics right quickly: Knowledge is incremental. Clear understanding of the fundamentals is the best strategy for growing knowledge. For some of us, we reach out for things we are not ready for, we aim to handle tough problems and seek to be drafted to deal with complex issues and wonder why we are not trusted in such circumstances. Being listed on transaction teams is not the goal, adding value to the team at

all times is. Knowing the basics aids quick understanding of seemingly complex legal problems and great lawyers accelerate their growth by leveraging on a sound knowledge of the basics. All the knowledge acquired in the course of your legal education will come to play at some point and you must keep improving. It is a journey of continuous learning and the quicker you are on your feet, the better the opportunities that would come your way. You do not have to be the smartest person in the room but being the most prepared is worth aiming for. • Create a learning network: Not all learning is done at the desk, teaming up with colleagues who work in the same areas that you do can be another route to quick development. One great strategy for knowledge development is to join knowledge sharing groups. Focused groups in the areas of your practice help you stay abreast of developments in your sector. Also joining masterminds (peer-to-peer mentoring groups) provide an avenue for accountability as you can stay motivated, growing alongside colleagues. You can also create one, the point is to be very commercially aware and in touch with developments by

leveraging on your professional relationships. • Be client-centric: Client centricity is an approach to doing business that focuses on creating a positive experience for your clients, in plain terms, focuses on the client; many times, young lawyers leave the responsibility arising in this regard to more senior lawyers but thinking about the value that is due to your client or putting your client first helps you allot your time appropriately, go the extra mile, extend yourself. From time to time, conducting a rhetorical survey to see how well you are serving your clients helps you evaluate and make necessary adjustments. I think this is one quick way to earn the trust of your team and your client. • Practice: Practice cannot be overrated. It is the core of success. In his book, Outliers, Malcolm Gladwell alludes that it takes an average of 10,000 (ten thousand) hours to hone differentiating skill in any venture. Imagine, if you devoted 1 hour every day to reading content on a specific subject and stayed committed to this. Muscles get strengthened from rehearsals. Rehearse your content, rehearse your speech, simulate new prob-

lems and solve them in practice, it may be the next question from a client. Practice is also the secret to speed. You go down a familiar route faster. You are quick to finish things that you have done before. In some cases, they become no-brainers. Lastly, you are on the team to add value. At some point, it is no longer what you are learning that matters but what you are giving and how quickly you get that done could initiate great opportunities for you at work and personally. Next time you are conducting a personal review, which I hope you do from time to time, one of the questions that you should ask is, how ready am I?

OYEYEMI ADERIBIGBE is a Senior Associate at Templars. She is also the current Vice-Chairman of the Young Lawyers’ Forum of the Nigerian Bar Association -Section on Business Law and the Young Lawyers’ Committee Liaison Officer of the African Regional Forum of the International Bar Association. Feedback – Oyeyemi.aderibigbe@templars-law.com; yemiimmanuel@yahoo.com.

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Reforming the business climate in Nigeria: critical changes introduced by the companies and allied matters bill, 2018 Continued from last week

• Prescription of Model Articles for adoption by companies very company is required to register an Article of Association prescribing regulations for the company, in consonance with the form and contents prescribed in the 1990 Act. However, in accordance with the provisions of sections 32, 33 and 34 of the CAM Bill, a company may elect not to register an Article of Association, in which case it will be deemed to have adopted the Model Articles prescribed in the CAM Bill for a company of its description.

• Provisions for Limited Liability Partnership (LLP) & Limited Partnership (LP) The CAM Bill creates a new form of legal entity known as a Limited Liability Partnership (“LLP”), which is to exist separately from its members as a body corporate. An LLP is unique in that it combines organizational flexibility and tax status of a partnership with the limited liability of members of a company. In an attempt to safeguard the interest of those dealing with LLPs, it is provided that company law and insolvency law shall apply to LLPs with appropriate modifications. In like manner, disclosure of significant control in a LLP is also required. The CAM Bill equally provides for the establishment of a Limited Partnership (“LP”). The unique feature of a LP is that it must, at any point in time, have at least one general partner and one limited partner. Other than this, an LP is not materially different from the common form of partnership. LPs are run by one or two partners, known as general partner(s) while other contributor(s), known as limited/ silent partner(s) provide capital but do not take part in managerial decisions. This form of business entity is the most suited for private equity (PE) funds. Notably, Lagos State, in a bid to bridge the gap in the 1990 Act created a legal framework for forming LPs through the enactment of the Partnership Law of Lagos State some years back; thereby attracting foreign portfolio investments to Nigeria. The provisions for LP in the CAM Bill has not only resolved the constitutional issue around the legislative competence of the Lagos State House of Assembly to make a law in respect of entities with limited liability but has also provided legal framework for other States of the Federation to play host to LLPs and LPs. • Reduction in Filing Fees for Registration of Charges The total fees payable to the CAC in connection with the filing, registration or release of a charge in respect of a company is prescribed, in section 223(11) of the CAMA Bill to be a maximum of 0.35% of the value of the charge or such other amount as the Minister of Trade and Investment may specify in a Gazette. This is expected to lead to up to a sixty-five percent (65%) reduction in the associated cost payable under the regime in operation pursuant to the 1990 Act. • Merger of Incorporated Trustees Under the new regime introduced by the CAM Bill (section 850), two or more associations (Incorporated Trustees) with similar aims and

objects may merge under such terms and conditions as may be prescribed by the CAC from time to time. (B). Corporate governance practice to improve within business organizations: • Disclosure of persons with Significant Control in companies Only a member of a public company is under obligation, under the 1990 Act, to disclose in writing when required, the capacity in which he holds any shares in the company; either as a beneficial owner or as a nominee of an interested person. The CAM Bill in section 119 has extended such obligation (to disclose the particulars of shareholding by notifying the company) to persons with significant control in all companies. Similarly, as provided in section 120 of the CAMA Bill, a person who is a substantial shareholder in a public company and holding (either by himself or by his nominee) shares in the company which entitle him to exercise at least five per cent (5%) of the unrestricted voting rights at any general meeting of the company, is required to disclose such holding by notifying the company within a stipulated time. This new disclosure provisions are expected to enhance transparency and prevent asset shielding as well as combat money laundering, terrorism financing and all forms of illicit financial flows by members of registered entities having limited liability. • Restriction on Multiple Directorship in Public Companies The CAM Bill in section 308 prohibits a person from being a director in more than five public companies at a time. And where any person becomes a director in more than five public companies at any time, he is required to, at the next annual general meeting of the companies after the expiration of two years from the commencement of the CAM Bill, resign from being a director from all but five of the companies. This is expected to reduce conflict of interest situations, enhance the performance of directors and improve corporate transparency. • Public companies to display their Audited Accounts on Websites In furtherance of the objective of promoting corporate transparency and accountability, the CAM Bill in section 375(6) requires each public company to keep its audited accounts displayed on its website. (C). Clear and practical framework for resolving insolvency: • Business Rescue Provisions for Insolvent Companies The CAM Bill contains frameworks for rescuing a company in distress and keep it alive as against allowing it to go into insolvency. Hence,

provisions are made with respect to Company Voluntary Arrangements (sections 435 – 443); Administration (sections 444 – 550), and Netting (sections 719 – 722). Upon coming into force of the CAM Bill, the following provisions will be in full operation: (i) A financially distressed company (or a company likely to become financially distressed) will be able to partake in a business rescue re-organization such as a Company Voluntary Arrangement and Administration, as an alternative to Winding Up. (ii) Winding Up and Receivership will be converted to Administration. (iii) While a company is undergoing Administration, there will be a suspension on the enforcement of securities, court actions, sequestration of assets, etc. (iv) A company will now be able to disclaim onerous contracts with the leave of court. (v) If it is found that certain undervalued transactions may have led to a company’s financial distress, such a company can obtain a court order restoring it to its previous position. (vi) During winding up or a re-organization, contracts for the supply of essential services may be entered into or continued on the basis that the supplier obtains a personal guarantee by the officeholder in charge of rescuing the company. The CAM Bill has also modified the conditions for Winding up and clearly set out the rights of secured creditors in Winding up. Henceforth; (i) The minimum trigger debt for bringing a Winding up petition against a company will be N200, 000 (Two Hundred Thousand Naira) as opposed to the former debt trigger of N2,000 (Two Thousand Naira). (ii) Interests/claims of holders of fixed charges will rank in priority to other claims and expenses of winding up. (iii) While a company is being wound up, only a fixed charge holder (or any other validly created and perfected security interest holder other than a floating charge holder) will now be able to enforce security, sequestrate, attach or levy execution on the assets of the company. (D) More statutory safeguards against oppression of minority shareholders: • Enhancement of Minority Protection and Shareholder Engagement There are various provisions in the CAM Bill which seek to either prevent injustice to, or further ensure justice for, minority shareholders in the events of actions of the company which are considered oppressive, prejudicial or illegal outright. In this connection, upon the CAM Bill becoming operational, the following conditions shall apply: • Restriction of the appointment of the same person as Chairman and Chief Executive Officer (CEO) of a private company.

• Full disclosure of all material facts relating to buyer-seller transactions and the existence of a conflict of interest, where it applies. • Preservation of the preemptive rights of existing shareholders where new shares are issued. • Expansion of the grounds under which shareholders can hold the Board liable for damages caused by related third-party transactions, now to include conflict of interest. • Disqualification of erring directors from continuing to serve for a one-year period, for causing loss to the company. • The requirement of a minimum of three (3) independent directors on the Board of private companies. • The courts will now be able to rescind third party transactions which are proved to be unfair or oppressive or cause economic harm to the company, in general. • It will now become mandatory to seek and receive the consent/ approval of minority shareholders whenever there is a proposed sale of more than fifty-one per cent (51%) of the company’s assets. (E) Regulation and Compliance New mechanisms for making regulations more effective, and compliance a lot easier, are introduced into the governing framework for supervising business entities. These include the following: • A more inclusive CAC Governing Board In constituting the Governing Board of the CAC, the CAM Bill provides in section 2(2)(f ) that one representative of the Nigerian Association of Small and Medium Enterprises shall be appointed by the Minister of Trade and Investment on the recommendation of the Association. This will ensure that inputs from MSMEs are factored into policy formulation at the CAC. This is expected to promote policies and regulations that are conducive to the growth of MSMEs. • Power of the CAC to initiate investigation of a company In addition to circumstances where the court orders investigation into the affairs of a company, as is the case under the 1990 Act, the CAM Bill has in section 359(2) conferred on the CAC power to suo moto initiate investigation into the affairs of a company, by appointing one or more competent inspectors to investigate the affairs of the company and report on them, where it appears to the CAC that there are circumstances suggesting that the provisions of the law have been contravened through acts of omission or commission by the company. This is expected to enhance CAC’s regulatory capacity and ensure quick intervention in the affairs of companies in the interest of the public. • Treatment of Related Associations as one The CAM Bill in section 832 provides for the treatment of any two or more associations having the same trustees to be treated as a single association. This is without prejudice to the provisions of section 850 on mergers of Incorporated Trustees. This provision is expected to facilitate effective supervision and regulation of registered association with related operations. It is equally expected to promote accountability and

enforcement of compliance, as well as establish nexus between associations for the purpose of determining control and ultimate ownership of property. • Pre-Action Notice to precede institution of court actions From the commencement of the CAM Bill, no suit shall be commenced against the CAC before the expiration of a period of thirty (30) days after a written notice of intention to commence the suit shall have been served upon the CAC by the intending plaintiff or his agent. Section 17(2) of the CAM Bill states that the required Pre-Action Notice shall clearly and explicitly state: (a) the cause of action; (b) the particulars of the claim; (c) the name and place of abode of the intending plaintiff; and (d) the relief sought. This provision is expected to reduce litigation for the CAC as faster resolution of issues is facilitated with reduced cost. COMMENT: Considering the far reaching provisions contained in the CAM Bill, its passage by the National Assembly represents a significant milestone in Nigeria’s efforts at putting in place a framework that promotes EoDB and reduces regulatory hurdles. Promoted by the CAC with the collaborative efforts of key public and private sector stakeholders supported by the Enabling Business Environment Secretariat (“EBES”), the Section on Business Law of the Nigerian Bar Association (NBA-SBL), Nigerian Economic Summit Group (NESG), the National Assembly Business Environment Roundtable (NASSBER) and leading commercial law firms; the CAM Bill is expected to receive presidential assent and become operational without further delay. Notably, substantial parts of the changes provided in the CAM Bill have been promoted and are currently being implemented as key reform initiatives of the Presidential Enabling Business Environment Council (“PEBEC”), under the series of National Action Plans on the Ease of Doing Business in Nigeria (“NAPs”). EBES was established in 2016 to implement the mandate and vision of PEBEC with fantastic outcome of moving Nigeria phenomenally twenty-four (24) places up the World Bank EoDB Index; from 169th position to 145th position globally between 2017 and 2018 as well as naming Nigeria as one of the top ten (10) most reformed economies in the world. It is also expected that the provisions of the CAM Bill would enhance the current aspiration of PEBEC/EBES to move Nigeria to a sub-100 position in the Doing Business Report which would be released in October this year.

The Grey Matter Concept is an initiative of the law firm, Banwo & Ighodalo DISCLAIMER: This article is only intended to provide general information on the subject matter and does not by itself create a client/attorney relationship between readers and our Law Firm or serve as legal advice. Specialist legal advice should be sought about the readers’ specific circumstances when they arise.

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PHOTOFILE

Pastor Ighodalo, Mr Muda Yusuf (DG, LCCI) and Ashiwaju Bisi Adegbuyi, Post Master General of the Federation.

Ugochukwu Obi (Partner, Perchstone & Graeys), Onyeka Akumah (CEO, FarmCrowdy), Ayobami Adisa (Head of Compliance, IHS Towers), Tolu Aderemi (Convener/ Partner, Perchstone & Graeys LP), Niyi Adenubi ( Executive Director, VFD Group) and Osaro Eghobamien SAN (Managing Partner, Perchstone & Graeys LP).

L-R; Ugochukwu Obi (Partner, Perchstone & Graeys LP), Osaro Eghobamien SAN (Managing Partner, Perchstone & Graeys LP), Muda Yusuf (Director General LCCI), Pastor Ituah Ighodalo (Keynote Speaker), Ashiwaju Bisi Adegbuyi (Special Guest), Tolu Aderemi (Convener/Partner Perchstone & Graeys LP) and Dr. Demola Omoegun (Moderator).

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Osaro Eghobamien, SAN, Managing Partner, Perchstone & Graeys LP.

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GARDEN CITY BUSINESS DIGEST Shell wants the elderly to join war against plastics waste menace IGNATIUS CHUKWU

t was a day with the elderly, or what Shell officials said was a way to just say; thank you to the elderly in the operational areas or the land hub. Alsom Shell Petroleum Development Company (SPDC) wants elderly persons in and around their oil fields to join in the fight against vices and war against dumping of plastics which has become a menace through plastics pollution. This is as the company has instituted an annual get-together with the elderly sourced from their host communities in the land areas. A professor and environmentalist who heads SPDC’s environment desk on consultancy, Eunice Nwachukwu, warned that plastics were threatening to become man’s latest threat due to the poison it supplies to plants and animals as well as fishes in the oceans of the world. Nwachukwu delivered a talk to

Inaugurates yearly conversation and petting of the elderly the gathering of the elderly at the Shell Residential Area on Aba Road which featured men as old as 117 years and two women aged 99 each. The Asset manager, Land Hub, Sam Ezegwuorie, said the oil giant has test-run the idea of an annual gettogether with the oldies in the oil communities who he aid had huge influence as grand fathers and grand mothers to the new generation. The manager said this being the third edition, that the company has so far found reward in the exercise especially as no one has so far died. Saying this has become an annual event, he said it is better to have rapport with the elderly persons that are usually called upon in times emergency. He unveiled mountainous bags of rice, rolls of wrappers, milk, towels, etc the oldies would carte home. One of the monarchs, an Eze, Innocent

Nkwocha, said the most striking was the medical attention coupled with tests that they were given as starters. “Some of these old women have not done any test to know their situations. One of them has high blood pressure but she never knew until now. It may till this time next year, if this programme should hold again, that she may undergo another test. Such is the fate of most of our rural folks”. He said the people were happy with the gesture to the elderly because they represent the vulnerable in the society. He said some of the elderly persons had not witnessed medical tests performed on them before. BusinessDay gathered that the beneficiaries, numbering over 40, were selected by the people, not Shell. One man was indicated as being 117 years while two women

posted 99 years each. They danced Ikwerre traditional steps and thrilled the crowd. In her talk, Nwachukwu described the environment as one’s total surrounding and said plastics pollution menace has emerged as a new threat killing humanity. She mentioned other forms of environmental abuse that cause ozone later depletion and cancer through ultra-rays, flooding, excessive heat, etc and asked the oldies if heavy rains in January was usual. She said plastic bottles do not decay in one hundred years and that they even turn to micro plastics which plants and animal absorb and die. She said humans are indirectly consuming micro-plastics too. “Plastics have killed humans and animals, causing blockages even in the ocean. Animals now eat plastics instead of normal food.

She urged people to avoid what she called single use plastics (plastics that cannot be re-used) saying they are the greater threat. Instead, she enjoined the oldies to begin to use jute bags, mugs, and non-plastic objects. She mentioned other ways in which the people destroy the environment, mentioning bush burning that scorches the surface of the earth and kills the organisms such as earth worms that enrich the soil. She said higher levels of heat in the land is caused by depletion of the ozone layer and that it allows cancer to attack man more. In an interview, she told newsmen that ban on production of plastics was not feasible in Nigeria unlike in Kenya, saying Nigeria can only encourage people to reduce use of plastics. She agreed that incineration and recycling were better ways of curbing the menace but said there is need for awareness on the matter.

How did you meet? The secrets of marriage PORT HARCOURT BY BOAT

‘

IGNATIUS CHUKWU

he question may sound simple, how did you meet your wife? A newly established but definitely fast-growing church in the Rumukwurushie area of the Garden City has developed this simple-looking question into a socio-spiritual moment and investigation that is developing into a big phenomenon and key in unlocking the cause of marriage crisis in homes. Trying to fathom how you really met your spouse could open up a floodgate of guilty conscience. When the moderator, Bro Obinna, posed this question to two couples led by Jerome Oguh and his delectable wife, Ijeoma, the hall at Eleutheria Ministries was practically on fire. Excitement, but alas, one lady slipped out of the hall and walked slowly away, head drooping. Those who looked closely said she was wiping tears away. Who knows, she is having crisis in her young marriage. Married persons in the hall and even the unmarried ones were shocked to hear that 90 per cent chances of the success of any marriage depend on ‘how they met’. In fact, good marriages start from how you met. This opens the inquiry into what you were looking for in a woman, what she wanted in a man, what values does each seeker bring to the table, etc. It shows who is rigid in expectations and who is flexible about it. One of the couples said they met casually but something happened along the line. The man said the lady wrote him a letter from a different town and that while reading this ordinary message, he saw unwritten lines which he said revealed her inner qualities. “I saw decency, I saw calm-

Jerry and Ijeoma Oguh

ness, I saw discipline, I saw honesty, simplicity, dedication and signs of burning loyalty. Above all, I saw a wife”, and the audience roared. All of this in one letter? He said he wrote back, telling her that any year he would grow to marriage level, she would be the one, the one he would come for. She wrote back saying, any day any time, I will wait. Another ovation! In a dream, they met and kissed, she disclosed, and the audience could no longer be stopped. The man shouted, “Its only in the dream oh”, but who would care anymore. What was important about this is the fact of how the man saw pieces of attributes of the kind of woman that would fit the kind of life he was to lead. He put the pieces together to form a female personality of his choice. He now desired that whoever would match that profile would be the one. She matched it, they proposed, they waited for 11 years, they married. Now, 33 into the marriage, the woman said they are still in a honeymoon. Imagine! The first son of the marriage was the moderator of the programme, the first daughter with her two sons majestically sat at the back. The last child (a boy also), a firebrand evangelist, sat close to her Adanne. The sec-

ond daughter, broadcaster, ministered in songs at the event. The man confessed that the wife was one woman ever ready to lay down her life for him. The woman said the man was second only to God worthy of her adoration. Asked to mention the key of such marriage, the man said he takes responsibility in all matters and shows respect to her. The women said his word is final in her life and the home and all external matters must be cleared by him. Great! The Oguhs (Jerry and Ijeoma) brought the spiritual search angle to it. He saw her at a Redeem Church programme just after his NYSC and the spirit told him this was the one. He made moves by contacting his pastor, a lady who understands the heart. Ijeoma, then in Winners, was told, but being a spiritual person, despite two strong offers from established men of means working oil places, she still went to God in prayers. Actually, she expected God to disqualify him, but God rather qualified him. She submitted, just as the Bible advised all wives to. This time, however, she submitted to a force higher than a husband, the Holy Spirit. Today, she is happier for it. She said she gets the best encouragement from him. He is her pillar while

“I saw decency, I saw calmness, I saw discipline, I saw honesty, simplicity, dedication and signs of burning loyalty. Above all, I saw a wife”, and the audience roared

she is the adventurous and daring type. God selected the right person for the right people. Lessons from both couples: God revealed each. To the first couple, God beamed the signals from an innocent letter; and God went to the woman in the dream. For the Oguh;s, God spoke to Jerry, and when Ijeoma prayed, God revealed him. So, in all matters, when it is time to pick a partner, look with your eyes but open your spirit mind to hear the message. God surely speaks. If you listen, you will hear. If your gaze is at thoracic adornments esp her nipples, or her derriere, and your mind is zeroing somewhere, believe you me, you will not hear when the spirit speaks or cautions. You will have pregnancy on your hands and the choice is taken away from your hands. You simply pay the price, the bride price, only to regret in battles all the days of your miserable life. Divorce? Think again. The church members were told to think again about the place of the bed in the home. It may be for lovemaking and babymaking, a place of rest and sleep, but it is actually the Court of Justice, repair workshop of the marriage. It is the place where all issues are treated; plans for the home and dispute resolution centre. No conflict is bigger than the Bed. Take all matters to the Bed, not to the lawyer, parents, even pastor. Talk in bed first, no legal fees. Last word, he said; Take your lovemaking seriously. Plan for it, prepare for it, take it step by step, and ensure that the course is complete. That creates marital bliss, the capsule that heals all previous ailments. Else, your lovemaking may only produce children but would produce no interlocking intimacy. Gaps will be created and Satan can pass through it, that is what it is always looking for in marriage, that small crack. Seal it up with consummate lovemaking. Else, disaster will come, or marriage becomes something you endure, instead of to enjoy. The size of intimacy and harmony in a marriage is proportionate to the completeness and seriousness of lovemaking and the role of your Court of Justice, the Bed. Period!

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Investing in Rivers State Industrialisation, seaports: Rivers endorse Atiku Completion of N726Bn East West Road, revival of ports, job creation, industries, economic revival, to decide Rivers votes, says Wike Ignatius Chukwu

he Rivers State government said the people of the state were in need of economic development and rapid industrial development. The state governor, Nyesom Wike, said in Port Harcourt on Monday, February 11, 2019, that infrastructure needed to develop the oil state was urgently needed and this would inform the choice of the next president. He also mentioned the need to revive the ports in Port Harcourt. Thus, when over 100,000 persons gathered on Monday from the 23 local council areas in the state to the newest stadium in the state capital to listen to PDP Presidential Candidate, former Vice President Atiku Abubakar, they ended up endorsing the former VP. The Rivers People who took over the Adokiye Amiesimaka Stadium in Port Harcourt and its environs displayed several PDP campaign promotional materials, sang pro-Atiku and Pro-Wike songs to emphasise their preference . Governor Wike assured that Rivers people will vote for Atiku Abubakar. He said Rivers people believe in the capacity of Atiku Abubakar to develop the country. Governor Wike said that PDP represents the light the country is craving for, while APC is neck deep in darkness. “PDP is light; PDP means freedom. Rivers people have chosen to vote light and freedom, hence all our votes are for the PDP. Rivers State is Atikulated”. Former Rivers State Governor, Celestine Omehia, said the choice of Atiku as PDP presidential candidate was divine. He said God has chosen Atiku Abubakar to solve the problems of Nigeria. Rivers State PDP Chairman, Felix

Atiku in PH, Jonathan (left) helps to welcome him

Obuah said that Rivers people will vote 100 percent for Atiku . He said that rally is a rehearsal for the victory party after the election of Atiku as the President of the country. Atiku Abubakar, in his address, assured that his incoming administration will address the infrastructural needs of Rivers State and the South-South. He announced that the ports in Rivers State will be revived for the purpose of job creation, economic growth and the massive development of the state. The PDP Presidential Candidate noted that the incoming administration will complete the East-West Road started by the Obasanjo/Atiku administration, but abandoned by the failed APC Federal Government. “APC has not done anything for Rivers State, South-South and the Niger Delta”. Atiku Abubakar vowed to pro-

tect the constitution, saying he will uphold the rule of law, separation of powers and checks and balances. “I will protect the constitution. I will not interfere with the National Assembly because I believe in the Separation of Powers. I will not interfere with the judiciary because I believe in checks and balances. I will uphold the rule of law “, he said. He condemned President Muhammadu Buhari for preaching violence in Zamfara State. “We are not going to allow anyone to knock our heads and make us fight in this country. We want peace, we want development, we want jobs. We are not ready to fight ourselves again. Any leader who has come to instigate to fight, we will use our ballot papers to throw them out. Buhari must go “, he said. Atiku Abubakar described Governor Wike as a true leader and

devoted politician who has transformed Rivers State and defended the survival of the PDP. Former President Goodluck Jonathan declared that Nigerians are working for the election of Atiku Abubakar because he has the capacity to lead the country out of its stagnation. He said: “In 2015, I mentioned that the choice before Nigerians is either to move forward or backwards. Within the past four years, all the indices of development, we have not made progress in any of them. “I believe that you all know that as a nation, we cannot continue to stay where we are. We believe that the only person that can get us out of the woods, is Alhaji Atiku Abubakar”. Jonathan said that Atiku will move Nigeria forward and will not discriminate against any section of the country. He said that Atiku will

treat all geo-political zones fairly. PDP Vice Presidential Candidate and Former Anambra State Governor , Mr Peter Obi said only Atiku Abubakar can restore the Niger Delta because he believes in restructuring. He noted that Atiku Abubakar will create jobs and make the country to start working again. Senate President Bukola Saraki declared that Atiku Abubakar will develop Nigeria and drive away poverty. He urged Nigerians to defend their votes. PDP National Chairman, Prince Uche Secondus said despite the desperation of the APC, Buhari is heading to a woeful defeat because of his failure in governance. He, however, stated that the Rivers State Governor, Nyesom Ezenwo Wike on the strength of his performance, will be re-elected for a second term. Wife of the Presidential Candidate, Jennifer Atiku said Rivers people are fully Atikulated and would come out to vote Atiku Abubakar. Sokoto State Governor, Aminu Tambuwal said that the North West Zone has resolved to vote out failed President Muhammadu Buhari because he promotes prison yard democracy and retrogression. Highpoint of the occasion was the formal withdrawal from the governorship race by 57 Governorship Candidates who endorsed the re-election of Governor Wike. Spokesman of the Governorship Candidates, Pastor Samuel Ihunwo said that their decision was premised on the outstanding performance of Governor Wike. Gov Wike received the Governorship Flag with the declaration that he will lead PDP to victory in the state. Ace Musicians, Davido and Duncan Mighty thrilled the crowd with their songs.

NDDC to drive a new vision for Niger Delta – New boss

he Acting Managing Director of the Niger Delta Development Commission (NDDC), the professor, Nelson Brambaifa, says the new dawn at the Commission is an opportunity to do things differently for the development of the Niger Delta region. Officials of the Rivers State government who seem to be versed in how governments operate with funds, have countered, saying the timing of release of funds must be for political missions. Brambaifa spoke during a reception in honour of the NDDC Acting Executive Director Finance and Administration (EDFA), Chris Amadi, at the Palace of the chairman of Supreme Council of Ikwerre Traditional Rulers, the Eze, Blessing Wagor, Nye-Nwe Ali Isiokpo. The NDDC CEO described the Acting Executive Director Finance and Administration as a worthy, brilliant and smart son of the Niger Delta region. “You can be sure that he would perform creditably in his

new assignment,” he assured. Responding, Amadi assured that the executive management led by Bambaifa would deliver faithfully on the mandate of the NDDC, stating that it would endeavor to enlist the support and cooperation of all stakeholders in the Niger Delta region. The Acting EDFA stated that NDDC as a regional development agency had been undertaking development projects and programmes for the benefit of the people of the region. He added: “I can assure Ikwerre people that we will do our best within the time available to ensure that everyone got their due.” Amadi said that the NDDC Acting Managing Director had asked him to raise the issue of vandalized power infrastructure in Isiokpo at the next executive management meeting. He assured that the light situation in Isiokpo and other Ikwerre communities would be treated with dispatch. He said further: “We are request-

ing Ikwerre people to identify areas that require intervention from the NDDC as soon as possible, so as to assist us to ensure equitable distribution of infrastructural development across the region. “The Acting MD is from Bayelsa State, the Ag. Executive Director Projects is from Delta State and I am

Nelson Brambaifa

from Rivers State. What that means is that we will ensure that no state in the region is marginalized or short changed.” Amadi said that as the new management team came on board, it realized that there were school desks and chairs that were already delivered to the NDDC for distribution to primary and secondary schools across the region. Consequently, he said, the management directed the immediate distribution of the desks and chairs for schools in Rivers State. According to the EDFA, the first schools to benefit will be those in Akpor kingdom. “We will continue in that vein to cover other communities in Rivers State since the Commission had already distributed the items in other states in the region.” He said. Speaking on behalf of the Isiokpo kingdom, Eze Wagor, said the appointment of Amadi as NDDC EDFA was the first real “patronage” of an Isiokpo son since 1999. For this position of trust extended to our son,

he declared: “We shall reciprocate and continually show appreciation and support to the Federal Government of Nigeria.” The Eze appealed to the NDDC to step up infrastructural development in the Ikwerre Local Government Area. He particularly pleaded for the rehabilitation of the vandalized electricity supply to Isiopko from the national grid, noting that “the entire area has been without power supply for more than 18 months.” Isiokpo people had earlier organised a thanksgiving service at St. John’s Anglican Church, Adanta, Isiokpo in honour of Amadi. In his sermon, Rev. Canon Benedict Eke regretted that the political climate in Nigeria was unsuitable for Christians, considering the destructive activities and crises being witnessed across the country. He remarked, however, that Christians should not be discouraged from participating in politics because God was the author of government.

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Tapping the opportunities in the rising consumption of rice in Nigeria ADEMOLA ASUNLOYE

of rice are imported to meet demand at a huge cost in hard currencies. Rice consumption in Nigeria Nigeria is currently the largest rice producing country in Africa with rice paddy production of 6 million metric tons contributing 0.82 per cent to the rice paddy production worldwide on 3.2 million hectares of area harvested across the country. Whereas milled rice production amounted to 3.78 million metric tons by year end 2018, consumption of rice by far surpassed production which is at 6.9 million metric tons, of which 43 per cent which amounted to 3 million metric tons of the staple was imported in the last year. The main rice producing states in Nigeria are: Ebonyi, Kaduna, Kano, Kebbi, Katsina, Sokoto, Niger, Benue,

Taraba and Borno, others states includes Enugu, Jigawa, Zamfara, and Cross River. Other states such as Ogun, Anambra, Enugu, Imo and Lagos are beginning to cultivate there lands for rice farming. Since 2010, paddy rice production has been on the increase in the country. Within a 9-year period from 2010 to 2018, paddy rice production steadily increased from 4.5 million metric tons to 6.3 million metric tons in 2015 leading to 4.2 per cent increase from the previous year but with exception of 2012 when production increased by 17.8 per cent to 4.6 million metric tons in 2011 but declined by 11.25 per cent in the following year. Production further decreased by 4.1 per cent from 2015 to 6 million metric tons and since then remained at the quantity till 2018. The consumption of rice in the country has continued to surpass other cereals in the country within the same period. Consumption of rice has remained at an average quantityof 6.06 million metric tons and an average increase of 262 thousand metric tons

with an average growth rate of 4.32 per cent within the last 9 years. At the same time, rice importation oscillated from 2.6 million metric tons in 2010 to 2.1 million metric tons in 2014 but with a decline of 34.4 per cent by 2013. More of the staple was being imported each year from 2015 to meet up with the high consumption of the citizen as it increased from 2015 by 42.9 per cent to 3 million metric tons in 2018. As increase in rice production is a direct consequence of increase in harvested area of rice, and the industry continued to witness expansion in cultivated land mass. This implies that rice farming is gaining more territory within states in Nigeria. Harvested areas of land for rice have expanded over the last decade. At the end of 2018, a total of 3.2 million hectares of land were already cultivated for rice in Nigeria. According to the statement made by the Minister of Agriculture and Rural Development, Audu Ogbeh in 2018, he exclaimed that there was reduction in the quantity of rice imported into the country and through the measures

put in place the country now has the capacity to save about $5 million a day. Conclusion There has been corresponding increase in production, consumption and importation of rice even as population growth surges. The constant increase in importation of the staple within the last 3 years is an indication that Nigeria’s capacity to produce rice has not been able to meet growing consumption of the staple. Hence, Nigeria is far from reaching self-sufficiency in rice production as the table below shows. Until importation of rice begins to reduce, only then can we say that rice production is starting to yield fruit. The importation can only reduce when the youths are ready to tap into the opportunities in the rice value chain in the country. The LAKE rice project for instance, has produced a number of millionaires in the country. This article is an excerpt from the forth coming “Rice Industry Report” from BusinessDay Research and Intelligence Unit (BRIU). 12734BDN

ore than a n y w h e re else in the world, rice, the most widely consumed staplefood in the world dominates overall crop and overall food consumption (measured by the share of rice in total caloric intake) in Asia.Nearly 640 million metric tons of rice is grown in Asia, representing 90 per cent of global production. Sub-Saharan Africa produces about 19 million metric tons and Latin America some 25 million metric tons. What distinguishes Asia from the rest of the world is its great dependency on rice for the majority of the population. Accordingly, the world’s largest rice producers are China, 142.2 million metric tons and India, 109 million

metric tons whereas both countries showed a considerable large consumption of the staple amounting to 240.4 million metric tons. India was the largest exporter of rice in the world as in 2018, it exported 13 million metric tons of rice, which accounted for almost 26.3 per cent of the total global rice exports of 49.5 million metric tons. Despite the huge production of rice in China, it is the largest importer of rice with imports amounting 5.5 million metric tons in 2018. During the past three decades, rice has witnessed consistent increase in demand and its growing importance is evident in the strategic food security planning policies on rice by many countries. With the exception of a few countries that have attained selfsufficiency in rice production, rice demand exceeds production and the large quantities

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How productive were states in the 3rd quarter of 2018? TELIAT SULE

he 36 states and the Federal Capital Territory (FCT) Abuja, generated N843.9 billion as internally generated revenue (IGR) between January and September 2018, an increase of 45 percent over N580.7 billion made in the first half of last year. When the IGR is disaggregated by sources, 61 percent of it came from PAYE; 14 percent from other taxes; 4 percent from direct assessment; 2 percent from road taxes while 18 percent came from MDAs. However, there is a marked difference in the way each state performed when evaluated with parameters such as PAYE, direct assessment and MDAs. FCT got 94 percent of its IGR from PAYE. Nassarawa earned 93 percent of its IGR also from PAYE. It was 86 percent in Bayelsa, 81 percent in Bauchi, 78 percent each in Akwa Ibom, Ekiti, Niger, and Katsina states; 74 percent in Delta; 68 percent in Benue, and 62 percent each in Lagos, Adamawa and Gombe states. Taraba, Ondo, Jigawa, Abia and Kwara states realised the least amount of their IGR from PAYE. Taraba and Ondo states realised 40 percent each of their IGR through PAYE. Jigawa got 38 percent of their IGR from PAYE just as Abia and Kwara got just 37 percent and 27 percent of their IGR from PAYE. Other states with above high proportion of their IGR from PAYE include Kogi, 59 percent; Osun, 58 percent; Ebonyi, 57 percent; Kebbi, 56 percent; Yobe, 55 percent; Borno, 54 percent; Zamfara and Anambra states, 52 percent each and Sokoto, 51 percent. Other states have the proportion of their IGR from PAYE less than 50 percent.

Source: NBS, BRIU

From direct assessment taxes, Kebbi state topped the chart having realised 28 percent of its IGR from this source. Direct assessment is a method adopted to tax self employed individuals. Oyo State earned 19 percent of its IGR from direct assessment while Imo and Zamfara states raked in 17 percent and 11 percent of their IGR from the same source respectively, while

others were less than single digit. Why would Kebbi State generate most of its IGR from direct assessment chart? We trace this to the revolutions going on in its agricultural sector. The rice value chain in Kebbi State has recorded a number of successes of which one of them is the collaboration with Lagos State that produced the LAKE rice

project. Through this project, life has been injected in the businesses of the self employed, resulting in a significant upward movement in income generation, as a result of which close to N150 billion was realised as revenue from the rice value chain in 2018. In addition, rice farmers in Kebbi cultivated over 400,000 hectares of land involving about 200,000

farmers, with the support of the Central bank of Nigeria (CBN) through its Anchor Borrowers Program (ABP). The states with the least proportion of IGR coming through direct assessment are Gombe, Kaduna, Rivers, Ebonyi, Enugu, Cross Rivers, Akwa Ibom, Plateau, Delta, Kogi, Nassarawa, where each got just 1 percent while Jigawa and Yobe had zero percent each. Kwara State’s MDAs accounted for 59 percent of its IGR, and that was the highest in the country as at the end of the third quarter of 2018. MDAs in Taraba generated 55 percent of the state’s IGR, meaning that only those two states generated over fifty percent of their IGR through their MDAs. Forty-six (46%) of Kaduna’s IGR came through its MDAs; 40 percent in Abia; 39 percent in Enugu; 37 percent in Ondo, while Kano and Yobe states generated 36 percent each of their IGR through their MDAs. The proportion of IGR from MDAs was just a single digit for Bauchi and Sokoto, 8 percent each; Rivers, 4 percent; Akwa Ibom and Bayelsa, 4 percent each; Niger, 3 percent; Nassarawa, 2 percent. Sokoto, Yobe, Zamfara record the most growth in IGR By the end of the third quarter of 2018, the national growth rate in IGR was 45 percent. IGR growth rate in Ekiti State was at par with the national growth. The state generated N3.97 billion in Q3 2018, representing 45 percent increase over N2.74 billion it realised at half year 2018. Twenty-two other states outperformed this national benchmark while 14 others underperformed the national average growth rate in IGR among the 36 states and FCT. Sokoto State garnered N13.4 billion IGR in Q3 of last year, which amounted

to 137 percent increase over N5.65 billion the state realised as at half year 2018. It was the only state that recorded three-digit growth in its IGR. Yobe State increased its IGR by 78 percent during the period, from N1.62 billion at half year to N2.89 billion in Q3 of last year. Zamfara, in spite of the incessant banditry, increased its IGR by 68 percent from N2.66 billion to N4.45 billion during the period just as Kwara State’s IGR rose by 59 percent. The states below the national growth rate of 45 percent in IGR are Lagos and Delta, 44 percent each; Abia and Adamawa, 43 percent each; Nasarawa, 42 percent ; FCT, 40 percent; Benue, Kano and Rivers, 38 percent each; Kaduna, 37 percent; Niger and Enugu, 34 percent each, and Cross River, 33 percent. Only Ebonyi, grew its IGR by just 3 percent between the second and third quarters of 2018. The states are further divided into seven regions, with Lagos State treated as a region on its own. From the N843.87 billion IGR, Lagos State generated 34 percent or N283.5 billion during the period. SouthSouth generated N189.2 billion to account for 22.4 percent of the IGR made by states and FCT in Q3 2018. South West states, excluding Lagos made N107.3 billion to account for 12.7 percent of the Q3 IGR. The North Central states plus FCT realised N103.2 billion for which it accounted for 12.2 percent of the entire IGR. The North West, South-East and North East realised N80.9 billion; N52.9 billion and N26.9 billion to account for 9.6 percent; 6.3 percent and 3.2 percent of the total IGR made by all the 36 states and FCT by Q3 2018.

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38 BUSINESS DAY NEWS Beyond peace accords: Nigeria needs... Continued from page 1 Since Nigeria’s independence, elections in Africa’s biggest democracy have been

marred by violence. During the early 1960s, Operation Wetie (English: soak him with petrol and set him ablaze) thugs set ablaze rivals’ properties with petrol and embarked on wanton killings as Ladoke Akintola and Obafemi Awolowo were embroiled in a protracted crisis. This crisis eventually led to the first military coup in Nigeria in 1966. Every election since then has been marred by pockets of violence or wholesale slaughter of opponents. Businesses have been destroyed, investors have fled with their money and Ghana, with less people than Lagos, attracts more foreign direct investments than Nigeria. Against this backdrop, the signing of a peace accord seems important. For the second time in two months, the key contenders in Nigeria’s February 16 vote have signed a peace accord which commits their political parties to peaceful elections and a non-violent transfer of power in the country, but that in itself is incapable of curbing violence. For this symbolic gesture to have meaning, the actors must commit to violence-free elections. They must be statesmen who rank the nation’s unity higher than their narrow ambitions.

While for President Jonathan was criticised for running a weak government, he immortalised his name by ceding power when preliminary election results indicated he would lose. Before his supporters could incite violence, he conceded to his challenger, saying his ambition was not worth the life of any Nigerian. This took the winds out of the sail of the violently disposed. The incumbent who benefitted from the peace accord with Jonathan was not that charitable in 2011 when his supporters went on a killing spree in the north. A government panel indicted him for making provocative remarks which played a role in the bloody violence that led to the death of 10 members of the National Youth Service Corps (NYSC) and hundreds of others after the presidential polls. The Sheikh Ahmed Lemu-led Panel, in its report, said Muhammadu Buhari’s statement to his supporters that they should guard their votes may have been misconstrued to mean they should perpetrate heinous crimes. Buhari did nothing to rein them in and since violence often spills out of control, he too was a victim of the violence as his possessions were destroyed. It is fear of violence that sees foreign investors pull their funds from the stock market precipitating a fall before general elections. Many

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foreigners and wealthy Nigerians fly out of the country and millions shun polling booths due to fear of violence, thereby ceding political office to thugs. The stakes are much higher this time around because the economy is in the gutters. This is also Nigeria’s only elections where rather than personalities, it is a contest of ideas – market-driven economy or a socially-inclusive one. Add rising poverty, evaporating middle class and fight about how to fight corruption, it gives a fine brew of high, octane expectations. Already, battles are being fought on social media by supporters of both parties. Lies are being deodorised and a campaign of calumny is being run against the personalities of both candidates. Unless the candidates rein in their own people, their supporters’ latent capacity for violence will eventually spill into the streets. This is why international agencies have been calling for a peaceful conduct of the elections because there is life after elections. In 2019, the two key presidential candidates are from the north, the section of the country which though producing the most rulers is the least developed, the most religious yet the most volatile, the worst educated yet the most politically fervent. This combination is as lethal as it is fortuitous depending on what the candidates want to make of it by their actions and inactions.

Godwin Obaseki (m), governor, Edo State; Yinka Omorogbe (2nd r), attorney general and commissioner for justice, Edo State; Mohammed Babandede (2nd l), comptroller-general, Nigerian Immigration Service (NIS); J.A Amadu (l), assistant comptroller-general, Zone G, Benin, and Eniolorunda Raphael (r), state comptroller, NIS, during a one-day specialised training course themed ‘How to Bridge the Gap Between Investigation and Prosecution’, at the Banquet Hall, Government House, Benin City.

Despite improved capital importation... Continued from page 1

which accounted for 70.20 per-

cent or $11.8 billion of total capital importation in the period. The report, however, revealed that FDI still accounts for miserable 7.11 percent or $1.19 billion of total capital imported in 2018, close to the same amount the government raised in a single Eurobond issue of $1 billion on February 9, 2017. On a year-to-year basis, FDI fell 58.75 percent in Q4 2018 to $156.08 million, from $378.41 million recorded a year earlier, while portfolio investment into the country dipped by 59.89 percent to $1.39 billion, from $3.48 billion recorded in the same period of 2017. Nigeria’s FDI dropped to $156.08 million in Q4 2018, signifying a 70.59 percent drop when compared to $530.63 million recorded in the previous quarter, while portfolio investment was down 19.06 percent to $1.39 billion, from $1.72 billion recorded in the third quarter of 2018. The NBS report showed the

United Kingdom emerged as the top source of capital investment in Nigeria in 2018, with $6,007.99 million, accounting for 35.74 percent of the total capital inflows in 2018. Gbolahan Ologunro, an equity research analyst at CSL Stockbrokers, said FDI declined in Q3 and Q4 due to elevated political risk in the economy at that time coupled with concerns over weakening global economy, which reduced appetite for emerging market assets generally. “In addition to that, while inflows into equity declined, we saw inflows into bonds rise. In a risk-off environment, the appetite for risk-free assets increases, basically investors more or less rebalance their portfolio by allocating more funds to less risky assets than risky ones, which was what played out in Q4,” Ologunro said. Ologunro explained that the longawaited passage of the Petroleum Industry Bill (PIB) is one of the key reforms investors are looking forward to that will see significant inflows. “The power sector is another

key sector where investors expect that if government can get its hand completely off that sector by ensuring tariffs are cost-reflective, then you will see more players making investment across the entire value chain,” he said. Ayodele Akinwunmi, head of research at FSDH Merchant Bank, said generally, investment policies are more relevant to foreign direct investors than how yields are performing because they relate more to the longterm developments in the economy than short-term developments. “When the elections are over, whoever wins, whether the opposition or the incumbent, they will face the reality, but again it is still going to be affected by what is going on globally,” Akinwunmi told BusinessDay by phone. Other investment accounted for 22.69 percent or $3.8 billion of total capital, while on a quarter-on-quarter basis, the total value of capital importation into Nigeria in the fourth quarter of 2018 stood at $2.1 billion. This, however, represents a decrease of 25.05 percent compared to Q3

Thursday 14 February 2019

North African countries leave Nigeria... Continued from page 2

infrastructure, continues to go on a borrowing spree. Although Nigeria’s public-debt levels are among the lowest worldwide, at about 21 percent of gross domestic product, according to the CIA World Factbook, weak tax collection could compromise its ability to repay future obligations. A slow recovery with little job creation has hindered povertyreduction efforts in Nigeria, which has the world’s highest number of people living in extreme hardship. About 92.10 percent of Nigerians live at below $5.50 a day, according to a recent World Bank data. Most people cannot afford to buy a packet of Spaghetti or proteins today. While the recent data from the National Bureau of Statistics (NBS) show the economy expanded by 2.4 percent in the fourth quarter of 2018, from 1.80 percent in the third quarter, the number is shy from ARM Research’s 2.70 percent projection. Experts are of the view that whoever is elected president has a herculean task of diversifying the economy by boosting the non-oil sector, curb-

ing spiralling inflation, and formulating policies that will lift millions of people out of the shackles of poverty. “If you are creating less activity than your population is growing, then you will have high rate of unemployment,” said Johnson Chukwu, managing director and CEO, Cowry Asset Management Ltd. “Government will have to create an enabling environment for businesses to thrive. For instance, the cement industry is thriving because of right policies. If we have the right policies, people will invest in agrorelated industries,” said Chukwu. Chukwu said that Nigeria cannot grow the downstream oil and gas sector if it continues to subsidise. Jobs that would have been created in the paints and pharmaceuticals industries are lost as the country is not creating intermediate jobs. Onyeka Ijeoma, an analyst with Vetiva Capital Management Ltd, is of the view that there has to be a lot of investment in the agriculture and manufacturing sectors that employ more people. “Total budget to the agriculture sector is abysmal despite high rate of unemployment,” said Ijeoma.

Stock investors price in likely outcome of... Continued from page 2

N11.721 trillion stood at N12.057 trillion at the close of trading on Wednesday. Equities started recouping losses last Friday after a loss of N2.3 trillion last year when foreign investors pulled out over N600 billion from the market. Before now, investors were guided to trade cautiously as many analysts’ outlook for the Nigerian equities in the near-to-medium term remained negative. This was because of the absence of a nearterm positive catalyst and earlier political jitters ahead of the upcoming 2019 elections. The benchmark index of the NSE All-Share Index (ASI) fell marginally by 15 basis points to close at 32,413.92 points, causing its year-to-date return to wane to 3.13 percent. Despite the declines recorded by stocks of the mid-tier lenders on Wednesday, banking stocks still remained investors’ toast during the trading session. Diamond Bank led the most traded stocks by volume, trading 131 million units worth N314.36

million. Zenith Bank trailed with 44.09 million units valued at N1.1 billion, while over 40.61 million units of United Bank for Africa (UBA) shares worth N319.49 million exchanged hands. After the close of business Wednesday, C & I Leasing lost 9.95 percent to N7.33. Champion Breweries depreciated by 9.55 to close at N1.61, while PZ Cussons Nigeria slumped by 9.43 percent to N12. On the other hand, both Berger Paints and Unilever Nigeria gained 10 percent to close at N8.25 and N44, respectively, while Unity Bank extended previous day’s gain by 9.47 percent to N1.04. The February 16 presidential election is projected to be a tight two-horse race, but the Economist Intelligence Unit (EIU) Africa report insists that Atiku, the PDP presidential candidate, will win. The margin of victory is getting narrower as the election approaches, said EIU Africa team in its report ‘#NigeriaDecides2019: Less than 2 weeks before #Nigeria’s presidential election’, but Atiku and his political party will win the historic election.

2018 and 60.24 percent decrease compared to the Q4 2017. Further analysis showed Nigeria’s FDI also shrunk from its 2008 heights of $4.66 billion, which went further down to $3.33 billion and $729 million in 2009 and 2010, respectively. In 2012, Nigeria’s FDI improved relatively to $1.99 billion but dropped slightly again to $1.28 billion in 2013 before improving again to $2.28 billion in 2014. Nigeria’s FDI in 2015 stood at $1.45 billion but dropped further to $1.04 billion in 2016, while in 2017 and 2018 FDI stood at $981 million and $1.19 billion, respectively. Last month, a report by from United Nations Conference on Trade and Development (UNCTAD) showed Nigeria’s FDI declined 36 percent from $3.5 billion in 2017 to $2.2 billion in 2018, making it the lowest foreign inflows the country has recorded in the last 13 years when the Geneva-based permanent intergovernmental body started tracking FDI data across the globe. Nigeria lagged behind major African countries such as Egypt, South

Africa and Angola in FDI inflows despite a 7 percent increase in FDI across the continent, according to the report. The history of FDIs in Nigeria is one of government recklessness, unilateral and illegal termination of agreements, contracts and projects, often without any compensation. This has not changed even with the return to democratic governance and has continued to this day. For instance, the 2018 travails of successful foreign businesses in Nigeria, like the South African telecommunications giant MTN and pay TV firm Multi Choice, were reasons for concern for investors. The nation’s infrastructure deficit is also a concern for investors as the absence of stable power means manufacturers have to factor the high costs of alternative energy sources into their business models. In addition to these, many investors are fearful that despite a large population, there is no viable market for their products due to the high rate of poverty, unemployment, and low disposable incomes in the country.

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Shell, partners sign 300m cubic feet of gas FID OLUSOLA BELLO

L-R: Robert Giles, head, retail banking, Diamond Bank plc; Oluwaseun Alonge, winner DiamondXtra salary for life; Osita Ede, head, consumer liability product, Diamond Bank plc; Uchenna Amala, winner DiamondXtra salary for life, and Karimot Tukur, head, consumer banking, Diamond Bank plc, at the launch of DiamondXtra season 11 in Lagos, yesterday. Pic by Olawale Amoo

WAV, STG resolve years of rift, sign settlement agreement OLUSOLA BELLO

… NCDMB, NAPIMS mediate

ea Trucks Group Limited (STG), a British Virgin Island company, and West African Ventures Limited (WAV), a 100 percent Nigerian company, were engaged in a protracted commercial dispute. This resulted in several court and arbitration actions in Nigeria and outside Nigeria. However, the Nigerian Content Development and Monitoring Board (NCDMB) and the National Petroleum Investment Management Services (NAPIMS) encouraged a commercial settlement rather than a legal resolution between the parties. Following a period of extended negotiations, both WAV and STG were able to reach a binding settlement agreement on November 13, 2018. The settlement agreement resolved all disputes between the parties

and provided for an agreed allocation of vessels, which were previously disputed by both parties. The settlement agreement provided for satisfaction of limited conditions, which were successfully achieved on February 1, 2019, thereby bringing the settlement agreement to a conclusion. The settlement would have been improbable without the personal involvement of the executive secretary of NCDMB, Simbi Wabote as well as NAPIMS. The ceremony of February 12, 2019 therefore formalises the completion of this settlement agreement. Wabote, who chaired the signing ceremony, commended the amicable resolution, saying it was a winwin for the two companies and the oil and gas industry.

He said: “In every business endeavour, there are disagreements and individual interests but the most important thing is having the mind set to settle through dialogue rather than getting through legal tussle that will last for a very long time that will create a lose-lose for everybody. “So, if businesses see people with integrity and reputation they want to bring in to enable them settle any of their rift, they should bring those people in and be able to sit round the table and iron out their individual differences rather than resorting to legal battles that will last forever. So, my advice to businesses that are in conflict is to create the opportunity to dialogue because for every problem there is solution. “The significance of the peace agreement and deci-

sion to work together amicably going forward is to correct the impression outside the country where people believe that coming to invest in Nigeria as an international business will only leave you to lose your investment and assets. “This shows we can amicably resolve our issues. Any foreign investor who wants to come here has a mechanism for dispute resolution, which this agreement has shown that it could work. STG is an international company while WAV is a local company, they had issues but they got the services of NCDMB and NAPIMS and other mediators to be able to resolve it. “So, there exists in the country mechanism to resolve issues like this between international and local company.”

hell Petroleum Development Company of Nigeria Limited (SPDC) and its joint venture partners signed a Final Investment Decision (FID) agreement for 300 million cubic feet of gas on Wednesday in Abuja. The ceremony was witnessed by Nicholas Terraz, managing director, Total Exploration and Production Nigeria Limited, and Lorenzo Fiorillo, managing director, Nigeria Agip Oil Company Limited. Shell had announced taking FID last December on the Assa North Gas Development Project, which is one of the Seven Critical Gas Development Projects of the Federal Government. The project, located in south-eastern Imo State, aims to position Nigeria as a regional hub for gas-based industries while complementing Federal Government’s aspiration for gas sufficiency for domestic consumption, power generation, and gas-based ammonia and urea fertilizers for farmers. At peak production, the project is expected to produce 300 million standard cubic feet of gas per day and will be treated at SPDC JV’s Gas Processing Facility and distributed through the Obiafu-Obrikom-Oben pipeline network. Speaking at the FID agreement-signing ceremony, Maikanti Baru group managing director, Nigeria National Petroleum Corporation (NNPC), described the project as a major investment towards fulfilling the domestic gas aspiration of the Federal Government, adding that the corporation was excited at the progress with the project and would provide the needed support to ensure first gas production as soon as possible. Baru, who was repre-

sented by NNPC chief operating officer Upstream, Rabiu Bello, said, “The NNPC Project Management Board would work hard to ensure progress having provided the necessary approvals and enablers,” adding that on successful completion, the project would translate into huge social-economic benefit to Nigerians. Also speaking, Osagie Okunbor, managing director of SPDC and country chair, Shell Companies in Nigeria, described the progress with the FID as good news for the SPDC JV and Nigeria for the accelerated growth of the domestic market and optimisation of SPDC’s onshore footprints. Okunbor said, “The project is key to driving the Federal Government of Nigeria’s ambition of marching away from a mono-economy through diverse industrial growth. It is premier amongst the Seven Critical Gas Projects initiative led by the Ministry of Petroleum and the Nigerian National Petroleum Corporation (NNPC). Their integrated focus, support and drive were instrumental to this investment decision. “SPDC JV would continue to explore other areas of support for the expansion of domestic gas supply and continue to make investments under the right conditions.” SPDC had earlier signed a Global Memorandum of Understanding with the clusters of host communities of the Assa North project for community development projects in addition to some other community initiatives already executed by the company ahead of construction work. SPDC is the operator of a Joint Venture involving NNPC, which holds 55%; Shell 30%; Total Exploration and Production Nigeria Limited (TEPNG) 10%, and Nigeria Agip Oil Company Limited (NAOC) 5%.

AIB reports attribute VP’s helicopter crash to dust haze Saudi Arabia’s budget imbalance tells tale of oil exporting countries IFEOMA OKEKE

reliminary report issued by the Accident Investigation Bureau (AIB) has attributed the recent crash of helicopter carrying the Vice President of Nigeria to ‘Brownout.’ It would be recalled that on February 2, an helicopter operated by Caverton carrying Vice President Yemi Osinbajo alongside 11 people on board, including the crew, was involved in a crash, although no one sustained injury. The helicopter with registration number 5N-CML departed Murtala Muhammed International Airport, Lagos, for Nnamdi Azikiwe International Airport, Abuja, to conduct a chartered VIP flight from Abuja to Okene

via Kabba and then return to Abuja. While issuing the report Wednesday at AIB head office in Lagos, Akin Olateru, commissioner of AIB, said Caverton did not conduct site survey of the landing field prior to this flight and also failed to carry out safety and risk assessment of the landing area prior to dispatch of the flight. Olateru disclosed that drug and alcohol test for the crew could not be carried out, although, the helicopter had a valid certificate of airworthiness, it hovered to land in a brownout condition. Brownout in helicopter operations is an in-flight visibility restriction caused by dust or sand in which the flight crew losses visual contact with nearby objects that

provide the outside visual references necessary to control the helicopter near the ground, he said. According to Olateru, “During cruise at 5,000ft and at about 10 minutes to touchdown, the crew noticed the flight recorder light on the Crew Alerting System (CAS) come on. Quick Reference Handbook items were accomplished. Another helicopter operated by Nigeria Police Force (Bell 412; 5N-PEJ) landed ahead of NGR002. “The crew briefed on landing in brownout and used the Company’s Brownout Landing Procedures. During the landing, at about 50ft to touchdown, a heavy brownout enveloped the helicopter and the crew lost visual contact with the ground.

STEPHEN ONYEKWELU

audi Arabia faces a budget imbalance that will require oil prices to hold at 30 percent above current price levels to redress, as other oil exporting countries, such as Nigeria also face varying degrees of exposure. Benchmark Brent crude oil was trading at $63.38 and the West Texas Intermediate was trading at $53.65 at 11:40 GMT on Wednesday. An International Monetary Fund official said the world’s top oil exporter would need oil priced at $80$85 a barrel to fix its budget imbalance. To achieve this, Riyadh needs to keep close watch on the level of oil production, how much of Saudi oil

revenues are transferred to the budget, and how non-oil revenues perform in 2019. “But if you take the (2019) budget as presented with everything remaining equal, a breakeven point would be around $80-$85 dollars,” Jihad Azour, director of the IMF’s Middle East and Central Asia department, told Reuters. When Brent oil jumped near $80 a barrel from $67 at the end of 2017, Saudi Arabia’s current account surplus swelled and its state budget deficit shrank; this reduced the need to liquidate assets to finance government spending. But Saudi Arabia has increasingly borrowed in the international debt markets after the plunge in oil prices from mid-2014 bruised its revenues. The fall in oil prices that

started in 2014 has brought into sharp relief some risks associated with high dependence on hydrocarbon revenues. The net income available from oil and gas has fallen by between 40 percent (in the case of Iraq) and over 70 percent (in the case of Venezuela), with wide-ranging consequences for economic performance. Azour said the increase in Saudi Arabia’s debt was not worrying, particularly when compared to its foreign exchange reserves and in light of positive investor sentiment, as reflected by low bond spreads. In early October 2018, oil price reached a high of more than $86 and some market watchers warned it could climb to $100. But oil price fell by over 30 percent the following month.

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FG, Dangote flag off reconstruction of Ofeme road network

L-R: Hamzat Lawal, CEO, Connected Development (CODE), Hauwa Abbas Hadejia, founder, Silver Lining Initiative, and Kolo Kenneth, lead communication, CODE, during a press briefing on #Nigeria Decides 2019 and launch of Real-Time (Web-Base Map) Situation Technology Tool by CODE in Abuja. Pic by Tunde Adeniyi.

Osinbajo lauds stockholders impact on economy HARRISON EDEH, Abuja

ice President Yemi Osinbajo has lauded the collaboration of Chartered Institute of Stockbrokers and the Federal Government that will provide a platform for economic growth. The Vice President expressed optimism that such impact would create opportunities using the capital/financial markets to address the country’s infrastructural deficit. Speaking at interactive forum organised by the Chartered Institute of Stockbrokers in Lagos, the Vice President said although the President Muhammadu Buhari administration met a weak economy when it came into power in 2015, and had set the country on a path of growth, industrialisation and sound resource management.

Represented by the Minister of Industry, Trade and Investment, Okey Enelamah, the Vice President highlighted some of the challenges in 2015 as rising inflation, declining reserves, exchange rate instability, and a sharp drop in oil revenues, all of which resulted in economic recession. He said in a statement issued on Wednesday that the government has been able to reverse the decline through the implementation a Strategic Implementation Plan and the Nigeria Economic Recovery and Growth Plan. “Our first step was to create an enabling environment for businesses to thrive,” he said. “We implemented Ease of Doing Business reforms, Foreign Exchange Market reforms, provided incentives such as the Pioneer Status incentive for investors and signed bilateral agreements with countries like China,

Germany, and the UK.” According to the Vice President, Nigeria has also moved aggressively on the path and policies to industrialisation with the establishment of the Nigerian Industrial Policy and Competitiveness Council fora close partnership with the private sector in order to implement the Nigerian Industrial Revolution Plan. He said six Special Economic Zones are being created in different geopolitical zones and key sectoral policies from tomato to sugar and automotive are being implemented. Other initiatives highlighted include: Up scaling agriculture with over N120.6 billion disbursed so far to more than 800,000 farmers under the Anchor Borrowers Scheme; the Social Investment Programme under which farm produce has been from over 100,000

AfDB to release $100m for reconstruction of Port Harcourt Road, Aba, others GODFREY OFURUM, Aba

frican Development Bank (AfDB) has promised to release about $100 million before the end of 2019, towards the reconstruction of Port Harcourt Road, Aba, and control of erosion on Ngwa Road axis of the commercial city, Governor Okezie Ikpeazu says. Ikpeazu, in an interaction with the Aba business community, at the Aba Sports Club, explains that the intervention will stop flooding in Urata, Cemetery, Ohanku and Igbere of Ngwa Road. Abia State is to access $200 million grant from the AfDB to rehabilitate Port Harcourt Road and check erosion in the Aba city centre. The AfDB delegation, led by Mwila Aeron Katambula, a transport specialist with

the bank, was in Abia State recently for the final lap of talks between it and the state government on some developmental projects of interest to the bank in the state. Ikpeazu states that providing road infrastructure in Aba is important to the state, noting that apart from being the commercial hub of Abia, Aba is the micro, small and medium enterprises (MSME) centre of Nigeria. He states that road infrastructure, waste and storm water managements are the challenges faced in Aba, the state does not have the resources to do good work at Port Harcourt and Ikot Ekpene roads. The visit of the AfDB to the state has rekindled the hope of residents and other patrons to Aba that help will come soon and the roads

would be rehabilitated, he said. According to Ikpeazu, “We have tried to do what is required of us in terms of ensuring that the ground work is done to enable AfDB come in.” He also explains that the new Port Harcourt Road, a six-lane expressway, will have a dedicated BRT lane from end to end and street lights, which is aimed at extending trade time in the area. The contract was awarded to Setraco Construction Company/Heartland Construction Company and would be completed in 18 months. The historic road is expected to open up Aba and improve the state’s internally generated revenue, as businesses at that part of the commercial city would be revived.

farmers to feed 9.2 million school children daily; the GEM programme, which has disbursed over N3.7 billion to 910 entrepreneurs; Public Finance Reforms and Conditional bailouts of sub-national governments. “The reforms have clearly put us back on the path of growth. Our GDP has grown consistently for the past six quarters, our exchange rate market is stable, our inflation rate has declined even below the ERGP target of 12.4 percent for 2018; we have gone from negative to positive trade balance and our external reserves which stood at over $43 billion in December 2018 has been on a sustained increase,” said VP Osinbajo. Enelamah also highlighted the central role being played by the Federal Ministry of Industry, Trade and Investment under his leadership to drive some of the ongoing economic reforms.

uccour and development will soon come to the people of Ofeme Community in Abia State, as the Federal Government and Dangote Industries Limited Tuesday flagged off the reconstruction of the roads and bridges in the community. The construction of the road will be handled by AGDangote, a subsidiary of Dangote Industries Limited. The project is covered under Executive Order #7 of 2019, titled Road Infrastructure Development and Refurbishment Investment Tax Credit Scheme, where “Participating investors will use tax credits to reduce corporate taxes payable to government until they recoup the value of their investments in roads and bridges.” Speaking at the flag off event, president/chief executive, Dangote Industries Limited, Aliko Dangote, extolled the Federal Government for the executive order #7, which allows private sector intervention in the provision of critical infrastructure. Dangote who was represented by the South South Regional Director of Dangote Cement, Okoro George, said a new dawn is coming to Ofeme community, as the deplorable state of their roads would soon be a thing of the past. He explained that the 16-kilometre road would form a ring road around Ofeme and connect it at two points to the Enugu Port Harcourt Expressway while the two bridges connecting the town to other communities would be rebuilt. According to him, “the entire road network will be built on concrete pavement instead of earth pavement which gives a lifespan of about 40

years, will contain drains on both sides while the surface will be made of concrete also instead of asphalt.” He added that AGDangote has established itself as a construction company of repute having delivered the 26-kilometre Ibese-Itori concrete road in Ogun State, the 2-kilometre Apapa-Wharf dual carriage concrete road, the ongoing 43-kilometre Obajana-Kabba concrete road and the 35-kilometre Apapa-Oworonshoki Expressway. Dangote Group, he said, pioneered the use of concrete for road construction in Nigeria, adding “Countries that have achieved self-sufficiency in cement production have found it expedient to adopt the construction of concrete roads because they are cheaper, more durable and environment friendly. I believe Nigeria should not be an exception. We must move with the times.” He promised that Dangote Group is ready to partner more with government in the provision of critical infrastructure so as to lift the standard of living of the people. Minister of Power, Works and Housing, Babatunde Fashola, speaking at the flag off described the Ofeme Community road network reconstruction as a gigantic project that open the community and surrounding towns to development. The minister, who was represented by Federal Controller of Works, Abia State, Nwankwo Chukwudike said the project on completion would open up access roads to manufacturing clusters in the area, reduce high cost of transportation and raise the standard of life for the people.

Edo targets 50% reduction in irregular migration, human trafficking

do State governor, Godwin Obaseki, has reiterated his administration’s commitment to reducing the incidence of irregular migration and human trafficking by 50 percent by the end of 2019. The governor made the submission while delivering a speech at one-day Prosecution and Investigation Training on Irregular Migration themed; ‘How to Bridge the Gap between Investigation and Prosecution,’ held in Government House, Benin City, Edo State. He said about 4,800 returnees had been received by the state government after going through harrowing experience in the quest for greener pastures in foreign lands. “In dealing with the crime of human traffick-

ing, my administration is tackling the root cause by providing quality education, technical training which will provide jobs,” he said. He noted that the state government was receiving greater support from the international community as the state continues to combat the scourge of human trafficking. He said activities of the state taskforce against human trafficking have attracted the support of both the Federal Government and international partners in organising training on prosecution and investigation, noting, “For us in Edo State, we have realised we have a problem which has led to several steps that we have taken to solve the problem.” Guest lecturer at the

training and ComptrollerGeneral, Nigerian Immigration Service (NIS), Mohammed Babandede, who delivered a lecture entitled; ‘Effective Investigation and Prosecution of Human Trafficking Cases,’ urged stakeholders to join hands with governments in the fight against the scourge. Babandede averred that trafficking was not an issue only for uniform personnel, but for all stakeholders such as religious leaders, Civil Society Organisations (CSOs), among others. “Trafficking is an organised crime with three elements which must include the acts, means and purpose. Trafficking poses serious threat to governments as it relates and connects to other crimes.”

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How NCX hopes to meet revenue target amid operational issues TEMITAYO AYETOTO

igeria Commodities Exchange (NCX) plans to generate at least N4.3 billion from the revival of trading activities this year, even when the system framework required to guarantee that hangs in the air. The exchange, which has been on a 20-year break, believes the revenue target is realistic if important structures such as warehouse receipt law, legislation on agricultural produce marketing, nationally acceptable grades and standards, trade incentives for commodity players such as excise tax, import and export levy rebates are installed. Zaheera Baba-Ari, managing director/CEO, NCX, says basic infrastructural facilities required for effective trading operation were on ground but the absence of certain institutional arrangements could be a limitation, in statement responding to BusinessDay’s questions.

To this end, the exchange has based its plan on having commodities bought on the exchange floor turned over at least four times in a year by the trading members. “At least, 30 percent of the projected agricultural production figures for 2019 will be available for sale and 15 percent of what is available for sale including maize, sorghum and paddy rice will be traded on the NCX. “If we compute the trading commission that will accrue to the exchange from the sale of these commodities in a year and add it to the warehouse fees that will be generated as well as the membership fees payable by the trading members, NCX will realise more than N4.3 billion,” Baba-Ari states. The exchange is set to start receiving commodities into its delivery warehouses by this month end, and has been working with New Nigeria Commodity Marketing Company (NNCMC) to grade some of the commodities in its warehouses in Kano and some other locations in the North for trading on the NCX.

If full trading commences as projected, 2019 may be heralded as the year which effective linkage of farm produce with markets and price discovery for appropriate returns on investment in agriculture will deepen enormously on the back contract trading. Already, the Securities and Exchange Commission is planning an overarching restructuring of commodities trading through the NCX and would be rounded off by 2025. To kick-start trading this year, NCX has specified a list of contracts including MAF1&2, MFB1&2 and MHC1&2 in the maize category and SGM1&2 in sorghum, designed for trading members either on their own accounts or on the accounts of their clients. It will be trading in maize, sorghum, soya beans, sesame seeds, paddy rice and cocoa, and to facilitate this, the Exchange says it has renovated and equipped seven of the warehouses leased to it by the Federal Ministry of Agriculture and Rural Development

(FMARD) for use as delivery warehouses. It has also acquired Trading and Warehouse Management Software for deployment on its trading floor and delivery warehouses, respectively, in addition to rehabilitating its assaying laboratories in Abuja and Kano for pretrade quality checks. For settlement of trades with minimum default, Baba-Ari says the exchange has entered into a clearing and settlement agreement with the Central Securities Clearing System (CSCS) to act as a clearing house for all its trading transactions. In addition, it has registered some trading members in different categories to carry out trading activities, either physically on its trading floor or remotely. “One of the challenges facing us is the weak supply side. The Exchange has therefore entered into an MoU with the NNCMC to serve as a trading floor exclusively for all agricultural commodities bought by the company from farmers in the 19 Northern states.” L-R: Imrane Barry, MD, Total Nigeria plc; Bunmi Popoola– Mordi, executive general manager, Total Country Services; Olumide Ogunbanjo, winner, Total Startupper Challenge; Bruno Dormoy, executive director/secretary general, Total Nigeria plc, and Abiodun Afolabi, executive director, corporate affairs services, Total E&P Nigeria Limited at the Total Startupper Of Year Challenge Award Ceremony in Lagos yesterday. pic by Pius Okeosisi

Total announces winners of Startupper of the Year MICHEAL ANI

fter the jury of local experts selected the winners of the 2018-2019 Startupper of the Year by Total Challenge in Nigeria, they were presented with their awards at an official ceremony Wednesday, in Lagos. The three winners of the Startupper of the Year by Total Challenge in Nigeria are: Ogunbanjo Olumide, AgroData Network: AgroData Network promotes organic farming via communitybased beekeeping providing farmers with free beehives. The company deploys natural techniques to keep the bees within the ecosystem. Obaoye Justus, Carido Automobiles Service Technology: Carido is an ondemand automobile service

technology which aggregates automobile maintenance demands through mobile devices and thereafter facilitates their fulfilment through select offline services performed by competent and vetted mechanics. Ijir Aondosoo, My Waste My Energy: My Waste, My Energy converts rice husk waste to energy source and provides a sustainable form of domestic energy, reduces environmental degradation and deaths associated with respiratory diseases as Nigeria records 93000 deaths annually due to smoke from firewood. These young entrepreneurs will receive financial support of up to N6million for the first prize to develop their project. They will also receive personalized support and coaching from Passion Incubator and a com-

munications campaign to publicize their project. The winner of the Top Female Entrepreneur award, a new addition to the 20182019 Challenge to support women in business, is: Omotosho Oghenekevwe, Isabiwork: Isabiwork is an app which helps customers easily locate the nearest artisan or service provider in their location thereby bridging the digital divide between artisans and their potential customers. The jury also awarded the Young Entrepreneur prize to: Emmanuel Ezenwere, Arone Aerial Services: Arone is bridging the gap between rural and urban health care services in sub-Saharan Africa by transporting medical supplies from medical storage and distribution centres to primary healthcare cen-

tres using autonomous delivery drones. The 2018-2019 Startupper of the Year by Total Challenge, held simultaneously in 55 countries — 37 of which are in Africa, 11 in the Asia-Pacific and Middle East region, 4 in the Americas, and 3 in Europe — reaffirms Total’s commitment to social and economic development in host countries worldwide. By helping innovative young entrepreneurs to realise their projects, the Challenge strengthens the local social fabric. The second Startupper of the Year by Total Challenge received nearly 50,000 entries, of which more than 15,000 were fully completed. In all, 825 finalists presented their projects to a jury of experts, with 165 winning prizes.

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Peace Accord: My ambition is not worth the blood of any Nigerian, declares Atiku ... as world leaders advocate peaceful polls ONYINYE NWACHUKWU, ANTHONY AILEMEN, OWEDE AGBAJILEKE & JAMES KWEN

hree days to the Nigeria’s general elections, former Vice President Atiku Abubakar and presidential candidate of the main opposition People’s Democratic Party (PDP) has declared that his ambition is not worth the blood of any Nigerian. Atiku, who quoted former President Goodluck Jonathan, made this declaration Wednesday at the signing of the peace accord by the 73 presidential candidates including President Muhammadu Buhari at the International Conference Abuja. “As we prepare to sign off on this Peace Accord, as representatives of our party and people, may I freely quote the words of former President Goodluck Jonathan, which remains a benchmark, for me, taking into account the deep feelings that prevail as February 16, 2019, approaches. “My ambition is not worth the blood of any Nigerian. “In this context, I appeal once again to every staff and the leadership of the Independent National Electoral Commission (INEC) and the Nigeria Police Force, to be fair arbiters in the upcoming elections while letting neutrality prevail. “In conclusion, I appeal once again, to our citizens, to go out and cast their votes for the candidates of their choice, to be peaceful at all times, and confident in our democracy, its institutions and processes. So, please go out this Saturday to vote for your future and the future of our great nation”, Atiku said. On his part President Buhari of the ruling All Pro-

gressives Congress, APC appealed to young people to eschew all forms of violence, adding that, “we will vote for political parties but at the end, only one party- Nigeria will be the winner.” “No matter how prepared our candidates are, the forthcoming elections are very important, as they come immediately after one of the most peaceful elections in the history of our country. Buhari, who noted that the election has unexpectedly created anxiety in the air, said It is an evidence that, “we are all maturing in our democratic process.” He assured that government has provided everything needed by the Independent National Electoral Commission to conduct free, fair and credible election, adding that the “ Security agencies have been duly briefed about their roles in ensuring free and fair election.” Meanwhile, world leaders and international observers who witnessed the event appealed to the aspirants and their supporters to commit themselves to peaceful, fair and credible elections. Patricia Scotland, Commonwealth Secretary-General, in her remarks declared that, “elections will come and go but Nigeria will remain. Treat her tenderly because she deserves your love and devotion.” Scotland noted that Nigeria being the largest in Africa in terms of economy and population, whatever happens to her, “matters to all.” She further emphasized that it is important that the country remains an example to not just other countries in the region but her peers globally.

Stakeholders call for collaboration to strengthen basic education in Lagos SEYI JOHN SALAU

n ensuring that children of school age in Lagos State are enrolled in school for the compulsory nine years basic education in preparing them for lifelong learning, stakeholders in the education value chain have called for collaboration between government and the various interest groups in the sector to strengthen basic education in Lagos. “Learning cannot take place in an unconducive environment; if the home is conducive and the school itself is conducive, it is then we can have a good learning atmosphere. That is the purpose of the parentteachers collaboration, and

they have to work together,” Aboluwodi Solomon Ademofe, the education secretary of Ajeromi-Ifelodun Local Government Education Authority (LGEA), said at sensitisation of community stakeholders on the basic education projects held in Lagos. “I observe that parents do not care about the education of their children; they assume that everything is for the teachers. This is a forum to inform them that their duty is to collaborate with teachers and ensure that pupils do what they are expected to do, at least moral values. Parents are to ensure they inculcate moral values in their children and maintain discipline.

BUSINESS DAY

NATIONAL DISCOURSE

CALEB OJEWALE

he ability to communicate with the public, lucidly and intelligently is how many world leaders sell their countries to the international community. Vibrant leaders with even moderate oratory prowess are able to sell their ideas and visions, but Muhammadu Buhari, Nigeria’s President has at best been demarketing Nigeria. His conducts and utterances as President for almost four years, have subjected Nigeria to public ridicule. Instances include him referring to young

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editorial, there is a very good chance Buhari deliberately delegates a lot of his duties to aides and subordinates so that if anything goes wrong, he could deny responsibility. That is why the president has denied virtually all his campaign promises from 2015 because they were made by the party and not by him directly. Even this time around, he has handed over his re-election campaign to others. Should he be elected and he cannot fulfil all the promises that are being made in his name, he will again deny the promises. It is difficult to find videos of Buhari, making declarations of what he wants to do for Nigeria. This largely accounts for why the President conveniently denies responsibility when the citizenry try to hold him accountable for government failing on certain deliverables. His 2019 campaign stops have so far been overshadowed more by his blunders in announcing wrong candidates, and less about his plans for the

country. His lieutenants, who are often appointed to speak on his behalf, are more or less thrown under the bus when the President reneges on whatever pledge was made to the public. It will not be out of place to assert that this President called Muhammadu Buhari is never ‘aware’ of anything. Either mischievously or due to his inadequacy, Buhari is never aware when his aides are executing lawless activities, capable of jeopardising peace and national stability. Yet, as President, the buck is supposed to stop at his desk. Muhammadu Buhari’s conducts and comments have polarised Nigerians, and made the country a subject of jests in the international community. Worse still, he appears lacking of the intellectual capacity to successfully conceive plans, policies, and strategies in managing Africa’s largest economy to prosperity.

Buhari: De-marketing Nigeria out of sheer incompetence Nigerians as Lazy Youths, Ministers as ‘noisemakers’ with less role to play in government as long as there are civil servants. The “other room” remark, which went viral, a comment made following public outbursts by Aisha his wife that the President is not in charge of government but certain clandestine elements. Added to this, his inability to present himself as a vibrant, thoughtful leader also contributed to the rumoured comment by Donald Trump, the United States President, that he never wants to meet ‘anyone that lifeless’ again. In his defence, supporters have often said Buhari is not given to speaking many words and that while he may not have great mastery of the English language, he has ‘good intentions’ for the country. Agreed, we are all learners, since English is after all a borrowed language. Not being proficient in the Use of Language, does not necessarily make a person unintelligent or “illiter-

ate”, although exceptions exist. President Buhari is however, deficient in intelligence, charisma, and moral uprightness required to be at the helm of affairs in Nigeria. It would be fine if he was unable to express himself, but could at least direct the affairs of Nigeria Positively. He is unable to do either of these. For Aisha, his wife to have been reported on at least two occasions, lamenting that her husband is not in charge of running the country, shows a lot is wrong. She has often complained of a cabal that has hijacked government, especially two supposed individuals who operate like mafia bosses. Any vote for Buhari this week will invariably be a vote for these puppet masters pulling the strings behind the scene. The ‘faceless presidents’ should not be given a chance to run Nigeria into the ground and continue holding the country back from making progress. As captured in a BusinessDay

NEWS

The death of Nigerian FX black market? Presidential election: Nigeria at FX MARKET threshold of history – Ambode

ithin the first hour of launching its currency exchange platform in late 2018, TradeNAIRA got its first user wanting to send $4,000 to Nigeria. “We didn’t expect to receive so much demand, so quickly,” explained TradeNAIRA founder Martin Nwike, a businessman and entrepreneur based in London UK. Since then the company has grown quickly and added many new services to assist people doing business and making simple day-to-day transactions in Nigeria. The company not only allows users to exchange currencies, it also allows users to send money to each other and pay for services safely online. Currently TradeNAIRA supports currency exchange between Naira, US Dollars, British Pounds, Euros, Ghanaian Cedis and Bitcoin; with the list of currencies growing every month. “We wanted to create a platform that was focused on the Nigerian experience. We all know that doing business and trading in Nigeria has its own particular challenges and very few options

are available for sending and receiving money that are reliable, safe and cheap,” said Mr Nwike. What is TradeNAIRA? TradeNAIRA is a set of business services and functions that make doing business in Nigeria easier and more transparent. The currency exchange platform is one of the company’s key feature. Users of TradeNAIRA can set up an account within a few minutes and can make a deposit in their local currency. They can then trade their money on the currency exchange platform, which matches prices from the different users automatically. So, if a user is exchanging US Dollars for Naira and their price matches with another user somewhere else in the world then the money is exchanged automatically, in real time. The user can then withdraw the funds into their bank account or send it to another user through the TradeNAIRA platform. “One of our key goals is to bring transparency into the Nigerian currency exchange

market. All bid and ask prices are available to view at any time as well as all historic prices going back to the very beginning.” Due to the changing regulatory climate in Nigeria, local banks have struggled to maintain a credible currency exchange policy that stands the test of time. TradeNAIRA plans to manage this problem by putting free market forces to use. By creating an open and transparent platform, Mr Nwike believes that whatever the economic situation in Nigeria, users can buy and sell their currencies for prices that suit them. Exchange rates are not set by TradeNAIRA but come as a combined result of the prices set by each user. “Over the next few years we hope to be an essential part of doing business in Nigeria. We hope to build and manage services that make our users lives much easier and give them a strong advantage when transacting in Nigeria,” explains Nwike. The company has proven itself as being very innovative and ambitious, with many planned features currently being developed.

JOSHUA BASSEY

wo days to the much anticipated presidential/National Assembly elections, Lagos State governor, Akinwunmi Ambode, says the country is at the threshold of history, as the outcomes of the polls will redefine the future of the nation. Ambode, who has been denied the opportunity by the leadership of the All Progressives Congress (APC) in Lagos to seek re-election in this year’s general elections, has been seen in several political rallies campaigning for President Muhammadu Buhari. Analysts believe that having been rejected at the state level, Ambode’s hope of advancing his political career hangs around President Buhari, who is seeking re-election on the platform of the APC in Saturday’s presidential polls. Buhari, whose almost four years of administering Africa’s most populous nation, has seen Nigeria emerge world’s headquarters of poverty, faces a strong contender in Atiku Abubakar, candidate of People’s Democratic Party (PDP), who has promised to revive the sliding economy. PDP is Nigeria’s major opposition party.

Ambode in a statement he issued yesterday and signed by Habib Aruna, his media aide, urged the residents of Lagos to conduct themselves peacefully during the election and shun acts of violence that could threaten the exercise. He said the nation was on a threshold of history as the outcomes of the election would be a defining moment in Nigeria’s political and economic landscape. According to Ambode, it was important for the residents, especially the electorate to see the election as one that they must not sit on the fence but go out to exercise their franchise in an orderly manner, devoid of rancour and all forms of electoral violence. “As we prepare for the presidential and national assembly elections, I appeal to every Lagosian to ensure that the peace we have enjoyed in the last four years in the state is replicated across all the polling units/ voting centres on Saturday. “Your PVC is your voice and it is what you would need to cast your vote. I urge you to come out, be orderly, take your place in the queue and avoid any form of violence that can mar the process or put the lives of our peace loving citizens at risk,” he said.

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Lagos APC promises to deliver on party manifesto JOSHUA BASSEY

igeria’s ruling party, the All Progressives Congress (APC), has assured Nigerians that it will deliver on all plans and programmes promised the citizens during the ongoing electioneering campaign. At the motorcade rally held at Ejigbo area of Lagos State, ahead of next Saturday’s Presidential/ National Assembly general elections, APC loyalists from Ejigbo/ Isolo area of Lagos drummed up support for the re-election bid of President Muhammad Buhari and other candidates at state and national levels. Speaking at the rally, programme coordinator, Lagos State commissioner for information and strategy, Kehinde Bamigbetan, said that the event was organised to remind people of the need to know their civic responsibility and inalienable rights to vote and be voted for during election, and to showcase their candidates vying for various political offices.

Kehinde Bamigbetan

“Today we are having a rally and a road show to parade our candidates and to engage people on the street to let them know that APC is the party to vote for and we are making a case of continuity because we believe that we have used the time of four years to reposition the direction of this country

towards sustainable development of national economy. We believe that this is the only way for us,” Bamigbetan said. On the renewed vigour and strength of the party in the area having lost to the opposition in the last election, Bamigbetan said that all identified lapses had been

2019: Rise and defend democracy, South-West PDP urges Nigerians … We would resist attempt to subvert will of Nigerians - Afenifere Iniobong Iwok

ith just two days to Saturday’s National Assembly and presidential election, National Vice chairman (SouthWest) of the People’s Democratic Party (PDP), Eddy Olafeso, has urged Nigerians to rise and defend their votes in the election. Olafeso stated this Wednesday in an interview with BusinessDay, warning that any attempt by the Independent National Electoral Commission (INEC) and the ruling All Progressives Congress (APC) to derail the wish of Nigerians will be resisted. He stressed that the poor attendance at President Muhammadu Buhari’s campaign rally in some states was an indication

that Nigerians were tired of his administration and its negative policies. According to him, “The price of freedom is in the hand of the people. We would rely on the vigilance of Nigerian people to check that Saturday’s election is free and fair. We know that Nigerians would expose those that are involved in rigging and we are waiting for them.” “Look across the country, the APC is not campaigning and in case where they are holding rally they are not mentioning their achievement; because they know they have done nothing,” Olafeso added. Olafeso expressed the confidence that the PDP would win overwhelmingly Saturday’s presidential election across the

country. Meanwhile, Publicity Secretary of pan-Yoruba Cultural group, Yinka Odumakin, has said that Nigerians would resist attempt to manipulate Saturday’s election. “I am appealing all political parties that they should allow the will of Nigerians prevail; any attempt to subvert the will of Nigerians would be resisted,” Odumakin said. Odumakin, who stated this in an interview with BusinessDay, Wednesday, stressed that Nigerians were desirous of change. He lamented that poverty in the country had become unbearable. “The suffering in the land is too much; people are desirous of change and you can see that in the street,” Odumakin added.

Agbakoba condemns CCT bench warrant on Onnogen Iniobong Iwok

lisa Agbakoba, a human rights lawyer, has condemned the Code of Conduct Bureau (CCT) order for the arrest of the Chief Justice of the federation, Justice Walter Onnogen. Agbakoba, in a statement, Wednesday, a copy which was made available to BusinessDay, said it was wrong for the CCT to have issued the order when it was aware that its jurisdiction on the

case was being challenged. The Senior Advocate of Nigeria (SAN) stated that the CCT was wrong on the warrant of arrest order, because it was aware that the case was now before the National Judicial Council (NJC), stressing that the CCT ought to wait for the outcome of the pending matters in the NJC, Appeal Court and Federal High Court. According to him, “I am shocked that the Code of Conduct Tribunal will issue a Bench warrant for the arrest of Justice Walter Onnogen,

knowing full well that its jurisdiction to try the case has been challenged and the Application on challenge is on the CCT docket, and no hearing has occurred. “The CCT is aware that there is now before the National Judicial Council, a petition against Justice Walter Onnogen on exactly the same charges at the CCT. The CCT ought to await the outcome of the pending matters in the NJC, Appeal Court and Federal High Court. The conduct of the CCT subverts the Rule of Law and due process”.

rightly addressed. According to him, “You know that in the last election we lost. Though we don’t lose in Ejigbo, but we lost in Isolo, but this time, we have been able to play the politics. The person that won the House of Assembly against us in 2015 is now in our party. We have also made sure that we have strengthened our party in such a way that minority elements around us are now fully integrated into the party. We now have Igbo people in the executive of the party and councillors. So, the idea that APC is a sectional party is no longer there, because we have recreated the party as a cosmopolitan party.” Bamigbetan emphasised that the APC will continue its developmental drive started by President Buhari and take people to the next level of democratic governance. A candidate of the Federal House of Representative, Oshodi/Isolo constituency 2, Ganiyu Johnson, explained that the administration of President Buhari has established a firmer ground for the nation to take off for another platform of

prosperity and will need people’s support to achieve. He said the importance of the rally was to empahsise the need for everyone to come out on February 16 and March 2 to vote for all the candidates of the All Progressives Congress, APC. “This is a motorcade rally organised on behalf of Ejigbo local government and the importance is to go round the local government to let people know that our party is on ground. Truly, we have been canvassing house-to-house, we are doing more to tell prospective voters that our party is the best among all others.” Also, the former Lagos State chairman of the APC, Henry Ajomale, encouraged voters in the area to get ready for the election with their Permanent Voters Cards (PVCs) and cast their ballot for continuity in both the federal and state levels. “We enjoin the good people of Ejigbo and its environ to get their PVCs ready and close to them, so that they can use it to vote a brighter future and better days,” Ajomale said.

Again, Afenifere faction endorses Atiku, gives reasons Akinremi Feyisipo, Ibadan

he Reuben Fasoranti-led pan-Yoruba socio-cultural organisation, Afenifere, on Wednesday endorsed the candidature of former Vice President of Nigeria who is also the candidate of the Peoples Democratic Party (PDP), Atiku Abubakar for this Saturday’s presidential election as its candidate. A faction of the group led by Ayo Fasanmi had on Tuesday, 29th January this year, in the same Ibadan, endorsed President Muhammadu Buhari, claiming that Buhari had performed well and deserved another term in office. The endorsement of Abubakar, which took place at a programme christened, ‘Afenifere town hall meeting on moving Nigeria forward’ held in Ibadan, the Oyo State capital, the group said it decided to endorse Abubakar because of his resolve to restructure Nigeria. Fasoranti further said that the essence of the programme was to tell the people of the South West region to vote for Abubakar because he had promised to implement restructuring proposal to the letter. According to him, “We are here to support the candidate that will implement to the letter, the restructuring of Nigeria as moved in the Ibadan declaration in 2017. We want someone that will restructure Nigeria. We want Nigeria that is restructured. The structure that we want is the one that will not be manipulated. That is what Yoruba stand for. We are endorsing

Atiku Abubakar of PDP.” In his remarks, Femi Okunrounmu said that the group had investigated the candidates contesting the presidential election and discovered that Atiku Abubakar is the best man to do the job. “This gathering is to let the Yorubas speak in one voice. This is to tell us that this is where Yoruba is going. We are going to support Atiku Abubakar. We have seen that there are two major contenders; out of the over 70 candidates, but, Atiku Abubakar is the one we will vote for. It is Atiku that can tackle the herdsmen and Boko Haram. Buhari cannot fight them,” he said. In his remarks, Ayo Adebanjo, a chieftain of the group, said that the group which has members cut across major political parties in the state is not a PDP group but it decided to support the PDP candidate in the interest of the Yoruba race. “They cannot take us to the promised land. It is the PDP that can do that. We are not PDP. Our members are from different political parties, but we are endorsing the PDP candidate because of the resolve to implement restructuring agenda. On Saturday, vote Atiku; on Saturday, vote Atiku,” Adebanjo said. Eminent Yoruba leaders and elders present at the event held are former Secretary to the Government of the federation, Olu Falae, Senator Femi Okunrounmu, Ayo Adebanjo and gubernatorial candidate of the PDP, Seyi Makinde who represented Abubakar at the event.

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Thursday 14 February 2019

APC Lagos and Abeokuta’s outings: Matters arising Zebulon Agomuo

ast Saturday, February 9, 2019 President Muhammadu Buhari, presidential candidate of the All Progressives Congress (APC), was in Lagos for what was initially expected to be the mother of all rallies given the fact that it is the headquarters of the party. The venue, Teslim Balogun Stadium, in Surulere, was also the place where Buhari was chosen four years ago as the standard bearer of the APC at a presidential primary. Before the rally last Saturday, the party’s leadership and government in Lagos had initially announced closure of major roads and routes, but had to back down following widespread condemnation arising from the move. Government had also ordered the evacuation of all trucks and tankers on all the routes that the visiting President would pass. By Friday, February 8, Apapa route, which has for many years now remained a no-go-area was cleared of all the vehicular inhibitions. It was an action that many analysts and observers decried and those that were behind the shenanigan were termed hypocrites. Observers wondered why such sharp actions had not been taken, permanently, to end the menace of such vehicles on Apapa route, and why it would take the coming of the President to clear the way. “Why would such action be taken by a government that trumpets transparency? There was nothing honourable in the action they took,

Muhammadu Buhari

after all, the President needed to see things for himself and then the need to take immediate action at remedying the situation. In fact, the initial announcement of the closure of some routes ahead of the visit was provoking. And I think, that visit was not properly handled, no wonder it was poorly attended as I learnt,” an analyst, who spoke to BusinessDay on condition of anonymity, said. In what appeared a sharp response to that make-belief exhibition, many Lagosians decided to shun the rally. They gave the party and the President a cold shoulder. The venue of the rally, was halffilled unlike the case in many other

We will resist APC rigging plans, says PDP Rep candidate Iniobong Iwok

candidate of the main o p p o s i t i o n Pe o p l e’s Democratic Party (PDP) for the Federal House of Representatives Lagos Island Constituncy1, Violet Olaitan Williams, has said that the party would resist attempt by the ruling All Progressives Congress (APC) to rig Saturday’s National Assembly election in her constituency. The PDP candidate who is a cousin to late popular Lagos politician, Funsho Williams, stated this Wednesday, while embarking on a house-to-house campaign with her supporters, and to woo voters for the presidential candidate of her party, Atiku Abubakar ahead of Saturday’s election. William, a Maritime expert, urged party members to be vigilant and stand firm in the face of potential intimidation and harassment, stressing that there were intelligence reports that the

APC plans to use members of the National Union of Road Transport Workers (NURTW), to intimidate and harass voters in the constituency from Friday. “The APC know they are not popular with the people. Their candidate for the House of Representatives seat is one of the lawmakers without any tangible bill, motion and contribution in the green chambers in the last 4 years,” she said. “Besides, he is far from the people and even their members will tell you they have never seen him campaign or identify with the people. Ask our constituents to tell you if anyone has seen him campaigning. The PDP candidate also took a swipe at the Independent National Electoral Commission (INEC) describing the commission as “sell outs,” alleging that the commission was working with the APC to rig election in the constituency.

places the President had visited. The below-expectation outing so flabbergasted the organisers that unlike in other places where the party celebrated the huge turnout, it has however, remained mum over what transpired at Teslim Balogun Stadium. There has been neither posting of the crowd at the venue nor comment on the outing by the image makers of the party. While the party heavyweights were still ruminating over what happened in Lagos, the Abeokuta rally Monday dampened the more, the morale of many party supporters and leaders. The activities of hoodlums seeking political supremacy in the state nearly

turned what ordinarily should be a celebration into a fiasco. Pebbles and sachets of water were said to have been freely used on anybody in sight, even when the President was on the podium addressing the crowd. The rally ended abruptly. If the Abeokuta rally is anything to go by, it can simply be said that APC may be having a hard time in Ogun State, which ordinarily should be one of the states it should have recorded a landslide victory. Analysts say that going by what transpired in the two states in the last few days, outright victory in South West for Buhari, as was being touted, is no longer sacrosanct. Observers recall that the APC may be reaping the sour fruit of its acrimonious primaries in many states of the country. In Lagos State, it is peace of the grave yard as Governor Akinwunmi Ambode and his supporters have decided to tag along, pretending that all is well. The manner in which Ambode was denied the return ticket has not been forgotten by some aggrieved members of the party in the state. “For me, what happened last Saturday at Teslim Balogun Stadium was a reflection of the bottledup anger being nursed by many individuals in Lagos. This was also worsened by the pranks that were played by the party, trying to shield the President from seeing the ‘real Lagos’. I think people are getting wiser, nowadays,” Alison Hakeem, a public relations expert, told BusinessDay. The crisis that erupted at Abeokuta rally also had its root in the

troubled primaries. We now have a situation where a governor of a ruling party in the state is endorsing and campaigning for a governorship candidate of another party. Governor Ibikunle Amosun, an APC governor, is now working for a governorship candidate of the Allied Progressive Movement (APM), Adekunle Abdulkabir Akinlade, against his party’s candidate Dapo Abiodun. President Muhammadu Buhari did not help matters as he openly announced that the people were free to vote any candidate of their choice. That was the last straw that broke the Carmel’s back. “The interpretation is that the President is only interested in his own victory alone and does not care what happens thereafter. The crisis was expected when he received Akinlade at the Presidential Villa and raised his hands; meaning he adopted him. He also did the same for Abiodun. It was a clear complication,” an analyst, who asked not to be named, said. The party leadership may have expected the President to kill the controversy once and for all by plainly declaring to the people that they should vote the candidate of their party, Abiodun. But the way he handled the controversial matter ended of exacerbating the messy situation in Ogun. Today, Ogun State may have been lost by the party, a situation that does not go down well with many leaders of the party. It is the same situation in Imo State. As it stands now, the ruling APC is going into the general election a divided house.

Oyo APC raises alarm over impersonation to cause mayhem Akinremi Feyisipo, Ibadan

he All Progressives Congress, Oyo State Chapter has raised an alarm over the impersonation plan of the opposition parties in the state to implicate APC by unleashing mayhem on innocent people. The party said that it was privy to the perfected plan of opposition members masquerading as APC members with the branded apparels of the APC with pictures of President Buhari, Vice President Yemi Osinbajo, Governor Abiola Ajimobi, Adebayo Adelabu, Its gubernatorial candidate and

Abideen Olajide Ejiogbe, the Oyo State Chairman of National Union of Road and Transport Workers (NURTW) to unleash mayhem on innocent people In order to discredit the party and destroy the existing peace in the state. The Party’s Spokesperson, AbdulAzeez Olatunde alleged that the opposition elements have in their possession dangerous weapons, calling on the security agencies in the state to be vigilant and employ preventive efforts to counter the actions of these unscrupulous elements. According to Olatunde, “We are equally aware that they have

sewn Police uniforms to be used to perfect their rigging plans having realized that their defeat at the poll is imminent. “It is pertinent to also dispel the rumour that has been threading for days now. Oppositionparties are used to fabricating lies and engage in mudslinging. For some times now, they have insisted on blackmailing our party with the story that APC is giving the electorates Kuli Kuli and Garri to get their votes. We can state without any equivocation that it is the evil machination of the agents of darkness who want the mantle of leadership at all cost in the state.

INEC sensitises Nigerians through SMS Iniobong Iwok

head Saturday’s National Assembly and presidential election, the Independent National Electoral Commission (INEC) Wednesday began the sensitisation of Nigerians through Short message

Service (SMS) In the message the commission urged eligible voters across the country to go out and vote for the candidate of their choices in the election. In Saturday’s presidential election, Incumbent President, Muhammdu Buhari of the APC is

seeking re-election; about seventy one other presidential candidates are in the race. However, his main rival is former Vice-president, Atiku Abubakar, who is the candidate of the PDP. The Governorship and State Assembly election have equally been slated for March 2nd.

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Energy Report Oil & Gas

Power

Renewables

Environment

Despite 5,375mw transmission power supply still abysmal Olusola Bello

he Transmission Company of Nigeria announced that it was able to transmit 5,375MW megawatts last week, the last such a thing was experienced was in December 2017. Stakeholders have questioned the essence of celebrating a transmission that lasted just a few minutes. TCN transmitted a peak generation of 5375MW on the 7th of February 2019. Peak generation is actually the generation for that day to meet the maximum demand for the day, which is usually for a couple of minutes and not for the whole day. Over a day, load demand and utilisation changes on second by second basis, an industry operator said.

He therefore said Gencos can be exonerated that they are available and able to meet beyond this peak and much more. The nation has the capacity to generate 13, 000 Megawatts. Average available genera-

tion capacity have been on the average 8,000 Megawatts Daily. But Load approved for Daily Distribution have been between 3,700 Megawatts - 4, 800 Megawatts or at most 5,000mw. The limitation or inability

Benin Duisco get accolade from consumers reconnection to national grid

till basking in the joy of being energized with electricity supply after several years of power outage, electricity consumers led by Olu of Igbokoda, Oba Felix Balogun have commended the management and staff of Benin Disco for getting the town reconnected to the national grid. The elated paramount ruler noted that the distribution company did not only deserved praise for the reconnection, but also for being on ground with its technical staff to resolve likely teething problems that may arise due to the prolonged outage. He appealed to residents to be patient with the company in completing the power restoration to the 11 outstanding distribution transformers. 10 substations that were energized included; Larada, general Hospital, Ikuomola, Ilara, Orioketilu, Church substation, Okoga College road/Omotehin, GRA1, GRA4/NDDC and Broadstreet substation. Oba Balogun further urged residents to work hand in hand with Disco staff in ensuring that electricity supply reached all parts of Igbokoda, adding that now that electricity was restored,

they should ensure prompt payment of their bills to strengthen relationship with the power firm, assuring that he would personally lead the team collecting bills to facilitate payment “especially now that the company has come to our aid in ensuring that we have light.” Also reacting to the reconnection, several indigenes of Igbokoda praised Benin Disco for facilitating the reconnection of Igbokoda in collaboration with the Niger Delta Power Holding Company (NDPHC) back to the grid, adding however that the company should endeavor to complete the energisation of the remaining 11 distribution substations in the town and that it should give regular supply and prepaid meters to customers in the town. Tanimowo Igbokoyi and Folorunso Oyeyemi both indigenes of Igbokoda equally lauded the company for the restoration of electricity supply to the town saying “we thank you for making Ilaje happy. There is light now in Igbokoda. We are grateful to BEDC for giving us light after 10years. May God help them”. Addressing the town hall meeting, Chief State Head, Ondo/Ekiti State, Kunbi Labiyi remarked that

8,100MW. Since the last simulation several transformers have been added to transmission. With the new combined peak, Distribution companies have also increased capacity. However more work is needed on the Distribution capacities for the sector to fully stabilize. “TCN has continued to upgrade critical transmission infrastructure nationwide with the commissioning of over 40 power transformers and lines in the last two years, building of seven (7) brand new substations, diligently pursuing its Transmission Rehabilitation and Expansion Programme which is encapsulated in its 20-year transmission Expansion Plan. As at date, TCN’s wheeling capacity had increased from 5,000 in 2016 to 7,124MW in 2017 and 8100MW in 2018”, she said.

Shell trains special seabed survey professionals

the restoration was made possible through the collaboration between Federal Government through the Niger Delta Power Holding Company and Benin Disco and that the supply was from Ondo Transmission Substation. Labiyi said the Igbokoda reconnection was the Phase 1, while Phase 2 she said will entail the energisation of the outstanding 11 transformers, adding that the Phase 3 will connect new communities yet to be on the national grid. She however told the Igbokoda community that the present Ondo Transmission Station feeder which supplies electricity to Igbokoda town was lengthy and thus prone to fault, adding that the 132kva Erinje substation if worked upon by federal government, would serve the whole of Ondo South including Igbokoda more. The Ondo State Chief state head also said because of being out of supply for a long period, the residents had violated safety rules including trading under power lines and right of way, even as the traditional ruler and the Igbokoda local government agreed to ensure enforcement on the violation of Right of Way and other safety misdemeanors.

Olusola Bello, Team lead, Analysts: Isaac Anyaogu, Stephen Onyekwelu, Graphics: Joel Samson.

to go beyond the thresholds are linked to dynamics of Tariff Shortfalls ; Market Shortfalls; Market Settlement Crises which bothers on Low Market Remittances of between 25% - 30% attributed to the foregoing.. Operational/ Overhead

burden, Licence Acquisition loan & Post Licensee Loans adversely restructure negatively by recession. Despite this development power supply has not improved. The TCN had in a statement signed by Ndidi Mba, general manager, public affairs stated that the last peak generation of 5224 MW which was also successfully transmitted by TCN, was attained on 18th December, 2017. This has now been surpassed by the new peak of 5375MW. According to her, the current capacity of Generation companies nationwide is 7,450MW which is expected to significantly increase with the expected recovery of all the generators at Egbin by the management of Sahara Energy. The capacity of Transmission based on the simulation of December 2018 is

n another first in the Nigerian oil and Gas industry, Shell Nigeria Exploration and Production Company (SNEPCo), has trained three Nigerians in special seabed survey, a discipline largely dominated by expatriates in the country’s offshore exploration activities. Iwinosa Aghedo, Peace Adepoju and Oluwapelumi Okewusi have completed master’s degrees in UK universities specialising in Geotechnical Engineering and Hydrography on the sponsorship of SNEPCo, in collaboration with the Nigerian Content Development and Monitoring Board (NCDMB) in a programme designed to bolster Nigerian content and develop local capacity in specialised areas. Responding to the successful completion of the studies by the beneficiaries in record time, Managing Director of SNEPCo, Bayo Olulari, said, “From less than 10 percent Nigerian manpower when we started production at the Bonga field over 13 years ago, we have grown to over 95 percent and the new scholarship initiative is targeted at further increasing the Nigerian content of our manpower.” Speaking at a reception to welcome them back to

the country, one of thebeneficiaries, Aghedo, said, “We promise to make the scholarship effective and be worthy ambassadors of the programme.” Her colleague, Miss.Oluwapelumi Okewusi added, “Getting to the top is the easy part. Staying at the top is the hard work, we will put in the hard work.” In his remarks at the reception, General Manager, Business and Government Relations of Shell Nigeria, Bashir Bello, said, “The scholarship is the outcome of a 2012 vision when SNEPCO and NCDMB agreed to sponsor three Nigerian students to post graduate training in the United Kingdom to close identified gaps as part of NCDMB support for the SNEPCO Seabed Survey contract waiver in that year.” Shell’s Nigerian Content Manager, Olanrewaju Olawuyi, said the three scholars were selected through a rigorous selection process from the 36 states and the Federal Capital Territory and, while in school in the UK, they received regular support through regular interactions and calls. “I am excited at the successful fit of the candidates,” he said. The scholarship is part of the regular SPD C JV Post Graduate Scholar-

ships scheme launched in 2010 with the aim to build a talent pipeline in host communities. The scheme offers successful applicants scholarship for all the direct and indirect activities leading up to the award, cost of foreign education until return to Nigeria. Since the 2010 launch, except for 2016, SPDC has awarded 10 full scholarships annually to successful applicants for a one-year Master’s programmes in oil and gas-related disciplines at top United Kingdom universities. The scheme has recorded 79 beneficiaries since inception. The Shell scholarship schemes are arguably the most extensive private educational sponsorship initiative in Nigeria. Launched in 1953, the scholarships have evolved over time to cater for different educational categories of students, ensuring that every Nigerian child is given an opportunity to reach full potential irrespective of the family’s economic status. Additionally, Shell supports the academia in Nigeria with other key programmes that include Centres of Excellence, Professorial Chairs, Shell EcoMarathon, Sabbatical and Research Internship, Research Support, and Data Support.

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Thursday 14 February 2019

Energy Report

What Nigeria stands to gain from execution of Bonga South west Olusola Bello

hell Nigeria Exploration and Production Company’s deep water projectBonga South West will be executed in a manner that will maximize Nigerian Content benefits, according to industry stakeholders. Simbi Wobote, executive secretary, Nigerian Content Development and Monitoring Board, (NCDMB) who disclosed this to BusinessDay in Lagos urged Nigerian companies to brace up for the challenge. He said the execution of the multi-billion dollar project must benefit the national economy much more than previous deep water ventures. “We will apply the lesson learnt from previous exercises to ensure that we do not make the same mistakes. SNEPCO and EPC contractors will have to go deeper than before. The contractors must understand Nigeria and the job scopes that are possible in-country. They should know that before you take

jobs abroad, you must satisfy the local market. Only the things that cannot be done in Nigeria will be allowed to be taken abroad.” Most scopes of the project will be executed in-country and only aspects of the job that will be impossible to execute locally will be taken abroad Shell Nigeria Exploration and Production SNEPCO has

concluded negotiations with the Nigerian National Petroleum Corporation (NNPC) on the $10 billion Bonga South West Aparo development There is now a clear commercial framework, aligned with stakeholders and the confidence to move towards Final Investment Decision (FID). SNEPCO has conse-

quently announced to the Nigerian National Petroleum Corporation (NNPC ) and its unit partners involved in Bonga South West Aparo development, that it have reached agreement on the key commercial terms necessary to move the development forward. Following the Oil Mining License (OML)118 Head of Term agreement, the com-

pany has announced the release of BSWA invitation to Tender, where Nigerian and international companies on the agreed bid list are requested to bid for the various contract packages that make up engineering procurement and construction of the BSWA projects. An industry source that disclose this development to BusinessDay said this an important step that will allow the companies , the government and investing partners to understand the cost of the project and if within expectations, take the project to the final investment Decision. The agreement covers related production sharing contract interpretation dispute. It also sets an incentive and fair framework for developing this world class opportunity while opening further opportunities in the prolific Nigerian Deepwater oil and gas industry. The BSWA project includes the construction of a new Floating Production, Storage and Offloading (FPSO) unit with an expected peak production of 225,000

barrels of oil per day. The BSWA field straddles Oil Mining Leases (OMLs) 118, 132 and 140. However, the bulk of BSWA resources are located in OML 118 but it also extends into OMLs 132 and 140, operated by Chevron, where it is called Aparo. SNEPCo is the operator of the BSWA project in line with the agreement between the NNPC, Esso Exploration & Production Nigeria (Deepwater) Ltd., Total E&P Nigeria Ltd., Nigerian Agip Exploration Ltd., Texaco Nigeria Outer Shelf Ltd., Star Ultra Deep Petroleum Ltd., Sasol Exploration and Production Nigeria Ltd. and Oil and Gas Nigeria Ltd. Bayo Ojulari, Managing Director of SNEPCo had told Reuters last year that Shell and its partners would decide this year on whether to go ahead with the development of the oilfield. He added that the project, one of the country’s largest with an expected production of 180,000 barrels of crude oil per day, would generate profit at crude oil price of below $50 per barrel.

We must get our acts together to have a viable downstream sector Petro-chem Refinery is offering opportunity to cut down Nigeria’s Petroleum import by working assiduously on it’s plant of about 20 000 barrel per day. Emmanuel Iheanacho the Chief executive officer of the refinery who spoke to BusinessDay’s Frank UZUEGBUNAM and Harrison Edeh on the efforts to ensure the refinery comes on stream within a short while, also spoke about the challenges. Excerpt Can you give a breakdown of what it takes to commence building a refinery? ou articulate your vision in terms of your requirements to build a refinery .You reduce it down to business plan,you do the modelling and once that is acceptable; you then move on the next stage which is front -end engineering. From the front-end engineering once that passes the Department For Petroleum Resources,DPR,then you go to the detailed engineering. If that passes,you are now granted the authority and permit to construct. That is where we are now. We have the authority to construct from the DPR. The name of the refinery is Eco Petro refinery .It is located in Lagos in Tomaro Island.

How are you addressing concerns of Finance in funding your refinery project ? It is a very big challenge for virtually everybody, and that was why most refinery propositions don’t pass. They will

pass all the stages, do all the studies but when it comes to finding the money, Nigerian banks don’t have the resources. Government can help, not by actually giving money to you, but by standing as a ‘surety’ for the approvals that are given by the DPR. How much do you require for your project to sail through? Every project is unique in its in own terms. If for instance am am doing a 20 000 barrels per day refinery.Someone else could be doing much more.The Price cannot be the same because it depends on the logistics of bringing product to where you are,what you need,and probably a port in association with refinery and factoring in the cost too. These things make the price tag for building refineries to vary. .In our own situation and given our own location in an Island,a record sum that would set us up is about $116million. Having said that, we know that it is a lot of money and once the refinery is built and

How does non passage of the PIGB rub off on your efforts so far, does it really worry you? It worries me, and we must get our acts together to be able to move forward. You know, Nigeria is a big country, and we have been in the oil business much longer than the people who are just finding oil now. We really should have been able to rationalise all the governance issues, to advance our oil sector business. That we have not done it is not a very nice thing. Of course, we are still alive and once there is life there is hope. We must keep focus on what we want to achieve and drive our vision accordingly.

Emmanuel Iheanacho

if we are able to realise a full range of products that we see in the slate analysis, then we should be able to recoup that investment within a short while. The Most important thing is that we must move a way from exporting our oil raw. We must add value to it through local refining and that is why you see us inten-

sify our efforts to ensure this is delivered in a record time, and finding way to create profit opportunities that can be re-invested into the system such as the opportunities for the transfer of Technology into Nigeria. Most importantly, the product would be available and cheaper than what you have now.

When do you see your refinery commencing operations? Two years from now, we are hoping. Are you also targeting our neighbouring African country? That is our core target. Some would argue that if all these

refineries come on stream, there would be too much availability of Petroleum products, but it is not so. We must be able to create our market and trade among ourselves as well as displace the Europeans who supply to them and being able to own our market. Have you met with the CBN governor since you have commenced your refinery project, as we learnt authoritatively the supports being given Dangote? I have never gone to the CBN governor. We have gone into the market, because ours is a concept that is built not on subsidy of products, or to be subsidized by anyone. We want to build a market plan and sell at a price that enables us make profit, and not necessarily seeking subsidy from the government. I have read the CBN’s governor interview while he pledged support for those building refinery. We are going to approach him, and we would take advantage of any positive thing that is in there for us.

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FINANCIAL TIMES

World Business Newspaper

Trump shows signs of support for border funding deal US president moves towards plan after earlier saying he was not ‘happy’ or ‘thrilled’ Courtney Weaver

onald Trump appeared to be increasingly supportive of a bipartisan congressional plan to avert another government shutdown, raising hopes the president could sign the compromise measure, despite the fact that it does not allocate $5.7bn for his wall. Mr Trump initially panned the proposed legislation, telling reporters on Tuesday afternoon that he was “not happy” about the planned compromise. However, after speaking to Republican Senator Richard Shelby, one of the lead negotiators on the agreement, Mr Trump appeared to soften his tone, asserting on Twitter that the bill would allow him to get “almost $23 BILLION for Border security” and suggesting that he no longer needed money specifically allocated for the wall. “Regardless of Wall money, it is being built as we speak!” Mr Tump tweeted. The tentative agreement, struck late on Monday night, would provide $1.4bn to build 55 miles of barrier fencing along the border with Mexico — significantly less than the $5.7bn Mr Trump sought. The wall’s length would be one quarter of

what the White House originally demanded. However, Republican congressional leaders have pressed the point that the bill will provide new border security funds that can be spent flexibly, opening the door for Mr Trump to portray the deal as a win. Wall Street was heartened by the signs of compromise on Capitol Hill, with the benchmark S&P 500 rising 1.3 per cent. “The US government shutdown seems to have been averted and there’s a strong chance that import tariffs on Chinese goods will be postponed,” said Kit Juckes, global head of currency strategy at Société Générale. In addition to some funding for Mr Trump’s wall, the deal reached by Democratic and Republican negotiators attempts to broker a compromise on a dispute about the number of detention beds allocated to Immigration and Customs Enforcement, the agency that holds people who cross into the US without the necessary papers. ICE currently uses 49,000 beds, breaching a congressionally mandated cap of 40,500. The tentative deal would cut the number of beds to the existing cap by the end of the 2019 fiscal year. However, Republicans have argued that the agreement al-

Career ups and downs of Donald Trump’s World Bank pick David Malpass has had stints in Washington and was chief economist at Bear Stearns James Politi

arry Kudlow, US President Donald Trump’s top economic adviser, still remembers the time in the early 1990s when he brought David Malpass into Bear Stearns, the Wall Street investment bank that eventually collapsed during the financial crisis. Mr Malpass had just ended two stints in Washington working for the Ronald Reagan and George HW Bush administrations, and Mr Kudlow — then chief economist at Bear — wanted him on board to cover global economic trends. “I knew how well-versed he was in international affairs and macroeconomics in general, and he was terrific,” Mr Kudlow said in an interview on Monday. “He fit right in . . . and did a great job.” Mr Malpass’s hiring launched a fifteen-year career at Bear, which set the stage for the 62-year-old Michigan native to take a senior role in the US Treasury under Mr Trump, and this month, to be tapped by the US president to lead the World Bank. To his supporters inside and outside the Trump administration, Mr Malpass is the right man for the job: a supply-side economist who will refocus the multilateral lender on helping the world’s poorest countries. “Low tax rates for growth, minimal regulations for

growth, stable money for growth: he will bring that to the bank,” Mr Kudlow said. But his record as an economist at Bear has attracted criticism, as it has included various controversial prescriptions, visceral criticism of multilateral institutions, particularly the International Monetary Fund, and reassurances about the state of the credit markets even as his own investment bank was unravelling, leading to Bear’s eventual sale to JPMorgan Chase in 2008. Throughout his career, Mr Malpass also has demonstrated a strong inclination for fixed exchange rates — which is not uncommon among his strain of conservative economists but is at odds with most mainstream economists’ belief that floating currencies are vital economic shock absorbers, particularly during a crisis. “If his ideas were implemented, they would be a profound departure from the current norm for most economies,” said Brad Setser, a senior fellow for international economics at the Council on Foreign Relations in Washington. Some former colleagues at Bear — run at the time by Jimmy Cayne, a cigar-smoking, bridge-playing chief executive known for his stinging observations — remember Mr Malpass fondly. They stress that he was simply challenging conventional wisdom.

lows for up to $750m of Department of Homeland Security funding to be reallocated to the detention programme, potentially allowing ICE to fund an additional 13,000 detention beds. Conservative commentators, including Fox News host Sean Hannity, have denounced the deal, and Mr Trump has listened closely to Fox’s anti-immigrant critics. However, some conservative commentators, including radio personality Rush Limbaugh, suggested that Mr Trump could portray the deal as “a win” be-

cause he had forced the Democrats to compromise as well. “Nobody can say he isn’t trying. Nobody can say he’s caved on the premise of controlling illegal immigration and shoring up the border,” Mr Limbaugh said on his radio programme. Mr Trump could still choose to veto the bill, or else sign it, but then seek other ways to get additional funding for his wall, such as appropriating the money from other agency budgets, or declaring a national emergency at the border. Senior Republican lawmakers have strongly urged him

against taking this approach. Should Mr Trump proceed with an executive action, the move could potentially be bogged down by legal challenges and blocked by the courts. On the other hand, it could potentially offer Mr Trump wriggle room with his base. The shutdown that began in December lasted 35 days — the longest in US history. Asked by reporters on Tuesday if he would consider calling a national emergency to build the wall, Mr Trump replied: “I’m considering everything.”

Ikea looks to launch sales platform that would include rival products Retailer sees opportunity between its own website and ecommerce giants such as Amazon

Richard Milne

kea is exploring the launch of an online sales platform offering furniture not just from the famous flat-pack retailer but also from rivals as part of its big transformation. The world’s biggest furniture retailer is finalising the details on its first test of selling on a third-party website such as China’s Alibaba or Amazon, according to Torbjorn Loof, chief executive of Inter Ikea. But Mr Loof also told the Financial Times that there had to be something between Ikea’s own website and general sites such as Amazon that sold almost everything. “What are the opportunities between the dominating, big, global platforms, and the company website? I think there are tons of opportunities. Like Zalando: they’re a kind of platform for fashion and clothes. I think it’s a very interesting area to explore,” he added. Zalando has become Europe’s largest online fashion retailer by selling clothes from multiple brands, none of whom are own-

ers of the German website. Mr Loof underscored that Ikea was not yet in talks with any of its rivals but added that it would like to be involved in the creation of any industry-wide sales platform. “You like to control your own destiny so in that sense if you have the size and the possibility that’s true [that Ikea would like to create it]. I think in the next five, 10 years, we will see what we now call the platform developing,” Mr Loof said. Ikea is undergoing some of the biggest changes in its history as it tests concepts from leasing furniture and selling it on other websites to having city-centre shops and offering home assembly to its customers. It has drawn attention previously for telling the Financial Times that it was planning trials of selling on third-party websites. Mr Loof said such discussions had taken longer than expected but that one test should start soon. Asked if it would be with Amazon, he said: “I don’t think it’s Amazon.” He said Alibaba and Amazon had different models with the

former’s Tmall “a shop-in-shop, more like a shopping centre”. He added: “We wanted to see and test and learn — to say: could this be something for us? For a specific part of the range or in specific types of markets?” The chief executive of Inter Ikea, which owns the brand and concept behind the furniture retailer, said he expected routes to online sales to open up in the coming years and that he wanted his company to be part of that. “We are always exploring. You could say within the digital arena we’re exploring the third-party platform, Ikea engaging on other platforms, the platform business in the industry as a whole, how can we make our own ikea.com much stronger and better,” he said. He added: “It is also about how you connect. If you take home furnishings, for instance — how you connect communities, how you connect knowledge, how you connect the home. It’s not only furniture, it’s paintings, it’s the do-it-yourself part. There are many different constellations that can and will evolve over the years to come.”

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FT Why investors crave a return to the art of stock-picking

US to deploy more troops in Poland, ambassador says

For a long time ‘growth’ stocks have done better than ‘value’ — but that could be changing

Trump administration ratchets up engagement in central Europe with ‘significant’ military boost James Shotter

Richard Henderson

t has not been a great time to be in the business of stock picking. Years of gently rising markets have rewarded investors who chase fast-growing companies, rather than rooting around for businesses trading below their intrinsic value. In the five years to last October, for example, the return of the Russell 1000 Value index was roughly half that of the equivalent Growth index. But things seemed to change in the autumn. Since then, Value has outperformed Growth by more than 2 percentage points. Now, investors schooled in the stock-picking tradition of GMO’s Jeremy Grantham; Baupost’s Seth Klarman; Oaktree Capital founder Howard Marks; and Warren Buffett, are sensing a shift after that long run of under-performance. “It’s our time,” says Michael Mullaney, director of research for Boston Partners, a value equity fund manager. The $81bnin-assets firm has loaded up on shares in banks, insurers and healthcare companies it believes have dropped too far. “I’m hoping we can see value stand up on its own two feet for an extended period of time,” he says. So what happened? Brent Fredberg, director of the investments group at Brandes Investment Partners, says weaker earnings growth for the tech sector, combined with a broader fragility in markets, have changed the outlook for those who claim to be able to unearth bargains. Disciples of this approach buy stocks that seem cheap by metrics such as book value, which measures the difference between a company’s assets and its liabilities. Growth strategies, by contrast, tend to home in on stocks trading well about their book value, with above-average increases in sales or profits. As such, voguish sectors such as technology, payments and biotech have been a big draw. Brandes, a $24bn-in-assets value fund manager modelled on the ideas of Benjamin Graham, Mr Buffet’s mentor, is now “set up extremely well for an extended period of value outperformance”, according to Mr Fredberg. The firm has added financial and healthcare stocks to its portfolios, in addition to housing shares. “We’ve seen glimpses of value’s potential in the past that hasn’t come to fruition, but we sense this is different,” he says. By one commonly-used yardstick, value stocks look cheap. The trailing price-to-earnings ratio of the 120 companies in the S&P 500 Pure Value index — which sifts value stocks by assets, earnings and sales — has dropped one third since October to 10.8 times. This compares with a multiple of 18 times for the broader S&P 500 and 25 times for the equivalent index of growth stocks. “Right now US value stocks are

Thursday 14 February 2019

President Muhammadu Buhari says he has recovered from a mystery illness that saw him confined to a sick bed in London for much of his first term © AP

Nigeria’s voters confront an uninspiring choice Africa’s most populous country has a serious democratic deficit The editorial board

n a year of elections in Africa, few will be more important than Saturday’s poll in Nigeria. The west African oil producer is the continent’s biggest economy, largely by virtue of its huge population, which is closing in on 200m and could double again in the next decades. It is also a bellwether. When, in 2015, Nigeria transitioned peacefully from one democratically elected government to another, it was seen as a milestone. That is why much rides on this election, particularly after the flawed exercise in the Democratic Republic of Congo, where there is ample evidence the vote was stolen. If Nigeria can hold a transparent poll, it could do something to restore faith in the continent’s zigzagging progress towards greater democratic accountability. Unfortunately, the omens are not good. There have already been credible complaints about the conduct of the state in the run-up to election day. An independent newspaper office was raided. The chief justice was suspended for alleged corruption. So close to an election in which the judiciary may play the role of arbiter, that smacked of manipu-

lation. The opposition is already crying foul. In what is becoming a well-thumbed election playbook, it has declared the poll to be rigged even before it has taken place. If there is reason to be dubious about the electoral process itself, then the principal candidates hardly inspire confidence. On one side, President Muhammadu Buhari is running for four more years. “Running” may be too generous for a candidate who spent extended periods of his first term on a sick bed in London. Though Mr Buhari says he is fully recovered from his mystery illness, campaign speeches that last barely more than a few minutes are not exactly proof of his physical fitness. In interviews, he appears befuddled. Nor does Mr Buhari have a sterling record. The economy has barely limped out of recession. Security gains have been tenuous. Even his much-vaunted anti-corruption drive has failed to deliver significant scalps nor convincing systematic change. His main opponent, Atiku Abubakar, is not greatly more convincing. He offers a more freemarket approach, promising to float the naira, encourage foreign investment and privatise the state oil monopoly. But Mr Abubakar, a former vice-president, has been at the nexus of politics and business

so long that almost no one believes he represents a break from the past. He has been dogged by allegations of corruption, which he denies. The sad reality of Nigerian leadership is that the elite — whether in military or democratic governments — has siphoned off the country’s oil wealth, leaving the rest of the populace to fend for itself. Shamefully, Nigeria has more people living in absolute poverty than India. Policies that could make an impact, including investment in health, education and infrastructure, have been wilfully neglected. In a system where candidates jump between political parties as if they were changing buses, personality and money trump policy discussion. It is hardly surprising that even in the historic 2015 election, turnout was a less-than enthusiastic 43 per cent. Whoever wins, Nigeria’s political system needs an overhaul. For a start, the informal rule that sees power oscillate between the mainly Muslim north and the mainly Christian south should be jettisoned. The best candidate this time would have been Yemi Osinbajo, Mr Buhari’s running mate. But as a Christian southerner in a year of the “northerners’ turn”, his candidacy was a non-starter. That is a shame. Nigeria needs all the good leaders it can get.

Juventus to test ‘Ronaldo effect’ in international bond market

Italian football club seeks fresh funding after paying €100m for Portuguese player Robert Smith

uventus is looking to tap the international bond markets for the first time, as the storied Italian football club seeks to raise fresh funding after paying €100m to sign Cristiano Ronaldo last year. The club, which is listed on the Milan Stock Exchange, is looking to raise €150m of five-year debt, expected to offer a yield of around 3.5 per cent. Morgan Stanley is leading the bond sale, along with Italy’s UBI Banca. The bond does not carry a credit rating. The bond’s prospectus indicates that the club will use the new funds to repay existing debt. As of June, Juventus had €310m of debt, including loans with Italian banks such as Monte dei Paschi di

Siena and factoring facilities with lenders including UniCredit. The bond’s investor presentation highlights that the club’s revenues have risen 161 per cent over the past eight years, reaching €402m in the 2017/18 period. It also refers to the Agnelli family, which acquired Juventus in 1923 and is still majority owner, as a “stable and committed” shareholder. Ronaldo’s €100m signing fee, a figure which excludes €12m of additional expenses, is listed at the top of a “key acquisitions” section of the deal presentation. It also flags that a football jersey introduced after Ronaldo’s signing sold out in two months. Juventus is not the first Italian football club to tap the international markets in recent years, with Goldman Sachs helping

Inter Milan raise a €300m bond at the end of 2017. Inter Milan is majority owned by Chinese retail conglomerate Suning. Inter’s crosstown rivals AC Milan raised a similar amount of debt from US hedge fund Elliott Management earlier that year, to help fund a Chinese businessman’s acquisition of the club. Elliott dramatically took over the club last year after this Chinese owner was unable to keep paying its substantial debt. A little known Hong Kongbased private equity firm LionRock Capital last month bought a 31 per cent interest in Inter Milan, defying expectations that Suning would take full control. China’s state television broadcaster publicly criticised Suning for their “irrational” investment in the club in 2017.

he US plans to significantly increase its troop numbers in Poland as the Trump administration ratchets up its engagement in central Europe, according to the country’s ambassador to Warsaw. Alarmed by Russia’s growing assertiveness, Polish officials have been lobbying hard to persuade the US to establish a permanent military base in their country, and last year offered to provide up to $2bn towards funding it. Georgette Mosbacher, who took office as US ambassador to Warsaw last year, said America’s 4,000-strong troop presence in Poland would increase but stopped short of saying a permanent base would be established. “The Department of Defense sees [the forces of the 21st century] as . . . more agile, more rotating, rather than where you have physical hospitals and homes and you bring your families,” she said in an interview with the Financial Times. “But in terms of a presence that is undeniable and a large number of American troops here, that’s a given. And I think [the Poles are] going to get most of what they want.” Asked whether the increase would run into the hundreds or thousands, Ms Mosbacher said: “It will be significant. It passes the hundred mark, the hundreds mark.” Ms Mosbacher’s comments come as Washington launches a diplomatic push in central Europe, where US officials are concerned that Russia and China have established a foothold in recent years. On Monday Ms Mosbacher — a friend of US president Donald Trump and former chief executive of cosmetics group Borghese — hosted colleagues from US embassies in 12 EU capitals to discuss how the US could support the Three Seas Initiative, a forum dreamt up by Poland and Croatia to promote central European economic integration. Meanwhile, Mike Pompeo, US secretary of state, launched a tour of the region with a visit to Budapest in which he pledged to try to prevent central European states from falling into the orbit of Moscow or Beijing. In recent weeks, the US has expressed concern about the influence of Chinese telecoms company Huawei in the region, seeing it as a potential conduit for Chinese intelligence services to snoop on host countries. Huawei strongly denies it is vulnerable to such interference. Gordon Sondland, US ambassador to the EU, who was in Warsaw for the Three Seas talks, said it would be hard for the US to co-operate with countries using Huawei’s technology. He urged those that already did so to rethink if they wanted to continue working closely with the US. “5G [mobile] is the game changer . . . and given that it’s the gamechanger . . . even if a country has a significant investment today in Huawei 4G or below, it would probably behove them to look at starting with a clean sheet of paper with western technology,” Mr Sondland said.

Thursday 14 February 2019

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Hong Kong to allow extradition of criminals to China for first time

Critics worry Beijing could misuse new law for political purposes Nicolle Liu

ong Kong plans to make it possible for the first time to extradite criminals to China in a move that critics worry could be misused by Beijing to detain people passing through the international business hub for political or other reasons. The territory’s security bureau this week proposed to amend a law that has long prevented the transfer of fugitives from Hong Kong to either China, Macau or Taiwan, to instead allow extradition requests from the three jurisdictions to be considered on a case-by-case basis. The suggested changes would allow Hong Kong’s chief executive, who is appointed directly by Beijing, to issue arrest certificates. A final decision on the surrender of fugitives would be decided by a court as a safeguard for defendants’ legal and human rights. The move is likely to intensify fears that the territory has lost some of the autonomy from mainland China granted to it under the Basic Law, a mini-constitution that guarantees Hong Kong’s legal autonomy and civil rights. Hong Kong and China have been trying to move closer in judicial matters, with measures to introduce mutual recognition of civil and commercial judgments in their different jurisdictions in January, and the easing of barriers for setting up law firms. But the territory has also been rocked by cases of people going missing from Hong Kong and reappearing in China, raising fears that an extradition treaty could be misused for political purposes. In 2015, five Hong Kong booksellers selling politically sensitive publications vanished with all of them eventually reappearing in China. One of them, Lee Bo, disappeared from Hong Kong before turning up in China, claiming that he went there “voluntarily” to “assist with [an] investigation”. Chinese billionaire Xiao Jianhua was abducted from Hong Kong by Chinese agents in 2017 and has not been seen since.

Hong Kong has signed longterm mutual extradition agreements with 20 countries, including the US and UK, and has agreed to provide criminal legal assistance to 32 others. Under the current law, the city’s Legislative Council handles extradition arrest requests. However, other parts of China, such as Macau, are currently explicitly excluded from any extradition arrangements. The proposed amendment of the law, which the government is pushing to be approved by Hong Kong’s legislature by July, stems from an alleged murder in Taiwan last year. Without extradition arrangements, the government was unable to send a Hong Kong man suspected of murdering his pregnant girlfriend in Taipei back to Taiwan for trial. Instead, he is facing charges for allegedly stealing his girlfriend’s possessions in Hong Kong. Pro-democracy legislative councillors Alvin Yeung and Dennis Kwok said that in a meeting on Wednesday with the secretary for security, the government made it clear the amendment was a stepping stone towards a full extradition agreement with the mainland. Mr Kwok said he would not accept the proposal. “We don’t trust the integrity of the judicial system in China.” He added that anyone who transferred through Hong Kong airport, a major international hub, would be at risk of extradition to China under the amendment. He said the case of Meng Wanzhou, the chief financial officer of the country’s leading telecom equipment maker, Huawei, who was detained in Canada last year under an extradition treaty with the US, could happen to a US businessperson transiting in Hong Kong. Ms Meng was arrested after the US accused her of fraud. Philip Dykes, chairman of the Hong Kong Bar Association, speaking in a personal capacity, said a full extradition agreement typically would indicate an acceptance of the other jurisdiction’s judicial system. He said that the UK and other countries had concerns over China’s legal system, such as secret trials and the independence of the judiciary.

Bank of America spends $400m on Brexit preparation Vice-chair warns other banks also spending large sums ahead of March 29 divorce Laura Noonan

ank of America has spent $400m on moving staff and operations for Brexit that would not be reversed even if the UK changed its mind about leaving the EU, vice-chairman Anne Finucane said on Wednesday. “Multiply that by the number of financial institutions that are doing the same thing and it adds up,” Ms Finucane told the fourth European Financial Forum in Dublin of the impact that Brexit will have on the UK banking sector. Preparations so far by Bank of

America include moving $50bn of banking assets to Dublin base that now has 800 people, and creating a 500 person trading operation in Paris. The volume of trading assets to move to Paris has not yet been set. The $400m figure is at the top end of estimates that the bank has previously flagged as the potential cost of Brexit. “Dublin is our headquarters for our European bank now full stop,” she said. “There isn’t a return. That bridge has been pulled up . . . From a trading perspective, likewise Paris would be the European trading arm.”

Marchers in Hong Kong protest against the disappearance of five booksellers who pro-democracy advocates argue were detained in China for political reasons. © AP

Global refugee finance demands public-private co-ordination New sources of funding are needed to fill $10bn UNHCR hole Gary Kleiman

s the western hemisphere’s worst refugee crisis unfolds with 3m Venezuelans pouring into the country’s Andean neighbours and relief agencies projecting that number could double amid a continued stand-off between rival presidential claimants Nicolás Maduro and Juan Guiadó, the international community is again scrambling for emergency funding. The appeal comes as the budget for the main United Nations relief arm, the High Commissioner for Refugees, has been running 40 per cent below the $25bn requested in 2017. Development lenders like the World Bank and Inter-American Development Bank are in the early stages of modest commitments, and private financial market participants are just beginning to consider their involvement, potentially in the shape of innovative products such as refugee bonds. Meanwhile, three-quarters of displaced populations are hosted in developing countries. The Global Compact for Refugees finalised last year after two years of negotiations, and endorsed by all UN members except the US and Hungary, calls for new publicprivate arrangements and investments to support governments and

companies on the front lines, but offers no specific delivery models as global needs continue to increase with refugee numbers at almost 70m as of mid-2018, according to the UNHCR. The pact is voluntary and depends on improvised field relationships, and in Latin America’s case and elsewhere a joint official-commercial funding unit could generate resource and policy breakthroughs. Humanitarian groups have tried for years to change the UNHCR’s budget formula, which relies on non-enforceable pledges and draws from a shrinking donor base, with 10 countries contributing nearly 80 per cent of the total. They argue for mandatory assessments as with peacekeeping missions, or separate public goods levies such as on airline tickets that could be earmarked for refugees. As populist anti-immigrant leaders have assumed power in some advanced and developing economies these proposals have stalled, as an initial lack of political will shifted to fierce resistance. UN officials moved from acknowledging the difficulties to considering internal changes a dead end, and instead urge that additional revenue comes from wider system partners such as the World Trade Organization in the form of host country export preferences. With Jordan, the European Union embraced this track and of-

fered duty-free entry for garments using Syrian refugee labour as part of a broader agreement with bilateral and multilateral donors including the International Monetary Fund. It charted a standard adjustment programme for fiscal austerity amid the influx. Subsidy cuts sparked street unrest, forcing King Abdullah to replace his prime minister and cabinet, and the fund has since come under pressure to rework facilities for protracted refugee emergencies. The World Bank in 2016 joined with the Islamic Development Bank and European Bank for Reconstruction and Development to create a concessional lending platform, the Global Concessional Financing Facility, paving the way for $1bn in infrastructure projects for Jordan and Lebanon as middle-income economies. The bank also recently opened a $2bn window in its low-income International Development Association arm for borrowers like Bangladesh and Ethiopia. It just announced that Colombia, where almost a million Venezuelans have crossed the border, will be the third middle-income country eligible for discount rates, and Luis Moreno, president of the Inter-American Development Bank and himself a Colombian, intends to raise a regional $1bn fund for refugee social protection and job creation.

Stocks higher as Trump opens door to trade truce extension Energy shares progress as supply cuts by Opec and Saudi Arabia fuel oil price rally Michael Hunter and Hudson Lockett

lobal stocks rose and oil prices extended their rally after Donald Trump opened the door to an extension of the US-China trade truce beyond the March 1 deadline. The US president said he could allow more time for negotiations with Beijing if the sides were close to a “real deal”. That statement came as trade talks between the world’s two biggest economies continued in Beijing this week. China’s CSI 300 added 2 per cent, building on the previous day’s gain of 1 per cent, while in Hong Kong the Hang Seng was up 1.2 per cent. London’s FTSE 100 rose 0.4 per cent, as did Frankfurt’s Xetra Dax 30. US futures pointed to a rise of 0.1 per cent for the S&P 500 after it rose 1.2

per cent overnight. “A sustained bullish outcome from trade discussions may still need a more concrete resolution, [but] the softening of stance does suggest . . . willingness to reach a deal [and] progress being made in talks so far,” said Johanna Chua, a strategist at Citi. The gains for Brent crude oil — which passed 2 per cent for the last two sessions — took Brent to just under $63. That helped the energy sector. The Stoxx index tracking it rose a further 0.5 per cent, building on a 0.6 per cent rise over the previous session after Khalid al Falih, Saudi Arabia’s energy minister, told the Financial Times the kingdom would deepen production cuts. Tokyo’s Topix rose 1.1 per cent to its highest level in two months.

Forex The New Zealand dollar jumped as much as 1.7 per cent after the country’s central bank said it expected to leave interest rates at their current levels for the rest of 2019 and all of 2020 — in contrast to increasingly dovish leanings at other global central banks. The Reserve Bank of New Zealand held its official cash rate at 1.75 per cent as expected, and said in its monetary policy statement that “we expect to keep the OCR at this level through 2019 and 2020”. However, it added that the “direction of our next [rates] move could be up or down”. The central bank’s economic projections tipped the cash rate to average 1.8 per cent through 2021, before climbing to 2.2 per cent in 2022.

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Thursday 14 February 2019

ANALYSIS Starbucks’ Schultz shuns Democrats in bid for White House Coffee billionaire says party has shifted too far to the left for him to support it Demetri Sevastopulo

Japanese ‘attack’ exposes French unease over Ghosn

Renault sees a Japanese plot, but in Paris resentment against imperious executive persist

Victor Mallet, David Keohane and Peter Campbell

lavish party at the Palace of Versailles for the benefit of the boss and his family. Costumes in the style of Marie Antoinette. And the venue paid for by the company. Revelations of this type would be embarrassing for any business. But the news that Renault is investigating what it calls “a personal benefit” worth €50,000 in 2016 at the former French royal seat for its then chairman Carlos Ghosn goes to the heart of the crisis facing both the carmaker and the French government. The arrest last November of Mr Ghosn in Tokyo on charges of financial misconduct at Nissan, Renault’s Japanese partner, has reignited a simmering rivalry between the French and Japanese nationalists in each camp of the international car alliance. For many on the French side, the sudden detention of Mr Ghosn and the refusal to release him on bail coincided with a plan to topple him and rebalance the Renault-dominated alliance in Nissan’s favour. That theory is shared by Mr Ghosn and his allies, who say he planned to unite Nissan and Renault in a holding company that would probably have meant executive job losses in Japan. All of this has left Paris in a bind: scrambling to preserve an alliance that became a byword for successful industrial co-operation but also shocked at the way Mr Ghosn has been treated. As one Renault adviser says of Nissan’s aggressive tactics: “The attack is massive and the organisation of it spectacular . . . If you respond to the attack with counter-attacks, then you will explode the alliance, so we’ve decided not to get into a discussion about whether there is a plot or not.” The Versailles revelations — the first time that Renault has made any public suggestion of possible wrongdoing by Mr Ghosn — add a further complication to the mix. While the Franco-Lebanese-Brazilian tycoon had alienated many on the Japanese side through his large salary and high living, he had also accumulated his share of resentments in France — especially at a time when the government is being assailed by the gilets jaunes protests. “He wanted to be an American CEO,” says one executive who knows him well. “They had the trappings, the pay, and the adulation of being corporate titans. He never got that in France.” Mr Ghosn, who remains in a Tokyo jail on financial misconduct charges protesting that he is the innocent victim of “plot and treason”, has said he will repay the €50,000 for the use of Versailles. While both governments have

endorsed the alliance — which, together with the third partner Mitsubishi employs 450,000 people and makes 10m cars a year — the bitterness on each side will make it hard to restore peace and commit themselves to the billions of dollars of joint investments needed to assure the alliance’s future success. In an acerbic exchange of lawyers’ letters, Renault has questioned Nissan’s commitment to the alliance, while the Japanese company has accused its French partner of resisting the investigation into its former chief executive. Regardless of the different views over the merits of the case against Mr Ghosn, Renault’s advisers, French officials and Mr Ghosn’s friends say some Nissan executives were eager to topple him because of his plans for the alliance. One Renault adviser characterises the stream of leaks from Japanese prosecutors and from Nissan about Mr Ghosn’s alleged crimes as a “blitz” and “shock” tactics in a fight for control of the alliance. Another, speaking figuratively, says: “I think Ghosn had decided to kill [current chief executive Hiroto] Saikawa and Saikawa then decided to kill the king.” Senior officials in the French government agree that Mr Ghosn was facing fierce opposition from within Nissan — though perhaps not from Mr Saikawa himself — because of his proposed reforms, the details of which he guarded jealously even from some members of the Renault board. Mr Saikawa has denied there was a corporate coup to depose Mr Ghosn. “Saikawa and many in Nissan are attached to the alliance and its international aspect,” says a senior French official. “But some in Japan are very nationalist, and some are opportunistic.” In the French government and the Renault boardroom, the immediate goal is to ease tensions and stabilise the alliance while the case against Mr Ghosn proceeds. Jean-Dominique Senard, the French chief executive of tyremaker Michelin who was appointed in January to replace the detained Mr Ghosn as Renault chairman and to sit on the board of Nissan, visits Tokyo this week. “From the beginning, we wanted to make the climate calmer, because we were also stunned by the arrest of Carlos Ghosn and the announcement of the charges against him by Nissan and the prosecutor,” says one Renault board member. “We wanted to draw a line between the situation of Carlos Ghosn and the future of the alliance.” The last thing that French President Emmanuel Macron needed in November, just as he faced gilets jaunes demonstrations over the economy, was a challenge to a French

industrial champion and one of the country’s largest employers. Since the arrest, Mr Macron has twice spoken to Shinzo Abe, Japan’s prime minister, to tell him of the need to preserve the Renault-Nissan alliance. Mr Ghosn was set to receive more than $80m in deferred compensation after retirement. He is accused in Japan of understating his pay in company documents, abusing his position to transfer personal trading losses to Nissan and receiving €7.8m in improper payments from a Netherlands joint venture with partner Mitsubishi Motors. In a short statement in court, Mr Ghosn denied that he ever received any undisclosed compensation from Nissan and said his “draft proposals” for post-retirement pay were reviewed by internal and external lawyers, showing that he had no intent to violate the law. Before the arrest, neither Nissan nor the Japanese authorities had said a word about the probe to the board of Renault, which owns 43 per cent of Nissan, or to the French state, which owns 15 per cent of Renault and appoints two of the French company’s 20 board members. Renault — whose lawyers say they are outraged by the way some Nissan investigators are working in tandem with Japanese prosecutors when Nissan itself has also been indicted — sent an 82-page list of questions to Nissan about the accusations against Mr Ghosn in late December after receiving a summary from Nissan. Renault directors and lawyers say they have yet to receive a reply. French officials, Mr Ghosn’s associates and present and past board members of Renault paint a picture of a hard-charging Mr Ghosn, who rescued Nissan in 1999 and went on to build the three-company alliance but who finally alienated key Nissan executives with the proposal for a new holding company. Mr Ghosn, however, was not simply a French appointee sent to do the bidding of Paris in his position as the head of Nissan. He was in fact at least as angry as Nissan’s executives were about the French state’s 2015 decision to temporarily boost its stake in Renault to preserve its double-voting rights as a shareholder. He knew the raid would enrage the Japanese and saw it as a threat to the stability of his international creation. “Ghosn was really really pissed off,” says one person who witnessed his reaction. “I’ve never seen him like that.” He had a bitter falling-out with the architect of that French scheme — Mr Macron, who was then economics minister — although officials and Renault executives say their working relationship was subsequently restored after Mr Macron became president and Mr Ghosn accepted a pay cut at Renault.

oward Schultz, the billionaire founder of Starbucks who is considering an independent bid for the White House, will not run as a Democrat despite worries that his entry into the race could increase Donald Trump’s chances of being re-elected in 2020. Mr Schultz told a town-hall meeting with voters in Texas that there was no situation in which he would consider running as a Democrat because the party had moved too far to the left. “No. I didn’t even have to think about that,” he replied when asked by a CNN moderator if there was any scenario that

Ross Perot, the businessman, not entered the race. Eleven Democrats have either launched campaigns or created exploratory committees which usually lead to formal announcements. More than a dozen others, including Joe Biden, the former vice-president, are also eyeing presidential bids. Beto O’Rourke, the former Texas congressman who duelled with Mr Trump over immigration policy on Monday night, is also considering a run. At the Texas town hall, Mr Schultz pledged to ensure that he would have no conflicts of interest as president — either related to his big shareholding in Starbucks, which has a large and growing presence in China,

Starbucks founder Howard Schultz has pledged to ensure that he would have no conflicts of interest if he ran for and was elected as president — either related to his big shareholding in Starbucks or any other investments © Getty

would lead him to run in the Democratic primary. When Mr Schultz announced last month that he was considering a presidential run, he said he would not be a “spoiler” who would help re-elect Mr Trump. At the Texas town hall, he refused to say whether he would commit to dropping out of the race next year if he was having that effect. “How can you spoil a system that is already broken. It is just not working,” he said. “If the math doesn’t tally up when I get to the next three or four months and I take my message out to the American people . . . I will not run for president because I will not do anything whatsoever to re-elect Donald Trump. No one wants to see him fired more than me.” He also said that millions of Republicans who dislike Mr Trump would vote for him if the other choices were the president and a far-left Democrat. Mi c h a e l B l o o m b e r g , t h e founder of the eponymous media group, considered a run as an independent in 2016 but concluded that it would be impossible for a third-party candidate to win. The billionaire is now considering running as a Democrat. Some Democrats still blame Ralph Nader, the consumer rights campaigner, for Al Gore’s loss to George W Bush in 2000. Some Republicans believe that George HW Bush would not have lost to Bill Clinton in 1992 had

or any other investments. But he declined to say whether he would be willing to sell his entire portfolio of shares in the coffee company. Mr Schultz owns about $2.6bn in Starbucks shares, which represents about 69 per cent of his net worth of $3.8bn, according to Bloomberg data. “I think we are getting way premature. This is my third week since 60 Minutes,” Mr Schultz said. “There’s multiple ways to do this, to set up a blind trust, to do lots of things to remove any conflict of interest,” he added. Mr Schultz took repeated shots at Mr Trump but also stressed the difference between his views and some of the more liberal proposals — from healthcare to climate change — backed by the progressive Democrats running for president. He took particular aim at the “Green New Deal”, a proposal launched by Alexandria OcasioCortez, the New York lawmaker, to tackle climate change. He said the plan was unrealistic, arguing, for example, that its goal to make every US building use clean energy by 2030 would require the conversion of as many as 3,000 buildings a day for a decade. “Let’s not just throw stuff against a wall because it’s a good slogan or we get a press release. Let’s be truthful,” he said. “When I see politicians start throwing things out that I know is not realistic, that is not being honest with the American people.”

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INTERVIEW ‘People want commitment that whatever is the outcome of the election, either of the political parties will accept it in good faith’ Johnson Chukwu, the CEO of Cowry Asset Management Ltd. He shares insight on how the Nigerian economy is likely to perform in 2019, the impact of the election on the country’s economy, and the reforms government needs to consider in moving its GDP growth to double digits in this interview with BusinessDay Enduranec Okafor. Excerpts:

some clarity on our economic direction. Those two factors are critical for you to have FPI and FDI inflow into the economy. I want to believe that after the election we would have at least to some extend remove the most critical political risk and that could mean that some foreign investors will begin to come back, then if we are fortunate to have a government that comes up with very sound economic policies then we should expect a scramble for Nigeria asset and investment opportunity in the country by both local and foreign investors. So for sure there will some level of recovery in foreign investment inflow into the country after the general election? Yes, you will see some level of recovery like I mentioned earlier; the political risk would have been addressed, and so investors will at least be rest assured that in the next four years they might see some level of political stability. The policies that will drive stronger economic growth are very important because without relevant and appropriate policies, the economy will continue to grow at very sluggish rate and as such growth rate will not be attractive for a lot of foreign investors to come to Nigeria economic space. Do you think this 2019 preelection uncertainty is one of the worst the country has witnessed compared to its past? It will be hard to say that, and when want to look at the economic environment, you don’t just look at the political issues, and you have to look at other factors that are driving the decisions of investors. In 2015, there were also election tension but we got reassurance from the electoral commission- INEC indicating then that they will remain neutral and there will be an unbiased umpire and that gave people some

‘ Investors are running away from Nigeria for two major reasons; they can’t see clarity in our economic planning and they are not certain of how our on-going political activities will end up

‘

How is Nigeria economy likely to perform in 2019 ahead of the average crude price projected at $60-$65 per barrel? he Nigeria economy will be relatively weak in 2019 because the year will likely be dominated by political activities; we will see the first two months of the year will have election campaign and the election of the National Assembly and the presidential elections, March; the third month of the year will be for governorship election and also for the members of the House of Assembly. So by the time we get to April and May, you will talking of preparation for the searing of the new executives, June you have the inauguration of the National Assembly and by the time you get to July you are talking of the appointment of ministers and commissioners and they will then have to enunciate their policies, and probably they will need to send budget to the National Assembly that will be based on they want to manage their ministries. By the time you are done with all of that, you are will already be in the last quarter of this year, so I want to believe that 2019 will be largely dominated by political activities and for that reason, very few attention will be paid to economic policies, particularly the policies that you need to restructure the economy. So in effect, the economic growth that we are going to see in 2019 will be largely driven by natural growth like; if you have good weather, agriculture may do relatively well, if you are be address the displacement of farmers in north central, north west and the north east, then you could see better growth in agriculture and then the other sectors that are naturally performing, not necessarily because they have specific economic policy but just because our economy is still a very young one. On that basis, I think we should expect a relatively weak performance; the Gross Domestic Product (GDP) figure may remain positive but a low digit growth, and I think the economy will still grow at less than 2 percent this year. Data from NBS shows that FDI into Nigeria slummed 48% as at Q3 2018, what can Nigeria do in this election year to increase investors’ appetite for the country? What will can only do is to de-risk our political environment in order to reduce the level of tension in the political environment. Investors are running away from Nigeria for two major reasons; they can’t see clarity in our economic planning and they are not certain of how our on-going political activities will end up so they want to stay away from a politically volatile environment until election is concluded and secondly they want

Johnson Chukwu

level of confidence, again the then president, Goodluck Jonathan gave several public comments where he said that the presidential position was not worth anybody’s blood, and that he was not ready to sacrifice any Nigerian blood for the position. We have not seen such strong commitment from the current president; at the town hall meeting he held with NTA, the question was put to him and his response was not very direct, so that could have created some concerns and doubt in the mind of some people who might want to wonder if the president will concede should he lose the election. People want commitment that whatever is the outcome of the election that either of the political parties will accept it in good fate provided the election is free and fair. The honours is now on the executive arm of the government to make sure the country’s institutions are neutral , so as to give other political parties confidence that the election will be free and fair and then the INEC should also show assurance that they will remain neutral and objective in carrying out their duties. Those two things are very critical in determining whether this election has the highest pre-election tension. Despite being an issues with most emerging markets, some investors wary about policy instability in Nigeria, so how do you think Nigeria can best manage this? The believe that Nigeria have the weakness that is prevalent in the country is fallacious, this is because

also of emerging economies have move ahead of Nigeria in several areas. So we keep luxuriating our eagle that by believing that our failings are common among other emerging economics, that is not true; look at Ghana, there is no policy flip flop in that country neither is there such in Ethiopia, non is in Tanzania. So we have several countries that are actually on the route to economic growth, so we should stop deceiving ourselves. The key things are the quality of leadership that we elect is very critical, we must get to a point as a people where we’ll have what we call national interest; nation interest becomes those interest that are held sacrosanct and cannot be violated by anybody, irrespective of their positions. There are a couple of things we need to do; we need to get leadership right, if we get leadership right, the leadership will help us develop common national interest and then beyond that we should drive towards institutionalisation. What do you think will be the after election effect that is likely to impact on Nigeria economy in 2019 either positively or otherwise? Well, if the election is successfully free and fair, and the outcome is accepted by all parties involved, we should see some level of excitement, and euphoria that should go with the conclusion of the election. Like I said earlier on, you will

see a lot of concerns, a lot of people sitting on the side lines waiting to see the conclusion of the elections, some people are projecting, hoping that the country will unravel. So after the election, if it’s successful, you should see some excitement about the economy and if the government that comes into power should provide good economic policies then you should see a lot more excitement in the economy. So it depends on how the election goes and what the winners do immediately after the elections. Apart from the election uncertainty what are the risk the country will likely face in 2019? The other risk Nigeria may be faced with would be issues related to the crude prices, just recently the Russian parliament wrote to their president that the agreement they signed with OPEC was not in the interest of Russia but was actually helping America to strengthen its oil independence. So should the Russian president take the notice into consideration, they may pull out of the OPEC agreement and that can affect crude oil prices. Beyond that the swiftness at which the new government is formed, and the kind of policies they will come up with. Other factor will maintain the relative peace will have in the Nigeria Delta, will need to sustain that peace. The last factor will be how the government respond to the herder setting in the north central, and Boko Haram insurgency in the north east. What can Nigeria do to ensure it return back to double digits GDP figures like it reported in 2014? It is all about the economic policies; the government must focus on economy. The reality is that all human endeavours are lifted into economic benefit or economic returns; there is no human engagement that does not attract economic reward that can be sustained in the long run. So if government take its sight off the economy, it cannot fix a lot of things; like security, it cannot fix education system, health care as it needs resources to do that. I believe that the government in focusing on the economy should have specific policies for specific growth sectors and we had things like that in the past and it worked for us. When Obasanjo came into power, and he introduced the cement policy and wanted to domesticate cement production at a time when the country was only producing about 2 million metric tonnes of cement, today a single producer of cement can produce more than 16 million to 2o million metric tonnes of cement.

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Thursday 14 February 2019

Ahead of product launch, OPPO targets 80 stores across Nigeria FRANK ELEANYA

he world’s 5th g l o b a l s ma r tphone manufacturer, OPPO says it plans to have its products in at least 80 new stores in the next three months. The company’s mobile devices are already selling in 30 stores including Slot Nigeria. At a media parley in Lagos on Saturday, the company noted that having a physical presence in Nigeria is to replicate the high standard it is known around the world and to become a part of the lifestyle of many Nigerians through its pace-setting devices. OPPO which in January announced a major breakthrough in smartphone camera technology with its 10x lossless zoom, said in Lagos on Saturday, that Nigeria a very important market in

Lily Wang, marketing director, speaking at the Media hangout on Saturday.

Africa. “We are dividing Nigeria into four regions,” says Joseph Adeola, PR Manager, OPPO Nigeria. The company has only one

Expect politically motivated cyber-attacks during election – Deloitte Nigeria FRANK ELEANYA

s Nigeria prepares for the presidential election scheduled for Saturday, 16 February, Deloitte Nigeria has warned that there may be spike in the number of politically motivated cyberattacks. The global audit firm disclosed this in its latest Nigeria Cyber Security Outlook 2019 report. On March 2015, just minutes to accreditation or voters during the presidential election, the website of the Independent National Electoral Commission (INEC) was hacked by a group of persons that called themselves Nigerian Cyber Army. The incidence sparked heated accusations between the camps of the two leading parties. “Hackitivism may be prevalent before and immediately after the elections in order to gain access to the IT systems of government agencies and parastatals,” Tope Aladenusi, partner Risk Advisory and the author of the report said. He further noted that the trend will take a new dimension and if left unchecked may pose a threat to future elections as witnessed around the world. “We recommend that the necessary authorities be vigilant in order to protect critical technology platforms,” Aladenusi said.

With the elections just a few days away, IT experts have expressed concerns over attempts from political parties to use online platforms to influence voting outcomes. In 2015, Cambridge Analytica was reported to have attempted to use fake online videos to cast aspersions and discredit an opposition candidate. On the prompting of an unnamed Nigerian billionaire, the data mining firm hacked Facebook to harvest the profile of millions of users and target what was determined to be their worst fears. In one of the videos the firm produced, people were filmed being dismembered, having their throats cut and bled to death, and also burned to death in a bid to portray Muslims as violent and Buhari as the man that will impose Sharia Law that will make that sort of violence commonplace in the country. Following that incidence, Facebook in January 2019 announced it will not accept political advertisement, temporarily, from outside Nigeria and would also roll out new rules to prevent “foreign interference” around the polls. “By shining a light on political ads, news organisations, regulators, watchdog groups and people anywhere in the world can hold advertisers and us more accountable,” the company wrote in a blog post.

model in the Nigeria market but that would change after the launch in Barcelona. 10x Lossless zoom camera breakthrough that will also be unveiled in Barcelona means

that images captured by the OPPO cameras are just as good as photos captured in professional cameras. In a statement BusinessDay received, OPPO ex-

plained that the innovation is enabled by the company’s triple-solution consisting of ‘Ultra Wide Angle + Ultra Clear Master + Telephoto’ features. The triple camera structure has an equivalent focal range of 159mm. The focal length of a camera describes the angle of view – how much of the view will be captured – and the magnification – how large individual elements will be. The longer the focal length, the narrower the angle of view and the higher the magnification; the shorter the length, the wider the angle of view and the lower the magnification. By leveraging the zoom lens technology, OPPO is taking advantage of the versatility the lens. Zoom lens reduces the number of times one need to change the lens which saves time and limits the possibility of getting dust in the camera’s mirror box or on the sensor. To maintain image quality

at all ranges, OPPO has introduced dual optical image stabilisation (OIS) on both standard and telephoto cameras. In addition to the triplecamera structure, OPPO’s pioneering ‘periscope structure’ is also paramount to achieving 10x lossless zoom. The periscope-inspired design makes full use of the width and thickness of the phone through the lateral arrangement and refraction of the lens set. The space is saved, and the mobile phone can use a larger optical component under the premise of ensuring that the mobile phone body is thin and light, so that the mobile phone has a telephoto shooting capability. “We are constantly setting the pace,” says Nengi Akinola, marketing manager, OPPO Nigeria. “We are futuristic company. We don’t compare ourselves with other brands because we are trying to set a standard.

Mobile App to monitor 2019 elections launched by CDD CALEB OJEWALE

t is election season and in two days, the first ballots will be cast in Nigeria’s Presidential and National Assembly elections. With credibility high on the agenda for many people, a mobile app has been launched by the Centre for Democracy and Development, West Africa named, CDD Election Tracker. It has been designed for monitoring, observing, supervising and auditing the 2019 general elections in Nigeria. Monitoring the elections to ensure they are free and fair is of concern to most stakeholders and both human and technology components are expected for deployment in ensuring the credibility of the polls. The CDD Election Tracker mobile app which is

currently available for download via Google Play Store on Android devices including mobile phones and tablets, is expected to provide a platform for monitoring and report on the elections. Social Politico, a U.S.based firm, which says it has offices in San Francisco and Los Angeles, designed the mobile app. Social Politico in a statement sent to BusinessDay TechTalk, noted that the CDD Election Tracker mobile app can be used by individuals in the public, the media, NGOs, as well as local and foreign observers. Notably, the African Union, Commonwealth Secretariat, European Union (EU), Organisation of American States (OAS), the Organisation for Security and Co-operation in Europe (OSCE), and the Council of

Europe, amongst other local and foreign observers can use the CDD Election Tracker mobile app to monitor the 2019 general elections in Nigeria. The App’s developers say it was designed because many impartial and credible election observers (local and foreign) across Africa face a major challenge of using modern technology to monitor, supervise, and observe the legitimacy of electoral processes. As such, in many cases, they lack the required state-of-the-art tool to enhance the quality and credibility of elections across the continent. The CDD Election Tracker mobile app according to Social Politico was specifically designed to address this challenge by making election monitoring, supervision and

observation an absolutely easy process for both local and foreign observers. By using the CDD Election Tracker mobile app, it is expected that observers will easily help build and restore public confidence in the transparency of elections conducted in Nigeria. Through appropriate monitoring, the app can help protect the civil and political rights of Nigerians and expose fraud, errors and unfair electoral practices. TechTalk downloaded the app, and it requires a quick sign up process. However, a user is unable to log in for an unknown period of time until the “Admin” has verified the email address used for sign up. As a form of review, this is a minus as it could hinder operation of the App by intending users.

New AI-based Ericsson Operations Engine targets simpler managed services CALEB OJEWALE

he Ericsson Operations Engine, a new Artificial Intelligence (AI)-based managed services offering for communications service providers, has been launched to improve efficiency and ease in administration for managed services. Ericsson describes the solution as an end-to-end managed services operating model that, through AI, automation, and the power of data, re-imagines network and IT operations, network design and optimisation, and

applications development and maintenance. The Ericsson Operations Engine, the company says “directly and proactively addresses service providers’ managed services complexity challenges as the industry moves to the reality of 5G and IoT.” The Ericsson Operations Engine has three building blocks: • Service-centric business model based on business outcomes: Using AI, automation and data insights, the Ericsson Operations Engine addresses targeted business outcomes for service providers such as enhanced customer experience,

revenue growth and efficiency. • End-to-end capabilities: delivering on business outcomes through AI-based design, planning and optimisation, data-driven operations, dynamic deployment, applications development, and collaborative innovation. • Components: Best-inclass tools and processes that leverage data, AI and automation as well as expertise and investments in the service provider domain. According to Peter Laurin, senior vice president and head of Managed Services, Ericsson, Networks are quickly becom-

Team: Frank Eleanya, frank.eleanya@businessdayonline.com; Caleb Ojewale, caleb.ojewale@businessdayonline.com

ing significantly more complex to operate as IoT and 5G are introduced at scale, and virtualise core networks, while aiming to enhance user experience at the same time. The Ericsson Operations Engine makes it possible to create sustainable differentiation for the company’s managed services customers as it evolves operations from being network-centric to user experience-centric. “It fundamentally changes our way of operating networks from reactive to proactive, leveraging data, automation and artificial intelligence,” Laurin said.

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Uganda government’s tax on social media usage sees loss of 5m users Stories by FRANK ELEANYA

h e Uga n d a g ov e r n ment’s controversial Over the Top (OTT) Social Media tax which mandates citizens to pay a fee before they would be able to access range of social media platforms such as Facebook, Twitter, WhatsApp and many others has led to 5 million people closing their accounts. The government had explained in May 2018 when the parliament passed the legislation that the tax was to generate revenue that will be channelled towards “coping with the consequences of online gossip”. Users were required to pay 200 shillings a day (about $0.05) to access any of the more than 60 such OTT platforms. That translated to about $1.5 a month and $19 a year.

The government expects to collect between Shs400 billion and Shs1.5 trillion annually from the social media users, but the reali-

With eyes on investment, PiggyBank transitions to PiggyVest FRANK ELEANYA

igerian digital savings platform PiggyBank has on Monday informed its customers that it is changing its corporate identity to PiggyVest. The email signed by Somto Ifezue, chief executive officer (CEO) which the company sent to its customers explained that the name change is a transition into a broader identity that encompasses a new phase of growth. “We have morphed into more than just a savings platform, and are growing into a robust financial management platform with many products planned for the next few years, to enable you to better manage your finances,” Ifezue said in the mail. PiggyVest currently host a community of 200,000 registered savers who have saved more than N1 billion in just January

2019. Ifezue said the name change only makes the platform better than it was with more savings and investments products tailored to help users manage and grow their finances. “We are fanatical about providing quality service to you and will continue to do so,” she said. “We are able to reach even more users across the world who wants to better manage all aspects of their finances.” The company is not doing away with the Piggybank brand completely. The Core Savings feature on the platform will now be known as Piggybank Savings. “The next 12 months will see us adding even more safe and secure investment features to reflect our mission of helping you better manage and grow your finances,” Ifelue said. The company has since reflected the name on its social media brand communication.

sation of this target may be hard going by the efforts Ugandans are taking to avoid paying the tax, hence the decline in generated

revenue and internet users. According to data released by the Uganda Communications Commission (UCC), the move

has dropped the number of internet users in the country by as much as 3 million representing a 35 per cent reduction since July 2018 when the law came into full effect. Prior to the tax law, 47.4 per cent of people in Uganda had access to the internet. The data showed that approximately half of internet users in Uganda were actually paying the Social Media tax. “In the last three months of the quarter – July to September 2018 – under review, both the number of OTT taxpayers and the figures for the OTT revenues were in a declining trend,” a statement from the UCC noted. “The figures indicate subscribers those who have used OTT services at least once in the quarter. 50.4 per cent of the internet subscribers were enjoying OTT services by the end of September 2018.”

Dell EMC expands data protection capabilities CALEB OJEWALE

ell EMC has announced new and enhanced capabilities to the Dell EMC Data Domain and Integrated Data Protection Appliance (IDPA) portfolio of backup storage appliances, designed to offer organisations real-world flexibility and value with expanded multi-cloud capabilities and improved performance. The enhancements also provide mid-sized organisations and remote offices of larger organisations with more choice and options in obtaining enterpriselevel data protection. “As the industry leader in data protection appliances6, Dell EMC is committed to delivering continued innovation in our data protection portfolio that supports and improves customers’ adoption of multi-cloud environments,” said Beth Phalen, president, Data Protection, Dell EMC. “Our appliances are powerful, simple to manage and make it easy to expand to public clouds with native cloud capabilities.” According to IDC, 92 percent of organisations have adopted a cloud environment with 64 percent adopting a multi-cloud approach. With a mix of different clouds, protecting data across workloads while meeting compliance and security requirements is a critical challenge for many organisations. In fact, according to a study conducted by IDC for Dell EMC, cross-cloud support was the highest recognised data protection deficiency for IT transformation. Dell EMC says it recognises this challenge and continues to enhance its data protection appliances to help customers mitigate risk and protect their most valuable asset – their data – in multi-cloud environments. Multi-cloud capabilities Data Domain OS 6.2 and IDPA 2.3 software now provide customers with even more choice to extend their data

protection to public clouds with expanded Cloud Tier support to Google Cloud Platform and Alibaba Cloud, thereby, enabling more flexibility for long-term retention. This is in addition to support already offered across AWS, Microsoft Azure, Dell EMC Elastic Cloud Storage, Virtu stream, Ceph, IBM Cloud Open Storage, AWS Infrequent Access, Azure Cool Blob storage and Azure Government Cloud. Also, anew Free-space Estimator Tool for Cloud Tier helps enable more efficient capacity management to help reduce on-premises and cloud storage costs. Dell EMC also expanded its ecosystem of supported public cloud providers for Data Domain Virtual Edition (DD VE), which provides software defined data protection on-premises and in public clouds, to AWS GovCloud, Azure Government Cloud and Google Cloud Platform. This adds to the already supported platforms AWS S3 and Azure Hot Blob. The expanded cloud ecosystem combined with the previously announced increased capacity for DD VE – up to 96TB per instance – ensures customers will receive the same level of protection within their growing cloud environments as they receive from their onpremises Dell EMC appliances. Additionally, Native Cloud Disaster Recovery is now available across the entire IDPA family, enabling customers to cost-effectively failover to a cloud environment with end-to-end orchestration. Customers no longer have to bear the expense and management of setting up and maintaining a secondary site for disaster recovery and can failover to public clouds with ease in case of a disaster event and failback when the issues are resolved. With this expansion, all Data Domain and IDPA models support AWS, including VMware Cloud on AWS, and Microsoft Azure for Cloud Disaster Recovery. The company in a statement, also asserts organisations will find peace

of mind in that all Dell EMC data protection appliances provide modern, simple-to-manage user interfaces. Also, administrators can easily manage multiple Data Domain and DD VE appliances – on-premises or in public clouds – from a single user interface with the Data Domain Management Center. Enhanced performance Updates to the IDPA family will now provide more performance for Instant Access and Restore with an enhanced data cache that results in up to four times more inputs/outputs per second (IOPS), providing up to 40,000 IOPS with as little as 20 milliseconds latency. Also, Data Domain appliances provide faster restores from an onpremises appliance and faster recalls from public clouds. Given these enhancements, organisations can now restore their data up to two-and-ahalftimes faster from a Data Domain appliance1 and recall their data up to four times faster from the cloud2to a Data Domain appliance, allowing them to meet more stringent SLAs. More options for mid-sized organisations Choice and scalability are critical for smaller, mid-sized organisations that require enterprise-level, cloudenabled data protection. In addition to cloud and performance updates, Data Domain DD3300 – a 2U appliance specifically designed for mid-sized organisations and larger enterprises with remote offices– has new hardware enhancements. DD3300 now offers an additional 8TB capacity model that can scale and grow-in-place to 32TB. Also, DD3300 now comes with faster networking capabilities with support for 10GbE and expanded backup options for virtual tape libraries (VTL) over Fiber Channel. These options provide mid-sized organisations with a cloud-enabled data protection solution that can grow as their needs change.

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Opinion The Igbo Wars 3: The end of the beginning The Public Sphere

CHIDO NWAKANMA

he South East is a major epicentre of the electoral wars 2019. It is the place where contention over the election has taken dramatic turns with the potential for explosion. The South East sits on a timebomb. Whether by accident or design, electoral materials are blowing up in the South East. On Tuesday, a truck that was conveying voting materials burnt in Awka. Burnt were 4, 950 INEC card readers. There was an earlier fire at Isiala Ngwa South. There was also one in Plateau State. Conspiracy theorists have noted that these are strongholds of the opposition party. Convenient, but unnecessary. The lizards are visiting the ant-infested faggots! Plateau makes it difficult to finger people of the South East for the arson incidents. The South East is not the only stronghold of the opposition. There are many other states and regions where the opposition to the ruling party is very strong. The bush rat has

gathered intelligence from the house rat and is acting. It is the internal but needless schism in the region that has brought out the beast. The battle in the South East this weekend is three-pronged. There is one over which of the parties, PDP or APC, the Igbo will choose. Burning of the card readers is part of that battle. There is the other over voting or boycott. Then another over a so-called referendum. And yet one more in Ebonyi State. The Igbo face serious battles over choice of direction and identity. I submit that the battles are proxy wars for the poor governance that has characterized the region and nostalgia over the achievements of an earlier generation in the direst circumstances over three years. Biafra is the elephant in the room. Rather than confront the wielders of political power directly, the Igbo have been externalizing. From IPOB through Ohanaeze Igbo, the recourse is to engage in the blame game against forces external to the region. The buzz has grown from marginalization through the call for a new Biafra and restructuring. As the morning shows the day, the South East should show capacity for internal correction, autonomous growth and self-regeneration with the resources and capacity currently available. The resources are enormous indeed, from federal allocation to internally generated revenue. Where is the strategic plan for each of the South East states that would deliver the enabling environment for fruition of the ac-

claimed brilliance and capacity of its citizens? Why do we not have better-living spaces or demonstrably better management of resources than the rest of Nigeria? That is the challenge of today and tomorrow. On Saturday, 16 February the call on the electorate in the South East is to go out and vote. Ignore the misguided call of IPOB for a boycott and a purported referendum. We cannot afford such escapism. General Elections 2019 will mark the end of the beginning. Chapter Two will unfold after the elections when the region must confront the real wars of culture, identity, direction and strategy. It would matter little who becomes president. One will make the Igbo further hanker down, while the other may offer a more enabling environment for unleashing of individual capacity and negotiation of the desires of the region. There is work ahead internally post-election. Hurricane Maria The David versus Goliath battle in Ebonyi State playing out also on 16 February 2019 is one that speaks to the can-do spirit of the people. Hon Maria Ude Nwachi aka Nwanyi Afikpo is squaring up for a seat in the House of Representatives for the Afikpo North/ South Federal Constituency against the PDP’s Chief Idu Igariye. Maria Nwachi sits in the Ebonyi State House of Assembly. She entered on the ticket of PPA, probably the only member on that platform. This time her platform is the Alliance for New Nigeria (ANN) party. Her

‘

Where is the strategic plan for each of the South East states that would deliver the enabling environment for fruition of the acclaimed brilliance and capacity of its citizens?

election in 2015 was proof that love wins elections with the citizens defying the odds to stand behind her. Nwanyi Afikpo is rewriting the story of political representation in Nigeria. It would take a more definite form if she wins on Saturday. The battle this time is fiercer than in 2015. The ego of the PDP and the Ebonyi State Government is involved, and they are willing to do any and everything to short circuit this interesting story. The narrative is that candidates who identify with the electorate can and will win their support in Nigerian elections despite the negative forces of rigging, intimidation and party supremacy. Maria Nwachi continues to pay a high price for insisting on representing her people against the odds. Twice the Ebonyi State House of Assembly suspended her, the one for ostensibly lowering the esteem of the house by going around taking photographs! They soon stepped down from their high horse given how ludicrous the reason sounded. May Maria Ude Nwachi move to Abuja in May 2019 to represent her beloved Ehugbo people and rewrite the narrative of grassroots politics.

Nwakanma is a Visiting Member of the BusinessDay Editorial Board and serves on the Adjunct Faculty at the School of Media and Communication, Pan Atlantic University, Lagos. Email chidonwakanma@ gmail.com.

February 16: And the winner is…

ik MUO

his is the week we have been waiting for in the past four years. It is a referendum on the performance of the APC Change party; on their performance as compared with their promises, on what they have done and what they have failed to do. Along the line, the atmosphere became charged as indicators of political desperation filled the environment. Shameless politicians crossed the tiles( there are no more carpets) and developments in the security axis ( appointments, deployments etc)were not encouraging. To save my neck, I had thought of resorting to Afghanistanism. It is a practice of concentrating on problems in distant parts of the world while ignoring controversial issues at home, mostly because it is not safe to fish in troubled local waters. I had wanted to write on Chinese Imperialism, about the president who had stroke while delivering his inaugural address, the shut-down of the American economy due to Trumpian intransigence or even about World Wide Marriage Encounter. Journalists and writers of old like Nduka Erabor and Tunde Thomson will readily remember when that was the order of the day in Nigeria. But I was eventually convinced that one could canvass his ideas safely, provided it does not depict undue radicalism; the campaign against fake news and hate speech notwithstanding. As for the result I am about to announce, I also considered all sides of the issue, consulting legal experts along the line and I believe it is safe to do so. It is against the law to announce the results without waiting for INEC’s version… after the elections. But those who are in the spirit and have the capacity, can announce results before the elections; there is no law against that! Even at that, I will still play safe by majoring on the minor aspects of the political environment in the last few days and weeks, in no political order. The politics of endorsements was played as it had never been in this country. Everybody and every group, including those without any

electoral weight, was endorsing and counter endorsing. Some endorsed peacefully while most endorsed in pieces. Afenifere ‘endorsed’ PMB, but the groups authentic spokesperson used the harshest of terms to describe those masquerading as Afenifere. Ohaneze endorsed AtikuObi but a renege group among them went to the villa to deliver their own endorsement. It also led to idiotic exchanges. SDP endorsed PMB but Chief Olufaleye resigned from the party while the Jerry Gana branch of the party endorsed Atiku. Soyinka endorsed Muohhalu while the party that sponsored Oby Ezekwesili did a U-Turn and endorsed PMB. But the endorsement hat-trick was scored by Atiku when he was endorsed by witches, wizards and… prostitutes! Witches and Wizards? Do they have PVCs? I also noticed that they have all been endorsing individuals and not parties. We have also had serious politics of venues. Akwa-Ibom State Government said APC could not use the stadium because Julius Berger staff who would open the gates to the stadium were on leave, and that the grass in the stadium would suffer( as they usually suffer when two elephants fight). They eventually changed their mind, especially after Julius Berger had agreed to recall its staff from leave! Kano State Government said that the date chosen by PDP was the most appropriate time to repair the distressed stadium. They eventually changed their mind and PDP had its way, garnering what has been described as the most massive crowd in this 2019 campaign season. In Abuja, despite the fact that PDP fullfilled all the requirements and secured approval for the venue, it was suddenly locked on orders from above. Where do these orders usually come from? Where is this above? One day, we shall know. But as it is, it appears political parties will soon start constructing their own venues; after all, football clubs have their own stadia across the world. And now, the crowds! Where did these human beings come from- that is with the exception of those who came from Niger Republic? APC would hold a rally and you would see a sea of heads. PDP would do so and you would see another sea of heads. Are these different people or do the same people attend all rallies provided the appearance fee is right? What is the political value of these crowds and how many of them were able to go through the stress of securing their PVCs? The other 89 parties and 77 presidential parties should not vex because I did not mention them. I think their rallies were held online. There were other minor aspects of these campaigns and politicking worth mentioning.

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When INEC asked the parties to conduct primaries, APC went to conduct ‘secondaries’ and that is probably why their rallies have been characterized by blood, tears and general madness

The campaign uniforms were quite colourful, except that some of them appeared to have been made by carpenters. It is also obvious that Oshiomhole( I am yet to confirm if he is still a comrade), has gone back to his khaki days. The dance-styles exhibited throughout this period were worth special attention. The prize on the political dancing competition was won by Oshoo-baba and Amaechi. I was pleasantly surprised listening to one of the candidates for of Eti-Osa Federal Constituency, Banky W( I think his real name is bankole Wallington) . He was VERY articulate but I was also shocked to hear that his party’s logo was transfigured in transit! And they just accepted it like that? An under-the bridge-lawyer would have got them serious money from INEC or even help them hold the entire nation by the balls ! How about the last hour INEC-Fires? Suddenly INEC offices across the country are on fire. But the fires do not have national character because they have not succeed in the North East and North Central! Are these accidental or are they man-dental? And the Apapa traffic gridlock suddenly disappeared the day PMB came to Lagos! So the trailers and trucks can be off the road? But the shame of Nigeria is that those vehicles where on the bridges and everywhere else the following morning! I also noticed the embarrassments of political whores who went back to their vomits through the decamping routes as they tried to repair the verbal damages inflicted on their new emergency friends, who were enemies a few weeks ago. Also as an ASUUist, I was glad to hear Jimi Agbaje’s promise to commit up to 50% of the Lagos State budget to education . But these oliticians…. When INEC asked the parties to conduct primaries, APC went to conduct ‘secondaries’ and that is probably why their rallies have been characterized by blood, tears and general madness. But the Ogun show of shame appeared to have won the gold medal. In 2015, Momoh asked Nigerians to stone the APC if they failed within 2 years. But while Governorsoon-to-become-Senator Amosun was reeling out the achievements of APC, the people actually stoned the party! You see. we perceive differently. And we saw Buhari, the unusual democrat, asking his party men to vote any person of their choice from any party, and that was after introducing his party’s candidate! By conduction anything but primaries, the APC has also created jobs for lawyers and stress for the courts that will last for another one year. PDP has their issues but as they will say in the streets of Lagos, that of APC ‘no get Part 2!’ I know you have been itching to hear the winner as promised by the title. Well, first things first; ensure that you vote on that day. If

you believe that we have never had it so good, vote for the next level so that we continue the continuous and attain a higher level of CHANJI. If you believe that t and needs to work again, especially through restructuring, vote Atiku. Never mind all the names they have been calling themselves; they are all friends at night while we are busy breaking our heads for them. If you are tired of the old order, you can cast a protest vote for the new faces; except that some of them fizzled out during the campaigns. Sowore appeared to have danced himself lame before the real game started and I have not seen much of Muoghalu in recent times. But two of them showed more presence than Mailafia and that APGA fellow; I don’t even know his name nor remember any aspects of his programme. But it is obvious that the election will be won by PDPC or APDB because ultimately, they are all the same; they all belong to AAPP( Any Available Political Party. As you go out to cast your vote on Saturday, remember the words of Ralph W Emerson: This time, like all times is a good time if we know what to do with it. Vote in such a way that Nigeria wins because the winner should be Nigeria. If Nigeria does not win on Saturday, then we have all lost it! Other matters: Red cap everywhere I came out of Ago-palace Way (Lagos) last weekend and there were red caps everywhere( Not the Kwankwasiya variant) As an Igbo titled man, I became scandalized. PMB, Atiku, Senator Adebola (Yayi), Ganiyu Jhonson and the BOS( not a good acronym in a democratic realm), all donned the revered red caps together with their fake smiles as they posed in their posters and billboards. Even some of my brethren who don’t understand the significance of red caps also followed suit! In Igboukwu, anybody wears a fake red cap pas a fine of N20000 per infraction and whenever the persons decides to regularize the red cap( take the ozo title) he would pay a special fine, which may up to one cow( N250,000). Then an idea occurred to me. After this electoral madness, I intend to petition UNESCO through its Center for Cultural Purity, asking it to use the INTERPOL to collect the appropriate fines from these red-cap impostors. I will do so in conjunction with the authentic Ohaneze and we shall work out the sharing formula, including the whistleblowers percentage once the case is won. Dreaming is not an offence!

Ik Muo, PhD. Department of Business Administration, OOU, Ago-Iwoye 08033026625; muoigbo@yahoo.com, muo. ik@oouagoiwoye.edu.ng

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