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news you can trust I **FRIDAY 14 SEPTEMBER 2018 I vol. 15, no 140 I N300

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How Nigeria spends less on education than Ghana Despite having seven times the population 10 takeaways

from HSBC’s Nigeria forecast

KELECHI EWUZIE

iger ia’s smaller neighbour, Ghana is investing more on education despite having just one seventh of the country’s population. This higher expenditure by Ghana is giving its population a head start in preparing them for competition in the global knowledge economy of the 21st century even as Nigeria lags behind in articulating a clear strategy for the fast emerging era of the fourth industrial revolution when knowledge will be the main resource that drives economic growth. Continues on page 33

Inside Buhari operates obsolete economic policies – Atiku P. 2 Olu Fasan on Monday “Restructuring Nigeria: Osinbajo is wrong again”

LOLADE AKINMURELE

1. Higher oil prices have brightened Nigeria’s macro outlook, boosting export earnings and the supply of foreign exchange, improving the external position and supporting Naira stability. The regulatory environment remains restrictive, evident in Nigeria’s overall rank of 145 out of 190 countries in the World Bank Continues on page 33 Chairman/Chief Executive Officer of Air Peace, Allen Onyema flanked by Air Peace Vice Chairman, Alice Onyema (3rd l), Sales Director (West and Central Africa) of Boeing Commercial Airplanes, Larry Tolliver (l), US Consul General in Lagos, John Bray (2nd l), Managing Director of Fidelity Bank, Nnamdi Okonkwo (3rd r), Executive Director, Commercial and Consumer Banking of Fidelity Bank, Nneka Onyeali-Ikpe (2nd r) and Boeing Regional Director (Contracts), John Fonvielle, at the signing of an agreement between Air Peace and Boeing for 10 brand new Boeing 737 MAX 8 aircraft in Lagos, yesterday.

Air Peace makes history, orders 10 brand new 737 MAX planes from Boeing

Trains, roads and airports from China: Is the country walking into a debt trap? N

IFEOMA OKEKE

Emeka Ucheaga

veryone has heard the old saying, “you must learn from your mistake,” while China has,

Analysis Nigeria looks to have forgotten the lessons from its recent past when it almost ran into a debt trap.

After Nigeria’s external debt ballooned out of proportion in the early 2000s, then President Olusegun Obasanjo began negotiating a debt forgiveness for Continues on page 33

igeria’s largest carrier, Air Peace on Thursday signed an agreement with Boeing for the acquisition of 10 brand new 737 MAX 8 aircraft, making history as the first airline in West Africa to add the equipment to its fleet. Air Peace already operates Boeing 737s and Embraer 145s Continues on page 33

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Post NAICOM recapitalisation: Consolidated Hallmark stock up 6.7% CYNTHIA IKWUETOGHU

ince the recent announcement of recapitalisation of the insurance sector, the share price of three listed insurance companies have appreciated with Consolidated Hallmark Insurance Plc (HMARKINS) gaining 6.7 percent. A review of the performance of 24 insurance stocks listed on the floor of the Nigerian Stock Exchange (NSE) was done by BusinessDay for the period August 31st to the close of the market on Thursday September 13th and it showed that 13 insurance companies had a decline in their share prices while 3 insurance companies recorded price appreciation. HMARKINS topped the list of stocks with price appreciation with 6.7 percent gains from N0.3 to N0.32 at the close of the market on Thursday. CONTINSURE AND WAPIC also recorded an increase in its share price by 4.4 percent and 2.8 percent from N1.37 and N0.36 on August 31st to N1.43 and N0.37. Stocks that declined in their share prices include STDINSURE, having the least performance with -34.2 percent from N0.38 on August 31st to N0.25 on Thursday. UNIVINSURE also declined by -32.5 percent, LAWUNION (-31.5 percent), and NIGERINS (-25 percent). LINKASSURE, NEM, GUINEAINS, PRESTIGE, MBENEFIT, REGALINS, SOVRENINS, LASACO, and AIICO also recorded price

depreciation by -13.3 percent, -12.4 percent, -8.6 percent, -7.7 percent, -6.7 percent, -4.4 percent, -4.2percent, -3.0 percent, and -2.4percent loss in that order. “Investors might have considered the implication of the NAICOM (National Insurance Commission) recapitalisation on these insurance companies as they have started buying stocks of companies likely to benefit from this recapitalisation.” said Moses Hammed, Research Analyst at Investment One Financial Services Limited. “While some of these companies may survive, others may not and so we may start to see mergers and acquisitions in insurance sector.” Hammed added. On the other hand, the share prices of eight insurance stocks remained flat within the period under review. These are GOLDINSURE, STACO, GNI, CORNERSTONE, MANSARD, INTENEGINS, UNIC, and AFRINSURE. Consolidated Hallmark Insurance Plc posted a 24.5 percent increase in Profit after tax (PAT) approximately to N148.3 million in the first half of 2018 from N119.08 million in the same period in 2017. Its total assets also grew by 28.6 percent to N12.2 billion from N9.5 percent. Total liabilities of the company was N7.01 billion in H1 2018, a 46.02 percent from N4.80 billion in the first half of 2017. Debt to equity ratio which indicates the relative proportion of shareholders’ equity and debt used to finance a company stood at 1.25.

Oil prices set to soar on Iran, Venezuela crises ... Nigeria not ready to meet spare capacity ISAAC ANYAOGU

aris-based International Energy Agency, a global energy think warns that global oil market could tighten leading to significant jump in prices unless spare capacity is produced to offset production declines from crisesridden Venezuela and sanctionedthreatened Iran, in its oil market report released yesterday. “Since the previous edition of this report, the price of Brent crude oil hit close to $70 per barrel (bbl) and is now flirting with $80/bbl. Two reasons for the swing are that Venezuela’s production decline continues, and we are approaching 4 November when US sanctions against Iran’s oil exports are implemented. In Venezuela, production fell in August to 1.24 million barrels per day (mb/d) and, if the recent rate of decline continues, it could be only 1 mb/d at the end of the year,” the IEA said in a release announcing the report. Citing evidence provided by their tanker tracking data, the agency believes that Iran’s exports have already fallen significantly “but we must wait to see if the 500 thousand barrel per day (kb/d) of reductions seen so far will grow. If Venezuelan and Iranian exports do continue to fall, markets could tighten and oil prices could rise without offsetting production increases from elsewhere.” But there are countries who are also increasing capacity, last month Saudi Arabia and Iraq combined saw

output increase by 160 kb/d. In Iraq’s case, exports have grown to such an extent that they are greater than Iran’s production, and there is still about 200 kb/d of shut-in capacity in the north of the country due to the ongoing dispute with the Kurdistan Regional Government. “Based on our August estimates of production, OPEC countries are sitting on about 2.7 mb/d of spare production capacity, 60 percent of which is in Saudi Arabia. But the point about spare capacity is that, having been idle, it is not clear exactly how much, beyond what is widely thought to be “easy” to bring online, will be available to coincide with further falls in Venezuelan exports and a maximisation of Iranian sanctions,” said the report. Meanwhile oil price rallied $79.64 a barrel and briefly broke above $80 on Wednesday after a drop in U.S. crude inventories by 5.3 million barrels last week and as the prospect of the loss of Iranian supply added to concerns about balancing demand and supply. It still hovers around $79 but analysts believe it could rise to $100 per barrel. According to OPEC’s August monthly report, total OPEC crude oil production averaged 32.56 mb/d in August, an increase of 278 tb/d over the previous month. “Crude oil output increased mostly in Libya, Iraq, Nigeria and Saudi Arabia, while production declined in Iran, Venezuela and Algeria,” OPEC said it is August oil market report.

•Continues online at www.businessdayonline.com

L-R: Deji Ajomale-Mcword, convener, African Sports Tourism Week; Funke Osae-Brown, partner, Lagos Luxury Summit/publisher, Luxury Reporter, and Tope Ogbeni-Awe, partner, Lagos Luxury Summit/chief service officer, Topcom PR, at the Lagos Luxury Lifestyle Summit 2018 press conference in Lagos, yesterday.

Buhari operates obsolete economic policies – Atiku VICTORIA NNAKIAIKE, Lokoja

he former vice president of the country and a presidential aspirant under the platform of People Democratic Party (PDP), Atiku Abubakar, has described the economic policy of President Muhammadu Buhari as archaic which cannot turn around the economy of the nation. Abubakar disclosed this in Lokoja on Thursday while addressing the state party leadership and his political admirers at the party secretariat, stressing that Muhammadu Buhari knows nothing on the behaviour of an economy, not to talk of stimulating it to life. The PDP frontline Presidential aspirant also stated that the nation’s economy that is under the leadership of President Mu-

hammadu Buhari is closed and totally in a bad shape. He said if given the mandate to oversee the affairs of the nation, he will open up the economy to attract foreign investors in order to generate income and equally usher in jobs to arrest the unemployment situation in the country. “I will diversify the economy, open it up to provide safety for local and foreign investors. President Buhari has killed everything because he doesn’t know how to handle the economy. As far as I am concerned, the economic policy under him is archaic,” he said. He also expressed some reservations about president Buhari’s willingness to hand over power if he is defeated in the forthcoming presidential election, adding that Buhari is not a democrat.

“Whether he likes it or not, if he loses, he must handover power,” he said. Atiku also pointed out that though the amended electoral Act has not been signed into law by president Buhari, that should not cause uproar anywhere, as he urged the National Assembly to act fast and ensure the use of card reader in the next presidential election to ensure free and fair elections. On the suspected lingering political bickering between him and his former boss, President Olusegun Obasanjo, he maintained there is no serious issue between him and his boss. Atiku Abubakar equally assured Nigerians of having capacity to turn around the economy of the country that has just emerged from recession to the benefit of all, if he clinches the mandate come 2019.

Why Lagos, Ogun had highest active voice, internet subscribers in Q2 2018 BUNMI BAILEY

agos and Ogun state are the major commercial hubs in the country and this might be the reason why these states recorded the highest number of active voice and internet subscription in the second quarter (Q2) of 2018, according to analysts. Based on the National Bureau of Statistics (NBS) Q2 2018 telecommunication report, Lagos State had the highest number of subscribers in terms of active voice and internet per State closely followed by Ogun state. Lagos state recorded 21.3 million and 14.3 million for voice and internet subscription respectively. Ogun state had 9.9 million and 6.6 million for voice and internet subscription Ayo Akinwunmi, Head of Research, FSDH Merchant Bank said, “Lagos is the commercial capital of Nigeria and a lot of business activities take place in this country. In

EXPLAINER Ogun state, a lot of manufacturing activities take place there. And with the large market size in Lagos, people rely heavily on internet to carry out their businesses.” However, Lagos and Ogun state continued to maintain their position as the highest in voice and internet subscription from Q1 till date. “I think it is more of enlightenment and also in terms of business activities. Lagos and Ogun state are commercial hubs. Such that a lot of people who cannot set up factories or businesses in Lagos end up starting them up in the neighbouring state which is Ogun state,” Ayodeji Ebo, MD, Afrinvest Securities Limited said on phone. Bayelsa and Ebonyi states have the least number of subscribers for both voice and internet. For active voice subscription, Bayelsa state and Ebonyi recorded 1.1 million and 1.4 million respectively. For

internet subscription, 743,643 and 842,099 was recorded in Bayelsa and Ebonyi respectively. Akinwunmi further said, “The only thing that is going on there is oil exploration and most people are not living there so this may also be the reason why they are the lowest.” Also the report reflected that a total of 162.5 million subscribers were active on voice as against 149.3 million in Q1 2018 which represented 0.09 percent increase in subscribers’ base. Similarly, a total of 103.5 million subscribers were active on internet as against 100.9 million in Q1 2018 which represented 2.6 percent growth in subscribers’ base. MTN has the highest share of voice subscription and followed by GLO, AIRTEL, EMTS and Others respectively. Similarly, MTN has the highest share of internet subscription and followed by GLO, AIRTEL, EMTS and others.

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NEWS Ekiti Assembly passes N108.5bn supplementary budget one month to Fayose’s exit RAPHAEL ADEYANJU, Ado Ekiti

nly one month to the end of the four-year tenure of outgoing Governor Ayodele Fayose of Ekiti state, the House of Assembly on Thursday passed the 2018 Revised Appropriation Bill of N108.5 billion into law. Governor Fayose had earlier assented to a N98.6 billion budget size for 2018, tagged “Budget of Accomplishment” for which he later requested the State House of Assembly, through Executive Bill, for a Revised 2018 Appropriation Bill few weeks to the end of his tenure. Samuel Omotosho, the Chairman, House Committee on Information, said in a statement issued in AdoEkiti, on Thursday, that the passage of the Revised Estimates of N108.5 billion was in accordance with the rules of the House. He added that the move was similar to the 2014 Revised Appropriation Bill passed by the 4th Assembly

under the speakership of Adewale Omirin and was signed into law by the governor-elect, John Kayode Fayemi during his first tenure on September 15, 2014. He stated further that Revised Appropriation Bill is normal in all democracies as it allows the Executive Arm to make provisions for both over and under budgeted headings in their quest to operate under the laws of the land. He thanked all the Honourable members who left their comfort zones during the recess to attend to this state matter of urgent importance, recalling that the Speaker appealed to the House Committee on Appropriation few days ago to expedite actions on the scrutiny of the 2018 Revised Appropriation Bill. The House however extends their regards to the few Honourable members who were unavoidably absent due to the recess, adding that the Ekiti State 5th Assembly would resume full Plenary on October 8th,

2018 after the recess. Responding to the quick passage of Supplementary Budget, members of All Progressives Congress (APC) in the State Assembly however kicked against the passage of the supplementary budget. The leader of Opposition in the House, Gboyega Aribisogan said: “The APC lawmakers and some members are not in support of the Bill because it has been discovered that the outgoing governor wanted to use the House to legitimize fraud. “The proposed Appropriation Bill is the handiwork of Governor Fayose and his cronies to cover up massive fraud in some Ministries, Department and Agencies (MDAs). “The Appropriation Bill is not meant to improve the lives of our people in the state but to cover up some unapproved spending of the Governor. It is a fraudulent Bill to cover fraudulent spending. That’s why the governor wanted the bill to be passed without proper scrutiny.

Obaseki deepens basic education reform, unveils 7,000 newly trained digital teachers

o consolidate on the gains recorded in the basic education subsector in Edo State, Governor Godwin Obaseki will, on October 6, unveil 7,000 newly trained digital teachers in the teachers’ professional development programme of the Edo Basic Education Sector Transformation (Edo-BEST) initiative. Executive Chair Designate, Edo State Universal Basic Education Board, (SUBEB) and Special Adviser to the governor on Basic Education, Joan Osa Oviawe, who disclosed this in a chat with journalists, said the government is advancing rapidly with its reform of the basic education sub-sector. According to Dr. Osa Oviawe, “The graduation ceremony which will hold at the University of Benin Sports Complex, Benin City, is an

opportunity to highlight the governor’s vision to re-enact basic education in Edo State through the Edo-BEST programme.” She explained that “since the launch of Edo-BEST Programme in April, 2018, no fewer than 7000 head teachers and teachers have moved from analogue to digital teaching, using tablets and smart phones. 612 public primary schools have been captured in the programme, with over 150,000 pupils billed to benefit. In addition, over 800,000 textbooks are being deployed across the 612 schools currently.” The graduation ceremony she added, will hold at the University of Benin Sports Complex, Benin City. She further said that the ceremony was planned to coincide with the International Teachers day, on Oc-

tober 5, and would serve as a means to join teachers across the world in celebrating the contribution of teachers to development and also acknowledge the place of technology in the classroom of tomorrow. Recall that Governor Godwin Obaseki in April launched the Edo-BEST programme, where 2, 000 teachers were unveiled after participating in the pilot phase of the programme. An initiative of the Governor Godwin Obaseki administration, Edo-BEST is aimed at developing a highly-skilled teaching workforce by training, supporting and motivating Edo State teachers to succeed in the classroom of tomorrow and enhance the Edo State Basic Education curriculum thereby empowering children to compete effectively in the world of work.

EFCC recovers N106bn, $1.6m, .#6m, 25,575 Euros looted funds INNOCENT ODOH, Abuja

he Economic and Financial Crimes Commission (EFCC) says it has recovered N106, 516,222,383 billion, $1,635,925 million, 629,193 Pounds and 25,575 Euros from looters of the national treasury and secured 158 convictions between January and August 2018. This was disclosed by the Acting Chairman of the commission, Ibrahim Magu, at an interactive session with the media on Wednesday at the new EFCC headquarters in Abuja during which the com-

mission presented its scorecard entitled “Milestones in Nigeria’s Fight Against Corruption (2015-2018).” The anti-corruption boss noted that the commission was collaborating with the Federal Inland Revenue Service (FIRS)and the Asset Management Corporation of Nigeria (AMCON) to investigate and recover funds and properties within the provisions of the law. So far, the commission has recovered over N35 billion for the FIRS and about N4 billion for AMCON. “Tax liabilities of other institutions running into billions of naira have also been identi-

fied and the companies have agreed to pay’’ he disclosed. He said further that in an effort to maxixmise and utilize some of the forfeited properties recovered by the commission, numerous government agencies have been allocated such properties to be used as offices. “These magnificent properties are currently housing institutions such as the VAIDS office under the Ministry of Finance, a unit from the Defence Headquaters, Voice of Nigeria, North East Initiative and also the Pension Transitional Arrangement Directorate (PTAD),” he said.

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4 BUSINESS DAY NEWS Speed violation, bad roads cause over 2,608 road crashes in Q2 2018 JONATHAN ADEROJU

oad crashes are becoming everyday stories as road users continue to endanger their lives on the highway due to either the bad roads or poor maintenance of vehicles. According to a report from the Nigeria Bureau of Statistics data on road transport, an estimated 2,608 crashes occurred in Q2 2018. According to the report, 50.65 percent of the total road crashes were caused by speed violations in the quarter under review. Tyre burst and dangerous driving followed closely at 8.5 percent and 8.40 percent respectively. According to the report, a total of 8,437 Nigerians get injured in road traffic crashes. Out of the total number of injured Nigerians, 7,946 people, representing 94 percent of the total number ,are adults and the remaining 491 which is making just 6 percent of the total number are children. Amongst the total number of injured Nigerians, an estimated 6,415 of them are males, representing 60 per-

cent of the total population and 2,022 are females also representing 24 percent of the total population. However a total of 1,331 Nigerians got killed in road crashes in Q2 2018, according to this report 1,257 of the total number of the deaths were adults which is over 94 percent of the total number. The remaining 74 Nigerians were recorded a children thereby resulting to 6 percent of the total number. A number of 1,047 were recorded as males representing 79 percent of the number and 248 females representing 21 percent death of the total population. The total estimated vehicle population in Nigeria in Q2 2018 was recorded at 11,760,871 that is matching the total estimated population of the country at over 198 million in 2018. According to the report the ratio of Nigeria’s vehicle population is said to be 0.06. And so the data of the category of vehicles involved in road crashes in Q2 2018 is reflected that 60.29 percent of these vehicles are commercial is has a number of 2,447.

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Stock investors wealth depletes further by N98bn …only 9 stocks gain amid 26 decliners IHEANYI NWACHUKWU

he value of listed stocks on the Nigerian Stock Exchange (NSE) depleted further by about N98billion after Thursday’s trading on the Bourse. GTBank Plc stock led the basket of only 9 stocks that gained against 26 losers led by Nestle Nigeria Plc. The Nigerian Stock Exchange All Share Index (ASI) decreased by 0.84percent, while the Year-to-Date (ytd) return stood further low at 16.27percent. The All Share Index closed lower at 32,022.23 points as against the preceding day close of 32,292.79 points while Market Capitalisation closed at N11.691 trillion against preceding day close of N11.789 trillion. The share price of Nestle Nigeria Plc declined further, from N1479 to N1398, down by N81 or 5.48percent; Cement Company of Northern Nigeria Plc declined from N27.85 to N25.1, down by N2.75 or 9.87percent. Conoil Plc was down, from N24.3 to N21.9, losing

N2.4 or 9.88percent. Lafarge Africa Plc also dipped from N23 to N20.7, down by N2.3 or 10percent; followed by Forte Oil Plc which lost N1.4 or 7.41percent, from N18.9 to N17.5. GTBank Plc stock price increased from N32.6 to N32.95, up by 35kobo or 1.07percent. Nigerian Breweries Plc advanced from N84 to N84.1, up by 10kobo or 0.12percent; UBA Plc rallied from N7.05 to N7.15, up by 10kobo or 1.42percent; Unity Bank Plc stock advanced from 78kobo to 85kobo, up 7kobo or 8.97percent; while Skye Bank Plc increased from 61kobo to 67kobo, up by 6kobo or 9.84percent. The volume of stocks traded decreased by 29.71percent, from 246.9million to 173.5million, while the total value of stocks traded decreased by 46.44percent, from N6.93billion to N3.71billion in 3,082 deals. GTBank Plc, Zenith Bank Plc, Skye Bank Plc, UBA Plc, and FBN Holdings Plc were actively traded stocks on Thursday September 13, 2018.

Friday 14 September 2018

Obaseki revs up industrialisation drive with new policy

fforts to deepen the ongoing industrialisation drive of the Governor Godwin Obaseki-led administration received a boost on Thursday in Benin City, the state capital, as development experts met to review the Edo State Industrial Development Policy. Welcoming stakeholders to the state’s ‘Industrial Policy Validation Workshop’ Obaseki noted that since he assumed duty, his focus has been on driving holistic development through policies that would engender sustainable economic growth. He told the workshop participants that his administration is committed to developing a modern state where citizens will be empowered through initiatives that will prioritise employment creation, skills acquisition and entrepreneurship. Obaseki, who was represented by his Special Adviser on Economic and Development planning, Mr. Joseph Eboigbe, maintained that the ongoing reforms in all sectors of the state were designed to eliminate barriers in the ease of doing business. “Our administration will continue to collaborate with

relevant stakeholders such as the federal government and members of the organised private sector to achieve our set goals, like the reduction of unemployment to below 15 per cent and creating the enabling environment for businesses to thrive in the state.” He assured that his administration is developing a modern state where citizens will be empowered to become employers of labour, adding that the state is well on her way to becoming a reference point in creating young entrepreneurs. Omo Aregbeyen, one of the experts working on the Edo State Industrial Development Policy, described the industrial sector as a key driver for increasing growth rates, generation of employment opportunities and sustainable economic growth and development. He said the workshop was put together to validate the proposed industrial framework for the state, and explained that the vision of the governor Obaseki-led government “is to transform Edo State from a producer of primary goods into a producer of processed valued-added goods for both the domestic and export market.”

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Travelex to sustain partnership with CBN, ABCON, EFCC on BDC reforms HOPE MOSES-ASHIKE

T Adesola Adeduntan, MD/CEO, First Bank of Nigeria Limited (sitting right), with Hou Zhigang, chairman/president of China-Africa E-Commerce Co.,Ltd. (sitting left), whilst Bashirat Odunewu , FirstBank’s group executive, international banking group, and Zhicheng Jiang, director of marketing of China-Africa E-commerce, look on during the MOU signing at the China-Africa CEO High level Dialogue in China, recently.

Utomi, others to speak at special youth gathering in Lagos

he Deeper Christian Life Ministry is set to host a teeming number of youths, numbering 50,000, from all over Lagos State, in a full-orbed one day programme designed to inculcate the noblest and the highest of virtues in the youth, and steer them away from the swarm of anti-social and push-pull tendencies that are causing serious distractions for them especially in this era of unbridled exposure to the social media.

In a release issued from the office of the General Superintendent, the one-day event which will hold on Saturday, September 22, 2018, starting from 8 o’clock in the morning in the newly commissioned church headquarters in Gbagada, will involve strategic multi-disciplinary learning, leadership skills, entrepreneurial focus, with strong Spiritual underpinnings, will be hosted by Pastor William F. Kumuyi, the General Superintendent

of the Deeper Christian Life Ministry. The Keynote Speaker at the event is the renown academic and social commentator, founder and proprietor of the Centre for Values in Leadership, Pat Utomi, a professor. He will be joined by other distinguished speakers to fire the excellent and positive instincts of the youth. According to the press release, the Deeper Christian Life Ministry has for over the last four decades been in

Concerns as ECOWAS, again, misses single currency adoption criteria ONYINYE NWACHUKWU, Abuja

ighteen months to the September 2020 deadline to attain the proposed monetary integration and single currency project of the ECOWAS region, none of the member-states could achieve all the led down convergence criteria required for the programme to take off. This now casts doubts on the possibility of establishing a Monetary Union (MU) and adopting the single currency - proposed as the Eco - by the 2020 date which member states insist is sacrosanct Ngozi Egbuna, Director General of the West Africa Monetary Institute (WAMI) who gave an update report on the project in Abuja on Thursday said only three of the ECOWAS countries have made remarkable progress, meeting three out of the four convergence criteria as at today. She was speaking at the 37th meeting of the committee of governors of the central banks of member states of the West African Monetary Zone (WAMZ) being hosted by the Godwin Emefile led Central Bank of Nigeria (CBN). In November 2002 decided to facilitate the harmonization of fiscal and mon-

etary policies by introducing two sets of convergence criteria to drive the effective the establishment of the MU and adoption of the Eco. But to achieve a common Monetary integration programme required membercountries to comply with a set of primary and secondary convergence criteria to ensure a stable macroeconomic environment. Under this programme, there are four primary criteria and six secondary criteria, the satisfaction of which is a necessary condition for a successful monetary union. The Primary Criteria include; Budget Deficit/GDP ratio (excluding grants) of less or equal to 4 per cent; Inflation rate of less or equal to 5 per cent; Central Bank Financing of Budget Deficit of less or equal to10 per cent of previous year’s Tax Revenue; as well as Gross External Reserves of greater than or equal to 6 months of imports cover. The Secondary Criteria include; Prohibition of new arrears and liquidation of all outstanding ones; Tax Receipts/GDP ratio of greater or equal to 20 per cent; Salary Mass/Total Tax Receipts ratio of greater or equal to 35 per cent;; Public Investments financed from inter-

nal resources/Tax Receipts ratio of greater or equal to 20 per cent;; Positive Real Interest Rates; and Real Exchange Rate Stability. Spwaking at the meeying, Egbuna said the assessment of member states performance on the primary convergence Criteria show that none of the countries met all the four criteria. However, the average performance of the zone improved during the year under review. She said The Gambia, Guinea, Nigeria attained three criteria each. The Gambia missed the fiscal deficit criterion, Guinea slipped on the gross eternal external criterion while Nigeria missed the inflation criterion. Ghana and Liberia achieved two criteria each, Ghana missed inflation and fiscal deficit criteria while Liberia missed inflation and Central Bank financing criteria. Sierra Leone met one criterion- the gross external reserves. Raising concerns on the inability of member states to meet those convergence target many years after, CBN governor Emefilele told the gathering that Nigeria was still committed to the subregional economic integration programme, but will progress with caution.

the vanguard of empowering and redirecting youths towards imbibing greater values, creativity, entrepreneurship and leadership skills. These often, involve engaging youths in conferences, workshops, seminars, trainings, mentorship and other youth-focused projects. The release further stressed that the ministry recognises that “in our world today, about 60percent of the population is below 35 years of age.

ravelex UK through its Nigerian subsidiary has restated its commitment to sustaining existing cooperation with Nigeria’s financial sector regulators in efforts to reform the Bureau De Change (BDC) sub-sector. The company disclosed this at the end of its 2018 national sensitisation seminar for BDC proprietors and operatives in Lagos last week. Travelex, a global leader in foreign exchange transactions in collaboration with the Central Bank of Nigeria (CBN) and the Economic & Financial Crimes Commission (EFCC) last week engaged the Bureau De Change (BDCs) on international best practices. One of the recommendations at the seminar was see the need for a cash-less approach to the weekly allocation of FX to BDcs – that is partial electronic/ digital payment as well as see the need for more inter-agency collaboration on intelligence sharing and capacity building for BDCs. Mark Smith, the company’s Commercial Director for Africa expressed satisfaction with the outcome of the seminar especially the high

level of cooperation between Travelex and Nigeria’s monetary and financial authorities and regulators. Specifically, he thanked the CBN and EFCC for partnering with the company to raise the level of compliance and operational best practices in the nation’s BDC sub-sector. In addition, Smith praised the efforts of the leadership of the Association of Bureaux de Change Operators of Nigeria (ABCON) for its efforts at improving the operational efficiency of its members through the application of IT solutions. According to Smith, Travelex which is the global leader in foreign exchange transactions, will in the new year intensify its social responsibility efforts through the organisation of further sensitisation and training platforms to add increased value to Nigeria’s BDC and other foreign exchange related sectors. Anthony Enwereji, general manager, Travelex Nigeria Limited, in his welcome address during the seminar said the aim of the forum is to partner with critical authorities, proprietors, and operatives to raise the standard of practice in the Nigerian BDC sector to global standards.

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Preparing for earnings calls: Lessons for CEOs and CFOs

NKIRU BALONWU Dr. Balonwu is Chair of African Women on Board (AWB), and Managing Partner at RDF, a strategic communication and stakeholder engagement firm that provides strategic counsel to public and private sector institutions and C-suite executives.

he earnings call has become an increasingly powerful tool for corporations, providing a shopwindow into company performance and the vision of the stakeholders who steer it. But more recently, a number of high profile cases have warned of the dangers of being ill-prepared for such calls and indeed public appearances in general. With such high attention now being placed on this aspect of the business cycle, it is important to take a balanced, transparent, and most importantly prepared approach to quarterly earnings reporting. Elon Musk hit the headlines earlier this year when a combative earnings call attracted attention for all the wrong reasons. The Tesla superstar CEO accused analysts of asking “boring bonehead questions” and refused to answer them, in a pre-empt to further controversy about this CEO’s erratic behaviour, including smoking a marijuana cigarette during a video recorded talk show appearance. All this leading to an emerging narrative that Musk is at best unfocused or, at worst losing control altogether. More recently, and more seriously, CBS CEO, Les Moonves, who has since

resigned, did not address allegations of sexual misconduct on an earnings call in which it was believed that he would, prompting Keach Hagey, Media Reporter for the Wall Street Journal, to tweet: “Are we really going to make it to the end of this CBS earnings call without a single analyst question about the allegations against the CEO? They sent the stock down 11% in two days.” This issue is emblematic of a wider trend going on in the business world today, where high profile CEOs and other leading stakeholders seem ill-prepared for public life. As press packs and politicians alike question Facebook’s Mark Zuckerberg on the data-driven controversies surrounding the company, it’s clear that CEOs need to be even more prepared to address issues on the world stage. And lest we forget the cringe worthy interview given by Tinder CEO Sean Rad in 2015, the day before parent company Match Group went public: “Every other week I fall in love with a new girl.” The point here is that in a digital world of ‘always on’ and ‘always reported’, public communications are scrutinised more heavily than ever before. Once overlooked as a quantitative box-ticking exercise, quarterly earnings reporting has become a marked event in the annual business cycles of leading companies around the world. From Facebook, to Tesla, to CBS, the public performances of senior stakeholders have become just as important to the bottom line as the quantitative figures of the companies themselves. But where potential pitfalls lie, so too do opportunities. When handled in the right way, the earnings call can be one of the most powerful ways to conduct investor and press relations, offering a direct communications channel from the mouth of CEOs and CFOs to ear of desired audiences. Here, we look at three key lessons for senior stakeholders when preparing for these events.

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It is important to remember that earnings do not exist in a bubble independently of dayto-day life and news, and if there is an elephant in the room it must be addressed

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Balance, transparency, preparation While it can be tempting to dress communications up in PR-speak, it is important to take an earnest and balanced look at the company books before reporting takes place. What are the areas performing well? Where is growth stalling? Is there an issue in a particular sector that is now being addressed? It is important to emphasise company strengths, but investors will be just as interested in how improvements are being implemented as where current revenue streams are coming from. Transparency is key in all communications, and never has this been truer than in a digital world, where every single world gets heavily scrutinised, shared, and stored forever in the ether. Alignment of messaging across company departments is key, and senior stakeholders need to work closely with their communications teams in advance of an earnings

to call to make sure that everybody is singing from the same hymn sheet, and there are no surprises. And of course, the key to all of this is preparation. Quarterly earnings should become an intrinsic part of the company fabric, to be worked on throughout the quarter itself, as opposed to just a couple of days before a call takes place. The correct metrics should be collected, data should align across departments, and potential growth and decline areas identified as early in the cycle as possible. If you stay ready, then you do not have to get ready. Corporate vs. Colloquial In a social media world, it’s crucial to communicate in a way that breaks down the fourth wall between corporate and community. We are all human beingsand selecting the right language to use will appeal to people’s emotion as well as their reason. The rise of populism in politics in recent years has taught us this. The ability to empathise and communicate on an individual level is a powerful skill, and as far back as 2016, an article in Quartz advised CEOs to ditch their prepared remarks, in favour of more free flowing approach. In an environment where bottomline financials are concerned, phrases like “boring bonehead questions” and “every other week I fall in love with a new girl” are not helpful, not where million-dollar investments are at stake. Tonality and attitude must be factored in; it is fine to communicate with people in a modern way provided you do so with integrity and professionalism – an absence of these qualities will instantly be picked up on. So again, in this area balance is key. Remaining open and transparent while also demonstrating professionalism and passion about your business can make reporting run all the smoother. In the digital world, the lines between corporate and colloquial have become more blurred. But balanced in the right

way, effective language can be a key ally for business success. C-Level executives can prepare for earnings calls and other public communications by taking professional communication training courses including RDF’s advanced media training for C-Suite executives. Accompanying literature One way to deliver balanced financial reporting, is by providing professional, engaging literature around a call. While a CEO can deliver the headline soundbites in person, accompanying presentation decks, press releases, and financial reports are crucial in laying out the quantitative facts in an approachable way. Senior stakeholders and journalists can see the figures and accompanying analysis in front of them in black & white, highlighting that you have done the work, and presented it with the utmost diligence and transparency. This legwork allows for greater personality/engagement on the call itself, because it frees you up to approach people in a humanistic way, while always having something tangible to refer back to. Working with your departments and for your investors throughout the quarter can greatly help in delivering a successful call. While the temptation can be to ‘perform’ in the same vein as an Elon Musk, the short-term publicity benefits that this can bring are by far outweighed by the more long-term reputational damage it can do to your brand. Equally, it is important to remember that earnings do not exist in a bubble independently of day-to-day life and news, and if there is an elephant in the room it must be addressed. Ultimately, delivering a successful earnings call is about being balanced, transparent, and prepared, and carrying the right attitude and tonality into these events.

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Lagos Traffic Radio and traffic management

RASAK MUSBAU Musbau is of the Features Unit, Lagos State Ministry of Information and Strategy, Alausa, Ikeja.

agos Traffic Radio (96.1 FM), which was created about 6 years ago has, no doubt, become a household name among commuters and motorists who mostly depend on it for first-hand information on traffic situation across the metropolis. Rising traffic congestion is an inescapable condition in large and growing metropolitan areas across the world, from Los Angeles to Tokyo, from Cairo to Sao Paolo. Peak-hour traffic congestion is an inherent result of the way modern societies operate. It stems from the widespread desires of people to pursue certain goals that inevitably overload existing roads and transit systems every day. Like every cosmopolitan city across the world, Lagos also experiences traffic gridlock. Until the birth of Lagos Traffic Radio, nothing, not even years of living here

adequately ever prepares motorists for a complete standstill in the middle of the roads. In the past, people could doze off and wake up 30 minutes later still on the same spot they previously were with no clue as to the cause of the gridlock. Famous artistes such as Ebenezer Obey, Majek Fashek and Fela Anikulapo-Kuti have all sang about the Lagos traffic situation and how it feels to get stuck in it. That was when the population (of people and vehicles) and traffic situation were not as much as it is now. A life of struggle and survival of the fittest you would call it, yet economic opportunities continue to draw more and more people to Lagos. Ordinarily, it could have been worse if not for the variety of strategies and approaches that have been deployed by successive administrations in the State to deal with the perennial gridlock. These include the issuance of ‘Odd’ and ‘Even’ numbers in the early 1980s which allowed motorists ply certain routes within specified periods. The success of this approach may not have been visible and adequate for the Lagos of today. Establishment of LASTMA, LAGBUS, LAMATA, BRT system etc. are among strategies and policies devised toward ensuring free flow of traffic, road safety and social and economic development.

Today, one thing that is very clear is that Lagos Traffic Radio is optimally responding to the challenges of traffic management in the State by effectively communicating traffic information to the people. With the radio, commuters and motorists are empowered with the needed information on the situation of the roads within the different axis of Lagos at any point in time and don’t have to doze off and wake up minutes later again where there exist alternative routes. Lagos Traffic Radio 96.1 FM predominantly reports Lagos traffic to Lagos motorists, but because of the power of technology it has been able to reach even the core areas of the metropolis including places such as Agilete, Ogere and even up to the fringes of Ibadan. Though Lagos has huge concentration of media houses, Traffic Radio 96.1 FM, which runs 24 hours services, has proven to be a well-thought out problem solving innovation and a critical enablers of democracy. It has continued to create platforms for citizens to participate in, and contribute to traffic management. It teaches Mass Communication students practical citizen journalism as motorists, commuters, passers-by, LASTMA officials call-in from time to time to file-in their report and at the same time respond to questions from the station’s anchors on duty. In other words, while officials of LASTMA could be referred to as Chief

Correspondents, it makes all interested Lagosians news correspondents. The station actually from inception work together with LASTMA, a synergy partner who collates the information about traffic information while the station uses the power of radio to communicate to the public the Lagos traffic situation. Importantly, Traffic Radio has justified the argument that effectiveness and power of radio in the present digital age or ever can never diminished. Many radio listeners are pushed to listen to 96.1 FM majorly for traffic update to plan their movement and hence get expose to other items in the news budget of the station. Some people only listen to radio just because of traffic situation while others plan the routes to take, for instance maybe to take Old Carter Bridge, Eko Bridge or Third Mainland Bridge. Although Traffic Radio, and indeed government, may never, for obvious reasons, be able to completely eliminate road congestion, it has provided platform for both road users and traffic management to interface on prevailing traffic issues. One is not also oblivious of instances where feedbacks gotten from callers have shaped planning by policy makers. It will interest the discerning that since the advent of the Traffic Radio, it has continually assisted the law en-

forcement agencies in educating the citizenry on laws relating to roadways. As it is, only chronic cynics will not agree that the station has contributed substantially to mitigation of traffic snarl in the state or crash fatalities and fatalities related to speed. Moreover, it makes traffic management agency more active and alive to their duties in consciousness of avoiding any action that will indict them. In-spite of being a state-owned radio station, 96.1 FM is known as one discharging it duty professionally, independent of influence or interference from government quarters. Equally, the station is an invaluable avenue for the education of the people on the best traffic and road practices and also form a feedback system for data and correspondence between the government and the populace in agreement with Daniel Lerner’s (communication scholar) assertion that ‘Mass Media Networks are distinct index of mass mobilization-of the participant society (democracy).’

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Caution in dealing with China ADAMU GARBA Garba is an APC presidential aspirant

sman Bello, a trader in fabrics at the popular Kanti Kori market in Kano, shared his frustration with me the last time I visited his store for my Sallah shopping. “The Chinese have taken over our market” he lamented. “They now import these fabrics in large quantities from Mali, where they have acquired huge commercial farms to grow cotton”. The reality, in what used to be the biggest fabrics market in West Africa largely run by indigent people, is that all these folks now work for the Chinese. The Chinese have not only dominated the wholesale segment of the market, they are now taking over the retail space. China has in the last three decades remarkably grown in economic size and global influence to the point in which they are now considered a major threat to America’s strategic interests around the world. More so, China, through its Belt and

KEHINDE AKINFENWA Akinfenwa is of the Lagos State Ministry of Information and Strategy, Alausa Ikeja.

ithin the last two decades, tourism has emerged as a huge global treasure and a symbol of socio-cultural advancement and economic prosperity. It has remained an elegant sector in the global economic index, representing the highest generating revenue for developing countries. Aside the aesthetic appeal, enthusiasm and serenity that are usually associated with it, it has dynamically evolved to influence the viability of other sectors such as agriculture, construction, telecommunication, IT, manufacturing, education, culture, sports and entertainment. Despite its glowing commercial and political opulence, the city of Lagos still maintains its historical adornment, cultural profusion, expansive beaches, extensive natural and artistic attractions and adventure opportunities. In Nigeria, any time stuffs like cuisines, monuments, natural wonders and vibrant nightlife are discussed; Lagos spontaneously comes to mind. Of the few modern cities in Africa that can best relay the struggle and triumph of the black race to the conscience of the entire world, Lagos provides the most grandeur of such heritage identity. Today, Lagos has evolved to become one of the fastest growing, liveable and multicultural cities in the world. One major location that titillates the feelings of primordial journey and emancipation in Africa is the historical city of Badagry. Badagry is a repository of the Trans-Atlantic

Road policy is now leading what geo-political strategists describe as the ‘New Scramble for Africa’. From roads to railways, hospitals and bridges, the presence of China in Africa is ubiquitous and undeniable. President Buhari, like several other African leaders, has celebrated the recent loan of $328 million from China, which was secured at the ongoing African-China summit in Beijing. Much as we like to applaud the partnership with China, it is imperative to be cautious about this. Nigeria suffers a trade imbalance with China in a ratio of 20 per cent - 80 per cent (meaning that we only export 20 per cent of the total volume of traded goods to China and import a staggering 80 per cent). In fact, most of our exports to China are raw materials extracted by Chinese companies, using Chinese labour. First, over 90 per cent of Chinese businesses are either state-owned or are being subsidised by the state. This makes it almost impossible for locals to compete with the Chinese, consequently leading them to close shop. Outside the resources they extract from African states, most Chinese businesses also depend on supply lines outside the countries they manufacture in, creating little value for the local economy of their hosts. In our instance, it is therefore necessary that imported consuma-

bles must have their manufacturing base in Nigeria, and engage local labour. In that light, goods not manufactured in Nigeria must be imported only by local businesses. Second, the Chinese populate most of their businesses operating within Africa with their citizens, leaving only very low skilled jobs for people in places like Nigeria. Hence, there is need to ensure that at least 80 per cent of local labour for major infrastructural project are handled by Nigerians. Third, the Chinese hardly adhere to global standards of safety in their operations in African countries; they depend on extractive resources without serious consideration for the impact of their extractive activities on the environment. In the end, they leave behind chaos in their host communities. Also, the Chinese have continued to increase the debt burden of African countries, leaving them with very little choices in negotiations over this. Consequently, the Chinese take over critical and strategic state-owned asset from defaulting governments, in lieu of payments on the loans. What then can we do? The only way to deal with the Chinese, knowing that they have a much stronger, experienced and skilled diplomatic corp, is to route

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The reality, in what used to be the biggest fabrics market in West Africa largely run by indigent people, is that all these folks now work for the Chinese. The Chinese have not only dominated the wholesale segment of the market, they are now taking over the retail space.

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our negotiations with them through global institutions like the World Trade Organisation (WTO), which will compel the Chinese to uphold certain standards. Under my presidency, we will regularise and conform to WTO standards and endorse the Transport Facilitation Agreement that will regulate not just trade with China, but also with other important foreign partners. More importantly, we must engage the Chinese through the build, operate and transfer principle. This way, for whatever infrastructure the Chinese intend to build in Nigeria, they must have Nigerians in the front row seats. This way there will be the opportunity for skills exchange. Furthermore, the Chinese must also operate these infrastructures alongside Nigerians over a period of time, until such a time where the entire structure can be handed over to the government. We should remember that every country sets up a foreign policy to pursue their own interests, with other countries coming only as distant seconds. China is not here to rescue us, they are here to further their own interests and we must remain vigilant about this.

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Towards maximizing Lagos tourism potentials slave trade where Africa’s rich and extensive history is evident. The city harbours the Black Heritage Museum that provides an insightful experience of the dark days and contains historical artefacts, trade documents, sketches, photos, sculptures and other salvaged historical records. A journey into the entrails of the museum’s nine galleries will throw you into splendour of antiquity. Other monumental sites in Badagry that resonate the experience of the dark days include; the point of no return, ark of no return at Gberefu Island, Vlekete Slave Market, first storey building in Nigeria, Well of Spirit Attenuation (Tomiyi well) and slave Port and Palace. Towards the regeneration of this patrimony and the preservation of its sacrament and relics of slavery, the State government has upgraded the 154-year-old museum, constructed a Tourism Information Centre, mini theatre and performance stage and exclusive bar at Slave Port. A trip to these iconic sites will surely be mind-blowing. The State responsive approach to have distinct policy in promoting and sustaining her inspiring heritage through the State’s Council of Arts and Culture has built an enabling environment for private participation in cultural advocacy and creative presentation. Through its generation and participation in local and international events, the council has nurtured and promoted diverse talents in fields such as creative arts, music, entertainment and sports. The State’s public private partnership model has afforded private

initiative to thrive in harnessing and strengthening the component units within the tourism sector. The expansion of hospitality and construction of tourist destination further illustrates the determination of the state to upscale investment in the creative industry, stimulate the state economy and cause an improvement in the aesthetic appeal of all existing iconic facilities in the state in partnership with stakeholders. Some of such projects include the ongoing world-class Lagos museum which co-exists alongside the famous National Museum at Onikan, the redevelopment of J.K Randle Centre and the construction of six new theatres across the state. Furthermore, the state is bequeathed the finest qualities of nature, a coastal city with lots of sandy beaches adorned with the coconut trees nestling in various parts of the metropolis, the charming landscape and the enthralling atmosphere ideal for relaxation spots makes it a bride of tourists. The city’s waterways boast vibrant economic and unlimited recreational opportunities and a major business best suited for that stretch of waterway is tourism. Interestingly, tourism is a powerful incentive for the provision of adequate infrastructure and facilities that create favourable environment needed for the industry to thrive. The government is glutting the rural and urban areas of the state with relevant social infrastructure through the construction and expansion of roads, bridges and flyovers across the state. Massive urban and rural electrification project baptized “Light-up-Lagos” has illuminated over six hundred streets across the

state and improved power supply. Currently, the state is pursuing an integrated road network through the construction of several excellent roads to reduce gridlocks and since the city is interlinked with a network of waterways, the state is optimally exploiting this as a motivation to make water transportation a viable option. Conspicuous innovative efforts to strengthen the operation of security agencies to meet the inevitable security challenges of the 21st century highlight government desire to create an excellent landscape for tourism and business development. This has modelled the city a breeding habitat for both local and foreign investors and has engendered the endearing expedition tourists have always enjoyed in the state. With the establishment of Office of Overseas Affairs and Investment (Lagos Global), the State is not only projecting to the world its abundant potential for business, tourism and leisure, it is also managing investment opportunities that will outlive generations. One major project that will soon launch the State into global eye and open it for greater economic prosperity is the Lekki Free Trade Zone (LFTZ). Soon, the public-private driven project will host an international airport, seaport and a refinery among others. More importantly, the development of tourism depends mainly on the quality of the environment and natural sustainability because there is hardly any kind of business, which is more interested in the preservation of all components of the environment than tourism. To

this end, government is channelling sufficient technical and financial assets to replenish the resources used by tourists and sustain the ecosystem (natural endowment) by promoting the ideals of greening and efficient disposal mechanism. Towards combating climate change and environmental degradation, the state has been embarked on regular planting of trees and landscaping by ensuring the establishment of parks and gardens units in all LGAs and LCDAs to stimulate the development of recreational parks at the grassroots. In order to further leverage on its various tourism potentials, the state government has come up with a tourism master plan that will consolidate current gains in the sector. The master plan that was designed by Messrs Ernst & Young focuses on culture and heritage, film, art and entertainment, business tourism, nature and adventure, medical and wellness and beach and leisure. With dwindling oil revenue, there is indeed an urgent need for all tiers of government in the country to diversify the economy. Developing the tourism sector remains one sure option that can help in accelerating our socioeconomic development. This is what the Lagos State government aims to achieve with its current strides in the sector. With many attractive tourist centers, diverse cultural heritages and a resilient people, Lagos certainly stands to gain a lot if all stakeholders evolve new strategies to explore its huge tourism potentials.

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Editorial

Friday 14 September 2018

Progress with the Onitsha 5 coding champions

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presidential reception September 6 tipped the scale in the accolades Nigeria has showered on the brilliant young girls who won the World Technovation Challenge in Silicon Valley, San Francisco, the USA on August 8. Congratulations to Promise Nnalue, Jessica Osita, Nwabuaku Ossai, Adaeze Onuigbo and Vivian Okoye. These students of Regina Pacis Secondary School, Onitsha, Anambra State carried aloft the flag of Nigeria in technological innovation in a field of 12 countries. Kudos also to their mentor Uchenna Onwuamegbu. The youngsters competed under the name Team-SaveA-Soul. They defeated competition from teams such as the United States of America, China, Spain, Turkey, and Uzbekistan. Among the 12 finalists were teams from countries with a higher standing in Science Technology Engineering and Mathematics (STEM) than Nigeria, hence the ululation across the land. Their app is the FD-Detector. It was on point as it tackles the problem of fake drugs in the Nigerian environment. FDDetector identifies counterfeit and expired medicines using barcodes. FD-Detector also educates users on six characteristics of drugs. Team member Jessica Osita bore personal grief from the loss of a brother to fake drugs. It showed in her commit-

ment. They spent five months researching and building their app, drawing on guidelines from Technovation. They used opensource software from the Massachusetts Institute of Technology. Vice President Osinbajo spoke of the plans of the Federal Government to grow the technology culture in Nigeria. He said the government is looking at including technology education in the curriculum starting from preschool and primary. The effort would be in recognition of the growing importance of technology. Osinbajo added that Nigeria would rejig STEM to include Arts and bring on STEAM. The inclusion of Arts is an overt recognition of the contribution of the humanities to technology as witnessed in the beautiful typefaces Steve Jobs incorporated into Apple Mackintosh from his classes in graphics. The Vice President said the Federal Government had developed an “indicative curriculum” for STEAM that it would soon release. Before the presidential honours, the home state of Regina Pacis Secondary School had done the needful. Kudos to Governor Willie Obiano of Anambra State for being an executive cheerleader for the victorious girls before and after. Obiano bought into the vision of the team leader and supported the Onitsha 5 Coding Girls. He boosted their participation with a reception and financial support and then welcomed them with monetary rewards, scholarships and

assurance of support. Technovation describes as the world’s largest technology entrepreneurship programme for girls ages 10-18. Nineteen thousand girls participated in 2018. It runs across 100+ countries, supported by UNESCO, Peace Corps and UN Women. Through Technovation girls work with women mentors, find a problem in their community, develop a mobile app, and launch a start-up. Technovation has Junior and Senior categories. The Onitsha 5 won in the Junior Category. Entries will open in December 2018 for the 2019 competition for Juniors and Seniors. A key difference is that participants in the Senior Category write and showcase a Business Plan for the venture they would run with their app. Post the applause and receptions, what happens with the FD-Detector and the Onitsha 5 Coding Girls? We ask because it is not the first time Nigeria would celebrate scientific or technological innovations, by an individual or a group. After the celebration and speechifying by Government, the inventor goes home to silence. Nigeria forgets. Until another one happens. We cite one quick example because of its contextual relevance to these times of bad roads. Ebenezer Meshida of the University of Lagos won the Nigerian Prize for Science in 2008 for his work, “Solution to Road Pavement Destabilisation by the Invention of Lateralite”. The work of the professor of engineering

geology provides a material tested and proven to help solve the problems of road deterioration due to improper or inadequate soil tests and application of materials. The NLNG Science Prize, among others, contains a repository of ideas, innovations and breakthroughs. Nothing has happened to them. Zilch. Nigeria has not developed any of the ideas produced by its researchers into products and services in common usage. Progress with the Onitsha 5 Coding Girls would thus come only from the development of their App into one that citizens can buy or download freely and use on their phones and other platforms. It is fitting that the Director General of the Nigerian Technology Development Agency was one of those who received the Onitsha 5 Coding Girls alongside the Vice President. There are two known components of technology in use. They are research and development. While there is plenty of research in Nigeria, we often fail to move to the next step of “development”. We call on Vice President Osinbajo to actualise the promise of working with the Anambra State Government to ensure progress with the Onitsha 5 Coding Girls by beginning a process to enable commercialisation of the FD-Detector App. Nigeria must do what others are doing to move from a laboratory app to one of general application and use by the populace.

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Friday 14 September 2018

CityFile

Physicists offer to address Nigeria’s insecurity RAZAQ AYINLA, Abeokuta

isturbed by the level of insecurity in the country especially as fueled by the activities of Boko Haram, herdsmen/ farmers’ clashes, armed robbery, kidnapping; physicists under the auspices of Nigerian Institute of Physics (NIP) have offered to secure Nigerians from crimes and criminality. The Nigerian Institute of Physics (NIP), Ogun State chapter recently converged on Federal University of Agriculture, Abeokuta (FUNAAB) for a seminar and practical demonstrations on scientific strategies to be undertaken that would address insecurity and scarcity of clean and safe water. Speaking on the theme which centred on “physics in our today’s world”, Joseph Coker, a PhD holder and coordinator of NIP, declared that physicists could be of help in fighting crimes through surveillance and security mechanisms such as closedcircuit television and other radioactive signals. Coker noted that government would better curb

crimes if there were strategic moves to engage professional scientists such as physicists in any security issues and action being taken against crimes. He said the association and the Institute like Nigerian Institute of Physics (NIP) were ready to offer help through the provision of surveillance and security equipment. Adeniyi Olowofela, professor and commissioner for education, Oyo State, on his part, submitted that physics is needed to achieve any form of technology in security, ICT, and any form of engineering, saying that a lot could be done and achieved in Nigeria if proper attention would be paid to the teaching and practice of physics. He said, “Physics is everything called technology, there is no technology without physics, be it, ICT or any form of engineering, you need the full knowledge of physics to do it. Unless our capacity in physics is developed, we can’t develop our technology and we can’t have socio-economic growth and development in proper perspective.”

Bad road: Badagry cut off from Nigeria – Sowore

moyele Sowore, a presidential aspirant of African Action Congress (AAC) has described LagosBadagry expressway as the worst road in Nigeria. Speaking at a town hall meeting organised by the party in Badagry, Sowore said the historic town had been cut off from the rest of the country due to deplorable state of the expressway. “I have traveled all over Nigeria, but I have not seen any international expressway like Lagos-Badagry. We spent almost five hours to get here instead of one and half hours. “Badagry town has been

cut-off from Nigeria due to deplorable state of the road. This is very shameful,” the presidential aspirant said. He promised to construct two expressways from Badagry to Lagos, and another one linking Badagry and Ogun State if elected into power in the 2019 general elections. Sowore said that over 43 million black Africans were sold into slavery in the coastal city about 400 years ago. “Nigerians are indirectly going into slavery by traveling to different countries looking for jobs. I am in politics to stop this by providing 500,000 jobs yearly.

Flood displaces 1,300 persons in Niger

o fewer than 1,300 persons have been displaced by flood in eight communities in Shiroro local government area of Niger State. Ibrahim Inga, the director general of Niger State Emergency Management Agency (NSEMA) disclosed this in Minna, saying the communities located around Zungeru Hydro Power Station were submerged following the release of water from Shiroro dam. Inga said that farmlands and houses were also affected, adding that the displaced persons have been evacuated to Central Primary School

Zungeru. “This water is flowing from Shiroro hydroelectric power station as a result of the spillage ongoing into the villages. “We have communicated to the management of Shiroro hydroelectric Power Station to reduce the level of their spilling to enable the people return to their homes,” he said. He said that the agency was taking inventory of the affected persons to ensure that they were free from diseases. The official added that the agency would immediately provide the victims relief materials including food. NAN

A complete blockage of Apapa Bridge yesterday, leaving thousands of commuters stranded for hours on the bridge; as government efforts to restore the situation remain abortive. Pic by Olawale Amoo

LASG targets issuance of 7,000 building permits before year end …says exercise to check building collapse JOSHUA BASSEY

agos State government says it targets the issuance of over 7,000 building approval plans to homeowners before the end of 2018. Olufunmilayo Osifuye, the general manager of the Lagos State Physical Planning Permit Authority (LASPPPA) stated this at a sensitisation of the public in Ebute-Meta and Oyingbo areas of the state. According to Osifuye, about 6,000 permits had been issued from the beginning of the year till date with additional 1,000 expected to be issued before the end of 2018. He said that the sensitisation was to intimate home owners/developers whose property are not covered by a planning permit to regularise their property with the agency. He said LASPPPA, in con-

junction with the Lagos State Building Control Agency (LASBCA), was embarking on the joint post construction audit of all existing structures in the state. Osifuye noted that the audit exercise would ascertain the structural stability and legitimacy of all existing buildings in the state. He added that the essence of the exercise was to matchup structural stability and legitimacy of building with necessary infrastructure development. This, according to him, would help to achieve a sustainable and well-planned environment toward attainment of a zero per cent tolerance for building collapse in the state. He disclosed that a total of 150 buildings without an approval plan were identified during the exercise and served planning permit and postconstruction notices. “It is not until a building

collapses before provision will be made for remedies, preventive measures and solutions. “The rate of building collapse has reduced to a great extent, but the agency will not relent until a zero per cent building collapse is achieved in Lagos State,’’ the general manager said. He appreciated the efforts of many residents who heeded to the call by identifying with the agency to regularise their buildings. Osifuye said that the audit/ sensitisation had covered the Ikeja, Opebi-Allen, Yaba, Ojodu-Berger areas of Lagos metropolis. “We appreciate the efforts of some homeowners who have completed or started processing the building approval plan of their structures. “However, many have turned deaf ears to the call. After the audit and sensitisation, LASPPPA will start com-

plete sealing of the identified buildings. “Lagos residents should not see us as deterrent to their state of living. We are not trying to make life unbearable for them. “The motive of the whole exercise is to ensure a conducive and well-planned livable environment for all,’’ he said. Osifuye said that the building permit/building plan approval certification, not only added value to the property, but also enhanced proper planning of the environment to save lives. He advised prospective homeowners and landlords to ensure they obtained building approval plan before starting their construction. Osifuye observed that flooding was an aftermath of constructing buildings without adherence to an approval plan, which allows for erection of buildings along waterways.

Anambra, Enugu, Abia worst hit by gully erosion in S/East …as group cautions against over reliance on land

group, Nigeria Erosion and Watershed Management Project (NEWMAP) has identified Anambra, Enugu and Abia State as worst hit by gully erosion in the South-East zone, emphasising the need to minimise reliance on land as part of measures to check the menace in the region. Izuchukwu Onwughara, the project coordinator of NEWMAP, speaking in Umuahia, the Abia State capital, on the effect of gully erosion in the region, said that the phenomenon has continued to wreak havoc on many communities with the attendant negative

implication on the socio-economic life of the people. “The South-East is the erosion headquarters of the entire globe,” he said, adding that Anambra was the worst hit, followed by Enugu and Abia states. Onwughara attributed the problem of gullies in the area to the high population density. According to him, the ratio of persons that live within one square kilometer in Nigeria is highest in the South-East. “The soil is very weak and there is high demand on land. Unfortunately, while the population is increasing, land is not increasing.

“It makes the area highly susceptible to soil erosion unlike other areas such as the North that is face with wind erosion,” he said. Omwughara said that there were very simple measures that people could adopt to control the menace. The coordinator said that the problem usually started as “ordinary sheet erosion (tiny erosion signs) that was not attended to. “People should learn the culture of using sand bags, coconutshaft,plantingoftreesand restrictions on indiscriminate felling of trees to control erosion in our communities,” he said.

He said that NEWMAP had embarked on remediation in critical areas in Abia including Umuda Isingwu, UmuaguIbeku, Amuzukwu-Ibeku in Umuahia North council area as well as Umuoghele and Umuezukwu Nsulu in Isialangwa North council area. Onwughara said that the agency had been given approval to do serious flood emergency work at Uratta in Aba, the economic hub of the state. He, however, commended Okezie Ikpeazu, Abia State governor, for releasing N350 million as counterpart fund for the NEWMAP projects in the state.

14 BUSINESS DAY Policy

Investments

Market

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Insight

Friday 14 September 2018

Influencers

INVESTMENTS

Are China’s energy investments in Africa green enough?

n the past year, Egypt signed contracts to build the world’s largest coal-fired power plant and broke ground on the world’s largest solar farm – both with the help of Chinese banks and contractors. These mega projects highlight a growing gap between China’s vision of South-South climate cooperation, which prioritises clean energy projects, and its actual investments across the African continent, which still include coal and hydropower projects that pose serious environmental risks. Setting the energy and climate roadmap Leaders from 53 African nations are gathered in Beijing from September 3-4 for the triennial Forum on China Africa Cooperation (FOCAC). Established in 2000, FOCAC is an arena for China and Africa to deepen their political and economic ties, which are increasingly important given that China has become Africa’s third largest investor. At past summits, Chinese presidents committed major loans to African nations – US$5 billion in 2006, US$10 billion in 2009, US$20 billion in 2012, tripling to US$60 billion in more broadly defined

“investment” in 2015. A portion of these loans has gone toward energy projects. Boston University data shows that energy lending to Africa by the Export-Import Bank of China, and China Development Bank, which are the main financiers of the country’s overseas investment, went primarily to hydropower, oil, and coal from 2000-2016. Although China is still funding fossil fuel projects and hydropower (the latter is low-carbon compared to natural gas or coal-fired power but it produces more greenhouse gases than wind and solar), it has signalled at previous FOCAC summits the need to mitigate climate change in its investment decisions. At the 2009 FOCAC, Premier Wen Jiabao proposed an initiative to build 100 clean-energy projects in Africa. China’s US$3.1 billion South-South Climate Cooperation Fund was referenced in the 2015 FOCAC action plan as a way to bolster climate action in Africa. Nonetheless, some experts think that China is not taking strong enough action. In a recent podcast interview by The China Africa Project, experts anticipated green issues would be side-lined at this year’s conference. Civil society leaders in Africa have called for change:

Source: Oil Change International’s Shift the Subsidies Database

Makoma Lekalakala, director of the non-governmental organisation Earthlife Africa in Johannesburg, said “We hope that at this year’s FOCAC there will be a greater focus on Chinese investment in clean energy in Africa.” Fossil finance China is in a position to shape the direction of Africa’s energy development. According to a report by Oil Change International, China was the largest provider of public finance for energy development in Africa from 2014 to 2016. Most of this went to upstream oil and gas (72%), followed by coal-fired power and large hydropower projects. Around a third of African coal-fired power plants built in the decade up to 2016 were constructed by Chinese contractors, the majority with Chinese funding, according to a 2016 report by the International Energy Agency (IEA). Coalswarm, a Wiki encyclopaedia that tracks coal projects globally, shows that China has been involved in the finance or

construction of 15,700 megawatts of coal capacity in Africa – around 10% of the continent’s total power capacity (168,000 megawatts in 2016). These coal power projects have typically been located in countries with domestic coal resources: almost three-quarters of Chinese-built coal-fired capacity is in Southern Africa where coal reserves are available, the IEA report says. However, new projects have been proposed in countries where coal is not a mainstay of power generation, including Kenya, Ghana, and Egypt. The latter’s 6,600-megawatt Hamarawein mega project, which will be built by Chinese contractors, represents a further backslide toward coal following Egypt’s reversal on a ban on imports for coal power in 2015. Nascent clean energy development China’s involvement in Africa’s renewable energy sector (excluding hydropower) has been limited. According to IEA, from 2006-2016 only 7%

Shifting to green The South-South Climate Co-

operation Fund, launched in 2015, established a vision of China as an emissary of clean energy in other developing countries. One of the fund’s goals is to support 100 climate mitigation and adaptation projects. The fund has had a slow start. However, Wang Binbin, a researcher at Peking University, argues it is gathering pace and will be helped by the creation in April of China’s first aid agency, which will assume responsibility for the fund. Directing both climate aid and loans toward renewable energy would have major implications for Africa’s energy development. For instance, Kenya aims to be a clean energy hub by harnessing its rich renewable energy resources, but it is also planning to build its first coal-fired power plant with the help of Chinese financing. A change in China’s investment priorities could alter Kenya’s calculus about coal as other international lenders are increasingly unwilling to support such projects. Egypt’s Benban solar farm, which is part-financed by the Asian Infrastructure Investment Bank – China’s flagship multilateral bank, could help drive a shift towards renewable projects, although the bank has been criticised for not sufficiently delivering on its motto to be “green, lean, and clean.” The significant stock of fossil energy projects China has built in Africa means that it will take much more than a few high-level pledges and pilot projects. With climate change visibly impacting Africa from Cape Town’s severe drought to desertification in Mali, FOCAC presents an opportunity for leaders to align energy development with the reality of climate change.

energy programmes, particularly automotive biofuels production nationwide. “The aspiration for the exploitation of renewable fuel resources in Nigeria is to implement our nationally determined contributions to the Paris Agreement; part of which requires the blending of 10% by volume of fuelethanol in gasoline and 20% by volume of biodiesel in automotive gas oil (diesel) for use in the transportation sector,” he said. According to him, for a country like Nigeria with a daily consumption of over 65 million litres of automo-

tive fuels, it was easy to see that enormous volumes of fuel-ethanol and biodiesel would be needed to meet this obligation. Baru, stated that meeting and sustaining the target requires strategic investment in more than 10 large biofuels complexes across the country. He also noted that the execution of the two MoUs would help develop the ﬁrst biofuel production complex in Nigeria, and that before the end of the year, the development of not less than three other complexes would commence in the country.

of Chinese-built power generation in Sub-Saharan Africa were non-hydropower renewable plants. These include solar projects in Comoros, Kenya, DRC, and Senegal, and wind projects in Djibouti and Kenya. However, a new wave of projects is on the horizon. A 2018 report from the Institute for Energy Economics and Financial Analysis (IEEFA) cited an additional 200-megawatt solar farm to be built by PowerChina in Bui, Ghana; and the 244.5 megawatt De Aar wind farm being built by China’s Longyuan Power Group Corporation near Cape Town, South Africa; along with the Benban solar farm in Egypt. Chinese solar and wind companies are also serving as equipment manufacturers and suppliers. In 2014, Jinko Solar built a solar PV factory in South Africa, and GCL just announced it is following suit in Egypt, increasing the companies’ access to the African market.

MARKET

NNPC petrol stations to run on solar ISAAC ANYAOGU

igeria’s state oil company – the Nigerian National Petroleum Corporation (NNPC), has said all its retail outlets which include petrol stations will soon be powered by solar energy. It said plans were underway to ensure this happened, even as it signed a Memorandum of Understanding (MoU) in China with a Nigerian-Chinese consortia to develop biofuel production facility in Nigeria. Maikanti Baru, NNPC’s

group managing director said in a statement that as part of the corporation’s expanded programme on renewable energy, it planned to power all its retail outlets by solar photovoltaic (PV) facilities. Baru, also explained the corporation will develop grid and off-grid solar power systems as business models to contribute to the clean fuels initiative of Nigeria. NNPC had already set up a number of pacts to build biofuel production outlets in states such as Ondo and Benue, it also signed two separate MoUs on biofuels project development at the

ongoing Forum for ChinaAfrica Cooperation (FOCAC) Summit in Beijing China. It explained the pacts were signed between the NNPC and the Obax-Complant Consortium, and the

NNPC and the CapegateNanning Consortium. on the other hand. Baru, said the MoUs signing was aimed at implementing Nigeria’s desire on clean, alternative and renewable

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

Graphics: Joel Samson

Friday 14 September 2018

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COMPANIES & MARKETS

BUSINESS DAY

Bread makers call for review of VAT on bread, wheat grains

Pg. 16

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

Notore shuts down Ammonia plant for maintenance MICHEAL ANI

otore Chemical Industries Plc says its Ammonia plant has been shut down for maintenance purposes, commencing from September 14th in order to build mechanical reliability in the plant that will see the fertilizer firm improve production. In a document filled on the Nigerian stock exchange and signed by the Company’s group chief Legal officer/ secretary, the fertilizer maker said the maintenance exercise is expected to last for 15-20 days. Notore also said it has appointed Ohis Ohiwerei as Group Deputy Managing Director and Chief financial

Officer effective September 17 2018. He will also serve as an executive Director on the Board, Notore says in statement published on Nigerian Stock Exchange website. Ohiwerei will replace Femi Agbaje as the Chief Financial Officer of the firm and in the newly created position of Deputy MD will focus on day-to-day operational and financial management as the latter is expected to retire as the Group CFO with effect from September 30 2018. The fertilizer company also appointed into its board Ivana Osagie who was formerly MD/ CEO of Notore seeds limited, subsidiary of Notore as Director of Corporate Development and strategic projects. Bode Agagu and Murtala Mohammed was also ap-

pointed into the role Group Technical officer and General Manager of Notore seeds respectively, Notore said. Notore in August this year made a debut stock market listing by way of introduction that added about N100 billion to the market cap of the Nigerian stock exchange. The fertilizer company listed by introduction 1.61 billion ordinary shares at N62.50 per share, and with a free float of 16 percent on the mainboard of the NSE under agro-allied & chemicals subsector. The firm’s share price has remained flat at N62.50 as at the close of trading on Wednesday 12th September; over one month after the firm did its listing on the Lagos bourse. Notore chemicals Industries Plc starts a new financial

year November of every year. Thus why other firms in the industry might be in their 2nd quarter or half year of operation, Notore’s book will be for a nine month or Q3 period. Notore chemicals Industries Plc starts a new financial year November of every year. Thus why other firms in the industry might be in their 2nd quarter or half year of operation, Notore’s book will be for a nine month or Q3 period. The financial performance of Notore Chemical appears disappointing as the company financial results for the nine months ended in June 2018 shows dwindling revenue and deeper losses. The company reported a drop in revenue from N25.8 billion in June 2017 to N20.53 billion in June this

year. Loss after tax increased by 5.4 percent from N3.7 billion in June 2017 to N3.9 billion in June 2018 which contributed to a 7.7 percent drop in total equity from N50.6 billion to N46.7 billion during the same period. Along with a drop in revenue, cost of sales also declined by around 33.3 percent from N18.6 billion in June 2017 to N12.4 billion June this year. The decline in cost of sales was largely attributable to the 16 percent drop in Staff cost which fell by around N300 million and a huge deduction of N3.9 billion from cost of sales for exceptional items. According to Notore, the exceptional item is in respect of Export Expansion Grant confirmed receivable from the

Federal Government of Nigeria on the cumulative export sales made by the Company over the years 2011 -2016. These claims have been verified by the Federal Government and are awaiting settlement via Promissory Notes under the government Promissory Note Payment Programme. The N6.2 billion drop in cost of sales helped reduce cost to income ratio from 72 percent last year to just 60.4 percent this year. Although gross profit expanded this year to N8.1 billion from N7.1 billion last year, operating profit still declined this year to N3.75 billion from N4.06 billion last year. The drop in operating profit was caused by a significant jump of 28 percent in administrative expenses from N3.2 billion to N4.1 billion.

BUSINESS DAY

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Friday 14 September 2018

COMPANIES & MARKETS Bread makers call for review of VAT on bread, wheat grains IFEOMA OKEKE

he Premium Breadmakers Association of Nigeria (PBAN), an association comprising owners, managing directors and partners of premium bakeries in Nigeria have called on the federal government to review the Value Added Tax (VAT) on bread and 15 percent levy on wheat grain imports, which have had an adverse effect on their operations. BusinessDay’s checks show that on July 20, 2012, the Federal Government introduced a 15-percent levy on wheat grain imports resulting in an increase of the effective duty from five percent to 20 percent. The levy is said to be meant for the development of wheat cultivation in Nigeria, but about six years after the introduction of the levy, the effect on wheat cultivation in Nigeria is yet to be felt. PBAN are therefore calling on the Federal Government to review downwards the 15 percent levy on wheat grain imports to help drive down the price of flour which constitute about 75 percent of baking

ingredient. Speaking to journalists in Lagos, Tosan Jemide, President, PBAN explained that VAT act exempts certain goods including ‘basic food items’ from VAT. However, producers of premium bread over time have been made to pay VAT, penalised or threatened for not paying VAT on bread. We find that “There is an ambiguity in the tax law and the clarification of the FIRS Act made by FIRS. We therefore demand that the federal government and FIRS look into this as a matter of urgency in order to clarify this ambiguity,” Jemide said. He lamented that the challenges bread makers face as a result of incessant increases in the prices of baking ingredients has rendered most premium bakeries comatose from operating at a loss; capital injection through loans and equity investments have been pumped into a lot of these businesses and repayments are no longer possible. He further explained that this has a ripple effect on the economy as a whole as it serves as a disincentive for investment. “Between 2015 and now

the price of flour which is our major ingredient has increased from N6,500 naira per 50kg bag to N11,500 naira per bag as at today, with the possibility of further price increases. “In the last 3 years, the prices of flour, sugar and other baking ingredients have quintupled without a corresponding increase in prices of premium bread by PBAN members. As an Association, it is either we do something about the astronomic increases in prices of baking ingredients or we burst. “Most of us got loans with double digit interest rates from financial institutions to fund our bakery projects and are finding it extremely difficult to meet our loan repayment obligations,” he disclosed. He stressed that another major challenge is the unbearable cost of power as bakeries suffer seriously due to epileptic power supply and the high cost of alternative energy have made it a no go area for bread makers. “Almost all our baking machines are powered by diesel generators. The cost of diesel has hit the roof top and is almost out of our reach. The consequence of high cost of

L-R: Eddie Efekoha, immediate past chairman, Nigerian Insurers Association (NIA); Tope Smart, chairman, NIA, and Godwin Wiggle, past chairman, NIA, during the investiture of Mr. Tope Smart as the Chairman, NIA in Lagos.

diesel has led to the closure of some premium bakeries,” Jemide said. He hinted that given the current situation, most premium bakeries may be forced to embark on a price increase

Andela hires Omowale David-Ashiru as country director for Nigeria

ndela, a company that builds high-performing engineering teams by investing in Africa’s most talented software developers, has appointed Omowale David-Ashiru as its Nigeria Country Director. As Countr y Director, Omowale will be responsible for leading Andela Nigeria, a rapidly growing team of 500+ people, and ensuring that the organization continues to advance its objectives of developing Africa’s future technology leaders. Before joining Andela, Omowale’s professional ex-

perience spanned almost two decades in management consulting and entrepreneurship. During her eleven years at Accenture, she grew to become a seasoned Management Consultant and Certified Project Manager. Omowale then transitioned into entrepreneurship, launching a fashion retail company, which she managed for eight years. Her experience managing complex projects for global technology and financial services companies, combined with her entrepreneurial mindset, makes Omowale the right

leader for Andela Nigeria. “Everything I’ve done before now feels like a preparation for this role,” said Omowale, “and I’m excited to join this wonderful team of highly motivated individuals who are investing their skills and effort into advancing opportunity and potential in Nigeria and the continent at large.” Seni Sulyman, Andela’s Vice President of Global Operations and previous Country Director, Nigeria, shared his excitement about Nigeria’s new Country Director: “Omowale has the right mix of relevant experienc-

es in leadership, management and entrepreneurship to lead the next phase of Andela Nigeria’s growth,” he said, “and I’m particularly excited because she shares the same values and aspirations as Andelans.” He continued, “Andela Nigeria, our first office in Africa, is rapidly growing, and I have complete confidence in Omowale’s ability to lead the team as we continue to scale.” Omowale obtained a First Class B.Sc. in Economics from the University of Ibadan. In her own words, she has a deep passion for people, is an avid reader and loves adventure.

AFDB Board approves policy on Non-Sovereign Operations

he Board of Directors of the African Development Bank Group has approved the Bank’s Policy on Non-sovereign Operations (NSO). The document provides the framework within which the Bank through its private sector lending window may provide financing or investment without sovereign guarantees to private and public entities that meet specific eligibility requirements on non-concessional terms. Non-sovereign Operations (NSOs) refers to financing and investment operations that are not guaranteed by a State, covering mostly private sector transactions. They also cover non-sovereign guaranteed fi-

nancing of eligible public sector enterprises, as well as financing of regional development finance institutions. The approval of the Policy comes at a critical moment when the Bank is seeking to accelerate inclusive and sustainable economic growth, and crowd in more private sector funding for strong and inclusive growth to drive economic transformation and sustainable development in its Regional Member Countries (RMCs). The NSO Policy will complement the Bank’s overarching 2013 Private Sector Development policy framework, notably, by defining what the Bank will do in the area of

non-sovereign lending. Within this context, the objective of the Bank’s non-sovereign operations is to help accelerate the continent’s transformation through various financial support mechanisms and products including loans, lines of credit, guarantees, blended finance, equity investments and trade finance. This would enable the Bank to contribute to the sustainable economic growth and inclusive social development of its RMCs individually and jointly, in fulfilment of the Bank’s mandate. More specifically, the Bank’s engagement in its selected nonsovereign operations will aim to maximise the catalytic impact of its limited resources, while

seeking to promote inclusive growth and the gradual transition to ‘green growth’ in its RMCs. It will also help scale up financing in the Bank’s High 5 priority areas of intervention. Under this NSO Policy, the Bank would provide financing to non-sovereign operations subject to four conditions: (i) the borrower is a private enterprise or an eligible public sector enterprise; (ii) the operations are financially sound; (iii) the operations should result in satisfactory development outcomes, including supporting or creating opportunities for private sector development; and (iv) the Bank brings additionally, which could be either financial or non-financial.

which will further make bread (a staple food) unaffordable to the common man. “As an association, we are totally committed to ensuring that Nigerians have healthy, quality, affordable and un-

harmful bread on their table. It is in light of this that we appeal to the Federal government to look into the issues that currently threaten the existence of the premium bakery industry in Nigeria,” he added.

EY discusses new Transfer Pricing regulations, implications for taxpayers

rnst & Young Nigeria (EY) is taking up the challenge to sensitize industry stakeholders, clients and non-clients, regarding the new Transfer Pricing regulations and the key changes brought about by the development. The move is on the back of the recently released income tax (Transfer Pricing) regulations, 2018 by the Federal Inland Revenue Service (FIRS). The new regulations are the first to be made to the Transfer Pricing regulations since its introduction in August 2012.The new Regulations replaces the Income Tax (Transfer Pricing) Regulations, 2012 (old Regulations) and shall apply to financial years beginning after 12 March 2018. Speaking on the primary objective, EY head of Tax Services, Akinbiyi Abudu, notes that the ‘Breakfast knowledge sharing session’ is aimed at addressing all the enquiries pertaining to the 2018 Transfer Pricing regulations and the implications for taxpayers. “The session, which will be held on September 19, 2018, at the EY Nigeria Office, UBA House, Marina, is being organized as part

of EY’s commitment in supporting multinational enterprises to better understand their compliance obligations in Nigeria and avoid penalties for non-compliance”. The keynote speaker is Matthew Gbonjubola, who is the head of International Tax Department, FIRS. According to Akinbiyi Abudu, the introduction of the new Regulations represents a significant step taken by the FIRS towards ensuring increased compliance and implementation of the arm’s length principle in a manner consistent with the Organization for Economic Co-operation and Development TP Guidelines for Multinational Enterprises and Tax Administrations and the United Nations Practical Manual on Transfer Pricing for Developing Countries, both updated in 2017. “The new Regulations essentially reflect some of the main transfer pricing (TP) related changes introduced to the 2017 editions of the OECD Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations (OECD TPG) and United Nations Practical Manual on Transfer Pricing for Developing Countries (UN TP Manual)”.

Friday 14 September 2018

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COMPANIES & MARKETS

Business Event

BUSINESS DAY

Shareholders in last minute transaction as Mutual Benefits Rights issue closes today Modestus Anaesoronye

hareholders of Mutual Benefits Assurance Plc that were yet to take up their rights in the firm’s ongoing N2 billion rights issue have till the end of today to conclude transactions. Affected shareholders will have to give express instruction to their stock brokers to pay for their rights before the close of business today. Whether there will be extension in the offer period which has ran from August 6 to September 14, that could not be confirmed as at press time. But analysts at the Nigerian Stock Exchange(NSE) who commented on the offer said, “though the market is at its very low at this time, taking insurance stocks will not be a bad deal as there are strong prospects for growth in the insurance industry”. Underwriting firm, Mutual Benefits Assurance Plc is in the market to raise N2billion through right issue in pursuance of its five years strategic plan. The firm is offering to its existing shareholders 4,000,000,000 ordinary shares of 50 kobo each at 50kobo per share on the basis of one new ordinary shares for every one held. Acceptance List for the Rights Issue opens on Mon-

day, 6, August 2018 and will close Friday 14, September 2018. The Rights being offered are tradable on the floor of The Nigerian Stock Exchange for the duration of the Issue. The insurance company, a general business and life insurer, has an authorised share capital of N10billion with a paid up capital of N4 billion. The company provides insurance coverage across several sectors including aviation, oil and gas, marine cargo and hull business and other non-life insurance underwriting, including motor, fire and special perils, goods-in-transit, engineering insurance, retail and micro insurance, amongst others. Speaking at the completion board meeting held today, the chairman of the company Akin Ogunbiyi said that the proceeds of the offer will be used to fund the Company’s recapitalization and growth plan, provision of additional working capital and financing the expansion of IT facilities to support the Company’s enlarged operations. On plans for 2018, he said “We will consolidate on the modest achievements recorded in 2017 by commencing our IT transformation blueprint in 2018.” This he said will help to eliminate slack time in its processing and ultimately enable them to focus more on customer delights and satisfaction.

He further said “Our strategic aspiration is to become the number one insurance company in Nigeria in terms of growth and profitability.” “Despite the tough business environment we have been able to bounce back to profitability and delight our shareholders. Dividend of N0.02kobo per share will be paid to our esteemed shareholders who have stood by us over the years” He assured that going forward dividend payment will be sustained, while urging shareholders to take up the right issue. The Company’s financial performance for the year ended 31, December 2017, shows that top line growth was combined with prudent management of expenses, which resulted in a 224.9 percent growth in profit before tax to N1.34 billion in 2017 from a loss position of N1.1billion in 2016. Group’s total assets grew by 12.1 percent from N51.5billion in 2016 to N57.7billion in 2017. Gross premium written also appreciated by 16 percent from N12.14 billion in 2016 to N14.03 billion in the review year, while underwriting income also grew by 10percent to N11.78 billion in 2017 versus the 2016 figure of N10.70 billion. Net claims paid by the Group in 2017 stood at N5.15 billion from N3.35 billion in 2016, resulting in a 54 percent increase from the previous

L-R: Chikodi Onyeri, volunteer coordinator, Youth alive foundation; Udy Okon, executive director, Youth alive foundation; Agboola Dabiri, commissioner, of youth and social development, Lagos State; Derele Edun, on air personality, and Peace Eno, monitoring and evaluation, Youth alive foundation, during the Launching of your excellency game app by Youth alive foundation, in Lagos.

L-R: Mai Atafo, celebrity fashion designer; Yahaya Taofiq, masters of style 2018 winner, and Charles Nnochiri, head of marketing, PZ Cussons Consumer, at the official Dare 2 Dream Season 5 prize presentation at Terra Kulture, Victoria Island, Lagos.

NSE reclassifies E-Tranzact as Low-Priced Stock CYNTHIA IKWUETOGHU

he Management of Nigeria Stock Exchange (NSE) on Tuesday announced the reclassification of E-Tranzact International Plc from Medium priced to Low priced stock. This decision taken by the NSE was in compliance with Rule 15.29: Pricing Methodology, Rulebook of the Exchange on dealing members. Justifying the move, a statement by the NSE recalled that “for upward or downward movements in price to occur on any Low-Priced Stock that is priced at below N5 and listed on the NSE, stockbrokers are required

to trade a minimum volume of 100,000 units of shares or above. These Low-Priced Stocks are securities that have traded below N5 per share in four out of the six months period.” E-Tranzact fell below N5 mark to N4.75 on February 15th and has been trading below N5 in the last six months with its share price at N3.95 at the close of the market on August 31st, 2018. “E-Tranzact dropped below the N5 mark on 15 February 2018 and traded below N5 up till close of business on 31 August 2018 and will be reclassified from Medium Priced Stock to Low Priced Stock effective September 12, 2018.” said in a statement signed by Joseph Kadiri , Me-

dia Officer at NSE. Low-priced stock also known as penny stock generally refers to a stock issued by a company that is valued and traded at less than N5 per share in four out of the last six month period. The company’s is currently trading at a book value of 5.37. This means that the market price per share is 5 times the book value per share. This ratio (price-to-book) reflects the value that market participants attach to a company’s equity relative to its book value of equity. The management of the company was removed earlier this year, which is May, by CBN. The company last month appointed four non-executive directors on its Board.

L-R: Tois Nwaru, foodstuff seller; Regina Madisife, akara seller, and Yusuf Hashim, tomato seller, all are beneficiaries of TraderMoni loan, during the activation of TraderMoni in Nyanya market, Abuja

Lifemate Furniture offer customers variety of choices

ur company, Lifemate Fu r n i tu re Nigeria Limited is always looking for avenues to deliver on our commitment to customers on key performance indicator of quality, durability, class and aesthetics. You will recall that most of our recent promise is to make our products accessible and affordable to our customers and by extension widen our

customer portfolio. Most importantly, we are committed to delivering on our pay off, “To Make Life Better”, this has always drive our process and tactics in relating with customers. In this month of September, the next in line in our promo series is “Sofa Swap”. The Sofa Swap or Sofa Exchange Promo is targeted at first 100 customers interested

in exchanging their old sofas for our latest sofa designs. “The Sofa Swap promo is expected to be an annual event in all our showrooms, this is the maiden edition. It is our expectation to make future editions grand and bigger by accommodating more customers than these initial 100 beneficiaries of the sofa swap. In addition, new ideas are also being explored in this direction.

L-R: Dale Thomas, director, Temenos Learning Community; Olufemi Muraino, executive director, Inlaks; Ivan van Bladel, partner manager, Middle East & Africa, Temenos, and Jean-Paul Mergeai, managing director, Middle-East & Africa, Temenos, when Inlaks was recognised as Temenos Learning Community Partner of the Year 2018, in Dubai.

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FINTECH News

Products Review

Technology Review

Personality Review

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Company Review

TECHNOLOGY REVIEW

Nigerian investors tease as foreigners hunt big games in tech space Stories by FRANK ELEANYA

n Fr iday, 7th September it was the turn of Paga, a mobile money company founded by Tayo Oviosu, to announce the closure of a $10 million series B2 investment led by Global Innovation Fund (GIF) with participation from Goodwell (managed by Alitheia Capital), Adlevo Capital, Omidyar Network and Unreasonable Capital. The new round brings the total investment raised by Paga since 2009 to $35 million and will help the company accelerate its growth in Nigeria as well as scale to countries like Ethiopia, Mexico and the Philippines. Paga becomes the fourth tech company based in Nigeria or founded by a Nigerian that has successfully secured funding above $1 million between August and September 2018. Mines and Paystack - both financial technology (Fintech) companies - got $13 million and $8 million respectively in August while Tizeti, a public internet provider, received $3 million in September. Earlier in the year, Piggybank, Cellulant, Lydia and

Tayo Oviosu, founder of Paga with Rakesh Apte of Global Innovation Fund (GIF) at Tech Crunch Disrupt. Rakesh led the funding deal for GIF.

Kobo360 secured $1.1 million, $47.5 million, $6.9 million and $1.2 million funding respectively. According to a message on its website, the London-based GIF is a hybrid investment fund that supports the piloting, rigorous testing, and scaling of innovations targeted at improving the lives of the poorest people in developing countries. It is also the first time GIF is leading an investment in a

Nigerian startup. As positive as Paga’s success is for the entire tech ecosystem in Nigeria, it also underlines a growing trend in which foreign based venture capital firms are dictating the pace in the space with big ticket financing while Nigerian investors seem comfortable providing small support. Nearly 100 per cent of the big ticket funding rounds (above $1 million) has been

led by a foreign venture capital firm or organisation. Where Nigerian investors are mentioned, they only come in as participators. Paga is just one in many of such rounds. Techpoint’s Nigerian Startup Funding Report found that foreign investment accounted for 98 per cent of the total funds raised by Nigerian internet startups in the second quarter of 2018. The funding round that

took Paystack’s total investment to data to $10 million was led by Visa (US). Companies and individuals that participated include Tencent (China), Y Combinator (US), Tom Stafford (Hong Kong), Gbenga Oyebode (Nigeria), Dale Mathias (US). Cellulant whose $47.5 million Series C round made it the highest of any African startup in 2018, saw the most investment coming from The Rise Fund an impact investment vehicle run by US-based TPG Growth. There were participation from Endeavor Catalyst (US), Satya Capital (US), Velocity Capital (Netherlands), and Progression Africa (Mauritius). Lydia’s $6.9 million Series A funding was led by Omidya Network an investment company based in Silicon Valley, California, USA. Kobo360’s $1.2 million round was led by Western Technology Investment a venture capital firm based in California, USA. Nigerian-based Verod Capital Management provided funding support. Piggybank, an investment startup, is the notable exception of the 2018 class of startups. Its $1.1 million in seed funding was led by LeadPath Nigeria. Funding participation came from Village Capital (US)

and Ventures Capital (Netherlands). Inasmuch as innovation is the fulcrum of the tech industry, funding dictates the direction and the lifespan of the businesses in the ecosystem. Going by the present situation, the survival of many big tech startups in Nigeria depends almost exclusively on foreign investment. Nigerian investors, for some reason do not believe there is big money to be made on big startups bets. Tayo Oviosu said as much in an article ‘Investing in Nigerian Startups’. As a startup operating in a difficult environment like Nigeria, he noted that “Getting $50K-$200K to get your business off the ground could literarily be life changing. Early days of Paga, a friend of mine invested $5k and I literally cried.” Nigerian investors have actually increased their investment in tech startups as many reports have shown, however, most of them have been in grants. If the ecosystem must live up to its potential it will take a lot more than gifts to make that happen. “Domestic investment, exits and returns are a crucial part of growing ecosystems,” Victor Asemota, founder of SwiftaCorp wrote in an article.

TECHNOLOGY REVIEW

SystemSpecs, Access Bank partner to launch Remita Payroll in Ghana

ystemSpecs has launched its Remita Payroll in Ghana, putting it in direct sights with regional payroll competitions. While in Ghana, Remita will be expected to replicate the success it recorded in its birth-country Nigeria. Remita which powers the Treasury Single Account of the Nigerian government as well as other payment services saw volume

of transaction grow to $30 billion in 2016. As a payroll service, SystemSpecs said it has partnered with Access Bank; Ghana with the aim of enabling businesses, non-governmental organisations (NGOs), small businesses and organisations of any size to effortlessly manage their monthly salary processing. Remita Payroll also removes the need for organisations to process payroll on

multiple platforms. In essence, businesses do not need to process payroll from one system and then take the processed data to another platform to transfer salaries, or send salary schedules to various banks or statutory agencies. Organisations can also significantly improve operational efficiency and effectiveness in employee management. “As technology partners, we are convinced that this part-

nership provides Access Bank’s customers and non-customers with new and exciting capability and flexibility for the management of monthly payroll processing and payment at a low cost,” Demola Igbalajobi, divisional head, International Business, SystemSpecs said during the launch of the service. “Importantly, the relationship complements our Africa roll-out strategy which is based on collaboration and

partnership with reputable institutions that also have a pan-Africa outlook.” The Remita Payroll system provides employees with realtime access to their current and historical pay slips, tax slips, Social Security and National Insurance Trust (SSNIT) contribution details, and also capabilities for employees to make leave application or complete performance appraisal online and on their

mobile devices. “Our objective is to always give our customers a banking experience backed by needbased solutions that are powered by robust technology which this partnership with SystemSpecs represents as it brings us closer to achieving our strategic objective of becoming Africa’s gateway to the world,” Ifeanyi Njoku, managing director, Access Bank Ghana said.

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How cholera outbreak cases thrive in Nigeria

Despite the long experience with cholera in Nigeria, an understanding of the mechanism aiding its persistence in outbreak situation is still lacking. OBOKOH ANTHONIA writes on targeted approaches to control the infection.

he burden of cholera outbreaks remains high in many African countries with at least twelve countries reporting active transmission in sub-Saharan Africa, Nigeria inclusive. In Nigeria, since the first appearance of epidemic cholera in 1972, intermittent outbreaks have continued to occur. Despite the long experience with cholera in Nigeria, an understanding of the epidemiology of the disease aiding its persistence in outbreak situation is still lacking. “Nigeria is currently the most impacted country with some 90 per cent of cholera cases,” says the United Nations Children’s Fund (UNICEF). Cholera is a serious bacterial infection that causes severe watery diarrhoea and stomach cramps which can lead to dehydration and even death. Studies revealed that the immune-pathogenesis of the pathogens would promote understanding of the infectious disease development and improve prospects for effective diagnostics, drugs, treatment and vaccines. According to the latest update of situation report by the agency, since the beginning of 2018, a total of 14,762 suspected Cholera cases with 389 laboratory confirmed and 258 deaths have been reported from twenty two states and 135 Local Government areas compared with 1198 suspected cases and 32 deaths from 47 local government areas in twenty-three states during the same period in 2017. The current outbreak has already reached a number of major states following weekly epidemiological report week 34(August 26, 2018), identifies the highest burden from Zamfara with about 222 cases (two hundred and twenty- two), Katsina (one hundred and twenty two), Kano -169(one hundred and sixty nine), Borno- 38 (thirty eight), Kaduna- 20 (twenty) and Bauchi-3(three) making it five states. “A total of 452 suspected cases have been reported with ten laboratory confirmed cases and 22 deaths were reported from 34 Local Government areas in eleven states,” says the report.

Recently, Zambia, Uganda, Malawi, South Sudan and Nigeria benefited from the Africa largest cholera vaccination drive in history with more than two million people across the continent set to receive oral cholera vaccine (OCV) funded by Gavi, the Vaccine Alliance. Tedros Adhanom Ghebreyesus, World Health Organisation director-general said, WHO and our partners are saving lives every day by improving access to clean water and sanitation, establishing treatment centres, delivering supplies, distributing public health guidance, training health workers, and working with communities on prevention. “Oral cholera vaccines are a key weapon in our fight against cholera, but there are many other things we need to do to keep people safe,” said Ghebreyesus. However, public health experts have harped on the need to check and invest heavily in tackling disease outbreaks, stressing that Nigeria must do more to improve the country’s infrastructure, logistics, commodities, technology, human resource and communication. Muntaqa Umar-Sadiq, chief executive officer, Private Sector Health Alliance of Nigeria (PHN), said Nigeria’s epidemic preparedness and response capacity highlight six priority gaps required to enhance detection, prevention and management of an outbreak. “Priority gaps include infrastructure, logistics, commodities, technology, human resource and communication. “With more outbreaks on the horizon, Nigeria can’t afford to repeat this cycle of uncertain priorities, wasted time and investments. We need strong and clear lead-

ership; effective deployment of new innovations,” he stressed. Meanwhile a review on Cholera epidemiology research in Nigeria provides the knowledge gaps of the infection with the hope that it will help to develop targeted approaches to controlling the infection. According to the research, about 75 per cent of people infected with Virus cholera do not develop any symptoms, although the bacteria are present in their faeces for 7-14 days after infection and are shed back into the environment, potentially infecting other people. “Among people who develop symptoms, 80 per cent have mild or moderate symptoms, while around 20 per cent develop acute watery diarrhoea with severe dehydration.” “In severe infections, more than one quart of water and salts is lost per hour and If dehydration is not treated, loss of water and salts can lead to kidney failure, shock, coma, and death,” research showed. The research further revealed that in people who survive, symptoms usually subside in 3 to 6 days, adding that most people can be free of the bacteria in two weeks and some; the bacteria remain in a few people indefinitely without causing symptoms. “Unsafe water sources and dirty environment contributed to the spread of the disease and yearly outbreaks in many states in Nigeria, says the agency while calling for better hygienic conditions,” Chikwe Ihekweazu, chief executive officer, NCDC said. According to Ihekweazu, Cholera cases are being treated at designated treatment centres in affected states. “We have ramped up

our risk communications campaign so that people are better aware of the risk factors and ways to prevent cholera outbreaks”. “We are also strengthening the disease surveillance and laboratory systems so that cases are reported early, detected in time and response measures initiated.” “States are encouraged to prevent cholera outbreaks by improving access to water, sanitation and hygiene (WaSH); this remains the best way to prevent cholera”, said Ihekweazu. Similarly, Haruna Mshelia, commissioner for health, Borno state recently activated the Emergency Operations Centre for coordination of partners’ response, he urged all partners, based on comparative capacities, to support the state ministry of health to establish and manage cholera treatment centres by intensify houseto-house case search, risk communication activities, improve water, sanitation and hygiene facilities as well as other interventions to ensure that the transmission is interrupted on record time. However, for Nigeria to response effectively, according to WHO, at the core of any response to outbreaks is how well the country’s health system is functioning on a regular basis, before the disease strikes. “A strong health system capable of providing effective primary care to its citizens will be much more resilient when an unexpected crisis hits. “Conversely, countries with weak health systems, which often also face a range of governance and poverty issues and multiple disease burdens, will struggle to provide basic health services. These challenges are worsened during severe disease outbreaks,” says the agency.

Friday 14 September 2018

FG appoints Adigwe as new director general of NIPRID ANTHONIA OBOKOH

he Federal Government has appointed Obi Peter Adigwe as the new director-general and chief executive officer of the National Institute for Pharmaceutical Research and Development (NIPRID), for a term of four years with effect from 10th August, 2018. The NIPRD was established under the Science and Technology Act of 1980 with the primary objective of developing drugs, biological products and pharmaceutical raw materials from indigenous resources. “It is my expectation that you will not only work to ensure that you drive the research for new pharmaceutical materials, but endeavour to improve on present achievements and leave your mark of progress on that institution,” states document FDS/179/TI/304 signed by Osagie Ehanire, the minister of State for health. Ehanire urged Adigwe to justify the confidence reposed in him by his appointment and work with all stakeholders for industrial peace and in support of the president’s change agenda. Prior to his appointment as DG NIPRD, Adigwe was executive secretary of the Pharmaceutical Manufacturers Group (PMGMAN), where he played a key role in the development and implementation of policy initiatives which made considerable impact on the Industry.

His achievements at the PMGMAN include the prioritisation of the Pharma Industry in the 2016 Fiscal Policy, and organisation of the landmark 2017 Pharma Expo. He also made significant contributions to the conceptualisation of the internationally renowned Medicines’ Security Concept. Adigwe, pioneer head of the Health Policy Research and Development (HPRD) Unit at the Nigerian National Assembly, where he formulated research and development strategies in Health Policy as well as developed innovative and contextual training, research and capacity building modules. He has a significant number of peer reviewed publications including the first K.A.P. study on Ebola in Nigeria, as well as a seminal paper on Rational Use of Medicines. While in the United Kingdom, he had also co-authored a write-up that influenced an epoch-making health policy reform in the British Parliament. Adigwe has undertaken many national assignments, headed, as well as served on numerous committees and working groups at the highest levels, such as the D8, UN, World Health Organisation, The African Union and the ECOWAS. He has won several academic honours, including the prestigious University of Leeds’ GRASS Post-Doctorate award. His appointment takes effect immediately.

Elumelu upholds importance of immunisation to diseases prevention

wele Elumelu, GAVI Champion for Africa and founder, Avon Medical Practice, has reiterated the role of immunisation as a sure way to prevent diseases, save the children and advance the economy. She said this when she joined other global health leaders at a photo exhibition organised by GAVI, the Vaccine Alliance, for increased vaccine coverage in under-immunised nations. Following the announcement of Elumelu as GAVI Champion for Immunisation in Africa made earlier in January 2018 on the sidelines of the global World Economic Forum (WEF) in Davos, the GAVI Photo Exhibition ‎convened GAVI representatives who reiterated their commitment to saving the lives of children around the world. Speaking at the event tagged “Vaccine Heroes”, which was held in Geneva, Switzerland, Elumelu commended the great efforts and achievements by the Vaccine Heroes, health workers and the GAVI team in spreading the message and adoption of immunisation globally. “Immunisation is one sure way to prevent diseases, save our children and advance our economy. It is an honour to champion the importance of immunisation that saves the lives of children around Africa

and the world. I am particularly pleased to be doing so with innovative organisations like the ones that make up the Gavi Alliance,” she said. She further harped on the importance of the health of children and committed to working with the global Vaccine Alliance to expand the coverage of immunisation across Africa and in her native country, Nigeria. “In our own capacity, at Avon Medical and Avon HMO, we are working to provide quality, effective and accessible healthcare and insurance to most citizens in Africa’s most populous country, Nigeria. This is our Group’s way of contributing to the work of GAVI. I look forward to doing more work and bringing about more private and public partnerships to promote immunisation and better coverage for children in and out of Africa,” she said. Organised by GAVI, the Vaccine Alliance, the event had in attendance Tedros Adhanom Ghebreyesus, director-general, World Health Organisation (WHO), who spoke about the importance of vaccines as the backbone of health systems. Other global health sector in attendance included Anuradha Gupta, deputy CEO, Gavi, the Vaccine Alliance; Clemens Adams, director, United Nations; and Seth Berkley, CEO, Gavi, the Vaccine Alliance.

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BUSINESS DAY

Firm targets one million students with clean hands initiative Experts canvass support to IFEOMA OKEKE

n a bid to reduce diseases and contribute to a cleaner, healthier Nigeria, Saponaria industries has embarked on an initiative to ensure one million students across the country imbibe the culture of washing their hands regularly. Saponaria industries is a fast moving consumer products company with an array of market leading brands across the personal care, home care and beauty and cosmetics categories. Ashish Misra, managing director, Saponaria industries Nigeria Limited, speaking during the launch of its a million clean hands programme at the Teslim Elias model primary school, Isale Eko Lagos, explained that inadequate sanitation is a major cause of disease worldwide. “Saponaria believes that improving sanitation

Krishna Kumar, executive director with Olajide Francis, head master, at the program launch of Sanitol Million Clean Hands at Teslim Elias Model Primary School, Isale Eko, Lagos alongwith staff and students.

in Nigeria will have a significant beneficial impact on health across households and communities”. “As a leading personal and home care product company, the industry is committed to helping build better awareness in the community to drive home the need for good hygiene and sanitation. “Our clean Nigeria initiative is a multi-pronged mission that is founded on a strong sense of corporate social responsibility and manifests in several ways,”

Misra said. He further explained that the company wanted to focus on communities and in areas where the idea of hygiene and sanitation still has to take root. “In areas like this, where children are coming from the same community, the idea of hand washing has to still take root and sometimes the financial strength is not available to go and buy these products. “This education and distribution will help this effort and that is why we

are choosing schools of this type and in fact, we are going to take this further to places like Kano, Kaduna, Zaria, Onitsha, Aba and Port Harcourt. “In communities like these, where there is a provision of education, we want to reach out to the children in slightly underprivileged communities, so that not only do they get the message but they are able to share it with their friends and parents and their immediate communities. The incidence of deceases and health care challenges is more in areas like these,” he said. Misra disclosed that the company’s first objective is 100 schools in six months, after that, it will reach as many schools as possible. “The moment the company’s target of one million clean hands is completed, it can now go with another product to hospitals, newly born children, mothers, expectant mothers and children,” he assured.

HIV/AIDS factor reviewed at China-Africa cooperation forum KEMI YESUFU, Guest Writer

hen it was announced that the wife of the President, Aisha Buhari and her daughter were accompanying, President Muhammadu Buhari to the Beijing Summit of the Forum on China-Africa Cooperation (FOCAC), which held between September 3 and 4, not much detail was given on the role she would play at the conference. FOCAC, consisting of China and 53 African member states and the commission of the African Union is a platform for high-level dialogue between China-Africa leaders and business representatives. But soon enough, Buhari, disclosed on Twitter that she attended the China-Africa AIDS Prevention and Control meeting hosted by the First Lady of China, Peng Liyuan. Ever since the establishment of FOCAC, cooperation between China and African countries has been strengthened in major areas, such as industrialisation, agricultural modernisation, infrastructure, green development, poverty alleviation, public health, trade and investment facilitation, people-to-people and cultural exchanges, peace and security. From a women and youth empowerment perspective and beyond the trade and investment deals, which dominated media reportage-the meeting between Liyuan and Buhari is also of great significance. It is, in fact a pointer to the actuality that Chinese President Xi Jinping is committed to the ten cooperation plans, which are implemented

HBL TEAM

through the eight development initiatives he listed in his keynote speech at the summit. President Xi said in the address, which he emphasised on China and Africa having a shared future, that he will launch the industrial promotion initiative, the infrastructure connectivity initiative, the green development initiative, the capacity building initiative, the healthcare initiative, the trade facilitation initiative, the people to people initiative and finally, the peace and security initiative. The $60 billion investment in Africa by the Chinese government as stated during the Chinese leader’s speech is to fund these initiatives, which he said would be of enormous benefit to young people in Africa. As one of the participants at the 2017 28th African Union (AU) Summit which had the theme: “Harnessing Demographic Dividend Through Investments in Youth: Empowering Young People, Empowering Young Women”, I believe that any form of cooperation between leaders on the continent and a global power like China, must be youth-centered and youth-driven. Demographic dividend occurs as benefits that can arise when a country has a relatively large population in the working age bracket and it effectively invests in their health, empowerment, employment and education, through government and private sector collaboration. Looking around Africa, a continent with the youngest population globally, many would describe as creditable,

the choice of President Xi to ultimately place youths at the centre of Afro-China cooperation. Between 1960 and 2010, Africa’s working age population (15-64 years) grew more than four times and it will continue increase over the next 40 years. But the continent’s unimpressive developmental indices have seen youths contend with challenges a high percentage of their contemporaries in advanced economies, don’t have to deal with. Unemployment rate in Nigeria increased to 18.80 percent in the third quarter of 2017 from 16.20 percent in the second quarter of 2017. South Africa’s unemployment rate was unchanged at 26.7% of the labour force in the first quarter of 2018 compared with the last quarter of 2017. When it comes to health outcomes in Africa, the figures aren’t any better. Half of the 10 million children who die annually in the world are from Sub-Saharan Africa. Also contributing to the death of young people and children is the HIV/AIDS pandemic. Nigeria has the secondlargest number of people living with HIV. Nigeria is only second to South Africa which has the biggest and most high profile HIV epidemic in the world, with an estimated 7 million people living with the virus in 2015. The aforementioned statistics is why a person-person cooperation on HIV/AIDs between African First Ladies, like Buhari and Liyuan is timely, just as it is very much relevant to FOCAC. The health inter ven-

tions outlined by President Xi, should be top priority in the follow up by Nigeria and other African countries. African leaders must display necessary political will to effectively cooperate with China, as it plans to upgrade 50 medical and health aid programs on the continent, particularly flagship projects such as the headquarters of the African Center for Disease Control and Prevention and China-Africa Friendship Hospitals. The Chinese leader also explained that cooperation programs will be launched on the prevention and control of emerging and re-emerging communicable diseases, schistosomiasis, HIV/AIDS and malaria. He said China will train more medical specialists for Africa and continue to send medical teams that better meet Africa’s needs. More mobile medical services will be provided to patients for the treatment of cataract, heart disease and dental defects. And targeted health care services will be provided to women and children of vulnerable groups in Africa. It is telling that President Xi highlighted his youths capacity building initiative immediately after his health promotion plan, as Africa more than ever must keep his youthful population alive and healthy, for it to play a role in the great future President Xi predicted many times, when he spoke to African leaders. Kemi Yesufu, a development analyst wrote in from Abuja via: yesufukemi@ gmail.com

promote hearing, speech therapy in Nigeria

ANTHONIA OBOKOH

xperts in speech pathology and audiology have said speech and auditory therapies are two ways of improving the wellbeing of many Nigerians, in order to improve inclusivity. According to the experts, this also will intensify the quest for promoting proper identification and diagnosis of communication for everyone who is a hearing or speech patient as well as sensitising the public and the government. They made the submission at the Speech Pathologists and Audiologists Association in Nigeria (SPAAN) tagged:-2018 SPAAN conference with the theme “Better Hearing, Better Speech” held at the University of Ibadan. “To overcome auditory and speech impairment in Nigeria, there is an urgent need to put in place the manpower, infrastructural deficit and implement policy, and also ensure recognition of the professions of audiology and speech pathology in the health sector, for better hearing, better speech in the country,” said Akeem Lasisi, chief medical director, Ladoke Akintola University of Technology Teaching Hospital, Osogbo, Osun State. Neal Boafo, from the school of Biological and Allied Health Sciences, University of Ghana, in his keynote address, said that experts (audiologists and speech therapists) must do more than clinical assessments and evaluations, as persons with communication disorders must feel their impact not only in the clinic, but in the communities in which they live. “The public does not know about auditory accessibility and how to attain it. It is the experts’ responsibility to educate the public on the hazards of loud noise, and we must engage the regulators to enforce by-laws on

noise pollution,” he said. On the way out towards better hearing, better speech, the experts noted that, Neonatal (Infant) hearing screening should be made compulsory in Nigeria, as, this should be done within 72 hours after the delivery of a child, because this mechanism will facilitate better hearing, better speech. “Pre-employment hearing screening should be made compulsory, as a condition for employment in any industry /firm in Nigeria, as cases of communication difficulties should be reported early for appropriate remediation,” say experts. Yemisi Amusa from the department of Otolaryngology, College of Medicine, Obafemi Awolowo University, Ife, Nigeria observed that more still needs to be done in compliance with best global practice. “There has to be an increase in the area of training and research in both audiology and speech therapy in Nigeria, to cope with the demands of the 21st Century practice,” Amusa said. According to the experts, a worthwhile scheme of service should be put in place by the government in Nigeria to encourage the audiologists and speech pathologists/therapists that are practicing in the country. “Only certified audiologists and speech pathologists by the Medical Rehabilitation Therapists (Registration) Board of Nigeria (MRTB) should be allowed to practice the profession, therefore, non-audiologists and non-speech pathologists should not be allowed nor encouraged to practice the profession,” say experts.

ANTHONIA OBOKOH and ANI MICHAEL / Reporters. Email: obokoh.anthonia@businessdayonline.com I David Ogar, Graphics

BUSINESS DAY

Harvard Business Review

Friday 14 September 2018

ManagementDigest

Why Google fiber is high-speed internet’s most successful failure BLAIR LEVIN

n 2010, Google rocked the $60 billion broadband industry by announcing plans to deploy fiber-based home internet service, offering connections of up to 1 gigabit per second — 100 times faster than average speeds at the time. Google Fiber, as the effort was named, entered the access market intending to prove the business case for ultra-highspeed internet. After deploying in six metro areas in six years, however, company management announced in late 2016 that it was “pausing” future deployments. Looked at through the lens of the “big bang disruption” model (described in the book of the same name co-written by Larry Downes), in which innovations take off suddenly when markets are ready for them, Google Fiber could be seen as a failed early experiment in gigabit internet access. But what if the company’s goal was never to unleash the disrupter itself so much as to encourage incumbent broadband providers to do so, helping Google’s expansion in adjacent and emerging markets such as video and smart homes? Seen in this way, Google Fiber succeeded wildly. It stimulated the incumbents to accelerate their own infrastructure investments by several years. New applications and new industries emerged, including virtual reality and the “internet of things.” In the process, local governments were mobilized to rethink inefficient approaches to overseeing network installations. The story of Google Fiber provides valuable lessons for future network transformations, notably the ongoing global race to deploy next-generation 5G mobile networks. It seems, then, a good time to review the story of how the effort came into being, what it achieved and what it can teach

investors, consumers and community leaders. In 2009, the U.S. Congress charged the Federal Communications Commission with the development of a National Broadband Plan. The plan set aggressive targets for expanding high-speed broadband service throughout the U.S., continuing to rely almost entirely on private investment. The overall goal: to ensure that at least 100 million Americans had access to broadband speeds of 100 megabits per second by 2020. As it turned out, providers blew past that milestone as early as 2016. But in 2009, no leading carrier was planning a major upgrade of its existing physical plant. This was a break from the previous decade, when technical improvements and competing technologies meant constant upgrades. By 2009, Verizon had scaled back plans for more fiber, and DSL technology was falling behind improvements in cable. Major markets were migrating toward two segments — a high end served by cable and a low end served by DSL. Continued expansion of broadband capacity was on the verge of stalling. GOOGLE SETS OFF A ‘GAME OF GIGS’ In response to requests from the NBP team, Google suggested construction of a fiber-based gigabit test bed to demonstrate the economic importance of new applica-

tions that would not be possible without next-generation infrastructure — including virtual reality, smart grids and autonomous vehicles. Rather than wait for incumbent providers or a government-funded experiment, the company announced that it would build a small number of experimental gigabit networks itself. To everyone’s surprise, Google was overwhelmed with cities promoting themselves for the test: The company received 1,100 proposals rather than the 10 to 50 it expected. Google was always coy about whether its real goal was to become a nationwide broadband provider, or simply to stimulate investment in next-generation networks by incumbent providers and other new entrants. What is clear is that Google’s own interest in fiber stemmed from a conviction that faster speeds would eventually generate more revenue and services for the broader Alphabet enterprise. Becoming a competitive internet service provider was a secondary aspiration. So Google went about announcing locations, and incumbent broadband ISPs — including AT&T, Comcast and Time Warner Cable — quickly countered by promising improved pricing, faster speeds, network upgrades or some combination of the three. A “game of gigs” had erupted. In the end, Google announced plans to build in 34

cities. Incumbents, who initially dismissed the effort as a publicity stunt, accelerated their own deployments city by city as Google announced follow-on expansion. As the game of gigs played out, city leaders were forced to offer the same administrative advantages to incumbents as they had to Google Fiber. Construction costs fell and the speed of deployments increased. Only six years after Google’s initial announcement, according to the Fiber Broadband Association, 30% of urban residents had access to gigabit internet service. The two-tiered market of high-speed cable and lowerspeed DSL broadband has given way to a free-for-all, forcing adoption of more disruptive strategies by incumbents and new entrants alike. The result is increased competition among providers and cities eager for game-changing private investment. As the authors of the National Broadband Plan hoped, enthusiasm for gigabit internet test beds broke a logjam in infrastructure investment, accelerating fiber deployments perhaps by as much as two years and stimulating incumbents to commit an estimated $7 billion to $10 billion in additional capital spending. Google’s entrance into the broadband market also exposed long-standing federal, state and local regulatory inefficiencies that made deployment slow and expensive. With wasteful processes reformed, providers improved the efficiency of their capital investments, consumers received new services and cities saw revitalized industries. WHAT IT MEANS FOR A 5G MOBILE NETWORK As the U.S. and other economies undertake the even more expensive deployment of next-generation 5G mobile network technologies, heeding the lessons of Google Fiber will distinguish the winners

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

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from the losers. 5G promises speeds and new applications that will make mobile broadband competitive even with fiber. And deployment will likely follow the new city-by-city model pioneered by Google Fiber. Local governments will again have to rethink their approach to construction oversight. And there is evidence that they are. For example, rental costs for rights of way, pole attachments and the like, long seen by some cities as a rich source of funding, are now being fiercely negotiated by providers. In Boston, Sacramento, California, and other cities that have secured early 5G investment, local governments are finding that carriers are more than willing to deal, but they may walk away if officials demand too many concessions. The winners once again will be those communities that appreciate the importance of forming early and comprehensive private-public partnerships with network operators and their investors. That’s quite a legacy for a project that, at least on paper, looks like a failed experiment. And it’s yet another example of the very different rules that apply in the growing list of industries being rapidly transformed by digital change.

Blair Levin led the team that produced the Federal Communications Commission’s 2010 National Broadband Plan. He is currently a nonresident senior fellow at the Brookings Institution and a policy adviser for New Street Research. Larry Downes is project director at the Georgetown Center for Business and Public Policy and co-author of “Big Bang Disruption: Strategy in the Age of Devastating Innovation.”

Friday 14 September 2018

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Black Christmas ahead, as cryptocurrency market wipes off 77% from peak

FRANK ELEANYA

he market capitalisation of all cryptocurrencies on the Coinmarketcap plunged by 77 per cent in 2018, from a peak of $830 billion on January 7 to $187.6 billion on September 12, further reducing the chance of breaking last year’s historic run leading to December. The cryptocurrency market went through explosive growth last year. Between January and September 2017 the market cap grew from $17.67 to $171.64 billion representing about 47.83 per cent month on month increase. By December, the market had reached over $800 billion with frontline cryptocurrency bitcoin touching a record $20,000 price. This year started off on a slow note and the market volumes have since refused to pick up as regulators and market forces pile pressures on transactions activities. Experts see no end in sight as the year draws its final curtains.

Reasons for the market decline range lack of confidence from institutional investors as regulators sustain pressure on cryptocurrency exchanges over security and transparency. At the same time, many startups that raised a lot of money through initial coin offerings (ICOs) through the Ethereum platform have been forced to transfer their funds to fiat money thereby creating a selling pressure on the price of Ethereum the second largest virtual currency. Negative sentiments towards Ethereum was made palpable after Vitalik Buterin, the co-founder of Ethereum was quoted by Bloomberg as saying there is cryptocurrencies’ “ceiling in sight” hence the opportunity for yet another 1,000 times growth in any cryptocurrency may not be possible anymore. Buterin has since come out to offer some explanation to his statement. He tweeted on Wednesday, “To be clear, I never said there is “no room for growth” in the crypto system. I said there is no room for

“1000x price increases”. A 1000x price increase from today means $200T in crypto, or an entire 70 per cent of today’s global wealth being in crypto.” His explanation notwithstanding, Ethereum continued to decline with another 2 per cent lost on Wednesday to bring its price just below $195. “Ether’s price was inflated earlier due to the ICO mania,” Joe DiPasquale, CEO of BitBull Capital told CNBC. “As people pledged Ether with ICOs, the supplydemand equation got skewed – now ICOs have cooled down, and hence the setback.” Bitcoin, the biggest cryptocurrency in terms of valuation, has not been immune to the decline. Bitcoin has taken a 69 per cent hit since it touched the $20,000 ceiline. It has dropped to $6,000 lows in recent times. Altcoins such as Ripple has lost 3.7 per cent to $0.26; Bitcoin Cash dropped 10.4 per cent to trade at $422; and EOS is off 2.6 per cent and trading at $4.86.

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Why entrepreneurs need to read business classics, learn from masters STEPHEN ONYEKWELU

oung entrepreneurs and start-ups find themselves caught up in so many activities meant to help their businesses survive and thrive but reading is usually not one of them. Experts say it is important to read the classics in your field of endeavour, in order to understand how the masters in that field think and act. The classics contain the fundamentals. Fundamentals are insights created by people who had to figure out everything, these are fundamentals on which everything else read about today is built on. Technology may change, ideas evolve but fundamentals, the basics always remain the same. Some young entrepreneurs like to proclaim their negligence toward reading, or claim they can learn the same lessons from videos, podcasts, and even life experience. However, while all of those work too, reading has a unique quality you cannot get elsewhere. It forces your brain to work differently. Besides, some of the brightest minds in history did not record YouTube videos, they wrote books. To say you do not read is essentially to refuse learning some of the greatest lessons of all time. “I always tell entrepreneurs, if you want to learn and master a topic, read the classics, find and read the classics. Here’s the question I get all the time: “But why Ronald? Why waste time with a book that’s old and dated?” Ikenna Ronald Nzimora, business coach said on his Twitter handle @ronaldnzimora. “There’s a reason why when you want to learn a language, you start from learning the alphabets.”

Once the alphabets are in place, the words are strung together and woven into sentences. Sentences give birth to paragraphs and onward the march continues. For a start, here are three business classics to read: 1. The 7 Habits of Highly Effective People by Stephen R. Covey This is one of those books you should read and then reread every year. Make it a habit because it is deemed one of the best business leadership books of all time for a reason. Stephen R. Covey gives actionable but extremely self-aware guidance to aspiring leaders who want to lead by example. The 7 Habits of Highly Effective People is meant for individuals who are looking to improve themselves from the inside out. 2. How to Win Friends and Influence People by Dale Carnegie Tried and true, How to Win Friends and Influence People is one of the most popular business books of all time for a reason. With plenty of undertones of self-development, Dale Carnegie shows readers why handling business the right way is so imperative. 3. Zero to One by Peter Thiel Entrepreneurs everywhere say they want to do something different, that they want to change the world. Well, serial entrepreneur Peter Thiel has decided to tackle that topic head-on, and point out exactly what it takes to make something entirely unique and new. As he says, “The next Bill Gates will not build an operating system. The next Larry Page or Sergey Brin won’t make a search engine. Tomorrow’s champions will not win by competing ruthlessly in today’s marketplace.

Foreign IT investors going to bed with Ghana, shun Nigeria FRANK ELEANYA

he drama the Central Bank of Nigeria (CBN), Nigeria’s financial regulator and government officials has made of the MTN situation appear to be driving away investors in information technology (IT) into the waiting arms of Ghana, Nigeria’s next door neighbour. Inspur Group Company, the second leading company in China’s Information Technology industry and third largest server provider in the world, on Wednesday, 5 September announced that it has chosen the West African with more than 28 million people as the destination of its regional headquarters. Ghana’s President has also revealed the country is in talks with Jack Ma, cofounder and chairman of Alibaba on locating the company’s continental headquarters in Ghana.

Inspur’s chairman and chief executive officer, Peter Sun who called on President Nana Addo Dankwa Akufo-Addo, on the side-lines of the Ghana-Shangdong Business Conference, in China, disclosed that the choice of Ghana as headquarters was due to the country’s peaceful and stable nature, coupled with an impressive economic outlook, which saw Ghana grow at 8.5 per cent in 2017, up from 3.6 per cent in 2016. As the second largest IT company in China, Inspur controls 57 per cent share of global sales in the artificial intelligence (AI) server field which makes it the fastest growing server vendor and holds the biggest market share in the sale of servers in China. Its AI capability could see Ghana becoming the hub of artificial intelligence and big data in the West African region. The CBN’s insistence that South

African telecommunication company MTN Group refund $8.1 billion and slapping of $2 billion tax on the telco by the office of the Attorney General of the Federal has set many foreign investors at odds as many of them have off making new investments in the country. Last week while citing sources in the private equity investment community in Nigeria, BusinessDay reported that investors have expressed anxiety over the safety of their Certificate of Capital Importation (CCIs) upon which they brought money into the country and have also put on hold all investments until there is some level of clarity around the CCI issue. “Nigeria only managed to attract $982 million in FDI in 2017 and there is now fear that the panic created by the CBN sanction on MTN and some of biggest global banks that control 81 per cent of total capital flows into

the country would only lead to lower inflows in the short run and possibly damage the country’s credibility in the international capital markets,” the report stated. With Nigeria considered inhospitable business wise, these investors are increasingly turning to friendly neighbours like Ghana. Part of Inspur Group’s plan for Ghana include human capacity development by inviting about 30 officials from the ministries, departments and agencies, to be trained in the fields of cloud computing and data technology. The company also plans to select ten Ghanaian students who will be go through internship programmes with the company that will eventually see them taking up positions in the company’s operations in Ghana and West Africa. Peter Sun also pledged to assist Ghana in the fields of revenue mo-

bilisation and green development, “a real estate development concept that carefully considers social and environmental impacts of development.” “We encourage foreign investment in our country,” President Akufo-Addo noted in a statement released on Friday, 7 September. “So, as a base for doing business in West Africa, Ghana is ideal, and it will be a win-win situation for us all.” President Akufo-Addo has also revealed discussion with Jack Ma, Chairman of Alibaba to establish its headquarters in Ghana. “I held a meeting with the cofounder and executive chairman of Alibaba Group, Jack Ma. I urged him to consider establishing the headquarters of Alibaba’s Africa operations in Ghana as Alibaba Group looks to partner countries in Africa and help nurture tech talents,” The president wrote on his official Twitter handle.

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Friday 14 September 2018

Send in Commentaries to caleb.ojewale@businessdayonline.com

Legislators, Presidency hold agricultural productivity to ransom . . . Seed, fertiliser bills yet to become law despite ‘commitment to agriculture’ CALEB OJEWALE Twiiter: @calebtinolu

he absence of enabling laws that will guarantee the quality of input supplies in Nigeria is making farmers, particularly smallholders, more susceptible to exploitation, and with this, farm productivity continues to be abysmally low. The oral declarations of focus on agriculture by the present government (like others before it), does not appear to be getting the required actions, particularly in respect of enabling laws that will guarantee standards and quality assurances for farm productivity to improve. Crop production according to data by the National Bureau of Statistics remains the major driver of the agric sector, accounting for 92.06 percent of overall nominal growth of the sector in the second quarter of 2018. Yet the country remains largely unable to feed itself. This among other reasons is because; even the food production is only a fraction of what could have been achieved if the right frameworks had been put in place for the right quality, and quantity to be realised. The National Agricultural Seed Council Bill, which has been passed by the National Assembly, is yet to be signed into law by President Muhammadu Buhari. On the other hand, the Fertilizer Quality control bill appears stuck in the senate, and may not be getting attention anytime soon as legislators are on recess. Curiously, the Fertiliser Bill had its first reading on November 5, 2015, five months before the Seed bill had its first reading on April 13, 2016. Yet, for everyday these bills remain to be passed into law, millions of smallholder farmers continue to struggle and grapple with poverty. The success of farming is largely dependent on the quality of inputs that go into the soil; how good the seed is, as well as fertiliser applied to complement growth. However, the proliferation of the seed market with fake/substandard seeds and grains, under the guise of hybrids is leaving already impoverished smallholder farmers, at risk of even lower productivity. The same can be said in fertiliser, where already reluctant farmers, make purchases only to get disappointing results at the end of the season.

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Source: National Agricultural Seed Council

As experts have noted, for as long as the input level in agriculture is not appropriately addressed through the required legislations, farm yields, productivity, and profitability will continue to be abysmally low. For instance, farmers have been reported to open their bag of fertiliser, applied it on the soil, expecting that when rain falls, it will dissolve. But after rainfall, they saw it wasn’t melting into the soil, picked it up and realised they were sold white stones packed into bags as fertilisers. In the same vein, seeds have been bought, but which either failed to germinate at all, or performed woefully. This results in losses to the already poor farms, and further worsens the already bad food security status. Philip Olusegun Ojo, director general, National Agricultural Seed Coun-

Source: National Agricultural Seed Council

cil (NASC) had noted in a BusinessDay interview, that “The amended bill has been drafted to accommodate recent developments in the seed industry which is a very dynamic industry. Provisions have been made to further support private sector participation in the industry with the inclusion of very stringent penalties that will help dissuade miscreants from engaging in seed business in the country.” Similarly, Ladun Baderinwa, in a presentation on the Legal Assessment of the Seed Bill and the Need for Proactive Measures in anticipation of its passage, noted, “Seed is the most essential component of farming. Hence, the high demand for seed, which has exposed farmers to the danger of burgeoning cases of: seed adulteration, poor seed quality, unauthorised dealers, and other malpractices by unscrupulous individuals camouflag-

ing themselves as agro dealers. The plethora of policy inconsistencies in Nigeria over the years has seen producers and other players in the agricultural value chain record substantial losses, and often discouraged from increasing their capacity. However, legislative provisionss such as those being promoted for Seed and Fertilisers could ensure standards are enshrined across value chains, and ensuring activities are immune from policy flip-flops. The seed bill is a legislation embedded with provisions to ensure increase in private sector participation, protection of farmers and promotion of the seed industry. It is expected to address issues of seed adulteration, poor seed quality, and generally, curtailing the activities of those who camouflage as agro dealers. The fertiliser bill on its part is expected to protect farmers from product adulteration, underweight bags, and other sharp practices by fertiliser manufacturers, importers, distributors, and retailers. These legislations, when passed into law are expected to make the agriculture sector more financially viable. This will trickle down through the value chain, making it more attractive for investors to commit funds in expanding the agric sector as a boost in productivity becomes more guaranteed. Needless to say, the country will also benefit from having more people employed in the sector, and potentially earning more foreign exchange revenue on account of agricultural exports. Paul Amaza, a professor at the African Centre for Shared Development Capacity Building, identified potential benefits which will accrue to the major stakeholders when these two bills are passed and signed into law. a. Positive impact on seed companies, out grower producers and seed enterprises who market seeds b. Farmers from increased yields using improved seeds and incomes from sales of crops c. Government from revenue earned, foreign exchange from seed exports, reduction in food import bill, national food security, employment creation and reduction in social vices. On his part, Gideon Negedu, project manager, FEPSAN-MIRA, in a

presentation, described the Fertilizer Quality control bill (FQC) as one that would “ensure fertilizer quality control system in Nigeria through better regulatory structures in FMARD and ensure improved agricultural yields through quality Fertilizers.” According to Negedu, “To expand private agribusiness investment, the Federal Ministry of Agriculture and Rural Development (FMARD) was implementing the Agricultural Transformation Agenda (ATA). Which Deregulated the fertilizer subsector in 2012-2015 through the Introduction of GES –ATA. “This free access and entry into the Nigerian fertilizer market without a functional regulatory framework exposed the Nigerian farmers into more danger with more and more cases of product adulteration, underweight bags and other malpractices which are committed by fertilizer manufacturers, importers, distributors and retailers. “To correct this anomaly there was an urgent need for a functional Fertilizer laws to be put in place in Nigeria,” he stated. The draft Fertiliser bill reads that the purpose of the proposed legislation is to; a. safeguard the interest of the farmers against nutrient deficiencies, adulteration, misleading claims and short weight; b. safeguard the interest of fertilizer enterprises and contribute to the creation of an enabling environment for private sector investment in the fertilizer industry. The inability to pass these legislations (for Seed and Fertiliser) remains a letdown for many stakeholders who have spent years finetuning, and perfecting these bills in order for agriculture to grow at the desired pace. The Alliance for Green Revolution in Africa (AGRA), through the Micro Reforms for African Agribusiness (MIRA) in Nigeria, has been working with the private sector to support reforms that aim to benefit smallholder farmers. These engagements have included technical and material support, in order for agriculture to have the backing of adequate legislations that will guarantee a benign operating environment for agribusiness. The Nigeria Agribusiness Group (NABG), had also at its end of year press conference in 2017, expressed optimism on the passage of these bills, describing them as the panacea for the challenges of low productivity in the country. Farmers are unable to get the best from the soil, as the seeds planted are more often than not, adulterated. This also applies to fertilisers, which are not only adulterated, and on top of that, applied to equally adulterated seeds. With advances made all over the world in science and technology to boost agricultural productivity, many rural farmers in Nigeria (like most of Africa) are sceptical to adopt these. This is mostly because of experiences in the past when they attempted to adopt innovations but were left disappointed. However, stakeholders expect that if enabling laws are put in place, starting with seeds and fertilisers, confidence will be gradually restored, and Nigeria’s food production will in a short while, measure up to global standards.

BUSINESS DAY

Friday 14 September 2018

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

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

A look at Envoy Hotel and its offerings OBINNA EMELIKE

ome time this year, a hospitality outfit unveiled in Abuja, the Nigerian capital city, with a promise to make a difference starting with its very exclusive location in the Central District Area of Abuja. Before the unveiling, the area, which hosts many country embassies including; United States of America and the United Kingdom, had no hotel outfit due to security concern. The promoters of the hotel saw the gap and decided to create a business environment that is closer to the diplomatic community and expatriates. That also informed the name, ‘Envoy’, which best describes the location and purpose of the property, as well as, recognising the hard work and journey travelled through the ages on the “Silk Road” in connecting our world. The setting speaks volume of the exclusivity of the facilities, services and even the guests, especially the diplomats and high-profile personalities, who now take advantage of the hotel’s meeting facilities. It has also boosted accommodation offerings in Abuja with additional

59 rooms, which are stylish, modern, and exclusive. Furthermore, all rooms are equipped with state-of-theart media and IPTV services along with modern, luxury living and bedding facilities fit for the VIP guest. The boutique hotel is unique for taking advantage of the five human senses; smell, touch, sound, taste and sight to ensure that guests’ satisfaction is at the centre of it all. This implies that a culture of highly personalized service and attention to guests’ needs is in place and adhered to religiously by all hotel staff, including management. The smell senses are tingled from a guest’s very first step into the hotel’s grand reception. The bespoke scent, infused through its scentillators and air conditioning systems is obvious; while soothing sounds from Latin and African artistes play in the background of the hotel. Taste comes in a wide spectrum of continental flavours for all palettes, from arrival treats, o d’oeuvres to fine dining with a sophisticated wine list in the restaurant, lounges and bars. Relaxed touch is sustained with the throw pillows and the soft cuddly scatter cushions on the sofas and beds. The visuals come from the satisfying pieces of timeless luxury. From the

hanging light fittings in the atrium, the lit-up global map accentuating the silk roads of old, and to the ancient story of the envoy aptly created on canvas in the lobby, the grandeur is obvious. Also, the chamberlain chairs in the lounge and waiting areas of the hotel all combined to tell the story of the upmarket, boutique, luxury lifestyle and trendy Envoy Hotel. The uniqueness of the hotel is further heightened by its breathtaking furnishing and decor that speaks to the hotel’s natural exclusivity. Going by the splendor and the very indulging ambiance of the hotel, it is obvious, that The Envoy Hotel is set to create a lasting emotion long after guests have departed. A view from the exterior reveals a building that stands out during the day and radiates astonishingly at night. A unique feature of the hotel is its approach to hospitality technology. The hotel parades; hi-tech AV equipment that includes the use of iPads in the conference room, IPTV in rooms that allow for the communication of guests with the front desk, other key areas within the hotel and information about the local area, among others. Therefore, there is no need for the oldfashioned Guest Service Directory, as fast optic fibre

wi-fi (first in Abuja hotels) is in place throughout the premises. Furthermore, The Envoy Hotel sets a new standard in safety and security for hotel guests, with multi-layer security concept specifically designed for sophisticated travelers. Further to its infrastructure and installations, security is independently audited, a global security certification company was brought in at construction level and provided recommendations regarding security issues, that were taken into consideration when the hotel was constructed, thus resulting in the hotel being the first and only facility in Nigeria to be awarded a Level 2 Plus Global Lighthouse Certification in Security. With that, The Envoy Hotel can indeed be described as the most secure hotel in Abuja. Finally but not the least, Envoy Hotel is unique because of its managers who are known for exceptional service delivery across the many markets they operate. The hotel is part of the Mantis Collection and Mantis is happy to make its first foot print outside Lagos in creating an exclusive, conducive and secure environment for prestigious guests to meet and do business devoid of fear or risk of movement.

Some hotels can monitor when and with which key a room is entered, and there are usually regulations about staff room cleaning procedures to thwart intruders. Out of the way hotels in foreign countries, and some hotels in less developed countries, often do not have secure door locks. In some cases, the hotel staff may actually target you and your belongings. Your level of security awareness and the precautions you take must be adjusted for each city and area

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

Chida Hotel International Address: Plot 224, Solomon Lar Way, Utako, Abuja Tel: 0810 871 8882

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

206 Hotel Plot 206 Cadastral Zone B02 Opposite Kenuj 02 Mall, Oladipo Diya Road, Durumi District, Abuja Tel: 08119707993 Email: 206abuja@gmail.com

Protea Hotel (GRA Ikeja) GRA Ikeja

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

Be cautious of hotel room safety ccess to your room by strangers, and protection of your belongings, are the basic issues of hotel security. This is where the question of electronic door locks and key control comes into play. It is a virtual certainty that people unknown to you such as the cleaning staff will enter your room when you are not present, and the door will be left open for a period of time each day. Well-managed hotels have elaborate security procedures in place to control who is issued a key.

Protea Hotel Apo Apartments Address: Ahmadu Bello Way, Apo, Abuja Tel: 09 480 1818

you visit, but there are standard minimal precautions that apply almost anywhere. Here are some tips to protect yourself and your belongings when you travel: Do not leave valuables in your room when you are absent. Use the hotel safe, and get a receipt for what you leave there. Professional thieves and hotel staffs are usually aware of every possible hiding place for valuables. Some hotels provide a safe in each guest room for storing valuables. Be aware that there could be an insurance

liability coverage issue if you use a guest room safe rather than using the main hotel safe (for instance, your credit card loss/theft policy may not apply if you use the room safe). When you are in your room, lock the door, use the chain lock, and use your door peephole to identify people who knock at your door. In situations where there may be no chain lock and no peephole, you should carry a good quality traveler’s door lock, a doorstop alarm that wedges against the base of the door, or a motion detector.

Gombe Jewel Hotel, 22, Njamena Street, off Aminu Kano crescent Wuse 2, Abuja.

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

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Friday 14 September 2018

Recapturing the past Stories by OBINNA EMELIKE

f you are a lover of African history and heritage, there is a movie to see during this year’s Black History month. The Daughters of Igbo Woman is a literary film that recaptures and renders audible and visible the forgotten voices and lives of three generations of 18th century African women from one family permanently separated by the transatlantic slave trade in inhumanity. The film was set in 1764 in Uga, in present day Anambra State, South Eastern Nigeria, during the boom of slave trade when activities of headhunters were rampant with women and children often falling victims of wars and raids. Three African writers- Ros Martin, who is based in the United Kingdom; Akachi Ezeigbo, who is based in Nigeria and Vida Rawlins who lives in St Kitts, came together to weave the moving tale in memory of Fanny Coker (Fanny being shortened form of Fumnanya (1767-1820). The first part of the trilogy opens with Prof. Akachi Ezeigbo rendering Abu Akwa (dirge) in memory of Ojiugo’s in the wake of her daughter’s disappearance. For Ros Martin, the artistic director of the film, the movie is a must-watch because three

African women writers evoked ancestors’ voice into landscapes of their residence, in bringing together the three film shorts. “We symbolically reconnect to honor our common ancestral spirits who endured forced migration, separation and loss”, she explained.

Keep a date with ‘Golibe’

eyond the normal end of year festivities, there is another reason to visit the eastern part of the country, particularly Onitsha this year. The commercial city will be hosting indigenes, friends and lovers of entertainment to 10 days of fun tagged ‘Golibe’, which literarily means to enjoy. The festival, which is expected to attract over 100,000 visitors during the last week in Decem-

ber, promises to thrill guests with stellar theatrical and cultural performances, music concert, art and craft, sports competitions, carnival, carol, among others. One unique offering of the festival is a date with the paramount ruler of Onitsha at his palace. Of course, Alfred Achebe, the Obi of Onitsha, and one of the highly revered royal fathers in the country, is the chief host. He will be flagging off the festival on December 24, 2018 and awaits your visit to thrill you with the best of Igbo cultural heritage, entertainment, food and history. As well, Amalunweze Francis Anatogu, chairman of the organising committee, urges the public to keep a date with the festival as it promises exciting offerings beyond reunion and the usual annual homecoming. “The Golibe festival will be a world-class entertainment experience for 10 days in Onitsha. Our objective is to provide the grandest entertainment in Eastern Nigeria that will be packed with everything including; music, art, culture, dance, food and fun activities for all ages,” he explained. Golibe from run from December 23,2018 to January 1, 2019.

So far, the movie has been on tours in cities across the world, including tours to two memorial sites in Bristol, United Kingdom, the Georgian House Museum; Greenbank Cemetery among others. In October, 2017, Daughters of Igbo Woman berthed in Lagos,

Nigeria for the relish of film lovers in the country. The Nigerian tour last year, which witnessed a screening at the Freedom Park Lagos, was an absolute thrill and honor for Daughters to be launched in the country where the narrative began, linking

the common ancestry for those in the country and the diaspora. However, the movie is still on the move and may be back to other Nigerian cities this year, especially Enugu, Abuja, and Port Harcourt. So, be on the lookout for the movie.

Oghenekaro smiles at new role in Hollywood

ollowing her outing in Esohe, an epic movie, which was a collaboration between Nollywood and Hollywood, Oghenekaro Itene is furthering her acting career in the diaspora with a new role. The Nigerian rising Hollywood actress was recently unveiled as the official ambassador for the Hollywood and African Prestigious Awards (HAPA). She represents the African diaspora. She is currently filming her debut movie in Hollywood titled ‘Chase’ where she plays the role of Jayla. The movie is written and directed by Michael Matteo Rossi, co-produced by Michael Matteo Rossi and Katrina Y. Nelson. Oghenekaro balances three careers, one as an actress, a makeup artist - the creator/CEO of Kadia Makeovers and a philanthropist. Some of her notable features include; ‘Shattered Mirror’ a feature film directed by Lancelot Imasuen Oduwa, ‘The Prodigal’ and ‘Esohe’ by Charles Uwagbai. She has also featured in some prominent series including, ‘Lincoln’s Clan’ and ‘Tinsel’.

Billed for the Alex Theatre in Glandale, California on September 30, 2018, HAPA is produced by Tina Weisinger of ‘I Dream 4 All Foundation’. The award has continued to raise the bar, creating synergies and bridging gaps with both cultures by recognizing pioneers in the movies, music and comedy industries. HAPA will celebrate outstanding achievements of artistes from various entertainment genres with the vision to

continuously blend the richness of African cultures and the beauty of America to promote In its second edition, HAPA will showcase the grand awesomeness of African royalty merged with the affluence of Western connoisseurs. It successfully celebrates the best of two cultures in 32 categories. HAPA 2018 will be compered by the Tyrone DuBose, an iconic R&B historian, radio host, motivational speaker and philanthropist.

Friday 14 September 2018

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BUSINESS DAY

Business Etiquette

Film Review – Seven and a half dates

t was so nice to see Mercy Johnson okojie in this new movie, although we haven’t seen Mercy Johnson a lot for a while now, she has being doing well since she tied the knots. A lot of fans flocked to the cinemas to go see Mercy Johnson Okojie and Toyin Aimakhu, a lot of them were intrigued to see them together and wanted to see what they were up to in this brand new movie. It was easy to predict the angle the movie was going to take just reading from the title, Mercy Johnson had to go on several blind dates, to find out if she could find the right partner before her sister’s wedding as her mum wouldn’t let her have peace. The movie was directed by Biodun Stephens and produced by Toyin Aimakhu they did have a few things going for them in this movie, such as a nice production, A-list cast, beautiful locations and a similar simple story. It seemed like we have seen this movie before because, we have had similar story lines both foreign and local in the past few years. They did try to pay attention a bit more to details, and for most people it was nice to see Jim Iyke back again and this time with Mercy Johnson Okojie. They had a simple story but added a bit of humour to it, which made everyone laugh all through the movie, especially when Mercy met some of the guys, who seemed and looked like jokers her to, there was no way on earth she was going to date them, left alone marry any of them. A bit about the movie, they started with telling us about the Gomez family, MR. and Mrs Gomez who had 2 daughters Bisola who was the elder and her sister. Bisola loved to work so hard, she was very successful and confident, she was pretty but just couldn’t make out time to mingle with others or social. Her sister on the other hand was the lucky one, she was engaged to a wealthy handsome guy, and they were preparing to get married. She thought that her sister was the luckiest and happiest one as, she saw her always smiling and glowing. She was so happy for her and supported her solely.

with Janet Adetu

Speaking like a pro

Cast: Mercy Johnson Okojie, Toyin Aimakhiu, Charles Okocha, Ali Nuhu, Ken Erics, Jim Iyke, Sola Sobawale, Akin Lewis, Bhaira Mcwizu, Kunle Idowu, Director: Biodun Stephen Producer: Toyin Aimakhu Executive Producer: Samuel Olatunji Casting: 1hr 50min Genre: Drama, Romance & Comedy Ratings: 12 The major problem was her mum who, was bent on frustrating her to go and get married, that the normal tradition expects that she marries first before her younger sister, she later gave her a deadline that she must come with a serious guy for her sister’s wedding in a few months’ time, this was now like a mission impossible for Bisola who had the time, had no single guy in the picture. It was funny how her dad decided to step into her case and help her get 10 dates in two weeks, he spoke to his old friends who had sons, who weren’t married and were ready to settle down and arranged for them to meet up with his daughter, he was very optimistic that she might be lucky and find her Prince charming and Mr Right. Well I hate to break it to you, but they all turned out quiet bad, and for her it felt like a total disaster, she

thought to herself, if it was that difficult to find a single decent, sane and responsible your man. It was quiet funny how they ended the story. To my verdict I score this movie a 6.5/ 10, the movie was simple and nice and had a few things going for them. The only hitch for me was that the story seemed like one we had seen over and over again. We really need to have new stories that would come up with different and unique twist at the end. So I would recommend this for the comedy and romance lovers, who want to have a good laugh. Feel free to review any movie of your choice in not more than 200 words, please send us a mail to linda@businessdayonline. com and stand a chance to win a free movie ticket. Linda Ochugbua @lindaochugbua

o ma ny t i m e s you attend a conference or a speaking engagement and inspite of the microphone in the hands of the presenter you simply still cannot hear what is being said. In the same space another person will take the microphone and be as loud and clear as ever. You wonder if the microphone went on a short vacation or deduce that the speaker truly is soft spoken. Your voice is one of your prized assets, it depicts your personality, your character and your natural persona. How you project your voice also tells us how much of an extrovert or an introvert you are, given the circumstances. Everybody has a voice no matter how low that can be projected to the hearing of all. Though because we are all different without a doubt a number of things can affect how you use your voice. Your voice is key to direct communication, it sets an impression immediately both physically and virtually. One major factor that can affect the use your vocal abilities is LANGUAGE. Communication is either enhanced through speaking of the same language, dialect and intonation or alternatively by not saying anything at all and replacing with BODY LANGUAGE. By this you buttress your voice with gestures, signs and facial expressions which at times has been proven to speak louder than words themselves. I always say that to be able to speak clearly and audibly, a good exercise of stretching and breathing is one to try out before the engagement. Things Affecting the Sound of Your Voice Environment: Many people given the task of speaking in an open external space many struggle to shout out loud even when there is no PA system to assist. Being an outside location may mean that there is a crowd or an audience that needs to be addressed. How far this audience is, the wind, the

weather and the waves may distort how well your voice is received. Equipment: I did mention that for some no amount of equipment can help their voice because they have not practiced the art of using a microphone. The microphone still requires that you will need to raise your voice a little louder than usual for best results. Sometimes the equipment itself is faulty; producing fuzzy unclear sounds or the speakers themselves are not well placed for quality sound effects. The equipment should always be tested before, during and after use. Acoustics: The room or space you

are in also plays a major role in how well your voice is heard. When the venue or the room is in the basement it may have a dingy hollow effect on your voice. Also where there are many windows or how the room is laid out will determine the natural effect on the voice. It is again easier to have a room where participants are clustered together in front other than sparsely scattered all over the room. All About You: Since we are all made up biologically different YOU play the ultimate card in bringing out the best in you. Some factors about you are truly given where you cannot change, these are your gender, age, colour or physiology. Other factors are grown over time steaming from experiences in life, your level

of exposure, your health and fitness regime and your state of mind. Your voice needs preparation, thoughtfulness and discipline. Be on your guard when you mount the stage always ensuring you are fit to stand for long. Speaking Methodology: Pronunciation is the master of all communication enough for people listening to understand you. In pronouncing words how do you come across? How is the PACE of your voice? : Is it fast or slow? How is the PITCH of your voice? : Is high or low? How is the TONE of your voice? : Is it muffled or clear? How is the POSITION of your voice? : Are you seated or standing How is your POSTURE? : Are you upright or bending? How is your DICTION? : Are you verbally correct or not? How is your enunciation? : Is it on a flat platform or floating on high waters? How is your level of ARTICUL ATION? : Are you slanging or are you top notch? Ultimately a visit to the speech clinic is great if you find yourself making speeches regularly. This will give you the opportunity to learn how to get rid of habitual words, fillers inappropriately used slangs. Quick Speaking Tips i. Plan your speech from the introduction to the body and the conclusion ii. Know your audience and match them iii. Do a 5 – 7 minute breathing exercise before speaking events iv. Shorten your speaking event to bullet points for the day v. Record yourself making a speech to identify your habits or gaps vi. Notice your body language as you speak for impact vii. Practice practice practice Good luck Janet.adetu@jsketiquetteconsortium.com

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LegalPerspectives With Odunayo Oyasiji Case Review

United Bank for Africa Plc –V- Corporate Affairs Commission & 5 ORS

Bank of England (1924) 1 KB 461, 472 where the the jurist stated “In my opinion it is necessary in a case like the present to direct the jury what are the limits, and what are the qualifications of the contractual duty of secrecy implied in the relation of banker and customer. There appears to be no authority on the point. On principle 1 think that the qualifications can be classified under four heads: (a) Where disclosure is under compulsion by law; (b) where there is a duty to the public to disclose; (c) where the interests of the bank require disclosure; (d) where the disclosure is made by the express or implied consent of the customer”. These four situations represents circumstances under which the bank can disclose its customers information without incurring any liability.

SUIT NO. CA/L/443/2013 What to note:

This is a review of an already concluded matter before the Court of Appeal. It’s a matter that bothers on duty of confidentiality in banker and customer relationship and the exceptions to the duty. It provides insight into the rights of bank customers to have their information protected by the bank and the instances where a bank is under an obligation to disclose a customer’s information.

Facts In 2011, Corporate Affairs Commission (CAC) wrote a letter to six banks (UBA, FCMB, WEMA BANK, CITIBANK ,STERLING BANK and ZENITH BANK) informing them of its intention to conduct special inspection exercise of all loan transactions and documentations between the banks and all public and private companies in Nigeria. They cited sections 1,315(2) and 317(2) of the Companies and Allied Matters Act (CAMA) as the provision of law that empowers them to conduct such inspection. The banks replied the CAC’s letter and stated that the said section does not confer such power on the body. CAC proceeded to the Federal High Court to file an action against the banks by way of Originating Summons seeking the interpretation of the sections of CAMA relied on. The court granted judgement in favour of CAC. UBA being aggrieved with the judgement proceeded to file an appeal before the Court of Appeal. Issues for determination The Court of Appeal resolved that the appeal will be resolved on the basis of the issues formulated by the appellantThe appellant formulated two issues. They are – • “ Whether section 199 of CAMA, or any other section of the Act, places an obligation on UBA to ensure that charges created under section 197 of CAMA are registered. • Whether a combined reading of sections 7,197,198,199 and 315 of CAMA can be construed as eroding the duty of confidentiality imposed on the appellant by the banker/ customer relationship.”

Submissions The appellant submitted that the court’s interpretation of section 199(1) of CAMA was erroneous. He stated that the wordings of the section are unequivocal and should be given their ordinary meaning. It was argued that the section places the burden of registering a charge on the company that created it and not on the bank. The bank can only at its discretion proceed to register the charge. The counsel to CAC argued that the issues submitted to the lower court was not that of whether CAMA placed a primary or secondary obligation to register charges on banks. He stated that the provision of CAMA clearly makes the registration of charges the duty of “a company “that created the charge. He further argued that the appellant and other banks sued at the lower court are companies incorporated under CAMA (even though they carry on banking business) and as such their obligation to see to the registration of charges are primary. On issue 2, the counsel to UBA stated that the bank has a duty of confidentiality to its customers and therefore cannot be expected to disclose its customer’s information or documents except if such a company is under investigation. He argued that such disclosure can only be done if the customer authorizes it or

in some circumstances. The counsel to CAC submitted that the trial judge’s position was right and reflects the true position of the law. He stated that section 7(1) of CAMA empowers CAC to take steps that are essential for giving effect to the provisions of CAMA. He submitted that the joint reading and interpretation of sections 7, 197, 198, 199 and 315 of CAMA empowers CAC to take steps to enforce the registration of charges by all companies registered under CAMA. CAC therefore has the right to investigate companies to ensure compliance with the provision of the law. The counsel also contended that sections 197,198 and 199 of CAMA require that particulars of charges and documents by which such charges are created are to be submitted to CAC. It was further stated that the provisions of section 197 suspends the duty of confidentiality owed by the bank to its customers for the purpose of registration of charges to keep the public in notice. He also stated that the banks being registered under CAMA and under the supervision of CAC owe a fiduciary duty to the public to prevent fraud by registering charges. The counsel to CAC in agreeing with the judgement of the lower court quoted the lower court where the court stated that “No bank including any of the defendants may lawfully, on the ground of

banker/customer confidentiality or otherwise, withhold such information/particulars, when requested by the plaintiff, in the course of an investigation of the affairs of any company under section 315(1) of the Companies and Allied Matters Act, by an inspector appointed by the plaintiff. Even if it is conceded that the relationship between a banker and customer is one regulated by contract and that the cardinal obligation owed a customer- by his banker is the duty of confidentiality, the confidentiality requirement must be subordinated to public policy enacted by an Act of Parliament. See 317 (1) (a) and (4) of C.A.M.A.” He stated that “it is beyond doubt that a banker owes his customer a legal duty of confidentiality not to disclose information to third parties, and any breach of this duty could give rise to liability in damages if loss results. This duty arises between a banker and customer upon the opening of an account and continues beyond the time when the account is closed. It covers all transactions concerning the account and information obtained by virtue of the relationship between the banker and its customer”. The counsel to CAC in discussing exceptions to the duties on confidentiality in bank and customer relationship relied on the statement made by Bankes L.J. in Tournier v National Provincial and Union

Judgement of court The court held that based on section 317(1) and (4) of CAMA banks cannot hide under the duty of confidentiality not to disclose necessary information to CAC in compliance with sections 197 and 199 of CAMA. The court held that the bank cannot hide behind the veil of confidentiality and as such they are under an obligation to yield to the demands of CAC. On issue 2, the court stated that the provisions of CAMA do not erode the age long duty of confidentiality that a bank owes its customers. The provision at best could only be said to override the duty of confidentiality as it falls within the four exceptions earlier highlighted. Conclusion A bank is under the duty to protect its customer’s information. This duty is implied. It even extends to after the account must have been closed. However, to every general rule there is an exception. The circumstances where such information can be disclosed are – where the law requires disclosure, where there is need for disclosure to protect the interest of the public, where the interests of the bank require disclosure e.g. where the bank sues its customer making money and where the customer directly or indirectly gives consent to such disclosure. A bank can disclose in the foregoing circumstances without being liable.

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The economics of summer transfer … Courtois most profitable recruitment Stories by Anthony Nlebem

hibaut Courtois move from Chelsea to Real Madrid was the best football transfer of the summer window 2018/2019 season, according to the CIES Football Observatory. CIES Football Observatory report for 2018/19 season assesses from an economic perspective paid transfers having taken place during last summer. It highlights that Thibaut Courtois went to Real Madrid for a much lower amount than the estimated fair price (-€23 M). Conversely, Chelsea FC paid over the odds to recruit his substitute: Kepa Arrizabalaga (+€45 M). Courtois money sense The list published by CIES puts Los Blancos’ new goalkeeper recruit at the top, although the standings are not based on an analysis of what he actually brings to the team on the field. It looks at each transfer between clubs from an economic perspective and states, based on its exclusive algorithm, that Courtois moved to the Spanish capital for significantly less than the estimated fair price, a difference of just under 23 million euros. Another player moving home to

Madrid was rated as the second most profitable using this calculation. Rodri Hernández swapped Villarreal for Atlético for a reported transfer fee of 25 million euros. A fair price seen for a player of his stature was estimated at almost 47 million. Rodri, just like Lenglet who comes in at fifth on the list, was aided by a release clause in his contract. Kepa overpriced At the other end of the CIES algorithm lies the goalkeeper that replaced Courtois at Chelsea, Kepa Arrizabalaga. What was seen by the

analysts as a fair price of around 35 million euros was blown out of the water by the London club who handed over 80 million. Riyad Mahrez was another seen in the same light with Man City splashing a reported 85 million euros for him. Barcelona recouped well over the odds for defender Yerry Mina when Everton came calling, based on the report while PSG were also willing to pay what it took to get Kehrer on their books. The discrepancies are worked out by comparing the actual price paid to the CIES Football Observatory’s fair price, which the research group says is the “average between the estimated cost for the most likely buyer before the transfer and the current transfer value”. At the other end of the scale, Chelsea top the list of English clubs who missed out on transfer fees, when they let Courtois go for £20.8m less than his worth. Liverpool played the market best of the English clubs, nabbing Fabinho for £43.7m when the CIES Football Observatory suggests a fair price would have been £22m more. Arsenal saved £11.3m on new midfielder Lucas Torreira, while Wolves saved £8.3m signing Joao Moutinho from Monaco.

There is a Ballon D’Or winner in Africa- Weah

ormer World Footballer of the Year and Liberia President, George Oppong Weah has hailed Nigeria as a great and worthy ally in national development, while describing Nigerian Football as a model that he wants his country to follow. Weah was speaking after the exhibition match between the Lone Star of Liberia and Nigeria’s Super Eagles at the Samuel Kanyon Doe Sports Complex in Monrovia, which

the Eagles edged 2-1, Weah revealed that Nigerian Football has always inspired him. “As a young, upcoming footballer, I was always fascinated by Nigeria’s football stars. I looked up to the likes of Stephen Keshi, Rashidi Yekini, Friday Ekpo and others and believed that the African footballer can also get to the very top. I believe that in Africa, somewhere, there is another Ballon D’Or winner. We have to find him, expose him to the

world and give him the opportunity to actualize his dream,” Weah, who was named African, European and World Footballer of the Year in 1995, said. While commending the Government of Nigeria, the Nigeria Football Federation and the Super Eagles for the honour done him on the occasion which was to celebrate his contributions to Liberian Football, Weah revealed that as a people, Liberians look up to Nigeria’s pedigree in the round leather game and will work hard to get there. Weah and former national teammate, James Debbah led out the Lone Star against the Super Eagles in a game played in an ambience of warmth, mutual respect and good spirit. Henry Onyekuru and Simeon Nwankwo scored for Nigeria in the first half while Liberia reduced the deficit through a penalty kick in the second half when Oluwasemilogo Ajayi handled in the box. NFF 2nd Vice President Shehu Dikko and Executive Committee member Ibrahim Musa Gusau led the Nigerian delegation to Monrovia.

Fernando says McLaren must focus on reliability

ernando Alonso says McLaren must focus on improving its reliability in a bid to maximise its prospects at this weekend’s Singapore Grand Prix. Alonso scored 32 points in the opening five Grands Prix but has added just 12 in the nine events held since, during which period he has failed to greet the chequered flag six times. McLaren is expecting its package to be comparatively stronger

around the streets of Marina Bay, and Alonso says the team must ensure it does not fall short in the reliability stakes. “After difficult races in Belgium and Italy, we say goodbye to Europe and start the fly-away chapter of the season,” said Alonso. “We were hoping to come away with points instead of two DNFs, but on the positive side we managed to find some pace on Sunday in Monza. “The important thing for us to

focus on is reliability, especially since Marina Bay street circuit should be better for us and our package, so we need to maximise our performance. “Points are still definitely the target.” The first-five Grand’s Prix signaled an upturn in form from McLaren – but its underlying lack of pace in qualifying eventually proved a greater hindrance as rivals made gains, while its own issues became more pronounced.

BUSINESS DAY

Sports

Premiership Rugby rejects £275m CVC takeover bid

remiership Rugby has declined to accept a £275m offer from the private equity firm CVC for a 51% share because the clubs are fearful of handing control to a third party. With collective losses of around £35m, the clubs remain on the lookout for fresh investment but at Tuesday’s board meeting they unanimously agreed that selling a majority share was “not the preferred option”. With agreement among all 13 shareholders – the 12 Premiership clubs plus London Irish – required for any sale in excess of 25%, and significant opposition from several owners, CVC’s offer was never likely to be accepted on Tuesday. Still, it is a setback for the clubs most in need of a cash injection considering the £17m windfall that would have come their way. Ian Ritchie, chairman of Premiership Rugby, confirmed that a number of other interested investors have come forward since news of CVC’s offer emerged last week but that they would be seeking a minority investment and plan to move fast. “The majority sale is something that’s not the preferred option because again we think that control is something that by and large we would want to keep within the clubs,” said Ritchie. “But we would look at mi-

nority stakes, people who are either investors or who can bring added value to that, and again there was a good unanimity around the table of wanting to pursue that further.” Last week Premiership Rugby’s chief executive, Mark McCafferty, suggested that the organisation could become a billion-pound business within 10 years and there was also a feeling among some owners that CVC’s offer was too low. Ultimately however, losing too much control proved the stumbling block. “Ian and I have a good mandate from today about what the shareholders want to see,” said McCafferty. “So that’s given us exactly the clarity we want. I think you know us well enough that one of the things we don’t do is hang around. Now we would be looking to move to the next stage relatively quickly, because there’s a lot of opportunities out there in terms of what we want to do to grow the business.”

Osaka set to sign $8.5m annual deal with Adidas

ew U.S. Open winner Naomi Osaka is reportedly set to sign the biggest deal Adidas has ever made with a female athlete, after the tennis star defeated 23-time Grand Slam singles winner, Serena Williams, in straight sets, 6-2, 6-4. According to a new report from The Times, the 20-year-old is expected to sign the deal that is worth an estimated $8.5 million annually. Osaka, who is already on Adidas’ payroll, is only reportedly making a “six-figure”

salary that will expire this year. If the contract goes through, this would be the biggest deal the sportswear giant has ever given to a female tennis player and it could propel Osaka up the ranks on Forbes’ 2018 list of highest paid female athletes, which Williams currently leads. In 2010, tennis star Maria Sharapova made history by signing the most lucrative female sports contract ever with Nike. The deal was a 10-year contract worth an estimated $70 million. However, a spokesperson for Adidas would not disclose any contractual information or rumors about its current or future partnerships with Osaka. Osaka has been thrust into the global spotlight after defeating Williams, who received three code violations during the final match of the Open. The first violation was for illegal coaching from the stands, the second was for smashing her racket and the third was for calling the umpire a “thief.”

Bolton face administration after £4m debt talks fail

olton Wanderers’ chairman, Ken Anderson says the club will be placed into administration due to a dispute over a loan repayment. Anderson claims his offer to pay a £4m debt with interest has been rejected by finance company BluMarble Capital Ltd. Slipping into administration would result in a 12-point deduction for the Championship side. “I am very disappointed that Stuart Wilson and Michael Henson of BluMarble Capital Ltd have decided to reject my offer to repay the loan they originally made to the club through Sportshield Ltd and place the club in administra-

tion,” Anderson told the club’s website. “The amount received by the club was £4m and I offered to repay this plus substantial interest. Unfortunately, this offer was rejected.” Anderson added: “They will now need to fund the club administration going forward, which will take a minimum of three months and will automatically put the club in a two-year transfer embargo and a minimum immediate points deduction of 12 points. “In my opinion, their actions will substantially reduce the value of the club in respect of any future sale and will make it far more difficult to find a future investor/buyer.”

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FEATURE

Understanding the response so far to Nigeria’s financial inclusion challenge BY OUR ANALYST

ollowing our analysis of the results of the World Bank’s Global Findex 2017 report (released in April 2018), the challenges and potential opportunities that it highlights, we move this week, to understand how Nigeria has responded to some of the challenges and what plans it has in place to reverse the current trend of increasing levels of financial exclusion. The origins of intervention Financial inclusion as a lever to address poverty has only been monitored reliably in Nigeria since the mid to late 2000’s. Enhancing Financial Innovation and Access (EFInA), was established in 2007 with a mandate from the UK Department for International Development (DFID) and the Bill and Melinda Gates Foundation to understand the level of financial inclusion in Nigeria and to track it bi-annually. The same year, Nigeria’s Financial System Strategy 2020 (FSS 2020) was launched by the Central Bank of Nigeria (CBN), with the aim of improving the access to and the utilization of financial services in general. In 2008, EFInA’s first nationwide survey – The Access to Financial Services in Nigeria Survey – established a baseline from which intervention could be designed, revealing that 52.5% of Nigeria’s adult population was financially excluded. The survey is repeated every two years, and has provided a strong basis for understanding the progress that Nigeria is making towards financial inclusion. The results from 2008 to 2016 are incorporated below: The 2008 data provided the basis for the first wave of intervention by the CBN in 2009, with the release of the Regulatory Framework for Mobile Money which adopted a dual bank-led and non-bank led model of regulation, but excluded telecommunication companies from participation. As a result of this regulatory framework, 21 Mobile Money Operators (MMO’s) were licensed by 2014. This coincided with a period of significant growth in Nigeria’s previously disparate banking sector, with a process of consolidation in 2006-07 leading rapid growth in deposits and branch networks across a network of 25 major banks. Subsequently, between 2008 and 2012, the country’s financial inclusion indicators (provided by EFInA) showed a positive trend, as overall exclusion levels improved from 52.5% in 2008 to 60.3% in 2012. The Maya Declaration and a National Financial Inclusion Strategy In 2012, Nigeria joined a range of other developing nations at the Alliance for Financial Inclusion meeting in Maya, Mexico and agreed a statement of common principles to guide the development of financial inclusion policy. The Maya declaration was a commitment to unlock the economic and social potential of 2.5 billion people globally, without access to financial services. This commitment was enshrined in Nigeria in 2012, with the development and launch of the National Financial Inclusion Strategy (NFIS) which set out a goal of achieving financial exclusion of only 20%, by the year 2020. Specifically, adult Nigerians with access to payment services was to increase from 21.6% (2010) to 70% (2020), access to savings should increase from 24% to 60%; access to credit from 2% to 40%, Insurance from 1% to 40% and Pensions from 5% to 40%. Furthermore, the channels for delivering financial services were equally targeted to improve, with deposit money

Source: Enhancing Financial Innovation and Access (EFInA) bank branches to increase from 6.8 units to 7.6 units, microfinance bank branches to increase from 2.9 units to 5.5 units; ATMs from 11.8 units to 203.6 units, Point of Sale terminals (POS) from 13.3 units to 850 units, Mobile agents from 0 to 62 units, all per 100,000 adults between 2010 and 2020. The CBN alongside many other organizations has strived to ensure financial capabilities are spread around the country. The country’s bid to reach its self-set financial inclusion goal of 80% by 2020 has led to a number of initiatives and policies that will help address the use of financial services across the country. CBN guidelines for agent banking In 2013, in recognition of the importance of established broad and effective agent networks in order to support the expansion of Financial Inclusion, the CBN released guidelines for agent banking. Under the Guidelines, either a bank or MMO can be considered the principal in an agent banking relationship but banks need to specifically apply for approval to initiate agent banking, while for MMOs, the provisions are already covered by the Mobile Payments Regulatory Framework under which they operate. The responsibility for appointing and managing agents lies solely with the principal, subject to a minimum annual compliance monitoring by the CBN. This means that the principal must ensure that their appointed agents meet CBN requirements for persons operating as mobile money agents. Agents may conduct account opening, withdrawal and deposits, funds transfer services and bills payment amongst others. However, they can only collect and submit account opening information which must then be forwarded to the financial institution that will open the account. The Central Bank has taken a step further by issuing a ‘Regulatory Framework for Licensing Super-Agents in Nigeria’ that lays out the rules for operations of superagents. To apply for a super agent license, an institution must have been operational for at least 12 months, have a minimum Shareholders’ Fund unimpaired by losses of N50 million, be registered with the Corporate Affairs Commission (CAC), and must have a minimum of 50 agents. Licensed companies will renew all agent agreements every two years, except otherwise required. The Framework also lays out rules regarding the responsibilities of super agents, interoperability and the fee-sharing formula for inter-scheme transactions. An updated framework for Mobile Money Nigeria’s Mobile Money regulations were first issued in 2009 and were designed to take both a bank-led approach and non-bank led approach to the roll

out of mobile money.In contrast to the non-bank led approach taken in other markets, where telcos are permitted to become Mobile Network Operators (MNOs) and have played a significant role in the uptake of mobile money in many developing countries. The framework laid out the rules and roles of each participating party (i.e. agents, banks, telecommunications firms, etc.) as well as Know-YourCustomer (KYC) requirements. In 2015, the CBN released reviewed guidelines on Mobile Money, which continued to explicitly prevent MNOs from being mobile money operators, as a continuation of the bank or independentled-implementation model Nigeria has followed since inception. The guidelines did however increase the shareholder funds required to operate as an MMO. Shared Agent Licenses and the Shared Agents Network Expansion Facilities (SANEF) In further recognition of the importance of agent networks to delivering financial inclusion, and the insufficient progress made to date in establishing large, nationwide agent networks, the Central Bank of Nigeria and the Nigerian Communications Commission have been collaborating closely on the structures required to allow telecommunications companies to acquire a new ‘shared agent license’ that would allow them to build and operate agent networks through which financial service providers could offer their products and services. These licenses, would be acquired by Special Purpose Vehicles set up by the telecommunications companies as separate entities, to be regulated by the Central Bank of Nigeria. This was codified in an MOU signed between the CBN and NCC earlier this year, which sets out the terms for the two regulators to collaborate to deliver an effective framework for financial inclusion. The SANEF initiative was launched earlier in the year by the banking sector and the Central Bank of Nigeria, with the objective of rolling out 500,000 shared agents to approximately 50 million Nigerians. The initiative differs from previous ones because it allows for agents to be shared by MMOs, instead of operating on behalf of a single MMO. This means that any agent can service any client regardless of their banking institution of choice. Supporting entrepreneurs and small businesses As part of wider efforts to promote financial access and credit for key industries, the CBN has embarked on a range of programs including the Anchor Borrowers Scheme to support agricultural value chains (N81 billion disbursed to 366,465 beneficiaries) and the Micro, Small, and

Medium Enterprises Development Fund (MSMEDF) which has disbursed N95 billion to 199,785 beneficiaries. The Central Bank has also established a National Collateral Registry (NCR) to facilitate access to finance for micro, small and medium enterprises through the registration of movable assets that could be used as collateral to obtain loans from financial institutions. So far, over 500 financial institutions comprising Deposit Money Banks (DMBs), Microfinance Banks (MFBs), Development Finance Institutions (DFIs), merchant banks, and nonbank financial institutions have registered. The NCR has also recorded a total of 22,744 financing statements valued at N511.35 billion secured with 29,060 various types of movable assets from 106,637 debtors given a total of N563.11 billion worth of loan granted. Refreshing the National Financial Inclusion Strategy (NFIS) In 2017, under the guidelines of the NFIS, a review of the current progress of financial inclusion in the country was required. Coupled with the results of an EFInA survey which showed financial exclusion levels increasing nationally from 39.5% to 41.6% and in line with standard practice, the CBN initiated a review and a refresh of the National Financial Inclusion Strategy. An exposure draft of the ongoing NFIS refresh, released in early July 2018 – states Nigeria is currently not on track to meet the 2020 targets. Nevertheless, the document acknowledges promising developments such as the Memorandum of Understanding (MoU) the CBN signed with the Nigerian Communications Commission (NCC) on digital payment systems in 2018; the CBN’s industry sandbox collaboration with the Nigeria Inter-Bank Settlement System (NIBSS) to allow financial technology start-ups test solutions in a controlled environment as well as the CBN’s partnership with the banking sector to roll out a 500,000-agent network to offer basic financial services. The key challenges constraining growth were identified by the review and refresh strategyas unforeseen socioeconomic shocks, such as the economic recession and insecurity in parts of Northern Nigeria, the slow uptake of digital financial services (DFS) and limited rollout of national identity numbers (restricting the ability of financial service providers to meet knowyour-customer (KYC) requirements). It further acknowledges lessons learned from limitations of the 2012 strategy including a lack of prioritisation across a long list of actions and Key Performance Indicators (KPIs), as well as an outdated set of solutions, some of which, as innovation advanced, became increasingly

suboptimal in their prescribed methods. The refreshed NFIS priorities have been defined based on a new approach that is deliberately more “future-proof” in its focus on first principles, instead of specific approaches that have the potential to become obsolete. It outlines two overarching principles, and several topic-specific principles, noting that these principles are to be adopted as an inseparable set, collectively important to drive financial inclusion in the Nigerian context. The first of the two is an appropriately regulated level playing field that supports the building and growth of a services market with a focus on the activity, not the actor. Secondly, impact is likely to be greatest when each actor focuses on activities that best suit its capacity whilst all maintain an inclusive lens as much as possible. The priority actions are therefore fivefold: Creating a conducive environment for the expansion of DFS; Enabling the rapid growth of agent networks with nationwide reach; Reducing KYC hurdles to opening and operating a bank account; Creating an environment conducive to serving the most excluded, so that inclusion efforts do not focus solely on the ‘lowest hanging fruit’ (and thereby increase inequality) and lastly, driving adoption of cashless payment channels, particularly in government-to-person and person-to-government payments. The strategy derives actions for each of these priorities and assigns them high-, medium-, or low priority status, lays out a time frame for completion and suggests entities responsible for leading or supporting each action. Released in exposure draft format so far, the reviewed draft remains subject to stakeholder input, with a final draft due to be adopted in the next few months. Commitments by the telecoms industry The Association of Licensed Telecoms operators (ALTON) has outlined commitments that the telecoms industry is willing to make materially improve financial inclusion rates and to deliver access to financial services to 90 million customers over the next 30 months. The commitment demonstrates a staggered approach to how the telecoms industry will collaborate to deliver 600,000 mobile money agents and also commits to deepening financial literacy across the country through a financial inclusion secretariat within the Association of Licensed Telecommunications Operators of Nigeria (ALTON). A basis for future success? While it is clear that there has been a significant amount of activity from a regulatory perspective on financial inclusion, the level and type of intervention does not align with the outcomes that we assessed in our initial focus article on the statistics of the World Bank Findex 2017 report. With respect to access to formal financial services by its population, Nigeria is regressing and much will depend on the final content, recommendations and implementation of the refreshed National Financial Inclusion Strategy. Change can be achieved quickly using the right regulatory levers. Other countries have successfully seen major increases in inclusion levels within a short time frame, including India and Ghana in recent years. Whether Nigeria can achieve the same will be the topic of our final feature, which will assess the robustness of Nigeria’s planned interventions and whether they can deliver the change that is needed. This is the second of a 3- part weekly series, on analyzing the Global Findex Database for Nigeria. The next piece will focus on the robustness of Nigeria’s efforts to achieve its financial inclusion targets.

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NEWS How Nigeria spends less on education than... Continued from page 1

While Ghana has an average literacy rate of 76.6 percent, the literacy rate for Nigeria stands at 59.6 percent, which means that there is a need for Africa’s most populous country to increase education expenditure if it were to catch up with the literacy rate in Ghana. Ghana with an estimated population of 28 million people allocated as much as N687 billion (GHc 9.26 billion) to education in 2018 which is 14.93 percent of the country’s N4.6 trillion (GHc 62 billion) 2018 budget proposal. For the same year, in the budget proposal sent by President Muhammadu Buhari to the National Assembly, he proposed a total education expenditure of N605.8 billion which is 7.03 percent of the N8.6 trillion budget proposal. The National Assembly finally approved a total budget of N9.1 trillion but the allocation to education was not increased even when the members increased the total allocation by about N500 billion with most of the new money going into constituency projects. Nigeria’s negligible spending in education could explain the country’s dilapidated education infrastructure from the primary to the tertiary school level, poor quality of teachers and non-availability of teaching aids, as well as the high frequency of industrial action by teachers which has permanently distorted the country’s schooling calendar especially at the tertiary level. It also explains why thousands of Nigerian youths are now flocking to Ghana to take advantage of the higher quality of education obtainable in that country. It is estimated that about 15,000 Nigerians are in Ghanaian tertiary education institutions. Experts in the education sector have told BusinessDay that the country’s education sector has not received as much attention as it should in over a decade. Budgetary

allocation to the sector has consistently fallen short of the United Nations Educational, Scientific and Cultural Organisation’s (UNESCO) recommended 26 percent. In Ghana, figures show that in the last 43 years, the lowest the country has spent on education as a proportion of its budget is 19.39 percent while the highest was 45.49 percent in 2011. In a 2014 ranking of country’s based on education expenditure as a percentage of GDP, while Ghana was ranked 60 globally, Nigeria ranked 180, almost at the bottom, out of a total of 195 countries ranked. BusinessDay research show that Nigeria hardly appears on any map showing countries that spend heavily on education globally. This is despite the fact that Nigeria ranks among the top 20 countries globally with the highest number of young people under 18. An average of 50 percent of the country’s population, that is almost a 100 million people, more than three times the total population of Ghana, are young people under the age of 18. Under the President Buhari administration, while the national budget has almost doubled, the allocation to education has hardly changed. In the 2017 fiscal year, budgetary allocation for education was N550 billion representing 7.4 percent of the N7.4 trillion total budget, Experts in the education sector told BuisnessDay that the government’s low allocation to the education system is reflected in the poor infrastructure, low motivation for teachers across all levels and the high levels of parents seeking to send the children outside the country to get education. Ghana has become a big beneficiary of education tourism from Nigeria due to its better and more stable education system compared to Nigeria. Aderemi Aaron-Anthony Atayero, Vice-Chancellor, Covenant University, Otta Ogun State, urges the government not to underestimate the importance of the education

sector in our national development aspirations. “Quality and sustainable education has the potential to create employment, improve wellness, and create a well-informed citizenry. I want to appeal that Government should declare a state of emergency in this sector and devise a developmental plan that will address and remedy the problem of access and quality within a specified period. There is need for massive infrastructural development in this sector,” he said. Florence Obi, former Deputy Vice Chancellor, University of Calabar warned that any country that neglects knowledge sets itself back by a decade, noting that “any nation that does not pay attention to the educational needs of its population is likely to face difficult times in the future.” Obi pointed out that higher education in Nigeria has been experiencing a crisis as seen in the deterioration in infrastructure, and high number of uncompleted projects as well as poor quality research which is mainly due to the low funding of the sector by the government. Similarly, Peter Okebukola, former executive secretary of the Nigerian Universities Commission (NUC), urged President Buhari to improve funding across all levels of education. He said that increased funding would improve teaching skills and learning and take the country’s education to the level it should be. “A lot of improvement in research should be the focus of our universities in the next 10 years. There should be an improvement in our research infrastructure; there is the need to improve the capacity of our people to do quality research that will find their way into globally acceptable publication outlets.” Isaac Adeyemi, former vice Chancellor, Bells University of Science and Technology Otta, Ogun State also advised that President Buhari must prioritise education through proper funding and policies that will enhance the sector across the board.

L-R: Nike Adebola, marketing and innovation director, Guinness Nigeria plc; Stanley Njoroge, finance and strategy director; Tinuade Awe, executive director, regulations, Nigeria Stock Exchange (NSE); Baker Magunda, managing director, Guinness Nigeria plc; Viola Graham Douglas, corporate relations director; Rotimi Odusola, company secretary, and Hanna Colman, supply chain director, at the gong-ringing ceremony by Guinness Nigeria Plc at the exchange in Lagos, yesterday.

10 takeaways from HSBC’s Nigeria... Continued from page 1

Doing Business survey. Meanwhile weak institutions, infrastructure bottlenecks, disappointing macro dynamics, and poor basic health and education outcomes weigh heavily on the country’s competitiveness, leaving it languishing in 125th position out of 137 countries in the World Economic Forum’s 2017/18 competitiveness rankings. 2. Yet, in HSBCs view, these gains merely mask the economy’s unresolved structural shortcomings. Economic growth remains sluggish, and reliant on the rebound in oil output while the non-oil economy, which accounts for about 90 percent of GDP,

continues to languish with many service sectors still mired in contraction. 3. Joblessness continues to rise, up almost three-fold in three years to 19 percent in Q3 2017, pushing the number in poverty to 87 million. Meanwhile, current account improvements may have pivoted on higher oil prices, but they also derive from on-going import restrictions and limited FX access for many sectors of the economy. All told, HSBC sees growth capped at about 2.5 percent over the next two years – a welcome recovery from the 2016 contraction, but less than half the rate of the previous cycle. 4. The decision to issue external debt to redeem more expensive shortterm government securities is helping

reduce debt service costs in the near term, but exposes the fiscal position to exchange rate risk in the event of a future decline in oil prices and NGN devaluation. Despite NGN stability and signs of convergence between the NIFEX and NAFEX, the exchange rate system remains a brake on growth. Nigeria’s FX system is still characterised by multiple rates and a range of restrictions that create inefficiencies, cause a misallocation of capital and frustrate the functioning of the local economy. The official central bank rate remains 15 percent stronger than the NAFEX at 305 against the USD, and the CBN still excludes a range of imports from accessing FX from the bank. In HSBCs view, a move towards a single and unified flexible exchange rate remains a critical reform and precondition to any

Trains, roads and airports from China... Continued from page 1

the country which eventually saw Nigeria successfully negotiate

a complicated debt write-off deal of about $18 billion. The Country made cash payments of $12 billion while the remainder of the Paris Club debts which exceeded $30 billion were forgiven by its creditors. Today Nigeria’s external debt has swelled to around $22 billion with almost $2 billion of the debt owed to China and that portion is also rising fast as China opens up its cheque book to the country to take as much loans as we want for ‘infrastructure.’ China has become a big lender in recent years since their emergence as an economic superpower, lending to developing economies at what may seem to be friendly rates and almost unpayable principals while collaterizing the loans with national assets. China learnt this trick from Britain which collatarised Chinese aids and guarantees with Hong Kong for 99 years. Britain obtained a 99-year lease of Hong Kong in 1898 and only returned the city to China as recent as 1997 after the lease expired. With a painful experience of losing a valuable national asset to a creditor, China seems to have learnt the right lessons. Lamu port in Kenya, which was constructedbyChinaonaChineseloan

of$16billion,couldfaceaKenyadefault in three years’ time and the biggest port in east Africa and adjoining towns may be handed over to China for 99 years. Zambia is the second African country to default and may soon hand over a national asset. China is now proposing to take over the Kenneth Kaunda International Airport, should Zambia Government fail to pay back its huge foreign debt on time. The issue of whether Zambia possesses the required economic muscle to repay that debt is in contention considering the amount involved. It is typical of the Chinese strategy. China already owns 60 percent shares of the Zambian National Broadcasting Corporation which means the Chinese have an influence over what should or should not be premiered on their sets. As part of a plan to convert $6 billion of loans that Sri Lanka owes China into equity, after debt levels reached unsustainable levels, the nation was forced to cede control of its port to China under a 99 year lease. Under the deal, signed in July 2017, China Merchants Port (CM Port) will run the $1.5 billion Chinese-built port on a 99-year lease. The $1.12 billion total price is to be used to reduce the Sri Lankan government’s debt to China.

•Continues online at www.businessdayonline.com

Air Peace makes history, orders 10 brand... Continued from page 1

on its domestic and regional routes. The airline, which recently added Boeing 777s to its fleet,

is looking to soon launch its international flight operations. Speaking at the agreement signing ceremony at the residence of US Consul General in Lagos, Allen Onyema, chairman/chief executive officer of Air Peace, said the airline was now more positioned to lift Nigeria’s economy, create jobs and transform air travel. “We are excited to add the 737 MAX to our fleet as we expand our network to offer more destinations and serve more passengers,” Onyema said. He added: “The fuel efficiency and superior operating economics of the 737 MAX will ensure that the aircraft will play a major role in growing our business in the years to come.” He commended Boeing, the governments of Nigeria and the United States as well as Fidelity Bank for their different roles in assisting the airline to achieve the feat. For his part, Larry Tolliver, the sales director of Boeing Commercial Airplanes, praised Air Peace for the feat. The new aircraft, he assured, would drastically cut the airline’s cost of operations. Also speaking, John Bray, the US Consul General in Lagos, assured Air Peace of the support of his country’s government. He commended Air Peace and its meaningful acceleration in growth. 5. Election-related spending may compound these fiscal concerns while the poll itself raises macro risks given political uncertainty, fractures within the ruling All Progressive Congress (APC), and President Buhari’s waning approval ratings. 6. FX stability has supported faster disinflation in Nigeria, with headline price growth moderating from 18.4 percent y-o-y at the start of 2017 to 11.6 percent in May 2018. Food and core inflation has been decelerating , and the notable slowdown in monthly inflation rates suggests price pressures should ease further over the coming months. HSBC thinks inflation will reach single digits in H2, before liquidity pressures from an expansionary budget take effect

chairman for the feat. Nnamdi Okonkwo, the managing director of Fidelity Bank, for his part, praised Onyema for his integrity and hard work. He confirmed that Fidelity Bank decided to support Air Peace because of its financial discipline and sound business model. The 737 MAX 8 is part of a family of airplanes that offer 130 to 230 seats and the ability to fly up to 3,850 nautical miles (7,130 kilometers). With improvements such as the CFM International LEAP-1B engine and Advanced Technology winglets, the 737 MAX will help Air Peace save more than 20 percent on fuel costs compared to its current single-aisle airplanes. TheMAX8,inparticular,offersairlines 13 more seats than its closest competitor, sevenpercentlowercostsforeachofthose seats, and 300 miles more range. “Africa is a growing market for commercial airplanes and we are proud that airlines like Air Peace are selecting Boeing aircraft to be part of that growth,” Marty Bentrott, Boeing sales vice president for Middle East, Turkey, Russia, Central Asia and Africa said. “This order reflects the strong demand that we are seeing for the 737 MAX as airlines choose the airplane’s superior performance and reliability.” The 737 MAX is the fastest-selling airplane in Boeing history, accumulating more than 4,700 orders from 102 customers worldwide. and start to push price growth higher. 7. Indeed at current oil prices there may be some upside risks to government revenues this year given that the 2018 Budget adopted a cautious oil price benchmark assumption of USD51/bbl.1. HSBC estimates the breakeven oil price in 2017 to have been USD127/bbl. 8. Whatever benefits oil may bring to Nigeria’s nominal balances, however, there remains significant vulnerability given the structural shortcomings afflicting the economy and its ongoing oil dependence. For one, the gains that have been achieved following the rise in oil prices have not translated into non-oil growth.

•Continues online at www.businessdayonline.com

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Nigeria mini-grid market offers $8bn revenue annually OLUSOLA BELLO

he Nigerian mini grid market which the federal government is vigorously trying to develop with the aim of having stable power supply in the country offers revenue opportunity of $8 billion a year. According to a report which highlights the potential of the mini grid market in the country, it says installing several hundred mini grids can reduce costs by around 60% in 2020, increasing annual revenue by $5 billion and unlocking a large rapidly expanding market. Currently 10 commercial mini grids with a combined capacity of 364kW can serve 2000 households and 250 businesses. Installing 10,000 mini grids of 100kW each will only satisfy 30% of anticipated demand over the next 10 years. The report which was conducted by Rural Electrification Agency and Rocky Mountain Institute, highlights Nigeria’s potential as the biggest and most attractive off-grid opportunity in Africa, with the country also being recognised as one of the best locations in the world for mini grids.

Off-grid applications represent a quickly growing segment of the global power solutions market, and Nigeria is no exception. To this end, the federal government instituted the Rural Electrification Fund (REF) to enable more private sector participation in power projects such as grid extension, interconnected mini-grid, isolated mini-grid, isolated micro/nano grids and stand-alone systems. A minimum of $10,000 (N3.5m) and maximum of $300,000 (N106m), or 75 per cent of the total project cost, whichever was less, could be given as grant. The world Bank investment in Nigeria’s off grid electricity market is one of the banks largest ever, about $1billion investment. Under this arrangement there is $150 million for mini off grid, a $300 million opportunity for private investors that may want to make investments in other relevant aspects of mini grid. The aim of federal government’s Off Grid Electrification Strategy is to provide access to clean and sustainable electricity to millions of Nigerians. It is also to develop a data

driven off grid model for Nigeria that will become an exemplar for Sub Saharan Africa; utilise the funding from the Nigerian Electrification Project (NEP) as a catalyst to scale up rapid implementation of off- grid solutions across Nigeria and to increase gender inclusion in the Nigerian power sector. Part of the plan also is for it to be used to promote the use of a decentralised, multi-demographic approach to power infrastructure delivery; to develop 10,000 mini grids by 2023 which will provide power to 14% of the population; increase economic growth in critical sectors such as Agriculture. Another important and strategic objective of the government in respect of the off grid scheme is to provide reliable power supply for 250,000 Small and medium enterprises (SMEs); to provide uninterrupted power supply in Federal Universities and University Teaching Hospitals and deploy five million solar standalone systems for residential and SMEs by 2023; it is also intended to supports the FGN’s climate change obligations under the Paris Agreement.

CITN sets Dec. deadline for members to obtain Institute’s seal, stamps IHEANYI NWACHUKWU

he Chartered Institute of Taxation of Nigeria (CITN) has reminded all her members in full time or part time practice of the urgent need to obtain CITN seal and stamps on or before December 31, 2018. This is because as from January 2, 2019, all tax computations and filing of tax returns are to be done by licensed Tax Practitioners and must be affixed with CITN Stamps and Seal “while the accompanying audited account would carry ICAN or ANAN Stamps and Seal.” In a recent statement

signed by Adefisayo Awogbade, the Registrar/Chief Executive, Chartered Institute of Taxation of Nigeria, CITN said “For those in practice and are yet to be certified by CITN, the MOU between CITN and ICAN guarantees them direct admission as Associate members of the Institute. The next membership induction is slated for November 2018. Please be guided.” CITN noted that, “The power of CITN to regulate tax practice is enshrined in its enabling Charter, CITN ACT Cap C.10 Vol 2, LFN 2004 and affirmed as follows by Hon. Justice Lateefat Okunnu in CITN v.

ICAN, March 12, 2007; “The lawmakers in their wisdom, have created a new profession out of tax practice.” “It is not for the court of law to question them for so doing. Nor can the court (by means of its pronouncements) to abrogate this law simply because a particular judge is not enamoured of it. This particular law-CITN Act - I find, has come to create a new order that did not exist. It has created the taxation profession, and determined and defined the “space”, as it were, within which that profession is to exist and be practiced”, CITN stated.

Wike to meet Shell, NPA over SNEPCO planned relocation to Lagos AMAKA ANAGOR-EWUZIE

overnor Nyesom Wike of Rivers State will, in two weeks, meet with the managements of Shell Petroleum, Nigerian Ports Authority (NPA), Oil and Gas Free Zones Authority (OGFZA) and other relevant stakeholders over planned relocation of the Supply Base of Shell Nigeria Exploration and Production Company (SNEPCO) from the Oil and Gas Free Zone, Onne, Rivers State to Lagos. The meeting is coming on the heels of an aborted planned protest by the Rivers State Youth Federation.

Currently, several groups including youths and women group in Rivers State have staged peaceful protests to express their displeasure over the planned relocation of the SNEPCO Supply Base from Onne, based on its adverse economic and security implications on the state and the entire Niger Delta region. On Wednesday, the Directorate of State Security (DSS) in Rivers State, together with a former Niger Delta warlord and the Amanyanabo of Okochiri Kingdom in Okirika Local Government Area of Rivers State, King Ateke Tom intervened in the matter and stopped a massive protest

planned by the Rivers State Youth Federation led by its President, Saviour Patrick. To forestall a breakdown of law and order, Ateke Tom and the Rivers State DSS director held a meeting with Patrick and representatives of SNEPCO, where it was agreed that the youths would shelve their planned protest while SNEPCO would suspend the planned relocation until after the meeting with Wike. Sources at the meeting told newsmen that both the DSS and the Rivers State Government are concerned about the long term security implication for the state should the relocation to Lagos be executed.

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NAMA insists TRACON facility in order, debunks lack of spares claim IFEOMA OKEKE

he Nigerian Airspace Management Agency (NAMA) has declared that the Total Radar Coverage of Nigeria (TRACON) project is working optimally. NAMA also said that spare parts for the facility are regularly sourced from the manufacturer, Thales of France, whenever required. A statement by Khalid Emele, the general manager, Public Affairs, NAMA, said that Farouk Umar, the director of safety electronics and engineering services, was quoted out of context during his presentation at the stakeholders’ forum held by the airspace manager in Lagos on Tuesday. Ac c o rd i n g t o Em e l e, NAMA has regularly received

spare parts from Thales of France since the project came on stream in 2010, stressing that the agency would continue to provide state-ofthe-art air navigation services without compromising safety of lives and equipment. Emele explained further that as at August 28, 2018, NAMA still received spares and quotation for more spares from Thales of France, noting that the agency has consistently had discussions on spares with the manufacturer. He emphasised that NAMA regularly takes delivery of spare parts from Thales of France. He said: “The intent of the Director of Engineering Services was to highlight the fact that there was a delay in delivery of spares and not that there are no spares at all from the company. It was a misrepresentation.

L-R: Toyin Adeniji, executive director, micro enterprise, Bank of Industry; Moses Alake Adeyemo, deputy governor, Oyo State, and Vice President Yemi Osinbajo, during the inauguration of TraderMoni at New Gbagi Market, in Ibadan, yesterday.

The rule of law and the rule of herdsmen Continued from back page

pecially as pronounced by the courts, is supreme. That neither national security nor national interest as determined by one man or a few men in government should be the basis for disobeying court orders.” In an opinion piece in the Punch, Chido Nwakanma, a public affairs analyst recently wrote: “Democracy in Nigeria is now in its 19th year in this incarnation essentially because of the observance of the rule of law. The present government is a significant beneficiary. However, this government inclines to push against the progress the nation has made on this path…. Across the land, officials of state, at federal and state levels but mainly in the ruling party, have worked hard at turning back the clock of progress. There is growing impunity and observance of the law in breach rather than in compliance”. From a purely political, oppositional standpoint, the PDP through its spokesman Kola Ologbondiyan, dismissed Buhari’s remarks as the typical “trademark of despotic rulers”. In his own words: “Our national interest is thoroughly embedded, protected, expressed and enforced only under the rule of law as provided by our constitution and there is no how Nigerians can allow an individual to superimpose or override the constitution with his personal whims and impulses…President Buhari should therefore be made to answer for the litany of human rights violations in Nigeria including documented disobedience to court orders, extra-judicial and arbitrary executions, unlawful arrests and political detentions, killing of persons in custody, torture and excessive use of force by security forces on innocent citizens, destruction of property, restriction of

free speech, press, official corruption and lack of accountability”. One of the few people to argue in defence of President Buhari has been Wale Ogunade, convener of a civil-society group, Project-2019. He insists that the supremacy of national security and the national interest is “legal and constitutional”, citing section 45 (1) of the 1999 constitution which expressly states that certain liberties of citizens could be restricted in situations involving (a) the interests of defence, public safety, public order, public morality, or public health; and (b) for the purpose of protecting the rights and freedoms of other citizens. Echoing the French political philosopher Baron de Montesquieu about, Ogunade argues that what we should be doing is looking at ways to ensure that there is effective separation of powers and greater accountability by the three arms of government. In what seemed like a volte-face, however, barely less than a week after his controversial statement, President Buhari told visiting German Chancellor Angela Merkel that he would always uphold the rule of law while governing the country: “… the rule of law embodies all the rightful mechanisms for conflict resolution, both within the country, and in dealing with all foreign partners…” The concept of the rule of law goes back to ancient times. Among the Greek Athenians, the philosopher Aristotle taught that it is much preferable that people are governed by laws than by men, no matter how upright. Classical natural law doctrine teaches that all human beings deserve to be treated with fairness and justice. Saint Augustine of Hippo famously taught that “an unjust law is no law”. In sixteenth century Britain, the Scottish theolo-

gian Samuel Rutherford employed the term in making his case against the doctrine of the divine right of kings. However, it was in the 18th century that the political philosopher John Locke provided the moral and political basis for the rule of law. An apostle of liberty and just government, Locke argued that the dictates of human freedom require that men are governed in accordance with laws made only be a popularly elected parliament and that such laws must treat every citizen equally, fairly and justly. As a matter of fact, Locke taught that citizens reserve a moral right to rebel against an unlawful and unjust government. By the nineteenth century the English jurist A. V. Dicey consolidated in his jurisprudence the key elements of what the rule of law means in a modern democracy. It requires that all policies and decisions are made in accordance with the law; and that both rulers and ruled are subject to the law; and that there is separation of powers between the executive, parliament and judiciary and that the independence of the judiciary is guaranteed in law and in spirit. In our 21st century, the most prosperous nations are also those that rigorously uphold the rule of law. China may not be your liberal-democratic polity, but the Chinese accord high importance to the rule of law, sanctity of contracts and respect for property rights. This has been among the factors accounting for their remarkable economic progress in recent decades. Like all heresies, what President Buhari invoked has some elements of truth to it: in all civilised democracies, circumstances requiring temporary derogation of fundamental rights and liberties can arise. The French

Serena: The day the Sphinx melted call it “la raison d’état”. It was for this reason that the medieval North African Arab jurist and philosopher Ibn Khaldun famously defined the state as that institution that alone has the right to commit crime and get away with it. The presumption that the rule of law and national security are polar opposites is in itself a legal fiction. As the Guardian editorial of Tuesday 4 September opines: “Adherence to the rule of law should be our national interest. It provides us with the framework to deal with every probable scenario and a guide to formulate appropriate responses to unanticipated and new challenges. We submit that it is our deviation from the rule of law as a nation that has created and incubated the serial problems of corruption, insecurity, injustice and impunity that have manifested and crystallised as we all watch, often helplessly”. In democracies old and new, the rule of law is always and everywhere supreme. Extreme situations may arise whereby the interests of national security may take precedence over and above the rule of law. But these are rare cases, not the norm. Tyrants, dictators and madmen always justify their infamies in terms of “the national interest”. It is regrettable that the incumbent of the high magistracy of our Federal Republic could utter such mischief to the face of our venerable justices and our learned lawyers during their biggest annual gathering. For one thing, the context was wrong -- wrong message at the wrong time. And the whole thing was in bad taste. What he said would have been better addressed to the militia herdsmen that have continued butchering defenceless children and women in the Middle Belt of our country.

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She had struggled too much, fought too much. All her life was an endless fight. She had broken through the glass ceiling that held women athletes down, she had broken through barriers of fame, money and victories black girls were not supposed to cross. Sometimes she had despaired and dissolved into tears. More often the barriers had merely stoked her inner grit, making her dig de ep for a hidden primordial reserve that helped her to plough right through. In time the audiences that had booed the black girl began to applaud the black champion and claim her as their own. The umpires that appeared to deliberately make the bad line calls disappeared into history or sheepishly asked for her autograph. But in her mind,this was one provocation too many. She had seen other players – men, who got coaching simply get a warning without being docked a point in a game where they were fighting for their lives. She went back to the umpire - again, and again. She shouted more. She smashed her racket on the court, twisting it into an ugly tangle of fiber and string, as irredeemable as her hope of winning the tennis. She demanded an apology. She called him a thief – he had stolen her point, her game, her moment. The game was clearly gone, as was the last shred of your favourite champion’s composure. Know ing s omething of how the human mind could manifest in a moment of unbearable pain, you worried she could scream, she could tear her hair out, she could tear her dress, she could hurl a

missile, she could bang her head on the tarmac. Mercifully none of those things happened. O n c e t h e l a s t p ro spect of victory had disappeared, the burden was lifted off her shoulder, and she could breathe again. Slowly she began to regain her composure. In the victory ceremony, she calmed the audience, begged them to stop booing. She embraced the victor, her opponent who was in many details her younger self, just beginning to power her way up a slippery slope that was sure to be laced with prejudice, misogyny and countless other challenges. Already, the press were calling her ‘Japanese’, omitting to say she was equally Haitian. She would have to make her own way and define herself. She could roll with the image the media were painting for her, or she could embrace her father in the eye of all the world and let them know she was black too, and proud of it, so that she should properly be described not just as the first Japanese to win a Grand Slam, but also the first Haitian to win a grand slam. But perhaps such things did not matter to the new champion – Naomi Osaka. Everybody had to make their own way, according to their lights. Serena will be back, surely. Almost inevitably she will get past the Margaret Court landmark and be acknowledged as the greatest ever. She was out of line – whatever the provocation, and she lost it – and that was not in reference to the game. Never, never, would she or any of her fans who watched her on this day forget the day the sphinx melted into a hot flowing lava that was so excruciatingly painful to behold.

Friday 14 September 2018

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BUSINESS DAY

FINANCIAL TIMES

Erste’s veteran chief executive to step down at the end of 2019

Ethiopia’s new leader is whittling away the old guard’s power Page A2

Page A4

World Business Newspaper

Turkish central bank raises interest rate to stem currency crisis

Lira jumps more than 5% after increase in benchmark rate to 24% LAURA PITEL AND ADAM SAMSON

urkey’s central bank has sharply increased its benchmark lending rate as it tries to stem a heavy decline in the lira and investor flight that has helped spread jitters throughout emerging markets. Policymakers raised rates higher than the market had expected, lifting the one-week repo rate from 17.75 per cent to 24 per cent. Economists polled by Thomson Reuters had expected an increase to 22 per cent. The lira jumped sharply on the news, leaving the currency up by as much as 5.3 per cent on the US dollar from Wednesday’s closing level. Stocks trading in Istanbul also rallied, with the benchmark BIST 100 index up 1.1 per cent and banks rallying 4.2 per cent. The decision by the central bank will have ramifications far beyond Turkey’s borders. The country is viewed by global investors as one of the most vulnerable emerging markets because of its heavy dependence on foreign debt. Ankara was the focus of markets’ attention on a day when the Bank of England and the European Central Bank left rates unchanged. The Turkish central bank’s decision came just hours after the country’s president, Recep Tayyip Erdogan, underlined the political tensions over interest rate policy by decrying high interest rates as a “tool of exploitation”. Mr Erdogan insisted the central bank, which has faced mounting investor doubts about its credibility, was independent. But he said his unorthodox views that high rates cause, rather than curb, inflation

remained unchanged. Brett Diment, head of emerging market debt at Aberdeen Standard Investments, said the rate rise puts Turkey “on the slow road to recovering some monetary policy credibility, and that is critical”. He added: “If they hadn’t hiked today then the real risk was that the lira would sell off sharply again and the country would swiftly head towards a balance of payments and even banking crisis.” In the past month an emerging market sell-off has been concentrated in Turkey and Argentina, which face the deepest fiscal and political challenges. But worries over their condition have helped to sour sentiment on other markets including South Africa and Indonesia. Turkey has struggled with soaring inflation that reached almost 18 per cent in August. The lira, battered by a US-Turkey dispute as well as concerns about the health of the Turkish economy, has lost roughly 38 per cent of its value since the start of the year. The central bank said on Thursday that “recent developments regarding the inflation outlook” pointed to “significant risks to price stability”. It said it would “continue to use all available instruments in pursuit of the price stability objective” and that a tight stance would be maintained until inflation showed “signification improvement”. Alvaro Ortiz Vidal-Abarca, chief economist for Turkey at the Spanish bank BBVA, described the decision as “very welcome”. He said: “The [central bank] has delivered bold action again, eliminating doubts about independence,” he said.

Aung San Suu Kyi backs jailing of Myanmar journalists South-east Asian nation’s de facto leader says reporters broke the Official Secrets Act JOHN REED

ung San Suu Kyi on Thursday backed Myanmar’s sentencing of two Reuters journalists to seven-year jail terms in her first public remarks since the verdict caused an international furore. The two reporters were found guilty of breaking a colonial-era secrets law in connection with their reporting on the Myanmar military’s violent crackdown on

Rohingya Muslims, which sent more than 700,000 people into exile and prompted the UN recently to call for an investigation of genocide. “They were not jailed because they were journalists,” Myanmar’s de facto leader said when asked whether she was comfortable with the notion of reporters being imprisoned. “They were jailed because sentence has been passed on Continues on page A2

Lira jumps more than 5% after increase in benchmark rate to 24%

China open to US talks to defuse trade tensions Mnuchin aims to meet Beijing’s top economic official as large-scale tariffs threat looms DEMETRI SEVASTOPULO AND JAMES POLITI

hina has welcomed a US approach on fresh talks to defuse an escalating trade war before President Donald Trump follows through on a threat to impose tariffs on another $200bn of the country’s imports. Steven Mnuchin, US Treasury secretary, is pushing to meet Liu He, the top Chinese economic official, according to one person familiar with the discussions between Beijing and Washington. China’s foreign ministry and ministry of Commerce both said on Thursday that Beijing welcomed the approach, but was still coordinating details with the US side. Communications have been steady since Chinese negotiators travelled to Washington last month, Beijing’s foreign ministry said. “There’s some discussions and information that we

received that the top of the Chinese government wished to pursue talks,” Larry Kudlow, chief economic adviser to US President Donald Trump, told Fox News on Wednesday. “Secretary Mnuchin, who is the team leader with China, has apparently issued an invitation . . . there aren’t many details. “In most cases talking is better than not talking so I regard this as a plus.” The move comes after months of stalemate during which both sides have remained steadfast in their positions. Mr Trump has already imposed tariffs on $50bn worth of Chinese imports, prompting Beijing to retaliate. The US president has warned China that he has approved tariffs on another $200bn and said he could increase the amount of products affected by levies by a further $267bn. The Treasury declined to com-

ment on the move to kick-start highlevel negotiations with China, which was first reported by the Wall Street Journal. A mid-level Chinese delegation met US officials in Washington last month, but the negotiations failed to resolve any of the differences between the economic powers. The move to resurrect negotiations was welcomed by the US business community who have raised concerns that Mr Trump’s focus on tariffs will hurt US companies and consumers. Three in five US companies have been affected by tariffs already, according to a survey by the American chambers of commerce in China released Thursday. US-China tariffs in numbers The tariffs have become an election issue in agricultural districts and states ahead of the November midterm elections, as Republicans try to prevent the Democrats from winning back the House of Representatives.

Malaysia hopes to recover 30% of missing 1MDB billions Finance minister Lim Guan Eng concedes most of fund’s losses are irretrievable BEN BLAND AND STEFANIA PALMA

alaysia’s finance minister “realistically” hopes to recover 30 per cent of the money misappropriated from 1MDB, the state investment fund from which at least $4.5bn was allegedly diverted. Lim Guan Eng said on Thursday that recovering assets from the fund set up by former prime minister Najib Razak was “much slower than we anticipated” because “the rule of law moves sometimes at a glacial pace, especially when it involves other countries”. “Of course we want to get as much as we can but the reality is you can’t get the actual amount,” Mr Lim said in Hong Kong, where he was speaking at an investor conference. “You’ll be very lucky if you get half but realistically you’re looking at maybe 30 per cent”. Mr Najib, who was defeated by Mahathir Mohamad in an election in May, was charged with money laundering last month in relation to a 1MDB subsidiary, the latest step

in an escalating investigation into the scandal surrounding the fund. Mr Najib pleaded not guilty and has always denied any wrongdoing in relation to 1MDB. Malaysia is working with officials in Singapore, Switzerland and the US, among others, to determine what happened to the 1MDB funds. Swiss attorney-general Michael Lauber warned in July that, under the Swiss legal system, the restitution of funds occurs at the conclusion of a case. The attempt to recover the 1MDB funds is part of a wider battle to tackle substantial debts and financial liabilities built up under the previous government, with Mr Mahathir promising to review or scrap a number of costly infrastructure projects agreed by Mr Najib with China and Singapore. The new government faces a drop in revenue, after replacing an unpopular goods and services tax with a narrower sales tax, and also needs to repay RM1.3bn ($310m) of 1MDB debt by year-end.

Last week, Malaysia and Singapore agreed to postpone for two years a multibillion-dollar high-speed rail project to link the neighbours. Mr Mahathir initially wanted to scrap it because of the high cost. Mr Lim said on Thursday that there was still a chance the project would be cancelled after two years. “With this two-year delay, we hope that our finances will have improved to a level where we can consider continuing with the high-speed rail, failing which then we’ll probably have to cancel it and pay the necessary compensation,” he said. Singapore has warned that in case of the deal’s termination, Kuala Lumpur would need to bear S$250m (US$182m) in costs that the city state has already incurred. Warning of the need for further belt-tightening ahead of October’s budget, Mr Lim said he was willing to become “the most unpopular finance minister in Malaysian history” to save the economy.

BUSINESS DAY

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NATIONAL NEWS

FT Aung San Suu Kyi backs jailing of Myanmar journalists

Pussy Riot member ‘poisoned’, colleagues say

Continued from page A1 them because the court has decided they have broken the Official Secrets Act,” she added, speaking at a World Economic Forum summit of south-east Asian political and business leaders in Hanoi. Wa Lone and Kyaw Soe Oo were jailed last week after a trial that critics said was marred by irregularities and raised questions about Myanmar’s commitment to press freedom and the rule of law. Aung San Suu Kyi defended the court’s judgment, confirming she had read it. “Of course, I have,” she said. “It would be very remiss of any member of the government not to have read it.” Aung San Suu Kyi defends jailing of Myanmar journalists Responding to critics of the court’s decision, she said: “I would like them to read the judgment and point out where they have seen a miscarriage of justice.” She said that due process would allow the two men to appeal their sentence. Mike Pence, US vice-president, on Tuesday said the two reporters “should be commended — not imprisoned — for their work”. Phil Robertson, deputy Asia director for Human Rights Watch, on Thursday described Aung San Suu Kyi’s comments on the rule of law as “absurd”. “The guilty verdict came despite one policeman admitting on the stand he was ordered by his superiors to frame the reporters and another policeman muddying the circumstances of the arrest by deliberately destroying his notes,” he said. The Hanoi meeting, hosted by Vietnam’s Prime Minister Nguyen Xuan Phuc and also attended by the leaders of Indonesia, Cambodia, and Laos, was focused on entrepreneurship and the region’s drive to transform their manufacturing-heavy economies. Representatives of Amnesty International and the International Federation for Human Rights, who hoped to attend the meeting, were denied visas by Vietnamese authorities. Speaking on Wednesday Hun Sen, Cambodia’s autocratic leader, rejected foreign criticism of countries in the Mekong region, which he described as “political victims”. “Countries which are outside of the region always slap our heads and tell us what to do,” he said, sitting alongside Aung San Suu Kyi and Laos’ prime minister Thongloun Sisoulith. The Cambodian leader, whose long-ruling party recently won full control of parliament after outlawing its main opposition, also explicitly defended Myanmar’s crackdown on Rohingya. “It’s accused of genocide, but do you all understand about Myanmar? Do you know about Myanmar?” he asked the audience. “They have to solve a lot of challenging issues in relation with security.”

Friday 14 September 2018

Member of Russian group that opposes Putin is in a ‘serious condition’ in hospital MAX SEDDON AND HENRY FOY

The rise of Ethiopia’s prime minister Abiy Ahmed has been greeted with near-euphoria, such was the thirst for political change © AFP

Ethiopia’s new leader is whittling away the old guard’s power The ‘Abiymania’ that greeted the prime minister’s rise to power has not yet bitten the dust DAVID PILLING

t is New Year in Ethiopia, a modern republic and former ancient monarchy in the Horn of Africa that still follows the Julian calendar. To celebrate, Abiy Ahmed, Ethiopia’s 42-year-old prime minister and the most dynamic leader in Africa, opened the frontier with old-enemy Eritrea, allowing families separated for a generation to pour across the border in tearful reunion. These days, it feels like New Year in Ethiopia every day. Mr Abiy has been prime minister for less than six months, after the abrupt departure of his predecessor. Such has been the thirst for political change that his ascendance, and the startling use he has made of his new-found authority, have been greeted with near-euphoria. Polls suggest he has a 90 per cent support rate. People in a country with a median age of 19 snap up books about their new hero, the first prime minister

drawn from the politically marginalised Oromo ethnic group. The Oromo make up about 35 per cent of the country’s swelling population of 105m. Mr Abiy, a former army intelligence officer, speaks all three of the country’s main languages. His father was Muslim and his mother Christian. Educated in computer engineering in Addis Ababa, business studies at London’s University of Greenwich and with a doctorate in conflict resolution, Mr Abiy is an insider with an outsider’s perspective on his country’s complexities and contradictions. The new prime minister has become a sort of cross between Che Guevara and Emmanuel Macron. Almost inevitably, his rise has spawned the term Abiymania. So far, despite an assassination attempt, Abiymania has not bitten the dust. Since April, Mr Abiy has wasted no time. As well as concluding an undreamt-of peace deal with Eritrea, he has released thousands of political prisoners, legalised opposition par-

ties, and eased restrictions on tight internet controls. He has proposed opening the telecoms and airline sectors to foreign capital, a change that would breathe new life into an economy reaching the limits of state planning. Mr Abiy has also begun to dismantle much of the state apparatus that had brought Ethiopia to the brink of political implosion. The sudden resignation of his predecessor in February ended a period of popular revolt that had threatened to sweep away the Ethiopian People’s Revolutionary Democratic Front, the four-party coalition that had run the country since overthrowing the Marxist Derg in 1991. The locus of that rebellion was Mr Abiy’s home state of Oromia. Though nominally part of the four-party coalition, the Oromo felt — in common with other ethnic groups — that the EPRDF placed too much power in the hands of Tigrayans, who comprised just 6 per cent of the population.

Calls grow for international action in Venezuela Worsening crisis prompts new talk of humanitarian or even military intervention JOHN PAUL RATHBONE

hen Nikki Haley told the UN Security Council this week that “enough is enough” and “we need to do something”, she was not suggesting that Tomahawk missiles should soon rain down on Venezuela or marines land on its beaches. Nonetheless her words formed part of a growing chorus for tougher action, including persistent rumours of perhaps military escalation, fuelled by growing international outrage over Venezuela’s refugee and social crises, and frustration over the entrenched regime’s authoritarianism. “We’ve been talking about Venezuela for a long time,” said Ms Haley, the US ambassador to the United Nations. “Now we need to do something.” Donald Trump, the US president, has repeatedly suggested the idea of military action, but US officials as well as Latin American leaders reject the idea. Jim Mattis, US defence secretary, said last month that Venezuela’s crisis is “not a military matter”. Nonetheless, rumours continue

to rumble, fed by domestic political considerations in Venezuela and the US. “There is a sense of ground being seeded, at least at the UN,” said Diego Arria, a former Venezuelan ambassador to the UN, who advocates the idea of “humanitarian intervention” backed by an Inter-American task force. “But if anything or whatever happens, it will not be until after the US November midterms.” Ricardo Hausmann, the respected Harvard economist and a former Venezuelan planning minister, outlined the controversial idea in January. Nicolás Maduro, Venezuela’s president, who presides over a hyperinflation-ravaged economy, has faced repeated coup attempts by disgruntled army officers, according to a series of reports, but each has been thwarted with the help of Cuban intelligence advisers. Most recently, an attempted assassination by drone failed in Caracas on August 4. Meanwhile, Mr Trump faces uncertain midterm elections in November that underline the importance of swing states such as Florida, which has large émigré Venezuelan

and Cuban-American constituencies that may be swayed by tougher US policies towards Caracas and its closest ally Havana. One indication of that came two weeks ago when Marco Rubio, the Cuban-American Republican senator for Florida, said he no longer ruled out military options after meeting with John Bolton, Mr Trump’s hawkish national security adviser. “I believe that the armed forces of the United States are only used in the event of a threat to national security,” Mr Rubio told Univision News. “I believe that there is a very strong argument that can be made at this time that Venezuela and the Maduro regime has become a threat to the region and even to the United States.” Over the past two years, the Trump administration, alongside Europe, Japan, and the Group of Lima, which gathers Canada and Latin America’s biggest countries, has increased the pressure on Caracas, banning certain financial transactions and sanctioning officials for alleged human rights abuses, money-laundering and drug-trafficking.

member of the Russian activist group Pussy Riot, known for their acts of protest against President Vladimir Putin’s government, is seriously ill in hospital after a suspected poisoning, fellow group members said. Petr Verzilov, who was recently jailed for staging a pitch invasion and protest during the World Cup final in Moscow in July, is in serious but stable condition after what doctors said was likely a poisoning induced by an overdose on medicines that block nerve impulses, according to fellow group member Maria Alyokhina. The claim comes a week after UK officials accused two Russian military intelligence agents of poisoning double agent Sergei Skripal with the nerve agent novichok in the English city of Salisbury in March. The Russian government has denied being involved in the attempted assassination. Veronika Nikulshina, Mr Verzilov’s girlfriend, told radio station Ekho Moskvy that Mr Verzilov first felt symptoms on Tuesday evening when his vision began to deteriorate. “He said, ‘Can you believe it? Here I am and my eyesight’s darkening, that’s old age for you,’” Ms Nikulshina said. Within hours, however, Mr Verzilov became disoriented and his speech became slurred. “He couldn’t even recognise me, but he could react to what the doctors were asking him,” she said. Doctors let Ms Nikulshina and Mr Verzilov’s mother visit him on Thursday afternoon after previously denying them access. According to Mr Verzilov ’s friends, doctors suspect his condition was brought on by ingesting anticholinergic drugs, which block nerve impulses and are used to treat a variety of illnesses from gastric and respiratory problems to dizziness and insomnia. Ms Nikulshina said Mr Verzilov did not take drugs and drank moderately. Mr Verzilov’s friends said they were certain he did not ingest the medication deliberately. “[Petr] has iron health, so I don’t know,” Ms Alyokhina said. A fellow anti-Putin activist, Vladimir Kara-Murza, has said he believes he was deliberately poisoned twice in the past three years with an unknown substance that left him near death. Ms Alyokhina said Mr Verzilov’s symptoms differed from those of Mr Kara-Murza, who recovered fully. Pussy Riot achieved international notoriety in 2012 for staging a punk performance in Moscow’s main cathedral as a protest against the Orthodox church’s support for Mr Putin’s re-election campaign. Ms Alyokhina and Mr Verzilov’s wife Nadezhda Tolokonnikova spent two years in prison after being convicted of “hooliganism motivated by religious hatred” for the performance. The group, known for wearing bright fluorescent tights and balaclavas and campaigning for feminism and LGBT rights, has since staged a series of protest acts and performance art stunts against Mr Putin’s rule.

Friday 14 September 2018

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BUSINESS DAY

FINANCIAL TIMES

COMPANIES & MARKETS

@ FINANCIAL TIMES LIMITED

Erste’s veteran chief executive to step down at the end of 2019 RALPH ATKINS

ndreas Treichl, chief executive of Austria’s Erste Group and the longest serving leader of a large listed European bank, will be replaced by another veteran of the Viennaheadquartered finance house when he steps down at the end of next year. Mr Treichl, aged 66, has been Erste’s chief executive for 21 years. He navigated it through economic upheaval across central and eastern Europe — where it is the largest EU bank — as well as the global financial crisis. His successor will be Bernhard Spalt, 50, who has spent his entire career at Erste since joining in 1991 from university. He is at present chief risk officer at Erste’s Austrian subsidiary but has worked closely with Mr Treichl since the investor roadshows ahead of Erste’s stock market listing in 1997. Mr Spalt was also risk officer for the group during the global financial crisis, and subsequently part of management teams in Romania, Slovakia and Hungary. The decision to appoint a longserving insider, which was announced on Thursday, indicated Erste was determined to stress continuity under its new leadership. The lengthy handover period would also “ensure that we have a smooth transition and maintain the

bank’s growth momentum,” said Friedrich Roedler, Erste’s chairman. Erste has a €220bn balance sheet and reported a net profit of €1.3bn last year. Mr Treichl came from an Austrian banking dynasty — in the 1970s his father led Austria’s Creditanstalt — but earned a reputation for straight talking. Earlier this year, he told the Financial Times he should have been sacked several times, “because I screwed up big time on a couple of things, because I formed a view that just was wrong.” Among his mistakes, he said, was failing to spot the global repercussions of the US subprime mortgage crisis a decade ago. Mr Treichl had been expected to remain at the helm of Erste until June 2020, when his contract expired, but he will now step down six months earlier. The bank explained that the handover period was already long enough. After his departure, Mr Treichl will become chairman of the Erste Foundation, the bank’s largest shareholder and successor organisation to the original Austrian savings bank formed in the early 19th century to provide financial services to the poor. Expanding Erste from a local Austrian bank into a finance house also serving the EU’s eastern European member states had been “my life’s work,” Mr Treichl said.

US core inflation eases in August from decade-high PETER WELLS

S core inflation eased in August from the previous month’s decade high, but the pullback is unlikely to deter the Federal Reserve from pushing ahead with an interest rate rise later this month. Core inflation, which strips out volatile energy and food prices and is closely followed by the Fed, rose 2.2 per cent in August from a year ago, compared with expectations among analysts it would hold steady at the 2.4 per cent pace of July, which was the fastest rate since September 2008. The headline consumer price index rose 2.7 per cent year-on-year

in August, down from 2.9 per cent in July and weaker than expectations for a 2.8 per cent rise. Thursday’s consumer price data follow jobs figures last Friday that showed wages grew at their quickest year-on-year rate in nine years, and economic growth of 4.2 per cent in the June quarter, which expanded the most since 2014. Those data helped one measure of US inflation expectations move yesterday above its 50-day moving average for the first time in a month. Last month’s decline in consumer prices comes in the wake of wholesale inflation data on Wednesday that showed producer prices unexpectedly shrank for the first time in 18 months in August.

Man City profit jumps to £10m as revenues climb Chairman says strong performance is the result of ‘a carefully crafted strategy’ MURAD AHMED

anchester City has enjoyed a record year on and off the pitch, taking half a billion pounds in revenues for the first time, while also becoming the first team to secure 100 points to win the English Premier League title. On Thursday, the club released its annual report for the 2017-2018 football season, revealing that it made £500.5m in revenues — a near 6 per cent uplift from the previous season— thanks to increases in broadcasting, sponsorship and match day income. Pre-tax profit at the club rose to £10m, up from just over £1m a year earlier. The English club is the largest within City Football Group, an umbrella organisation with football holdings around the world, owning clubs in the US and Australia as well as stakes in teams in Japan and Spain.

CFG is controlled by Sheikh Mansour bin Zayed al-Nahyan, the billionaire businessman and member of the Abu Dhabi royal family, who bought Manchester City in 2008. Sheikh Mansour has invested hundreds of millions of pounds to buy superstar players to help power the team to the top of the sport, while also creating a huge training complex near the club’s stadium in the east of Manchester. But so-called Financial Fair Play regulations introduced in 2011, which are designed to make clubs break even, has propelled Manchester City to gain revenues beyond the largesse of its owner, in order to sustain its massive spending. Manchester City chairman Khaldoon Al Mubarak said last season’s strong financial performance was “the result of a carefully crafted strategy — one in which organic evolution has also been allowed to thrive”.

Fed could afford to run looser monetary policy, academics argue Officials too pessimistic about US economic potential according to paper presented at Brookings SAM FLEMING

he Federal Reserve has scope to run a more stimulative monetary policy than is currently being pursued because officials are being too pessimistic about America’s economic potential, according to research presented on Thursday. Analysis from academics at the University of Texas, Austin and University of California, Berkeley argued that downward revisions by major agencies such as the Fed and the Congressional Budget Office to estimates of US potential output since the Great Recession of 20082009 have been too pessimistic. This is because many methods of measuring potential output — the normal, long-run level of

economic activity — are overly sensitive to short-term changes in demand, they said. Alternative ways of measuring the economy suggest that US potential output has not declined nearly as much as official estimates suggest it has, they argue in a paper presented at a Brookings conference. The implication is there is more room to boost the expansion with low interest rates and stimulative fiscal policy, according to the economists — Olivier Coibion of the University of Texas at Austin, and Berkeley’s Yuriy Gorodnichenko and Mauricio Ulate. “Real-time estimates of potential GDP are failing to adequately distinguish between permanent and transitory shocks,” their paper said. “The apparent inability of available estimates of potential

output to differentiate between shocks that have permanent effects and those with only transitory effects raises the question of whether alternative approaches might do better.” The findings come as the Fed debates how far it should lift its short-term interest rates as it responds, in part, to a tax-cutting and public spending programme that some policymakers think could deliver a meaningful boost to growth and inflation in the coming months. Policymakers are divided on how far rates will need to be lifted. Some officials, including Lael Brainard of the Board of Governors and Charles Evans of the Federal Reserve Bank of Chicago, have suggested that policy might need to be lifted to more restrictive levels.

Netflix sets its sights on the silver screen Group that made its name in TV streaming is about to unveil the fruits of its foray into film ANNA NICOLAOU

lfonso Cuarón, the acclaimed director of Gravity, arrived in Toronto this week to promote his first film in five years. Roma, an intimate drama set in 1970s Mexico and shot in black-and-white, has been described as a “masterpiece”, winning the grand prize at the Venice film festival and instantly becoming a contender for Academy Awards. But the film has perhaps garnered just as much attention for being distributed by Netflix, which has stormed the autumn festivals in recent weeks as it aims for a standout success in film — a format that has not lent itself as easily to streaming as television. While series such as Stranger Things and Orange Is The New Black made Netflix a singular force in TV, it has yet to repeat that performance with movies. “For the past year, [Netflix] has been the topic of conversation at most meetings,” said the chief executive of a film financing company. “At first there was this glorification . . . that Netflix was saving the business. Then there was backlash. And now we’re in

this period of questioning: what exactly are they doing?” Netflix wants to change that view. A year and a half ago, it hired producer Scott Stuber to develop its film business. This autumn will be the first big test of Mr Stuber’s strategy, as a number of projects under his watch debut in the coming months. The Toronto International Film Festival, which has become an unofficial start to the six-month Oscar’s race, welcomed Mr Cuarón with a lavish red carpet gala, where he dutifully thanked Netflix executives for “bringing this film to the world”. Roma, one of Mr Stuber’s first projects to hit the screens, is set to be shown nine times in Toronto as part of a marketing blitz by Netflix, and observers speculate it could finally yield the company a coveted best picture nomination. The push comes at a crucial time for Netflix, whose years-long stock rally was abruptly halted this summer after the company revealed a rare miss in quarterly subscriber growth— more than $20bn was wiped from its market value minutes after the news broke. However, despite the slowdown, Neftlix gave no indication that it would cut spending this

year; rather, it insists that investing in new content is the key to attracting customers. Analysts agree. “Having great movies that are exclusive to the platform is absolutely critical,” said Rich Greenfield, analyst at BTIG. That said, “it’s really early . . . we haven’t seen any of [Stuber’s] films come out yet”. The company has taken on more than $8.3bn in long-term debt to fund its original content, and expects free cash outflows of as much as $4bn for 2018. Ted Sarandos, chief content officer at Netflix promised investors in July that its films would become as successful as its TV shows, “but it will take another year or so as we get into it”. Netflix’s presence hung heavily over Toronto this week as Roma’s rapturous reception reignited a debate about the future of the movie business. The company brought eight films to Toronto, including Outlaw King, a Scottish war drama that opened the festival — the first time a big festival has given the highest profile slot to any streaming service. It was also very much in evidence at the Venice and Telluride festivals a few weeks ago.

Politics & Policy

BUSINESS DAY

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Friday 14 September 2018

APC will win Osun governorship election - Ajimobi AKINREMI FEYISIPO, Ibadan

yo State Governor, Abiola Ajimobi, has expressed confidence that the candidate of the All Progressives Congress, Gboyega Oyetola, will win the September 22 governorship election in Osun State judging by the exemplary performance of the incumbent administration. The governor said this during the visit of the Assistant Inspector General of Police in charge of Zone 11, Danjuma Ibrahim, to his office, in Ibadan, on Wednesday. Describing the visitor as an intelligent officer, the governor stressed that the leadership of the police in the zone was well grounded and competent enough to be

able to ensure that the election was peaceful. He assured the police authority of the readiness of the state government to assist the zone towards ensuring that the governorship election in Osun State was hugely successful. The governor said, “AIG Danjuma Ibraheem is one of the most intelligent officers I have ever met and I can easily predict that he will get to the peak of his career soon. Your visit is heartwarming. “We are quite sure that the coming Osun election is going to be free and fair and we shall provide necessary support towards this. It is very apparent, though, that APC will win easily because ours is the only party that is on ground and accepted by the people. “We are confident that the APC will win the September

Abiola Ajimobi

Buhari operates obsolote economic policy -Atiku

he former vice president of the country and a presidential aspirant under the platform of Peoples Democratic Party (PDP), Atiku Abubakar, has described the economic policy of president Muhammadu Buhari as archaic which cannot turn around the economy of the nation. Abubakar disclosed this in Lokoja on Thursday while addressing the state party leadership and his political admirers at the party secretariat, stressing that Mohammadu Buhar knows nothing on behaviour of economy, not to talk of stimulating it to life. The PDP frontline Presidential aspirant also stated that the nation’s economy that is under the leadership of President Mohammadu Buhari is closed and totally in a bad shape . He said if given the man-

date to oversee the affairs of the nation, he will open up the economy to attract foreign investors in order to generate incomes and equally usher in employment wind to arrest unemployment situation in the country. “I will diversify the economy, open it up to provide safety for local a n d f o re i g n i n v e s t o r s. President Buhari has killed everything because he doesn’t know how to handle the economy.As far as am concerned, the economic polic y under him is archaic”, he said. While he expressed no reservation about president Buhari’s willingness to handover power if he is defeated in the forthcoming presidential election, adding that Buhari is not a democrat. “Whether he likes it or not, if he wins , he must handover

22 election because of the exemplary performance of the incumbent administration in Osun State. One should have no doubt that the APC will retain Osun State.” Commending the governor for restoring peace and security to the state through the combined efforts of security agencies, the police boss said that the resultant effect could be seen in the socio-economic growth of the state. Ibrahim appealed to the governor to extend the assistance that he had been giving to the police state command in relation to refurbishing of operational vehicles and provision of Armoured Personnel Carriers and other logistic supports to the zonal command. He said, “You already know that policing is not easy,

power to him”, he said. He a l s o p o i nt e d ou t that though the amended electoral Act has not been signed into law by president Buhari, that should not cause uproar anywhere, as he urged the National Assembly to act fast and ensure the use of card reader in the next presidential election to ensure free and fair election. On the suspected lingering political bickering between him and his former boss, president Olusegun Obasanjo, he said there is no serious issue between him and his boss, that people are just magnifying it to suite their interest. Atiku Abubakar equally assured Nigerians of having capacity to turn around the economy of the country that has been in comatose since 2015 to the benefit of all, if he clinches the mandate come 2019.

especially when you consider the logistics that must be put in place to achieve success. The zonal command needs operational vehicles to assist our operation. “On the coming Osun State governorship elections, we can assure you that we have more than enough personnel ready for the assignment. We will do everything humanly possible to ward off intruders that might want to sneak in and wreck havoc on the election day. “We know Osun State to be peaceful, but we do not want to leave anything to chance. So we are soliciting your support to also help in spreading the gospel of peace to the people in Oyo State and to caution antidemocratic elements against coming to Osun State to foment trouble during the election.”

2019 presidential election not for fickle-mindled - Lamido ule Lamido, a People’s Democratic Party (PDP) presidential aspirant on Thursday said the party has the capacity to restore the country to her lost glory in the comity of states. L a m i d o, w h o s p o k e while wooing members of the Edo State chapter of the party in Benin-City, however urged Nigerinas to reject the Muhammadu Buahri-led APC federal government in 2019 general election. “Nigerians have history and heritage to defend the country. PDP is the only party that has the capacity, wherewithal and the commitment to restore her to her past glory”, he said. The former two-time governor of Jigawa state

noted that the APC- led federal government has c o n d i t i o n e d a n d p ro grammed Nigerians to vote for president Muhammadu Buhari with the introduction of direct primary in its presidential primary election. “Let me tell you that APC- led federal government has programmed you to a particular direction with the direct primary. With the direct primary it means both APC and PDP members will come out and vote for him. “Oshiomhole had said that APC has 15.3 million members, that means they are simply conditioned and programmed you even before the election. If they have 15.3 million members in the elections because of their desperation they can increase that

to 26 million votes. You can’t argue because they are professional liars, evil and can do everything”, he said. He remarked that the 2019 presidential election is not for fickle-minded but courageous person that is ready to say no to impunity and anti- electoral laws. He urged the leadership of the party to vote for credibility and compensate those that stood for the party during the period of crisis. In his remark, the state chairman of the party, Dan Orbih, commended him for be steadfast for the course of the party and promised that members would assess all the aspirants based on qualifications and capacity to win the election for the party.

been at the place at that time. He said though the supporters have right to be aggrieved on political issues as there is no perfect system anywhere, the aspirant however decried the attitude of the supporters and said an attack on the governor is an attack on his personality, and he wouldn’t allow any supporter to denigrate the person of the governor. When asked why his name was missing on the consensus list, Afuape said it was a normal thing in politics and that his name would come with another list.

“I wasn’t at the event, it would have been managed better. Though we have issues nevertheless, there is no process that doesn’t have issues, there’s no perfect system in the world. “I am the one they are representing, if I was there, it would have been better managed. Those who were abusing the Governor are abusing me and I can never abuse the leader of the party and the Governor”, he said. Also speaking, the Secretary to the State Government declared that contrary to the report by a section of

the media, Ogun state APC and particularly Abeokuta South Federal Constituency remains strong and indivisible political entity. “At times like this, it is not unusual to have tension and disagreement but we have our unique ways of resolving our differences. We have issues like every other human being and I can assure you they are being resolved. “As a family, we have a unique way of resolving issues and we are in the process of resolving the issues, we are one and we are together”, he added.

IDRIS UMAR MOMOH, Benin

Ogun APC Reps aspirant dissociates self from assault on Amosun ...says he won’t abuse governor RAZAQ AYINLA, Abeokuta

aruf Afuape, House of Representatives aspirant from All Progressives Congress (APC) and Commissioner for Youth and Sport in Ogun State has dissociated himself from attack on Governor Ibikunle Amosun, saying he will neither attack nor abuse governor and party leaders on political issues. Recall that there has been hues and cries in the All Progressives Congress (APC), Ogun state chapter in recent

times over consensus arrangement which produced candidates for governorship, deputy governorship, 26 House of Assembly, nine House of Reps and three for Senate reportedly by Governor Ibikunle Amosun. Supporters of the said aspirant for the House of Reps from Abeokuta South Federal Constituency among other aggrieved aspirants on Tuesday protested against the consensus arrangement and booed Governor Amosun who was said to have unilaterally compiled list of consensus candidacy without

recourse to party’s directive. The purported assault happened on Tuesday at the Presidential lodge, Ibara Housing Estate, Abeokuta, where the party and Governor Amosun announced the names of consensus candidates of APC that will be contesting for 40 different elective positions mentioned earlier. Emerging from a peace meeting with the Secretary to the State Government, Taiwo Adeoluwa and other leaders from Abeokuta South Federal Constituency, Afuape said he would have managed the situation better if he had

BUSINESS DAY

Friday 14 September 2018

Live @ the Stock exchange Prices for Securities Traded as of Thursday 13 September 2018 Company

Symbol

Deals

Current Price

Trades

Volume

PRICES FOR MAIN BOARD SECURITIES (Equities) BANKING ACCESS BANK PLC. 219,852.58 7.60 -5.00 161 3,966,539 UNITED BANK FOR AFRICA PLC 244,525.86 7.15 1.42 148 16,310,894 615,371.28 19.60 -0.51 275 25,863,588 ZENITH BANK PLC 584 46,141,021 OTHER FINANCIAL INSTITUTIONS FBN HOLDINGS PLC 287,162.34 8.00 -1.23 227 7,363,085 227 7,363,085 811 53,504,106 BUILDING MATERIALS DANGOTE CEMENT PLC 3,578,506.56 210.00 - 41 4,925,729 LAFARGE AFRICA PLC. 179,539.96 20.70 -10.00 59 597,564 100 5,523,293 100 5,523,293 EXPLORATION AND PRODUCTION SEPLAT PETROLEUM DEVELOPMENT COMPANY PLC 357,009.32 606.70 - 0 0 0 0 0 0 911 59,027,399 CROP PRODUCTION FTN COCOA PROCESSORS PLC 440.00 0.20 - 0 0 76,217.41 79.90 - 7 32,250 OKOMU OIL PALM PLC. PRESCO PLC 60,000.00 60.00 - 11 343,417 18 375,667 FISHING/HUNTING/TRAPPING ELLAH LAKES PLC. 511.20 4.26 - 1 5 1 5 LIVESTOCK/ANIMAL SPECIALTIES LIVESTOCK FEEDS PLC. 1,800.00 0.60 - 9 803,291 9 803,291 28 1,178,963 DIVERSIFIED INDUSTRIES A.G. LEVENTIS NIGERIA PLC. 1,164.81 0.44 - 4 101,629 225.71 0.58 - 0 0 JOHN HOLT PLC. S C O A NIG. PLC. 2,111.93 3.25 - 4 2,012 45,932.23 1.13 4.63 78 6,613,517 TRANSNATIONAL CORPORATION OF NIGERIA PLC U A C N PLC. 29,389.23 10.20 - 20 225,421 106 6,942,579 106 6,942,579 BUILDING CONSTRUCTION ARBICO PLC. 711.32 4.79 - 0 0 0 0 INFRASTRUCTURE/HEAVY CONSTRUCTION JULIUS BERGER NIG. PLC. 33,000.00 25.00 - 4 14,534 165.00 6.60 - 0 0 ROADS NIG PLC. 4 14,534 REAL ESTATE DEVELOPMENT UACN PROPERTY DEVELOPMENT COMPANY PLC 4,079.48 1.57 - 12 281,164 12 281,164 REAL ESTATE INVESTMENT TRUSTS (REITS) SKYE SHELTER FUND PLC 1,900.00 95.00 - 0 0 UNION HOMES REAL ESTATE INVESTMENT TRUST (REIT) 11,300.89 45.20 - 0 0 24,014.43 9.00 - 1 1,000 UPDC REAL ESTATE INVESTMENT TRUST 1 1,000 17 296,698 AUTOMOBILES/AUTO PARTS DN TYRE & RUBBER PLC 954.53 0.20 - 5 242,000 5 242,000 BEVERAGES--BREWERS/DISTILLERS CHAMPION BREW. PLC. 14,093.09 1.80 - 6 102,000 GOLDEN GUINEA BREW. PLC. 242.22 0.89 - 0 0 GUINNESS NIG PLC 192,753.69 88.00 - 24 42,491 INTERNATIONAL BREWERIES PLC. 275,067.58 32.00 - 5 12,860 NIGERIAN BREW. PLC. 672,539.46 84.10 0.12 82 3,777,866 117 3,935,217 FOOD PRODUCTS DANGOTE FLOUR MILLS PLC 40,000.00 8.00 -4.76 36 636,336 DANGOTE SUGAR REFINERY PLC 166,800.00 13.90 -2.11 31 414,085 FLOUR MILLS NIG. PLC. 81,187.52 19.80 - 56 222,378 HONEYWELL FLOUR MILL PLC 10,071.35 1.27 -8.63 47 2,307,664 MULTI-TREX INTEGRATED FOODS PLC 1,340.10 0.36 - 0 0 N NIG. FLOUR MILLS PLC. 1,158.30 6.50 - 0 0 NASCON ALLIED INDUSTRIES PLC 52,988.77 20.00 - 30 414,602 UNION DICON SALT PLC. 3,676.41 13.45 - 0 0 200 3,995,065 FOOD PRODUCTS--DIVERSIFIED CADBURY NIGERIA PLC. 17,655.10 9.40 - 11 11,340 NESTLE NIGERIA PLC. 1,108,133.44 1,398.00 -5.48 67 331,958 78 343,298 HOUSEHOLD DURABLES NIGERIAN ENAMELWARE PLC. 1,680.31 22.10 - 2 5,020 VITAFOAM NIG PLC. 3,346.01 3.21 - 17 129,654 19 134,674 PERSONAL/HOUSEHOLD PRODUCTS P Z CUSSONS NIGERIA PLC. 53,601.44 13.50 - 25 54,747 UNILEVER NIGERIA PLC. 268,866.25 46.80 - 15 29,883 40 84,630 459 8,734,884 BANKING DIAMOND BANK PLC 27,560.86 1.19 -3.25 36 3,003,360 ECOBANK TRANSNATIONAL INCORPORATED 339,466.70 18.50 - 26 243,238 FIDELITY BANK PLC 45,200.68 1.56 3.31 64 4,185,508 GUARANTY TRUST BANK PLC. 969,757.36 32.95 1.07 188 28,185,308 JAIZ BANK PLC 15,616.05 0.53 - 6 105,943 SKYE BANK PLC 9,299.80 0.67 9.84 120 18,870,751 STERLING BANK PLC. 41,746.11 1.45 - 249 6,502,511 UNION BANK NIG.PLC. 147,059.80 5.05 -0.99 24 355,429 UNITY BANK PLC 9,935.94 0.85 8.97 14 660,084 WEMA BANK PLC. 23,916.17 0.62 3.33 11 613,475 738 62,725,607 INSURANCE CARRIERS, BROKERS AND SERVICES AFRICAN ALLIANCE INSURANCE PLC 4,117.00 0.20 - 0 0 AIICO INSURANCE PLC. 5,544.16 0.80 -4.76 54 2,488,545 AXAMANSARD INSURANCE PLC 24,150.00 2.30 - 9 137,000 CONSOLIDATED HALLMARK INSURANCE PLC 2,240.00 0.32 - 3 5,758 CONTINENTAL REINSURANCE PLC 14,833.02 1.43 - 0 0 CORNERSTONE INSURANCE PLC 3,535.08 0.24 -4.00 5 156,255 GOLDLINK INSURANCE PLC 2,411.47 0.53 - 0 0 GREAT NIGERIAN INSURANCE PLC 1,913.74 0.50 - 0 0 GUINEA INSURANCE PLC. 1,964.80 0.32 - 0 0 INTERNATIONAL ENERGY INSURANCE PLC 487.95 0.38 - 0 0 LASACO ASSURANCE PLC. 2,270.26 0.31 3.33 12 3,208,077 LAW UNION AND ROCK INS. PLC. 2,577.80 0.60 - 7 600,323 LINKAGE ASSURANCE PLC 5,200.00 0.65 -7.14 16 447,891 MUTUAL BENEFITS ASSURANCE PLC. 2,160.00 0.27 - 10 387,267 NEM INSURANCE PLC 15,735.90 2.98 -0.67 28 3,240,979 NIGER INSURANCE PLC 2,554.03 0.33 - 4 304,889 PRESTIGE ASSURANCE PLC 1,832.36 0.48 - 7 130,220 REGENCY ASSURANCE PLC 1,467.13 0.22 -4.35 5 1,063,800 SOVEREIGN TRUST INSURANCE PLC 1,918.39 0.23 -4.17 9 1,470,000 STACO INSURANCE PLC 4,483.72 0.48 - 0 0 STANDARD ALLIANCE INSURANCE PLC. 3,227.76 0.25 -7.41 4 606,000 SUNU ASSURANCES NIGERIA PLC. 2,800.00 0.20 - 8 2,000,110 UNIC DIVERSIFIED HOLDINGS PLC. 516.46 0.20 - 0 0 UNIVERSAL INSURANCE PLC 4,320.00 0.27 - 3 47,501 VERITAS KAPITAL ASSURANCE PLC 3,882.67 0.28 - 4 3,662 WAPIC INSURANCE PLC 4,951.61 0.37 -7.50 35 1,340,565 223 17,638,842 MICRO-FINANCE BANKS FORTIS MICROFINANCE BANK PLC 11,799.67 2.58 - 0 0 NPF MICROFINANCE BANK PLC 3,407.09 1.49 -9.70 6 578,000

Company

Symbol

Deals

Current Price

Trades

Volume

6 578,000 MORTGAGE CARRIERS, BROKERS AND SERVICES ABBEY MORTGAGE BANK PLC 4,914.00 1.17 - 3 90 ASO SAVINGS AND LOANS PLC 7,370.87 0.50 - 0 0 5,922.05 1.42 - 0 0 INFINITY TRUST MORTGAGE BANK PLC RESORT SAVINGS & LOANS PLC 5,664.87 0.50 - 0 0 UNION HOMES SAVINGS AND LOANS PLC. 2,949.22 3.02 - 0 0 3 90 OTHER FINANCIAL INSTITUTIONS AFRICA PRUDENTIAL PLC 7,400.00 3.70 - 37 396,477 CUSTODIAN INVESTMENT PLC 32,350.25 5.50 - 10 43,904 DEAP CAPITAL MANAGEMENT & TRUST PLC 660.00 0.44 - 0 0 31,684.34 1.60 -4.37 30 2,635,848 FCMB GROUP PLC. NIGERIA ENERYGY SECTOR FUND 411.91 552.20 - 0 0 1,183.44 0.23 -4.17 10 558,270 ROYAL EXCHANGE PLC. 414,660.65 41.00 - 47 547,303 STANBIC IBTC HOLDINGS PLC UNITED CAPITAL PLC 16,800.00 2.80 - 58 1,043,385 3,312.39 103.20 - 0 0 VALUEALLIANCE VALUE FUND 192 5,225,187 1,162 86,167,726 HEALTHCARE PROVIDERS EKOCORP PLC. 1,680.29 3.37 - 0 0 UNION DIAGNOSTIC & CLINICAL SERVICES PLC 1,065.94 0.30 - 3 197,272 3 197,272 MEDICAL SUPPLIES MORISON INDUSTRIES PLC. 544.04 0.55 - 1 20 1 20 PHARMACEUTICALS EVANS MEDICAL PLC. 366.17 0.50 - 0 0 FIDSON HEALTHCARE PLC 9,000.00 6.00 - 1 10,000 GLAXO SMITHKLINE CONSUMER NIG. PLC. 17,101.03 14.30 - 17 68,475 2,244.20 2.29 -0.43 14 2,063,871 MAY & BAKER NIGERIA PLC. NEIMETH INTERNATIONAL PHARMACEUTICALS PLC 1,070.43 0.62 -8.82 7 435,300 556.71 3.62 - 0 0 NIGERIA-GERMAN CHEMICALS PLC. PHARMA-DEKO PLC. 411.96 1.90 - 0 0 39 2,577,646 43 2,774,938 COMPUTER BASED SYSTEMS COURTEVILLE BUSINESS SOLUTIONS PLC 710.40 0.20 - 2 20,000 2 20,000 COMPUTERS AND PERIPHERALS OMATEK VENTURES PLC 1,470.89 0.50 - 0 0 0 0 IT SERVICES CWG PLC 6,413.06 2.54 - 0 0 680.40 6.30 - 0 0 NCR (NIGERIA) PLC. TRIPPLE GEE AND COMPANY PLC. 381.11 0.77 - 1 2,139 1 2,139 PROCESSING SYSTEMS CHAMS PLC 1,314.90 0.28 - 1 2,000 16,590.00 3.95 - 0 0 E-TRANZACT INTERNATIONAL PLC 1 2,000 4 24,139 BUILDING MATERIALS BERGER PAINTS PLC 1,898.34 6.55 - 4 49,156 CAP PLC 19,845.00 28.35 - 10 26,048 31,542.61 25.10 -9.87 23 931,140 CEMENT CO. OF NORTH.NIG. PLC FIRST ALUMINIUM NIGERIA PLC 633.11 0.30 -9.09 5 363,954 MEYER PLC. 361.24 0.68 - 0 0 2,364.38 2.98 - 0 0 PORTLAND PAINTS & PRODUCTS NIGERIA PLC PREMIER PAINTS PLC. 1,279.20 10.40 - 0 0 42 1,370,298 ELECTRONIC AND ELECTRICAL PRODUCTS AUSTIN LAZ & COMPANY PLC 2,256.91 2.09 - 0 0 CUTIX PLC. 3,522.64 4.00 - 12 81,571 12 81,571 PACKAGING/CONTAINERS BETA GLASS PLC. 38,997.82 78.00 - 1 20,000 GREIF NIGERIA PLC 388.02 9.10 - 0 0 1 20,000 AGRO-ALLIED & CHEMICALS NOTORE CHEMICAL IND PLC 100,754.14 62.50 - 0 0 0 0 55 1,471,869 CHEMICALS B.O.C. GASES PLC. 1,752.39 4.21 - 1 1,306 1 1,306 METALS ALUMINIUM EXTRUSION IND. PLC. 1,803.64 8.20 - 1 1,000 1 1,000 MINING SERVICES MULTIVERSE MINING AND EXPLORATION PLC 852.39 0.20 - 0 0 0 0 PAPER/FOREST PRODUCTS THOMAS WYATT NIG. PLC. 55.00 0.25 - 0 0 0 0 2 2,306 ENERGY EQUIPMENT AND SERVICES JAPAUL OIL & MARITIME SERVICES PLC 1,377.79 0.22 -4.35 21 3,195,497 21 3,195,497 INTEGRATED OIL AND GAS SERVICES OANDO PLC 62,157.06 5.00 1.00 82 1,654,159 82 1,654,159 PETROLEUM AND PETROLEUM PRODUCTS DISTRIBUTORS 11 PLC 64,907.15 180.00 - 16 127,004 15,197.55 21.90 -9.88 5 60,030 CONOIL PLC ETERNA PLC. 7,890.08 6.05 - 18 132,584 FORTE OIL PLC. 22,793.42 17.50 -7.41 45 359,882 MRS OIL NIGERIA PLC. 8,701.65 28.55 - 3 1,105 TOTAL NIGERIA PLC. 64,407.29 189.70 - 25 45,822 112 726,427 215 5,576,083 ADVERTISING AFROMEDIA PLC 2,219.52 0.50 - 0 0 0 0 AIRLINES MEDVIEW AIRLINE PLC 18,818.75 1.93 - 0 0 0 0 AUTOMOBILE/AUTO PART RETAILERS R T BRISCOE PLC. 541.12 0.46 - 0 0 0 0 COURIER/FREIGHT/DELIVERY RED STAR EXPRESS PLC 3,212.76 5.45 - 4 3,355 TRANS-NATIONWIDE EXPRESS PLC. 365.70 0.78 - 1 5,062 5 8,417 HOSPITALITY TANTALIZERS PLC 674.44 0.21 - 0 0 0 0 HOTELS/LODGING CAPITAL HOTEL PLC 4,801.22 3.10 - 1 100 IKEJA HOTEL PLC 4,718.87 2.27 - 5 1,480 TOURIST COMPANY OF NIGERIA PLC. 7,862.53 3.50 - 0 0 TRANSCORP HOTELS PLC 51,302.73 6.75 - 1 50 7 1,630 MEDIA/ENTERTAINMENT DAAR COMMUNICATIONS PLC 5,280.00 0.44 - 1 2,500 1 2,500 PRINTING/PUBLISHING ACADEMY PRESS PLC. 302.40 0.50 - 0 0 LEARN AFRICA PLC 848.60 1.10 - 7 34,936 STUDIO PRESS (NIG) PLC. 1,183.82 1.99 - 0 0

BUSINESS DAY

Friday 14 September 2018

Live @ The Exchanges Top Gainers/Losers as at Thursday 13 September 2018 GAINERS Company

Market Statistics as at Thursday 13 September 2018

LOSERS Opening

Closing

Change

Opening

Closing

Change

N32.6

N33

0.4

NESTLE

N1479

N1352.5

-126.5

N84

N84.1

0.1

CCNN

N27.85

N25.1

-2.75

TRANSCORP

N1.08

N1.16

0.08

CONOIL

N24.3

N21.9

-2.4

UNITYBNK

N0.78

N0.85

0.07

WAPCO

N23

N20.85

-2.15

ZENITHBANK

N19.7

N19.75

0.05

N18.9

N17.5

-1.4

GUARANTY NB

Company

ASI (Points)

31,950.95

DEALS (Numbers) VOLUME (Numbers) VALUE (N billion) MARKET CAP (N Trn

2,394.00 133,783,610.00 3.135 11.664

New report shows Commonwealth Diaspora favouring real estate investment Stories by Iheanyi Nwachukwu

he sector which garners the most interest in investment overall from diaspora members interviewed in a recent Diaspora Investor Survey by the Commonwealth is property and real estate; though a significant proportion of respondents also say that they would be interested in education and health. Over 80 percent of business owners and over 60 percent of professionals, expressed interest in saving or investing in the Commonwealth country with which they have a connection. The Survey, undertaken between October 2017 and March 2018, focused on diaspora communities in the UK from six Commonwealth countries –Bangladesh, Fiji, Ghana, Jamaica, Kenya, and Nigeria. In the survey report, “Understanding the Investment Potential of the Commonwealth Diaspora: Results of the Commonwealth Diaspora Investor Survey” presented recently in London, only 34percent of Nigerians

L-R: Heidi Tavakoli, Economic Adviser, Commonwealth; Resina Katafono, Economic Adviser, Commonwealth; Gbite Oduneye, CEO, A&O Acquisitions on behalf of Nigerian High Commission London; and Heather Cover-Kus, Research Officer, Commonwealth at the presentation of the survey report “Understanding the Investment Potential of the Nigerian Diaspora” held recently at the Commonwealth Headquarters in London .

expressed an interest in investing in the capital city, Abuja. Overwhelmingly, diaspora members who are interested in investing are most interested in investing in their home town or city, with a far greater proportion saying this than expressing

interest in investing a capital city or particular region. At the presentation of the survey report, Gbite Oduneye, CEO, A&O Acquisitions said on behalf of Nigerian High Commission London that, “It was brilliant working with the commonwealth to ensure we have a clear understanding

of the investing potential of the Nigerian Diaspora.” “The report will help Government and the private sector know how best to plan to increase the investment. In 2017 the World Bank put the figure at $22billion, only Lagos and Rivers State contributed

more to Nigerian GDP, so the more we understand their wants and needs the better their contribution to the development of our great Nation”, Oduneye noted. The flagship Commonwealth Diaspora Investor Survey aims to generate a robust, evidence-based understanding of the potential to increase diaspora investments and savings in Commonwealth countries. Little is known about diaspora interest in savings and investments. The overwhelming preference among diaspora members interested in investing would be to reinvest financial returns in the country with which they have a connection, rather than bringing returns back to the UK. The report noted that the levels of engagement among the diaspora community interviewed are high, with the vast majority of those interviewed as part of the survey saying that they have sent support to the country with which they have a connection in the last year. Only a very small minority of those interviewed say that they sent no type of support at all

in the last year. Nigeria and other five Commonwealth countries were selected because they have significant diaspora populations in the UK and their governments are actively seeking to engage their diaspora, the countries span the Commonwealth regions, and represent both large and small states. “The findings of this Report set the basis for further work by the Secretariat for designing policies and relevant toolkits that will assist Commonwealth countries in capitalising on diaspora finance. We also plan to continue working with the pilot countries to devise tailored solutions, based on the country findings of the Survey and drawing on the experience of Commonwealth members that have successful diaspora programmes”, Prajapati Trivedi, Director, Economic, Youth and Sustainable Development, Commonwealth Secretariat. The Commonwealth Secretariat commissioned this Survey to provide robust evidence for stakeholders aiming to leverage diaspora capital.

Stock investors wealth depletes further by N98bn …only 9 stocks gain amid 26 decliners

preceding day close of 32,292.79 points while Market Capitalisation closed at N11.691 trillion against preceding day close of N11.789 trillion. The share price of Nestle Nigeria Plc declined further, from N1479 to N1398, down by N81 or 5.48percent; Cement Company of Northern Nigeria Plc declined from N27.85 to N25.1, down by N2.75 or 9.87percent. Conoil Plc was down, from N24.3 to N21.9, losing N2.4 or 9.88percent. Lafarge Africa Plc also dipped from N23 to N20.7, down by N2.3 or 10percent; followed by

Forte Oil Plc which lost N1.4 or 7.41percent, from N18.9 to N17.5. GTBank Plc stock price increased from N32.6 to N32.95, up by 35kobo or 1.07percent. Nigerian Breweries Plc advanced from N84 to N84.1, up by 10kobo or 0.12percent; UBA Plc rallied from N7.05 to N7.15, up by 10kobo or 1.42percent; Unity Bank Plc stock advanced from 78kobo to 85kobo, up 7kobo or 8.97percent; while Skye Bank Plc increased from 61kobo to 67kobo, up by 6kobo or 9.84percent. The volume of stocks traded decreased by

29.71percent, from 246.9million to 173.5million, while the total value of stocks traded decreased by 46.44percent, from N6.93billion to N3.71billion in 3,082 de als. GTBank Plc, Zenith Bank Plc, Skye Bank Plc, UBA Plc, and FBN Holdings Plc were actively traded stocks on Thursday September 13, 2018. The Financial Services sector led the activity chart with 139.67 million shares exchanged for N1.73billion; followed by Consumer Goods with 8.73million shares traded for N811 million.

Friday 14 September 2018

BUSINESS DAY

C002D5556

Friday 14 September 2018

BUSINESS SOUTH-SOUTH

COMPLETE COVERAGE OF SOUTH-SOUTH / SOUTH-EAST

Soot: Rivers fishermen decry economic decline as CSOs petition UN, others EFEGADIRIM MADU & INNOCENT ETENG, Port Harcourt

ozens of fishermen in Rivers State, Nigeria’s major littoral zone have decried falling fish catch in recent months, and therefore, economic decline, due to what they attributed to presence of all sorts of effluents emptied into the waters. Major among the dangerous chemicals include soot (also called black carbon) or particulate matter, which have been pouring over the state’s landscape since about two years. The soot (black carbon), a combination of tiny solid and liquid gaseous particles trapped in the air due to incomplete combustion, is said to primarily come from legal and illegal oil refining activities especially in the state, and other parts of the oil-rich Niger Delta region. The fishermen, who were part of a group of civil society organisations which gathered in Port Harcourt to sound the bad effect of soot, and their petitions sent to some international organizations and countries, said their personal and family economies have taken a backward slide, due to excessive pollution of Rivers State waters. They lamented why about two

years since the soot conundrum came to the fore in the state, both the Federal Government and Rivers State were yet to fine a lasting solution to issues of pollution. primarily attributed to oil spillage from both legal and illegal sources. One of the fishermen, said: “For now, nobody will tell you in this axis, from Okrika to Bonny, that there is fish. There is no fish. No more aquatic life. The fishermen are finding things difficult. Our children can no longer be trained in school. There is no more fish. Before we get fish, I and my uncle would have to go to as far as Oron (in Akwa Ibom State) to buy fish and sell here in Port Harcourt.” He blamed the pollution on the current spate of illegal refining, which he said the government can control by putting certain measures in place. “The current condition of the waters is unbearable. There is no aquatic life anymore. The crude has taken over our rivers. The crops are dying. Fishes are dying, the crayfish are dying, the crabs are dying. There is no way we can manoeuvre in the rivers,” he said. Meanwhile, some civil society organisations (CSOs) in Rivers State have petitioned the United Nations

Bayelsa government, NGO to partner to protect economic trees SAMUEL ESE, Yenagoa

n a move aimed at protecting economic trees from over exploitation, Bayelsa State Government said it would partner with a non-governmental organisation (NGO), Ondewari Health, Education and Environment Project (OHEEP). Ebipatei Apaingolo, Commissioner for Environment who stated this when an OHEEP delegation led by Alagoa Morris, Project Director, paid him an advocacy visit in his office in Yenagoa commended the NGO for the initiative. Based in Southern Ijaw Local Government Area of the state, OHEEP is deeply involved in efforts to conserve forest resource from exploitation in order to help salvage local economies in the Niger Delta region thereby creating alternative income sources for individuals and communities. Apaingolo urged communities to resist wanton logging of economic trees which are also veritable means of living while stressing that his ministry would assist the NGO to achieve its goals. In his words: “Let me assure you that this ministry is going to assist you in any way we can to ensure that you stand as a role model to other communities. “There is need for advocacy and campaign by groups like OHEEP at the local level, and this is very important because when the local people hear your message, they will believe you. “So, I appreciate you for com-

ing up with this advocacy. This ministry is going to collaborate with you; the ministry will give you all the support we can to ensure that this group achieves its aims and objectives.” Earlier, Alagoa Morris, OHEEP Project Director expressed sadness over the continued depletion of forest resources by unscrupulous persons while warning of imminent disappearance of such resources. Morris who noted that traditional economic activities include fishing, farming, hunting, weaving, logging and carving stated: “It is true that we tap wine from local raphia palm and also harvest the fruits of some trees, including palm trees, bush bean and (bush) mango. While we may hardly point at any plant within our environment that is not useful in anyway, let us consider the trees in our forest/bush, especially the ogbono (bush mango) and bush bean trees. “The crux of the matter here now is how these trees are being systematically decimated by our own people and the fear that, if we do not take decision and act in goal-directed manner to reverse the trend, the negative impacts on our means of livelihood and local economy may lead to other social and environmental problems.” Morris thanked Apaingolo for the partnership and efforts to give legislative backing to such related matters while appealing that the issues raised by OHEEP should also be part of the bill.

(UN), United State (the U.S), United Kingdom (UK) and Catholic pontiff, Pope Francis, seeking their urgent intervention over the soot conundrum (particulate matter) that has ravaged the state, especially Port Harcourt the capital for upwards of two years. Facilitated by the #StopTheSoot campaign, a group canvassing for an end to the downpour, the CSOs involved were: Health of Mother Earth Foundation (HOMEF), Stakeholder Democracy Network (SDN), Trust Africa, We the People, Nigeria Medical Association (NMA), National Coalition of Gas Flaring and Oil Spills in the Niger Delta (NACGOND), National Association of Seadogs (NAS), Society for Women and Youth Affairs (SWAYA), Environmental Rights Action (ERA), among others. According to Eugene Abels, cocoordinator of #StopTheSoot, their petitions are meant to attract the attention of the petitioned organizations and countries to prevail on the Nigerian Federal Government to respect environmental charters and treaties it is a party to, and end the downpour of the black carbon. “We have left soot as just a matter. We want the UN to respond to what we have raised,” Abels said. However, the petitions being

referred to were officially sent in August. Abels said more citizens signing the online-based petitions, is to help mount more pressure for the petitioned organizations and countries to see the need for rapid response, especially as the petitions were backed with results of scientific studies showing what citizens are exposed to. A recent study by consultant paediatrician at the University of Port Harcourt Teaching Hospital (UPTH), Agnes Fienemika shows that between 2015 and 2017, respiratory infection among under-five children in the state rose to near 50%. The particles are as tiny as between 1.0 and 2.5 microns, they can easily slip into the lungs through inhalation, resulting to such ailments as cancer, asthma, cardiovascular (heart) diseases, respiratory infections, bronchitis, amongt others. In China, a 2014 study found soot to be responsible for a sharp uptick in birth defect and low child weight. Globally, the World Health Organization estimates that outdoor pollution, to which soot is a part of, is responsible for the death of 4.5 million people annually. This suggests that Rivers State’s five million population is facing an emergency

situation that should be addressed without delay. Abels said it was because governments at state and federal levels have failed to respond satisfactorily to the deadly haze that the group and CSOs are upping their game to the United Nations. “By September (2016), we brought (the soot) problem to the notice of the state government and they promised to do certain things and by April this year, we felt dissatisfied with what has been done, so we came out with a protest and a march to intimate the world of what has been going on here in Rivers State. We then collaborated with government agencies and informational groups like the Nigerian Medical Association. “By May, we issued a press statement that we were dissatisfied and that there was no action plan. By August, we did a petition to the Secretary General of the United Nations as the leader of the World Health Organization and to Pope Francis and world leaders, European parliaments and all climate groups,” Abels said. He said their petitions were attached with four scientific reports that clearly authenticated and stated the content of the particulate matter which people breathe in the state.

Ajumogobia calls for diversification of Nigeria’s oil industry to maximise profit DAVID EJIOHUO, Port Harcourt

he need for the Federal Government to diversify the oil industry in Nigeria, to gain more from our crude oil production has been stressed. A one-time minister of Petroleum Resources, Odien Ajumogobia, speaking at the Port Harcourt International Airport, Omagwa, said, it was the high time the nation takes the diversification project of the oil and gas industry seriously to create more wealth and employment from the crude oil we produce and export. He explained that Nigeria was just an oil producing and exporting nation, but not in the oil industry business. “Nigeria as at today is just involved in the oil production and exporting business, but not in the oil and gas industry, because it has refused to get involved in the pro-

Odien Ajumogobia cessing of the crude oil it produces.” According to him, the crude oil in itself is not useful to anybody until it is processed, and the valuables are got from it. “Nigeria today, still export our crude oil with over one hundred

derivatives or valuables in them, and import just the petrol, diesel, kerosene and aviation fuel; and forfeit or dash out the remaining derivative to the nations we export our oil for nothing,” said Ajumogobia. He said one of the good things in Nigeria’s crude oil is its low sulphur content, which he said is in high demand all over the world; lamenting that “we dash them out because we do not process our crude.” Diversification, he noted, takes a long time and expensive, but very profitable in terms of revenue generation and provision of the muchneeded employment opportunities in the nation. “No matter what it takes, it is the high time Nigeria gets involved in the diversification of her economy, and the oil industry in particular. I have always advocated for this, and it is my stand always, even now,” he said.

Rivers State government, Dbanj to create opportunities for Rivers musicians IGNATIUS CHUKWU

ivers State Governor, Nyesom Ezenwo Wike has declared that the State Government will work with ace musician, Oladapo Daniel Oyebanjo also called Dbanj to create opportunities for young musicians in the state. Speaking during a condolence visit by Dbanj at the Government House, Port Harcourt on Monday, Governor Wike said that part of the problems that the musicians operating in the state have, is the lack of opportunity to shine at the international stage. Dbanj was accompanied on the visit by Port Harcourt Based International Music Star, Duncan Mighty.

He said that the State Government is working with different international musicians and producers to resolve the challenge of opportunities. “We as a government will not fail to partner with you in which ever form that will help to empower the youths in the state. “Part of the problems we have in this part of the world is the opportunities that our youths lack. Our youths don’t have the opportunities to showcase their potentials”, he said. He commended Dbanj for contributing his own quota to the growth of the society by ensuring that youths are productive. “Let me use this opportunity to thank you for what you are doing to

empower the youths. So many have had the opportunity you have, but may not have used it to empower the youths. “What you are doing is commendable and I urge you to continue “, Governor Wike said. The governor noted that the State Government has developed one of the best cultural centres in the country, pointing out that the State Government will want to collaborate with Dbanj for a bi-monthly hosting of musical shows at the facility. On the death of the Late AttorneyGeneral of Rivers State, Hon Emmanuel Aguma (SAN), Governor Wike thanked Dbanj for identifying with the state at the moment of grief.

BUSINESS DAY

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NEWS YOU CAN TRUST I FRIDAY 14 SEPTEMBER 2018

Opinion The rule of law and the rule of herdsmen

uring his infamous address to the 58th Annual Conference of the Nigerian Bar Association (NBA) in Abuja recently, President Muhammadu Buhari declared that “the national interest is superior to the rule of law”. He made the remark on Sunday 26 August while flagging off the biggest gathering of the high judicature and the legions of legal luminaries, judges and lawyers. The President cited a ruling of the Supreme Court, which had argued that “where national security and the public interest are threatened or there is a likelihood of being threatened, the individual rights of those allegedly responsible must take second place in favour of the greater good of the society”. Although a non-lawyer myself, I had the honour of being invited to address the Business Law Session at the conference. I have had an abiding interest in the interface between economics, finance, law and regulation and in jurisprudence and philosophy of law in general. I thoroughly enjoyed the disquisitions with those learned men and women of the bar. It was great fun! Predictably, the infamous obiter generated a lot of controversy. The learned judges

were stupefied. Radical lawyers were angered. At the end of their annual conference, the NBA were compelled to issue a communiqué reasserting the supremacy of the rule of law as the foundation of a free society. They also pointed out that national security concerns must be managed within the ambit of the rule of law. They frowned at the heresy that national security could ever be considered superior to the rule of law. In the same vein they condemned the ugly development whereby authorities are increasingly deciding which court orders to obey and which to overlook, observing that the “court has exclusive duty under a democratic dispensation to interpret the constitution and other laws, and government and the citizenry must comply with court orders at all times until set aside.” The NBA also condemned the increasing use of Executive Orders; especially in blatant disregard of cases that are sub-judice. Leading the attack is none other than the newly elected president of the NBA himself, Paul Usoro SAN. At a dinner recently organised in his honour by President Buhari’s Senior Special Assistant on National Assembly Matters, Senator Ita Enang, Usoro declared: “What I per-

sonally believe is that there must have been a mix-up in the President’s speech. The President must have intended to talk about fundamental rights and fundamental freedom of the citizens. That is the position that the constitution recognises….in circumstances of emergency national security, the constitution acknowledges that the individual rights will give way to the national security emergency. But the rule of

‘

... it is our deviation from the rule of law as a nation that has created and incubated the serial problems of corruption, insecurity, injustice and impunity that have manifested and crystallised as we all watch, often helplessly”

law is totally different from fundamental rights.” Prominent Abuja-based lawyer Mike Ozekhome has condemned Buhari’s comment as a gross error in law as well as fact: “He is dead wrong. Rule of law predominates over national interest. Without rule of law, there can be no nation state. Without nation state, there can be no national interest…Rule of law is father of national interest. As proposed by Prof

HumanAngle FEMI OLUGBILE Physician, psycho-profiler and essayist

atching the meltdown of the great Serena Williams on the court at the finals of the US Open Tennis tournament the other night almost brought tears to the eyes. You could see it coming like a horror movie playing out in slow motion. Serena was already the greatest women’s tennis player of the age by far. She had recently taken time out from her sport to have a baby. After a difficult childbirth, she was only now beginning to find her way back to competitive form. In perspective, she was on the home stretch, going for glory, mostly. She was rich, and she had already won virtually all the honours available to be won. She was running against herself, pushing herself to see how far and how long she could go. Technically she was about to supplant Margaret Court as the woman with the

A.V. Dicey, it means equality before the law by all persons, observance of all laws by persons and authorities and of course, obedience to court orders made by competent courts of law.” A legal practitioner, EbunOlu Adegboruwa, argues that “national security” is a nebulous and amorphous concept that panders to executive discretion: “On the other hand, the rule of law is defined, basic, predictable and even

subject to review; it helps to predict and govern human conduct…To postulate that national security should override rule of law consideration may unwittingly portray one as harbouring dictatorial intentions, for preferring national security as priority for governance. It is a dangerous proposition as we approach 2019.” Nobel laureate Wole Soyinka took umbrage with the President’s “pernicious

at full stretch. She was putting ever ything she had, all the skill and spirit of all her years, into the effort to stare down her younger self, to overawe and overpower her. Naomi Osaka would be a champion someday. But it did not have to be today, surely.

Serena: The day the Sphinx melted highest number of ‘Grand Slam’ victories in history. Majority of the people in the stands were there to cheer her on, and to watch history unfold. History would unfold, but not the history that had been anticipated. Serena’s opponent was young, dark, athletic, and powerful. In many ways she looked and played as the young Serena used to look and play, many years ago. The match was going badly for Serena. She had lost the first set, beaten emphatically with the sort of power and accuracy with which she herself used to run other opponents off the court. In the second set, she had begun a fightback. First, she surged ahead. But her young foe had smelled blood and was not going to lie down and roll over just because she

doctrine” as an ominous sign that he is prepared to sacrifice the rights and freedoms of the Nigerian people for his own political survival: “Here we go again! At his first coming, it was ‘I intend to tamper with freedom of the press’ and Buhari did proceed to suit action to the words, sending two journalists Irabor and Thompson to prison as a reward for their professional integrity. Now, a vague, vaporous, but commodious concept dubbed ‘national interest’ is being trotted out as alibi for flouting the decisions of the Nigerian judiciary.” In a rhetorical question that was pregnant with irony, Soyinka wondered if President Buhari’s incarceration in 1985 by military President Ibrahim Babangida could also be deemed to have been “in the national interest”. Soyinka believes that Buhari’s remarks must be interpreted as a sign of bad times to come: “The history of law, even where uncodified, is as old as humanity. Numerous rulers have tried again and again to annul that institution. Sometimes, they appear to succeed, but in the end, they pay heavy forfeit. So does society. The rule of law, however, outlasts all subverters, however seemingly powerful….We know, historically, where it will all end.”

struggle up the slope. She had broken many walls, shattered many barriers. On this same court where people were applauding her now and urging her on, she had been booed for being black. On several courts all across the world, umpires and officials and crowds had conspired to frustrate her and her sister Venus as they struggled to reach the top of the game.

‘

Serena will be back, surely. Almost inevitably she will get past the Margaret Court landmark and be acknowledged as the greatest ever

was on the court with the biggest name in women’s tennis. She began to claw back the points. Serena at this point was

Today was supposed to be for her – Serena. She would match Margaret Court, and go on to surpass her. All her life had been a

Today was supposed to be a culmination, a coronation. All these would be going through her mind as she fought with every sinew to turn the game around. But the girl across the court had her own history to make. She was not going to knuckle under. Everyone watching was beginning to get the weary, almost sickening sense

THE NEW WEALTH OF NATIONS

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

A civil-society activist and Executive Director of Citizens’ Advocacy for Social & Economic Rights (CASER), Frank Tietie, expressed disappointment with the president’s speech. He maintains that even in war, the rule of law prevails. “President Buhari made the assertion on the derogation of the rule of law in a large gathering of lawyers. The influential lawyers present at the occasion did not seize the opportunity to correct the President by stating to him that law, esContinues on page 35

of inevitability that it was not going to be Serena’s day today. And then disaster struck. The last, little straw that broke the camel’s back. The umpire made a ruling that Serena’s coach, from the stands, had made a gesture that meant he was coaching her. Coaching on the court was illegal. He docked her a point. You could see the smoke of anger begin to rise out of Serena’s ears. She walked to the umpire and hotly denied she had been coached by anyone. She – an old warrior, knew more than anyone that the call was not going to be reversed. But she went on and on, arguing, getting more and more worked up. She went back to her line, played a few points. The fuse was burning, and everyone could see the explosion was near. With every moment that passed, even when she played a winner-shot, the tennis was ebbing away, and the fire was burning her soul. An atavistic rage was gathering, and it was going to burn the last vestige of hope of becoming the greatest on this day. She struggled to rein it in. And then she succumbed. Continues on page 35

Published by BusinessDAY Media Ltd., The Brook, 6 Point Road, GRA, Apapa, Lagos. Ghana Office: Business Day Ghana Ltd; ABC Junction, near Guinness Ghana Limited, Achimota – Accra, Ghana. Tel: +233243226596: email: mail@businessdayonline.com Advert Hotline: 08034743892. Subscriptions 01-2950687, 07045792677. Newsroom: 08169609331 Editor: Anthony Osae-Brown. All correspondence to BusinessDAY Media Ltd., Box 1002, Festac Lagos. ISSN 1595 - 8590.

WOMENâ&#x20AC;&#x2122;S HUB Friday 14 September 2018

UJU UDOKA

The lady painter is at your service

BUSINESS DAY

UDOKA UJU

2 BUSINESS DAY

EDITOR’S NOTE

elcome to another Edition of Women’s Hub. Our cover story and Leading Woman is Udoka Uju, who left a 9-5 job to embrace being a Painter. INEC has a piece of advice for female aspirants and Desmond shares this with us in details. We share with you six places where ladies can hang out on the island. Heartbreaks always leave scars. Nike Folagbade, a relationship expert, and Author of How I Got The Ring shares with Women’s Hub on how to have a painless heartbreak. Find out what that is all about. Find out 6 Secrets Revealed to Manage Your Short Natural Hair . These and more we bring to you in this edition. Enjoy!

Leading Woman

Friday 14 September 2018

What are the challenges in your line of business? Every business comes with challenges, and sometimes they never end we just have to find a way of managing and controlling it. Transportation sometimes is a challenge for me especially when I have a big project to execute in a far distance. Also, building the right team in some states is challenging because you have to be careful the kind of people you bring in on your team. But gradually, I am finding a way out of this and taking every challenge one at a time. What is it about painting that thrills you? Paint is the easiest and the most economical way to transform a home and life. For me, it’s not just a business; I see it as a means to impact the lives of many people. I always get excited when I am about to start a project because I know that at the end of it, I will be making someone’s home or office really beautiful and clean. And for me, it’s a great deal to be part of that transformation.

She’s vibrant, focused and entrepreneurial The lady painter is at your service

How do you determine what colour to use for a project? Using the right colour is important as it affects us differently and psychologically. Before we start a job, I or someone from my team always interviews our client. We enquire on what the spaces will be used for, we ask about our client’s furniture collection and also client’s colour preference. These questions help us guide our client in making a decision on the right colours to use on their walls. Also some clients already know what colours they want so we just go with it too. Can anyone paint? Anyone really can paint but not everyone can paint professionally. Our country is in the tropics, the climate here is damp and very humid. As a professional Painter, we know the right paint to use, what to do on the walls before we use it and how to use the paints. A professional Painter will advise you on how to treat your walls before you paint. Sometimes, I have clients that want to be part of the job just for the fun of it, so we let them paint with us and after we are done we tell them how to maintain their walls too so the painting can last. Advice for unemployed youths I know it can be frustrating being unemployed, but I would advise that while you wait for that dream job, you should find a skill. Learn it and use it to make money. You are responsible for yourself and the choices you make. If you want money, you need to have something valuable to exchange it for. There is always a market for value.

KEMI AJUMOBI

doka Uju is a graduate of University of Port Harcourt where she bagged a degree in Economics. Udoka Uju resigned from her job at one of Nigeria’s top bank to focus on making homes, offices and schools look beautiful with paint. Before she joined the bank in 2014, she worked in a real estate firm (full-time) and at the same time was running her interior design company as a part-time job. From being an Interior Designer, Udoka Uju developed interest in painting. Fascinated by the things one could achieve with paint and colours she decided to be a Painter. Udoka Uju ran her business (The Lady Painter) part-time even while she was in the bank till July, 2016 when she resigned from the 9 to 5 job to pursue her dreams. Udoka Uju’s life since she started focusing on The Lady Painter business has been an inspiration to many. It has also been challenging being in a male dominated profession. The Lady Painter is a brand that Udoka Uju is building and hopefully she desires to make it a household name in Nigeria. Besides running The Lady Painter as a business, Udoka Uju is also the founder of the initiative ‘Grab a brush, Colour a life’, an initiative aimed at face-lifting the public schools, orphanages and public areas in our rural communities by making them look clean and attractive with meaningful art works/murals. They are particular to their clients’ needs so they vigorously ensure that all projects undertaken meet all agreed-upon specifications and executed with ardent creativity. With major clients like Diamond Bank, Sterling Bank, FCMB to mention a few, indeed, The Lady Painter has proven that she is here too stay. Where it all began Growing up was fun because I have a beautiful family and friends and at the same time it was challenging because I was always wondering what I wanted to be in future. It seemed most of my friends and classmates had it figured out but mine took me a while. I come from a strict home, where family comes first no matter what; I was also taught that there has to be a balance in life. So this helped me make a decision in choosing my path in life. This path right now, running a painting company, gives me a balance in life. How are you fairing in a male dominated terrain? Working in a male dominated terrain was challenging when I started. I wasn’t taken seriously when I went out for marketing; also people thought I was working under someone. So I had to do a lot of work trying to convince them that I was really a Painter and it was my business not someone else’s. But now, I let my past jobs do the talking. Also right now, there are a lot of women out there taking painting as their profession and people are taking us more seriously. Progress report When I started my business it was just Lagos that we were servicing, but then I got lots of requests for painting outside Lagos and I just had to take that bold step of travelling outside Lagos with my team for jobs. Now it’s easier for me because I have tried to build teams of Painters in Abuja, Akwa Ibom state, Rivers state, Imo state, Enugu state and Oyo state and I am still working on going to other states as well. The plan is to make The Lady Painter a household name in all states in Nigeria.

KEMI AJUMOBI kemi@businessdayonline.com

Graphics by David Ogar

WOMEN’S HUB 7

Grab a brush, Colour a life Grab a brush, Colour a Life is an initiative that I use to give back to my society. I try to raise funds, use funds from my business or get sponsors to paint a public school, an orphanage or a public wall with focus on rural areas. It’s my way of inspiring lives and communities with my gift using colours and patterns because I believe everyone deserves to live and learn in a beautiful environment. Transition from a 9-5 job to being a painter The transition has been a good one. I don’t have any regrets even with the challenges I face. It has been a learning process for me and the opportunities have been endless.

BUSINESS DAY

Friday 14 September 2018

What to wear to that casual party KEMI AJUMOBI The right shoes You can’t overrule the importance of a nice pair of shoes even though the party is themed casual. You must however ensure they are very comfy. Remember you will be mingling and dancing too so the fact that they should be comfy doesn’t mean it shouldn’t make an appropriate statement. Your outfit Since it’s a casual party, you can wear a cute sleeveless party dress. Interestingly, such dresses are wearable for both formal and informal meetings. When you combine the dress with complementing or contrasting jewellery, you are good to go. You can also wear skinny jeans with a dark colour loose form top with it and accessorise appropriately. Your make-up Your make–up for a causal party doesn’t have to be loud and there must be balance. Glitters are not appropriate for a casual party. You can wear your lashes but you do not need glitters. If your hair is loud, your make up should be subtle. Nudes often helps to tone down the ‘noise’ you feel your outfit may be ‘screaming’. If your lipstick is going to be red, your eye shadow cannot be flashy. Jewellery Since the party is causal, you won’t be needing loud jewelleries. Also, mismatched jewellery can create a sloppy image. Jewelleries are to help keep you in tune with the theme and if the theme says casual, it’s not time for something loud.

“But in appointive positions, you don’t contest for anything, you don’t vie for anything thing, they just handpick you because they think that you can fit into an area. Your loyalty lies with the person that appointed you, but if it’s the people that elected you, your loyalty lies with them. Your heart will go out to the people and you’ll want to do something for them,” she said. She further told journalists that, for women to succeed in their political aspirations they should continue to network with the grassroots, and “let the people know what we can do as women in politics, that it’s not just a game for men alone. Women have a lot to give in politics and the nation at large”. “If you look at women that have done so well in government like the Margaret Ekpo and Funmilayo Ransom Kuti of those days, they impacted the lives of the people. So I don’t think that there’s nothing women cannot contribute, or something that is beyond women when it comes to decision making” she adds. The training was designed in response to the huge under representation of women in leadership, especially in elective leadership, and to equip women with the right skill to increase their chances of winning. “The women election campaign training is one of the resources we have developed at Emerge Women DESMOND OKON to help women running for, or, women who are aspiring to run for office, and those who are camhe head of gender unit, voter education depaign managers, with the skills they need to conpartment INEC, Lagos, Fortune Azuka Mbama- test and win their elections and that’s the focus for lu, has advised women in politics, particularly us because we know you ought to have a strategic those aspiring and contesting for positions in the campaign plan. You need to have a plan on how to near 2019 polls to gun for elective positions rather do your fundraising. You need to understand what than appointive ones. data can do for you as someone who’s running for She also hinted on what women can do to ensure office. You need to understand how to mobilise the their success at the polls next year. grassroots,” Mary Ikoku, founder and CEO, Emerge She said this while speaking to women from variWomen. ous political parties of various constituencies at the “We need to have more women in elective leaderWomen Election Campaign Training, facilitated by ship. We need to have more women in our parliaEmerge Women. ment, both the National and State Assemblies, we According to Mbamalu, elective positions is where need to have more women running with men to you campaign for your votes by yourself, talk to the get this country developed. Because one of the key people, network with the people, have a relationdevelopment indices is that you need to have a full ship with the grass-root where you come from. “They representation of all the groups of people that make know you and you know them, and they voted for up your population, and women make up more than you to get to the top. They know that, this is our per- 50% of Nigeria’s population. These are a special son. She knows our problems, she feels our pain and group of people and it becomes worrisome why they she’ll be able to attend to our needs when she gets would be excluded from the decision making table,” there. she said.

Yes She Can!

Youths Matter

he Resident Coordinator, United Nations Systems, Nigeria, Edward Kallon, represented by Oluseyi Soremekun, National Information Officer, United Nations Information Centre, UNIC, Lagos, has drawn attention of stakeholders to innovation and resourcefulness of the youths, and urged them to prioritise their roles in the implementation of the Sustainable Development Goals, SDGs. He made this call at the end of his speech delivered at the Social Good Summit held recently at Muson Centre to carve out ways of achieving the sustainable development goals by 2030. Soremeku believes the SDGs are about the youths and their future, and so, they should be involved in the planning and implementation of interventions since they are the target group. “The youths are at the centre focus of SDGs because you need the energies of youths to drive this process, you need innovativeness of youths to drive the process, so they are very important in the implementation, and that is why they should be involved in the planning of interventions that are targeted at them, and not brought in at the point of implementation. Their voices should be heard even at the planning stage,” he reiterated his stance to Women’s Hub Backing this view, Rose Kefas, the representative of Adejoke Orelope-Adefulire, Senior Special Assistant to the President on SDGs said young people had to play in achieving the sustainable goals. A youth initiative co-founded by Oluwatobi Aigbogun, the Social Good platform constantly seeks ways of actualising the sustainable goals. This year’s summit was the second official event, and it received huge recommendations from the federal government which has been trying to organise a programme like this for two years now, and they have not been able to do it. “But we, the youth have been able to do it,” said Aigbogun.

BUSINESS DAY

Friday 14 September 2018

Inside the Mind of the Millennial JASON MCDOWELL

here’s a disconnect between millennials and older generations in today’s workforce. Millennials want to do things in ways that Generation X and the baby boomers may not agree with, and that often causes friction. Many companies are so focused on the “what” of the matter that they may be missing out on the “why.” Older executives often find it easy to dismiss the millennial generation as lazy or unmotivated, but that simply isn’t the case. Millennials grew up in the age of the internet; for as long as they can remember, they’ve been able to talk to anyone from anywhere at any time. They keep their professional email accounts connected to their personal cellphones, and they perform one-off work tasks at all hours. They want to wear comfortable clothes to work, and

WOMEN’S HUB they want to work at least some of the time from home. Many millennials got participation trophies in their soccer leagues just for trying their best; they’ve learned from an early age that rankings don’t matter much. That’s why the office hierarchy means less to them, as does the prospect of climbing the corporate ladder. They want environments where ideas and effort rule more than people do. These ideas that millennials hold about work aren’t bad – they’re just different from the traditional notions that boomers are so used to. While the two generations might view the workplace in different ways, learning to reconcile the two ideologies with one another will bring benefits to any employer that supports the effort. “Millennials are starting their careers at a time when digital and cultural shifts have created a blending of work and life,” says Sherry Dixon, senior vice president at employment agency Adecco Staffing USA. “Nine-to-five schedules are becoming a thing of the past, while smartphones and cloud-based platforms are holding workers accountable for to-do lists, deadlines, and hot requests at all hours of the day. Many millennials are willing to stay connected and responsive outside of the eight-hour work day, but they may also expect employers to be more lenient when they need to work from home or take an afternoon off at the last minute. As long as young people have established trust, accountability, and consistent communication with their managers, this new dynamic can work in both the employee’s and employer’s favour.” If boomers and millennials have limited interaction, they’ll never find out how much they can learn from each other. Companies that encourage employees to close the generational gap will reap some serious rewards “Programs that foster idea-sharing are often used as a tactic to strengthen workplace culture, but they are also great ways for businesses to absorb technical know-how from millennial workers,” Dixon says. “Companies can also implement reverse mentoring programs, where executives spend time with less-tenured employees to hear their fresh perspectives.” Besides reverse mentoring, businesses can implement additional programs that encourage employees to teach one another across generational lines. When you have top millennial talent on your roster, you want them to hang on to their jobs the way baby boomers did in days of yore. But that’s easier said than done. Millennials aren’t just known for changing jobs – they also like to change locations.

The KING OF BOYS is nigh KEMI AJUMOBI

emi Adetiba surely has her way of holding us spell bound. We thought we had seen it all in her brilliant directorial piece, The Wedding Party but alas, Kemi only gave us a tip of the iceberg. From when I started hearing about the movie, I knew she was going to have us on the edge of our seats and so far, my expectations have not been dashed. She shared the poster of the movie with Sola Sobowale looking fierce and daring. Sola looked like she was saying “Bring it on” and when Kemi shared the trailer, my jaw literarily dropped. Trust me, we are surely in for the time of our lives. King of Boys follows the story of Alhaja Eniola Salami, a businesswoman and philanthropist with a checkered past and a promising political future. She is a pillar of society, loved by many, feared by most, and truly known by a select few. As her political ambitions see her outgrowing the underworld connections responsible for her considerable wealth, she’s drawn into a power struggle that threatens everything she holds dear. To come out of this on top, she will need every ounce of the cunning, ruthlessness, and strategy that took her to the top, as well as the loyalty of those closest to her. But who can she really trust? Watch out for this epic movie set to be released at the cinemas on the 26th of October!

6 places where ladies can hang out on the Island KEMI AJUMOBI

EVE RESTAURANT

HARD ROCK CAFÉ

Enhance your evening when you take your dining and entertainment expectations to a whole new level at Hard Rock Cafe Lagos. Although the cuisine is out of this world, you can do more than

grab a bite to eat here. Their state-of-the-art cafe features more than 200 seats, a stage for live performances, and a swimming pool area for adults and kids. No matter where you sit, you can enjoy live music, cold drinks, and an unforgettable experience with the beautiful waters of the Atlantic Ocean as the perfect backdrop.

Sometimes the simplest things are the hardest to find. So at Eve, they created a new line for everyday life, all year round. They offer exciting tastes of international and local cuisine in a superb interior of their exquisite Lagos restaurant. It has fast become a place women love to meet, enjoy their company in a relaxed environment after the day’s job and even at weekends. At The Eve Restaurant their meals are everything.

EDIYE Situated at Fola Osibo street in Leki Phase 1, Ediye is reputable for a cosy environment and cuisines which are local and international. It’s an amazing place for women who aside the meals also enjoy the professional services from staff at the make-up lounge, fashion wing for different accoutrements including shoes, bags, hair accessories and so on. They also have a gym and dance studio, and open air patio where people sit together, eat, play games, enjoy good music in a relaxed ambience.

1662 Cafe & Bar

THE OFFICE BAR The Office Bar, is the perfect & coolest roof top bar in Lagos to hang out with co-workers and friends. It is located on the 2nd floor of the Four Points by Sheraton Lagos hotel. It offers great alfresco dining with beautiful views of the sunset. This bar also offers an amazing paranomic view of the Victoria Island Lagos at night. There is an array and assortment of food and cocktail menus to excite you taste buds. Their mouth-watering barbequed jumbo prawns, signature ‘dodo and snails’ or cocktails are your good

company when with your friends. If you are looking for great music, this roof top bar, offers you fantastic live band music every Friday and Saturday which cleanses and re-energises the soul.

XOVAR LOUNGE LEKKI Xovar Lounge Lekki is indeed a place to be and the ambience is accommodating to ladies who just want to hang out, eat, share a drink and have fun. It has an indoor/outdoor

Lounge situated on a large vastness of land in Lekki area of Lagos state. Xovar lounge is indeed bravura. The structural piece is well designed to meet the needs of customers of all class.

1662 Café & Bar located in South West IKoyi, Lagos prides itself on being a hidden gem for those in the know. It’s discreet and perfect ambience for informal meetings & select parties. Created for connoisseurs, 1662 is named after the year the modern method of making champagne – Méthode Champenoise – was first documented in the Royal Society Magazine in England by Sir Christopher Merrett. By day the Café is a private haven for croissants, easy breezy meals, chai lattes, cappuccinos, and fresh juices. By night 1662 serves up exquisite drinks – champagne, palatable wines and signature cocktails. 1662 Café and Bar was lauded by Forbes Africa as ‘A corky little upstart’. It prides itself on being a hidden gem for those in the know.

Friday 14 September 2018

WOMEN’S HUB

BUSINESS DAY

icole Ojone Adehi is the first of four children and she hails from Kogi State (Igala by tribe). She is a 23 year old Lawyer and Photographer. She prefers to be called an entrepreneur. She was the official photographer to Her Excellency; the wife of the Executive Governor of Kogi State from August 2017 till March 2018 as she had to leave to practice law for a while. Nicole started photography as a hobby in 2013 and professionally late 2016. She has worked with several celebrities including AY, Denrele, Timi Dakolo, Ycee, Dremo, Annie Idibia to mention a few. She won the P!NG 2014 Photographer of the year award, the ANUCA 2015 Event of the year Award, the NTCA 2015 and 2016 Female Photographer of the year award. Her early years were quite exciting. In her words, “My mother is the first thing that comes to my mind when I remember this period of my life. My growing up was different. My mom is a lecturer; she’s always been in the educational field which means I had a very strict and disciplined childhood. My dad on the other hand was the good cop and being the first child and without a brother for about 9 years, I was closer to my dad and low-key had or have this inner tomboy in me which actually gave me this trait of independence.” She says. The choice of Photography happened in 2013 but professionally since January 2017. In her words, “Every time I repeat this story, it’s almost like a joke but truth is I went to park one day and ran into this road side photographer who gave me a tour round with his camera and we took a lot of pictures and the one that stuck the most was the picture of two goats fighting. It felt like I had captured a timeless and irreplaceable moment. It felt fulfilling and satisfying. I was curious and intrigued so I saved up and got a camera and boom! We here now” She says with a grin on her face. Being a Lawyer has helped Nicole in her line of work. She affirms this when she says “Law is a profession that keeps your discipline and professionalism in check; it also even has a way of making you smarter. It’s helped me in that aspect and also in the aspect of deciding what opportunities to take and those not to take after looking at the terms of contract. I absolutely love being a lawyer during the week”. Adehi admits. There is a project that is dear to Nicole’s heart; it is the Next top Model competition in Nigerian Universities. Hear her share more on this. “This is a project I’ve been on since 2014; the concept is basically to give makeup artists, designers, photographers and most importantly models a platform to partake in something they can really benefit from in terms of exposure and funding. It has taken place so far in Afe babalola University, Bowen University, Bells University and Adeleke University. I have been funding this project since its inception but it is my intention to make it very big next year with the help of sponsors to fund this event” Nicole says and continues “We intend to tour 20 universities in the coming year, house and train the contestants for two weeks and have a grand finale in Lagos; Nigeria. I want to make people happy. I want to make people feel like they have achieved something great in life. I’m really passionate about this event.” Well, that’s not all to what Nicole is passionate about. There is also the Retroculture Fashion event which she says is basically a bi-annual fashion event she organises in Abuja; Nigeria for the youth to unwind and for those in the fashion field to showcase their art. Ask Nicole why her passion for photography is intense and she will readily tell you “Photography is special to me. It has made me appreciate nature and God’s creations better in the sense that it makes you realise that there is something beautiful in

Nicole Adehi, the young attorney passionate KEMI AJUMOBI

NICOLE ADEHI, the young attorney passionate about capturing timeless moments KEMI AJUMOBI

everything and in everyone. It gives me a really strong feeling of fulfilment when I’m able to wow people by beautiful images I take of them or the way I’m able to capture moments. It’s really amazing to be the one responsible for properly freezing a timeless moment. It’s also more amazing to see something else more than your eyes can see and create it differently using light and colours and editing techniques. It’s deeper than I can explain actually.” Nicole

narrates. On her challenges, she says “My professional challenges basically would be that I meet different people because of this line of work; different people with different taste and different wants and needs. Sometimes; you unlearn some skills to please some people and learn new ones to make others happy too. It’s not really a challenge; it’s fun. My personal challenges stem from the fact that I barely have time for the most random things. I feel it’s just a sacrifice that has to be made now that I still have the strength. I’m building an empire so I really don’t mind.” She tells me. Being a female in her line of work is what Nicole terms Annoying. Her reasons? Hear her tell it. “Sometimes it’s fun; sometimes it’s annoying. The annoying times would be when you get the ‘You’re too ambitious for a woman; why would you be hustling like this?’ or ‘She’s a woman she won’t have the strength to cover this’ and many more. The fun times would be when you get the ‘Wow, I admire you, God bless you’ and the likes. Generally though, I think I’ve had more good experiences than bad ones. I really don’t let myself be intimidated and I really don’t show weakness.” She boldly declares. An interesting, young and motivated lady Nicole is. She ends the interview on this note “My mother once said to me; there’s a way you pray and work that your destiny would change. No matter what you want to do; put your mind to it and keep being consistent. Being consistent and being intentional about your growth is a good foundation for every business.”

BUSINESS DAY

Friday 14 September 2018

WOMEN’S HUB

The break up can be ‘painless’ DESMOND OKON

alking out of a romantic relationship and out of your partner’s life could be a tough decision to make. Some people find themselves in an unfulfilling relationship, afraid to walk away because of pity and fear of how ‘the ditched’ would feel. So they feel trapped for so long even when the red flags are very red until, perhaps, things begin to go south. Although you cannot break up without hurting the other person, Nike Folagbade, a relationship expert, and Author of How I Got The Ring doles out tips you can employ to “reduce the effects it’s going to have on that person”. According to her, to break up, the first thing you need to do is find out the reason you want to end a relationship. “Ask yourself why you want to break up with this man. Is it because he’s doing something wrong, or because you just discovered you have been with the wrong person? “Sometimes we become emotionally unstable and confused about our lives, for some people, they just discovered purpose and they are asking ‘what am I doing with this person?’ For some people, they just meet someone else and they get confused and feel like ‘this person should be better for me’. Whatsoever reason behind your break up, make sure that you have a grasp of it so that when you want to relate it with your partner, you can use that as a benchmark. “When you find the reason,” she said, “the next thing is, go see your partner in a public place like an eatery or a park, and not in a room or an enclosed area. This is to avoid any form of violence or dander. So, you choose an eatery or a park.

“The next thing you want to do before telling your partner you can’t do it anymore is to try and invest in their emotional accounts. What this means is that, you use a lot of positive words. Start by telling your partner how much he meant to you, how much you appreciate him. Think about five good things that you like about the person, and start by telling your partner the areas he’s good at. This would make him smile, and you’d have boosted his ego. “Then, make it look like it’s your fault and not his, even if the fault was from the person. Make the issue look like it was all about you. Make it look like you’re the one that has the problem, not him. “Lastly, you can now tell the person what you want. You can tell him that your values don’t connect, and that you have made a decision to move on off the relationship so that you can discover more of yourself. Tell him you are not doing it because he’s a bad person, but because you need time to really

think about certain things,” she explains to Women’s Hub. As much as this person wants to drag you back, they won’t go home thinking they are bad, or not deserving of you, or because something is wrong with them. This is because when a break up happens, the person puts himself in self-blame, he begins to feel guilty. If it’s a woman for instance, she begins to say; ‘maybe I’m not good enough for him’, ‘maybe he found a more beautiful girl’, maybe because I’m dark and she’s fair’ or ‘maybe because I’m not as slim as the other girl’. She will think about all the bad things about her and say that it’s the reason you broke up with her, Folagbade further explains. “But if you’re able to boost the person’s ego, you’ll see them trying to make amends, trying or promising to connect to those values or be better, and not them getting angry”.

6 Secrets Revealed to Manage G Your Short Natural Hair URBANBELLA

et inspired. The first thing you want to do, even before you head to your stylist for your big chop is to get inspired. Take some time to create a Pinterest board of women with short kinky haircuts. Scroll Instagram hashtags and take a look at how other women style their short natural hair styles. You want to start getting an idea about how versatile natural hair can be, even right after a big chop. Get a cut that compliments you. We cannot stress this point enough. When it comes to getting your big chop, our face shape, your hair texture, and your personal preferences all play a role in the kind of chop will look best on you. Typically a stylist will either go for the standard round cut or sometimes you may want to just cut it all down to your natural texture and go from there. Be patient. By the time you take that big step to cut your hair, you’ll probably be ready to jump right into styling. But, it can take some time to get your natural hair to a point where you can achieve styles like a wash and go with ease. Wash and go’s are a natural woman’s go to hairstyle, but they work best when the hair is in its best condition. This means properly hydrated. Moisture is essential both in the months before your big chop and immediately after. Without moisture and hydration, your hair journey both with short and long natural hair will be difficult. Create a good natural hair routine. While you may have had a standard hair routine before your big chop, with your short natural hair, habits like cleansing and conditioning with ultra-hydrating products can be the difference between hair that flourishes and hair that’s brittle and dry. Use the Right Products. No short natural hair routine is complete without a good product line up. Quality products are essential at any stage in your natural hair journey, but especially in the beginning. You want to use products that help restore hydration to your hair, retain moisture, combat frizz, and enhance curl definition. Have fun. So we know we talk a lot about how to care, manage, and style your hair, but we don’t often talk about the feelings and emotions involved with such a major change. In the early days of your short natural hair, you may find yourself dealing with trying to feel good about your hair, your styles, and how society will view you. Remember, even before natural hair became so popular, women like Halle Berry were showing us that short hair is feminine and fierce.