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Onnoghen: Again, Nigeria fails democracy test – SBM Intelligence

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Inside Preowei field awaits Total’s FID in 2019 P. 17 The prosperity paradox: How innovation can lift nations out of poverty P. 39

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g L-R: Gloria Elemo, directorgeneral, Federal Institute of Industrial Research, Oshodi (FIIRO); Joshua Okeowo Oderinde, director, finance and accounts, FIIRO; Ogbonnaya Onu, minister of science and technology, and Boss Mustapha, SGF, representing President Muhammadu Buhari, at the unveiling of FIIRO’s newly invented solar steam boiler as part of the opening ceremony of the Technology and Innovation Expo 2019, in Enugu, yesterday.

OWEDE AGBAJILEKE, ABUJA, & DIPO OLADEHINDE

he manner of the planned trial of Nigeria’s Chief Justice (CJN) Walter Onnoghen by the Federal Government has once again demonstrated the country’s challenges with entrenching democratic norms, according to SBM Intelligence. Coming a few weeks before the general elections, the move has expectedly drawn mixed reactions across the country, with intelligent report describing it as outright witch-hunt and intimidation by the executive arm of government against the judiciary at a level totally unseen in Nigeria’s democratic history. “A few weeks to an election season which many are increasingly seeing as a referendum on Nigeria’s democratic practices, the country once again

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NSE eyes 2019 for derivatives market takeoff T IHEANYI NWACHUKWU

he Nigerian Stock Exchange (NSE) is optimistic that highgeared efforts put in to actualise its equities derivatives market will make it a reality this year.

Says constantly engaging companies not to delist Work on demutualisation reaches final stage

The Exchange has, for instance, completed required technological enhancements

for the launch of the equities derivatives products, while its Rulebook has been created and

“is currently undergoing approval process alongside onboarding Continues on page 38

2 BUSINESS DAY NEWS

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Tuesday 15 January 2019

Banks scramble to recover multi-billion naira debts owed by federal lawmakers ... as management disowns parliamentarians KEHINDE AKINTOLA, Abuja

ith estimated N70 billion debt portfolio offered to members of the National Assembly on assumption of office in 2015, management of various domestic banks are scrambling to recover the unserviced debts ahead of June 2019 date for the 8th Assembly to wind down, BusinessDay investigation reveals. Although the actual worth of banks’ exposures to the federal lawmakers cannot be ascertained as at the time filing this report, BusinessDay gathered that most of the lawmakers who obtained loans ranging from N150 million to N200 million since July 2015 have failed to meet their obligations. According to a management staff of a leading bank at the National Assembly, most of the serving lawmakers have defaulted in servicing the loans, despite herculean efforts and consultations with the affected lawmakers. The banker, who pleaded anonymity during a chat with our correspondent, disclosed that other recovery mechanisms explored so far have not yielded any positive results. Some of the indebted lawmakers are currently being investigated by the House Committee on Ethics and Privileges in response to series of petitions sent to the speaker, Yakubu Dogara, by the banks, our findings show. Recall that the names of some serving senators were part of the top list of 105 debtors publicised by Asset Management Corporation of Nigeria (AMCON) as at October 2018, to the tune of N409,502,652.84. They include Buruji Kashamu, who allegedly owes AMCON the sum of N13.015 billion, and Usman Bayero Nafada, who was deputy speaker of the House of Representatives in the 6th Assembly. Joshua Dariye, former governor of Plateau State and a serving senator, is reportedly indebted to the tune of N6.823 billion, while Chimaroke Nnamani, former governor of Enugu State and a serving senator, is allegedly indebted to AMCON to the tune of N42.49 billion owed as promoter

of Iorna Global Resources, Sammy Beth Interbiz Limited, Camden Resources Limited, Riverside Logistics Limited and Rainbownet Limited. Also featured on AMCON’s debtors’ list are Ben Murray Bruce, who reportedly owes N10 billion, and Stella Oduah, a former Aviation minister, who owes N20 billion. Similarly, Nigeria Deposit Insurance Corporation (NDIC) revealed in its 2017 annual report and statement of accounts that Nigerian banks’ NonPerforming Loans (NPLs) in 2017 was N2.36 trillion, representing a 13.46 percent increase compared to N2.08 trillion in 2016. In a reaction to BusinessDay inquiry, a member of the National Assembly who does not want his name in print denied allegations bordering on connivance between National Assembly staff and the affected lawmakers to diversify accounts used by the lawmakers. He also denied knowledge of requests from banks for the recovery of loans, adding that National Assembly management lacks the powers to halt statutory payments such as salaries, allowances and quarterly allowances of any serving lawmaker. “You see, part of the problems we are having is that the banks were out to make customers with the hope that they will do well. You know that in every loan there is a clear understanding between the bank and the beneficiary on the rate to which the beneficiary would pay the facility for a period of time. These are the issues. I want to tell you that these are private issues between the beneficiary and his bankers. In every transaction like this, if you don’t look at the risk factor before you go in to sign the loan facility, then you take the liability of not doing the right thing,” the source said. “There rules that guide every process of service, anybody that goes against the rules that guide us in our official transaction, there is no connivance.”

•Continues online at www.businessday.ng

CBN restrategises on meeting 80% financial inclusion target by 2020 ONYINYE NWACHUKWU, Abuja

he Central Bank of Nigeria (CBN) is about to launch a key policy document that would facilitate the attainment of the financial inclusion target by next year. The CBN said on Monday that it would lead other national financial inclusion stakeholders in Nigeria for a major event in Abuja on Thursday and Friday for the launch of the document. The new strategy would be coming after fears had been raised that the country may miss the target. Latest figures released by Enhancing Financial Innovation and Access (EFInA) indicate that 36.6 million Nigerian adults, representing about 36.8 percent of the Nigerian adult population, do not have access to formal financial services yet. In an emailed statement, the CBN said the policy documents to be unveiled at the conference are expected to attract over 400 delegates and include the Revised National Financial Inclusion Strategy (NFIS 2.0), the Financial Literacy Framework, the

Consumer Protection Framework and the Consumer Education Framework. According to details obtained from the apex bank, the conference also aims to ensure that new comers into the financial inclusion bracket are adequately protected and educated in line with the provisions of the policy documents. Other objectives of the two-day conference to be declared open by the CBN governor, Godwin Emefiele, are to update participants on the growing sophistication of the financial market, the competitive environment in which financial services providers operate, and the benefit and value of providing access to financial services, among others. Whilehopingtoenhanceconsumer confidence and trust in the financial services to facilitate progress towards achieving80percentfinancialinclusion targetby2020,theCBNandotherstakeholders also seek to obtain customer feedbackonhowbesttoimplementthe financial inclusion policies.

•Continues online at www.businessday.ng

L-R: Oscar Onyema, CEO, Nigerian Stock Exchange (NSE); Tinuade Awe, executive director, regulations, and Olufemi Onifade, Ag head, trading business division, during the NSE 2018 Market Recap and 2019 Outlook, at the exchange in Lagos, yesterday. PicbyPiusOkeosisi

Debunking election year myths: 2019 may not be so good for stocks regardless of who wins IFEANYI JOHN

gainst conventional wisdom, there are no guarantees of a stock market rally in 2019. BusinessDay analysis on stock market performance in election years in Nigeria since 1999 shows that the stock market declined in three of the five general election years since the return of democracy in Nigeria. Data compiled from the Central Bank of Nigeria (CBN) statistical bulletin shows that the stock market declined in 1999, 2011 and 2015 and only rallied in 2003 and 2007. On the other hand, our findings showed that the stock market rallied every year after an election excluding 2008 (the year of the global financial recession) and 2016 (the year Nigeria entered its first recession in 25 years). “The stock market is looking for a pro-business president. If they get it this year, we may see a strong rally in the second half of the year,” said Maju Eldad, Economics lecturer at the Federal University of Kashere, Gombe. “As for 2020, the likelihood of global economic recession is a lot higher. If the risk does materialise, then the global selloff may reach Nigeria, otherwise 2020 should be a good year for investors in Nigeria and other emerging markets,” Eldad told

ANALYSIS BusinessDay. Another election year myth our analysisdebunkedisthatthestockmarket will typically rally in the second half of the year after a successful election. According to data on market performance, the stock market declined in the second half of the year in three out of the last five elections held in Nigeria. In fact, the first half of the year, the period in which the election was held, turned out to be a more productive period for the stock market as the NSE All Share Index delivered positive returns in the first half of the year in four out of the last five elections, with 2015 being the only year where the stock market posted negative returns in the first half of an election year. Deeper research showed that elections are not the only factors that affect the stock market during election years. In 1999, the year Nigeria elected its first democratic president, the stock market declined by around -7.16 percent. Recall that the year coincided with Nigeria’s biggest devaluation of the naira in a single year as the currency depreciated from N21.88 to $1 in 1998 to around N92.61 to $1 in 1999, translating to a 323 percent jump in the value of US dollar in one single year. The naira devaluation along with

thepoliticaluncertaintyofmovingfrom military rule to democracy caused investors to sell off stocks and wait on the sidelines. However, once uncertainty subsidedandthenewpresident(Olusegun Obasanjo) began to restructure the economy with fresh policy initiatives, investors responded cheerfully, causing market performance to average 33 percent in the years leading up to the next election in 2003. The election years of 2003 and 2007 were less eventful as the People’s Democratic Party (PDP) coasted to victory in the general elections. A more certain investment environment propelled by external factors, such as rising crude oil prices and the emergence of a stock market bubble, helped the local bourse deliver its strongest stock index returns since 1995 when the stock market returned 131 percent in a single year! In 2003, the stock market rallied by 65.84 percent and in 2007 it grew at an even faster rate of 74.73 percent, surprising numbers for election years. It is unlikely that 2019 will deliver strong returns as 2003 and 2007 regardless of who wins the election this year, but after the stock market declined almost18percentlastyearduelargelyto politicaluncertaintyandsloweconomic growth, investors will be expecting stocks to bounce back following a successful election and stronger economic performance this year.

Nigeria’s electricity consumers to heave sigh of relief

... as MAP Regulation set to yield fruits first quarter 2019 STEPHEN ONYEKWELU

etering Asset Provider Regulation designed to drive mass metering, especially for residential electricity consumption, is set to start within the first three months of 2019 as request for tenders from NERCapproved MAP contractors enters its final stages. Consumer complaints data published by the Nigerian Electricity Regulatory Commission (NERC) for the second quarter of 2018 indicates that metering and estimated billing were among the most significant concerns of consumers. Metering

and estimated billing dominated customer complaints, accounting for 68 percent, that is, 103,636, of the total complaints. The total number of electricity consumers with prepaid meters increased by 2.26 percent to 1.50 million in the third of quarter of 2018 in comparison to 1.62 million customers in the preceding quarter, according to the National Bureau of Statistics (NBS). However, players in the meter industry have said that the rate of distribution by the electricity distribution companies (DisCos) is still low to bridge the close to 7 million metering gap in Nigeria. “The request for proposal (RFP)

by NERC from MAP approved contractors entered its final selection stages in December 2018. We expect to see some prepaid meter supply contracts with Discos signed in January 2019,” Chantelle Abdul, managing director of Lagos-based Mojec International Limited, an indigenous prepaid meter manufacturer and MAP-approved contractor, told BusinessDay in a phone interview. “The MAP programme has not commenced but will.” According to the NBS, Abuja Disco had the highest number of customers metered, overtaking Benin

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Nigerian Economic Outlook 2019: Nigerians to expect positives in spite of political uncertainties SEGUN ADAMS

he year 2019, despite being clouded by election uncertainties, will offer Nigerians many things to cheer about, according to Bismarck Rewane, managing director/ CEO, Financial Derivatives Company. Rewane said the Mobile Payment Banking System, the minimum wage review, increased railway investment, improved fiscal consolidation and debt restructuring were positives Nigerians would see in the New Year. ‘’Because MTN and the likes will be coming into the mobile payment space, cost of transactions would go down and the velocity of money in circulation would increase two-fold upon acceptance and then about four times overall,’’ Bismarck said in the Nigerian Econom-

ic Outlook 2019 organised by Redeemed Christian Church of God (RCCG), The King’s Court, weekend. The economist started his presentation by pinpointing global trends that would have significant impact on the domestic economy in 2019. The spate of angry voting buoyed by capitalism-induced income disparity, increased global infrastructure spending, possibility of rates hike by the Feds in United States, and the relevance of OPEC in 2019 were highlighted in his presentation. On the domestic front, the outcome of the elections would play a significant role in determining how the plot unfolds for Nigeria, he said. “The future in 2019 would depend on electoral outcomes to some extent. GDP growth rate would remain at 1.9 percent, naira would come under speculative pressure before the elections, and external reserve

would remain under some pressure. “There would be additional borrowing, inflation is projected to be at 13 percent by end of the year and the monetary policy stance would depend on inflationary figures and GDP growth rate,” he said. Yemi Adamolekun, executive director, Enough is Enough Nigeria, in the session that followed, charged Nigerians to become more active in the political process, which she explained was not limited to voting on the election day. Adamolekun also challenged the ‘’winner-takesall’’ mentality in Nigerian politics, advising that opposition should not be synonymous with enemy, while calling for all to embrace peaceful dialogue in dealing with issues affecting the nation and encouraged Nigerians to demand for right leadership.

FG repositioning maritime industry to better Nigeria’s economy – SGF AMAKA ANAGOR-EWUZIE

ecretary to the Government of the Federation (SGF), Boss Mustapha, says the Federal Government is working hard through the Nigerian Maritime Administration and Safety Agency (NIMASA) to reposition the Nigerian maritime industry for the nation’s economic growth. Mustapha said this development had also made the maritime sector an attraction for investors. The SGF, who spoke on Saturday at the NIMASA Corporate Dinner and Merit Awards held in Lagos, said the nation was beginning to see another opportunity through which it could harness its vast resources. Mustapha, who was represented by Udoma Udo Udoma, minister of budget, noted that the current management of NIMASA had in about three years of President Buhari’s ad-

ministration turned around the Agency and placed it on a good position to contribute to the growth of the economy. He urged the awardees and the industry stakeholders to remain focused in supporting the Federal Government’s drive to take Nigeria’s economy to greater height. Earlier in his welcome address, Dakuku Peterside, director-general of NIMASA, said the maritime industry remained the backbone of international trade and it had made remarkable achievements in the last two years. He also noted that despite the challenges being faced in the sector, the stakeholders’ commitment, professionalism and resilience were the reasons the Agency was doing well. “The Nigerian maritime sector is on a journey, we are not where we are going yet, hence we need the continuous support of our stakeholders in our quest to realise a

robust maritime sector, so that we can compete favourably with our counterparts in other maritime climes,” Peterside said. Peterside, who used the opportunity to congratulate the awardees, charged them to redouble their efforts in the discharge of their duties and functions in the maritime sector to enable them record greater successes in the coming years. In recognition of the numerous contributions of stakeholders to the growth and development of the maritime sector in Nigeria, the Agency bestowed awards on outstanding maritime companies; Maersk Nigeria Limited, Gulf Agency Company (GAC) Nigeria, Charkins Maritime and Offshore Safety Centre among others, alongside some Staff of the Agency who have demonstrated commitment to the sector over the years.

Reforms: Edo civil servants heave sigh of relief as Secretariat Complex nears completion

s the construction of Block C in the Edo State Secretariat Complex by the Godwin Obaseki-led administration nears completion, civil servants in the state have heaved a sigh of relief at the prospect of working in a spacious and decent environment. Those interviewed applauded efforts of the governor to reposition the civil service for optimum performance. The construction of Block C in the Secretariat Complex commenced over 40 years ago by the late Dr. Samuel Ogbemudia-led administration, and was abandoned by

successive administrations. On assumption of duty, Governor Obaseki assigned a team of engineers to carry out an integrity test on the building. The team’s report showed that the block was in good condition and thereafter, the governor embarked on its completion Ibrahim Momoh, a civil servant in the state, said he had long considered the Block C building as a project that could no longer be put to use. “I cannot believe what I am seeing. This building was abandoned for years and was home to reptiles for decades. I am very impressed with the completion of the building

and again, the governor has shown how prudent he is as a manager, with the state’s resources,” Momoh said. Momoh added, “I believe that the completion of the Block C and the renovation of the other blocks within the complex will provide better working environment for civil and public servants.” Another civil servant, Joseph Osahon, described the completion of Block C as a step in the right direction, noting, “The governor has shown us that he has our welfare at heart. On completion, the building which is fitted with air conditioners and work tools will enhance productivity of the state’s workforce.”

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INEC will determine this 2019 elections Mazi Sam Ohuabunwa OFR, FPSN sam@starteamconsult.com

sually, there are many parties to every contest. In a football contest you have the teams, the referee and his linesmen, the spectators- supporters and opponents - and then the managers of the stadium and finally those who control the crowd and provide safety for all. This is largely the same for all other sports. In educational pursuits which can sometimes turn into a contest when we want to determine winners and losers for prizes, honours or for access to limited space, you have the students, the teachers, the examiners and those who set standards. But in these situations there are always the most critical parties, those who really can make or unmake. Similarly, in political contests, there are many parties- the political parties, the electorates (voters), the electoral umpire, the security agencies and the government in power. The question is which party determines the election? It depends. In normal circumstances, every party has significant impact. The political parties and their conduct may make or mar an election. Indeed, in our experience as

STRATEGY & POLICY

MA JOHNSON Johnson is an eclectic researcher, writer and columnist whose articles cover maritime, defence, technology and public policy issues and other areas of human interests. He is a member of the BusinessDay Editorial Advisory Board)

eroes are those rare individuals who make history, and they are stars in their own rights depending on the lens used in gazing at their contributions to the society. They are civilians or military personnel-serving or retired, too numerous to mention. Heroes emerge through the paths they choose, not the powers they are blessed with. At the beginning of his account of the Peloponnesian War, Thucydides, the Athenian historian and general, was of the view that historical enquiry should restrict itself to contemporary events which can be verified by direct observation. He practised what he preached

a nation, the political parties have largely determined the outcomes of many of the political contests. When they buy votes, snatch ballot boxes, steal or destroy ballot papers, instigate violence at polling booths and collating centres including burning down electoral centres, they often determine the election. When the security agencies decide to jump into the fray, intimidating and rough handling opposition party members or preventing voters from voting their choice, then they help to determine the outcome of the elections. When the electoral umpire decides to be partial, then they will naturally determine the outcomes of elections. At every election when the government in power is determined to see free, fair and violence-free elections, they take actions to get every party in the contest to behave well and act according to the rules of engagement. That does not always guarantee that all parties will behave well, including the government itself. That was why despite all the advertised desire of President Babangida’s government to bequeath a good election, it went ahead to sabotage the same election which has been variously described as the best election in Nigeria. But if one particular party behaves well, it can check or dampen the impact of the misbehaviour of other party or parties. But if that same party decides to misbehave, it is not certain that the other parties can sufficiently contain its impact. That party is the electoral umpire which in Nigeria is called

‘

INEC is showing strong headedness, not willing to listen to the political parties except perhaps to only one- the one in power. If INEC desires to superintendent over a peaceful, free and fair election, it cannot feel unconcerned with the concerns of the 91 parties that make up the CUPP

’

the Independent National Electoral Commission (INEC). Indeed in many elections the electoral umpire holds the ace. Their ability to determine the election is influenced by the discretion they can exercise. In sophisticated and automated systems where voting and/or results collation are done electronically their ability to do harm is minimized. But in less developed and analogue systems where collation of results from the polling booths to the national collation centre is done manually, the capacity of the umpire to do harm is grossly accentuated. And

this is exactly where Nigeria is currently located. That this umpire has the capacity and perhaps the looming propensity to work along this dangerous path is indicated by a couple of baffling false steps. The primary dissonance is a tendency to work at cross purposes with its major parties in the contest- the political parties. INEC is showing strong headedness, not willing to listen to the political parties except perhaps to only one- the one in power. If INEC desires to superintendent over a peaceful, free and fair election, it cannot feel unconcerned with the concerns of the 91 parties that make up the CUPP. The first concern is Amina Zakari. Whether she has a blood or water relationship with Mr President should not be the only issue. What is important in a democracy is that if a significant segment of the electorate opposes any decision, then they must be listened to. This was what happened when she was made the acting Chairman, when Prof Attahiru Jega finished his term. Perhaps the President was minded to send her name for confirmation as substantive chairman but when he listened to the voice of a significant segment of the stakeholders, he decided against it, and rather appointed Prof Mahmoud Yakubu. I think, INEC, if it is truly independent, must listen to the stakeholders and avoid any thing that can tarnish the outcome of the elections. They should learn from the President or are they? Already the leading opposition parties have drawn international attention to their objections and the stubbornness of INEC. The parties are not asking that she be

removed as a national commissioner but just that she be reassigned. To me that is not too much sacrifice. It is essentially complying with good corporate governance practices because there is perceived conflict of interest. In many advanced nations, she would naturally recuse herself even if nobody raised any objection. That is where honour means much. The second concern is that INEC is re-writing the guidelines for conducting the elections without taking the parties into confidence. They have just been presented with a fiat accompli. And now the parties are protesting. Was this not avoidable? In 2015, accreditation was completed and the number of accredited voters announced before voting started. That way, voters and party agents watched out for overvoting and that helped in some way to deliver a good election. But now INEC says accreditation will go on simultaneously with voting. There are certainly pros and cons for either procedure. But why would INEC not sell these to the parties before firming up the guidelines. To me this is breeding unnecessary controversies and contradictions which are souring the relationship between the parties to the contest even before the contest begins. Thus, from the look of things, INEC will determine the 2019 elections and must be prepared to bear the consequences. But with the most recent rumblings in the polity the government in power may beat INEC to it!

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Celebrating those who make history as he served in the Athenian Army, and wrote about what he had experienced. The great Roman leader Julius Caesar recorded the earliest known version of the proverb, “experience is teacher of all things.”This article is borne out of the writer’s experience in the military as a retired two-star admiral. If you have not served the country through the military, you may not appreciate the sacrifices made by military officers, soldiers, airmen/ airwomen, naval ratings and their respected families. On 15 January 2019, Nigeria celebrated the Armed Forces Remembrance Day across the country. A day of remembrance and recognition of the sacrifices made by our fallen heroes, retired military personnel and those currently serving. In keeping with the best tradition, this writer joins other Nigerians to pray for the repose of the souls of those who lost their lives in service so that Nigeria will be a peaceful country for us to live. We wish families and relatives of our fallen heroes God’s inestimable grace and the fortitude to bear the loss of their loved ones. As we celebrate all our heroes for their contributions to nation building, may the souls of innocent citizens whose blood have been shed for no just cause rest in peace. For many decades, Nigerians have been praying to almighty God so that the labour of our past

heroes shall not be in vain. The prayer has become necessary as we live in a peaceful but dangerous country. The country is dangerous due to numerous security challenges. The situation is such that most Nigerians are alert during the day, and they sleep at night with one of their eyes closed. Only those who have lost their loved ones to insurgency, kidnapping, militancy and herdsmen attack amongst other crimes will bear testimony to this assertion. Yet, most killers have not been arrested, tried and convicted in accordance with extant laws. This exposes the weaknesses inherent in Nigeria’s security structure and criminal justice system. Notwithstanding the weaknesses in Nigeria’s security structure and criminal justice system, the services and sacrifices of our military veterans have brought relative peace to many parts of the country. That is why Nigerians must celebrate and honour our heroes every day for their profound contribution to securing the country’s territorial integrity. On the part of government, it must ensure that the welfare and training of serving military personnel is given the attention it deserves. Why, you may ask? The life of a military personnel in active service is dedicated to duty in its supreme form. The first layer of duty is to the country, and this is followed by duty to the armed forces. The list is endless. However, on recruitment of officers and men into the armed forces, there is the attestation to serve

dutifully without any bias and be prepared to pay the supreme price of death if occasion demands. This writer thinks that Nigeria has only few leaders and followers who are faithful, loyal and honest to the unity of Nigeria anytime he reflects on each line of The National Pledge. While some citizens are fanning embers of discord, there are a few who are willing, ready and always prepared to truly defend Nigeria’s unity and uphold the nation’s honour and glory. While some Nigerians are determined to make things work, others are determined to pull down the country. Nigeria is our country, and no nation-developed or developing- will help us build our own country if we choose to destroy it.At this stage of our national life, all Nigerians are implored to be patriotic. We all need to be faithful, loyal and honest to our country of almost 200 million people. Why are gun-wielding herdsmen slaughtering farmers and other innocent citizens without being arrested and prosecuted for several years? Why are the Niger Delta militants determined to launch deadly attacks on oil facilities? Who are those inducing these young men to sabotage the nation’s economy? There are conspiracy theories expressed by concerned Nigerians that some powerful people in our society are determined not to make things work in the country. But for divine intervention, the country was

almost turned into an arena where a cow was almost equal to hundreds of human lives. This cannot be our collective aspiration as a people. Anyone who has studied the 1999 Constitution of the Federal Republic of Nigeria with its limitations will know that there is no aspect of the Constitution where it was expressly stated that animals have equal rights with Nigerian citizens. One is yet to see any civilized nation where animals have either equal or superior status to human beings. Life in all animals is a gift of God. But human beings are superior to all animals. So, who owns the cows and sophisticated guns used by notorious herdsmen? Who are the sponsors of militants, kidnappers, bandits, insurgents and other criminals in our society? These are tough questions demanding truthful answers. Protection of lives and properties is one of the social responsibilities of any government towards its citizens. All citizens are to obey the laws of the country. As Nigeria remembers her fallen heroes, the welfare of those who have retired and serving must be given the attention it deserves. While necessary steps must be taken to take care of families they left behind. Let’s join our hands together to build a peaceful and prosperous nation. God bless Nigeria!

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INEC has a trust problem Rafiq Raji “Dr Raji is chief economist at Macroafricaintel. He was previously an Africa Economist at Standard Chartered Bank, London, UK. (Twitter: @ DrRafiqRaji)”

here is a raging controversy about the familial relationship between Amina Bala Zakari, a commissioner at Nigeria’s Independent National Electoral Commission (INEC), and President Muhammadu Buhari. The main opposition People’s Democratic Party (PDP) alleges she is a niece to Mr Buhari. Quite swiftly, the administration refuted the claim forcefully. Amidst the back and forth, INEC chief Mahmood Yakubu also waded in. In response to a question by a journalist, he wondered how the embattled commissioner could be considered a blood relation of the president if their states of origin are different. Her family also came out to declare that their daughter is not related to the president. They did not lie. But they also did not say the entire truth. She is family A thorough investigation by Premium Times, an online newspa-

per, reveals there is some affinity between Mrs Zakari and Mr Buhari. True, there is no blood relationship like the PDP alleges. And clearly in this regard, the PDP exaggerated a great deal. Still, it has been established, even by the admission of the presidency, that Mrs Zakari and Mr Buhari are related by virtue of inter-marriage between their extended families. And at some point during Mr Buhari’s younger years, he reportedly resided with the family of the electoral commissioner. It has also been reported that Mrs Zakari and Mr Buhari worked together in the past. In the African context, and especially in the Northern tradition, Mrs Zakari would be considered family in Mr Buhari’s home and vice versa. That said, it has also been revealed that the president had little or nothing to do with Mrs Zakari’s appointment to the electoral commissionership. Contrary to popular discourse, she was not recommended to the position by Mr Buhari. A respectable member of civil society revealed to a reputable television station that he was privy to the proceedings that led to her appointment. According to him, it was Kaduna state governor, Nasir El-Rufai, who recommended Mrs Zakari for the commissionership and in fact personally handed her resume to him for submission to former president Goodluck Jonathan, who was head of state at the time. The same civil society luminary also insists that as far

‘ Mrs Zakari is a

controversial choice for such a potentially influential role. It is also highly unlikely that the INEC chief was caught unawares by the controversy the move generated

’

as he understood the meaning of the word “niece”, Mrs Zakari was indeed a niece to Mr Buhari via the marriage bond. In any case, the close association between Mr El-Rufai and Mr Buhari, and the history both gentlemen share with the unassuming Mrs Zakari, makes her conflicted. But what was the cause of the initial uproar? And why now? After all, Mrs Zakari was appointed by Mr Jonathan of the then ruling PDP, which is now in opposition. Eyebrows are raised now because Mrs Zakari was recently appointed to the headship of a “collation centre committee”, supposedly tasked with ensuring that all the logistical needs of the “collation centre” for the upcoming elections are adequately taken care of. My

view on hearing the news of the appointment was that it was a brazen and insensitive move. And even after the revelations and investigations that ensued, my view remains unchanged. Mrs Zakari is a controversial choice for such a potentially influential role. It is also highly unlikely that the INEC chief was caught unawares by the controversy the move generated. Mr Yakubu, a professor of history, likely knew the implications of appointing her to what ordinarily would be a logistics function but could be misconstrued to mean more; and could in fact be more. Besides, as the commission already has a proper organisational structure which covers operations and the like, there was really no need for the creation of an ad-hoc “collation centre committee”. True, as the INEC chief insists, Mrs Zakari would not be involved in the process of collation itself. That job is exclusively his as the chief returning officer. But this is Nigeria. And since the experienced Nigerian academic rose through the complicated Nigerian system, he is certainly not naïve to the point of not knowing the potential interpretation and consequences of the controversial appointment. No guarantees It is important to point out at this point that this controversy is raging against the backdrop of Mr Buhari’s refusal to sign what has been adjudged a superb amendment to the current electoral law that would make our elections

better. And while the Zakari controversy was still raging, INEC’s Yakubu revealed there would not be a full electronic transmission of results. Why? A backing in law is required. A pilot electronic collation would be done, however. As it stands right now, so much flexibility has been built into the electoral process that incumbents, should they choose to, would be able to steer the process in their favour. Do the needful In light of the foregoing, can INEC be trusted to deliver free and fair elections? No one can say for sure. There are a couple of things the electoral body could do to reduce fears of potential bias, however. There should probably not be a collation centre committee in the first place. It should be disbanded. As Mrs Zakari is clearly conflicted albeit largely adjudged to be competent, she should be assigned to a commissionership that would not involve direct participation in the electoral process or put her in a position to affect the outcome, if she chooses to, in a material way. Should she resign? No. And considering the commission has decided the transmission of results would not be electronic, it should do its utmost to ensure that the collation of results at each stage of the electoral process is done in the presence of all relevant stakeholders such that a parallel collation of results by non-INEC bodies would be no different from its own.

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Does IPOB really want Biafra? Tochukwu Ezukanma Tochukwu Ezukanma writes from Lagos, Nigeria maciln18@yahoo.com

t the pool of Bethesda, Jesus saw a man that had been sick for thirty eight years, and asked him, “Do you want to be made whole”? It was a question that seemed irrelevant and insensitive. But then, some are sick but do not want to be healed. Many are in school but do not want to learn. The Buhari administration is fighting Boko Haram but does not want to defeat Boko Haram. So, that seemingly irrelevant question of Jesus was actually pertinent. Ralph Uwazurike of the Movement for the Actualization of the Sovereign State of Biafra (MASSOB) once said that, “When I started talking about Biafra, I did not know what I was doing. But, as democracy allowed me the right to express myself, I started talking about it, and as people started listening to me, I continued”. That is, by his own admission, he started talking about Biafra not because he desired Biafra or had a strategy on how to actualize Biafra, but because democracy guaranteed his right to free speech. With time, he became wealthy and

renowned from talking about Biafra. Finally, he fizzled out; nobody hears of him lately. It is therefore possible to be talking about Biafra without wanting Biafra. Nnamdi Kanu is significantly different from Ralph Uwazurike. Unlike Uwazurike, he is media savvy, colourful and flamboyant. He is dashy, with a streak of showmanship and histrionics. He is a rabble-rouser that has successfully incited the passion of an impressive number of Igbo that now constitute a formidable (committed, fanatical, and almost, suicidal) following. His incongruent followers consist of the ignorant, youthful, adventurous and idealistic, with a fair sprinkling of the educated, elderly and realistic. Although his organization has more than its fair share of the ignorant and roughnecks, even, within the ranks of its leaders, it is somewhat well disciplined and structured. But, as you listen to the pronouncements of Nnamdi Kanu and observe the activities of the members of Indigenous People of Biafra (IPOB), you wonder if they really want Biafra. Nnamdi Kanu’s demand for a referendum to determine if the people of his “Biafra Land” want to remain in, or secede from, Nigeria is reasonable. After all, there had been a number of similar referendums in different parts of the world: Spain for the people of Catalonia; Canada over Quebec’s independence, United Kingdom on Scotland’s independence, etc.

However, the Nigeria government has made it very clear that it cannot, on the short run, hold such a referendum because the Nigerian constitution has no provision for it. Therefore, a referendum on Biafra is contingent on a constitutional amendment. The Nigerian Constitution can only be amended by the Nigerian legislature. First of all, 2/3 of the federal legislators both in the Senate and House must approve of such an amendment. After which it will require the approval of 2/3 of the state legislatures across the country. The governors have significant influence on the legislators. Therefore the future of the Biafra referendum, and by extension, the emergence of Biafra hinges on the Nigerian legislators and their gubernatorial mentors. All these political office holders come into office through elections. IPOB should then be advocating elections, and campaigning for the election of “progressive” legislators across Nigeria that are sympathetic to the IPOB cause; and will amend the constitution to provide for a referendum. Paradoxically, IPOB is opposed to elections in Nigeria; it is doggedly campaigning for an election boycott, especially in “Biafra Land”. There cannot be a referendum in the South East, the kernel of Biafra, without the consent, or at least, the acquiescence of Igbo political and traditional leaders. Therefore, an understanding between IPOB and Igbo leaders is a sine qua non to a referendum. Secondly, not all Igbo are pro-Biafra. Before the referen-

dum, it will be expedient to inform, persuade and convince these Igbo that are not pro-Biafra on the need to vote for Biafran independence. In educating and convincing them on the necessity of Biafran independence, Igbo political and traditional leaders with their power base and mass following will play pivotal roles. Their power structure and existing channels of influence on the masses will be very vital in this process. Therefore, IPOB should have been in working partnership with Igbo kings and political leaders in the bid to prepare and mobilize the “Biafran” masses for the referendum. Ironically, IPOB is antagonistic of the Igbo political class and traditional rulers. It characterizes most of them as saboteurs, sellouts and slaves of the Hausa/Fulani. Some Igbo are passionately proBiafra. Some others are pro-Biafra but with some reservations. There are also many that are fervently anti-Biafra. Presently, it is unlikely, but not impossible, that the proBiafra Igbo will win in a referendum on Biafra. The IPOB is insisting on the inclusion of the Ijaws, Efik/ Ibibibo, Idoma, Urhohobo, etc into Biafra. These are groups that want to remain in Nigeria, and have repeatedly stated their refusal to be part of Biafra. Their inclusion in Biafra, and consequent participation in a referendum will invariably increase the number of people voting against Biafran self-determination; thus making the defeat of the referendum inevitable.

IPOB has no military option; its only viable option is a referendum. To get the Nigerian government to agree to a referendum on Biafra will be herculean. It will demand exceptional international credibility and adroit diplomacy on the part of IPOB. IPOB will have to rouse the world conscience against the Nigerian government on a scale comparable to what the African National Congress (ANC) did to Apartheid South Africa. Over a period of more than two decades, the ANC effectively startled the world conscience with the evils of Apartheid and orchestrated an encircling global diplomatic alliance against South Africa. It was diplomatic isolation and international economic pressure that brought down the Apartheid system. Kanu’s speeches are not strategic, and do not betray any knowledge of global geo-political dynamics. They are jumbles of inflammatory statements directed at his followers, and insults and threats against the Buhari administration and Igbo leaders. His farrago of incendiary statements, insults and threats cannot bring about Biafra. It is planned out, mapped out strategic steps towards a referendum that will bring about Biafran independence. Why is Kanu ignoring this reality and dissipating IPOB’s resources on activities that are essentially undermining the prospects of a referendum?

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Tuesday 15 January 2019

Hawking the 2023 presidency

i g e r i a ’s e l e c t o r a l l a w e xpressly prohibits a candidate or his agents from engaging in campaigns along religious, tribal or sectional lines. Equally, all presidential candidates in next year’s general elections recently signed a peace pact in Abuja pledging to refrain from campaigns along ethnic lines both by themselves and by all agents acting on their behalf. But in desperation to win next year’s presidential election, president Buhari and his agents have decided on a dangerous and divisive strategy of pitting the two largest ethnic groups in the South against each other by promising both of them the presidency in 2023 in exchange for their support in 2019. Although the president doesn’t say much, he relies on his aides and agents to do most of the talking and campaigning for him, like in 2015. Perhaps the reason is to give him room for deniability in future when the move backfires. As far back as April 2018, the Secretary to the Government of the Federation, SGF, Boss Mustapha, while receiv-

ing the Ebonyi state chapter of the All Progressives Congress (APC) at his office, pointedly told them the Southeast will have a better chance of producing a president in 2023 if they give their support to the second term ambition of President Buhari. “Preach it to the other south-east states that the shortest way to Igbo presidency is to support Buhari in 2019,” Mustapha told the delegation. “The dynamics of politics can change and people that you perceive today are not with you, will be with you tomorrow”, Mustapha said warning that “the region must support the party this time around in its own interest.” In November, Mustapha, again, speaking on behalf of his boss after the president met with South East governors at the presidential Vila in Abuja minced no words when he reminded them that the region’s investment in the re-election of President Buhari in next year’s election will determine their fate in 2023 “You remember there was a programme in the South-East where Mr. President asked me to represent him and I threw the kite by telling the south-eastern states that their quickest and easiest means to the presidency is to support

President Muhammadu Buhari’s second term. Meaning that they can short circuit the period in terms of only having him there for another four years and whatever they do in 2019 will determine what will happen thereafter, because politics is a game of numbers and it is like a cooperative society,” Mustapha stated matters of fact. But while Mustapha is busy promising the South East the presidential ticket on behalf of the president, another powerful minister in his cabinet, Babatunde Raji Fashola – who holds the triple portfolio of minister of power, works and housing, is busy campaigning in his native SouthWest region also encouraging the people of the region to vote for Buhari in 2019 to guarantee a return of power to the region in 2023. Speaking in his native Yoruba, Fashola asked the audience whether they knew that “power is rotating to the South-West after the completion of Buhari’s tenure” if the vote for him in 2019? Using a local proverb, he drove the point home: “Your child cannot surrender her waist for edifying beads and you will use the bead to decorate another child’s waist”. A vote for Buhari means a return of power to the SouthWest in

2023.” He concluded by admonishing the people to do what is necessary to ensure a return of power to their region. “I am sure you will vote wisely,” he said. To show the level of desperation, even the vice president Yemi Osinbajo, has joined the fray. Few days ago, he also spoke in the same line as Fashola, in a house to house campaign in Oyo, charging the Yoruba nation to vote for President Buhari for a return of power to the South West geopolitical zone in 2023. This is immoral and disgraceful. What happens if both regions mobilise their people and vote for the president in the hope of gaining power in 2023? In desperation for reelection, the president and his team are giving hostages to fortunes, deliberately contravening the electoral law by engaging in ethnic and clannish campaigns, endangering the peace and unity of the country and preparing the ground for ethnic tensions and recriminations in the future. This is not the behaviour of a statesman or one who has the interest of the country at heart. But how do they care; their main goal is to win the 2019 elections. Thereafter, the country can go to flames for all they care!

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Access bank said to mull plans for N150bn green bond Pg. 16

C O M PA N Y N E W S A N A LY S I S A N D I N S I G H T

SERVICES

C&I leasing expects suspension lifted in “coming days” as shareholding reconciliation nears end LOLADE AKINMURELE

share recons t r u c t i o n e xercise that has dragged since last December, and caused a one-month lull in the trading of its shares, is nearing completion, the management of C & I leasing Plc said Friday, January 11. The leasing company had notified the stock exchange and shareholders on December 10, 2018 of its proposal to undertake a one for four reverse stock split, in an attempt to ensure the company had enough unissued shares to accommodate future plans to raise equity capital. Trading in the company’s shares was then suspended by the NSE to facilitate the reconstruction exercise and has remained so since then, as the share reconstruction drags. However, in a Jan 11 statement filed at the Nigerian Stock Exchange and signed by company secretary, Mbanugo Udenze & Co, the leasing company explained why the process has dragged and assured that the suspension on trading

investment from the P.E firm and the group has continued to maintain a huge presence in Nigeria’s market space. The PE firm has a 20% equity stake in CWG Plc, 5.92% stake in Custodian & Allied Insurance Plc. Other investments include AOS Orwell Ltd, Mouka Foam, Eleme Fertilizer and Petrochemicals, Fan Milk. The Dubai-based Abraaj Group, however, sold its entire stake in Egypt’s Orascom Construction in its bid to restructure following allegations of misused funds. For the Andrew Odibi-led board of the company, it has an ambitious plan to grow and make the company the go-to company for marine IOCs in the country and give investors a good return on their investment. It recently announced the acquisition of two brand new 2018 ‘ASD 2913 Tugboat which will be deployed for a long-term contract with Nigerian Liquefied Natural Gas Company (NLNG). It had earlier in July 2018 concluded the buyout of a 27.5% minority stake in C&I Petrotech Marine Ltd, the company’s marine business subsidiary, and in the process took over complete

its share will soon be lifted. “Unfortunately, due to the delay in reconciliation of the shareholding, the exercise has not been completed. we are now close to completing the exercise and the suspension will be lifted in the coming days,” the statement read. Shares have remained at N1.78 per unit since December 12, and has returned 14.8 percent in the last one year. More light has since been shed on the motivation behind the company’s share reconstruction after it emerged last week that Dubai-based private equity firm, Abraaj was converting its $10 million (N3.6 billion) loan stock in the leasing company to equity. The company will issue more shares to consummate the deal, in an exercise expected to be dilutive for existing shareholders. The additional capital will be used to finance the company’s expansion plan, extinguish some liabilities and enhance the company’s capital mix, the company said. C&I Leasing first attracted Abraaj funding in June 2006, after securing a $4 million

ownership of s I x vessels which are presently deployed in a long-term contract with Shell Petroleum Development Company of Nigeria (SPDC). The new conversion of the loan to equity could not have come at a better time when the company is working hard to clean up its debts to banks and other ‘Institutional Clients’. According to its Half year ended June 31st, 2018, C&I has a long list of creditors, from Banks, bondholders, to tax authorities. Although, the company has been able to remain relatively profitable over the years, with a meagre dividend to its Shareholders. Figures from the company’s result show that its revenue surged from N12.2 billion in 2013 to N21.3 billion in 2017. Similarly, it remained profitable over the same period with PAT increasing from N161 million in 2013 to N1.1 billion in 2017. C&I Leasing Plc was incorporated in 1990 and it specializes in the provision of services such as Fleet management, automobile distribution, marine vessel rental, equipment leasing, security and escort services.

CONSTRUCTION

Julius Berger gains on optimism over government contracts ISRAEL ODUBOLA

hares of Julius Berger Plc have rallied this year on optimism that the Federal government’s planned infratsructure works this year would rub off positively on the construction firm’s books. After emerging as the second best performing stock the previous week, Julius Berger Nigeria Plc topped the advancer’s list for the week ended Jan. 11, with a gain of 22.15 percent to close at N28.4 per share. “The upward trend in its share price reflects investor’s positive sentiments towards the stock which most likely would be driven by the fact that Julius Berger might be getting some contracts from the government or government is ready to settle con-

tractors now that elections is around the corner,” Gbolahan Ologunro, equity research analyst at CSL Stockbrokers, said. “Government heavy investment in the construction firm might have reflected in investors’ positive sentiments towards the stock, there is tendency for the stock to sustain its spot among the advancers in few weeks” Gbolahan added. Closely following Julius Berger on the leader’s chart are Diamond Bank and Transcorp Plc, whose share price grew by 12.2 and 11.21 percent to close at N2.02 and N1.29 respectively. After being on a bearish posture between last Monday and Wednesday, share price of Diamond Bank rallied in the last two days of trading. Last month, Board of

Directors of Diamond Bank announced a proposed merger with Access Bank, reaching an agreement that Diamond Bank shareholders will receive N3.13 per share, comprising of N1 per share in cash and the allotment of 2 New Access Bank ordinary shares for every 7 Diamond Bank shares held as at the implementation stage. “For Diamond Bank, investors have to be cautious about that stock considering the fact that the company has given guidance at the conference call where it was disclosed that they will be recording an impairment charge of N100 – N150 billion, the company is highly unlikely to make profits in 2018 full year, which means they will not be able to pay dividends”. An equity analyst who pleaded anonymity stated.

Cornerstone Insurance, Wapic Insurance and John Holt Plc came fourth, fifth and sixth respectively. Share price of Cornerstone and Wapic Insurance both jumped by 10 percent to close the week at N0.22 and N0.42 respectively. John Holt Plc inched by 9.09 percent to end the week at N0.48 per share. Lafarge Africa Plc and CCNN took the seventh and eighth spot, with a gain of 8.41 and 8.40 percent to end the week’s trading at N12.25 and N20 per share. “We might not really see much activity in both stocks in the coming week. I project that some investors would sell out their stock to make capital gain” Paul Aluko, equity analyst at MBC Securities says, adding that every stock is susceptible to political uncertainties for now.

Speaking further “For Lafarge (Wapco), I see investors that already bought at N11 or less selling off their stocks to make little gains and leave”. He envisioned that stocks of both cement companies might not gather momentum this week as a lot of investors prefer short-term investments for now. A snapshot into the unaudited financial statements of the cement firms showed that while CCNN had an upsurge of 96.9 percent to N4.01 billion for nine months ended at September 2018 as against N2.04 billion a year earlier, Lafarge recorded a loss. At the bottom of the advancer’s list are AG Leventis and FCMB, whose share price went up by 7.41 and 4.94 percent to end the week at N0.29 and N1.7 respectively. A total of 1, 265, 423, 489

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

units of shares were traded on the floor of the exchange this week, with the highest (385, 393, 188 units) and lowest (206, 301, 197) traded last Wednesday and Friday respectively. Diamond Bank Plc, FBN Holdings and Custodian Investment emerged as the top three traded stock by volume this week. Aggregate volume of Diamond Bank stock traded this week stood at 214, 809, 889 units while that of FBN Holdings and Custodian Investment were 127, 565, 446 units and 122, 624, 838 units respectively. Trading in top three equities namely Diamond Bank Plc, FBN Holdings and Custodian Investment accounted for 465 million shares and contributed 36.75 percent to total equity turnover volume respectively.

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Tuesday 15 January 2019

COMPANIES & MARKETS TECHNOLOGY

Why IBM’s standalone Quantum Computer is a big deal FRANK ELEANYA

n Tuesday at the Consumer Electronics Show (CES 2019) in Las Vegas, IBM unveiled its first ever standalone quantum computer designed for commercial use, beating competitors like Microsoft, Google and Intel to the race for a practical quantum computer. The IBM Q System One as the quantum computer is called was described by the company as the “world’s first fully integrated universal quantum computing system designed for scientific and commercial use”. The device is a single, tightly integrated system enclosed in an airtight case nine feet (2.7 meters) tall. It is still at experimental level. What is a quantum computer? Quantum computers are products of a branch of science known as quantum mechanics. It is a branch of science that focuses on developing computer technology based on the principles of quantum theory, which explains the nature and behaviour of energy and matter on the quantum (atomic and subatomic) level. Conventional computers store information as bits – either 1 or 0 - but in a quantum computer it is stored as qubits or quantum bits which can represent both 1 and 0 thanks to superposition. This means they can store much more information.

Apart from exponentially increasing the amount of information one can process, quantum computers are expected to be many times faster and perform more powerful tasks than any conventional computer. The big deal about the IBM Q System is that it turns an experimental quantum machine into something with reliability (and looks) closer to that of a mainframe computer. Most researchers look forward to using quantum computers to model complicated chemical reactions, a task that conventional computers cannot handle efficiently. They also hope to use quantum simulations to design entirely new molecules for use in medicine. Experts also believe that climate and weather predictions and solutions would emerge faster apart from the development of superconductors and super magnets. Heavy calculations on gravity, space travel would also become faster and easier. IBM explains that designing the Q System required the engagement of a world-class team of industrial designers, architects, and manufacturers to work alongside IBM Research scientists and systems engineers, including UK industrial and interior design studios Map Project and Universal Design Studio, and Goppion, a Milan-based manufacturer of high-end museum display cases that protect some of the world’s most precious art including the Mona Lisa at the Louvre, and the Crown Jewels at the

Vice President Yemi Osinbajo engaging some traders during the inauguration of TraderMoni at Kure Market, in Minna, Niger State.

Tower of London. “This is something IBM brings to the market that no one else really does. We know how to do integrated systems,” IBM’s VP of quantum research, Bob Sutor told the Verge. “The electronics for a quantum computer are not something you go buy off the shelf. You need a temperature controlled environment ; you need to minimize the

vibrations – anything that might disrupt the quantum calculations.” IBM Q System is also coming at a time when technology experts are worried about a supposed slowdown in improvements to conventional computers. According to a report from Wired, chip experts like Jensen Huang, CEO of Nvidia believe that Moore’s Law the phenomenon that drove exponential

gains in computing power for decades is dying. “Moore’s Law used to grow at 10x every five years and 100x every 10 years,” Huang said on a panel at CES 2019. “Right now Moore’s Law is growing a few percent every year. Every 10 years maybe only 2s… so Moore’s Law is finished.” Such sentiment is said to be behind the huge investments from organisa-

tions like JPMorgan and Microsoft in quantum computing. Currently there are 44 institutions, including Exxon Mobil, working to bring quantum computing to the world. Although the IBM Q System is still a long way from a powerful quantum computer, but it is a glimpse of what the future looks like for the next generation of computers.

ENTERTAINMENT

MultiChoice to discount DStv, GOtv Subscribers with “Step Up” promo MICHEAL ANI

ultiChoice, Nigeria’s leading video entertainment company has launched the “Step Up and Boost” promo, aimed at delighting millions of customers by offering quality services at a discounted price. From Tuesday, 15 January till Monday, 15 April, 2019 the campaign offer will give all active and disconnected DStv Compact, Family and Access customers the opportunity to pay for an upgrade package and get a boost to view programming on an even higher package within 48

hours. With this promo, DStv customers on the Access package can pay N4, 000 for Family package and get a boost to view programmes on the Compact package, while customers on the Family package can pay N6, 800 for Compact package and instead view Compact Plus package programming. Likewise, Compact customers can also pay N10, 650 for Compact Plus package and in turn get Premium package programming. Similarly, customers on the GOtv platform are also not left out of this offer. GOtv Plus, Value and Lite

customers will get upgraded to GOtv Max when they pay a reduced fee of N2, 500 while GOtv ‘tops up’ with N700. Active and disconnected GOtv Max customers can also take advantage of this limited time offer to renew their subscription for N2, 500. This campaign will give GOtv customers on Plus, Value and Lite an opportunity to experience the exciting premium content available on GOtv Max including La Liga, Serie A, FA Cup, BET, Fox Entertainment, StarLife, ROK 2 and CBS Reality and more. According to Martin Mabutho, Chief Customer Officer, MultiChoice Nigeria, the offer reiterates the

company’s commitment to give more value for money to loyal customers as they will enjoy content on a higher package than what they paid for while encouraging them to remain active to enjoy quality entertainment lined up for the year. “We are pleased to launch this first-of-its-kind offer that will give our customers the opportunity to experience the exciting programming available across higher packages at the price of a lower package. With this offer, we are giving a boost and topping up on what our customers pay for to enjoy more on our DStv and GOtv platforms. It’s our desire to make great content more

accessible and we encourage our customers to take advantage of this special offer, ” he said. Mabutho added that the offer will enable more Nigerians to stay connected and keep up to date with the latest news, sports, local content and general entertainment this first quarter. Some of the exciting programming to look forward to starting from January includes matches of the 2018/19 Emirates FA Cup. This boosts MultiChoice’s major football title acquisitions, which include the Premier League, Serie A, La Liga and Champions League. There is also the UFC, world’s premier Mixed Martial Arts (MMA)

organisation. With over 40 live events a year and 100 hours of magazine programming, DStv and GOtv fans will see the world’s best mixed martial artists regularly appearing on their screens starting Monday, 28 January. For local content, there are the critically acclaimed telenovela, Ajoche, and hilarious comedy series, Flatmates, which will debut on GOtv this month on Africa Magic. The Step-Up offer is open to both active and disconnected DStv Access, Family and Compact customers while subscribers on GOtv Lite, Value, Plus and Max are also eligible for participation.

Tuesday 15 January 2019

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Tuesday 15 January 2019

Business Event

BANKING

Access bank said to mull plans for N150bn green bond LOLADE AKINMURELE

ccess bank plans to raise a N150 billion green bond this year, sources familiar with the matter told BusinessDay. Also known as climate bonds, green bonds are innovative debt instruments intended to encourage sustainability and to support climate-related or other types of environmental projects. Essentially, climate bonds are designed to leverage resources from domestic and internationalcapitalmarketstodrive sustainable development. In December 2017, Nigeria becamethefirstAfricancountrytoissue asovereigngreenbond.Thecountry alsobecametheworld’sfourthsovereign issuer of green bonds. Access also plans to raise N75 billion in rights issues this year and had long disclosed finalising the terms to raise some $250 million in tier II capital that would be ready for drawdownbeforetheendofJanuary. The bank’s management said the capital raising plans have not be made entirely with the Diamond merger deal in mind, instead it is in line with a long standing culture of having robust capital with which to do business. According to CEO Herbert Wigwe, “Access Bank has enough capacity to consummate the merger without additional capital.” “However, we are also taking

steps to ensure that in line with international best practice and the need to create a capital buffer, the new institution that is being created willhaveadequatecapitaltosupport itgoingintothefuture,”Wigwesaidin a press briefing last month. AccessBank,inDecember2018, announced it had signed a memorandum of agreement with Diamond bank for a merger between both entities in a cash and share deal worth N72 billion. In the deal to be concluded before the end of the first half of 2019, Access is offering a cash consideration of N1 per Diamond Bank share, representing a total cash amount of N23.160 billion, and the allotment of 6.62 billion new Access Bank ordinary shares, representing the two new Access Bank ordinary shares for every seven Diamond Bank shares. The bank said the offer represented a premium of 260 per cent to the closing market price of N0.87 per share of Diamond Bank on the Nigerian Stock Exchange as of December 13, 2018, the date of the final binding offer. The new Access shares to be issuedtoDiamondbankshareholders and the planned rights issues have sparked fears of a dilution for existing shareholders, causing a sell-off that has seen the bank’s share price decline by 25 percent to N5.6 as at Friday from N7.45 on December 14 when the bank first confirmed the

merger deal. Meanwhile, selling pressure continued to prevail in the banking sectorlastweek,asinvestorsshowed nosignofhaltingasell-offinNigerian stocksthathasbeenfannedbypoliticaluncertaintyandvolatileoilprices. The NSE banking index shed 0.91%, dragging the return for the year to -3.87%. There were six (6) gainers and six (6) losers at the end of the week, settling the sector breadth at equilibrium. DiamondBankwasthebestperformingstockinthesectorthisweek, as its price advanced by 12.22% to settle at NGN2.02. Other gainers in the week were First City Monument Bank (FCMB) which gained 4.94%, Fidelity Bank (+4.17%), Wema Bank (+1.69%) and Zenith Bank (+0.69%). On the flipside, Unity Bank was the worst performing stock, shedding 17.00% to close at NGN0.83. OtherlosersintheweekwereUnited Bank for Africa (UBA) which shed 6.96%, Ecobank (-3.57%), Access Bank (-2.59%) and Stanbic IBTC (-0.75%). “Although buying pressure reigned on the last trading day, it was not sufficient to secure a positive close for the week,” analysts at Meristem Securities said in a note to clients. “Intheabsenceofanysignificant company news, we do not expect any major bargain hunting in the sector next week,” the Lagos-based investment bank said.

BANKING

Zenith Bank unveils account blocking code IHEANYI NWACHUKWU

oised to ensure its customers are protected and operate their accounts in a safe and secure environment, Zenith Bank has scored yet another first with the introduction of Account Blocking code *966*911#. A statement by the bank at the weekend said customers who suspect their accounts have been compromised, or who lost/misplaced their debit (ATM) cards

can dial the Block Account Code *966*911# on the phone numbers registered with the account to secure their funds. This has become necessary as the bank plays deeper into the retail end of the banking industry, byleveragingtechnologyandarray ofinnovativeproductsasitworksto deepen financial inclusion in conjunction with regulators of the nation’s financial system regulators. Other codes as part of the Eazy Way banking offered by Zenith Bank include the *966# to ease ac-

L-R: Wasiu Abiola, head Of Media, Digital And Sponsorship NB Plc, Sarah Agha, portfolio manager, National Premium Brands, NB Plc, and Oludare Olateju, senior brand manager, Star Lager Beer, at the Fourth Edition Of Joor Concert Powered By Star lager Beer in Lagos.

L-R: Ayo Odusolu, Old student, 88 set, Saint Finbarr’s college; Tope Talabi, President 88 set, Saint Finbarr’s college, and Femi Adefowokan, Old student, 88 set, Saint Finbarr’s college, at the 30th anniversary of Saint Finbarr’s college 88 set at the School compound in Lagos recently.

countopeningprocessbypotential customers;whilecheckingaccount balancehasneverbeeneasierthan dialing *966*00#. Customers who desire to reset their Personal Identification Number (PIN), or Password, the bank continued, can do so from the comfort of their homes with *966*60#. To update Bank Verification Number(BVN),thestatementsaid customers can dial *966*BVN#; anddial*966*Amount*MobileNo.# to buy airtime.

PROFESSIONAL SERVICES

Meristem bolsters investor confidence with GIPS compliance MODESTUS ANAESORONYE

eristem Wealth Management Limited, a subsidiary of Meristem Securities Limited has boosted investor confidencewithcompliancetothe Global Investment Performance Standard(GIPS),emergingthefirst asset management firm in Nigeria to claim compliance. With this feat, it means that the firms reporting standard could be comparable to what obtains in other advanced markets, which enhances investors confidence in the areas of transparency, risks management and ethical practice. The Global Investment Performance Standards (GIPS) are guidelines created by the Chartered Financial Analysts (CFA) Institutetoprovideethicalframework for the calculation and presentation of the performance history of investment management firms. Sulaimon Adedokun, head, Wealth Management, Meristem Wealth Management Limited speaking at the Meristem GIPS Compliance declaration event in Lagos said this will ensure that

the asset management unit’s processes, policies and procedures are committed towards ensuring that performance results, calculations and presentation to clients are doneinaccordancewiththeindustry’s best practices and standards. “This then makes it comparable to how same performance resultswouldhavebeencalculated and presented if the clients were basedinGermany,Toronto,Tokyo, North America and other parts of the world.” Adedotun stated that compliance to GIPS make the rest of the world look at Nigeria’s Meristem as a global firm in international standard, stating that it aligns with itscommitmenttoprofessionalism and integrity with customer at the core of its growth drive. ‘Becoming the first and only Nigerian Asset Management firm toclaimGIPScomplianceissimply Meristem Wealth Management Limited living out its brand promise to grow wealth for our clients’ in good time and an atmosphere of transparency.” FolasadeOdunaiya,pastpresident of CFA Society of Nigeria who

represented the global organisation said with compliance to GIPS, Meristem Wealth Management Limited is sitting on the right ground to offer services to global investors. “This is window to global opportunities as investors all over the worldwillgoingforwardbelooking to what Meristem is doing, and this will guarantee sustainability”. KehindeIbrahim,head,PortfolioManagement,MeristemWealth adding his voice said “For us a firm, GIPS compliance is something we are happy to complete”. Going forward, our reporting can be placed side by side with other global fund managers. “Claiming compliance with GIPS is no mean feat but it’s worth achieving for the investment terrain in Nigeria and for the sake of our treasured clients who have givenustheprivilegetoservethem. We constantly seek to be open and transparent in all our dealings with our clients, they have our best assurance as we have successfully walked our talk in becoming the first and only GIPS compliant firm in Nigeria, the Company said.

Godwin Obaseki (2nd r), governor, Edo State; Mika Amanokha (r), commissioner for Youth and Special Duties, Edo State; Njoku Chika (2nd l), Representative of the Controller-General of the Federal Fire Service and deputy controller officer, South-South Zonal Command, and Makinde Iskilu (l), commandant, Nigeria Security and Civil Defence Corps (NSCDC), Edo State, during the courtesy visit by Officials of the Federal Fire Service, at Government House in Benin City, Edo State.

L-R: Christopher Oji, Former President, Crime Reporters Association of Nigeria (CRAN); Olatunji Disu, commander, Rapid Response Squad (RRS), ACP, and Moses Omoregie, CRAN Executive member, during presentation of award to Commander RRS as 2018 CRAN Man of the year in Lagos.

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Tuesday 15 January 2018

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Oil&Gas

Preowei field awaits Total’s FID in 2019

DIPO OLADEHINDE

n 2019, investors and stakeholders in the Nigeria oil and gas sector will be keeping an eagle eye on the relatively unknown Preowei field which is awaiting Final Investment Decision (FID) from French major Total. The field which was discovered in 2005 will be developed as a tie back to the Egina FPSO, the largest deepwater floater that Total ever deployed. The Preowei field is expected to produce around 70,000boepd (barrel of Oil equivalent per day) at peak. “Egina will significantly boost the Group’s production and cash flow from 2019 onwards, and benefit from our strong cost reduction efforts in Nigeria where we have reduced our operating costs by 40peercent over the last four years,” Arnaud Breuillac, president Exploration & Production said in a press statement. “Furthermore, some upside potential nearby remains to be developed and we are studying in particular Preowei discovery tie-back to the Egina FPSO.” The evaluation of the results of the Preowei-3 well, concluded in late November 2017, indicate an addition of approximately 80 to 100 Million barrels of oil (MMbo) to the full field contingent recoverable resources, bringing them to 140 to 200MMbo. Preowei is the third producible oil accumulation in OML 130, which hosts the giants Akpo (in production since 2009) and much talked about Egina project. The Preowei-3 well, drilled to a final depth of 3,235 meters, encountered approximately 50 metres net of high-quality oil-bearing sandstone reservoirs, in line with expectations. The well confirms previous results from the Preowei-1B and Preowei-2 wells, which encountered approximately 55 metres of oil-bearing

sandstone reservoir which means that Preowei can be developed as a field, and deliver around 40-50,000barrels of oil a day (BOPD). The French major began to talk up the possibility of producing Preowei in December 2017 when, after drilling Preowei-3, it reported an addition of approximately 80 to 100 Million barrels of oil (MMbo) to the full field contingent recoverable resources, bringing them to 140 to 200MMbo. The Preowei-3 well, drilled to a final depth of 3,235 meters, encountered approximately 50 metres net of high-quality

oil-bearing sandstone reservoirs, in line with expectations. The well confirmed previous results from the Preowei-1B and Preowei-2 wells, which encountered approximately 55 metres of oil-bearing sandstone reservoir. Recall, Total started up production on December 29, 2018 from the Egina field, located in around 1,600 meters of water depths, 150 kilometers off the coast of Nigeria. At plateau, the Egina field will produce 200,000 barrels of oil per day, which represents about 10 per cent of Nigeria’s production. Total E&P Nigeria Limited (“TEPNG”),

an affiliate of TOTAL has operated in the upstream sector of the Nigerian hydrocarbon industry for more than 50 years and has added over 3 billion barrels of oil equivalent to Nigeria’s production to date. Incorporated in Nigeria in 1962, TEPNG has maintained strong and steadfast partnerships with the Nigerian Government, the Nigerian National Petroleum Corporation (NNPC) and several indigenous companies, in developing the country’s hydrocarbon industry. TEPNG operates and holds a 40percent interest in the NNPC/TEPNG Joint

Venture, producing oil and natural gas from several onshore and shallow water concessions. Another Total affiliate, Total Upstream Nigeria Limited (TUPNI), operates the Akpo field in OML 130 deepwater lease and is currently developing the Egina field. In addition, TEPNG has non-operated interests in the SPDC-operated joint venture (10percent), the Bonga field (12.5percent) and the Usan field (20percent). Total also has a 15percent interest in Nigeria LNG, which currently operates 6 LNG liquefaction trains on Bonny Island.

LNG

Australia, US in race for LNG market dominance this year ISAAC ANYAOGU

lobal LNG production rose to 316million tonnes in 2018, a 9.6% increase over 2017 figures driven primarily by new volumes from Australia, the United States and Russia and these countries are positioning to push over 361.5million tonnes in 2019 according to LNG Edge Supply Forecast. The United States alone is primed to push over 17m tonnes of new LNG production into markets in Asia where there is demand growth. “We expect that Australia will overtake Qatar in 2019 as the largest LNG exporter on an annual basis. But the US is now the major growth market. US LNG production could hit almost 38m tonnes this year – a 10% share of the market, and 61m tonnes in 2020, a 16% share,” said Ed Cox, global ICIS LNG editor, an energy commodity information provider. Australia’s exported over 68m tonnes in 2018, a rise of almost 13m tonnes from 2017 with shipments from Chevron’s Gorgon and Wheatstone LNG projects making significant additions. Analysts expect the country’s exports could reach

78.4m tonnes, this year and reach around 81.9m tonnes in 2020. The US finished fourth last year behind Australia, Russia and Qatar with production of 20.6m tonnes, a 6% share of global supply. The rise in US production came from Dominion’s Cove Point plant and Cheniere’s Sabine Pass, where Train 5 started up. Delays to the start of Sempra’s Cameron and Freeport LNG plants means the impetus from the US will come more from 2019 and it will overtake Australia as the fastest-growing market, analysts at ICIS said. Betting on Asia A WoodMac research found that seven major buyers of the world’s Liquefied Natural Gas (LNG), CNOOC, PetroChina, Sinopec, CPC, JERA, KOGAS and Tokyo Gas which accounts for half of global volume could see their total uncontracted demand rising fourfold by 2030 providing opportunity for savvy producers. The four-decade old global research and consultancy firm says these Northeast Asian players have become active again in global LNG contracting activity, with over 16 mmtpa of contracts

announced this year pushing forecast for uncontracted demand volume to 80 million tonnes per annum (mmtpa) by 2030. 2019 could be a record year for LNG project sanctions with over 220 mmtpa of gas targeting final investment decision (FID). Some of the less prepared or competitive projects will slip into 2020 and beyond, but nonetheless a bumper year beckons, says WoodMac. But the market belongs to suppliers who can meet the changing needs of major LNG buyers as they seek a variety of contracts to meet their different needs. In

addition to price, factors such as contract flexibility, index, source diversification, upstream participation and seasonality will all be considerations, it said. “Market liberalisation and uncertainty on longer-term demand in more mature markets, such as Japan, South Korea and Taiwan, will mean more room for spot and short-term purchases,” said Nicholas Browne, research director. “While oil indexation will continue to dominate markets due to familiarity and ability to hedge, Asian buyers should be more inclined towards hub indexation to boost diversity and enable sales into

Europe.” African Producers Major African LNG producers including Algeria and Nigeria will add volumes to the market as well in 2019. If the LNG train 7 can reach FID in 2019, Nigerian volumes could jump to 30m tonnes. Cameroon offers hope for new capacity addition. The country’s $1.2bn Hilli Episeyo LNG project, which started full commercial operation in early June 2018 has a production rate of approximately 2.4mn t/yr. Mozambique’s first liquefied natural gas export project is under construction but two much larger developments are targeting final investment decisions in 2019. It could become the sixth-largest LNG producer in the world by the mid2020s with investments. ExxonMobil and Eni are developing one project and Anadarko, the second with a combined development cost of $55 billion and would bring 28 million tonnes of annual liquefaction capacity on stream by 2025. But huge demand does not immediately translate into value for producers until they make the required investments.

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Tuesday 15 January 2018

ENERGY INTELLIGENCE Oil/Gas

Nigeria spent N125bn on pipeline repairs in one year DIPO OLADEHINDE

…over 60 million tons in annual production capacity projected STEPHEN ONYEKWELU

etween August 2017 and August 2018, Nigeria spent N125billion repairs and maintenance of leaking pipelines carrying crude oil from wells to flow stations in the Niger Delta, where more than 90 percent of the country’s crude is produced. In Nigeria, petroleum and associated products are transported through extensive network of pipelines that run across different locations throughout the country from remote to populated areas. These pipelines are however, poorly secured, thereby making them targets of repetitive attacks by vandals and this has cut the country’s revenue from oil and gas by half. According to September report from the Nigeria National Petroleum Corporation (NNPC) from August 2017 till December 2017 Nigeria incurred a huge cost of N47 bilion maintaining and repairing its oil pipelines while within the first quarter( January to March) of 2018 another N25 billion on keeping its old pipelines actives. In the second quarter (April, May June) of 2018, Africa biggest economy spent N35 billion on pipelines maintenance cost while in July and August another N5.4 billion an N8 billion was spend respectively. Ademola Henry team leader at the Facility for Oil Sector Transformation (FOSTER) questioned why government is still deciding to operate pipelines when the cost centers are too high. “Anytime NNPC can’t find anywhere to hide expenses that they have incurred they just recorded them as loses under pipeline repairs which is very sad,” Henry said by phone. The team leader at FOSTER said the other major questions such as who are the buyers of

the petroleum product also needs to be asked He advised that the federal government should “deregulate the sector and commercialize the pipelines and allow it operate on a tariff model which will further block leakages.” “The allegation in the industry now is that the biggest beneficiaries of pipeline vandalism are the Military’s Joint Task force, which is very sad,” Henry concluded. Despite the huge amount of money spent on pipeline maintenance, NNPC report also revealed the country recorded a total of 1,883 pipelines breaks within September 2017 and September 2018. From September to December 2017 the NNPC reported 508 vandalised points while in the first quarter (January to March) of 2018, Nigeria recorded 588 vandalised points. In the second quarter of 2018 (April, May, June), Nigeria recorded 372 vandalised point which was lower compared to the 415 vandalised point recorded in the third quarter (July August

September) of 2018. Ayodele Oni, energy lawyer and partner at Bloomfield law practice said the problem of pipeline vandalism is broad. “When you have problem surrounding unemployment, corruption, poverty, neglect and lack of social infrastructure this is what you get.” “Government needs to give the locals a sense of belongings like job opportunities, education, and infrastructure and stop giving money to local chiefs,” Oni said. Nigeria is too dependent on pipelines, says Oni, “Therefore we need to develop our transport system for easy movement of crude oil for example explore the opportunities in the rail system which is what other countries are doing.” Statistics from the latest audit report of the Nigeria Extractive Industries Transparency Initiative, (NEITI) Nigeria recorded the highest crude oil loss in the last 18 years with an average of 245 million barrels of oil going down the drain in 2016.

Deals

Penspen lands Nigeria Morocco gas pipeline

K-based oil and gas engineering and management services provider Penspen has received a contract to carry out the first phase of the Front-End Engineering and Design (FEED) of a proposed 5,700km gas pipeline from Nigeria to Morocco. The contract was awarded by the Office National des Hydrocarbures et des Mines (ONHYM) a Moroccan national hydrocarbon exploration company and the Nigerian National Petroleum Corporation (NNPC). The scale of the trans-African pipeline contract will include reviewing the feasibility study, which was also conducted by Penspen, and evaluating the gas supply and demand study providing assistance in marketing and promoting the pipeline project to prospective stake-

LNG spot market rise may not foreshadow supply glut in 2019

holders. Penspen will also complete an environmental and social impact assessment. “As the development of this proposed regional gas pipeline linking Nigeria with Morocco and several other West African countries progresses,

Penspen remains fully committed to the course and is confident that we have both the necessary experience and the required expertise to support the delivery of an optimal FEED study for the development of this pipeline,” Penspen CEO Peter O’Sullivan said in a company statement.

Once the study is completed, the client will be able to embark on the second phase of the FEED following which a Final Investment Decision (FID) could be made. Penspen will use the services of Dar Al-Handasah, Crestech and Control Risk to carry out special studies required for the FEED services, environmental impact assessment, Nigeria gas supply study and risk study respectively. The NNPC and Morocco’s National Office of Hydrocarbons and Mines agreed on a 5,660-kilometre on and offshore route as well as the CAPEX for the project in June 2018. The final investment decision is expected after the second phase of the FEED. According to NNPC, the project will help West African nations meet their energy needs and will also strengthen Nigeria’s export potential to Europe.

utlook for liquefied natural gas (LNG) spot market has been bullish due to millions of tons in developed capacity coming on stream in 2019 and fears about possible glut but energy analysts at Wood MacKenzie disagree. According to the Wood MacKenzie report, over 60 million tons in annual production capacity was due for final investment decision this year. This is a record number and a significant increase on the 21 million tons in capacity sanctioned in 2018. This could tip the market into oversupply, but not this year because LNG projects take years to build. Rising LNG spot market activities usually point to availability and possible oversupply, which in turn imply downward pressures on prices. However, energy experts in Nigeria suggest this may not impact significantly on Nigeria’s LNG exports because Africa’s largest crude oil producer has long-term sale and purchase agreements (PSAs) on its cargoes with buyers. This will not have much impact on Nigeria Liquefied Natural Gas (NLNG) Limited’s exports unless it persists for a long time. Traditionally, the LNG market was dominated by long-term off-take contracts. Without such arrangements it would not have been possible to make the significant capital investments in extraction, transportation, storage and re-gasification that are all necessary to build the LNG supply chain. “Global LNG market is currently soft due mainly to natural gas supply glut in the United States of America. Economic growth in China, India, South Korea and South East Asian countries are also critical factors. Slow economic growth in Asia will dampen the market” Wumi Iledare, professor of energy economics at the Centre for Petroleum, Energy Economics and Law, University of Ibadan, said on a phone interview. “The spot market will not replace futures market in the long run though.” In terms of LNG suppliers, in addition to the traditional resource-back suppliers such as Qatar, Australia, Indonesia, Trinidad and Nigeria, increasing numbers of multi-national oil companies, national oil companies and investment banks are setting up trading houses in major trading hubs such as London, Houston and Singapore to service LNG spot cargo customers from Europe and Asia. The purchase of spot cargoes in the last couple of years was mostly by Northwest Europe (in particular, the United Kingdom) and Asian countries such as Japan, Korea, Taiwan and China. Japan has been scooping up large quantities of LNG since 2011 for power generation, after the Fukushima earthquake paralysed several of its nuclear power plants. Korea, requiring cargoes mainly for heating during winter months, has been a major participant in the short-term and spot market. “Our forecast for 2019 is for title transfer facility (TTF) to average US$6.9/mmbtu (from US$8/ mmbtu in 2018) and Asian LNG spot prices to average US$8.5/mmbtu (from US$10.3/mmbtu in 2018) assuming normal weather patterns” energy analysts at Wood MacKenzie stated in a recent report. Last year saw some large-scale additions to production capacity such as Shell’s Prelude and Inpex’ Ichthys, both offshore Australia, and Novatek expanded its Yamal LNG facility. U.S. LNG production is also at a record high, with S&P Global Platts reporting LNG plant feeds hit 5.12 billion cubic feet daily in the last week of 2018. The LNG spot and short-term market has increased exponentially over the last 10 years and now represents 20 per cent of the total global market for LNG.

Tuesday 15 January 2018

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Francesco La Camera Renewables set to upset global geopolitical balance appointed as new IRENA DG Market

ISAAC ANYAOGU

he global energy transition spurred by renewables may upset current geopolitical and socioeconomic systems resulting in changes in the relative position of states, the emergence of new energy leaders, more diverse energy actors, changed trade relationships and the emergence of new alliances, political and business leaders fear. In a new report launched January 10, at the Assembly of the International Renewable Energy Agency (IRENA), the Global Commission on the Geopolitics of Energy Transformation says the geopolitical and socio-economic consequences of a new energy age may be as profound as those which accompanied the shift from biomass to fossil fuels two centuries ago The Commission’s report ‘A New World’ suggests that the energy transformation will change energy statecraft as we know it. “Unlike fossil fuels, renewable energy sources are available in one form or another in most geographic locations. This abundance will strengthen energy security and promote greater energy independence for most states. “At the same time, as countries develop renewables and increasingly integrate their electricity grids with neighbouring countries, new interdependencies and trade

patterns will emerge. The analysis finds oil and gas-related conflict may decline, as will the strategic importance of some maritime chokepoints,” IRENA said in a release announcing the report. Olafur Grimsson, the former President of Iceland and the Commission chair, said: “This report represents the first comprehensive analysis of the geopolitical consequences of the energy transition driven by renewables, and a key milestone in improving our understanding of this issue,” said Commission Chair The renewables revolution enhances the global leadership of China, reduces the influence of fossil

fuel exporters and brings energy independence to countries around the world. A fascinating geopolitical future is in store for countries in Asia, Africa, Europe and the Americas. The transformation of energy brings big power shifts, says Grimsson. Adnan Amin, Director-General of IRENA said this transformation can also mitigate social, economic and environmental challenges that are often among the root causes of geopolitical instability and conflict. “Overall, the global energy transformation presents both opportunities and challenges,” said Amin. “The benefits will outweigh the challenges, but only if the right policies and strategies are in place. It is

imperative for leaders and policy makers to anticipate these changes, and be able to manage and navigate the new geopolitical environment.” The Commission says countries that are heavily reliant on fossil fuel imports can significantly improve their trade balance and reduce the risks associated with vulnerable energy supply lines and volatile fuel prices by developing a greater share of energy domestically. With energy at the heart of human development, renewables can help to deliver universal energy access, create jobs, power sustainable economic growth, improve food and water security, and enhance sustainability, climate resilience and equity.

he International Renewable Energy Agency’s assembly has on 13 January selected Francesco La Camera to be the next DirectorGeneral. The appointment took place during the 9th Assembly of IRENA, the ultimate decision-making body of the agency. La Camera will take office on 4 April 2019, succeeding Adnan Z. Amin, who has been IRENA Director-General since 2011. Francesco La Camera currently serves as the Director General for Sustainable Development, Energy and Climate at the Italian Ministry of Environment, Land & Sea. La Camera led the European Union and Italian negotiation teams at the climate COP 20 in Lima and was the head of the Italian delegation to the three previous COPs. He has represented Italy in many international forums including at the EU, UNECE, UNCSD, UN Environment, and the OECD. From 2003 to 2010 he was also Professor of Environmental and Land Economics at the Faculty of Engineering of the University of Rome Tre. La Camera has a degree in political science from the University of Messina. He is elected for a term of four years. After assuming office as DirectorGeneral, he will lead the IRENA Secretariat and the implementation of the Agency’s work programme and budget. With a membership approaching near-universality, IRENA serves as the principal platform for international cooperation on renewable energy, providing a centre of excellence for knowledge and innovation which supports countries world-wide in their transition to a sustainable energy future.

Mambila Power Project: Fashola responds to Adesanya’s allegations

abatunde Fashola, Nigeria’s Minister of Power Works and Housing has responded to allegations by Leno Adesanya, CEO of SPTCL Limited that the loan negotiations for the Mambila power project have stalled since 2017. “It has therefore become necessary to debunk the lies and resist the unjustified and malicious attack” a 13 January press statement signed by Hakeem Bello, special adviser, communications to the minister stated. The project, a 3,050-megawatt hydropower facility, had reportedly stalled owing to legal and funding crises after Sunrise Power and Transmission Company Limited (SPTCL), a local content partner, was allegedly side-lined in the project by the ministry of power, works and housing.

However, the minister has held that Adesanya allegations were “spurious and unfounded” with regards to the “ongoing Mambila Power Project” the press statement was meant to “save the innocent members of the public from the rather misleading and offensive publica-

tion widely circulating in various media platforms.” Part of Adesanya’s allegation was that the project had stalled because Fashola attempted to utilise $600 Million (equivalent of N219 Billion) from the 3,050MW hydropower project for a “pet project” not hitherto considered

Analysts: Isaac Anyaogu (Team Lead), Stephen Onyekwelu, Dipo Oladehinde

by the Federal Executive Council. “There is currently no budgetary provision or cash provision of $600 million or the N219 Billion in any budget of the Federal Government for the Mambila Project. Therefore you cannot attempt to divert what does not exist” the minister said. Fashola has held that Adesanya wants to “claim undue credit and attract unwarranted attention and sympathy.” The press statement refuting Adesanya’s allegations added that for the avoidance of doubt, the China Exim Bank disburse money to specific projects and on conclusion of negotiations, the loan will be devoted to the construction of the Mambila Power Project, which has been on the drawing board for close to 40 years before the advent of the

Buhari administration which is now working assiduously to get the project off the ground. “The Federal Executive Council which is the highest decision making organ of the Executive Arm of Government never awarded a contract for the project to Adesanya. The allegation with regard to stalling the Mambilla project is untrue, baseless and a figment of Adesanya’s imagination” the press statement added. Fashola claimed that the events and relevant facts will show that because a memo on the Mambilla Power Project was first presented to the Federal Executive Council in August 2017; which was the first ever Federal Executive Council approval given to the Mambilla project in favour of a Chinese Joint venture.

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Harvard Business Review TALKING POINTS Public Works $2.5 trillion: According to a report by McKinsey and Company, countries around the world spend about $2.5 trillion a year on public infrastructure projects. +

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Tips & Talking Points Tips for managing your most creative employees

Hot Off the Press Twentyfold: The number of digital publishing unions in America has increased twentyfold in the last nine years. + The New Travel Agents 20%: The largest online travel booking websites (Expedia, Booking Holdings and C-Trip) made up nearly 20% of global travel market sales in 2017.

ome bosses wonder how to manage creative people. Research suggests that they may in fact have a different type of personality. But that doesn’t mean you need to manage them in a completely different way — a lot of the same rules apply. Here’s what to focus on: Make sure there’s a good fit between their creative tendencies and their role, so you can tap into the full range of their talents. Surround them with detail-oriented project managers who will handle the implementation of their ideas. Don’t worry if their approach to work is nothing like yours — as long as they’re meeting deadlines.

After a vacation, approach your to-do list thoughtfully

oming back from vacation can be painful. But you can do a few things to make the return easier. Use your first 30 minutes in the office to look through what’s on your todo list and make a plan for it. Keep in mind that what’s most urgent now may not be what was most urgent before your time away. Check in with key people to discuss what you missed and what needs your attention. Thank anyone who covered for you, and ask them what they need from you now. If you

When you want to gossip about someone at work,

Long Fall 35%: Microsoft’s stock price dropped by 35% during Steve Ballmer’s tenure as CEO from 2000 to 2014. + College Country 40%: In the Scandinavian countries, 40% of adults have higher education degrees. +

Tuesday 15 January 2019

Prove that your company truly values creativity by rewarding people who come up with innovations. And apply the right amount of pressure to projects — too little will lead to a lack of motivation, and too much will create stress that inhibits creativity. Organizations that provide their most talented people with personalized development plans and mentoring opportunities, and that promote a culture of support and inclusion, will benefit from increased creative performance.

(Adapted from “Motivating Your Most Creative Employees,” by Tomas Chamorro-Premuzic and Reece Akhtar.)

e all get frustrated with colleagues from time to time. But complaining about a co-worker behind their back can be destructive. It erodes trust on the team, risks hurting the person’s feelings and makes you look bad. The next time you’re tempted to complain about someone, stop and ask yourself why. If it’s to justify your feelings or to confirm that you’re right, don’t do it. On the other hand, if you’re having a problem with a co-worker and want someone else’s take on the issue, or you want to brainstorm helpful solutions, then go for it. And when someone comes to you for a gripe session, pivot the conversation away from complaining and toward problem-solving. You can also adopt a “tell them first” policy with your colleagues, meaning you’ll let someone vent to you about a co-worker — as long as they’ve already talked to that coworker about the issue. (Adapted from “Stop Complaining About Your Colleagues Behind Their Backs,” by Deborah Grayson Riegel.)

The 3 kinds of people you want on your big new project Create an inclusive support group for working parents

have to read all the emails that came in while you were away, start by scanning your inbox for key names — your boss’s or a big client’s — and read those first. And as you resume work, don’t let the vacation glow fade. Take moments to remember the best experiences of your time away, and use them to tap into the joy or calm you need to stay energized.

(Adapted from “How to Minimize Stress Before, During and After Your Vacation,” by Tristan Elizabeth Gribbin.)

hen you’re staffing a highprofile project, you want an all-star team. But it’s not enough to put your high performers on the task. There are three types of people who should be on the team of any breakthrough initiative. First, look for employees who are comfortable with uncertainty. You need individuals who will remain curious and focused even when the project is far from the end goal. Second, be sure you have people who create structure within chaos and take action. These workers can drive a team forward even when

circumstances change. Finally, find employees who have a combination of three critical traits: divergent thinking (the ability to connect seemingly unrelated information and ideas); convergent action (the ability to execute on ideas and create something tangible); and influential communication (the ability to share knowledge in a coherent, compelling way). Lots of people have one of these critical traits, but your project team needs employees who have all of them.

(Adapted from “If Your Innovation Effort Isn’t Working, Look at Who’s on the Team,” by Nathan Furr et al.)

support group at the office can be a boon to working parents. But companies should make sure their group is as inclusive as possible. It shouldn’t be just for moms — working parents can be male, female, biological, adoptive, gay, straight, from every conceivable background, and from all parts and levels of the organization. If you’re spearheading the creation of a support group, it’s your job to make sure every single parent in your company gets the message that they are welcome. Start by ensuring that the group’s leadership is diverse;

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

prospective members will want to “see themselves” in its composition. Be sure to keep communications welcoming, too: In emails, for example, go out of your way to specify that the group is open to everyone. And don’t be afraid to get personal: If you sense that any parent in the company might feel left out, walk down the hall and invite him or her to the next meeting.

(Adapted from “How to Launch a Working Parents’ Support Group in Your Organization,” by Daisy Wademan Dowling.)

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Tuesday 15 January 2019

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Nigeria losing out on multi billion naira local tech hardware manufacture Jumoke Akiyode-Lawanson

ocal content; how to encourage production and patronage of local content is probably one of the most talked about subject in Nigeria’s Information Communication Technology (ICT) sector. Several seminars, conferences and ICT events have been held in the past few years, where industry stakeholders continue to clamor for the immediate implementation of Nigeria’s local content policy. In fact, the federal government, a few years ago, mandated that all government Ministries, Departments and Agencies (MDAs) use only locally developed or produced ICT solutions and equipment. However, it has become apparent that the focus on ‘local content’ promotion is geared mainly towards software solutions while hardware production is still somewhat ignored, as Nigeria heavily depends on China for technology hardware supply. Data from the National Information Technology Development Agency (NITDA) shows that Nigeria, with a population of over 180 million people has only about six functional local Original Equipment Manufacturers (OEMs). Listed on the NITDA website are; Brian, Zinox, VEDA, RLG global, BETA computers and Coscharis Technologies. Sadly, it seems that Omatek computers have stopped operating since the death of Florence Seriki, its founder and CEO. This is a huge difference in numbers compared to the over 100 registered corporate members of software practitioners recorded by the Institution of Software Practitioners of Nigeria (ISPON) in 2017. Interestingly, the African continent accounts for a significant portion of the world’s natural resources, much of which are used for the manufacturing of ICT devices. For instance, 71% of the world’s tantalum- a key resource for laptops and other electronics, comes from Africa. Many rechargeable batteries use cobalt and Africa accounts for 58% of the global production of cobalt and the list goes on. Nigeria is a gateway

to sub-Saharan Africa. Our country is strategically located between West and Central Africa, and this gives investors easy access to close to 190 million Nigerians and another 200 million West Africans. However, the country and continent at large continues to heavily depend on importation of hardware technology. Isa Ali Pantami made this disclosure while speaking at the GITEX 2018 technology conference in Dubai on Wednesday October 17, 2018, saying that as Nigeria starts to focus on growing the non-oil sector for the benefit of the economy, investors should take the opportunity to invest in the country’s ICT sector which has a ready pool of young “digital natives”. “With a population having an average age of 18.2 years, Nigeria is the 22nd youngest country on earth. The youthfulness of our population is an asset and the fact that many young Nigerians are ICT enthusiasts even makes it better. Investors can be assured of accessing a large pool of youthful and skilful employees at a fair-price, more cost-effective that engaging employees in other parts of the world,” Pantami said. African startups raised $560million in 2017 and Nigerian startups

accounted for $114.6million of this amount. These investments and stories of innovation underscore the viability of the Nigerian startups and the capacity of Nigerians to conceive ingenious ideas. This amount of money would possible increase significantly, if hardware technology production gets just as much attention and focus as software production and export. Paul Uzoechina, Admin Secretary, ISPON told BusinessDay that “the list of local software developing companies is quite exhaustive and a good number of applications developed by our members are currently used in banks, financial institutions, MDAs and other organisations.” Apart from the earlier mentioned popular OEMs that assemble hardware technology in the country, smaller hardware focused startups have been stifled by several factors including government policies, funding, importation restrictions and the inability to produce refined inventions that meet global standards. With the very few number of indigenous IT assemblers, it is no surprise that patronage of laptop and desktop computers and mobile phones is still largely foreign. According to Pius Okigbo, Past

President of ISPON, “We have to begin to look for a way to start manufacturing the basic components needed and there are a certain number of things that must be in place to help us begin that step of producing basic components.” Okigbo told BusinessDay that, “the manufacturing of electronic components in Nigeria would still be a bit of a challenge because there are some things that are required like power which is an absolute necessity. For some of these equipments, you cannot turn on the system and there would be a power outage. We need 24 hours’ electricity generation, so until we can get steady power, then the government can begin to enforce the kind of electronics that can be manufactured locally.” Earlier this year, Zinox Technologies Ltd announced its plans to expand its hardware assembly and production capacity with the acquisition of a 129,166.925 square feet warehouse in Ikeja Lagos. The company also said that it was considering the deployment of robotics in handling the certification processes in the new assembly plant where devices of other multinational OEMs will be assembled in a bid to domesticate technology

and generate employment opportunities for many unemployed but skilled Nigerians. Although this new plan has been applauded by many industry stakeholders, as Zinox which has over the years endured the peculiar challenges that have stifled many businesses in Nigeria’s technology sector, will significantly boost its assembling capacity and target the future of technology by creating products for the savvy consumers in areas such as Internet of Things (IOTs), Robotics, Artificial Intelligence etc, some believe that the Nigerian market is mature enough to go beyond computer assembling. Chijioke Anthony Eke, Cofounder, Sidmach Technologies, told BusinessDay in an interview a while ago that; “most people have smart phones and smart devices but none is made in Nigeria and the challenge before us is to find a way, over the next few years to begin to manufacture these devices, not just to assemble because we can see the effect of assembling. “Those who assembled IT systems like servers, desktops, laptops are huffing and puffing because the market is not there. Someone needs to be in control. We must go beyond that with the active cooperation of government, and let them know that it is time to deliberately develop the indigenous IT market,” Eke added. The NITDA DG continues to emphasize that our hardware subsector presents a very good investment opportunity. The Ikeja Computer Village is the largest technology market cluster in West Africa and is estimated to contribute about $2billion to Nigeria’s economy annually. “We currently have just seven local Original Equipment Manufacturers (OEMs) who can barely even meet 20% of the local demand for computer hardware by government alone, not to talk of the entire country. We are interested in investors willing to establish world class Original Design Manufacturing (ODM) factories in Nigeria to guarantee quality components for local assembly,” Pantami said.

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Five eCommerce trends to watch for 2019 ly the time to begin utilising its potentials. Unlike simple automation, advanced machine learning allows you to deeply customize how individual users experience your brand. Beyond personalising specific fields according to customer data, email marketing campaigns can be triggered by patterns of customer behaviour such as purchase history. For example, if a customer habitually orders a product every few months, the system can send reminder emails prompting future re-orders.

Adeniyi Ogunfowoke, Guest writer

etailers, manufacturers, and consumers should get ready for another disruptive year in the retail marketplace. This is because eCommerce is growing and changing at a rapid pace especially in emerging economies. If you want to continue boosting sales and conversion rates over time, it’s important to stay ahead of the latest online shopping trends. In this article, we’ll cover 6 top trends for eCommerce in 2019. Mobile/App-only transactions With the increased number of eCommerce penetration in Nigeria and Africa at large, mobile eCommerce is expected to get faster and seamless. According to the Jumia Mobile Report 2018, 79% of users used their mobile phone, 18% used desktops and a mere 3% used tablets to access Nigeria’s no 1 shopping destination. Hence, it should be a

little surprise that mobile e-commerce is about to get much faster and more fluid as eCommerce firms blur lines between sites and apps. So, expect the Jumia app to be super fast this year. Most transactions, especially the super amazing deals will happen only on the mobile. The apparent benefit of shopping on a mobile App is that you spend less data to make your purchases, compared to buying directly on the websites via mobile.

Social commerce becomes more popular Another interesting dimension to eCommerce is the use of social media to transact business and there is no gainsaying that many young Nigerians have been very successful in marketing their businesses via social media. Even eCommerce businesses are not lagging behind as they now have active social media accounts for not only interacting and marketing

products, but to perform real-time transactions. And this is what is expected to trend this year as consumers will be able to buy directly on social media platforms. Voice search Businesses do not joke with Google as it is very key to sales and turnover. They now optimise their services to appear top in search engines. The next phase is voice search. As Google Assistant and Alexa become more

popular, voice search on mobile devices is being used more often to make purchases. Optimising your eCommerce shop for voice search can position your business to receive more traffic in 2019. For best results, be sure to mirror the language your target customers actually use. Machine learning AI-based eCommerce is still in its early development in Nigeria, but 2019 is definite-

Artificial intelligence The rise of conversation AI (commonly known as chatbots) is one of 2019’s most popular eCommerce trends helping brands interact with customers at scale. In addition to answering common customer questions, messenger bots are also able to facilitate the buying process for online shoppers. This eCommerce trend provides massive value to busy consumers who demand immediate answers, regardless of the time of day or the platform they choose to contact.

Inlaks infuses fingerprint biometric reader, NFC technology into new automated teller machines Jumoke AkiyodeLawanson

nlaks, a popular system integrator in Sub Saharan Africa, has launched two new innovative Automated Teller Machine (ATM) models that offer high technological features including Near Field Communication (NFC), barcode, fingerprint biometric reader and other security features for seamless electronic banking services. The new ATM models – MX 5600ST, MX 8600T AND MS500 created in conjunction with Inlaks partner, Hyosung TNS of South Korea, were launched at the Committee of e-Business Industry Heads (CeBIH) annual retreat held recently in Abeokuta, Ogun State. Babatope Dare, executive director, infrastructure business division of Inlaks, said, “ the new Hyosung self-service channels will be fully integrated by the financial institutions more than ever today to deliver absolute reliability, maximum efficiency and ulti-

mate usability by the innovative terminals.” “To capitalize on the new consumer demands, the Hyosung ATMs offer innovative features like Near Field Communication (NFC), Barcode, fingerprint biometric reader and many new security features,” Dare said. He further mentioned that Inlaks has grown to becoming a trusted business partner to the banks to enable them attain the desired values on their investment on ATMs. Inlaks has been at the forefront of supporting the cashless Nigeria initiative championed by the Central Bank of Nigeria through the deployment of over 6,000 Hyosung Automated Teller Machines to several banking institutions in Nigeria. The company has also partnered with CeBIH in implementing their vision to drive the adoption of electronic banking services through the right technologies, policies, standards, and innovation. Speaking during the retreat, Chang-Hak Kim,

vice president global business division of Hyosung TNS, commended Inlaks for blazing the trail in providing best-in-class selfservice payment terminals in Nigeria and conveyed Hyosung’s enthusiasm to forge ahead with future partnerships with Inlaks and the banking community at large. The e-Business indus-

try heads applauded the innovative Hyosung ATMs following a first-hand experience of the MX 5600ST, MX8600ST, and MS500 models while attesting to the potential value that will be added to financial institutions nationwide once the new models are fully adopted by the banks. The MX 8600T is a unique self-service termi-

Femi Adeoti, managing director, Inlaks.

nal with cash deposit and recycling technology using the superior neo-Bills Recycling Module Technology. This sleek and slim model is easy to install and equipped with the latest technology like the contactless reader, biometrics, barcode reader, anti-skimming protection, touch screen, and functional keys. The deposit/recycler modules

come with advanced bill recognition technology and an advanced transaction speed of up to 12 notes per second, up to five recycling cassettes and 300 notes per transaction. MS 500 is the new Teller Cash Recycler which can be used as a deposit and recycler by tellers at the branch, or as a bulk cash deposit machine by customers. The Ms500 supports a large volume of cash deposits, with a note speed of up to 12 notes per second and a continuous deposit feeding allowing for even faster processing of deposits and note validation. The storage capacity is up to 21,000 notes using up to seven currency cassettes and an external transit cassette for secured loading and offloading of cash. It equally has self-audit capability and a 15 inches user touch screen interface. The Teller Cash Recycler is switched independent which means it can be connected to the core banking application without going through the switch thus reducing transaction cost.

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Dell Technologies Gen Z research reveals patterns of post millennials …As we enter the age of human-machine partnership Jumoke Akiyode-Lawanson with wired report

eneration Z is entering the workforce, bringing with it a tech-first mentality that will propel businesses further into the digital era while potentially deepening the divide among five generations in the workplace. According to global research commissioned by Dell Technologies, post-millennials – those born after 1996 and known as Gen Z – have a deep, universal understanding of technology and its potential to transform how we work and live. “It’s almost a given that these digital natives have advanced technology and data science skills, but what is surprising is the level of digital maturity they are bringing to the workplace,” said Danny Cobb, corporate fellow and vice president of technology strategy, Dell Technologies. “Yet we haven’t raised a generation of robots. Gen Z sees technology not only as a tool for enabling human progress, but also as a means for leveling the information empowerment playing field. Their combination of vision and optimism is remarkable,” Cobb added. The survey of more than 12,000 high school and college students in 17 countries reveals the younger generation’s outlook on technology and future jobs. Specifically: • 98% have used technology as part of their formal education • 91% say the technology offered by an employer

would be a factor in choosing among similar job offers • 80% want to work with cutting-edge technology; of those 38% are interested in IT careers, 39% want to work in cybersecurity and 46% aspire to do technology research and development • 80% believe technology and automation will create a more equitable work environment by preventing bias and discrimination An overwhelming 89% recognize that we are entering the age of human-machine partnerships: 51% of those surveyed believe that humans and machines will work as integrated teams, while 38% see machines as

tools for humans to use as needed. While most Gen Zers are confident with their technical prowess, they also worry about having the soft skills and experience that employers are seeking. Seventy-three percent rate their technology literacy as good or excellent and 68% say they have above-average coding skills. Even more telling, 77% are willing to mentor an older coworker who may be less experienced with technology. Yet nearly all new grads (94%) have some concerns about future employment. • Only about half (57%) rate their education as good or excellent in preparing

them for their careers • 52% are confident they have the tech skills employers want but not necessarily the non-tech skills At the same time, senior professionals are concerned they are being outpaced and that a majority of leadership roles in the future will be filled by digital natives. According to previous Dell Technologies research, 87% of business leaders fear that their organizations will struggle to offer equal opportunities across generations. With up to five generations now in the workplace, businesses must help workers find common ground as they push to create a digital-

first culture. Cross-functional teams with complementary skillsets can encourage knowledge exchange and a fresh approach to problemsolving. Internships, rotation programs and other early-career development opportunities can help young professionals gain experience and develop soft skills on the job. And reverse mentorship programs can enhance technical competencies throughout an organization, with Gen Z leading the way. “At Draper, we thrive on cross-discipline collaboration. It’s not unusual for us to bring together military experts, rocket scientists and students from area univer-

sities to solve some of the world’s most complex challenges,” said Mike Crones, CIO at Draper. “In these scenarios, the student provides a unique perspective to solution development. Many of the technologies we work on are highly interactive and Gen Z brings a curious, userfirst approach that we might not otherwise consider.” Although they have interacted with electronic devices practically since birth and grew up with social media, Gen Z yearns for more human interaction in the workplace. • In-person communication (43%) is the preferred method for communicating with coworkers, followed by phone (21%); messaging apps and texting ranked last • 75% expect to learn on the job from coworkers or other people – not online • 82% say that social media can be a valuable tool in the workplace • More than half (53%) prefer to go to a workplace versus working from home and 58% prefer to work as part of team rather than independently “Today’s young professionals grew up in a collaborative educational environment and they are bringing those same expectations to the workplace,” said Maribel Lopez, technology industry analyst and strategic advisor at Lopez Research. “Though face-to-face communication isn’t always in possible in today’s modern workplace, immersive technologies are enabling all types of workers to collaborate in both the physical and virtual worlds,” added Cobb.

Interswitch opens platforms for easy 2019 JAMB / UTME registration

ollowing its accreditation by the Joint Admission and Matriculation Board (JAMB) to provide ePINs and forms for candidates looking to register for the JAMB/UTME examinations, Interswitch, a foremost Pan-African digital payment and commerce company, has announced the opening of

its platforms for the 2019 JAMB/UTME registrations. Prospective candidates seeking to register for the 2019 JAMB/UTME examinations, can easily obtain their ePINs and forms from enabled Interswitch platforms such as Quickteller Mobile App/ Web, Quickteller Paypoint (Agents), via payment with Interswitch WebPAY

on JAMB’s website and through payment using Interswitch Paydirect at any bank branch nationwide. Olawale Akanbi, group head, corporate solutions at Interswitch explained that these Interswitch platforms have been enhanced to make the registration process easier for the candidates. “We have provided a

variety of payment platforms that are reliable, user-friendly and very secure. Candidates have varied options across the Interswitch platforms. This includes a payment collection solution that allows them to make payment at any bank branch and other channels, including ATMs and mobile,” Akanbi said.

Since its accreditation by JAMB in 2017, Interswitch has successfully enabled a seamless registration process for UTME candidates, providing up to 30,000 ePINs daily. Interswitch services are available online, across more than 18,000 ATMs, all Bank branches nationwide and over 18,000 Quickteller Paypoint

Agents across Nigeria. “Interswitch has for 15 years successfully delivered digital payments solutions in Nigeria with footprints across East Africa and Gambia. The JAMB UTME registration across the Interswitch platforms is not only easy and stress-free, it is also very reliable and secure” Akanbi added.

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British Airways data reveals Nigeria as Africa’s fastest growing SME market Stories by IFEOMA OKEKE

ritish Airways’ data reveals that Lagos and Abuja were amongst its fastest-growing travel routes for small-medium enterprises (SME) during the last year. The 2018 data suggests that British SMEs looked beyond traditional markets to do business. Based on bookings through its SME loyalty programme, On Business, routes in Africa, South America and Europe all featured in the top 25. The airline’s 25 fastestgrowing routes for SME bookings include Keflavik in Iceland up 39percent on the previous year. Santiago grew by 18percent and Krakow by 12percent. In Africa, Nigeria recorded more on business growth than any other market on the continent, with both Abuja and Lagos increasing by 10 percent. In North America booking to JFK in New York rose by a

surprising 10 percent from Gatwick, usually considered a leisure route. Kola Olayinka, British Airways’ regional commercial manager, West Africa, said: “We fly to over 200 destinations around the world. While booking to our traditional business routes remains strong, it’s interesting to see that SMEs, though our On Business pro-

gramme, are looking to different global destinations to travel for work.” Olayinka further said: “2018 was a great year for UK exports, with new records set for innovative British goods and services reaching overseas destinations. Small and scale-up firms are powering this drive, breaking into new markets and discovering that

L-R: W.T. Haggai. NCAA Ag. director Licensing and Ahmed Roland, the accountable manager/CEO Leadstream Aviation Training at the presentation of the ATO certificate at NCAA office in Lagos

demand for British expertise is ever-growing.” British Airways is dedicated to helping promote business growth through its On Business loyalty programme. This enables companies to collect On Business points each time a member of their company travels. Points can be spent on reward flights or a cabin upgrade. On Business travellers still collect Avios if they are a member of the British Airways Executive Club alongside the company collecting On Business Points. Last year, British Airways rolled out Club World improvements that ensures enjoyable better night’s sleep with stylish new luxurious bedding and amenity kit designed by the White Company, a renowned British luxury lifestyle brand. While on board, Club World introduced passengers to a whole world of entertainment with hundreds of the latest films (from Nollywood too), documentary, television, music, audio books, games that come alive on personal 10.4 inches flat screen and noise-

cancelling headphones. The airline has committed a huge investment to the new Club World, and this includes investment in the people delivering it. All the cabin crew have been given two days of training, which means they are fully aware of what Club World passengers expect. In addition to the product and service improvements in Club World, all customers can also look forward to the latest generation Wi-Fi across British Airways long-haul and short-haul fleets over the next two years. Br itish A ir ways also launched special economy fares for travellers going to London from Lagos or Abuja. The slashed fares for economy which are exclusive of all carrier charges and taxes are from 249dollars from Abuja and 445dollars from Lagos to London and will be on sale until 30 September. The economy promotional fares are for travel between 17 September to 20 June 2019 and 13 September to 20 June 2019 for Abuja and Lagos flights to London respectively.

Dana Air introduces ‘Mega Miles’ promo, rewards travellers with N5,000 tickets

ana Air has launched a Mega Miles promo which encourages its guests to book a return ticket and get miles good enough to get an upgrade from economy class to business class at no cost or pay for excess luggage using miles. According to statement by Kingsley Ezenwa, the airline’s media and communications manager, the offer is only for Dana miles members and the promo will

run from 1st of February to 31st of March 2019. The promo entails guests to book return tickets on same reference within the period, quote their membership numbers when booking for miles to be credited within 24 hours. “We are pleased to announce the introduction of Mega Miles promo. It is strictly a promo to encourage members of our frequent flyer program, to book return tickets to get Mega Miles,

Tuesday 15 January 2019

which can be explored for upgrade, exchanged for free tickets, pay for excess, and lots of other cash-saving benefits.’ ‘This offer is also to encourage our guests to plan their trips, book return tickets to get massively rewarded for their membership and participation. Guests are advised to quote their membership numbers when booking. ‘”We have also started rewarding our guests with N5,000 tickets in the on-

going Dana Air/ MMA2 travellers reward promo. This promo has seen the terminal record huge traffic and has also proven its capability to process good number of passengers with its ultra-modern facilities. “To take advantage of the MMA2/ Dana Air travellers promo which is valid till August 2019, our esteemed guests are advised to fly Dana Air just four times from MMA2 to any of our destinations to get the 5th ticket at N5000 only. We

believe in offering more for less and rewarding loyalty and this promo is just one of the ways to demonstrate our commitment.’’ Dana Air recently bagged an award from an Akwa Ibom based group for its efficient service delivery, timely departures and for operating in accordance with global best practices. The airline is one of Nigeria’s leading airlines with daily flights from Lagos to Abuja, Port Harcourt, Uyo and Owerri.

Nigeria CAA grants Leadstream Aviation Training approval on B737 aircraft type rating

he Nigerian Civil Aviation Authority (NCAA) has granted Leadstream Aviation Training, an Approved Training Organisation (ATO) certificate in order to carry out B737 series type rating training. At the presentation of the ATO certificate at the NCAA Office in Lagos, Muhtar Usman, the Director-General NCAA expressed satisfaction in the compliance of Leadstream during the process towards the certification. The DG NCAA who was represented by Wilfred Haggai, acting director of Licensing said: “We are very glad in your interest in providing training for aviation personnel in Nigeria. We want to commend you for your outstanding performance during the ATO process and having completed the five phases of the ATO certification process. As the initial applicant, we must make bold to say that your facilities are outstanding.” “Your manuals have also been seen as outstanding and we believe that that is the way to go for the aviation industry. The DG NCAA is fully aware that everything has come out successfully. We want to wish you the best and we plead that you stick to the regulations. It will help you and it will make out work easier. We look forward to working with you always.” In his response, Roland Ahmed, Leadstream accountable manager and the chief executive officer, expressed gratitude to the NCAA and the certification team. “On behalf of the management of Leadstream Aviation Training, I want to say thank you to the authority, ably represented by the acting Director of Licencing. At a time, we felt overburdened. During the process, we were told that the process needs to be balanced. We were told that “We are doing this so we can do it right”. At the end of the day, from my heart, I appreciate it.

Tuesday 15 January 2019

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Why education for life should remain varsities focus KELECHI EWUZIE

he 21st century era has thrown up a lot of issues in the areas of development across virtually all the thriving sectors of economies of the world with technology and education in the fore front of such new assault to transform the way things are done. While it’s glaring to see among developed countries that higher education have moved from the periphery role it used to play in the past to a more central role in governmental agendas in these countries. It is equally not out of place to observe that most of these countries see Universities as crucial National asset in addressing many policy priorities where they serves as sources of new knowledge and innovative thinking; and also the providers of skilled personnel and credible credential; contributors to innovation; attractors of international talent and business. As encouraging as this may sound in those countries, the same cannot be said of the Nigeria university system which is concern mostly with the derivatives rather than the fundamentals; it is equally sad to see that rather than institution of higher learning

especially Federal and State to engage in long term training that culminate into education for life, they prefer to settle for short term gains. It is against this backdrop that stakeholders in the education sector have called for the university system to break loose from the shackles of over reliance on government epileptic funding and become agents of development to help

the country face the challenge of development. They argued that universities need to viewed as asset just as other developed countries are doing, noting that government need to take more than passing interest in the educational system. Tolu Odugbemi, former vice chancellor, Ondo State University of Science and Technology (OSUSTECH)

told BusinessDay that the university communities needs to provide leadership and bring to the table what is would take for them to be asset to government while stressing that government on its part has its own role to play to ensure a smooth developmental relation. Odugbemi identify staff and students quality, resource in flow to ensure the

performance of functions of teaching and research and innovation as part of the requirements needed if citadel of learning in Nigeria is to stand any chance of attaining world class status. According to him, “The solution to the universities challenges should involve all the stakeholders’ government, universities, private sector. The task is implementable,

government and universities must drive it, we just have to make the commitment that things cannot continue as business as usual”. Florence Obi, former deputy vice chancellor, University of Calabar queried the quota system that is operational in most of government owned establishment pointing out that the issue is a challenge for government. In her words, “Government need to address education if they feel university is going to be an asset and really be at the center of development because at the moment, universities are at the periphery of things”. On the issue of policy summersault, she advocated that an education minister that knows what the issues are in the sector should be picked and retained for a longer period so they can be able to make the difference. She further said that our universities are not challenged by the government for performance. In drawing inference from this, she cited universities in South Africa where her government challenges her universities to be relevant because they are putting a lot of money into the system. “We should then do a gap analysis of where we are and where we ought to be and implement a plan to bridge the gap” she said.

Diaspora remittances help Nigerian Pay Attitude offers families send 200,000 children to school convenient payment options …as WorldRemit research shows that digital remittance could free up further $825m Josephine Okojie

new research from WorldRemit, a digital money transfer service provider shows that 200,000 Nigerian children could go to school, have access to books and other educational supplies owning to international remittances. Africa’s most populous nation is the largest remittance-receiving country on the continent, with annual figures now at a record $25 billion. “As millions of children in Nigeria start a new school year, our research is a timely reminder that the contributions of the diaspora are vital

to the education of 200,000 children across the country,” said Pardon Mujakachi, country director, Nigeria at WorldRemit. “Switching to digital remittances would help maximise that even further. Global remittances are predicted to rise in 2019, even more children are set to benefit,” Mujakachi said. The WorldRemit research reveals the wide-ranging benefits of remittances to children’s education. The findings were calculated using data from United Nations Educational, Scientific and Cultural Organisation (UNESCO), the World Bank, and Nigeria’s latest national household survey. Approximately 220 mil-

lion children are not in school in low and middle income countries. Of these, over 12 million live in Nigeria, one of the highest numbers of out-of-school of children in the world. WorldRemit also calculates that globally, if traditional, cash-based money transfers were replaced by lower-cost digital alternatives, an additional $825 million would be unlocked for families to spend on children’s education. Savings from going digital could pay for the equivalent of 20 million school uniforms, 30 million school books and 16 million sets of school supplies for children in low and middle income countries, the research said.

for JAMB candidates HARRISON EDEH, Abuja

ay Attitude in an effort to provide the needed support for candidates seeking to buy the Unified Tertiary Matriculation Examination form has offered to a convenient payment option to purchase the forms. In a statement, official of the payment platform said that the platform comes with the expansion of the payment options for the purchase of forms for the Joint Admissions and Matriculation Board (JAMB) to include the innovative Pay-With-Phone Number

on Pay Attitude. Accordingly, the platfor m enables parents, guardians and sponsors to authorise payments from wherever they are in a simple and convenient manner. Also, during registration for examination or any other service provided by JAMB, candidates wishing to make payments will simply enter the phone number of their parent, guardian or sponsor on the PoS, WEB, Mobile or any other payment channel. The sponsor will instantly be prompted to authorise the payment by simply entering a 6-digit PIN on his or

her phone. In addition to convenience and lifestyle, PayAttitude Pay-With-PhoneNumber offers higher security features including (i) 6-digit PIN (ii) entering PIN only on your phone or personal device; and (iii) use of phone number instead of account or card number, name or other personal information at the payment channel. Participating banks include Access Bank, Diamond Bank, First Bank of Nigeria, Fidelity Bank, Heritage Bank, Sterling Bank, United Bank for Africa, Unity Bank, Polaris Bank and Zenith Bank.

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Tuesday 15 January 2019

EDUCATION STEM education receives private sector support …As 2019 Cowbellpedia mathematics competition kicks off Stories by KELECHI EWUZIE

he clamour for the development of Science, Technology, Engineering and Mathematics (STEM) education in Nigeria has again received a boost as Promasidor Nigeria Limited has reiterated its commitment to support to all import segment of education.

Anders Einarsson, managing director, Promasidor Nigeria Limited stated that in the last 21 years, Cowbell has been involved in the improvement of the standard of Mathematics education in Nigeria while the Cowbellpedia initiative has provided a platform to identify, showcase and reward excellence in the subject. Einarsson while speak-

ing at the commencement of the 2019 entry stage for Cowbellpedia Secondary Schools Mathematics TV Quiz Show in Lagos said these initiatives have triggered the interest of students in Mathematics at the secondary school level and have further reinforced its importance in the growth of modern economies. Like in previous editions, Eirnarson informed

L-R: Chinedu Mgbemena, senior category winner of the 2018 Cowbellpedia Secondary School Mathematics TV Quiz Show; Anders Einarsson, managing director, Promasidor Nigeria Limited and Akinfoluhan Akinleye, 2018 junior category winner at the flag-off of 2019 Cowbellpedia Secondary Schools Mathematics TV Quiz Show in Lagos

that the Cowbellpedia Secondary Schools Mathematics TV Quiz Show is free and open to students in JSS3 and SSS2 from ages 10 to 18 attending full time secondary education in both Public and Private Schools in the country. The competition is divided into two phases: Stage 1 Qualifying Written Examination and Stage 2 TV Quiz Show. “As part of the brand’s deliberate effort in encouraging Girl Child interest in STEM courses, Einarsson reiterated the company’s appeal to mixed secondary schools to nominate a minimum of two female students for each category. As research has shown that a positive relationship exists between girl child education and the GDP of a nation,” he explained. The Promasidor boss disclosed that the ultimate prize for this year’s edition is N2 million and an allexpense paid educational excursion outside the country. The first and second runners-up will go home with N1.5 million and N1 million respectively. The teacher of the top prize winner will be awarded N500, 000, while those

of the first and second runners-up will get N400, 000 and N300, 000 respectively. Einarsson also acknowledged the support of the project’s partners such as the National Examinations Council (NECO), state Ministries of Education, school principals and teachers, parents and the media for their invaluable contributions, which have culminated in the success of this initiative in over two decades. “I am also assuring you that Promasidor Nigeria will continue to encourage young Nigerians to pursue their dreams. Besides Cowbellpedia, Harness Your Dream, a career awareness workshop for public secondary schools is another platform through which we shape the lives of our future leaders,” he said. Abiodun Ayodeji, marketing manager of Promasidor Nigeria, explained that registration for this year is strictly online and the portal for registration, which opened on Monday, October1, 2018, would be closed on Sunday, February 3, 2019, while the qualifying examination would take place nationwide on Saturday, February 9, 2019 at designated centres.

Nigerian Academia conduct research in Shell Sabbatical/ Internship programme

wenty-two members of the academia from 12 Nigerian universities have begun research attachments at Shell Petroleum Development Companies of Nigeria (SPDC) in several fields of study in the latest phase of the sabbatical and internship programme of the SPDC Joint Venture which was introduced in 1980. The number represents 13 percent increase from the outgoing 19 academics who recently rounded off their attachments with SPDC. Eight professors and 14 post-graduate research interns commenced their programmes on Friday at SPDC headquarters in Port Harcourt, Rivers State, seeking to build industry knowledge and understanding in such

fields as biodiversity, petroleum engineering, geophysics, environmental impact assessment, community and occupational health, remediation, marketing, and oil and gas exploration. They are from the Federal University of Petroleum Resources, Effurun; University of Nigeria, Nsukka; University of Ibadan; University of Benin; University of Port Harcourt; Niger Delta University, Wilberforce Island; University of Lagos; Ignatius Ajuru University of Education, Port Harcourt; Delta State University, Abraka; Federal University of Agriculture, Abeokuta; Alex Ekwueme University, Ndufu-Alike, Ikwo; and the Federal University of Technology, Akure. Igo Weli, general manager, external relations, SPDC said: “The research and in-

ternship programmes form key aspect of our effort to contribute to the development of higher education in Nigeria. It is a mutually beneficial relationship. SPDC obtains specialised and cost-effective services from the professors and senior lecturers, while they, in turn, acquire industry experience and exposure to new technologies that can be ploughed back to the university curriculum.” For a period of one year, the professors on sabbatical would conduct research in identified areas and share their findings with SPDC for application in the industry. Part of the internship programme involves Master’s and Doctoral degree students who are also offered one-year placements to acquire work experience

in SPDC. The other set of interns are from the SPDC Centre of Excellence in Geosciences and Petroleum Engineering at the University of Benin, who spend six months, enabling them to gain practical experience and be exposed to the work culture and ethics of Shell Companies in Nigeria. Recruitment for sabbatical and research internship scheme begins with advertisements in national and local newspapers in March with selection interviews for shortlisted candidates in July each year. Only in November 2018, SPDC its long history of supporting education in Nigeria through scholarships and other initiatives when it hosted the maiden SPDC Education Day in Port Harcourt, Rivers State. At

the event, SPDC awarded 10 post-graduate annual scholarships to students from Rivers, Bayelsa and Delta States to study engineering and geosciences at top universities in the United Kingdom, building a talent pipeline within host communities. Total number of beneficiaries since inception in 2010 is 80 at a cost of about $5.6m. Also, 40 engineering and geosciences graduates received handson training through a oneyear internship programme organised by the SPDC JV and the Petroleum Technology Association of Nigeria, a group of indigenous oilfield service companies. Other scholarships valued at over N1.3 billion were awarded to 1,035 beneficiaries on that day by SPDC and its JV Partners.

CWG Academy opens entry for 2019 academic session

he CWG Academy, a brain-child of the CWG Founder, Austin Okere is presently admitting people into its Academy for the 2019 session, which begins on the 21st of January 2019. Anthonia Ehanmo, group head, Brand and Marketing Communications, CWG in a statement urged Nigerians who desire to be the next set of Tech-leaders to register, get trained and develop themselves in order to make a mark in the Global ICT industry. “A new academic session begins from 21st January 2019. The human mind is inexhaustible and can take as much as we feed it. The key is feeding the mind with the right information to discern the right paths for our futures, so we wish all those interested in advancing their technology exposure to take advantage of this upcoming session to register now,” the statement announced. Adding that as the leading ICT academy operating out of its Lagos Head office in Lekki, Lagos and from other CWG regional locations across Africa; Ghana, Uganda & Cameroun, interested candidates can reach out to the academy for details on the programmes available and work out possible bespoke options for the otherwise busy Professionals. CWG’s ICT experts train and inspire Graduates to develop, deploy, manage and support technology solutions in Information and Communications Technology. The CWG Academy since inception almost a decade ago as a hands-on training division has resourcefully trained and develops over 1,500 Professionals and equipped them to compete favourably among their global peers. The Academy offers practical learning experience from experts, who inspire graduates to develop and deploy ICT solutions. CWG Academy has produced many Technology leaders, many of whom are working in blue-chip companies, while many are entrepreneurs addressing various challenges prevailing in the economy. This is one way CWG adds its own quota to Nation building in tackling the Nigerian unemployment quagmire; creating the know-how and confidence needed for creating jobs for other Nigerians riding on technology. In focus, the Academy deals with four core areas of the Information and Communications Technology ecosystem. They are Advance Service management, Data Centre Infrastructure Services, IT Infrastructure and Cloud Platform and Software Training.

Tuesday 15 January 2019

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BUSINESS DAY

EDUCATION Education: Basic Human Right?

OYIN EGBEYEMI

any international and humanitarian organisations have, in one way or the other, stated that education is a basic human right. Such organisations include the United Nations (through the Universal Declaration of Human Rights), International Covenant on Economic Social and Cultural Rights, United Nations Educational, Scientific and Cultural Organisation “UNESCO” (through the Convention against discrimination in education), Organisation of African Unity “OAU” (through the African Charter on Human and People’s Rights). While this list is not exhaustive, many other non-profit organisations

and smaller humanitarian groups have been established for the sole purpose of addressing what has now become a critical global issue. Today, the popular notion is that a nation that is not educated should be concerned about its future. Many recent studies and literature have linked education or the lack thereof to economic prosperity or economic crisis respectively. Due the gravity of this matter today, we could forget that before the eighteenth century in Europe and not very long ago in Africa (postslave trade era), education was actually the responsibility of the church and families. It was a matter of choice or culture and was a private arrangement. It did not become a public service until after the French and American Revolutions in the late eighteenth century. Before this period, while fathers were away at war, women and children went to the factories to work in order to make ends meet. But after child labour laws were put in place, thereby reducing and eventually eliminating the number of

hours children spent working; the focus began to shift towards educating children and keeping their minds busy with some form of productivity which would benefit their future outside a factory. As much as education has been declared vital, up to 70million children in the world still do not enjoy this basic right that it is supposed to be; and most of these children are in Sub-Saharan Africa. There is some sense to this imbalance by virtue of the way the world has developed and some historical factors such as the Western world having always been ahead in such advancement, as well as colonisation and slave trade which on one hand could be viewed as a setback for Africa but on the other could be viewed as the means of introducing such western phenomena as religion and education which may never have been a part of our culture in the first place. While the world is where it is today, we have to take a critical look at what education as a basic human right actually means. According

to the Right to Education Project (right-to-education. org), the right to education should fulfil the 4 A’s Framework i.e. Availability, Accessibility, Acceptability and Adaptability. Availability – The platform, infrastructure, materials and curriculum Accessibility – The removal of any discrimination that would prevent a person from enjoying their right to education i.e. gender, religion, disability, socioeconomic status Acceptability – Ensuring that educational objectives are met and unbiased to an acceptable standard Adaptability – Flexibility to the needs of the community as well as societal and global changes in the grand scheme of things Bearing all this in mind and bringing it into the Nigerian context, can we confidently say that we have the public platform available to exercise our basic right to education? This is a difficult question that we need to ask our leaders and ourselves. While the government plays its role in providing this public service, there are observable gaps in these four

areas; and this is evident in our educational outcomes (results from examinations and teachers’ literacy skills etc). Almost inevitably, this is where the private sector comes in. Throughout my experience in the education sector, I have come to observe that a good number of private schools were established out of the passion and care for children, as well as great concern over our dwindling educational standards and as a result, our future as a nation. Through private education, there is increased availability to higher standards of learning opportunities (some of which are international standards). However, the concept of private education has a few setbacks. The first is accessibility, as those who cannot afford it cannot access it and are left behind. Others include inadequate monitoring, poor quality assurance and uncontrollable school fees. Another situation peculiar to Nigeria is the establishment of substandard private schools, which do not fully address educational needs but are

viewed to have better offerings than public schools – schools that lower income earners who cannot afford the high fees of the average private school may choose over public schools. It is quite disconcerting that people have to sacrifice large sums of money to access what should be their basic right, but there is hope in what seems to be a shift in focus to education, evident through some initiatives that the government, private sector and non-profit organisations are taking. Some general examples include sponsorships, mentoring and training teachers, donation of facilities and focus group discussions. Also bearing in mind the large and growing youth population in Nigeria, there is still a lot of work required to bring us to that place where our educational standards will meet the requirements of our future economy and the global environment at a small fee. Oyin Egbeyemi is an executive administrator at The Foreshore School, Ikoyi, Lagos.

Experts see growth potential in education hub establishment in Nigeria KELECHI EWUZIE

riven by the economic growth prospect that the establishment of an education hub holds for human capital development in Nigeria, industry watchers have identified the need for a robust public-private partnership to achieve the desired result in knowledge based economy. Analysts are of the opinions that education hub represents a thriving move for knowledge sharing which is durable, sustainable and profitable and contributes to the process of economic growth. They observed that Nigeria’s contemporary educational system is yet to fulfill its potential, stressing that education hub driven by an ebullient public-private partnership represent an effective and productive alternative. The infrastructure development and the huge foreign reserve the hub would save the country is another aspect that analysts are looking at to drive this cause. Making a case for linkages to boost education development through this hub, Adamu Rasheed Abubakar, an educationist opines that there exists a strong relationship between investment in

higher education and the creation of knowledge based society specifically stressing that the strong connection between the universities and industries is a step in the right direction. Abubakar pointed out that forward thinking countries are developed because their economy is knowledge driven while other countries are developing or under developed because they choose to maintain a resource dependent economy rather

than one which is knowledge based. According to him, “We must device all necessary strategies to make sure knowledge is available and affordable for everyone this is the only pathway to Nigeria’s sustainable development. Only education and knowledge when acquired and applied can build bridges and erect ladders tall enough to take our collective destiny to the stars.” The university don ob-

serves that there is a tragic gulf between universities and industries-between universities and the private sector in knowledge delivery adding that there must be an all stakeholders’ partnership in education before Nigeria’s educational industry can be salvaged from the doldrums. He further opines that knowledge derived from establishment of education hub benefits everyone and ensures that industries spend less on training new

work force when universities produce quality graduates, which will in turn contribute immensely to the growth and profitability of their organisations. “A robust partnership between universities and the private sector in setting up a hub will produce needed resources to keep university systems afloat. The reality which is tragic and unfortunate is that Nigeria’s industries are yet to make any significant investment

in the educational sector as the funding of Nigerian industries put into the university system are not up to 10 percent of what they put into other sectors,” he said. Peter Okebukola, former executive secretary Nigeria universities commission (NUC) pointed out that Education Hub is a new, multicampus township containing a cluster of universities that are supported by complementary activities business parks and scientific facilities that will create great opportunities for employment and economic growth in any region it is established in. Okebukola observe that the none development of the nations education sector especially universities has over the years accounted for the huge capital flight experience on an annual basis owing to the increase in foreign exchange loss to foreign universities. He insists that a progressive approach towards the entrenchment of adequate and quality education at all level of education in the nation especially the tertiary institutions is for government to throw its weight behind the setting up of education hub, this he believe will nip in the bud the mass exodus of students to foreign land and save the economy of the huge foreign exchange loss.

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LegalPerspectives

With

Locus Classicus Pender v lushingnton 1877 6 ch d 701

foregoing argument-a person cannot act as an agent for a company that is not in existence. In Kelner v. Baxter (1867) L.R. 2 C.P 174, it was held that at common law a pre-incorporation contract was not binding on the Company because there was no principal on behalf of whom an agent could have contracted and that the Company was not permitted to ratify or adopt it. The simple interpretation of the above is that a promoter cannot act as an agent for a company that hasn’t been established. The contract is binding on the promoter and not the agent. It must be noted that the Companies and

Allied Matters Act (CAMA) of Nigeria states that a company after incorporation can ratify the existing pre-incorporation contract and make it binding on the company. Section 72 of CAMA provides that“Any contract or other transaction purporting to be entered into by the company or by any person on behalf of the company, prior to its formation, may be ratified by the company after its formation and thereupon the company shall be bound by and entitled to the benefit thereof as if it has been in existence at the date of such contract or other transaction and had been a party thereto”.

ssue- Minority protection i.e. on the right of a member of a company to sue in his personal capacity. Principle- Where individual right is breached, the particular person that is aggrieved can institute an action in his personal capacity. This is because the injury is done to him in his personal capacity. He can do this without seeking the consent or approval of any other member. Fact- The article of association of the company provides for one vote per ten shares. It

CAMA stated that the articles of association of a company can provide for how a resolution should be passed (whether special or ordinary) as long as the act is silent about it. Examples of the resolutions that must be passed by special resolution as provided in the act are- alteration of the memorandum of association, alteration of the articles of association, reduction of the authorized share capital, changing the company’s name, resolution on winding up of the company by court, making the liability of the directors to be unlimited, re-registration of unlimited company as company limited by shares, re-registration of a private company as public company and vice versa, etc. If CAMA or articles of asso-

ciation of a company stipulates that an action should be done by special resolution (or vice versa) and same is not followed then the minority can institute an action. 2. Section 300( C) of CAMA- When there is an act or omission which affects the individual rights of the minority shareholders as members of the company- Example of this situation is where they are being denied their rights as a member of the company e.g. the right to vote, right to receive notice of meeting. 3. Section 300(d) of CAMAWhere fraud is being committed on the company or the minority shareholder and the directors are not taking steps to remedy the wrong- This can happen in a situation where the majority are dealing with

also provides that no member is to have more than 100 votes. One of the members who has more than one thousand shares transferred the excess shares to a nominee. It must be noted that he directed the nominee on how he is to vote. The Chairman refused to accept the vote of the nominee. On this basis, this matter was instituted. The court held that the right to vote was enforceable against the company. A person’s right to vote cannot be tampered with because it is a right of property.

Do you know?

t is possible to check if a company is registered in Nigeria from the comfort of your house. In order to protect the general public from dealing with companies that are not registered in the country the Corporate Affairs Commission has a space on its website where a search can be made. Basic details like the name of the company, its registered office and date of registration can be found on the website. Prior to when this was done, anybody that wants to

The rule in foss v harbottle and its exceptions T

he rule in the case of Foss V Harbottle (1843) 67 ER 189 simply states that “where a wrong is done against a company by the majority it is only the company that can bring a claim to remedy the wrong.” Going by the tenets of this rule, no claim will definitely be brought as far as the majority represents the voice of the company. This rule is codified under section 299 of Companies and Allied Matters Act. The section provides that “Subject to the provisions of this Act, where an irregularity has been committed in the course of a company’s affairs or any wrong has been done to the company, only the company can sue to remedy that wrong and only the company can ratify the irregular conduct. The exceptions provided are1. Section 300 (b) of CAMADoing by ordinary resolution what should be done by special resolution- Resolutions refers to decisions taken in a meeting. A resolution is regarded as ordinary resolution if it is passed by simple majority e.g. 13 people voted in favour while 12 people voted against. A resolution is a special resolution if same is passed by not less than 75% of the voters.

Tuesday 15 January 2019

Odunayo Oyasiji

Is pre-incorporation contract binding on a company? hat are pre-incorporation contracts?- They are mainly contracts entered into by promoters of a company before the company was incorporated. In Sparka Electrics Nig. Ranor v. Ponmile (1986) 2 NWLR (Pt. 23) 519 at 525, the Court stated that “Pre-incorporation contracts are contracts purported to be made usually by promoters on behalf of a company before it is incorporated.” They are mostly contracts meant to aid the establishment of a company and make its operation smooth after incorporation. An example of such pre-incorporation contract is contract that has to do with securing office accommodation/place of business for the company. The position of law in Nigeria is that pre-incorporation contracts are not binding on the company. The directors or promoters that entered into the contract are to be held liable for anything that goes wrong in the contract. It is often argued that the promoters that entered into the contract are doing so on behalf of the company that is to be incorporated. Therefore, they are agents of the company and as such the company should be held liable under the contract. However, the law is settled with regards to the

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the properties of the company in such a way as to unfairly dispossess the company of same to their own advantage. A good example of this situation was seen in the case of YALAJU AMAYE –V- AREC (1990) 6 NILR 290- in this case, the directors withdrew a lot of money from the account of the company and even came up with forged board resolutions meant to change the signatories to the accounts of the company. The minority shareholders were allowed to sue to remedy the wrong. 4. Section 300(a) of CAMAEntering into a transaction that is ultra vires or illegal- Example of this situation came up in the case of YALAJU AMAYE –V- AREC (1990) 6 NILR 290 where the board appointed new directors despite the fact that the articles of association of the company does not give such power to them. 5. Section 300 (e) of CAMAWhere a meeting cannot be called early enough to address the wrong done to the company or minority- this situation can occur where an irreversible damage is about to be done and waiting for a formal meeting to be held will not address or remedy the wrong as the deed would have been done. In this situation, it will be wise to

confirm that a company is registered will have to go to the office of the commission and pay before the file of the company will be brought out for the person to go through.

To be able to conduct the search, visit http://publicsearch.cac.gov. ng/ComSearch/. Type in the name of the company and the details will come up.

allow the minority to institute an action to quickly remedy the situation before things get out of hand. 6. Section 300 (f ) of CAMA -Where the directors are likely to benefit or they have benefitted from the dereliction of their duty- this is straightforward. In a situation where the directors who are the ones responsible for the day to day running of the business of the company are deliberately in breach of their duties to the company so as to attract benefits to themselves. It is certain that they will never take steps to remedy the wrong as they are the wrongdoers. Therefore, the minority can take steps to seek redress on behalf of the company. 7. Where it will be in the interest of justice- this exception is a creation of the Supreme Court of Nigeria in the case of Edokpolor & Co Ltd v Sam-Edo Wire Industries Ltd (1994) 7 S.C. 119. The Supreme Court of Nigeria stated that the minority can seek remedy when it will be in the interest of justice regardless of whether the situation falls within the ones earlier discussed above. This can only be determined on case by case basis. This has also provided a leeway for minority shareholders to seek to protect their interest.

Tuesday 15 January 2019

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BUSINESS DAY

Nigeria’s marketing communication industry foresees tough time ahead Stories by Daniel Obi Media Business Editor

n spite of promises by political candidates vying for presidency to turn the economy around, with sectors such as manufacturing and services industry thriving again, some marketing communication practitioners are apprehensive about their industry as present tough time may continue till mid-year. It has really been tough, in the last two years for the marketing communication agencies who depend on the performance of the economy and thriving sectors to succeed. But looking ahead 2019, some of the practitioners were not optimistic of a very bright year as their clients are still hard hit by unfavourable environment. They believed that if President Muhammadu Buhari eventually wins the presidential election, the economic situation may remain the same. But if Abubakar Atiku, his main opposition takes over power, it may take some time before his policies will begin to impact on the economy. Nevertheless, Charles Igbinidu, the managing director of CFO and Associates in his view said that “if the price of oil increases from present $58 per barrel and government pumps more money into the system, things may change” He recounted that many organisations were affected by poor economic performance in 2017/2018 that pushed them to cut marketing communication budgets which had negative impact on the media industry. Similarly, Ehi Braimah, CEO of Neo Media and Marketing agency based in Lagos described 2018 as

a difficult year for business owners and entrepreneurs. This difficulty manifested in low spending power of consumers, government regulations which include excise duty affecting clients, stiff competition and the fight for relevance, difficulty in sourcing foreign exchange and reduced FDIs. This may not change in 2019. Speaking to BusinessDay on factors that will shape 2019 for the media industry, John Ehiguese, the CEO of MediaCraft, a PR agency based in Lagos said “The outcome of the elections would be a critical factor, but the industry practitioners have to wait and see those who eventually wins, and what their attitude will be towards the economy and the media” He said for the media itself, again a lot will depend on how the economy performs but unfortunately the prognosis for the economy in 2019 is not very encouraging. Ehiguese who is the president of Public Relations Consultants Association said that with the unencouraging outlook, marketing agencies will always find a way to survive. “Where necessary, plans and projections might need to be

adjusted to suit the realities on the ground. But, generally, people will find a way to get by”, he said. For Ehiguese, 2018 was better than 2017 in terms of business opportunities, given that the broader economy began to show signs of exiting the recession. “ As you well know, the fortunes of the IMC industry are tied to that of the larger economy - if the economy is good, we get more business, if it is not, things point southwards” He however regretted that other major challenges that confronted marketing communication industry in 2018 include capacity issues, weak regulation, leading to high levels of quackery, a weak economy among others. Assessing whether jobs from political parties are flowing to media agencies this time, Ehiguese said typically, an election year should represent a season of boom for IMC agencies, especially those who get the opportunity to work on political campaigns but “unfortunately, that does not appear to be the case this time around, and I can adduce two major reasons: one, campaign funding does not appear to be in much supply this time around. It

appears that the politicians will not be spending as much money as they used to. “Secondly, some of the major political parties seem to be more comfortable contracting the services of foreign communication firms to run their campaigns. This is bad judgement, because there is no way such firms can understand the political terrain, and be able to deliver, like Nigerians would. We do have the expertise and competences here in the country. And even where we do not, several of our agencies have foreign affiliations and partnerships that they can tap into, to bridge the gap. In any case, how can local professionals raise their game, and grow, if you do not give them chance?” he asked. Dare Ogunyombo of Brooks and Blake agency also supported the view that many organisations are also watching out for what will be the outcome of the elections for their planning. He believed that the media during this period should be “saddled with the responsibility of sensitizing the populace with accurate information that will reduce tension among the electorate, and I believe that is huge”. With about 35 days to the presidential election, many Nigerians have queued behind the two major presidential candidates – President Muhammadu Buhari and former Vice President Atiku Abubakar - but a few of those supporters actually know what the candidates are offering because as Olu Fasan, an economist said the ideas of the two main candidates are hardly the subject of public discussion. After the elections, Nigerians will also be expecting to what extend the eventual winner will implement his policies either on economy, security or restructuring to get the economy on track.

PAU to offer MSc in Film Production from 2019

uilding on the work of its Nollywood Studies Centre, the School of Media and Communication of the Pan Atlantic University will commence a master’s degree programme in Film Production in the 2019/2020 academic session. PAU Vice-Chancellor Juan Elegido disclosed plans for the programme during its recent 15th Convocation. According to the School of Media and Communication, “the MSc in Film Production draws from the deep interest of the School in film, epitomised by its successful running of the Nollywood Studies Centre for a decade now and its rich repertoire of movie archives and training activities.”

The course, SMC adds, will cover four key knowledge areas. These are Scripting and Directing for the Screen; Cinematography; Editing

for the Screen and Sound Design for the Screen. They would provide specialisation options in seven major film

production areas of short film, documentary; interview and feature film. Others are serial drama, commercial filmlet and the music video. The full-time programme will cover two semesters of nine months. Ikechukwu Obiaya, dean of the School of Media and Communication, said the programme “seeks to inculcate in the students the knowledge and the skills required for a successful career either in filmmaking or as an academic specialising in film. It will seek to animate the intersection of theory and practice in the philosophical, the entrepreneurial, the technological and aesthetic dimensions of the film.”

Why MultiChoice Nigeria is upgrading subscribers’ viewing package

ultiChoice Nigeria, foremost video entertainment company has introduced a business plan that will enable its subscribers on DStv and GOtv pay for a lower bouquet but enjoy services on higher bouquet. This lasts for only three months – January 15 to April 15, 2019. Under the programme it calls ‘Step-Up’ both active and disconnected DStv Compact, Family and Access customers will have the opportunity to pay for an upgrade package and get a boost to view programming on an even higher package. For instance, DStv customers on the Access package can pay N4,000 for Family package and then get a boost to view programmes on the Compact package, while customers on the Family package can pay N6,800 for Compact package and instead view Compact Plus package programming. Likewise, Compact customers can also pay N10,650 for Compact Plus package and in turn get Premium package programming. Similarly, customers on the GOtv platform are also not left out of this offer. GOtv Plus, Value and Lite customers will get upgraded to GOtv Max when they pay a reduced fee of N2,500 while GOtv on its own ‘tops up’ their subscription with N700. “Active and disconnected GOtv Max customers can also take advantage of this limited time offer to renew their subscription for N2,500. This campaign will give GOtv customers on Plus, Value and Lite an opportunity to experience the exciting premium content available on GOtv Max including La Liga, Serie A, FA Cup, BET, Fox Entertainment, StarLife, ROK 2 and CBS Reality and more”, the company said. According to Martin Mabutho, Chief Customer Officer, MultiChoice Nigeria, this offer was further in consideration of this critical moment in the life of Nigerian parents when they have many obligations such as schools to pay. He also said the offer reiterates the company’s commitment to give more value for money to loyal customers as they will enjoy content on a higher package than what they paid for while encouraging them to remain active to enjoy quality entertainment lined up for the year. “We are pleased to launch this first-of-its-kind offer that will give our customers the opportunity to experience the exciting programming available across higher packages at the price of a lower package.

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Tuesday 15 January 2019

The key to pulling off a successful activation in 2019 Monica Gomez

n a world overflowing with distraction and diluted with competition, it’s becoming harder and harder for businesses to connect with customers online. Today more than ever, brands need to step outside the digital box and find fresh ways to surprise and delight consumers in real, authentic ways. Experiential marketing has been climbing to the top of the brand-world totem pole for a few years now and shows no signs of slowing down. The U.S. Bureau of Labor Statistics predicts the event industry will grow by 44 percent from 2010 until 2020, and for good reason: 98 percent of consumers say they’re more likely to buy a product after attending an activation. Whether a company lives online, in brick-and-mortar or somewhere in between, in-person events carry the potential to leave a lasting impression on customers, whose attention has become a true commodity. But it’s not just about throwing a great party anymore. If businesses want to bond with their audience in a genuine way, they have to solve a problem and provide real value that customers can take home. Heading into 2019, marketers need to think big and give customers a reason to engage. Markets are saturated

and most consumers are in a perpetual state of sensory overload. To capture their attention, brands will need to make a big splash. The Concierge Club recently launched a “Zero Gravity Room” to get consumers excited about the HP Sprocket 200 photo printer. The highly Instagrammable experience allowed visitors to snap and print photos with the device while posing in a curated upside-down room. The Gravity Room had the wow factor to spark organic conversation, boost social sharing and invigorate online sales for the new product. We hired Toronto Raptor Danny Green to conduct a meet and greet with fans and drive awareness for the activation. As a result, expected turnout quadrupled and we secured nearly half a million impressions, plus it gained top-tier coverage on Canadian sports network TSN online. This unique, carefully curated experience is the kind of value brands should aim for to deliver customers to get them excited, drive product sales and win the experiential marketing game. I launched The Concierge Club in 2011 to fill a white space in Canada’s premium events industry. From the beginning, my goal has been to curate full-service, exceptional events for top-tier clients, at any budget and always with a bold vision. With every activation we execute, the objective is clear: to exceed our client’s expectations and deliver tan-

gible results. Over the holidays, The Concierge Club helped to create an engaging activation for Sephora Canada with a memorable festive-themed experience. The Sephora Holiday Cabin showcased the brand’s holiday collection to the country’s top media and influencers. When attendees stepped inside the activation, they enjoyed a family-style dining room setting, fireside lounge, custom photo op and an indoor forest display with artificial falling snow. A live jazz band also entertained guests while they explored the brand’s offerings and enjoyed an expertly crafted holiday menu.

iPhone connects customers with iPhone XR

s part of its tradition of always seeking customers’ satisfaction, iPhone, recently launched its iPhone XR in Lagos. At an in-store launch held at the SLOT and Pointek stores in Ikeja City Mall, customers present were excited at the features of the new iPhone XR. The new phone has a 6.1inch Liquid Retina display that goes edge to edge. It also has the latest TrueDepth camera with faster Face ID authentication, new 7-nanometer A12 Bionic chip with second generation Neural Engine and a 12-megapixel camera that takes advanced Portrait mode

and Portrait Lighting photos. Speaking on the new addition to the iPhone range, the Assistant Marketing Manager, Redington Nigeria, Kolawole Ogunwumi said the new iPhone serves both aesthetics

and high functionality for the users. “The new iPhone XR has a gorgeous new aerospacegrade aluminum and glass enclosure that has long allday battery life and comes in six beautiful finishes which are white, black, blue, yellow, coral and red. This new design is splash and water-resistant, with a rating of IP67 that protects against everyday spills including coffee, tea and soda. iPhone XR makes it possible for more people to have the great experience of the latest iPhone X technology, in beautiful new designs, at a more affordable price” Ogunwumi said.

Betway kicks-off 2019 with special ‘Money Back’ offer

nternational betting platform, Betway has launched a new ‘Money Back’ promotion to reward customers this January. Throughout the ‘Money Back’ promotion, Betway will reward its customers by refunding 1% of their bet amounts on all bets placed daily. Every time a customer bets, 1% of their bet amount

will be deposited into their accounts as cash and will be ready to use the very next day. This promo applies to all sports (pre-game or live betting), casino, betgames, virtuals and Jackpot bets. To qualify for this promotion, customers simply need to bet any amount on any product and get 1% of their bet amounts back in cash.

Speaking on the promotion, Betway Country Manager, Lere Awokoya said in a statement, “The ‘Money Back’ promo is the perfect way to start the New Year. January can be a tough month for many people, so we decided to support Nigerians by giving them money back on every bet they place daily on the Betway platform.”

Another holiday activation The Concierge Club spearheaded was the Gift Wrap Valet program, now in its second year, for Canadian commercial real estate giant Cadillac Fairview. The reason the initiative has been so effective is twofold: Not only are shoppers given the luxury of being able to drop off their gifts and sidestep the mess of wrapping paper and ribbon, they’re able to stay connected through the entire process and are updated as soon as their gifts are ready. A custom-made app tracks the status of their package from drop-off to finished product, and pings the customer once it’s ready to be picked up. The result? A seamless, thoroughly

painless experience executed entirely by The Concierge Club. The agency effectively eliminates the stress of giftwrapping for consumers, freeing up their time to peruse the mall with one less item on their holiday checklist. At the same time, it allows users to stay connected and in control. This kind of marketing-as-aservice approach establishes a connection between business and consumer and leaves them walking away with a positive impression of a reliable brand, setting the stage for future engagement. In today’s marketing landscape, building loyalty is all about authentic storytelling, and there are high-tech tools at every company’s disposal to take those stories to the next level. By leveraging available technology, brands can succeed at delivering a more personalized and connected experience. Another project we spearheaded was the Olympic Viewing Hubs that leveraged technology to create a service with an elevated experience. Capitalizing on 2018 Olympic fever, The Concierge Club pooled our highest-tech resources to launch next-level screening spaces at 23 Cadillac Fairview properties, effectively branding these locations as the “Home of Team Canada.” It may sound simple, but these hubs weren’t just a collection of chairs cobbled together around a screen. The dedicated spaces were decked out with features like LED

touch walls, animatronic running mannequins and multiscreen displays—and the efforts paid off. We knocked the industry standard dwell time out of the park; we were able to pull off an average time spent in the activation of 14 minutes, not to mention attract millions of visitors. It may sound like a contradiction, but in today’s uber-connected landscape, technology has the potential to help brands offer a more human experience for customers. As important as the effective use of technology and artificial intelligence will be for experiential marketing going forward, it’s just one detail. As many brands begin to deemphasize overreliance on digital marketing—which has become more challenging in the age of privacy-compliance laws like Europe’s General Data Protection Regulation, or GDPR—there will be a natural return to in-person interaction between business and consumer. Call it a boomerang effect, but real-time, face-to-face events are now an essential part of any holistic marketing strategy—and ultimately what people today crave. The more connected our world becomes, the more we look for authentic emotional connection, and businesses are going to get further faster by delivering personalized experiences than they ever could with a digital billboard ad. –Culled from Adage Monica is the founder & president, The Concierge Club

Eat’N’Go highlights 2018 achievements, rewards staff

at’N’Go, franchisee for the Domino’s Pizza, Cold Stone Creamery and Pinkberry Gourmet Frozen Yoghurt brands, has highlighted its 2018 achievements showcasing new outlets, international recognitions. Following a successful year, the organization also hosted its annual Gala Night last month to recognize and award dedicated staff across all its locations in Nigeria. This event kicked off with a

leadership rally discussing the organisation’s 2019 look ahead as well as the positive growth pattern of the company over the last six years. The rally also saw the presence of Nigerian Footballer Jay Jay Okocha, who shared some inspirational tips with the team. This was followed by an evening of glitz and glam for all 2000 employees of the company, partners and special guests, filled with awards recognition and lots of prizes for staff via a live raffle

draw. The company also showcased its X-factor challenge with the fastest pizza making competition and the Cold Stone Ice cream juggling competition alongside musical performance from in-house talent and upcoming rapper Solex-C. The highlight of the evening was the promotion of Adebayo Adedapo of Cold Stone Creamery and Ogboro Mercy of Domino’s Pizza to National Operations Manager of both brands.

Capri-Sonne rewards consumers in new promo

apri-Sonne, the fruit drink of children in Nigeria, has launched a new national consumer promo tagged the “Beach Ball Promo”.The promo, which includes a free Beach Ball in every carton of Capri-Sonne, is expected to create more fun moments for kids by ensuring a stimulating unboxing moment and encouraging them to play some more. The “Beach Ball Promo”, according to a statement will offer children across Nigeria

one more reason to enjoy their favourite fruit drink, as nothing speaks to a child’s playfulness like a bouncing beach ball which can be used in all sorts of exciting games. “For a brand universally associated with creating fun moments for children, the Capri-Sonne “Beach Ball Promo” will seek to enhance brand affinity and product consumption through activities that encourage active play for kids whilst having a taste of fun”. According to the Deepan-

jan Roy, the Managing Director of Chi Limited in the statement, the Capri-Sonne “Beach Ball Promo” is another unique platform to reward fun loving consumers across Nigeria. “The Capri-Sonne Beach Ball Promo is an opportunity to give more fun moments to millions of children, and reward them as they relish the delicious taste of fun and excitement in every carton of their favourite drink purchased within the promo period,” he stated.

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Exchange telecoms position to deepen connectivity in Africa, wins ISO certifications

n a push to further serve its clientele better and provide seamless connectivity, Nigeria’s largest and leading Interconnect Carrier (Clearing House), Exchange Telecommunications Limited has been certified with the ISO9001:2015 (Quality Management System) standards; ISO27001:2013 (Information Security Management System); and ISO 22301-2012 (Business Continuity Management System). The certifications were facilitated by Digital Jewels Limited, Africa’s leading IT governance, risk and compliance (GRC) consulting and capacity building firm with deep competencies in information security, information assurance, project management, e-business and knowledge capacity building. Oluwatoyosi Adebakin, the financial controller of Exchange Telecommunications, said the firm which started as Nigerian company has grown and now seek to extend its frontiers as a global brand operating effectively in the world’s major economies because of its undoubted human and technological capabilities. According to her, Exchange Telecommunications chose to embark on gaining three international certifications at once given the arduous and rigorous task involved obtaining certification because of its shrive for better service. “It was done in response to the company’s determination and quest of venturing into international business soon which will require partnership with likeminded organizations,” said Adebakin at a recent award ceremony held in Lagos. It was understood that be better perceived beyond marketing efforts and referrals, Exchange Telecom-

munications pursued these certifications, in order to showcase its worth as well as processes as that of a company that adopts international best practices in its operations and consequently deserving of such partnerships and patronage. Adedoyin Odunfa, the managing director of Digital Jewels Limited, said the board and management of Exchange Telecommunications has taken bold steps to position the company towards strengthening the fabric of its business and abilities to deal credibly with international partners and clients. Odunfa noted that in an increasingly competitive and dynamic world, ICT remains the game changer, and Exchange Telecommunications limited is at the heart of the ICT business, therefore should be wary of vulnerable attacks like ransomware and hacking attacks amid value creation for the benefit of stakeholders. Odunfa maintained that to win consistently, it is imperative for organizations to constantly create value on the one hand and optimize risks on the other hand, which is why the three certifications are of great significance as an integrated vehicle to institutionalizing ways to create value and optimize risks. The three category of certifications are allow Exchange Telecommunications achieve better service delivery to its clientele; while the ISO 9001-2015, Quality Management System (QMS), is to enable the organization to deliver consistent value to her esteemed clients, ensure leadership engagement and address associated risk. The ISO 27001-2013, Information Security Management System (ISMS), includes management of processes and procedures that help identify and manage downside risks that organizations faces in the ICT

Adebayo Shittu, minister for communication

, while the ISO 22301-2012, Business Continuity Management System (BCMS), enables the firm to address perceived and unperceived risk in the course of doing business. These certifications remain a remarkable feat for Exchange Telecommunications as it takes some organizations years to gain one of these ISO standards. Therefore, it is worthy to note that the management team has doggedly pursued all three as part of the organization’s set goals for the year, and has attained same within a space of months as a mark of its determination and drive to internationalize its business model. With a presence at the Telehouse in London and connected to several Tier 1 and Tier 2 carriers, Exchange Telecommunications is a national wholesale carrier licensed by the Nigerian Communications Commission (NCC) and connected to the major mobile network operators (MNOs) in Nigeria. Exchange Telecommu-

‘

Exchange Telecoms is the only carrier currently transiting international calls originating from all the MNO networks in Nigeria to A-Z destinations abroad. It offer competitive rates for calls originating from Nigeria and have origination volumes from Nigeria which continue to grow month on month

‘

BALA AUGIE

BD MARKETS + FINANCE Analysts: BALA AUGIE

nications carries the most minutes for each of them with an acclaimed capacity of terminating well over 150 million minutes national and 100 million minutes international calls monthly. It operates under the twin licenses of Interconnect Exchange and International Data Access. E xchange Telecom International Wholesale Carrier It have a presence at Telehouse London from there it is connected to several Tier-1 and Tier-2 Carriers. It terminate over 100 million international minutes into Nigeria monthly and transit outbound calls from Nigeria to all locations worldwide, with a competitive A-Z rate. Outbound International Traffic Exchange Telecoms is the only carrier currently transiting international calls originating from all the MNO networks in Nigeria to A-Z destinations abroad. It offer competitive rates for calls originating from Nigeria and have origination volumes from Nigeria which continue to grow month on month. National Wholesale Carrier Exchange Telecoms is connected to the major MNOs in Nigeria, and carry the most minutes for each of them. It credit rating, reputation and relationships with these networks have been gained through its integrity, dedication and superior technology. Exchange Telecoms currently terminate well over 150 million minutes per month nationally. Ba c kg ro u n d o f E xchange Telecommunications Exchange Telecommunications Nigeria Limited is a local and international Interconnect Carrier. The largest clearing house in Nigeria, we have 4 Points-

Of-Interconnect nationwide (Lagos, Port Harcourt, Ibadan and Kano). These are connected via a ‘fibre’ ring to ensure redundancy, stability and efficiency. It was licensed by the National Communications Commission, Nigeria and operates under two licenses: Interconnect Exchange and International Data Access. Exchange Telecommunications Nigeria Limited was created in 2001 and awarded the Interconnect Exchange license. Under new management in 2015, Exchange Telecoms resumed operations on the 14th of February 2015 and became the largest clearing house in Nigeria within 18 months. In 2016, Exchange Telecoms was awarded the IDA license and opened a presence in Telehouse, London. Having established itself as a niche carrier operator focused on its strength to provide quality and deliver on its voice routes, Exchange Telecommunications strongly believe that traditional calling methods by customers for voice termination will remain as a method of communication for a sizeable market, even though the market gets more competitive. Exchange Telecommunications is in a unique position to generate origination volumes from Nigeria, as well as having in country direct with the Nigerian MNO’s. Exchange Telecommunications believe that Africa still provides growth opportunities in many telecom sectors, while it is position at the forefront to leverage and benefit from its position in this market. Its position in the African telecommunications market has allowed Exchange Telecommunications to be connected directly to many PTT/ Tier 1 / MNO’s directly, as well as niche operators generating termination minutes to Africa, Middle East and Asia regions.

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Tuesday 15 January 2019

Where, how to invest profitably in real estate market in 2019 Stories By CHUKA UROKO

espite the negative narratives on Nigerian real estate market, especially about the growing vacancy rates, negative growth, falling contribution to GDP, etc, it remains a major and irresistible investment asset class. The market is estimated at N4.7 trillion with a yearly demand of 1 million housing units where only an estimated 100,000 units are supplied, meaning that opportunities are limitless. The market fundamentals are clear and compelling. Demographics and consumer purchasing power are strong, but people-issue or population is stronger. Nigeria has a large number of people who are very aspirational. The median age here is estimated at 19 years while the average age is 27. This means that the country has about 75 million people between the age of 16 and 27, implying that the future is bright because all these people have to live, work, eat and play; they also have go to school and hospital somewhere and real estate envelopes all these and provision has to be made for them. The implication of this is that the opportunities are there but these opportunities, according to experts, exist for investors who have the patience, and are ready to listen to, and dimension the market to understand what the market really wants and at what price. There are particular segments of this market that investors can invest in and reap profitably this new year and these include the short-let apartments, co-working spaces, student housing and small-sized multi-family units apartments. Short-let apartments in Lagos, Port Harcourt and Abuja have grown in popularity and according to Ayo Ibaru, a director at Northcourt Real Estate, “this growth is partly driven by the tepid return of expatriate technicians and the influence of Airbnb”, explaining that Nigeria became the fastest growing market in Africa for Airbnb, the platform that allows property owners earn income on their residential assets, growing by over 200 percent in the last five years.

To meet the growing demand in this segment of the market, landlords in prime locations are converting their assets to this use and are enjoying occupancy rates higher than standard residential building. The vacancy factor in the prime residential market has been quite high in recent time. The rates in the standard residential apartments have hovered around their H1 2018 figures with Ikoyi recording 30 percent, Ikeja GRA, 26 percent, and Oniru, 33 percent among the highest. Figures from a Northcourt Real Estate recent outlook report for 2019 shows that GRAs 1, 2 and 3 in Port Harcourt recorded vacancy rates of 6 percent, 11 percent and 20 percent respectively and continue to show potential principally for their security advantages when compared to most parts of the city. Co-working space is coming up thick and investment opportunity here is huge. Demand which is driven mostly by millennials and start-up community is growing exponentially. This is despite Grade A office vacancy rates which remain high with existing 400,000 square metres stock of office space and over

40,000 square metres expected in the market in the new year. “Millennial and the start-ups community continue to drive up the demand for co-working spaces with service providers seeking to convince traditional large-scale employers of the benefits of co-working just as corporates are in conversations geared towards putting up underutilised space for co-working use”, Ibaru confirmed. Student housing is emerging investment frontier that guarantees investors high yields and stable cash-flow. “This investment asset gives about 22 percent returns which are more than double what commercial real estate gives, not to talk of residential real estate which gives 4-5 percent returns per annum. For this reason, we are encouraging other developers to come in”, Abaypmi Onasanya, Founder/ CEO, Student Accommod8, told BusinessDay in an interview in Lagos recently. Munachi Okoye, CEO, MCO Real Estate, affirms. He explained to BusinessDay that demand for this asset class is chiefly driven by the widening gap between a growing

student population and little or no accommodation supply, especially in public schools. “The ability to sign a long lease on land belonging to a higher institution or acquiring land adjoining a higher institution, building and charging a ready pool of student off-takers a market rent with 100 per cent occupancies leading to a stable cashflow, sounds like a real estate developer’s dream”, he noted. The increase in student population is a reflection of the national population growth which, as at October 31,2018, according to United Nations estimates, was 197.4 million-an equivalent of 2.5 percent of the total world population. The country’s annual growth rate is estimated at 2.6 percent. Another profitable area for investors in 2019 is the small-size apartments including studio, onebedroom and two-bedroom apartments. Market research shows that demand here is huge but supply is sparse. “This is one area of housing where there is a huge gap which is not being addressed. Over 60 percent of people who are looking for

houses to rent today are not looking for 3 or 4-bedroom apartments, but 1 and2-bedroom”, MKO Balogun, CEO, Global PFI, confirmed in an interview. The demand in this sub-market is such that any available supply is taken up within one month of entering the market. Periwinkles Investment’s multti-units Oxygen Apartments comprising mainly 2-bedroom apartments sold out in two weeks of launching into the market. African Capital Alliance is developing over 500-unit Blue Water Lagos in collaboration with Elalan Construction. The first phase of the development comprising 119 apartments is almost 40 percent sold out still at topping out stage. These underscore the level of demand for this class of assets and, according to experts, the demand will continue to grow because “the economic recession which the country went through between 2016 and 2017 left hard lessons for families whose basic needs including housing and accommodation have to be redefined, with a lot of them favouring smaller housing units”.w

Social investment earns Nigeria golden place at LafargeHolcin awards for MEA

he Nigeria office of Lafarge Africa recently demonstrated class and innovative ability by winning the inaugural corporate social responsibility (CSR) Awards of LafargeHolcim for the Middle East and Africa (MEA). The awards were also a proof of the innovative and impactful social investment the Nigeria office made in 2018. As a leading Sub-Saharan Africa building materials company, Lafarge Africa Plc, is a subsidiary of LafargeHolcim-a world leader in building materials. The cement company which is listed on the Nigerian Stock Exchange with presence in Africa’s two largest economies, Nigeria and South Africa, is actively participating in the urbanization and economic growth of Africa At the award event, Nigeria dusted the table in two of the four award

categories, beating 35 other countries that participated. The country won gold for its CSR initiatives in the education and employment category ahead of Egypt (silver) and Kenya (bronze). Nigeria also won gold in the shelter and infrastructure category ahead of Morocco (silver) and Cote d’Ivoire (bronze). Lafarge Nigeria office in a statement obtained by BusinessDay in Lagos, quotes Miljan Gutovic, LafargeHolcim’s regional head for MEA, as saying that the critical and impactful work done in host communities by the participating countries helped to bring LafargeHolcim’s global sustainable development strategy to life. “The projects presented during the competition demonstrate our commitment across the MEA region to enriching lives within and

beyond our fence. I want to thank all participants for the enthusiasm shown in making real impact on the lives of people in the countries where we operate,” Gutovic noted. The statement reveals that the contribution by the Nigeria office takes its inspiration from the LafargeHolcim 2030 plan which aims to lead in sustainability and set new standards. By 2030, the company’s ambition is to have transformed the way the industry works. It aims to set a strong example for the construction sector to play its part in addressing the planet’s biggest issues. As the global leader in the construction and building materials industry, LafargeHolcim has the opportunity, responsibility and the will to make a positive difference. “As a reward for coming tops, Nigeria’s winning initiative will

be replicated across the MEA to consolidate on its gains”, Gutovic assured. In Nigeria, since 2014, Lafarge has worked assiduously to beat the housing deficit in the country estimated at 17 million units while also helping to meet the United Nations Sustainable Development Goal 9 which is on industrial innovation and infrastructure, and Goal 11 on sustainable cities and communities. As part of its contribution to developing the housing sector in Nigeria, Lafarge introduced the Easy Home initiative in the country. Easy Home is an ambitious housing solution, which, using strategic partnerships helps individuals to build decent homes with a low budget. The company also links prospective home builders to financi-

ers, qualified building professionals and high-quality materials. In 2016 alone, over 30,000 people benefited from the initiative and the aim is to reach a lot more people by 2030. In 2017, Lafarge Africa created the Cement Professionals Training Programme (CPTP), a programme that helps youths with entrepreneurial spirit to achieve their goals in the fields of technology, engineering, cement manufacturing, instrumentation and automation. In its first year, more than 30 youths have been impacted by the programme. In the same year, the company made large investments in diverse social investment programmes and initiatives in its host communities across the country, directly impacting more than 450,000 beneficiaries.

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Why build-to-let investment is unattractive to Nigerian investors Stories By CHUKA UROKO

hough the rental market in Nigeria is more active than sales, only a few real estate investors and developers raise capital to build houses, especially residential, for renting or letting. Over 80 percent of Nigerians in the housing market, especially those in the big cities of Lagos, Abuja and Port Harcourt, Enugu, Kano, Onitsha, etc, are renters and the reason for this are many. At the core of these reasons is poverty. It is estimated that 70 percent of Nigerians are below poverty line, living on a little above a dollar a day. This class of people can neither buy nor build houses on their own and, because mortgage in this environment is still evolving, they have to resort to renting. What this means is that there is huge investment opportunity in the rental market, yet it remains unattractive. Besides poverty, investors are also scared of the long period of time it takes to recoup investment in a buildto-let facility. “Many investors will not go into this kind of investment because, in this part of the world, poverty emboldens tenants. Some of them will rent houses, pay for the first two years and as from the third, they are ready to fight or take you to court. “Given the kind of judicial system we have in Nigeria, the case can drag for more than 10 years and during this period, the tenant will not be paying rent”, noted Meckson Okoro, an estate surveyor and valuer, in Lagos. Yemi Edun, managing director, Daniel Ford International affirms, noting that “rental income of most properties is 5 percent of total cost of property which

gives a minimum of 20-30 years to recoup investment through rent.” He stressed that “low occupancy and cost of repairing and renovating the property every five years or risk of having no tenant push investment recovery periods up to as high as 30-50years”. In the last 20 years, the property market in Nigeria has passed through cycles-upsides and downsides. During boom times, property values generally rise significantly. But Edun says such rise in property value is defective. The increase in the naira value of properties in Nigeria, over the past 20 years, has been mistaken by many as asset appreciation. This is a

very big mistake”, he explained. Within the same 20-year period, the local currency, the Naira has been devalued by more than 5000 percent. The Naira exchanged for the US Dollar in 1989 at $1-N7.35. Today, in 2019, the exchange rate has jumped to $1-N360. Inflation rate in the country has hovered between 12 percent and 18 percent and this, Edun says, is what gives the very false illusion to what seems to be a rise in the Nigerian property value. “If you were to compare it to the Dollar value at time of purchase and adjust for inflation, the property may probably have lost all its real value and so, may be

worth far less than the initial price it was purchased for. In a comparative analysis of properties in Lagos, Edun noted that in Dolphin Estate Ikoyi, whereas the sales price of a duplex is N70,000,000-N80,000, 000, the rental income isN3,500,000N4,000,000 while it takes a minimum of 20-30 years to recoup investment through rental income at 5 percent. At Admiralty Towers, Gerald Road, Ikoyi, the sale’s price is N16 million to N200 million; rental income is N8 million to N10 million and interest rate is 5 percent for a minimum of 2030 years to recoup investment through rental income alone.

Flats at Ocean Parade in Banana Island goes for N280 million- N400 million, rental income is N14 million- N20 million per annum at 5 percent for 20-30 years to recoup investment through rental income. At Stallion Estate, Lobito Crescent, Abuja, sales price is N80 million; rental income is N4 million at 5 percent for 2030 years to recoup investment through rental income alone. At Ozomma Ikakezumba Close, GRA, Onitsha, Anambra State, terrace houses sales price is 85 million; rental income is N4.2 million at 5 percent for a minimum of 20-30 years to recoup investment through rental income alone.

Fine & Country WA wins Best Real Estate Advisory Nigeria 2018

ine & Country International WA, a real estate brand that markets, sells properties and provides real estate advisory services was honoured as the Best Real Estate Advisory Nigeria 2018 by Global Banking and Finance Review in its Global Banking & Finance Awards of 2018. The award by one of the leading financial platforms is in recognition for Fine & Country International WA dedication to

providing leadership and excellence in Real Estate Advisory. Global Banking and Finance Review honours companies that stand out in particular areas of expertise in the banking and finance industry. Fine & Country International WA was awarded the Best Real Estate Advisory Nigeria 2018 because of the company’s outstanding performance and achievements in real estate advisory. Responding to the recogni-

tion, Wanda Rich, Editor of Global Banking & Finance Review said Fine & Country International WA agents offer clients the comprehensive services needed to see them through every stage of their property transaction. “Their in-depth knowledge, professional approach and unique marketing strategy is what helped them stand out as the winner this year,” he concluded by saying “we look forward to seeing more from them

in the years to come.” The Global Banking & Finance Awards honour institutions that stand out in their particular area of expertise in the finance industry. They recognize achievement, challenge, progress and inspirational change in finance globally. Some of the areas where Fine & Country International WA stood out in the review period include; Comprehensive Real Estate Research and Advisory,

Dedication and commitment to client success, Innovative approach to marketing, International and Local Expertise, and Highly proficient and dedicated agents. The UK-based Global Banking & Finance Review is a leading online and print magazine, which has evolved from the growing need to have a more balanced view for informative and independent news for the global banking and finance industry.

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Live @ The Exchanges Top Gainers/Losers as at Monday 14 January 2019 GAINERS Company DANGCEM

Market Statistics as at Monday 14 January 2019

LOSERS Opening

Closing

Change

Company

Opening

Closing

Change

N177

N180

GUINNESS

N66

N65

-1

WAPCO

N12.25

N12.5

0.25

N29

N28

-1

UCAP

N2.83

N2.98

0.15

NAHCO

N3.5

N3.21

-0.29

DIAMONDBNK

N2.02

N2.09

0.07

LINKASSURE

N0.65

N0.59

-0.06

N6.05

0.05

ZENITHBANK

N21.85

N21.8

-0.05

UBN

ASI (Points) DEALS (Numbers)

he Nigeria equities market opened this week on a positive note, helping to sustain preceding trading day’s gain. The shares of largest cement maker, Dangote Cement Plc led other advancers on the Bourse as eleven (11) companies gained as against 11 losers. The Nigerian Stock Exchange (NSE) All Share Index (ASI) appreciated by 0.45percent to close at 29,964.79 points as against preceding trading day low of 29,830.70 points. The value of listed stocks increased from N11.124 trillion to N11.174trillion, implying value gain of about N50billion. The stock market’s Yearto-Date (YtD) returns currently stands at -4.66percent. In 2,542 deals, stock dealers exchanged 132,408,139 units valued at

L-R: Tony Ibeziako, acting head, Listing Business Division, The Nigerian Stock Exchange (NSE); Oscar N. Onyema, OON, chief executive officer, NSE and Tinuade Awe, executive director, Regulation, NSE during the 2018 Market Recap and Outlook for 2019 where the chief executive officer of NSE, Oscar N. Onyema, OON, briefed the stockbroking community, analysts, media and other stakeholders, on the performance of the market in the preceding year and give prognosis for the market for the New Year 2019.

N1.085billion. Diamond Bank Plc, Access Bank Plc, Zenith Bank Plc, Transcorp Plc and United Bank for Africa Plc were actively traded stocks on Monday January 14,

2019. The share price of Dangote Cement Plc increased most by N3 or 1.69percent, from N177 to N180; followed by Lafarge Africa Plc which gained 25kobo or

2,542.00

VOLUME (Numbers)

132,408,139.00

VALUE (N billion)

1.085

MARKET CAP (N Trn

Nigeria equities market sustains gain as Dangote Cement, others rally Stories by Iheanyi Nwachukwu

29,964.79

2.04percent, from N12.25 to N12.5. United Capital Plc share price also gained, from N2.83 to N2.98, adding 15kobo or 5.30percent. Diamond Bank Plc shares were on demand as well leading to its share price rallying from N2.02 to N2.09, adding 7kobo or 3.47percent. Union Bank of Nigeria Plc stock price gained 5kobo from N6 to N6.05, up by 0.83percent. Forte Oil Plc recorded the biggest loss after its share price declined by N1, from N29 to N28, losing 3.45percent. Guinness Nigeria Plc stock price followed after dipping by N1, from N66 to N65, losing 1.52percent. NAHCO Plc stock price was down by 29kobo, from N3.5 to N3.21, losing 8.29percent; Linkage Assurance Plc stock price lost 6kobo, from 65kobo to 59kobo, down by 9.23percent; while Zenith Bank Plc lost 5kobo or 0.23percent of its day-open share price, from N21.85 to N21.8.

11.174

NSE CEO reviews 2018 market performance, gives outlook for 2019

he Nigerian Stock Exchange (NSE) held its 2018 Market Recap and Outlook for 2019 on Monday, January 14, 2018, at the Stock Exchange House, Marina, Lagos. This annual event is a forum for the Chief Executive Officer of NSE, Oscar N. Onyema, to brief the stockbroking community, analysts, media and other stakeholders, on the performance of the market in the preceding year and give prognosis for the market for the New Year 2019. Delivering his presentation, Onyema stated that “the Nigerian economy continued its path of recovery, growing by 1.81percent year on year in real terms as at the third quarter of 2018. The recovery was bolstered by increased stability in the macro environment as the CBN continued to pursue a relatively tight policy stance in an effort to curtail inflation while holding the benchmark rate steady at 14percent; and effec-

tively maintained liquidity and stability in the foreign exchange market during the year. Fuelled by the economic recovery, year on year growth in capital importation to Nigeria reached 114.33percent as at September 2018, from the corresponding period of the previous year”. “To enhance our listing prospects, we have strengthened our government engagement efforts on privatization and listing of state owned enterprises, and we expect to take advantage of opportunities within this space during the year. We also intend to maintain our collaborative efforts with public and private sector stakeholders to advocate for market friendly policies, and cater to infrastructure financing needs as well as other capital requirements necessary for sustainable economic growth. The Exchange intend to work with the private sector as well, to catalyse the listing of more companies”, he said

NSE resumes trading after 4-hour technical glitch Dangote Industries, Dangote Flour Mill, Dangote

he Nigerian Stock Exchange (NSE) on Monday January 14, 2019 encountered a technical glitch which impacted trading activities for about four hours. The glitch was later resolved and market transactions continued at 1:45

p.m, according to Bola Adeeko, Head of Shared Services Division, NSE. Due to the lost trading time the NSE decide to extend the trading hours on Monday to 3:30p.m, from the usual time of 2:30p.m, Adeeko added in a statement by the Exchange yesterday. He further con-

firmed that the root cause of the disruption has been fully rectified. NSE said it has a robust business continuity framework in place with processes designed to forestall and reduce the impact of such unpredictable technical glitches when they occur.

L-R: Uche Olowu, president, The Chartered Institute of Bankers of Nigeria; Mary Uduk, acting director general, Securities and Exchange Commission, and Nike Akande, chairman, NEPAD Business during the Presidential Quarterly Business Forum in Abuja.

Cement, Lafarge Africa make list of ACTN membership

n addition to numerous individual and notable corporate members, the like of Dangote Industries, Dangote Cement, Dangote Flour mills and Lafarge Africa who are key and leading players in their respective sectors have now been enlisted in the membership of the Association of Corporate Treasurers of Nigeria (ACTN). The Association of Corporate Treasurers of Nigeria is a professional association established to foster the interests of Corporate Treasurers of the buy-side and non-bank sell-side of the Nigerian financial markets by providing a platform for policy advocacy, discussions on issues of mutual interest, education and standard development of the corporate treasury

function. Patrick Ajunwoko, Executive Secretary/CEO, Association of Corporate Treasurers of Nigeria said the association is positioned to define the corporate treasury function as well as create value for organisations and the Nigerian economy through advocacy, standards development and education/enlightenment. “Increasingly, the treasury function is playing a crucial and strategic role in today’s corporations. Not only does treasury support the day to day financial objectives of a company (cash management, banking, investment, amongst others), but it also provides crucial information helping business leaders make risk-informed strategic decisions”, he added.

In today’s world, regulatory compliance obligations, fraud and cyber-criminality threats require treasury operations to be run with the greatest operational efficiency. That is why the centralisation, standardisation and automation of treasury processes and workflows remain important for the success of organisations. Consequently, the ACTN as part of its effort towards the education and enlightenment of its members and to ensure standard development of the corporate treasury function is partnering with the ACT, UK in the area of training, education and treasury professional qualifications to ensure global standards and professionalism in the corporate treasury function.

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Tuesday 15 January 2019

Live @ the Stock exchange Prices for Securities Traded as of Monday 14 January 2019 Company

Market cap(nm)

Price (N)

Change

Trades

Volume

Company

Market cap(nm)

Price (N)

Change

Trades

Volume

PRICES FOR MAIN BOARD SECURITIES (Equities) BANKING ACCESS BANK PLC. 163,443.04 5.65 0.88 155 16,467,590 UNITED BANK FOR AFRICA PLC 251,365.75 7.35 0.68 133 6,723,662 684,443.56 21.80 -0.23 284 12,317,356 ZENITH BANK PLC 572 35,508,608 OTHER FINANCIAL INSTITUTIONS FBN HOLDINGS PLC 265,625.17 7.40 1.35 181 4,873,073 181 4,873,073 753 40,381,681 BUILDING MATERIALS DANGOTE CEMENT PLC 3,067,291.33 180.00 1.69 40 237,778 LAFARGE AFRICA PLC. 108,417.85 12.50 2.04 62 576,720 102 814,498 102 814,498 EXPLORATION AND PRODUCTION SEPLAT PETROLEUM DEVELOPMENT COMPANY PLC 338,944.07 576.00 - 40 32,655 40 32,655 40 32,655 895 41,228,834 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 UPDC REAL ESTATE INVESTMENT TRUST 15,876.20 5.95 - 0 0 0 0 0 0 OTHER FINANCIAL INSTITUTIONS NIGERIA ENERYGY SECTOR FUND 411.91 552.20 - 0 0 3,312.39 103.20 - 0 0 VALUEALLIANCE VALUE FUND 0 0 0 0 0 0 CROP PRODUCTION FTN COCOA PROCESSORS PLC 440.00 0.20 - 0 0 OKOMU OIL PALM PLC. 78,220.62 82.00 - 10 107,116 62,000.00 62.00 - 6 36,010 PRESCO PLC 16 143,126 FISHING/HUNTING/TRAPPING ELLAH LAKES PLC. 511.20 4.26 - 0 0 0 0 LIVESTOCK/ANIMAL SPECIALTIES LIVESTOCK FEEDS PLC. 1,590.00 0.53 - 12 283,659 12 283,659 28 426,785 DIVERSIFIED INDUSTRIES A.G. LEVENTIS NIGERIA PLC. 767.71 0.29 - 0 0 JOHN HOLT PLC. 186.79 0.48 - 0 0 1,903.99 2.93 - 0 0 S C O A NIG. PLC. TRANSNATIONAL CORPORATION OF NIGERIA PLC 52,842.39 1.30 0.78 91 9,783,392 25,067.28 8.70 - 19 37,735 U A C N PLC. 110 9,821,127 110 9,821,127 BUILDING CONSTRUCTION ARBICO PLC. 711.32 4.79 - 0 0 0 0 INFRASTRUCTURE/HEAVY CONSTRUCTION JULIUS BERGER NIG. PLC. 37,488.00 28.40 - 7 28,980 ROADS NIG PLC. 165.00 6.60 - 0 0 7 28,980 REAL ESTATE DEVELOPMENT UACN PROPERTY DEVELOPMENT COMPANY PLC 4,287.35 1.65 - 1 1,562 1 1,562 8 30,542 AUTOMOBILES/AUTO PARTS DN TYRE & RUBBER PLC 954.53 0.20 - 0 0 0 0 BEVERAGES--BREWERS/DISTILLERS CHAMPION BREW. PLC. 12,135.72 1.55 - 1 230 GOLDEN GUINEA BREW. PLC. 242.22 0.89 - 0 0 GUINNESS NIG PLC 142,374.88 65.00 -1.52 29 1,943,524 INTERNATIONAL BREWERIES PLC. 266,471.72 31.00 - 5 12,140 NIGERIAN BREW. PLC. 623,758.36 78.00 - 50 582,835 85 2,538,729 FOOD PRODUCTS DANGOTE FLOUR MILLS PLC 31,500.00 6.30 0.80 52 471,524 DANGOTE SUGAR REFINERY PLC 168,000.00 14.00 - 27 102,175 FLOUR MILLS NIG. PLC. 79,137.33 19.30 - 39 309,215 HONEYWELL FLOUR MILL PLC 9,119.73 1.15 - 13 262,875 MULTI-TREX INTEGRATED FOODS PLC 1,340.10 0.36 - 0 0 775.17 4.35 - 0 0 N NIG. FLOUR MILLS PLC. NASCON ALLIED INDUSTRIES PLC 47,689.89 18.00 - 19 315,539 UNION DICON SALT PLC. 3,676.41 13.45 - 0 0 150 1,461,328 FOOD PRODUCTS--DIVERSIFIED CADBURY NIGERIA PLC. 18,782.02 10.00 - 12 33,290 NESTLE NIGERIA PLC. 1,110,590.67 1,401.10 - 31 19,957 43 53,247 HOUSEHOLD DURABLES NIGERIAN ENAMELWARE PLC. 1,680.31 22.10 - 0 0 VITAFOAM NIG PLC. 4,690.67 4.50 - 18 52,978 18 52,978 PERSONAL/HOUSEHOLD PRODUCTS P Z CUSSONS NIGERIA PLC. 47,645.72 12.00 - 19 74,655 UNILEVER NIGERIA PLC. 212,565.20 37.00 - 12 23,671 31 98,326 327 4,204,608 BANKING DIAMOND BANK PLC 48,405.21 2.09 3.47 131 50,104,086 ECOBANK TRANSNATIONAL INCORPORATED 247,718.94 13.50 - 17 104,042 FIDELITY BANK PLC 57,949.59 2.00 - 34 463,896 GUARANTY TRUST BANK PLC. 985,944.50 33.50 -0.15 124 5,296,917 JAIZ BANK PLC 14,732.12 0.50 -5.66 7 762,792 SKYE BANK PLC 10,687.83 0.77 - 0 0 STERLING BANK PLC. 56,717.12 1.97 -0.51 303 2,621,565 UNION BANK NIG.PLC. 176,180.55 6.05 0.83 18 257,611 UNITY BANK PLC 9,702.15 0.83 - 0 0 WEMA BANK PLC. 22,373.19 0.58 -3.33 33 3,834,254 667 63,445,163 INSURANCE CARRIERS, BROKERS AND SERVICES AFRICAN ALLIANCE INSURANCE PLC 4,117.00 0.20 - 0 0 AIICO INSURANCE PLC. 4,435.33 0.64 - 8 78,293 AXAMANSARD INSURANCE PLC 18,900.00 1.80 - 10 794,660 CONSOLIDATED HALLMARK INSURANCE PLC 2,660.00 0.38 - 1 939 CONTINENTAL REINSURANCE PLC 19,811.94 1.91 - 0 0 CORNERSTONE INSURANCE PLC 3,240.49 0.22 - 3 174,272 GOLDLINK INSURANCE PLC 2,411.47 0.53 - 0 0 GREAT NIGERIAN INSURANCE PLC 1,913.74 0.50 - 0 0 GUINEA INSURANCE PLC. 1,412.20 0.23 - 0 0 INTERNATIONAL ENERGY INSURANCE PLC 487.95 0.38 - 0 0 LASACO ASSURANCE PLC. 2,123.80 0.29 -3.33 8 614,250 LAW UNION AND ROCK INS. PLC. 2,362.98 0.55 - 2 22,000 LINKAGE ASSURANCE PLC 4,720.00 0.59 -9.23 5 500,274 MUTUAL BENEFITS ASSURANCE PLC. 1,680.00 0.21 5.00 6 548,222 NEM INSURANCE PLC 9,135.27 1.73 - 18 306,592 NIGER INSURANCE PLC 1,702.69 0.22 - 1 281 PRESTIGE ASSURANCE PLC 2,691.28 0.50 - 0 0 REGENCY ASSURANCE PLC 1,333.75 0.20 - 2 41,350 SOVEREIGN TRUST INSURANCE PLC 1,668.16 0.20 - 1 500,000 STACO INSURANCE PLC 4,483.72 0.48 - 0 0 STANDARD ALLIANCE INSURANCE PLC. 2,582.21 0.20 - 0 0 SUNU ASSURANCES NIGERIA PLC. 2,800.00 0.20 - 0 0 UNIC DIVERSIFIED HOLDINGS PLC. 516.46 0.20 - 0 0 UNIVERSAL INSURANCE PLC 3,200.00 0.20 - 1 5,000 VERITAS KAPITAL ASSURANCE PLC 3,050.67 0.22 - 1 100 WAPIC INSURANCE PLC 5,353.10 0.40 -9.09 25 402,765

92 3,988,998 MICRO-FINANCE BANKS FORTIS MICROFINANCE BANK PLC 11,799.67 2.58 - 0 0 3,635.75 1.59 - 3 6,442 NPF MICROFINANCE BANK PLC 3 6,442 MORTGAGE CARRIERS, BROKERS AND SERVICES ABBEY MORTGAGE BANK PLC 4,116.00 0.98 - 0 0 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 3,852.11 0.34 -8.11 5 2,100,000 2,949.22 3.02 - 0 0 UNION HOMES SAVINGS AND LOANS PLC. 5 2,100,000 OTHER FINANCIAL INSTITUTIONS AFRICA PRUDENTIAL PLC 7,900.00 3.95 - 21 383,626 CUSTODIAN INVESTMENT PLC 31,173.88 5.30 - 3 12,586 660.00 0.44 - 0 0 DEAP CAPITAL MANAGEMENT & TRUST PLC FCMB GROUP PLC. 34,456.72 1.74 2.35 37 743,149 ROYAL EXCHANGE PLC. 1,131.98 0.22 4.76 1 100,000 472,601.52 46.15 - 13 65,124 STANBIC IBTC HOLDINGS PLC UNITED CAPITAL PLC 17,880.00 2.98 5.30 60 2,907,412 135 4,211,897 902 73,752,500 HEALTHCARE PROVIDERS EKOCORP PLC. 1,680.29 3.37 - 0 0 UNION DIAGNOSTIC & CLINICAL SERVICES PLC 923.82 0.26 - 3 21,500 3 21,500 MEDICAL SUPPLIES MORISON INDUSTRIES PLC. 544.04 0.55 - 0 0 0 0 PHARMACEUTICALS EVANS MEDICAL PLC. 366.17 0.50 - 0 0 FIDSON HEALTHCARE PLC 7,425.00 4.95 - 3 40,090 GLAXO SMITHKLINE CONSUMER NIG. PLC. 14,589.69 12.20 - 8 2,145 2,401.00 2.45 - 1 1,000 MAY & BAKER NIGERIA PLC. NEIMETH INTERNATIONAL PHARMACEUTICALS PLC 1,208.55 0.70 - 9 436,420 556.71 3.62 - 0 0 NIGERIA-GERMAN CHEMICALS PLC. PHARMA-DEKO PLC. 325.23 1.50 - 0 0 21 479,655 24 501,155 COMPUTER BASED SYSTEMS COURTEVILLE BUSINESS SOLUTIONS PLC 710.40 0.20 - 0 0 0 0 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 0 648.00 6.00 - 0 0 NCR (NIGERIA) PLC. TRIPPLE GEE AND COMPANY PLC. 381.11 0.77 - 0 0 0 0 PROCESSING SYSTEMS CHAMS PLC 939.21 0.20 - 0 0 16,590.00 3.95 - 3 3,005 E-TRANZACT INTERNATIONAL PLC 3 3,005 3 3,005 BUILDING MATERIALS BERGER PAINTS PLC 2,492.48 8.60 - 3 3,116 22,050.00 31.50 - 23 54,942 CAP PLC CEMENT CO. OF NORTH.NIG. PLC 262,870.02 20.00 - 12 52,784 759.73 0.36 9.09 2 130,000 FIRST ALUMINIUM NIGERIA PLC MEYER PLC. 313.43 0.59 - 0 0 PORTLAND PAINTS & PRODUCTS NIGERIA PLC 1,999.41 2.52 - 0 0 PREMIER PAINTS PLC. 1,279.20 10.40 - 0 0 40 240,842 ELECTRONIC AND ELECTRICAL PRODUCTS AUSTIN LAZ & COMPANY PLC 2,256.91 2.09 - 0 0 CUTIX PLC. 3,170.38 1.80 - 4 22,690 4 22,690 PACKAGING/CONTAINERS BETA GLASS PLC. 33,498.12 67.00 - 2 39 GREIF NIGERIA PLC 388.02 9.10 - 0 0 2 39 AGRO-ALLIED & CHEMICALS NOTORE CHEMICAL IND PLC 100,754.14 62.50 - 0 0 0 0 46 263,571 CHEMICALS B.O.C. GASES PLC. 1,577.57 3.79 - 4 8,840 4 8,840 METALS ALUMINIUM EXTRUSION IND. PLC. 1,803.64 8.20 - 0 0 0 0 MINING SERVICES MULTIVERSE MINING AND EXPLORATION PLC 852.39 0.20 - 0 0 0 0 PAPER/FOREST PRODUCTS THOMAS WYATT NIG. PLC. 50.60 0.23 - 0 0 0 0 4 8,840 ENERGY EQUIPMENT AND SERVICES JAPAUL OIL & MARITIME SERVICES PLC 1,252.54 0.20 - 1 10,000 1 10,000 INTEGRATED OIL AND GAS SERVICES OANDO PLC 53,455.07 4.30 - 68 509,378 68 509,378 PETROLEUM AND PETROLEUM PRODUCTS DISTRIBUTORS 11 PLC 66,349.53 184.00 - 10 2,504 CONOIL PLC 16,134.39 23.25 - 5 848 ETERNA PLC. 5,607.82 4.30 -5.81 30 942,623 FORTE OIL PLC. 36,469.47 28.00 -3.45 27 206,833 MRS OIL NIGERIA PLC. 7,055.81 23.15 - 1 19 TOTAL NIGERIA PLC. 67,972.27 200.20 - 9 5,064 82 1,157,891 151 1,677,269 ADVERTISING AFROMEDIA PLC 2,219.52 0.50 - 0 0 0 0 AIRLINES MEDVIEW AIRLINE PLC 19,988.83 2.05 - 0 0 0 0 AUTOMOBILE/AUTO PART RETAILERS R T BRISCOE PLC. 411.72 0.35 - 1 15,000 1 15,000 COURIER/FREIGHT/DELIVERY RED STAR EXPRESS PLC 2,593.79 4.40 - 3 7,909 TRANS-NATIONWIDE EXPRESS PLC. 328.19 0.70 - 0 0 3 7,909 HOSPITALITY TANTALIZERS PLC 642.33 0.20 - 0 0 0 0 HOTELS/LODGING CAPITAL HOTEL PLC 4,801.22 3.10 - 1 8 IKEJA HOTEL PLC 2,889.53 1.39 - 4 10,200 TOURIST COMPANY OF NIGERIA PLC. 7,862.53 3.50 - 0 0 TRANSCORP HOTELS PLC 46,362.46 6.10 - 0 0 5 10,208 MEDIA/ENTERTAINMENT DAAR COMMUNICATIONS PLC 4,800.00 0.40 - 0 0 0 0 PRINTING/PUBLISHING ACADEMY PRESS PLC. 302.40 0.50 - 0 0 LEARN AFRICA PLC 956.60 1.24 - 0 0

Tuesday 15 January 2019

BUSINESS DAY

38 BUSINESS DAY NEWS

NSE eyes 2019 for derivatives market take... Continued from page 1

of dealing members”, said Oscar Onyema, its chief executive officer. Derivatives are contracts whose values are based on an agreed-upon underlying financial asset, index or security. Common underlying instruments include bonds, commodities, currencies, interest rates, market indexes and stocks. An equity derivative is a financial instrument whose value is based on the equity movements of the underlying asset. Onyema, who cautiously gave the timeline, Monday, at the 2018 Market Recap and 2019 Outlook, told the market community present that the in-house structure that should enable the equities derivatives market take-off is already in place, adding that it remains the Central Counterparty (CCP) clearing house which is very important for efficient equitiesderivatives market. CCP-cleared derivatives are settled daily, which means that gains and losses from a day’s trading are deducted or credited to an investor’s account each day, leading up to the expiry of the contract. Derivatives traded on the NSE

will be cleared by a Central Counterparty (CCP) through a process known as novation. Novation is the replacement of the initial contract between counterparties matched in the trading engine with a new contract between the CCP and the investors, making the CCP the buyer to the seller and the seller to the buyer. In the wake of increased level of voluntary delisting from the NSE and the bourse’s desire to attract more listing, Onyema said the management and National Council members continue to engage listed companies not to delist. No fewer than 17 companies earlier listed on the NSE voluntarily delisted between 2002 and 2018, BusinessDay recent check shows. This is in addition to many others that were regulatory-induced or due to their M&A consummation. “We will continue to ensure listed companies get value. The reality around the world is free entry and free exit. We are trying to work with companies to meet their post-listing rules. Some of the companies delisting are struggling to meet post-listing rules,” Onyema said. “We engage with them (compa-

www.

nies) at a very high level to know whether there are issues they face that we can address. Voluntary delisting is something that Exchanges around the world are continuously addressing because the market is free entry and free exit,” he said. On the outlook for 2019, Onyema said domestically, the expectation is that market sentiments in the first half (H1) of the year will be driven by uncertainty in oil prices as well as the 2019 general elections. “Accordingly, we anticipate volatility in equities market in H1’2019, with enhanced stability post-elections. We believe swift approval and implementation of the 2019 budget may have a positive impact on companies’ earnings as well as consumer spending. Therefore, we anticipate a return of listings during the year with an uptick in market activity during the second half (H2) of 2019,” he said. On demutualisation of the Exchange, the CEO said the Demutualisation Bill which was signed into law has been assented to by the president. “We are currently working on the final stages of the demutualisation process.TheActhasalreadybeengazetted, the copies are available,” he said. Demutualisation is the process of convertingtheNigerianStockExchange

L-R: Geoffrey Onyeama, minister of foreign affairs; President Muhammadu Buhari, and Philip Baker, Canadian High Commissioner to Nigeria, during Mr Baker’s presentation of Letter of Credence to the President at the Presidential Villa in Abuja, yesterday. NAN

Onnoghen: Again, Nigeria fails democracy... Continued from page 1

advertises its challenges with

entrenching democratic norms,” SBM Intelligence said in a report, Monday. Veronica Igube, data analyst at SBM Intelligence, told BusinessDay by phone that the way the current executive is interfering is totally unseen and against the rule of law because there is a process. Igube explained that arraigning the CJN at this critical period, few weeks before the general elections, is painting a bad picture for the executive and the international community is watching. “Even if he was at fault of not declaring, there is always a process. It’s all a whole media trial that they are doing, just like they did in 2016 with those judges they harassed which was also wrong,” Igube said. “It’s sad that first they did a drama with the legislature which didn’t work out fine, and now the next is to hit on the Judiciary which might skew lots of votes to the opposition. The Judiciary is the last hope of the people. So when people perceive that the Judiciary is being oppressed by the executive, it might lead to chaos,” Igube told BusinessDay. Onnoghen’s trial was stalled on

Monday due to his absence in court. Onnoghen was expected to appear before the Code of Conduct Tribunal (CCT), Abuja, to answer to a six-count criminal charge bordering on alleged non-declaration of assets as well as operating a domiciliary account. The tribunal adjourned the matter till January 22 for the arraignment of Onnoghen and the hearing of all applications relating to the matter. However, a Federal High Court in Abuja on Monday stopped the Federal Government from arraigning Justice Onnoghen before the CCT. The President Muhammadu Buhari administration has recorded many firsts as far as the prosecution of public figures is concerned. Highprofile individuals that have been docked for corruption-related cases since the present administration assumed office in 2015 include Bukola Saraki, Senate president, Paul Usoro, president, Nigeria Bar Association (NBA), among others. But the planned arraignment of Onnoghen has drawn wide reaction from many quarters. The timing of the action, coming a month to the 2019 general election, and the speed with which the case was handled, are a source of worry to analysts. “There is an established line of laws, legal directives and judicial

precedent, including a 2017 Court of Appeal case (Nganjiwa v The Federal Republic of Nigeria) which states that a judicial officer who has not been investigated by the National Judicial Council (NJC) and sanctioned for misconduct cannot be arraigned in any criminal court in Nigeria,” said SBM Intelligence in its report. Recall that in December 2017, the Court of Appeal, Lagos Division, struck out the corruption charges filed by the Economic and Financial Crimes Commission (EFFC) against a judge of the Federal High Court, Justice Hyeladzira Nganjiwa. The appellate court ruled that no serving judge in Nigeria can be investigated or tried in any court or tribunal, except after he had been subjected to the investigatory and disciplinary processes of the National Judicial Council (NJC). Relying on Section 158 of the 1999 Constitution, it ruled that only the NJC had the powers to try judicial officers for any misconduct while in office. But the present attempt to subvert this established process by the Federal Government, SBM Intelligence said, will undoubtedly increase the tension between the executive and judiciary under this administration. The Cross River State native’s predecessor in office, Mahmud Mohammed, was not only a northerner, but Onnoghen was also the first southern holder

from an organisation which exists for the benefit of its members to one which is public and investor-owned. The NSE equity market started last year on a high, with the All Share Index (ASI) reaching a 10-year peak of 45,092.83 in January 2018. This was largely driven by the positive performance of the ASI in 2017 which emerged the best in Africa. As the market approached the second quarter (Q2), political risks, oil price volatility and rising global yields resulted in bearish sentiments that saw the ASI and equity market capitalisation fall by 17.81 percent and 13.87 percent, respectively, to close at 31,430.50 points and N11.73 trillion. While listing activity remained relatively low during the year, (one listing and four delistings), equity turnover remained relatively stable, marginally declining by 5.45 percent to N1.20 trillion. Turnover velocity inched up 0.91 percentage points to 10.25 percent. Likewise, the size of volumes traded in the period

Tuesday 15 January 2019

increased by 0.96 percent to 101.43 billion, with the financial services sector being responsible for the highest traded volume and value. In the year under review, foreign portfolio investments outpaced domestic participation by 1.73 percent, accounting for 50.87 percent of total transactions, while domestic transactions accounted for 49.13 percent. Within domestic institutional order flow was 56 percent while retail order flow was 44 percent. Fixed income market capitalisation increased by 11.75 percent to N10.17 trillion in 2018, from N9.10 trillion in 2017. Capital raising on the NSE was dominated by the Federal Government which borrowed N1.16 trillion in a bid to finance fiscal and infrastructure deficits. State governments raised N125.59 billion in new debt capital, while corporates raised a total of N31.47 billion. The market also witnessed the listing of a N100billion FGN Ijarah Sukuk designed to finance critical road infrastructure across the country.

Nigeria’s electricity consumers to heave... Continued from page 2

Disco, which previously held the title. These Discos are closely followed by Ibadan Disco, but Yola Disco had the least number of customers within the period under review. NERC obligated the Discos by virtue of their performance contracts to provide meters for customers. However, they were constrained by foreign exchange challenges which sent the price of meters through the roof. They further said they were handicapped by poor collection rates and low tariff due to refusal of the government to allow them raise electricity tariff. “I think people are taking advantage of the Meter Asset Provider regulation. When you visit NERC’s website you will find companies, both indigenous and non-indigenous, who have been approved by the Commission to supply prepaid meters,” Pedro Omontuemhen, partner, PricewaterhouseCoopers Nigeria, told BusinessDay. The prepaid metering system provides an effective mechanism for measuring electricity supplied in the of the position since Lagos-born Justice Ayo Gabriel lrikefe in 1987 – a stretch that covers eight consecutive northern chief justices. Adding fuel to this notion, Justice Ibrahim Tanko Mohammed, a Bauchi native, is next in line to Onnoghen and will be the direct beneficiary of the latter’s ouster, coupled with the fact that the petition was spearheaded by a former aide to the President. SBM Intelligence’s findings follow a consensus of legal opinions, including six legal practitioners it consulted in preparing the report. “This administration started on a bang when Department of State Security operatives invaded the homes of some of the country’s most senior judges in 2016. That action, roundly condemned at the time, has not yielded any successful prosecution,” it said. SBM Intelligence noted that Onnoghen was hardly President Buhari’s favoured choice for the role because going back to November 2016, the president delayed the current CJN’s appointment for three months under circumstances that led to speculation that he favoured a northern appointee. “That suspicion has hardly been dispensed with since,” it said. The 1999 Constitution of the Federal Republic of Nigeria (as amended) stipulates the conditions upon which a Chief Justice of Nigeria

country as the device makes it possible to accurately measure power consumption. This is why NERC conceived the Meter Asset Provider (MAP) regulation that allows for third-party investment in electricity metering which consumers would offset after an agreed period based on installments. “A measure of how successful the regulation has been will be how many meters have been provided and how many Discos have entered into agreements with contractors for this purpose,” Omontuemhen added. NERC in March 2018 issued a deadline of August 1, 2018 to the 11 Discos to engage the services of MAP, stressing that the move is aimed at achieving the three-year target prescribed by the commission. The commission had earlier announced the introduction of the MAP Regulation, which it said would become effective on April 3, 2018, emphasising that the policy thrust was meant to ensure that electricity customers only pay what they actually consume. can be removed from office. Specifically, Section 292 (1) (a) (i) of the Constitution states that a judicial officer can be removed on three grounds: inability to discharge the functions of office or appointment, which could arise from infirmity of the mind or of body; misconduct or contravention of the Code of Conduct. “A judicial officer shall not be removed from office or appointment before his age of retirement except in the following circumstances: (a) in case of: (i) The Chief Justice of Nigeria….by the President acting on an address supported by two-thirds majority of the Senate... praying that he be so removed for his inability to discharge the functions of his office or appointment (whether arising from infirmity of mind or of body) or for misconduct or contravention of the code of conduct,” the section reads. The import of the constitutional provision is that 73 senators are needed to remove the head of the Judiciary. However, political commentators say this would be a tall order considering the fact that both the Presidency and the Upper Legislative Chamber have been at loggerheads since 2015 after Saraki emerged Senate president against the wish of his former party, the All Progressives Congress (APC).

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Governance takes back seat, as Senate resumes plenary on tomorrow OWEDE AGBAJILEKE, Abuja

arring any unforeseen circumstances, the Senate will resume plenary on Wednesday, January 16, 2019. The resumption comes exactly one month to the February 16, 2019 Presidential and National Assembly elections. Findings reveal that 69 senators (representing 63%) are currently seeking reelection on various political platforms, even as there are concerns that lawmakers may abandon their constitutional responsibilities and stay back in their constituencies to canvass for votes. It is also gathered that upon resumption, the lawmakers will sit for only two weeks and adjourn on Thursday, January 24, to enable them participate in the 2019 elections. Some of the executive re-

quests before the National Assembly that need legislative approval include the 2019 to 2021 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP), N8.83 trillion 2019 budget and other critical bills. Investigations reveal that approval of the MTEF/FSP as well as Second Reading of the budget would be concluded by next week. “Immediately they resume, they would swing into action to approve the Medium Term Expenditure Framework and Fiscal Strategy Paper. Debate on general principles of the budget will be slated for three days: January 22 to 24, after which it would be referred to the Appropriations Committee and they would then adjourn until after the 2019 elections,” a source who confided in BusinessDay on condition of anonymity, discloses.

President Buhari had on November 6, 2018, transmitted the 2019-2021 MTEF/ FSP to the National Assembly for consideration and approval. It was also gathered that the Senate would use of period of the two weeks sitting to consider the report of the Technical Committee on Declined Assent to Bills by President Buhari. The David Umaru-led panel had presented its report on December 12, 2018. It would be recalled that on September 10, 2018, Senate President Bukola Saraki, had announced the setting up of a technical committee to review 14 critical bills rejected by President Buhari. Some of the bills include: the Petroleum Industry Governance Bill (PIGB), Stamp Duties (Amendment) Bill, Industrial Development (Income Tax Relief) (Amendment) Bill, National Research and Innovation

Council (Est.) Bill, National Institute of Hospitality and Tourism (Est.) Bill and National Agricultural Seeds Council Bill. Others are Chattered Institute of Entrepreneurship (Est.) Bill, Electoral Act (Amendment) Bill, Advance Fee Fraud and Other Related Offences (Amendment) Bill, Subsidiary Legislation (Legislative Scrutiny) Bill, Nigerian Maritime Administration and Safety Agency (Amendment) Bill as well as five constitution amendment bills. Analysts have expressed concerns that the lawmakers may abandon critical bills and focus on their re-election bid. It is also gathered that the 40 senators who lost their return tickets in the last National Assembly primaries are already lobbying to be co-opted into the presidential campaign councils of the two major political parties: the PDP and the APC.

L-R: Jimi Agbaje, Peoples Democratic Party (PDP) Governorship Candidate in Lagos State, his counterpart in the Alliance for Democracy (AD), Owolabi Salis; Victor Oladokun, moderator; Babajide Olusola Sanwo-Olu, All Progressives Congress (APC), Governorship Candidate, and his Counterpart in Action Democratic Party (ADP), Babatunde Gbadamosi, after their governorship debates, tagged “The Platform”, in Lagos.

FG confirms reforms in mining sector paying off with appreciation in revenues, royalties, others HARRISON EDEH, Abuja

ederal Government on Monday confirmed that various reform initiatives embarked upon in the mines and steel development Ministry are paying off, with recorded appreciation in revenue and royalties, pointing way forward for a sector that is taking the lead on government diversification efforts. ”Under the current administration of President Muhammadu Buhari’s strategic interventions from 2016, the mining sector has witnessed a steady rise in the contribution to the nation’s GDP from 0.33% in 2015 to 0.6% in 2016,” Abubakar Bawa Bwari, minister of state for industry, trade and investment said on Monday, as he delivered the threeyear account of stewardship in the ministry.

The minister said the overall revenue generated by the ministry from royalties and fees had improved from N2.08 billion in 2015 to N3.92 billion in 2017, and N2.97 billion as of October 2015, adding that limestone mining had continued to lead in royalties earned by the government. Accordingly, the minister informed that within the period under review, the Mining Cadastre Office realised N5.2 billion as revenue generated through processing and other licensing fees. On the key reforms to address concerns of under valuation of royalties, the minister said, “Under the soon to be released Mineral Export Guidelines, the lingering issue of evading payment of royalties or false declarations has been dealt with,” adding, “All mineral exports shall henceforth be

inspected by government appointed independent preshipment inspection agents, who shall render quantity and quality control services and monitor pricing.” In further remarks, he said a demand gap analysis of industrial minerals used by local industries had established the annual importation of $46.3 million worth of industrial minerals despite available local deposits, as he revealed that the government was intensifying efforts on local production. He said, “The desire to facilitate local production of there minerals is aimed at conserving foreign exchange and creating jobs and wealth for the citizenry. Consequently, the Ministry facilitated the development of roadmap for the nation’s industrial minerals.” Also, he pointed out that the limestone resource

base of the country had increased from 2.3 billion tons to 10.6 billion tons, as it was found to occur in 14 states, comprising Sokoto, Gombe, Benue, Kogi, Edo, Oyo, Ogun, Cross River, Ondo, Plateau, Bauchi, Akwa-Ibom, Enugu and Ebonyi states. “An estimated 4.8 billion tons of marble was also found to occur in Nassarawa, Ondo, Edo, Oyo, Kogi, Kwara, Niger, Kebbi states and the FCT,” he said. On ease of doing business, he said, “We have continued to address issues towards achieving a decent ranking in the Fraser’s Investment Attractiveness Index.” On support to artisanal miners, the minister said with the Ministry in collaboration with the Bank of Industry, established a smallscale mining loan scheme with the Bank of Industry.

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Analysis

The Prosperity Paradox: How Innovation Can Lift Nations Out of Poverty ...The Power of Outsiders CLAYTON M. CHRISTENSEN, EFOSA OJOMO & KAREN DILLON

very industry would do well to have outsiders—or those that are not yet experts— in it. Outsiders are able to ask simple questions that many experts, often for good reason, may not think to ask. These outsiders are not yet immersed in a pool of expertise and assumptions that sometimes lead to cognitive capture or cognitive tunnelling, a phenomenon of inattentional blindness where observers are too focused on particular tasks and not on the environment. Consider, for instance, the case of Malcolm McLean. Many of us have never heard of him, but we owe a lot of our ability to more efficiently trade globally to this former truck driver–turned-millionaire who only had a high school degree. McLean was a North Carolinian truck driver who found himself waiting for hours at a loading dock the day before Thanksgiving in 1937, when inspiration struck. As McLean was thinking about how fast he could leave the port to get home in time for Thanksgiving Dinner, a time-honoured tradition in the United States, he realised that the dominant shipping method at the time, break-bulk cargo, was very inefficient and quite dangerous. McLean thought, surely there had to be a better way. He asked a foreman, “Why don’t you just take my whole truck and put it on the ship?” The foreman, a bit unsure of what that would even entail, laughed at McLean. At the time, every shipper knew that the fastest way to move products from one place to another was to build bigger and faster ships. “But McLean thought the key to a more efficient transport system was not to build faster ships, but to build faster docks. Since McLean was not an expert in shipping, he wasn’t taken seriously. But it was precisely because McLean was an outsider that he could see what the others could not.” Today it seems obvious, but it wasn’t until 20 years later, after McLean bought his own shipping company and built a special boat and equipment for loading and unloading containers, that several others began to buy into his vision. McLean’s innovation— containerisation—reduced shipping costs from approximately $6 a ton to just 16 cents, and he reduced the loading and unloading time of a ship from one week to eight hours. Safety on shipping docks was also a big

concern, but McLean’s technology of shipping whole containers without unloading drastically reduced injuries on shipping docks. When McLean died, he had not only revolutionised global trade, but he was also worth roughly $330 million. Not bad for a high school graduate from North Carolina. Containerisation, a process that seems so obvious in hindsight, was laughed at because it went against the norm. It was not how things were done. But McLean and containerization are not alone when it comes to going against conventional wisdom, especially when it has such great potential in fundamentally changing the way we do things in society. In a similar way McLean saw things differently, an entrepreneur in Nigeria is currently doing the same. Here’s the story of Tomato Jos. Nigerians love tomatoes. From the internationally popular dish jollof rice, to the country’s many soups that use tomatoes as a base, Nigerians have become the largest importers of tomato paste in the world. The West African country imports 100 percent of the tomato paste it consumes, amounting to approximately $1 billion of tomato paste imports annually. At the time of this writing, no single can of tomato paste was produced in the country, which is populated by 180 million people. What’s particularly striking about the Nigerian tomato market today is that Nigerian farmers grow over 2 million metric tons of tomatoes annually, but more than half their harvest rots before getting to the customer. This goes back to our point about the fact that a product must be both affordable and available in order to adequately target nonconsumption and create a new market. Also, the average Nigerian spends more than half their income on food, making access to tomatoes somewhat of a luxury, with more than half the Nigerian market for tomatoes underserved. Considering Nigeria’s low per capita income, infrastructure challenges, and the fact that the country’s middle-class isn’t growing as fast as experts thought, conventional wisdom suggests there is either no opportunity here, or whatever opportunity exists is too risky. But when we use a different lens to assess the landscape, we see vast market-creation opportunity that can be addressed. Christensen, Ojomo and Dillon are of the Clayton Christensen Institute for Disruptive Innovation

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140 support groups Nigerians’ medical tourism spend, trade return to Atiku Campaign drive air pact with India, analysts say OWEDE AGBAJILEKE, Abuja

o fewer than 140 support groups have returned to the campaign team of the presidential candidate of the People’s Democratic Party (PDP), Atiku Abubakar. They returned to the PDP after a sojourn in the All Progressives Congress (APC). It would be recalled that last year, about 145 PDP support groups withdrew their support for the Atiku campaign and moved to the APC on allegations of marginalisation, ingratitude and lack of support. But the 140 groups under the aegis of the Coalition of Atikuate Leaders Forum, in a press conference on Monday at the PDP Presidential Campaign headquarters, Legacy House, Abuja, announced their return to the party. They admitted they were aggrieved but stated that after reassurances from the director-general of Atiku Support Group, Nath Yaduma, they resolved to return and work for the successful election of Atiku. The national coordinator of the group, Pastor Franklin Eze and National Secretary, Oyegoke Olawale, stressed that the coalition has resolved to put their grievances behind.

Olawale said: “We have come to state categorically that of the alleged 145 support groups, not less than 140 groups, as you can see, are still with His Excellency Atiku Abubakar except for ‘Atiku reloaded’ support group, led by El-Mikedo and a few others like him who have decided to reduce the nobility associated with politics and politicking into a bread and butter business. “Therefore, let nobody use the names of our various groups to go about collecting money from APC as that amounts to impersonation, outright falsehood and political prostitution orchestrated on the altar of the spirit of Balaamism. That is the spirit of avarice and kleptomenia.” The coalition explained that the ruling party and its government has no respect for democratic institutions and uses official institutions to its advantage. “We cannot associate our groups to a government that have absolute and outright disregard for the rules of law that allows for a just and fair society, a government that has annexed the Nigerian Police Force (NPF) and the Independent National Electoral Commission (INEC) as an extension of her party.

IFEOMA OKEKE

he amount of money that India rakes in every year from Nigerians that go on medial tourism to that Asian country was a major spur behind the recent bilateral pact signed by the two countries, analysts have said. The rising volume of trade existing between the two countries also drove the pact, they added. Nigeria and the Republic of India recently signed a Bilateral Air Service Agreement, which will soon enable passengers being processed from Nigeria to enjoy direct flight to India, Hadi Sirika, the minister of State, Aviation, said on his twitter handle yesterday. Sirika said the air pact was aimed at easing air transport from Nigeria to India. Although Sirika didn’t give details of the agreement, aviation experts said this must have been driven by the huge health tourism to India and the rising volume of business between the two countries. “The driver of this development is the fact that there is a lot of health tourism from Nigeria to India and that a lot of Indians are doing business in Nigeria,” Tayo Ojuri,

an industry expert and chief executive officer, Aglo Limited, an aviation support service provider, told BusinessDay by phone from Lagos. “Nigeria and India also have large population and market strata. There are some levels of balance of trade between the two countries,” Ojuri explained. Last year, Babatunde Ruwase, president, Lagos Chamber of Commerce and Industry, said the trade volume between both countries had hit over $20 billion, maintaining that the trade had brought about strong bilateral relationship. Estimates of how much Nigerians spend per annum on medical tourism to India vary from $1 billion to $1.3 billion. Medical conditions for which Nigerian seek treatment in India include heart and kidney diseases. Ruwase charged Indian investors to take advantage of Nigeria’s agricultural, health and ICT sectors, pointing out that both countries could achieve a lot in these sectors. Bismark Rewane, CEO, Financial Derivatives Company Limited, said Nigeria has benefitted more than India as it recorded $5.4 billion from bilateral trade.

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Nigeria’s AUM to GDP lags other emerging markets on low compliance to pension scheme DAVID IBIDAPO & FAMINU GBEMI

mong other factors, analysts say low compliance to pension scheme and shallow retail banking activity in the banking sector as major factors causing slow growth in the pension management asset contribution to GDP. Despite growth, assets under management (AUM) account for just 7.3 percent of 2017 Nigeria GDP of $375.8 billion, running well behind many emerging markets. According to data released last week by the National Pension Commission, AUM of the regulated pension industry increased by 15.8% year-onyear in October to N8.45 trillion ($27.5bn). Growth in the AUM of the pension industry y/y may look inspiring, however, when compared to some African countries like South Africa, Nigeria still lags. According to report by FBNQuest, “The South African industry dates from 1996 and its AUM represent more than 70% of GDP. The industry in Nigeria is in need of several new products and innovative leadership.” BusinessDay analysis of the recently released PenCom data shows a total of 8.41 mil-

lion scheme memberships, implying an average portfolio of N1 million. This is a marginal decline by 1.69 percent from 8.27-million scheme membership in September 2018. Tajudeen Ibrahim, head of research, Chapel Hill, explains, “To drive AUM is to increase the compliance of those that are not yet compliant to the pension scheme. “Another major driver is to adopt a micro pension plan, which will capture more contributors, especially self-employed individuals and small businesses.” As revealed by report, Federal Government securities accounted for about 71.7 percent of total retirement savings account (RSA) fund under management with more concentration in FGN bonds and Treasury bills. Year-onyear industry holdings of FGN paper declined marginally by 0.4 percent from 72.1 percent accounted for in October 2017. A total of N4.34 trillion of total pension funds was invested in FGN bonds during the period. This was however a marginal increase compared to N4.33 trillion accounted for in the previous month. However, y/y the pension industry has recorded a growth in FGN bonds holding by 8 percent from N4.01 trillion.

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Nigerians must put pressure on Buhari to attend presidential debate ODINAKA ANUDU

here are many reasons to believe that President Muhammadu Buhari may not participate in Saturday’s debate for presidential candidates. Feelers from the ruling All Progressives Congress(APC) show that participating in the debate will be an option for Buhari, the party’s candidate, meaning that he may or may not attend the January 19 debate if he chooses. An APC stalwart dismissed the debate as inconsequential, saying there are other ways Buhari can communicate his plans to Nigerians. The battle has now shifted to Nigerians to prevail on the president to attend the debate for various reasons. In 2014/15, Buhari had avoided presidential debates as an opposition candidate of favouritismthe APC. Some faceless groups, like they did in 2015, are already popping up emotions, urging Buhari not to participate in this year’s debate. Whether it is out of fear of being dwarfed in the debate by other candidates or not, Nigerians must put pressure on all candidates, including Buhari, to come out and talk to them on what they wish to bring to the table if elected, or re-elected in case of Buhari. The debate, which is being organised by the Nigerian Elections Debate Group (NEDG) and the Broadcasting Organisations of Nigeria (BON), will have presidential candidates from five parties, including Allied Congress Party of Nigeria (ACPN), Alliance for New Nigeria (ANN), All Progressives Congress (APC), Peoples Democratic Party (PDP) and Young Progressives Party (YPP), participating. The vice presidential version was held on December 9, 2018. Buhari particularly, being the president, must be there to defend his economic management.strategy. According to the Brookings Institution, Nigeria is now the poverty capital of the world with a record 87 million people living in extreme

Muhammadu Buhari

poverty and 8,000 people sliding into extreme poverty on a daily basis. Nigeria is fourth on the Misery Index in the world. The population grows at 2.6 percent per annum, while GDP growth in the third quarter of 2018 was 1.81 percent, according to the National Bureau of Statistics (NBS). Inflation, which stood at 11.28 percent in November, has been doubledigit for more than one year. The economy slipped into recession under Buhari. Unemployment rate rose to 23.1 percent in the third quarter of 2018, from 18.8 percent in the second quarter. The NBS said that the country’s foreign debt at the end of the first half of 2018 (H1’18) was $22.08 billion, representing a 17 percent rise over the $18.9 billion recorded at the end of 2017.The country’s fortunes are also stymied by high domestic debt and extremely high-cost debt servicing. Nigerians deserve Buhari’s explanation on all these. The President also needs to tell Nigerians why Apapa that provides N3 billion to N7 billion every day for

Nigeria is left to totter. About 5,000 trucks seek access to Apapa and Tin Can ports in Lagos every day, according to a latest maritime report by the Lugo’s Chamber of Commerce and Industry (LCCI). These trucks have continued to plunder Apapa and Tin Can despite that access roads and the two ports were originally meant to accommodate only 1,500 trucks. Consequently, Nigeria loses N600 billion in customs revenue, $10 billion (N3.6trn) in non-oil export sector and N2.5 trillion in corporate earnings across various sectors on annual basis due to the poor state of Nigerian ports. The LCCI report notes that 25 percent of cashew nuts exported from Lagos to Vietnam in 2017 went bad or were downgraded owing to delays at Lagos ports. Similarly, only 10 percent of cargoes are cleared within the set timeline of 48 hours now while the majority of cargoes take between five and 14 days to clear. The report even notes that some cargoes take as many as 20 days to be cleared at

the ports. This means that executive orders on ease of doing business in the ports are violated. Babatunde Ruwase, president of LCCI, had recommended the finalisation of concessioning of Onitsha seaport, urging the government to improve the security situation along and within the Warri port in order to ward off militants and touts. Three and a half years after Buhari’s first term, these ports have remained the way they were in previous administrations. “It is our fault if Buhari refuses to attend the debate. If he does not speak to us, then he is either unfit to stand for a long time during the debate or he does not have the capacity to argue his points, which are both bad signs,” Kolawale Odunjo, a Lagos-based businessman, said. Buhari also needs to clear the air on the arraignment of Justice Walter Nkanu Onnoghen at a period when elections are less than five weeks away. Many have accused the president of being afraid of losing his case at the Supreme Court if he wins or loses in five weeks’. The opposition PDP thinks that Buhari and his party believe Onnoghen is their stumbling block at the apex court and therefore must be demobbed. Buhari needs to explain this saga at the debate. Nigeria has allocated only 2.9 percent of its total budget on health in the last three years, as against South Africa’s 13 to 15 percent over the same period, according to BusinessDay calculations. Consequently, everything in the health sector is getting worse. The WHO puts standard health budget allocations at 26 percent, especially for developing countries. Nigeria has demography of 198 million, which presents a market opportunity but also a health burden on the government. The country recorded 1,110 deaths from cholera in 2018 in 29 states across Nigeria between January and November. This was 84 times higher than 2017 cases. There were 611 confirmed cases of

Lassa fever last year. The 2017 was marred by outbreaks of diseases such Lassa fever, which occurred in 718 cases wherein 68 persons died. Between January and July 2018, there have been 115 deaths in confirmed cases and 10 in probable cases. Cerebrospinal meningitis was suspected in 14,518 cases, across 181 local government councils, with 1,166 people reported death. Other outbreaks of include monkey pox and cholera. Cancer is responsible for the deaths of 72,000 Nigerians yearly, according to Wellbeing Foundation Africa (WBFA)’s 2019 research. “The World Health Organisation has a standard benchmark that should be followed by developing countries with high rates of diseases. Compare that ratio with what we have in Nigeria and you will see why we still struggle with health issues,” Okey Akpa, chairman of Pharmaceutical Manufacturers Group of the Manufacturers Association of Nigeria (MAN), told BusinessDay on the phone. “This is a global benchmark that is a product of research,” Akpa added. President Muhammadu Buhari, on coming to power, had barred civil servants from seeking medical treatment abroad, promising to visit local hospitals himself. Ironically, he became the first to visit a London hospital when he fell sick. More so, Buhari needs to tell Nigerians his plan for the education sector in the face of Academic Staff Union of Universities (ASUU) strike and 10.5 million out of school children. He is also accused of favouritism, aiding corruption among the cabal and close associates, as well nepotism in appointments. “He has implemented his 97/5 percent (whatever that means in maths) philosophy in his three and half years. Let him dispute it,” Sunday Unah, an Enugu State-based public affairs analyst, said. These are allegations Buhari must defend or clear.

source for more funds to clear the areas. I believe strongly that Ortom is the best person placed right now among all the people that are looking for this job to protect the interest of Benue state, not just for the workers of the state, but he has shown that at all times, he is with Benue people and would continue to protect and defend them”, Gusa said. Enumerating the unbeatable records of the Governor, the Attorney General said that the state government under the leadership of Samuel Ortom have done a lot for

the ministry of Justice, renovation of the ministry and harmonisation of the staff pay with that of the judiciary as well as sponsoring lawyers among many others are achievements that the ministry will not forget in a hurry. Speaking on the security situation of the state, Gusa said that with the presence of Operation Whirstrock in the state have reduced the activities of the he Herders to a minimum, adding that the state is now calm for free and fair elections to be conducted.

Benue Attorney-General drums support for PDP BENJAMIN AGESAN, Makurdi

ttorney G eneral and commissioner for Justice, Benue state Michael Gusa has called on the people of the state to extend their Love and support to Governor Samuel Ortom and other candidates of People’s Democratic party (PDP) in the 2019 general election. Gusa made this call on Saturday while interacting with newsmen shortly after celebrating end of the year party with the staff of the

ministry of Justice at the ministry of Justice headquarters in Makurdi Benue State capital. He appreciated the staff and people of the state for their courage and unity of purpose and encouraged them to support Governor Samuel Ortom with all the candidates of the party from presidency down to the State Assembly level. Gusa assured civil servants of the state of tireless efforts by Governor Samuel Ortom to offset their salaries soon, emphasising that the trust they have in the governor can never

be abused when he is voted in for the second time. “The civil servants in Benue State should continue to trust Samuel Ortom to protect their interest like you know in 2018 January, he did promised that he will be paying salary as at when due and he has fulfilled that promise. As I speak with you, he has paid the salary for December 2018 and we are hoping and believing that by the end of Jan 2019 we will also pay salary. “We are aware of the areas and we are doing everything possible to

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Ortom fires back as Presidency cautions him against hate campaign BENJAMIN AGESAN, Makurdi

enue State Governor, Samuel Ortom has lambasted the presidency over what he described as hate campaign to deceive Benue people into re-electing him in this year’s governorship election. Governor Ortom, who spoke through his Special Adviser on media and ICT, Tahav Agerzua, said: “It is on record that Governor Ortom has never ever stated anywhere that President Buhari plans to Islamise the country. He prays daily for the President for God to grant him good health and wisdom and commends him for upgrading Exercise Ayem Akpatuma to Operation Whirl Stroke which has been able to reduce Fulani herdsmen attacks in Benue State to the barest minimum.” The media adviser stressed that it could be recalled that Governor Ortom was one of those who organised prayers and fasting for the President when he had protracted health challenges in 2017. The governor has consistently quoted officials of Miyetti Allah Kautal Hore who addressed a press conference in Abuja on Tuesday, 30th May, 2017 stating that they would mobilise their kith and kin across the world to resist the Open Grazing Prohibition and Ranches Establishment Law 2017 enacted by the Benue State Government. They stated that the crises in Benue State were a struggle for the natural resources of the Benue

Ortom

Valley. He explained that the governor, the State House of Assembly and various stakeholders wrote to the Presidency and the relevant security agencies complaining that the position of the Fulani socio-cultural group amounted to declaration of war on Benue State and that the leaders of the group should be arrested and prosecuted. “Nothing was done until the threat was carried out on New Year day, 2018. Benue State had to bury 73 victims of Fulani herdsmen attacks on Guma and Logo Local Government Areas,” he added. He emphasised that on 13th Jan-

uary, 2018, the Fulani Nationality Movement (FUNAM) met in Kano and issued a statement that what was happening in Benue State was a continuation of the 1804 Jihad when recalcitrant Benue indigenes stopped them in their quest to dip the Qur’an in the sea. They stated that they were currently equipped with weapons and political power to continue with the agenda. This was also reported to the Presidency and the security agencies but nothing was done. It must have been the guilty conscience arising from the failure to forestall these attacks and their enormous deadly consequences

Fireworks at Lagos guber debate as Agbaje, Sanwo-Olu, Babatunde, Salis show capacity Iniobong Iwok

our Lagos State gubernatorial candidates, Sunday, aired their varied views and presented their agenda on how to move the state forward if voted into power. The debate, which was organised by The Platform, featured four gubernatorial candidates- Babajide Sanwo-Olu of the ruling All Progressives Congress (APC); Jimi Agbaje of the People’s Democratic Party (PDP), Owolabi Salis of the Alliance for Democracy (AD) and Babatunde Gbadamosi of the Action Democratic party (ADP). The candidates spoke on a wide range of issues ranging from the traffic gridlocks in the Lagos metropolis to power, education sector and health. They, however, differed on the methods and strategy to take Lagos State to the next level, while agreeing that technology was crucial to the advancement of the state and its infrastructure. Candidate of the ADP, Babatunde

Gbadamosi, disclosed that the traffic nightmare that Lagosians have contended with for years can be solved by focusing on rail transport, use of barges and devolution of powers. “There are a number of ways to tackle this problem. The most obvious one is rail. Barges to lift containers from Wharf and take them to lighter terminals all around Lagos, and, thirdly, devolution of powers. It’s time we started this discussion about the devolution of power.” On his part, the PDP gubernatorial candidate, Agbaje, promised to empower the local government areas and develop the grassroots, which according to him was key in transforming the state. “We have to get the local governments working again because the grassroots play a great role in making state function optimally,” Agbaje said. Agbaje further stressed that planning was crucial if Lagos State must overcome its traffic gridlock problem. According to him, “The idea is to have even development across Lagos State so that you are having less of movement from one end of Lagos to

the other.” Sanwo-Olu on his part promised to tackle the problem of traffic gridlock if elected into office. The APC candidate vowed to make the gridlock in the Apapa axis of the state a thing of the past in less than four months. Sanwo-Olu further promised to revolutionise education in the state and provide infrastructure and manpower across hospitals in the state. Also speaking on the traffic congestion in the state, Owolabi Salis, candidate of the AD, said he would revive the rail transport which had been abandoned and effectively manage the resources of Lagos State. “If am elected governor, I will change the transport system in the state and the government is not paying enough attention to that sector,” Salis said. Sanwo-Olu promised to double the state’s health budget from its present 9 percent to 18-20 percent. He said he would focus on health insurance for all inhabitants of the states and his priority will be improving primary healthcare.

that may have promptly the Presidency to issue today’s mischievous statement. More so that in the aftermath of the attacks President Buhari did not offer any message of sympathy or condolence to the bereaved families and the people of the state. The best that came from him when major stakeholders from the state visited him in Abuja and after a long expected visit to the state was that Benue people should learn to live with and accommodate their neighbours. In all these, Governor Ortom does not hold the President responsible. The well-known cabal in his administration might be responsible for his ignorance of the real situation on ground. Top-notchers of his administration have blamed the Benue law for sparking the farmers, herders crises in Benue State without explaining what is responsible for the crises in other states including Zamfara, Adamawa, Plateau, Kaduna, Kogi, Ebonyi, Oyo, Ogun, and several others where there is no such law,” he questioned. Others say the blocking of grazing reserves and cattle routes is justification for the conquest and occupation agenda. The Presidency at a time issued a statement that it is better to give up land and be alive than hold to it and die. Meanwhile, the Presidency may also not be aware of the Miyetti Allah and it support agenda in Benue State which includes the perpetration of impunity with the connivance of the police and other security agencies.

This explains the constant transfers of Police Commissioners in Benue State as a search for those who will dance to the whims and caprices of APC leaders in the state. The Presidency has displayed gross ignorance on the salary situation in Benue State. Throughout 2018 salaries were paid consistently and up to date besides the fact that the Benue State University does not have any arrears of salaries. Benue State is owing salary arrears because it pays the highest salary in the country after Lagos and Rivers State and has been affected by the recession through which the entire country passed through especially from 2015 to 2017. Several other states including those being governed by the All Progressives Congress, APC, have greater salary payment challenges with affects majority of states. The Presidency has never come out openly to express support for the Open Grazing Prohibition and Ranches Establishment Law 2017. However, the implementation of this law and any other is the Constitutional responsibility of the Federal Government which has control of the security agencies. If it supports the ranching law it is its responsibility and not any favor. We urge all to disregard the statement from the Presidency and regard it as an expression of a guilty conscience that has arisen from failure to live up to its responsibility of protecting lives and property not just in Benue State but throughout the country.

Attack on Saraki: Kinsmen urge to remain calm SIKIRAT SHEHU, Ilorin

he Senate President, Bukola Saraki Sunday hurriedly returned to Ilorin from Erin-Ile in Oyun Local Government Area of Kwara State where he had gone to address a political rally, to sympathise with his family members, who were allegedly attacked by the thugs of factional All Progressives Congress (APC) governorship candidate in the state, AbdulRahman AbdulRasaq. Saraki, during his visit to Agbaji

Saraki

quarters, assessed level of damage done to property by the rampaging APC thugs. He, however, urged his people to remain calm and should not be provoked into retaliation or reprisal attacks. The Senate President, who trekked long distance to assess the level of destruction done to property, assured his people that their protection and safety is in the hands of God. Saraki added that the unfortunate incident had justified his earlier claim that there were threats to his life, his family and supporters. He thanked them for remaining steadfast in their support for the Saraki political dynasty and the People’s Democratic Party (PDP) where he is the national leader. The Senate President had driven straight to the General Hospital, Ilorin from Erin-Ile to sympathise with the victims of the attacks, who were lying critically ill. Saraki was accompanied on the visits by the Speaker of the State House of Assembly, Ali Ahmad and other PDP stalwarts in the state.

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Tuesday 15 January 2019

Coronation Research forecasts GDP growth rate of 2.25% in 2019 BALA AUGIE

oronation Research, part of Coronation Merchant Bank Group, in its summary of 2019 macroeconomic outlook, forecasts a 2.25 percent gross domestic product (GDP) growth for Nigeria in 2019, as Central Bank of Nigeria (CBN) continues to defend the naira. The research house does not expect an uptick in consumer spending in

Edo flags off road construction projects across LGAs

do State government has flagged off the construction of 3.2km road projects across Ikpoba-Okha and Oredo local government areas. The projects include a 1.5km road in Oghoghobi Community in Ikpoba-Okha LGA and 1.7km road project in Ogunwehi Community in Oredo LGA. At the flag-off of the projects, the state coordinator, State Employment and Expenditure for Result (SEEFOR), Toju Onaiwu, said the roads were among over 100 roads awarded for construction and reconstruction by Governor Godwin Obaseki across the 18 LGAs of the state. Onaiwu noted that the road projects in Oghoghobi and Ogunwehi communities include construction of drainages to control floodwater, which he said, would be completed in three months’ time. According to Onaiwu, the projects are being executed using the SEEFOR model and funded fully by the state government. He urged residents in the communities to continue to support the Governor Obaseki led-administration, so as to continue to reap more dividends of democracy. At Oghoghobi Community in Ikpoba-Okha, the Enogie, His Royal Highness, Kingsley Omorose, commended the state government for the road project. While at Ogunwehi Community, a community leader, Hon. Alexander Oseyi, commended Governor Obaseki for the project, and explained that it will provide access to the West African Examination Council (WAEC) Computer-Based Centre in the community. With the resumption of work after the holidays, contractors are mobilising their men and equipment to other sites across the state, where over 140 roads are being reconstructed.

the immediate future, as inflation has been hovering at a double digit since 2016, when a precipitous drop in the price of oil tipped the country in its first recession in 25 years. Nigerian economy is struggling to exceed 2.0 percent with third quarter GDP growth of 1.80 percent, as the country continues to grapple with uncertainty surrounding the forthcoming election, global geopolitical risk, and rate hike by the United States Federal Reserve that forced investors to

dump naira assets. Underscoring the above lethargy in the stock market sells off, which started since the first quarter of last year - as the Nigeria Stock Exchange All Share Index closed at -4.66 percent as of 2pm Monday. Coronation Research forecasts an average crude oil price at $58.00/bbl for 2019, adding that an average much below this means the CBN will have to keep rates very high and could even challenge the naira/US dollar ex-

change argument. “If, as we think, the oil prices will average $58.00/ bbl this year, then we think the CBN will want to keep interest rates high. It will do this through its open market operations (OMO),” said Guy Czatoryski, head of research. “We think OMOs will be issued in a range of 17.00% to 19.00% and that T-bill rates will be very close to this level during 2019. We are not going to see a situation like 2016 when oil price was at alltime low,’’ said Czatoryski.

Brent crude was little changed at $59.70 a barrel as of Monday; this compares with an all-time high of $86 a barrel as at October 2018. There are positive prognosis that the aggressive output cut embarked upon by Organisation of Petroleum Exporting Countries (OPEC) and its allies OPEC+ will stabilise the international market to fend off supply glut brought on by shale oil producers. Coronation Research, in its 2019 summary of

macroeconomic outlook, sees Treasury bill (T-bills) rates drop after the 2019 elections as it did immediately after 2011 and 2015 general elections. “We look at Nigeria in the international context of interest rates. Nigerian T-bill rates look competitive in the context of other emerging market rates – which is why the CBN is having success in attracting inflows of Foreign Portfolio Investment,” said analysts at Coronation Merchant Bank Research.

Tuesday 15 January 2019

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EU letter seeks to reassure UK on Irish border backstop

Theresa May warns rejection of her divorce deal risks no Brexit Mehreen Khan, Alex Barker and Laura Hughes

he EU has promised British MPs that the use of a contentious backstop plan for Northern Ireland will be “as short as possible”, in an exchange of letters aimed at bolstering Prime Minister Theresa May ahead of a historic House of Commons vote on her Brexit deal. The three-page letter from Jean-Claude Juncker, the president of the European Commission, and D onald Tusk, European Council president, includes no significant revisions or additions to the terms of Britain’s Brexit package. But the two leaders stress that they expect any use of the Irish backstop, which many Brexiters say would “trap” the UK in a customs arrangement with the EU, would be “temporary” and replaced “as quickly as possible”. While Mr Juncker and Mr Tusk’s assurances could help Mrs May remind MPs of the main elements of her deal, they fall short of UK requests to insert a new target date for both sides to make efforts to ensure that the backstop would only be used for a year, if it had to be triggered at all. The letter came as Mrs May warned Eurosceptic MPs that rejecting the package risked “paralysis” in parliament and “no Brexit”. Mrs May said she believed parliament blocking Brexit was now a more likely outcome than the UK leaving without a deal.

“It’s now my judgment that a more likely outcome is a paralysis in parliament that risks no Brexit,” she said during a visit to Stokeon-Trent, a heavily Leave-voting Midlands city. “There are some in Westminster who would wish to delay or even stop Brexit and who will use every device available to them to do so.” Mrs May hopes to keep the scale of the defeat to a margin of less than 100 in Tuesday evening’s vote, but some Conservative MPs forecast Mrs May could lose by more than 200. The pro-EU Commons indicated last week that it would block a no-deal Brexit. It voted to limit the government’s tax-raising powers in the event of no deal and passed an amendment requiring Mrs May to present a Plan B within three working days if her deal is defeated. Mr Juncker and Mr Tusk stressed in their letter that they were “not in a position to agree to anything that changes or is inconsistent with the withdrawal agreement” — the 585-page treaty outlining the terms of Britain’s departure, including the backstop plan to avoid a hard border on the island of Ireland. Mr Juncker had supported giving more generous assurances on the backstop, which would seek to avoid a hard border in Ireland by keeping Britain in a customs union with the EU and tying Northern Ireland even more closely to EU rules. But Mr Tusk and some member

Mozambique’s ruling party closes ranks over ‘tuna bond’ scandal Frelimo largely silent since indictment of ex-finance minister in $2bn hidden loans saga Joseph Cotterill

ozambique’s ruling party has closed ranks since US officials indicted the southern African nation’s former finance minister and former Credit Suisse bankers over a $2bn hidden loans and bribery scandal. Under President Filipe Nyusi, the Frelimo party has been largely silent since Manuel Chang was detained and sought for US extradition over one of Africa’s biggest corruption cases. An indictment this month accused Mr Chang, a sitting Frelimo MP, of approving a scheme for government officials to siphon at least $200m from a series of international borrowings by front companies, including a tuna fishing company, which took advantage of investor enthusiasm for vast offshore gas finds. But it is unlikely that Mr Nyusi will follow the examples of Malaysia, which is trying to claw back billions of dollars from its 1MDB scandal, or Angola, whose president has unexpectedly pursued the former ruling family over allegations of corruption. “I don’t see him cleaning the sys-

tem like the Malaysians or the Angolans, but rather a survival strategy,” said Adriano Nuvunga, head of ADS, a Mozambican civil society group. “Here we are discussing the survival of Frelimo as a political party and as a government. You have to take that into account.” Analysts and activists see Frelimo, which has governed Mozambique since its independence in 1975, as more likely to maintain an omerta-like system of loyalty and patronage than to punish its own ahead of polls this year. Under pressure over its inaction compared with the US, last week Mozambique’s public prosecutor named individuals it was investigating over the debts. But the list shows why it might not ask too many tough questions. The names include a former central bank governor, intelligence chiefs and civil servants who served under Armando Guebuza, president when the hidden debts were issued. He remains a powerbroker overshadowing Mr Nyusi. Only financial penalties are being sought, as opposed to criminal Continues on page 46

Theresa May during a speech on Monday at the Portmeirion pottery factory in Stoke-on-Trent, a heavily Leave-voting Midlands city © PA

states argued for a more conservative approach that stuck closely to the language in the Brexit package. The letter repeats previous assurances from the EU to work on concluding a UK-EU free trade deal, which Mr Juncker said “might” mean the backstop is either never triggered or replaced. In a letter of her own to the EU institutions, Mrs May had noted some MPs’ fear that Brussels will not handle trade negotiations “energetically or ambitiously” or “down tools altogether and leave the UK permanently in the backstop arrangement”. In response, Mr Juncker confirmed the commission saw the

backstop as “a suboptimal trading relationship for both sides” that it “does not wish” to see enforced. In a nod to the technological border solutions preferred by some Brexiters, the letter says that “facilitative arrangements and technologies will be considered” as alternatives to the backstop. The withdrawal agreement already includes a clause that promises both sides’ “best endeavours” to agree a future relationship before the end of Britain’s transition period at the end of 2020. Should this target be missed and the backstop come into force, Mr Juncker promises that the commission, which leads negotia-

tions for the EU, will “redouble its efforts” with the aim “of concluding a subsequent agreement very rapidly”. “The commission is committed to providing the necessary political impetus and resources to help achieving the objective of making this period as short as possible,” the commission president adds. Mr Tusk, who represents the European Council of EU leaders, takes a more cautious approach on the pace and nature of future trade negotiations, repeating the conclusions of a December summit that called for the backstop to be only used for as long as “strictly necessary”.

China exports fall most in 2 years as slowdown and trade war bite Trade surplus with US hits record as importers step up purchases before tariff deadline Hudson Lockett, Tom Hancock and Tom Mitchell

hina reported a sharp drop in exports for December, sending stock markets across Asia lower, as a global slowdown and a punishing trade war with the US hit the world’s second-largest economy. The 4.4 per cent fall in December exports came as China reported an annual trade surplus with the US of $323bn, the highest since at least 2006, according to Reuters data, as exporters rushed to ship orders ahead of a threat of rising tariffs. A 7.6 per cent monthly import decline in December underlined how growth was slowing in China, because of weakening investment and consumption following Beijing’s drive to reduce debt in the economy. Car sales in China, the world’s largest car market, also declined last year for the first time since 1990, official figures showed on Monday, adding to fears that consumers are reducing spending. A growing bilateral surplus complicates trade negotiations between Beijing and Washington, with the US pushing China to commit to large purchases of American agricultural and energy commodities in order to

reduce the gap. President Xi Jinping’s administration has signalled its willingness to do so in order to reach a possible trade truce by March 1 but a deal could still falter over US demands for wide-ranging structural changes to China’s economy. The December trade contraction confounded expectations, hitting Asian markets. Companies listed on Hong Kong’s Hang Seng index closed down 1.38 per cent on Monday, while shares listed in Shanghai and Shenzhen fell 0.87 per cent. The offshore renminbi was also weaker by 0.10 per cent in late afternoon, at Rmb6.7665 against the US dollar. China’s overall trade figures for last year were relatively robust, with exports up 10 per cent over 2017 and imports up almost 16 per cent year on year. In a sign of belated impact from the trade war, monthly exports to the US fell 3.5 per cent in December, while imports of US goods plummeted 36 per cent as China largely stopped buying American soyabeans and other commodities. Analysts said slower global growth was to blame for the sluggish

December trade figures. Exports to other markets, including Japan and the EU, also shrunk while shipments to Hong Kong, a centre for re-exports of Chinese goods, fell 26 per cent. “[US] tariffs can’t take all of the blame,” said Julian Evans-Pritchard, senior China economist at Capital Economics. “Exports to the rest of the world also slowed, with surveys pointing to weaker global demand at the end of 2018.” Japan and Germany, two of China’s biggest export markets, reported third-quarter economic contractions. Weakening global demand for electronic products “poses the real risk to China’s external outlook even if China and the US reach a resolution on their trade dispute”, said Raymond Yeung, an economist at Australian Bank ANZ. Chinese officials are scheduled to announce their estimate for fullyear economic growth on January 21, which is expected to show that the economy met or exceeded the government’s full-year growth target of 6.5 per cent. Next year’s target, according to people briefed by economic policymakers in Beijing, is expected to be a more flexible range set between 6 per cent and 6.5 per cent.

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FT Mozambique’s ruling party closes ranks over ...

Congo’s constitutional court should reject the country’s fraudulent election

Continued from page 45

charges. Mozambique is opposing Mr Chang’s extradition in favour of trying him at home — something few believe Frelimo would actually allow. The origins of the scandal point to the opportunities for corruption that were created when a poor country discovered gas in 2009. Just two years later one of the world’s largest shipbuilders, Abu Dhabi-based Privinvest, pitched officials an ambitious project to secure the country’s shores. The plan would eventually span coastal radar and patrol vessels, as well as tuna boats. Mozambique has one of Africa’s longest coastlines — and plentiful tuna. But it also has security forces that are politicised, opaque, and welded to Frelimo patronage by the legacy of the country’s long post-independence civil conflict. The US indictment describes an unnamed official telling Jean Boustani, an agent of Privinvest: “There will be other players whose interest will have to be looked after eg ministry of defence, ministry of interior, air force, etc . . . In democratic countries like ours people come and go, and everyone will want to have his/ her share of the deal while in office, because once out of the office it will be difficult.” Mr Boustani arranged bribes worth $50m for officials, according to the indictment. They were allegedly clumsily concealed as 50m “chickens”. Even this sum was only part of the kickbacks and bribes that were eventually laundered with the help of the Credit Suisse bankers, according to US prosecutors. The $200m is probably an understatement of the level of looting. A forensic report by the risk consultancy Kroll in 2017 could not account for where $500m of the amount raised by the loans had gone. The tuna boats have lain rusting in a harbour in Maputo, the capital, for years. Privinvest has denied overpayment, and is examining the allegations made by the US, its spokesperson said. Mr Boustani denies wrongdoing, his lawyer told a US judge. There has been speculation in Mozambique that Mr Nyusi, a defence minister under Mr Guebuza, must have known of the looting. “There is no way that he can distinguish himself vis-à-vis the people implicated,” Mr Nuvunga said. Mr Nyusi denies wrongdoing. At stake is repairing the economic damage left by the hidden loans. The IMF, a major funder, cut ties when the debt’s full extent was uncovered in 2016. It set off a financial crisis. The debts went into default. The government has made progress on a restructuring programme, seen as crucial to unlocking financing for gas development where international majors such as Exxon and Anadarko are investors. But the US case has revived uncertainty. “No one hinted that this would be a scenario,” said Alex Vines, Africa director at Chatham House. “It’s too soon to say whether this strengthens or weakens the president. Potentially it would strengthen him, but the politics are unpredictable.” While Frelimo is likely to back Mr Nyusi to run again in this year’s poll, analysts say Mr Guebuza retains the loyalty of many of its members in parliament, which ruled the hidden debts were legal in 2017. Outsiders may also have an interest in avoiding a divided Frelimo.

Tuesday 15 January 2019

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But in its messy way, the vote represents a move towards democracy

E Motorists queue for fuel in Harare. Zimbabwe’s currency crisis has led to fuel shortages across the country © Philimon Bulawayo/Reuters

Zimbabwe doubles fuel price as currency crisis hits supplies Cost rises to $3 a litre in an attempt to cut lengthy petrol station queues Joseph Cotterill

imbabwe has become one of the world’s most expensive places to buy gasoline after President Emmerson Mnangagwa announced that fuel prices would double overnight, highlighting a currency crisis that has caused widespread shortages and lengthy queues at petrol stations across the southern African nation. In a televised statement on Saturday, Mr Mnangagwa said petrol and diesel prices would rise to more than $3 a litre in an attempt to contain the queues. The long lines of frustrated motorists illustrate the growing severity of a shortage of US dollars to pay for essential imports. The crisis has undermined the former security chief’s pledge to make the country “open for business” after he replaced Robert Mugabe in a 2017 military coup. Mr Mnangagwa said the shortages were “attributable to increased fuel usage in the growing economy and compounded by rampant illegal currency and fuel trading activities” and were “unsustainable”. The steep price increase would shore up retailers and show “such politically motivated activities will not be tolerated”, he said. Mr Mnangagwa’s move also comes as figures in the ruling Zanu-PF have alleged that a politically connected fuel

cartel has captured state institutions and is profiting from the crisis. They have also blamed the alleged cartel for signs of infighting between Mr Mnangagwa and his deputy Constantino Chiwenga. The two men have denied any rift, and a spokesperson for Mr Mnangagwa has denied there is any conspiracy connected to fuel. The country pays about $100m a month for fuel imports. US dollars have been the main currency in Zimbabwe since hyperinflation in 2008 destroyed the Zimbabwean dollar. The root cause of the currency crisis is runaway government spending financed by issuing electronic US dollars, such as debt sold to banks, without physical backing, according to economists and investors. Rising circulation of these surrogate dollars, including so-called “bond notes” issued in 2016, has led to hoarding of actual banknotes. A decline in the black-market value of surrogates against the US dollar has accelerated in recent months, making a mockery of official insistence that they are worth the same and leading to surging prices for basic goods. In recent weeks, doctors and teachers have protested in the capital against their salaries being paid in the electronic dollars, while businesses have shut down without foreign currency to finance operations. Zimbabwe’s trade union congress

called Saturday’s fuel price rise “insensitive and provocative” and urged people across the country to stay away from work in protest. In a sign that companies are increasingly abandoning the surrogate dollars, Delta, a brewer that is one of Zimbabwe’s largest companies, recently said it would peg wholesale prices to hard US dollars. It backtracked following promises by the government to supply foreign currency. Despite Mr Mnangagwa’s promises of reforms after decades of misrule by Mr Mugabe, the prospect of international financial aid to resolve the cash crisis has receded. Hopes for a rapid reopening of the economy after the Mugabe era were dashed and Zimbabwe was largely returned to isolation from the west following last year’s election, which Mr Mnangagwa won but which was marred by violence from security forces and claims of vote-rigging. In December an inquiry confirmed that soldiers shot six civilians dead during opposition protests around July’s poll. Although Mr Mnangagwa has called for an investigation, few believe he will antagonise the army that originally brought him to power. Later this month Mr Mnangagwa will visit Russia, Belarus and central Asian states, and attend the World Economic Forum at Davos, but will not visit other western countries.

Trump warns he will ‘devastate Turkey’ economically if Kurds harmed Ankara hits back by insisting US allies in Syria are ‘terrorists’ not ‘partners’ James Politi and Laura Pitel

onald Trump warned he would inflict economic devastation on Turkey if it were to attack US-backed Kurdish forces in Syria, as he seeks to limit the damage from his decision to withdraw remaining troops from war-torn Middle Eastern nation. In a pair of tweets on Sunday night, the US president said he was beginning the “long overdue” pullout from Syria but would continue to target the remnants of Isis in the region. He then added: “Will devastate Turkey economically if they hit Kurds”. His remarks triggered an angry response from Turkey. Ibrahim Kalin, a spokesman for president Recep Tayyip Erdogan, said it was a “fatal mistake” to equate Syrian Kurds with the YPG, an armed group that has played a central role in the US-led campaign against Isis jihadis but is considered a terrorist group by Turkey. Addressing the US president, Mr Kalin added in a post on Twitter: “Terrorists can’t be your partners & allies. Turkey expects the US to honor our strategic partnership and doesn’t want it to be shadowed by terrorist

propaganda.” Last month, Mr Trump stunned senior administration officials when he announced the withdrawal of about 2,000 US troops from northern Syria. The move upended Washington’s stated aims in the region, and drew warnings that it would leave Kurdish forces isolated and abandoned even after they had taken a leading role in the campaign to eradicate Isis. Ankara has always been furious about US support for the YPG, which has close links to a Kurdish militia that has been fighting an armed insurgency against the Turkish state for more than 30 years. Mr Erdogan, who has ordered two military incursions into Syria in recent years, has long vowed to launch an incursion into Kurdish-controlled areas to the east of the Euphrates river. The sudden withdrawal of US troops appeared to clear the way for an offensive. Yet accusations by Syrian Kurdish forces of betrayal by Washington, and fears that the US withdrawal will strengthen Syrian president Bashar alAssad and his backers Russia and Iran, have prompted a rearguard attempt to

protect US interests in the region. John Bolton, the White House national security adviser, travelled to Turkey last week to ask Turkey to promise not to attack Kurdish groups in Syria. But he was snubbed by Mr Erdogan, leaving plans for the US withdrawal in disarray. Mr Trump’s tweets reflect growing disagreements between the two Nato allies over the pullout, but also hinted at one area of possible agreement. Mr Trump said that he wanted to see the creation of a 20-mile safe zone, without elaborating further. Some analysts believe that Turkey would support the idea of forming a buffer zone that protected its border while limiting the scale of the military operation required. Escalating tensions between the two Nato allies risk upsetting fragile investor sentiment towards Turkey. The country suffered a severe currency crisis last year after Mr Trump imposed sanctions on Ankara in a bid to force the release of a jailed American pastor. The lira lost close to a third of its value last year, piling pressure on the country’s indebted corporate sector and triggering a sharp slowdown in growth.

lections are now common in Africa. In a continent once dominated by coups, all but a handful of countries’ voters have regular recourse to the ballot box. Though contests are rarely flawless, in many countries the will of the people prevails. In a second set of countries, dominated by ageing despots or a single party, voters are given an illusion of choice. The system is rigged and, if necessary, votes flagrantly miscounted. Presidential elections in the Democratic Republic of Congo have taken a slightly different turn. To many people’s surprise, the electoral commission on Thursday announced victory for Felix Tshisekedi, an opposition candidate, promising the first transfer of power via the ballot box since the vast central African country’s independence in 1960. There was one hitch : Mr Tshisekedi did not get the most votes. The probable true winner, according to a credible parallel tabulation, was Martin Fayulu, a former ExxonMobil executive considered threatening to the interests of Joseph Kabila, the incumbent who took power 17 years ago. In what smacks of outright fraud, the electoral commission pronounced Mr Tshisekedi the winner amid well-founded rumours of a backroom deal between him and the president. In its messy, contradictory way, Congo is lurching towards a kind of democracy. Mr Kabila may be congratulating himself on his crafty plan. But he has not been able to have things his own way. Time and again, through sheer force of will, the Congolese people have thwarted his plans. Having amassed a huge fortune through control of the country’s massive mineral resources, Mr Kabila’s preferred option had been to remain as president. But waves of street protests from 2016 forced him to stand down and accept an election, albeit two years after the constitution dictated. Mr Kabila’s administration then pulled out all the stops to ensure victory for a proxy, Emmanuel Shadary. It hampered the opposition from campaigning, disenfranchised parts of the country and installed easy-to-manipulate electronic voting machines. Despite such ruses, voters turned out in their millions to reject Mr Kabila’s choice. That left the president grasping for a third — and once unthinkable — stratagem, of conferring victory on opposition leader Mr Tshisekedi. Mr Fayulu is now challenging the result in the constitutional court. It would be a miracle if that body, stacked with Mr Kabila’s appointees, overturned the result. But miracles have happened before. In Kenya in 2017, the supreme court stunned the continent by annulling a problematic election. Congo’s constitutional court could do the same. It must demand that the electoral commission present a detailed breakdown of results. If it cannot, the court should order a recount or a rerun.

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Citi’s quarterly revenue falls to two-year low Drop in fixed-income sales and trading earnings take their toll on US bank Laura Noonan

itigroup’s revenue fell to a twoyear low in the final quarter of last year, as a sharp drop in fixed-income sales and trading earnings took a heavy toll on one of America’s biggest global banks. Kicking off the US banks earnings season, Citi reported revenues of $17.124bn for the fourth quarter of 2018, worse than the $17.582bn expected by analysts and marginally below its fourth-quarter revenue in 2017. The bank improved earnings even as revenues fell, thanks to a slight fall in expenses and a lower effective tax rate. A lower share count — after the bank bought back more than 200m shares last year — also helped boost earnings per share (EPS), which came in at $1.61 on an underlying basis, excluding a one-off tax gain. Analysts had predicted EPS of $1.55. Citi earned $1.28 per share in the fourth quarter of 2017, excluding a $23bn one-off tax hit. “We made solid progress throughout 2018 towards our longer-term financial targets,” chief executive Michael Corbat said, adding that while a “volatile fourth quarter impacted some of our market sensitive businesses, particularly fixed income”, other areas had done well. The bank had braced investors for bad news, with chief financial officer John Gerspach warning in early December that Citi would miss its efficiency targets because volatile markets were hurting its sales and trading businesses. The quarter’s sales and trading revenues fell 16 per cent year-on-

year, including a 21 per cent fall in fixed income revenues, including a loss on an Asian hedge fund trade reportedly around $180m, but which was not broken out in the results. Citi’s efficiency ratio, which expresses costs as a percentage of revenues, improved by 86 basis points to 57.4 per cent for the full year. Citi was on track for a 100 basis point improvement before the fourth-quarter markets meltdown. Expenses in the fourth quarter were down 4 per cent year-on-year. Beyond sales and trading, the rest of Citi’s corporate and investment bank had a mixed performance. Revenues from dealmaking rose, but the bank made less from advising clients on the sale of debt and equities. Citi’s massive consumer bank narrowly boosted its net interest margin — the gap between what it pays for funding and charges for lending — from 2.70 per cent in the third quarter to 2.71 per cent in the final quarter of the year. The quarter’s credit costs fell 7 per cent year on year, suggesting that borrowing remains robust despite fears of a recession. On a full-year basis, Citi’s return on tangible equity was 10.9 per cent, beating its target of 10.5 per cent. Shares of all the big Wall Street banks have been hammered in recent months, as investors fret about the impact of chaotic markets, trade wars, a possible recession and slower interest rate increases from the Federal Reserve. JPMorgan Chase and Wells Fargo are both due to report earnings tomorrow, followed by Bank of America, Goldman Sachs and Morgan Stanley later in the week.

Stocks knocked after weak data stokes global slowdown fears Caution prevails after China export and eurozone industrial production figures miss Michael Hunter and Alice Woodhouse

all Street stocks slipped, tracking losses for equities in Europe and China after a run of weak economic stoked fears about a global slowdown, leaving indices vulnerable after last week’s rebound. Trade figures from China showed exports posting the largest monthly fall in two years, while industrial production numbers from the eurozone missed forecasts. US earnings season got off to a lacklustre start after Citigroup posted an unexpected decline in quarterly revenue. The bank’s shares slipped 0.7 per cent in pre-market trade. Wall Street’s S&P 500 fell 1 per cent overall in opening trade, after a slight fall on Friday left its gain for the week at 2.5 per cent. European indices extended declines as the session developed, hitting their lows for the day after the numbers. London’s FTSE 100 was down 1 per cent and Frankfurt’s Xetra Dax 30 fell 0.9 per cent. Haven assets were in demand, with investors buying into gold, the yen and government bonds, while oil prices fell. Asian equities indices extended early losses after China said exports in December fell 4.4 per cent year on year, the largest since the end of 2016 and lower than estimates. Annual

export growth was 9.9 per cent year on year in dollar terms. Germany led a sharp fall in eurozone industrial production, with figures for the currency area for November missing forecasts. Global trade has been in particular focus in recent months as the US and China have introduced tit-for-tat tariffs on imports and also met for talks, fostering hopes for an improvement in relations. Mainland China’s CSI 300 companies closed down 0.9 per cent, fading from a three-week high reached on Friday which came on hopes for a breakthrough around the talks. In Hong Kong, the Hang Seng index fell 1.6 per cent. Julian Evans-Pritchard, senior China economist for Capital Economics, said: “With global growth set to cool further this year, exports will remain weak even if China can clinch a trade deal that rows back Trump’s tariffs.” Nonetheless, the onshore renminbi held around its strongest since late July, flat at Rmb6.7572 to the dollar. It had its strongest week in more than a decade last week, climbing 1.6 per cent as emerging market currencies rose against the dollar. The currency is permitted to trade 2 per cent either side of a daily midpoint set by the People’s Bank of China. The offshore renminbi was also 0.1 per cent weaker at Rmb6.7648.

Turkish lira stumbles anew with Syria and central bank in focus Deterioration in relations with US and policy concerns have knocked the currency Adam Samson

he new year has not been kind to Turkey’s currency. The lira sustained a fresh blow on Monday, deepening its decline after Donald Trump warned the US would inflict economic “devastation” if the country attacks Kurdish militia in Syria.In midday London dealings, the lira dropped roughly 1 per cent against the US dollar to TL5.51, bringing the year to date fall to 4 per cent. Losses were worse against the Japanese yen, dropping 1.4 per cent on Monday and 5.3 per cent on the year. Some of the factors that sparked acute turbulence last year and sent the currency diving to a historic low have bled into 2019, according to analysts and investors. Turkey’s relationship with the US has become a focus again, following a spat last year over a detained American pastor that was ultimately resolved. The Trump administration decided in December to pull troops from Syria after the president claimed defeat over the terror group Isis. With American troops exiting,

it has left Kurdish militia that have fought along with US soldiers potentially isolated. Turkish President Recep Tayyip Erdogan has vowed to launch an offensive against a part of the group that the country considers to be a terrorist organisation. Mr Trump late on Sunday warned that, if his Turkish counterpart were to make good on his promise, it would “devastate Turkey economically”. The remarks come during a time when Turkey’s economy is thought to be sputtering, as the central bank tries to stamp-out inflation that is running over 20 per cent. Piotr Matys, emerging market currencies strategist at Rabobank, said that “the market is concerned that the relationship between the US and Turkey could worsen again as was the case last summer over the US pastor [Andrew] Brunson when the lira plunged to a record low”. Mr Matys said the lira’s fall this year against the yen was a particularly strong barometer of the still-fragile market sentiment towards the lira.

Investors are bracing themselves for a central bank interest rate decision, due on Wednesday. Out of 21 economists polled by Reuters, 19 forecast no change in rates. The other two are looking for a cut. Polic ymakers sharply increased rates last year in an attempt to stabilise the lira and ease inflation. While there are signs that the move has been successful, it has come with the side effect of sharply slowing activity. Taken together with Mr Erdogan’s objection to high interest rates, some observers are concerned the central bank may cut rates too soon — another headwind for the lira. “Although markets have increasingly [tilted] towards a possible earlier easing from the central bank, given the deceleration in headline inflation, we believe that the [central bank] will remain cautious and keep rates on hold as it reasserts its credibility,” Barclays analysts said. “A cut already at this week’s meeting would catch the market by surprise and lead to significant lira depreciation, in our view.”

HSBC banks on blockchain to finesse forex trades Project suggests a future for crypto tech despite crash in tokens market Eva Szalay and Katie Martin

SBC is leaning more heavily on blockchain-based tools to handle the fiddly processes behind foreignexchange trades, suggesting banks are finding solid applications for a technology used in cryptocurrencies, which have been under pressure since valuations tumbled last year. The London-headquartered bank, a heavy-hitter in forex dealing, has processed more than 3m FX transactions worth $250bn using blockchain technology in the past year, it said on Monday. That represents a tiny sliver of its overall currencies business, but still offers a rare example of a blockchainbased product that has proven its worth in wholesale finance. Settlement provider CLS — an industry utility that ensures each side of currencies trades gets paid — launched a so-called

distributed-ledger technology platform in November last year with Goldman Sachs and Morgan Stanley. But after an initial flurry of hype surrounding the potential for the technology, most DLT-focused start-ups have yet to come up with a product, stymied by concerns over speed and security. Still, a number of projects are in testing mode. DTCC, a post-trade market infrastructure provider, moved its DLT project aimed at credit derivatives reporting to a trial phase in November last year. In the same month Spanish bank BBVA and two partners completed a syndicated loan on blockchain technology. The HSBC project, known as “FX Everywhere”, has been used to co-ordinate payments across HSBC’s internal balance sheets using a shared ledger for a year. During that period it has handled more than 150,000 payments — netted down from 3m transactions

— automating previously manual processes and reducing the bank’s reliance on external technology providers. “HSBC . . . conduct[s] thousands of foreign exchange transactions within the bank, across multiple balance sheets, in dozens of countries,” said Richard Bibbey, acting global head of currencies at HSBC. “FX Everywhere uses distributed ledger technology to drastically increase the efficiency of these internal flows.” Multiple executives at the bank can simultaneously use the system to view trades from execution to settlement, reducing the risks of discrepancy and delay, the bank said. The platform has reduced HSBC’s spending with CLS, the bank added. HSBC now plans to make its platform available to clients, particularly companies that manage a number of treasury centres and cross-border payments.

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Tuesday 15 January 2019

ANALYSIS Sergio Moro takes his crusade inside Brazil’s halls of power Judge’s decision to join Bolsonaro’s government has led to accusations of conflict of interest Andres Schipani

I Wells Fargo: repairing a damaged brand Can the bank once seen as the best-managed in America recover its premium valuation after a series of scandals? Robert Armstrong and Laura Noonan

im Sloan thinks that Wells Fargo is “the best bank in the world”. After more than two years as chief executive of the scandal-riven lender, he is quick to provide evidence — deposit growth, loan growth, returns — to show that while the bank has been wounded by controversy, it is now returning to its feet. The view from outside the group, however, is very different. In interviews with the Financial Times, dozens of investors, academics, competitors and employees describe a damaged brand, a workforce held back by fear of repeating past mistakes, and the immense difficulty of drawing a line under one of the ugliest banking scandals in an era full of them. A cut-throat sales culture in the retail division, where perverse incentives led employees to open millions of false accounts and missell other products, was ignored or brushed aside by the board and senior management until the story went public in 2016. Wells’ first response when the problems emerged was mass firings of lower-level employees. More than 5,000 were forced out. Only after this bad-apple theory failed to convince regulators, politicians or the public was there a board overhaul, the replacement of most senior leaders and an effort to rewire the bank’s culture. Other instances of bad behaviour continue to come to light at Wells and the bank remains under tighter regulatory scrutiny than any other US lender in recent memory. Prominent politicians have said Mr Sloan, who led Wells’ wholesale banking operation while the misselling was taking place, is not fit to lead the bank. Mr Sloan takes all this in his stride, consistent with what a colleague calls his “unflappable, down to earth, Midwestern” style. “When any politician is running for office that they’re trying to win, and when they do that they will either mention us or not mention us to the extent that it’s beneficial to their election,” he says. “We understand that. That’s their business.” His composure is drawn, in part, from the bank’s performance, which has been remarkably steady, given the enormity of the scandal. The bank’s valuation, while no longer at a premium, is on par with other big American banks and some early signs of growth are visible. But Wells considers itself more than just another bank: it was on top of the industry in returns, valuation and reputation. The question is whether it can reach those heights again. And there, Mr Sloan faces a very sceptical audience. “With these types of stories . . . the

companies never get their premiums back”, says Dave Ellison, portfolio manager of the Hennessy Large Cap Financial Fund and an investor in financials for 30 years. “People have other places to go. Now Wells is just another big me-too bank.” Chart showing Well Fargo’s loan book is starting to grow after a sharp slump Perry Pelos, Wells’ head of wholesale banking, describes “the old Wells Fargo” as “a company that prided itself on decentralised decision-making. That’s good for certain things, but it’s not good for other things. The problem is we did that for everything.” The description may understate some of the problems the bank has faced. An entrepreneurial culture, in which business units and managers were left to take decisions and pursue growth in response to local conditions, extended to controls and compliance. A strong culture of credit risk management was matched by precious little culture of operational risk management. The scandal raised an unsettling question: what if the management structure responsible for Wells’ past success was ultimately unsustainable? By reputation, the bank had been better at assessing credit risk and had a stronger deposit-taking franchise than any other lender. It was one of the “big four” holdings at Berkshire Hathaway (along with American Express, Coca-Cola and IBM) and Warren Buffett had praised its “brilliant”, “outstanding” management. This reputation was reflected in the stock valuation. In early 2016, Wells’ shares traded at two times their tangible book value, while Bank of America and JPMorgan traded between one and one and a half times. Now Wells has traded down to Bank Of America’s level, and JPMorgan has risen to become the only big US bank to trade at twice its tangible book value. Gerard Cassidy, a banks analyst at RBC, thinks that Wells’ radically decentralised structure, which led to the scandal, was also one of the reasons for the history of strong financial results. “I don’t see the premium valuation coming back because of the way they do business now. They have put in processes that are an obstacle to that premium profitability . . . underwriting decisions were not centralised, a unique system that helped generate the extra returns.” As Wells works to come in line with industry standards for controls and compliance, one employee describes a “sense that we’re stagnating”. “No real leaders have emerged to pull us out of wallowing in internal consensus-seeking. They sit on every problem and give us the same pep rally happy talk,” the employee says. Rivals say the bank, chastened by its past mistakes, has become scared of its own shadow.

Even Mary Mack, who runs Wells’ massive consumer bank, says staff are “still more cautious than you’d want them to be”. Those closer to Wells, including 10 senior executives who spoke with the FT, argue that the bank’s core strengths in credit creation and deposit-taking remain. Mr Sloan points out that primary checking accounts — a key yardstick for what retail customers think of the bank — are increasing at a rate of nearly 2 per cent, recovering from zero growth immediately after the scandal broke, but still less than the 5 per cent in the two years before it. When Wells reports fourth-quarter earnings this week, investors will hope to see the momentum continue. While loan growth hovered around zero after the scandals broke, it never tipped into negative territory. “Existing customers stuck with us,” says Ms Mack. Customer retention is at a multiyear high, she says. “It was with prospective customers choosing between us and another bank that we got hurt.” Chart showing Well Fargo’s ’ price-to-book ratio has lost its premium over peers Mr Pelos, the head of wholesale banking, agrees. “I’ve been in some awkward conversations, but by and large our customers have stuck with us. They know their banker. Our results have been OK because of that. New customers have been harder to convince.” He suspects the scandals have made corporate clients cautious, thinking to themselves: “’I’d hate to be the CFO that recommended Wells to my board and then something else happens.’” Financial services is a sticky business. Customer relationships, once won, are hard to lose. Whether resilience of Wells’ franchise is down to this inertia or the unique characteristics of the company — its long history in small and mid-sized American communities — is open to debate. Wells’ business proved sticky in another sense. Following the scandals, there was no exodus of executives. Several headhunters specialising in banks professed surprise at the low level of turnover at the top of the bank. “I’ve been heavily recruited for other jobs; the opportunities are great for people here,” says one senior executive at Wells on his decision to stay. Wells’ key challenge, then, is winning new customers. But that means getting back to selling — when an out-of-control sales culture is exactly what got the bank in trouble. The bank’s leaders are acutely aware of the balancing act. Employees have “really adopted more of a compliance mindset and a customer experience mindset rather than a convert customers and expand the business mindset, because that was near the centre of what created problems,” says John Shrewsberry, chief financial officer.

n his job fighting graft and armed gangs, Sérgio Moro, Brazil’s crusading anti-corruption judge, came to his new office in Brasília armed with two things: a statuette of Ruy Barbosa, father of the country’s civil liberties, and Sherlock Holmes, the fictional sleuth. But the former head of Brazil’s groundbreaking Lava Jato corruption probe will need more than symbols in his new job as justice and security minister in the rightwing administration of Jair Bolsonaro. Mr Moro acknowledged the scale of the challenge in an interview with the Financial Times: “It will be four years before I can take a holiday,” he said, referring to the end of the presidential term. His new responsibilities include fighting some of Brazilians’ top con-

you sentenced President Lula and then took on a position in the new government’,” Mr Moro said. “Look, the idea of political persecution is false. “I’ve spent over four years working intensively on Lava Jato and have 22 years of magistrature. I cannot be held hostage by a fantasy, a falsehood from someone who has committed a crime,” he added. Although many Bolsonaro voters expected him to be appointed to the cabinet, Mr Moro says he was “taken by surprise by the offer. Following an initial approach from members of the Bolsonaro team between both rounds of the presidential election, he said the “invitation” only became formal after the president’s victory. With corruption allegations against some in Mr Bolsonaro’s inner circle, critics wonder if he has not made a Faustian pact. Onyx

Sergio Moro was criticised for accepting a government job after prosecuting the new president’s main rival, former head of state Luiz Inácio Lula da Silva

cerns: corruption, organised crime and violent killings. “The three problems are related,” he said. “Big corruption imperils the state’s ability to develop efficient public policies, either because of misuse of resources or because of a loss of credibility or confidence. That creates a vacuum in which organised crime and violence grow.” Until last month, an investigating judge from Curitiba, the capital of one Brazil’s smaller states, Mr Moro helped to change history. As the head of Lava Jato, or Car Wash, he helped expose a bribery scheme in which Brazil’s main political parties siphoned money from Petrobras, the national oil company. He jailed some of the country’s most crooked politicians and businesspeople, sending reverberations across a continent inured to the impunity of the powerful. He secured his biggest scalp when he prosecuted leftist twoterm president Luiz Inácio Lula da Silva, who is serving 12 years for corruption. The jailing of Lula prevented the popular former leader from running in last October’s elections, helping Mr Bolsonaro secure victory. Mr Moro’s subsequent decision to accept a government post prompted accusations that he was guilty of a conflict of interest. While many considered it a political masterstroke by Mr Bolsonaro, others felt it undermined the legitimacy of the corruption investigation, and tarnished Mr Moro’s gleaming reputation. “Some have criticised me: ‘Ah,

Lorenzoni, Mr Bolsonaro’s chief of staff, is under investigation over campaign payments, and has said in a statement that the probe “will give me the opportunity to clarify, with the truth” the allegations against him. Meanwhile, prosecutors are also looking into the financial dealings of Fabrício Queiroz, a former adviser of Flávio Bolsonaro, who is a senator-elect and one of the president’s sons. Both men have denied wrongdoing. Mr Moro insists he will remain independent. “Will there be corruption in government? It may exist. Cases may occur. We are not here pretending to build something utopian,” he said. Mr Moro emphasised that the Federal Police and the judiciary would be independent. “The cases that arise will be investigated,” he said, and if need be “they will have the necessary consequences”. But he was quick to stress that there was a difference between now and the recent past, when “public administration was structured based on a system of corruption”. If a graft case arises, “it is going to be an isolated issue, it will not be something systematic, organised”. Speaking with a country twang from his upbringing in the southern agricultural state of Paraná, where he received most of his education apart from a short stint at Harvard Law School in the US, Mr Moro justified his move to government: “As justice minister, you have a greater range of powers than as federal judge.”

Tuesday 15 January 2019

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SSA to host half of world’s fastest growing economies in 2019 amid imminent debt crises ISRAEL ODUBOLA

n what may seem as good news for subSaharan African (SSA), the region is expected to host half of the fastest growing economies in the world in 2019, even though the number of countries in debt distress has surged and the region’s total debt is heading towards $160 million. This was disclosed by Brahima Coulibaly, Senior Fellow and country director of the Brooking’s Institution Africa Growth Initiative (AGI). Regional growth would appreciate to 3.8 percent in 2019, and would basically be driven by steady recovery in

commodity prices, stronger macroeconomic performance in the global clime and improved access to international capital market, according to the AGI. This forecast on regional growth would be even better if not for the underwhelming projections from the two largest economies in Africa, Nigeria and South Africa, as both economies are sluggishly recovering and both have elections this year. The exclusion of Nigeria, South Africa and Angola would see regional growth heading towards 5.7 percent in 2019. Furthermore, half of the world’s fastest growing economies will be located in the SSA region, with 20 economies expand-

ing averagely by 5 percent or even more in the next five years, the agency posits. Despite the positive stance on regional growth, the debt profile of the region has been on the upward trend over the years. A minimum of 14 countries in the region is in debt distress or at high risk of debt distress, indicating an uptick from six countries five years earlier. The decade of cheap debt, which some countries accumulated in the second half of the period, has ended, signalling a huge risk, with the tendency that global recession might occur in 2020, with commodity prices and demand falling. A tangible fraction

of countries in the region might find it extremely difficult to service their debts, most especially if interest rates continue to rise. The region’s debt is growing at fast pace, with an average debt-to-GDP ratio of 57 percent and more prominent in countries such as Cape Verde, Eritrea, Congo and Mozambique, where it is higher than 100 percent. Given the changes in the global economic environment, effective debt management strategies should be a priority for African policymakers, as they would need to take giant steps to strengthen governance around tax revenue collection.

L-R: Peter Ehimhen, executive director, technical, Wapic Insurance plc; Ayodeji Bankole-Olusina, managing director (Designate), Wapic Life Assurance Limited; Yinka Adekoya, MD/CEO, Wapic Insurance plc; Bode Ojeniyi, executive director, Wapic Insurance plc, and Sunny Ogbemudia, chief internal auditor, Wapic insurance plc, at the launch of Wapic Insurance Ombudsman Desk in Lagos. Pic by Olawale Amoo

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49 NEWS

BUSINESS DAY

Dangote denies truck that caused Ekiti accident

angote Industries Limited has denied the ownership of the truck that caused accident in Iworoko Ekiti, in which 20 people were said to have died at the weekend. Management of DIL on Sunday issued a statement, frowning at the unverified report carried by an online medium, alleging that a Dangote truck was responsible for the tragedy in Iworoko, near Ado Ekiti, where 20 lives were lost. Dangote wondered why some people rushed to the press without adequate verification, thereby reporting falsehood as it had been confirmed that the truck did not belong to Dangote, as reported by the medium. The statement stated, “While we commiserate with the families of the deceased and pray for God’s strength to bear the loss of their loved ones, it is important to state that the affected truck did not belong to our company. “Dangote Industries Limited does not import or produce rice for the market or for any individual or entity. Our trucks are also not meant to carry third party goods as we have consistently requested the public to report any such illegal action by our drivers to us for monetary reward.” It would be recalled that the management of DIL, recently issued a passionate appeal to members of the public to assist in monitoring and reporting both recklessness and illegal haulage of contraband goods by some of its truck drivers with a cash reward of N250,000 per report. The company, through paid adverts both electronically and print medium,

issued warning to those illegally transporting unauthorised goods through the company’s trucks, to desist from such as both the drivers and the owner of the goods would be arrested and duly prosecuted. To clarify its position, the management went on to list its products and goods, which its over 10,000 trucks operating across the country and the neighbouring West African countries could convey. It stated: “Dangote trucks are permitted to transport only the following materials: Dangote Cement plc – Dangote Cement, Limestone, High Grade Gypsum and Coal; Dangote Sugar Refinery plc- Dangote Sugar; NASCON Allied Industries plc – Dangote Salt and DanQ Seasoning; Agrosacks Industries Limited – Bags; Dangote Flour Mills plc – Dangote Wheat, Flour and Danvita. “We hereby alert the public to report any suspected Dangote truck driver involved in illegal haulage supported with credible evidence of such act.” While the Police and other law enforcement agents have been authorised to arrest any Dangote Truck driver involved in such illegal act, it urged members of the public while making their report to remember to include the Truck Type; Truck Plate Number; Truck Cab Number; Location of the Truck, Contents of the Truck, Colour of the Truck and Photographs of the Truck and goods if possible. The management of Dangote Group, in a statement alerting and encouraging the public to report any suspected Dangote Truck driver involved in illegal haulage, provided hotlines to make such reports.

Environment in focus as stakeholders gather for Edu Memorial Lecture FG’s mounting debts signal danger for economy - NECA CHUKA UROKO

hen environment stakeholders gather on Thursday this week for the annual S.L.Edu memorial lecture in Lagos, the direction and focus of discussion will be on the environment and its challenges. The lecture, which is organised by the Nigerian Conservation Foundation (NCF) in collaboration with the support of S.L. Edu Family and the support of Chevron Nigeria Limited, is aimed at bringing environmental issues to the fore of national discourse while articulating solutions. A statement from NCF obtained by BusinessDay says this year’s edition of the lecture has as theme, ‘A Quiet Revolution: Faith and the Environment’ to be delivered by Martin

Palmer, Secretary General, Alliance of Religions and Conservation (ARC), Bath, United Kingdom. As is the tradition with the lecture, speakers from diverse backgrounds ranging from academic, conservation, government, corporate bodies and more have delivered lectures on environmental conservation, policies and other topical issues. This year, some of the topics and guest speakers for the lecture include, Environmental Management: Imperatives in Africa’s Sustainable Development, Charles Okidi, University of Kenya; Environmental Policy and Performance: A Sustainable Development Agenda for Nigeria, Ernest Shonekan, former Head of Interim Government in Nigeria. Amina Mohammed, former minister of environment, Nigeria, and current

deputy secretary general of the United Nations, is expected at the lecture and will be speaking on ‘Decline of Vultures: Consequences on Human Health and the Economy.’ Other personalities expected at the lecture are Bola Ajibola, Femi Okunnu, CAN national chairman, General Secretary of Nigerian Supreme Council of Islamic Affairs, PFN president, Chief Imam of Lagos, NASFAT General Secretary, Traditional Rulers, community leaders, lecturers and students etc. The event will also be used to award scholarship grants to two PhD. Students in the field of environmental sciences in Nigerian universities. The grant, sponsored by Chevron, is to encourage the students to undertake research in nature conservation, biodiversity and sustainable livelihood.

JOSHUA BASSEY

... says oil revenue insufficient to make impact

igeria Employers’ Consultative Association (NECA) says Nigeria’s mounting debt burden could have negative implication on developmental capacity of the economy given that about 25 percent of the 2019 budget size of N8.8 trillion amounting to N2.140 trillion is going into debts servicing. Asides this, NECA also points out that the Federal Government’s uncontrollable appetite for borrowing within the domestic market is limiting the real sector from accessing funding for expansion and growth that should ultimately lead to increased employment opportunities within the economy. Timothy Olawale, directorgeneral of NECA, who stated the position of the employers’ body recently, said this development was worrisome and

needed to be checked. Latest figures released by the Debt Management Office (DMO) showed that the Federal Government’s domestic debt profile rose to N15.814 trillion in September 2018, from N15.629 trillion in June 2018 (1.19% increase). According to Olawale, this figure becomes more worrisome when viewed from the total public debt stock, comprising the external and domestic debt of the Federal Government, the 36 states and the FCT, which stands at $73.208 billion (N22.38trn) as of June 2018. Discussing the implication of the huge borrowing in the domestic market, for example, he said: “The size of government borrowing in the domestic financial market continues to be a major source of concern, as this has in no small measure, affected the chances

of the real sector to access funding at a reasonable cost.” Also on the amount proposed for debt serving in the 2019 budget, he said, “This trend, which is very disturbing, could have a negative effect on the developmental capacity of Nigeria despite government’s financial managers’ argument that the rate of increase is within a manageable limit.” He noted, “Financial experts at the International Monetary Fund (IMF) and the World Bank have in fact, advised that the revenue-to-debt ratio is unsustainable and it portends a serious danger for the future generation.” He warned that while the effect of the increasing debt might not be immediate in totality, it could be catastrophic in the long term with a chunk of revenue consumed by debt servicing to the detriment of infrastructural development.

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NEWS YOU CAN TRUST I TUESDAY 15 JANUARY 2019

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INSIGHT/INNOVATION Nigeria’s investment outlook and Lafarge’s rights issue

OGHO OKITI Dr. Okiti is the president, Time Economics Ltd @ Dr_Okiti 081.7153.0058

n 2018, from Nigeria’s perspective, three important dynamics started to shape the investment outlook for 2019. First is the tightening of financial conditions in the US. In 2015, the US Fed raised rates for the first time in a decade, but by 2018, it raised rates four times, following three times in 2017. In the space of two years, the Fed has, quickening the rates rises, effectively moved from a position of quantitatively easing to quantitative tightening. In 2019, given the recent statement by the Fed Chairman Jerome Powell that they plan to be patient with the raising rates, it is expected that the pace will be slow. Nonetheless, companies in emerging markets, coming under pressure following the tightening of financial conditions in the US, have started to change their strategy. Second, the Central Bank of Nigeria (CBN) Monetary Policy Committee (MPC) has maintained 14% lending rate since July 2016. In

PROPHYLAXIS

AYULI JEMIDE Ayuli Jemide is Founder and Lead Partner of Detail Commercial Solicitors. An entrepreneur, public speaker and writer. Email: AJ@ayulijemide.org Twitter: @JemideAyuli

s Nigeria inches closer to the 2019 elections the drama has begun and the dramatis personae are in their elements. The unfolding dramas have thrown up the good, the bad and the ugly side of elections. We have seen the Independent National Electoral Commission (INEC) at loggerheads with the opposition parties over the procedure for elections – the political parties believe the card readers should be the sole mode of voter authentication and INEC has its own ideas about the ‘’tender ballots’’ it has introduced and the secondary sources of non-biometric voter authentication. This debate is still on and Nigerians are watching this closely. This is perhaps one of the stickiest points in the 2019 elections because the opposition parties have alleged that this procedure creates avenues for rigging the elections. Someone posted a comment on twitter which made so much sense to me. He said, if we can depend on bank cards to collect money from the ATM machines and pay by POS, why can’t INEC deploy card readers that simply work. He asked a very valid question:

the same period, the national debt has been climbing and these rates, though primarily to sustain foreign exchange liquidity, has helped drive up yield on government debt and tightened financial conditions for local businesses. Another dimension to this is the uncertainty surrounding oil price dynamics for 2019. In the event of a significant fall in oil prices, the Naira faces pressure and prospects of devaluation, while the debts, especially international ones, is likely to be exacerbated by both currency risks and costs. The third is Nigeria’s recent weak growth. Nigeria’s GDP figures for 2018 have been very weak, recording 1.95% for Q1, 1.5% for Q2 and 1.81% for Q3. Indeed, starting from 2015, the annual growth of GDP has been weak compared to the decade before that, with 2015, 2016, and 2017 growth figures at 2.79%, - 1.58% and 0.82% respectively.Given the 2018 trend, it thus means that for three consecutive years, Nigeria is expected to record less than 2% GDP growth. It is worth mentioning two important points in relation to growth, especially from the perspective of firms such as Lafarge. One is that Nigeria’s growth has been weak same time as that of South Africa and Angola, the three largest economies in the continent dragging the region’s growth down. The second point is that Nigeria’s growth is currently worse than the global average, for the first time in almost two decades. What are the implications of these for Lafarge and similar companies in the medium term? First, the rights issue to raise the N89.2 billion for its next growth phase and for the purpose of restructuring its outstanding short term debt of US $315 million shareholder loanspresents the best opportunity for the company and its shareholders in the medium term. It allows the company to restructure its

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The negligible discrepancy between the share price and the subscription price suggests that the company is very attractive at the subscription price, and the opportunity for shareholders to benefit from improved value additions, reaping the rewards in the form of increased share value (EPS/ dividends/buybacks) and this would naturally lead to increased stock prices in the medium term

loan portfolio through raising the capital internally, rather than through external sources. Given the tightening of financial conditions both in the US, and in Nigeria, and given the uncertainty in relation to oil prices and the stability of the Naira, the rights issue thus providesa fresh opportunity for the firm and its shareholders defend their investments. The rights issue also provides the company with the needed capital to prepare it for the growth expectations in its key markets of Nigeria and South Africa. While growth has

remained weak in the last few years in both countries, there is a strong expectation that infrastructure expenditure will continue to rise and medium term growth expectations will also improve. Building the capacity now by shoring up its capital base is the right bet for the company for Africa’s two largest economies. Though the company’s earning returns have been weak, it coincided with weak macroeconomic conditions, and depressing business climate. So a right issue will help avoid the further dilution of shareholder value. Paying down debt and the improvement of the company’s financial conditions should have a positive impact in their bottom line (after tax income). This would create value for shareholders in the near term. The expectations of strong growth should translate to a positive Profit After Tax (PAT)and (Earning Per Share) EPS, dividends and possibly share buybacks. While the right issue will lead to the dilution of the EPS (earning per share) when completed, but it would also avoid the outright dilution of shareholder ownership value. The negligible discrepancy between the share price and the subscription price suggests that the company is very attractive at the subscription price, and the opportunity for shareholders to benefit from improved value additions, reaping the rewards in the form of increased share value (EPS/dividends/buybacks) and this would naturally lead to increased stock prices in the medium term. In conclusion, as the rights issue closes shortly, the expectation is that it was the right call. In one of the most aggressive sectors in Nigeria and Africa, the company recognises that it cannot afford to be left behind. Its rights issue will thus shape its outlook for many years to come. I thank you.

Electioneering, politics: And what next? what is the failure rate at ATM machines? 2019 electioneering has witnessed a few campaign rallies where blood has been shed – guns, knives and other weapons designed to inflict injury and cause death have been deployed at campaign rallies. We have seen campaign poster wars where some incumbents in certain states have used their powers to block the opposition from pasting their banners and posters. Rice seems to be the most popular campaign tool in these elections – we have seen rice bags branded with photos of candidates being distributed to all and sundry. One girl took a photograph of her rice bag with a governorship candidates’ photo and name. She posted it on twitter and her message on twitter was ‘’thank you for the rice, I will accept the rice but still vote for your opponent’’. Still on rice, in one state a trailer load of campaign rice was involved in an accident were some innocent souls were killed and the public in their own sense of justice looted the rice. The social media tempo is at its all-time best – Instagram, Twitter, Facebook, and WhatsApp are currently agog with accusations and counter

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Interestingly, our Constitution in Section 292(1) also protects a Justice of the Supreme Court from being removed at will by the President. A two-thirds majority vote of the Senate is required before a Justice of the Supreme Court can be removed

accusations. Despite the talk about issues-based campaigns there seems to be a lot of mimicry and mudslinging on the various platforms. On a lighter note, Falzthebahd guy has released a video about the elections which you cannot afford to ignore. It is a must watch. Sign language has been introduced in this election, we have seen the 4+4 sign and the counter 4+0 sign which has emanated from the stable of political parties and their canvassers. The greatest twist by far in the pre-election drama is the attempt by the President (or people around him) to remove the Chief Justice of Nigeria. This has generated the most debate and is the topical issue to keep your eyes on because it has far reaching constitutional and legal implications for Nigeria as a democratic country. Opposition parties and even non-politicians are not mincing words about the fact that this move a few weeks to the elections is a clear attempt to muzzle the judiciary in anticipation of the fact that judicial review may play a key role in deciding who wins the elections. Unfortunately, this move has also been given a tribal slant because the current Chief Justice is the first Chief Justice from the Southern part of Nigeria since 1985 when the Hon. Justice Ayo Gabriel lrikefe was appointed the Chief Justice. That said, my personal view is that one of the fundamentals of democracy is the doctrine of separation of powers where the Executive, Legislature and Judiciary are three arms of government that operate independently and act as a check and balance to one another. Therefore, any interpretation given to our constitution that negates this doctrine of separation of powers is tantamount to questioning whether Nigeria is indeed a democracy. If we take a cue from America where we borrowed our Presidential system of government from, the process of impeaching a justice of the Supreme Court is a tough process. First, the House Judiciary Committee must conduct an investigation

and recommend charges. Second, a majority of the House Judiciary Committee must approve articles of impeachment, which then would face a vote by the full House membership. Next up would be the trial in the Senate where a twothirds majority vote is needed to convict. Only then would the official in question be dismissed from office (and possibly be forbidden from holding a position in government in the future). In America, Supreme Court justices serve for life, unless they resign, die or are impeached and removed from office. The reason for their lifetime tenure is to enable them to make decisions free from any pressure by the executive or legislative branches of government. Since the Supreme Court first convened in 1790, there have been 112 justices and only one ever has been impeached. In 1804, the U.S. House of Representatives voted to impeach Associate Justice Samuel Chase. Chase was appointed to the U.S. Supreme Court by President George Washington in 1796. Chase irked Thomas Jefferson and his Republican allies in Congress, and was impeached on politically motivated charges of acting in a partisan manner during several trials. However, in 1805 Chase was acquitted by the Senate, a decision that helped safeguard the independence of the judiciary. He served on the court until his death in 1811. Interestingly, our Constitution in Section 292(1) also protects a Justice of the Supreme Court from being removed at will by the President. A two-thirds majority vote of the Senate is required before a Justice of the Supreme Court can be removed. Whilst the politicians continue with their chicanery, we as citizens owe it to our country to keep our focus on election day. Go out there and vote your conscience. Do not go home until the votes have been counted. Insist on the results being pasted. Take a photo of the results and post it out there on social media. God bless Nigeria!

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