BusinessDay 17 Jan 2019 by BusinessDay

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Buhari’s support thins as business leaders fear worst from re-election Atiku to privatise NNPC, replace CBN governor if elected LOLADE AKINMURELE

t’s with the same vengeance that 45-year-old small business owner James Kenneth (not real name) voted out Goodluck Jonathan in 2015 that he plans to

boot out President Muhammadu Buhari at next month’s elections. Kenneth voted for Buhari in 2015 with a lot of optimism that the 75-year-old would rid the country of the widespread corruption that festered under

the then President Jonathan and create enough jobs for a teeming youth population. But four years in, a receding economy, heightened poverty levels and Continues on page 33

Otedola’s move to buy Forte upstream assets raises questions on valuation

…possible conflict of interest …proposed EGM seen as litmus test for shareholders IHEANYI NWACHUKWU & DIPO OLADEHINDE

Herbert Wigwe, GMD/CEO, Access Bank Plc (l), and Uzoma Dozie, GMD/CEO, Diamond Bank, at the knowledge sharing session ‘Let’s talk about merger and collaborations, financial inclusion, and empowerment’ organised by Spark by Businessday in Lagos, yesterday. Pic by Olawale Amoo

i g e r i a’s b i l lionaire businessman Femi O t e d o l a ha s shown interest in acquiring the upstream assets and power business of Forte Oil Plc. However, letting the juicy part of the entire Group go at anything less than a premium will be another litmus test for shareholders. This comes as issues bordering on proper valuations for the Forte Upstream, Forte Ghana, and its power units become topical at various gatherings where informed investors discuss the notice of the proposed Extra Ordinary General Meet-

ing (EGM) of the company holding on February 7. The issue on valuation for the Forte Oil asset sale to its majority shareholder comes barely three day after Oscar Onyema, CEO of Nigerian Stock Exchange (NSE), advised shareholders to properly examine issues that are brought to them for approvals at eiContinues on page 33

Inside

Local, foreign investors show interest in Arik Air 2 years after

P. 2

2 BUSINESS DAY NEWS Nigeria needs aggressive infrastructure push to unlock N4.7trn real estate sector g

CHUKA UROKO

hen Ebong Bassey committed N650,000, saved from his meagre income as a civil servant, to buying a plot of land from an estate located along the LagosBadagry Expressway in Lagos, he did so in anticipation that the on-going expansion and reconstruction of the expressway would be completed in good time and roads infrastructure problems would have been solved. Bassey went ahead to start developing the land with the building of a three-bedroom bungalow, keeping pace with the reconstruction of the expressway and hoping to live in his own house soonest. The Lagos State government which was building the expressway, from a snail pace of work, has stopped altogether and the contractor has gone on holiday. That is how Bassey’s dream of owning a home has been dashed because the expressway has become a nightmare with an impenetrable gridlock. He is not encouraged to continue his development and he cannot get back his hard-earned money. He is in a real dilemma. And he is not alone in this.

Nigeria has a huge real estate sector whose value is estimated at N4.7 trillion. But the country cannot unlock this value due to infrastructure constraints. The country’s yearly demand for housing is estimated at 1 million units. Only 100,000 are supplied. The rest, which offer huge investment opportunity, cannot be supplied for reasons of infrastructure. Northcourt Real Estate in its recent report confirms that the absence of infrastructure, which constitutes 15 percent-20 percent of Nigeria’s real estate sector, has contributed to the high cost of development. Ayo Ibaru, the company’s director, real estate advisory, says “bridging this chasm is crucial to unlocking sustainable growth the economy so desperately needs”. Land and housing and, indeed, other forms of real estate are like chicken and egg. To reduce the cost of development, investors always look for areas where there are infrastructural facilities such as roads, electricity and water. This explains why land prices are generally high in city centres.

•Continues online at www.businessday.ng

Inflation rate, at 11.44%, hits 7-month high on election fears DIPO OLADEHINDE, SEGUN ADAMS, ISREAL ODUBOLA & GBEMI FAMINU

he growing anxiety over next month’s general elections appears to be having serious effects on Africa’s biggest economy as annual inflation hit a seven-month high of 11.44 percent, up from 11.28 percent in November, the National Bureau of Statistics said on Wednesday in a report. “Continued inflation inevitably leads to catastrophe,” according to one famous economist. In Nigeria, Inflation gets a lot less attention than unemployment and poverty but high inflation is arguably more dangerous to an economy that grew at 0.83 percent in 2018. Next month’s general election will be crucial for Nigeria whose inflation rate has been rising steadily since July, increasing chances that the country’s apex bank could tighten interest rates at its first meeting of 2019 next week. Also, the price index, which peaked at 18.7 percent in January last year, has been in double digits for three years. Adetola Adelu, financial analyst at Fides Capital Partners, said the sharp inflation increase recorded between November and December was because of the yuletide season, adding that the coming election also had a role to play in it.

“Based on precedence, we can expect the inflation to go up and there is the actual possibility of interest rate being adjusted between Q1 and Q2 2019,” Adelu said by phone. Gbolahan Ologunro, financial analyst at CSL Stockbrokers, said the uptick in inflation was in line with market expectation. “What happened during the festive season was robust demand from consumers which pressured prices as evidenced in the food index. We also saw electioneering spending kicking off in full swing from December as well which could have further put pressure for commodities in the market,” Ologunro said. BusinessDay analysis reveals that inflation rate between May and December 2014, the period that heralded the 2015 general election, averaged 8.0 percent, which is 3.31 percent points lower than similar period in 2018. “For H-1 2019, supply shocks will continue to have impact on the availability of commodities in the market. Definitely, increased expenditures on commodities to provide food for campaigns would mean that the demand for commodities, especially staple food, will still remain high,” Ologunro told BusinessDay by phone from Lagos, Nigeria’s commercial capital. •Continues online at www.businessday.ng

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Thursday 17 January 2019

L-R: Henrietta Bankole-Olusina, executive secretary, Fund Managers’ Association of Nigeria (FMAN); Adeola Ajewole, general manager, adverts, sales and marketing, BusinessDay Media Limited; Dayo Obisan, president, FMAN; Patrick Atuanya, editor, BusinessDay; Ifeoluwa Dixon, executive officer, FMAN, and Shuaib Audu, vice president, FMAN, during the visit of the current executive committee of FMAN to BusinessDay head office, The Brook, in Lagos yesterday. Pic by David Apara

Local, foreign investors show interest in Arik Air 2 years after IFEOMA OKEKE

…as EBITDA turns positive in 2018

gainst reports making rounds that Asset Management Corporation of Nigeria (AMCON) is yet to get a buyer for Arik Air, BusinessDay’s findings show that local and foreign investors are currently showing keen interest in the airline. Recall that at the time AMCON was appointed a receiver manager, Arik’s debts were in excess of N300 billion. The airline had lost the confidence of key vendors, maintenance repair organisations and part suppliers. These creditors were both local and international. Two years down the line, BusinessDay’s checks show that critical vendor relationships have been revamped and trade lines restored, with Arik now enjoying the confidence of partners. Oluseye Opasanya, receiver manager, Arik Air, in a statement sent to BusinessDay said the airline is being run under unique governance arrangements that have ensured that costs are prudently optimised and that all departments of the company function in an orderly and professional manner. “It is gratifying to report that the airline’s Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) was negative in 2017 but in 2018 was significantly positive. The financial trajectory has been positive, proving that a profes-

sionally run airline has a future in Nigeria,” Opasanya said. “Following the impressive performance of Arik Air in receivership, local and foreign investors are showing keen interest in the airline. Past attempts to resolve the debt issue with legacy shareholders have been frustrated by their insincerity exemplified by the presentation of fake and bogus investment proposals (false financial backing), confirming the lack of corporate governance and diligence in their approach to business,” he said. Consequent upon measures taken post receivership, on-time performance (OTP), which had fallen abysmally to 19 percent a month before AMCON’s intervention, climbed up steadily and currently averages 63.5 percent. Cancellations, which were as high as 40 percent as at January 2017, has been significantly reduced to less than 4 percent. Average load factor is currently over 73 percent whilst aircraft utilisation has also increased by about 50 percent. Opasanya assured that the airline places a high premium on staff training to maintain its safety standards and meet national and international operational requirements, adding that the management team has ensured that staff undergo mandatory trainings, locally and internationally. A staff in Arik Air who craved

anonymity told BusinessDay that all hitherto unpaid salary obligations have been paid while current salaries and pensions are paid and remitted as at when due. “The Arik we have now is totally different from the Arik Air which was managed by Joseph ArumemiIkhide, founder of Arik Air, three years ago. The new management is investing in staff trainings and ensuring the aircraft are maintained as at when due,” the staff assured. Before AMCON took over the management of Arik, BusinessDay’s investigations showed that some of the serviceable aircraft were due for various checks, staff were owed between four to six months’ salaries, and staff morale was at the lowest ebb. Fleet insurance was due and the airline basically struggled to pay the premium. Vendors were being owed colossal amount of trade debts to the extent that no oil marketer selling aviation fuel was willing to advance trade credit to the airline. The former management found it extremely difficult to pay for fuel and as a result flight cancellation was rife. On-time performance (OTP), which is a measure of an airline’s ability to meet scheduled flight time, plummeted, leading to significant customer attrition and loss of confidence.

•Continues online at www.businessday.ng

Nigerian stocks lag ahead February’s elections as emerging markets rally OLUWASEGUN OLAKOYENIKAN

four-day gaining streak recorded at the Nigeria Stock Exchange (NSE) in the last trading sessions was not good enough to put the nation’s stocks on a positive trajectory just like their peers in most emerging markets. In spite of the market rally triggered by bargain hunting on the backdrop of cheap valuations of stocks with sound fundamentals, according to Gbolahan Ologunro,

an equity analyst at CSL Stockbrokers, Nigeria’s stock market lost 4.11 percent in value so far this year. This placed the Lagos bourse as the world’s fourth-worst performing among emerging markets at the close of business on Tuesday, after Serbia, Romania and Bulgaria. Argentina is leading other emerging markets, rising 11.48 percent so far this year. Oil-rich Saudi Arabia followed with 7.72 percent return, while Brazil’s

Bovespa has flied to a 7.51 percent gain. Emerging markets were the greatest hit in 2018 following a four-time interest rates hike by the United States Fed Reserve which triggered exits of foreign portfolio investors from the markets to take advantage of higher returns in the country and other developed nations. Nigerian stocks were down 17.8 percent last year, the biggest since 2009. The trend has not changed as the nation prepares to go the polls

next month. This coupled with increased cases of violence and low prices of crude in the international market continued to build up uncertainties in the Nigerian market, thereby weakening investor sentiment. “The election is what is affecting the sentiment towards the market,” Ayodele Ebo, managing director, Afrinvest Securities Limited, told BusinessDay. “The election is a concern to investors. Notwithstanding, in terms of volumes, investors are also taking

positions, but not very aggressive.” Oscar Onyema, NSE chief executive officer, had at a media briefing on Monday noted that the market would perhaps be volatile in the first half of 2019. “We believe swift approval and implementation of the 2019 budget will have a positive impact on companies’ earnings as well as consumer spending. Therefore, we expect an uptick in market activity during the second half of 2019,” Onyema said.

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Microsoft 4Afrika partners FirstBank to support SMEs

irst Bank of Nigeria Limited, together with Microsoft 4Afrika, will host a free-to-attend event for SMEs in Nigeria, designed to promote technology adoption and skills development. The event will serve as an official launch of the new partnership between Microsoft 4Afrika and FirstBank, following a memorandum of understanding signed earlier in June 2018. The partnership seeks to build the capacity of local SMEs and accelerate their digital transformation, by providing them with exclusive and tailored non-financial solutions. Participants will be exposed to skills development resources, access to business networks and an educational platform. AccordingtoTaiwoShonekan, head, customer experience and value management, First Bank, “This partnership with Microsoft enables us to deliver a portfolio of non-financial solutions to our SME customers. We have over the last 125 years supported SMEs in building their business, whilst contributing to the national economy. “This partnership is a landmark step in our quest to leverage the influence of technology in businesses, especially in today’s digital age.

“With this partnership, FirstBank customers can buy Microsoft products at discounted rates in the local currency – the naira – as this seamlessly aids technology adoption, skills and capacity development among SMEs in Nigeria.” Amrote Abdella, regional director, Microsoft 4Afrika Initiative and the keynote speaker for the event,says:“ForSMEs,integrating technologyintotheiroperationsis no longer an option, but a necessity for future growth and success. “We’re looking forward to engaging in discussions that explore how technology can extend reach to new markets and improve productivity, which results in better customer service, more competitive offerings and the ability to act with agility.” Across the continent, Microsoft 4Afrika is forging partnerships with several players in the SME ecosystem – from banks to telcos – to enhance SME offerings and reach a broader audience. “Technology and the relevant digital skills today play such an integral role in business success. We’re working with organisations to extend this support to as many SMEs as possible, ensuring not only their success, but the growth and competiveness of our continent in an increasingly digital world.”

Organisation partners Kind Foundation to connect 1m children, primary school educators IFEOMA OKEKE

hybrid educational organisation, TedPrime Hub, is partnering Empatico, an initiative of Kind Foundation, to connect primary school educators and their classrooms globally on empathy, kindness as well as sparking curiosity and global citizenship among students in public and private primary schools in Nigeria. Reacting to the development, Erick Roa, Empatico’s head of partnerships, stressed the need to engage children on empathy and kindness in a way to advance intercultural exchange and global learning in classrooms, which would not have been possible without technology. Ayodele Odeogbola, project representative and Empatico connector of TedPrime Hub, reiterated the need to champion the attainment of UN SDGs right from the classroom, and more importantly, the children and educators in the early education stream through low cost technologies. “It is in no doubt that Empatico Project would influence the attainment of UN SDGs on quality education, reduced inequalities, good health and Wellbeing and more importantly, Partnership for the Goals right from the classroom,” Odeogbola said. Olalekan Adeeko, the

technical lead for the organisation, acknowledged that this project would improve the learning outcomes and teacher quality and status in primary education in Nigeria on respectful communication as well as leadership skills and TedPrime Hub would be working on incentives to motivate these teachers that advance to classroom partner exchanges with other peers around the globe on Empatico platform. Various educational gift items for the top participating teachers are not limited to free tablets PC, rechargeable mini projectors, free data subscription and all-expense paid trip to education led conferences outside the country. Empatico is a free tool for teachers to connect their classroom with others around the world, through a combination of live video and activities designed to foster meaningful connections among students. Empatico offers time-efficient resources for teachers to schedule virtual exchanges and high-quality activities designed for students’ ages 7-11 who are conversational in English. Empatico empowers teachers and students to explore the world through experiences that spark curiosity, kindness, and empathy. The project, which its first phase in Nigeria would last till June 2019, kicks off in Lagos, Ogun, FCT, Oyo, Ondo, Osun, Edo, Benue, Ekiti and Kwara states.

L-R: Gbenga Daniel, former governor, Ogun State; Jimi Agbaje, Lagos State, People’s Democratic Party (PDP) governorship candidate; Uche Secondus, PDP national chairman; Opeyemi Agbaje, CEO, RTC Advisory Services Limited/moderator; Atiku Abubakar, PDP presidential candidate, his running mate Peter Obi; Kabir Tanimu Turaki, former minister of special duties, and Liyel Imoke, deputy director-general, PDP presidential campaign, during Atiku’s meeting with the business community on Getting Nigeria’s Economy Working: A Pragmatic Approach in Lagos, yesterday. Pic by Olawale Amoo

Saraki to Buhari: Uphold tenets of the Constitution OWEDE AGBAJILEKE, Abuja

enate president, Bukola Saraki, has stressed the need for President Muhammadu Buhari to uphold the tenets of the 1999 Constitution, which guarantee separation of powers. This comes as the Senate president revealed that the eighth Senate had passed 257 bills as of December 2018. Recall that the eighth Senate was inaugurated on June 9, 2015, while its tenure would come to an end in June 2019. Delivering his welcome back speech on Wednesday at resumption from end of year recess, Saraki called on leaders not to heat up the polity with unguarded statements. He said: “It bears reminding that the exercise of power must be anchored in the best democratic principles. The former US President Obama’s Doctrine of Restraint as a key feature in the use of power, is recom-

mended to us in this polity at this crucial time. Some of the reports and occurrences in recent times speak to this need for restraint. “Those who exercise power should do their best to avoid any action that stands the risk of being misconstrued as coloured by partisan considerations. “On that note, I wish to lay emphasis on the role of the Judiciary in promoting justice and bringing respect to the country. If the Judiciary is violated or eroded or otherwise brought to ill repute, so do the values attached to its role in a democracy. Everyone in the political value chain should therefore do nothing that could raise tensions in the country. Nigerians are looking up to leaders who will douse flames that have the potential to threaten the peace and wellbeing of our country.” According to Saraki, the integrity of the constitution must be preserved at all times, even as he urged lawmakers to put the country first as they carry out their legislative duties.

He urged the Independent National Electoral Commission (INEC) to immediately convene a meeting of relevant stakeholders to address the issue of buying and selling of Permanent Voters Card (PVC) ahead of the forthcoming elections. He also appealed to lawmakers seeking re-election not to see the exercise as a do-or-die affair. “Everything must be done and every sacrifice must be made to ensure free and fair 2019 Elections. INEC is encouraged to engage the parties and be transparent in its decisionmaking. It is important that the people are assured of the Commission’s resolve and commitment to credible elections. “To all Nigerians, I say this: we must have a country after the elections. We all still have to live among ourselves when the polls have closed and the elections are over. The rhetoric leading up to the elections must therefore be mindful of the need for moderation, decorum and respect,” he said.

Osinbanjo sees corporate governance code improving Nigeria’s business climate HARRISON EDEH, Abuja

ice President Yemi Osinbajo at the official launch of the Nigerian Code of Corporate governance 2018 says the Federal government is optimistic of a sustainable business environment with the launch of the code, stating that it will grow investor’s confidence in Nigeria’s business climate. The Vice President, who said this at the unveiling ceremony in Abuja on Tuesday, said the implementation of the Nigerian Code of Corporate Governance 2018 was worthwhile and would promote corporate success and economic growth, lower cost of capital and help minimise wastage, corruption and mismanagement. “The Code has been long awaited, and it is my hope that it will play a unique role in enthroning higher standards of corporate governance and ethical practices in our business environment,

helping to rebuild public trust and investor confidence in the Nigerian economy,” he said. In his remarks at the launch, Okechukwu Enelemah, minister of industry, trade and investment, said global financial crisis had exposed significant shortcomings in the corporate governance of companies, stating that strict adherence to the laid down regulatory procedures would ensure investors confidence was sustained in dealing with Nigerian businesses. “We have seen monumental failures in risk management, a spate of accounting scandals and outright fraud,” he said. Speaking further on the impact of good governance in instilling confidence on the investors, Enelemah said it would also instigate rapid growth in corporate markets, saying, “The investment decisions taken by the local and international investors are stimulated by good corporate

governance practices.” Giving further insight into the code issue, M.K Ahmad, chairman of the technical committee for the review, said, “Corporate governance is supposed to be a key driver in government’s accountability,” saying institutionalisation of corporate governance was key in addressing industry collapse and other key concerns. “If we institutionalise corporate governance, the investors wherever they are will have established confidence in dealing with us, and the overall aim of improving trade and economy would be achieved,” he said. He pointed out that the Federal Government had engaged in stakeholder engagement before comprising of professional institutes, associations, key sector regulators, key industry players, large size companies and medium size companies to ensure we come out with acceptable code of practice.

UBA customers win N30m in ‘Wise Savers Promo’, N90m still up for grabs

an-African financial institution, United Bank for Africa (UBA) Plc, on Tuesday rewarded 20 loyal customers with N1.5 million each in the first edition of its quarterly draw for the ongoing UBA Wise Savers Promo held at the bank’s headquarters in Lagos. A total of N30 million was won by 20 lucky customers who were selected following a draw that was witnessed by key regulatory officials, including representatives of the National Lottery Regulatory Commission (NLRC), Lagos State Lottery Board (LSLB), Consumer Protection Council (CPC), and the media. Anant Rao, Group executive, digital and consumer banking, UBA Plc, said the promo was launched as part of the bank’s initiatives towards prioritising customers, adding that customers who save consistently would be rewarded in order to promote the financial inclusion initiatives of the bank. “We believe it is time we rewarded our customers who have been very loyal over the years. Without them, we would not have made the giant strides attained thus far. Because our customers are invaluable to all that we do, we listen and give them nothing short of the best that they deserve,” Rao said. To qualify for the draws, new and existing customers of the bank are expected to save at least N10,000 each month for three consecutive months, or N30,000 for 90 days in the promo, which will run for the rest of the year. Apart from the N30 million won by 20 customers on Tuesday, another N90 million is still expected to be won by 60 more loyal customers in the remaining three quarters of the year. The winners, who cut across all regions of the country, include Nnadumije Ebube Dawn; Onwochei Christiana Okwukwe; Eze Mathias Nnaji; Christian N Orie; Uka Okwudiri; Okata Stephen Uche; Okafor Onyinye Esther; Nwanekezi Chimezie Jude; Ayomide V Yahaya, and Olanegan Oyetunde Keji.

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Corporate clients beat fears, renew policy despite budget, election concerns MODESTUS ANAESORONYE

gainst the backdrop of heaping concerns over delay in passage of 2019 budget, general elections around the corner and associated economic risks confronting businesses in this new year, corporate insurance clients are said to be living up to expectation in signing for their insurance coverage for the current year. According to feelers from the insurance industry concerning January renewals, corporate clients are taking coverage and paying their premiums, while government, their agencies and parastatal are not forthcoming yet, giving reasons that the budget is still being expected. Currently, insurance companies are engaging their clients and broker partners for the 2019 renewals, with different value propositions for retention and signing of new businesses. Underwriting companies are also busy now lobbing brokers on new accounts and renewal of existing business,

and also signing of reinsurance treaties with major reinsurance companies, both home and abroad. Yinka Adekoya, managing director/CEO, Wapic Insurance plc, says January renewals has not been bad, “we are getting positive responses from our corporate clients. “Yes, the non-passage of the budget is a big issue for the economy because it is when budget is signed that government can spend money and government has a key role to play in supporting insurance.” Adekoya states that the corporate clients are coming irrespective of the economic situation because of the value they attach to their assets. “The country is unpredictable at the moment, but we pray and hope that the election will be peaceful, so that the economy can start running again and government can pay for insurance, particularly that of its employees group life,” a broker says. Tope Smart, chairman, NIA, says the insurance industry is hopeful that the election will be successful so that things can fall in place, saying, “We are hoping that

government will renew its employee’s group life insurance this year because that is a major part of our business.” Federal Government, it would be recalled, did not pay for group life insurance of its employees in the last eight months of 2018 till date, meaning that deceased employee relatives did not get compensation from insurers during the period. According to industry operators, about N15 billion claims were recorded but because government did not pay premiums, such claims were declined. The implication is that the dependants of workers who died when premium was not paid do not have anything to claim from the insurance companies, as there is a ‘no premium no cover’ policy in place. No Premium No Cover, a provision of Section 50(1) of the Insurance Act 2003, states that “the receipt of an insurance premium shall be a condition precedent to a valid contract of insurance and there shall be no cover in respect of the insurance risk unless the premium is paid in advance.”

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The teacher issue in Nigeria’s education crisis

Tunji Olaopa, PhD Olaopa is Professor of Public Administration, Lead City University and is Executive Vice Chairman, the Ibadan School of Government and Public Policy ISGPP tolaopa2003@gmail.com tolaopa@isgpp.com.ng

bdul Kalam once remarked: “Teaching is a very noble profession that shapes the character, caliber, and future of an individual.” This is a sentiment that has become axiomatic in our understanding of teachers and the teaching profession. From Aristotle down to our contemporary age, philosophers and intellectuals hold the consensus opinion that the family remains the fundamental basic unit on which the human society is founded. I doubt that, given Kalam’s opinion, anyone would contest seeing the teacher as one of the defining elements of that society. For instance, it is very easy to see how the teaching profession serves as the very defining source of all the other professions in the society. Gone were those days, I suspect, when the teachers were a definite part of the maturation of their students. The teachers, for most of us, played significant roles which, sometimes, our parents were jealous of. I owe much of my love for education and the reform of the education sector to

my early admiration for a number of my teachers at different levels and most significantly, my celebrated aunt and one of the most outstanding professionals and virtuous teachers in Nigeria that I have ever known - the late Mrs Aime Aina Olaopa (nee Williams). It is through her dedication and professionalism that I developed an abiding respect for teaching as a noble vocation. Mrs Aime Olaopa was from Sierra Leone. She was married to my late uncle, Chief Alfred Adejumo Olaopa in the 50s. Both of them met as undergraduates at the Fourah Bay College. Mrs Aime Olaopa later taught mathematics at St. Anne’s School, Ibadan from the late 1950s to the 1980s before she retired. She later passed on in 1995 at 68. The many generations of her old students I had encountered—Mrs F. F. Ogunlade, former permanent secretary at the Oyo state Ministry of Education; Dr Ngozi Okonjo-Iweala, former Minister of Finance, and many others—all have testimonies about her commitment and how she had greatly impacted their lives and worldviews. Little wonder therefore that when I met my wife who is a trained teacher, it was not difficult for me to nurse the ambition of seeing her incarnate Mrs Aime Olaopa’s legendary qualities. My ambition for her picked up when she started as an education officer in Oyo state before transferring her service to the Federal Ministry of Education. Unfortunately, my wife’s eventual resentment and rebellion against a profession I believe she was born to project as a model of integrity, professionalism and dedication leaves a sore taste in

‘

In Nigeria, certification serves as the final end in the process of molding a teacher for the teaching experience, and this in an educational system that is highly subjected to the vagaries of politics, and where the structures are near arbitrary and even dilapidated

’

my heart, even till now. The bitterness is all the more bitter because I know her resentment is not for the teaching profession, but against the systemic dysfunction that keeps the truly born teachers out of the profession they were meant to uplift. But more than this, it reflects that the teaching profession is bled dry of all those who could have kept increasing its status as a profession for the noble-minded. The cooling of my wife’s passion for teaching speaks glaringly to not only the declining fortune of that profession. More fundamentally, we are confronted by the lamentable loss of a development variable that has remained unharnessed in Nigeria’s development thinking since independence. My reflection today is further heightened by the bittersweet event

of the retirement of my former classmate and boyhood friend, Bolaji Abiodun. LSF Keke, as we all know him, is retiring from the Lagos State Ministry of Education as an indefatigable Director. My friend and I had our little beginning together as young boys with many dreams and hopes. We later reconnected as classmates at the Higher School Certificate (HSC) class at Olivet Heights. LSF later went on to define his life around the teaching profession to which he gave all his life and commitment ending up as the celebrated principal of the RansomeKuti Memorial Junior Secondary School, Lagos. We can indeed commence our reflection about the teaching profession with the example of people like LSF, and the host of others who remained a sad reminder of the development pillar neglected by the Nigerian state in its efforts at nation building. Whether we know it or not, the teaching profession has since lost its glory. Unfortunate for us, however, and this is my argument, Nigeria’s predicament can only begin to be resolved if teaching as a profession is redeemed. Many developed nations across the world have come to this realization. Today, for instance, we are daily informed about the education miracle that the Scandinavian countries are becoming. This is especially most true about Finland. The secret is that most of these nations recognize the fundamental place of human capital development in national development. And what better place to recondition the link between education and development than through the transformation of teaching as a development-defining profession?

As the head of the Policy Division in the Federal Ministry of Education in years 1999 to 2002, I came to a very deep understanding of the myriad of issues that internally frustrate the teaching profession and undermine its potential as a source of human capital development. All over the world, education is recognized as the key to development. It is a solid educational dynamics that anchors the human capital which the state harnesses for its material and national development. The 1990 Jomtein World Declaration on Education for All; Article II of the Declaration states categorically: “To serve the basic learning needs of all requires more than a recommitment to basic education as it now exists. What is needed is an “expanded vision” that surpasses present resource levels, institutional structures, curricula, and conventional delivery systems while building on the best in current practices.” The Universal Basic Education (UBE) commenced in Nigeria in 1999. This scheme was calculated to meet the Article I of the Jomtein Declaration which declares that “Every person - child, youth and adult - shall be able to benefit from educational opportunities designed to meet their basic learning needs.” Thus, apart from the Early Children Care and Development education which takes care of children from age 3 to 5, there is also a framework that takes care of children from age 6 to 15.

al-Adawiya Square in Nasr City, Cairo Governorate, which surrounds the Rabaa al-Adawiya Mosque, where a sit-in was held by the Muslim Brotherhood and its supporters to celebrate the one-year anniversary of Morsi’s inauguration. The sit-in lasted for about forty days before it was dispersed by security forces, leading to clashes that resulted in 638 deaths, of which 43 were police officers. Supporters state that the gesture is used to express solidarity with what they call “the thousands wounded, killed and burnt by the Egyptian Army” during the dispersal of their sit-in. The origin of the sign is unknown. Critics of the Muslim Brotherhood and the Morsi Government allege that the sign implies indirect support for terrorism, due to the sign’s use being mostly limited to persons supportive of the Brotherhood, which has been designated a terrorist organization by Egypt. On the other hand, supporters of the Brotherhood, whether inside or outside Egypt, believe the gesture represents freedom and persistence. They also deny any association with terrorism. Egyptian and non-Egyptian politicians, mostly supportive of the Muslim Brotherhood, are regularly seen making the Rabia gesture, which is identical to one common gesture for the number four. Among

these politicians is Turkish President RecepTayyip Erdogan.” The gesture according to Wikipedia “is identical to a gesture for the number four, and is made by raising four fingers of either hand (preferably the right hand) and folding the thumb.”In my opinion, the Rabba sign could be adjudged closer to the Black power sign and President Buhari’s sign is clearly not the same sign or am I missing something here? Dr. Fasan’s claim that President Buhari’s sign is the same as the Rabba sign is false and he should please come out boldly to retract the article. Dr. Fasan’s article has the potential to raise religious tension in an already tense country. President Buhari’s sign is not the same as the Rabba and I am sure Dr. Fasan knows this but for reasons best known to him he went ahead to publish this falsehood. I am sure there are those who will disagree with the classification of the Muslim Brotherhood as a terrorist organization but let us leave that for another day. The Editorial team at BusinessDay needs to do some fact checking before publishing stories, even from highly qualified individuals. #nomorefakenews!

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Dr. Olu Fasan got it wrong (Part 1)

Olumayowa O. Babatunde Babatunde is a sales & marketing professional residing in Lagos

read Dr. Olu Fasan’s lengthy opinion on the backpage of Businessday of 14th January 2019 “Buhari is Nigeria’s most arrogant yet inept leader”. It is clear Dr. Fasan has his mind made up on President Buhari’s performance or lack thereof. That such an article was written should be an opportunity for the President and his communication team to look inward and communicate the Presidents achievements better, sadly they are unlikely to do that as they struggle with selling a candidate who is not eager to be sold. That said, Dr. Fasan committed a grave error in his article and I would like for the records to be set straight regarding the highly infectious double 4 fingered sign to which Dr. Fasan is quite irritated by. According to Dr. Fasan, he gave two reasons for his irritation. First he views the sign as pre-

sumptuous and arrogant. He goes on to state the Buhari presidency has been internationally-adjudged to be a failure even though he didn’t provide any proof to support this international judgement. Dr. Fasan expects President Buhari to show humility in asking to be nominated and sees the continued raising of the double 4 fingered sign as arrogance on the part of the President and his supporters. He ends by saying it is provocative and insensitive! Personally I do not find the sign presumptuous or arrogant and definitely do not see the provocation contained in the double 4 fingered sign. The President is seeking re-election, he has a base of support and I believe he was communicating to his base. I will leave the President’s men to defend their candidate and to tell Dr. Fasan all the good things he is doing or has done. I encourage all other candidates to come up with their own signs and get their own bases fired up! On the issue of humility, I am not sure there is an existing humility template for Nigerian politicians and would have expected Dr. Fasan to give us some examples and help the President be more humble. Dr. Fasan further painted a disastrous outcome for Nigeria if President Buhari is re-elected and ended this section by saying “anyone expecting a miracle from a Buhari second term is living in

cloud-cuckoo-land”. Well as for me I am under no illusion that President Buhari is a miracle worker, I have seen no record of any miracles happening in Daura or Abuja so I think my expectations are firmly earthly. I really do hope the President’s men can respond to Dr. Fasan’s article with facts and not the DSS! What worried me the most about Dr. Fasan’s article was his assertion that President Buhari’s double 4 fingered sign is the same as the 4 fingered Rabaa or Rabbi’ah sign of the Muslim Brotherhood, who according to Dr. Fasan, is an Islamist group accused of terrorist activities..That hit me like a molue! According to Wikipedia and I quote “Rabaa or Rabbi’ah sign (/’ra:b(i)ə, ræ-, -bɑː/; Egyptian Arabic: [ˈɾɑbʕɑ]; sometimes stylized as R4BIA) or, less commonly, Rab3a, is a hand gesture and a sign that first appeared in late August 2013, thought to be originated from Turkey[1] and used in social media and protest marches in Egypt. It is used by the Muslim Brotherhood and its supporters in Egypt in the wake of the overthrow of Mohamed Morsi, which occurred after anti-government protests calling for his removal. On July 9, 2014, a Brotherhood-affiliated organization declared August 14, the day when the sit-ins were dispersed, “World Rabia Day,” in an attempt to garner support across numerous countries. The sign is named after the Rabaa

Olumayowa O. Babatunde Writing from Lagos.

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comment Positive Growth with Babs

Babs Olugbemi Olugbemi FCCA, the Chief Responsibility Officer at Mentoras Limited and Founder, the Positive Growth Africa. He can be reach on babs@babsolugbemi.org or 08025489396.

common question I have asked all my coaching clients since the year began is: what do you desire in 2019? From all the responses, I can see the desire to live a fulfilled life in most of the respondents. Some people want to get fulfillment from their job and career, some want a happy home and relationship with their partners while others wish the company they work for and the country they live in is better than it was in 2018. I have always asked my clients and protégés to start the year with why. Why are you in 2019? What will you do to make you deserve what you have desired for the year? In most cases, life will give us what we deserved and not necessarily our desire. Desire is, however, the basis for the discipline to take action that will make you deserve your desire. Looking for fulfillment is as old as the journey of life itself. People change career, partner, relationship, location and many more in finding fulfillment in life. Fulfillment is an inner desire supported by the sense of achievement or contentment for something. Fulfillment is key for you to consider this year one

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Take the lead of the best years in all aspects of life. At old age, a memory devoid of fulfillment is an indicator of a life not lived to the fullest. Personal fulfillment is key to community, organisational and national fulfillment. A country with high per capita income (PCI) can be said to be more fulfilled in general terms than those whose PCI is among the lowest in the world. Individual fulfillment is so important that the World Happiness Report is now a source of policy idea for some countries where the fulfillment of people is seen as national productive asset. Nigeria ranked 91st out of 156 countries behind Libya, Algeria and Morocco in the 2015-2017 Ranking of Happiness. The individual must be happy before the family, society and the country can be ranked as happy. Individual who want to be happy in 2019 and beyond must take the lead. To take the lead as noted in my book is do things that fulfill you aside from things that only give you income. I have used the lead as an acronym for live, energise, activate and develop the fulfillment centre in people. The fulfillment centre is simply in activities that fulfill an individual and gives him a sense of satisfaction. The foundation of the activities that will make life meaningful to you is your talent. Talent is not a big mountain no one can climb. It is simply any activity you love to do repeatedly with a sense of satisfaction at the end of it. An employee that found his fondness for two out of six of his deliverable activities at work has found gold. All he needs is to do more of such activities voluntarily for the workplace or at any opportunity. If perhaps, the activities that fulfil you are outside

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Individual fulfillment is so important that the World Happiness Report is now a source of policy idea for some countries where the fulfillment of people is seen as national productive asset

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your required job functions, the activities are latent talents to you and must you use them to avoid dissatisfaction. The best way to avoid turning your talents into toxic assets is to use them voluntarily. It is therefore in your best interest to volunteer your talents in the workplace whether you are being measured by them nor not. If you do this in 2019, you will be operating in your strength zone at work, enjoy your daily routines and merge your responsibility with your desire to be free and fulfilled. The research work of the Gallup group advanced the need for individual fulfillment and its relevance to organisations and nations. Marcus Buckingham and Donald Clifton identified four traces of talents in the book, Now Discover Your Strength. These indicators are a spontaneous reaction, yearning, rapid learning and satisfaction. I explained how to use these four indicators to maximise your efforts this year in the book, Take the lead with a subtitle,

how to live, energise, activate and develop your strength zone. If the collective fulfillment of individuals makes great organisations and countries, there must be roles for business entities and sovereign nations in increasing people’s happiness and increasing the real wealth of societies. Business organisations have people as their major assets for achieving the stakeholders’ objectives. Organisations are therefore encouraged to develop a culture where people are engaged in activities that play into their strength zones. If employees do what is within their strength zones, unnecessary costs of attrition, recruitment, illness and customer service failure will be avoided. It is obvious you cannot play every employee in their strength zone, otherwise, the majority will not be in sales or some of the difficult areas in an organisation. In as much as this is true, a forward-looking organisation will create a culture and an environment where the use of latent talents will is encouraged and rewarded as long as there is no conflict of interest with the stakeholders’ objectives. It is short-sightedness for companies to desire people happiness and limit the inner resources of its people to do other things. I was once castrated for daring to authored books by a C-level executive of an organisation even without conflict of interest and when the skills were also deployed to the advantage of the company. Allowing your employees to volunteer and express their innate skills is another form of job enrichment that brings more to your brand and customer service excellence. Nigeria as a community and nation has a huge role to play in increasing the happiness of

her citizen in 2019 and beyond. Our reward system needs to identify people who do things for the society without intended personal gains. Such people should be recognised more than the political office holders who have the electorates’ mandates to use the country resources on their behalf. We should encourage collectivism by doing things that will increase the happiness of others who have no capacity to reward us. One of the ways the government can take the lead and support the citizens desire to be fulfilled this year is for the political class to ensure the elections are without the usual bloodbaths. A peaceful transition without the memory of the loss of loved ones due to election violence will encourage the citizens to be committed to their personal contributions to the country. Whether or not there is going to be a change of government at any of the tiers of administration, the happiness of the people is paramount. I will conclude the way I started. Your fulfillment as individual member of the society is in your hands. There are reasons you made it to the new year and you must be guided by the reasons. Start with why! Starting with why is to make this year a defining year for you. The country is waiting for your best. Your best is your contribution that is not devoid of personal fulfillment and the support for others to find their path. To take the lead is, therefore, to invest in yourself with the aim of developing your talents to become strengths. You can live a happy and abundant life if you intentionally operate in your strength zone in 2019.

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US-China trade war and the downside of globalization

Onyinyechukwu Mbidom Mbidom is an economist and writes from Lagos. dropby_one@yahoo.com

lot of uncertainties have gone into the year 2019 due to global economic slowdown, downward trend of oil price and the impact of US-China trade war and in Nigeria we have the upcoming elections. Uncertainty is definitely not a word anyone will like to hear especially in the business world. Uncertainty many at times leaves you with almost no clue as to what next step to take. Businesses will be seen treading softly while consumers will be spending less in order to curtail cost. It is however vital that a position be taken. A World bank report, Global

Economic Prospects, The Turning of the Tide? stated that the U.S import tariffs and China retaliatory response will likely translate into economic losses for exporters of the targeted products which could also affect upstream suppliers, downstream industries and consumers. Additional measures by these two economies could affect a much broader list of products and cause significant harm to global value chains, which would imply cascading trade costs and accentuate welfare losses. Given their major role in the global economy, a trade war between the US and China would result in significant spillovers for the rest of the world through trade confidence, financial and commodity markets channels. The report also stated that the risk of increased trade protectionism could lead to cumulative trade loss equivalent to those experienced during the global financial crisis of 2008-09 with particular severe consequences for Emerging Market and Development Economies (EMDEs) as a sudden tightening of global financing con-

ditions would leave highly indebted EMDEs vulnerable, with rising debt service costs hampering investment and heightening financial stability risk. The report advised that in the EMDEs, monetary and fiscal buffers need to be rebuilt in order to prepare for monetary tightening in advanced economies and restore the scope for policy support against negative shocks. Rising global interest rate may heighten corporate vulnerability and raise EMDEs debt service cost and fiscal sustainability gaps. I would say that this is one of the side effects of globalization as any negative impacts causes a ripple effect around the world since the world has become so integrated. Technology has further made the world a global village. Protectionism, being an economic policy of restricting imports from other countries through methods such as tariff on imported goods, is intended to protect local business and jobs from foreign competition and boost one’s economy. When tariff is placed on goods, they become expensive and people do not tend to buy them. It is obvious that U.S

is trying to protect their economy as President Donald Trump has said time and again, how their economy has been taken over by foreigners especially China. He has gone ahead to impose tariff on products such as solar panels, steel, aluminum, and proposed to impose on over 1,300 categories of Chinese imports. China responded by imposing tariff on 128 products it imports from US. Talk about protecting your own first above the hurts other nations may be experiencing.But then again is it just a ‘get back on China for past years’ plan or to actually protect the economy from importation? It is therefore imperative for an emerging market like Nigeria to continue to take proactive positions rather a than reactionary one towards these threatening global shocks seeing that we are high in debt, high in importation, highly dependent on Oil and our exports have not grown enough to topple the contribution of Oil to GDP. We must continue to grow domestic market side by side with importation. How possible that is depends on how committed we are to that

cause. Most of the necessities for our daily lives today are imported as people tend prefer foreign made goods over local because of the belief of its quality and superiority over locally made ones and these that locally made one are not readily available. Then there is the question of cost as it may be cheaper to purchase foreign goods than local one but it no longer remains cheap if negative global financial conditions hit. This belief of quality and superiority has eaten deep into the fabric of the nation so much so that it is going to take hard work, consistency, innovation, ingenuity and setting good examples by the government and this citizenry to change this perception. We too must protect our own. It is the basic natural thing to do, which in the long run will be of immense benefit to us as a whole. 2019 may seem challenging but it is still pregnant with a whole of opportunities giving us a fresh canvass to write our own economic story. Against all odds we can still come out unscathed.

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Transportation in a megacity

lanning for future needs of the society is the hallmark of an effective government. It ensures the orderly growth, progress and development of the society with few discomforts and disruptions. However, there are other societies that have no business with planning and are always reactive to problems. Planning is alien to them and even if, for political or publicity reasons they draw up a plan, the plan ends up just as a plan and never gets implemented. Sadly that is the case with Lagos, which frequently claims to harbour the dream of becoming a mega city, like New York, Vancouver, Tokyo, Moscow, Los Angeles, Cairo among others. Of course, one of the major problems of all megacities is that of transportation and traffic management. These cities therefore have transportation master plans to help them organise effective and efficient transportation for millions of the city’s dwellers to prevent unnecessary sufferings and loss of man-hours resulting from traffic congestions. Lagos, the most populous city in Africa with an estimated population of over

20 million, is renowned for its severe and business-crippling traffic congestions. It is estimated that the state loses over N250 billion to traffic annually. Hence the decision of the state government to come up with a transportation master plan as far back as 2006 to provide a framework for the effective management of transportation in Lagos state. The transportation master plan aims to integrate road, water, rail and cable car mode of transportation to end the city’s transportation woes. The key however, was known to be the rail transportation system. Captured under the Integrated Rail Transport System, the plan was to link the major population and activity centres in Lagos state under seven lines. These include: Red line from Agbado to Marina (31 kilometres long), Red Line extension (6 kilometres) to local and international wings of the Murtala Mohammed International Airport, Lagos, Blue Line on Badagry Expressway from Okokomaiko to Marina via Iddo (27 kilometres), Green Line from Marina to the proposed Lekki Airport (26 kilometres), Yello Line from Otta (Ogun state)/MM Airport to Iddo (34 kilometres), Purple Line – from Redemption Camp (in Ogun state) to Lagos State University, Ojo

(60 kilometres, Orange Line – from Redemption Camp to Marina (42 kilometres), and the Brown Line – from Mile 12 to Marina (20 kilometres). However, the huge financial outlay forced the Lagos state government to prioritise the project and begin with the 27-kilometre Badagry line running from Okokomaiko to Marina via Iddo. The contract was awarded to the Chinese Civil Engineering Construction Company (CCECC) in 2008 at the cost of $1.2 billion and was to be due in 2011. However, since then, the delivery dates have continued to shift right. From 2011 it was shifted to 2012, then 2013, then 2014, all to no avail. Upon the inception of the Ambode administration, the governor himself promised that the line will be completed in December 2016. But just like before, a month to the completion date, the government or its minders again have said it could not be completed at that date and cited financial and other logistical reasons the for the delay. The government has been at pains to stress that it is yet to secure the buy-in of the private sector and investors in the project. But how would right-thinking investors invest in a country where policy summersault is the norm? If the Lagos state government, despite all the efforts it took it

to negotiate the Lekki-Epe Expressway road project could still turn round and buy back the concession, what assurances can it provide to investors that their investments are secure from government flip flops? Truth is; due to policy flip-flops, discontinuities and reversals, the country has become one of the riskiest place to invest and investors are now preferring other low yields but with stable and predictable policy environment. To further deepen the pains of already pulverised people who spend a chunk of their time on traffic gridlocks daily, the Lagos state commissioner for transport sometime back announced that the full implementation of the Lagos State Strategic Transport Masterplan (STMP) has been postponed from 2020 to 2030. He said the postponement was to perfect plans for the project and to allow all mass transit schemes to take off. What this means in simple language is that this administration is not ready to implement the transport master plan and the residents of the state will have to continue to endure the terrible traffic gridlocks until a government willing to implement it comes on board. So much for the often trumpeted megacity status of Lagos!

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Akeredolu lifts widows of slain soldiers with N3m each YOMI AYELESO, Akure

Augustine Agudu, commander, Operation Safe Haven in Plateau, (m) interacting with some women during a stakeholders’ peace meeting between the Fulani and Berom communities in Barkin-Ladi Local Government Area of Plateau on Tuesday. NAN

Anambra: Obiano mobilises contractors with N10bn

nambra Government has mobilised contractors with N10 billion to asphalt various road projects across the state before the rainy season. The state governor, Willie Obiano stated this during an inspection of road projects leading to Amansea -Unizik Road, Awka. Obiano urged contractors handling road projects in the state to accelerate work, as there would be strict monitoring to ensure prompt delivery. He also directed the commissioner for utility, Obi Nwankwo, to facilitate the installation of street lights, so as to check

molestation in areas already designated for the project. The commissioner for works, Marcel Ifejiofor, gave assurance that all ongoing road projects in the state would be delivered according to specifications. He urged the contractor handling Unizik Road, Awka to deploy professional expertise in handling the project due to the importance of the road to students and the community. Meanwhile, Obiano has assured of beefing up security at the Nnamdi Azikiwe College of Health Sciences, Okofia Otolo, Nnewi. Obiano stated this when he visited the

ongoing construction work at the College Road, Nnewi. The governor said the road, when completed, would have facilities like streetlights to ease traffic congestion in the area. He said his administration would continue to renovate dilapidated roads in Nnewi and complete the College Road before the commencement of the rainy season. The contractor handling the project, John Arachie, explained that the construction was in three segments adding that one segment was 2.1 kilometres leading from Awka Etiti to Isseke.

Ekiti: Police arrest killers of lawmaker RAPHAEL ADEYANJU, Ado Ekiti

he police in Ekiti have arrested a six-man robbery gang that allegedly killed Michael Ade deji, a member of the Peoples Democratic Party (PDP) in the state House of Assembly. Adedeji, who until his murder was representing Ekiti Southwest Constituency (II), was shot in the head by the hoodlums on August 10, 2018. The suspects who were paraded on Tuesday by Asuquo Amba, the Commissioner of Police (CP) in Ekiti, include Dele Obamoyegun, Idowu Sunday, Adeniyi Wumi, Leye Ojo, Akindanhunsi Damilola and Olaosebikan Babatunde. The bandits, according to Amba, allegedly killed one Kayode Omowaye when they raided OJAS Pleasure Hotels in Oye Ekiti on August 10, 2018. Exhibits recovered from the bandits include cut-to-size barrel guns, 17 live cartridges, 75 handsets, seven laptops, cash sum of N147,000, four stolen ve-

hicles, one of them belonging to the late Omowaye. The CP said the suspects were arrested by men and officers of Federal Special Anti-Robbery Squad (FSARS) during a stop and search operation along Ado-Iworoko road. When interviewed by newsmen, the gang leader, Obamoyegun confessed to the crime, saying: “We shot him (Adedeji) after robbing him. He did not struggle with us but one of us shot him. I have to confess; we didn’t know he was a lawmaker.” The CP said that the gang also invaded Afe Babalola University junior staff quarters and snatched a car belonging to one Bosede Ojo. He said that most disturbing was that Dele’s mother, Bola Obamoyegun was the one accepting and concealing stolen items for the gang led by his son. “Dele’s mother was the one concealing stolen items for them. As we speak, two of her children had earlier been convicted for robbery and this to

us was a failure of motherhood. “Our parents must learn how to make their children responsible.” Amba hinted that the command was synergizing with the army and other sister security agencies in the state to ensure that all the border towns were safe for the citizens. “We held a meeting with hunters, members of vigilante groups and Odua People’s Congress (OPC) on intelligence gathering and information flow on how to curb kidnappers in Ekiti.” Amba said that the new security architecture in form of effective 24-hour patrol would soon be put in place to make Ekiti unsafe for criminals. “We are working with the Commissioners of Police in Osun, Kogi, Ondo, Kwara and other border states so that our people can live in peace. “Very soon, we are going to invade some of the forests in the state together with other security agencies to flush out those who have been kidnapping our people,” he said.

elief came the way of some widows of fallen soldiers in Ondo State, as Governor Oluwarotimi Akeredolu distributed micro-credit of N3 million to each of them. The benefitting widows were wives of soldiers from the 32 Artillery Brigade, Owena Cantonment, Akure, who lost their lives in the war against the Boko Haram sect. The governor also doled out a cash gift of N100, 000 each to 30 widows of the fallen heroes from the cantonment, with a promise that his administration would continue to put smiles on the faces of the dependants of the fallen heroes. Akerdolu, who gave cheques to the dependants of the dead soldiers at the parade and wreath-laying ceremony of the 2019 Armed Forces Remembrance Day, held in Akure, the state capital, said the token was to cushion the problems engendered by the unfortunate losses. He added that no amount of money could replace the lives of the dead soldiers, and called on individuals and corporate organisations to assist in bringing smiles to the faces of vulnerable families because of the loss of their breadwinners. The governor also donated an operational vehicle to the Nigerian Legion in the state, in fulfillment of his promise to the demands of the Legion. While highlighting the steps taken so far by his administration to ensure security of lives and property in the state, Akeredolu said, “I want to seize this opportunity to thank the security agencies for their efforts in providing security in the state “Recently, Operation Egwu Eke III was launched in the state to address our security challenges. This was not unconnected with the incessant cases of kidnapping, armed robbery and ritual killings in parts of the state, “I want to thank the brigade commander and his officers and men for their gallantry. We have started to see the effect of this exercise as all these crime prone areas have been quiet of late,” he said.

Fire destroys properties in Zamfara

amfara State Emergency Management Agency says two major fire incidents, which occurred early this year destroyed houses worth millions of naira in Gusau. The executive secretary of the agency, Sanusi Kwatarkwashi, disclosed this in Gusau saying that the incidents occurred on January 11 and January 12 respectively. He said that the houses razed by the fire incidents belonged to one Nuhu Anka, managing director, Zamfara Radio and Television Services and Hadi Sulaiman, the executive secretary of the state Qur’an and Tajweed Board. “We thank God, that the fire did not record any death or injury but all the houses were destroyed completely,” he said. “We visited the houses to assess the level of damage, at Malam Nuhu Anka’s house, we valued the loss to about N11 million, while at Hadi Sulaiman’s house we valued the loss to about N7 million. “We have already compiled our reports and submitted to the state government to assist the victims,” he said. He described the incidents as unfortunate and urged the victims to consider it as a test from God. NAN

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BUSINESSTRAVEL Turkish Airlines reached the 80.2% load factor in December 2018 Stories by IFEOMA OKEKE

urkish Airlines has recently announced its passenger and cargo traffic results for December 2018, reached 80.2percent load factor in that month. Growth in the number of passengers, revenue per kilometer and load factor, is an important indicator of the continued growing interest in Turkey and Turkish Airlines at the end of the year as well. According to the December 2018 traffic results, total number of passengers carried went up by one percent, reaching 5.5 million passengers, and the load factor went up to 80.2percent. In December 2018, total load factor improved by 0.5 points, while international load factor increased by 0.5 points to 80percent, domestic load factor reached to 84percent. International-to-international transfer passengers (transit passengers) went up by three percent approximately, while the number of international passengers -excluding

international-to-international transfer passengers (transit passengers)went up by eight percent. In December 2018, cargo and mail volume continued the double digit growth trend and increased by 20 percent, compared to the same period of 2017. Main contributors to this growth in cargo/mail volume are North America with 33 percent, Africa with 33 percent, Far East with 17 percent, and Europe with 17 percent increase. In December 2018, Africa showed load factor growth of 2.5 points, while North America, Far East and the Middle East showed load factor growth of one point. During January-December 2018, increase in demand and total num-

ber of passengers was 10percent, over the same period of last year. Total number of passengers reached to 75.2 million. During January-December 2018, total load factor improved by three points up to 82 percent. While international load factor increased by three points reaching 81 percent, and domestic load factor went up by one point reaching 85 percent. Excluding international-to-international transfer passengers (transit passengers), the number of international passengers went up significantly by 12 percent. When compared to 2017, cargo and mail carried during the year 2018 increased by 25 percent and reaching to 1.4 million tons.

Air Peace launches Port Harcourt NAF base flights

est Africa’s leading airline, Air Peace has announced plans to commence daily flights into the Nigerian Air Force (NAF) Base in Port Harcourt, Rivers state. The airline, which slated its maiden flight for January 18, would operate from OAS Terminal at the base with state of the art facilities. A statement issued by Chris Iwarah, the airline’s corporate communications manager, confirmed that the airline would operate from the Murtala Muhammed Airport domestic terminal (MMA2), Lagos and the Nnamdi Azikiwe International Airport, Abuja into and out of the Port Harcourt NAF Base. The operations, he said, would be managed by the carrier’s subsidiary, Air Peace Hopper as part of its no-city-left behind project, targeted at connecting underserved and unserved domestic and regional routes. “We are delighted to announce the commencement of our flight operations from the Murtala Muhammed Airport 2, Lagos and the Nnamdi Azikiwe Airport, Abuja to the Nigerian Air Force Base, Port Harcourt, Rivers State starting from Friday, January 18, 2019. “Our valued customers had yearned for the extension of our flight operations to the Port Harcourt NAF Base and we are quite pleased to respond to their request to enter the route,” the airline said. Evarest Nnaji, the managing director and CEO of OAS Helicopters,

which operates the OAS Terminal, said the new terminal was designed and delivered to support airplanes and helicopters for oil and gas flight operations. “It was designed and delivered with the sensitivity and stringent standard associated with oil and gas aviation security and safety in mind, taking into account the reliability and predictability desirous of a facility that supports 24/7 high net worth operations,” he said Nnaji explained that Air Peace is accommodated in the facility in order to enhance the movement of oil and gas workers to and from different parts of the country to the base. “First we conceived a large facility capable of supporting operations way more than we expect to utilise in near future; we therefore have enough space to share. Second, oil and gas operators seem very comfortable with Air Peace

judging the number of expatriates you see on Air Peace flights, so when they approached us to use the facility we had no problem accommodating that, and I think they are happy. The facility is the best you can find around here as it meets all international oil and gas aviation standards which is usually way higher than regular commercial aviation,” he said. The MD/CEO also said that the facility is still expanding as OAS expects to, within the next 24 months, install a state-of-the-art new generation helicopter maintenance hangar, which, according to him has not been found anywhere else in Africa. “We have not been talking about this because OAS business model will remain on simple achievement milestone, showcasing our mileage of achievements as we accomplish them. That to me is more dignifying,” Nnaji added.

Emirates extends baggage allowance to Dubai shopping festival shoppers

hoppers can fly higher with this year’s Dubai Shopping Festival (DSF) thanks to a special offer from Emirates. Economy class ticket holders can enjoy additional baggage allowance on return flights during the biggest shopping festival of the year, running until 2nd of February. Emirates passengers booked on an Economy class round-trip ticket to Dubai can shop without limits and return home with the latest fashion bargains at no extra costs incurred, affirming Dubai Shopping Festival as the city’s most generous mega sale. Jet setters returning to Emirates destinations in Canada, North America, Central America, South America or Africa can go home with one extra piece of luggage. Those travelling to other destinations within the Emirates network can take advantage of an additional 10 kilograms baggage allowance. The offer is applicable on bookings made from 17 December 2018 until 2nd of February 2019, for return travel between 26 December 2018 and 4th of February 2019. Mohammad Al Hashimi, Emirates’ vice president, commercial products Dubai, said: “In celebration of the Dubai Shopping Festival 2019, we are very pleased to announce our excess baggage offer, encouraging visitors to Dubai to take full advantage of the attractive dis-

counts during the 6 week super sale. There’s something for everyone to splurge on this New Year and enjoy the Emirates’ additional baggage allowance on the return trip home”. Running from 26th December to 2nd February, Dubai’s biggest shopping event will feature over 700 brands participating at 3,200 outlets across the city, with deal-hunters able to enjoy up to 75 percent off a wide range of products during the five-week sales. Commenting on the offer, Ahmed Al Khaja, CEO, Dubai Festivals and Retail Establishment, an agency of Dubai Tourism, said: “Dubai Shopping Festival is one of the most popular events in the Retail Calendar; attracting tourists from around the world with unbeatable offers and world-class entertainment. We are grateful to Emirates for giving visitors even more reasons to shop and make the most of this year’s edition, which has been extended for an extra week to offer plenty of opportunities and time to shop and win.” In addition to the series of incredible sales and promotions, DSF will offer an extensive line-up of exciting events and activities for residents and visitors to choose from including concerts by music icons and free-to-attend family-oriented activities in malls and activations by leading brands.

Dana Air supports NGO to raise over six million for cancer patients

ana Air has supported a Cancer-fighting nongovernmental organization – Project PinkBlue, to raise over six million naira to support people impacted by cancer and treatment of two cancer patients at a music and comedy fundraising recently in Abuja. According to Runcie Chidebe, the executive director of Project PinkBlue, “Our plan was to raise 100 million to support 56 cancer patients in Nigeria, however, we raised N6million plus. Yes, we didn’t meet our milestones, but, I am extremely happy that we have used the ‘Show Love’ event to express our commitment to support people impacted by cancer. With the donations we just paid for two patients’ treatment, one was for radiotherapy N600,000 and another chemotherapy. As people are redeeming their pledges, we would be getting them on treatment gradually. “With the support of companies like Dana Air, Ministers, Senators, Celebrities and individuals here

present, we are hopeful of meeting our target. I want to also specially thank Dana Air for consistently supporting us since 2015. Dana Air has shown that everything is possible and we are grateful and urge other corporate bodies to emulate the commitment and consistency that Dana Air has demonstrated in this fight against cancer.” Also commenting on the gesture, Kingsley Ezenwa, the media and Communications manager of Dana Air, said, “We are glad to have impacted these patients positively and we hope to do more. We have been supporting initiatives like this since we started operations ten years ago and have touched the lives of many. We believe that a person must be healthy to be able to eat, read, work, and function well in the society and as you also know, health is wealth.’’ Dana Air recently celebrated 10 years of service to Nigeria. The airline is one of Nigeria’s leading airlines with daily flights from Lagos to Abuja, Port Harcourt, Uyo and Owerri.

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NOVA Merchant Bank boosts staff morale with promotions

Pg. 17

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

OIL & GAS

The Dangote link and why Otedola is divesting from Forte Oil OLUFIKAYO OWOEYE

t is no longer news that Forte Oil, an indigenous oil and gas company has announced the divestment plan by its majority shareholder led by billionaire businessman, Femi Otedola. In a notice sent to the exchange dated 24th December 2018, the majority shareholder, Femi Otedola has reached an agreement with Prudent Energy investing through Ignite Investment Commodities Limited to divest his full 75% in the company’s downstream business. According to the release this is to allow Otedola to explore and maximize business opportunities in refining and petrochemicals. Otedola and Africa’s richest man, Aliko Dangote are reported to be in partnership for the construction of a $12 billion naira, 650,000 barrels per day Dangote Petrochemical Refinery in Lekki, Lagos. Although, the price at which the billionaire businessman is selling his stake in the oil company is still unknown this it is now a source of concern to many equity holders in the company. In the view of Paul Okon, a Stockbroker, “If the share price at which Otedola is divesting is higher than the current share price, then it is good for the market. If it is lower, the market will tilt towards the price.” A peep into the directors’ interests as at December 31, 2017, shows that Femi Otedola directly holds 186million units in Forte Oil Plc while he indirectly holds 838 million units. Forte oil shares rallied after the announcement, as the share price gained 9.95 percent in three days to N34.35 from N31.25 when the announcement was made. The share price has however dropped slightly to N29.00 at the close of trading today. The many troubles of Forte Oil Last year the energy firm

announced the decision to sell its upstream services and power business in Nigeria and also divest from Ghana and focus on its core fuel distribution operation in the country. The sale of its Ghana operations did not come to many as a surprise. The Ghanaian operations have been insignificant at both the top and bottom lines. AP Oil and Gas Ghana accounted for just 0.9% of the Group’s revenues of N148.6 billion in 2016 and 3.6% of Group revenues of N129.4 billion in 2017. The Ghanaian segment made a loss before tax of N59 million in 2016, and a profit before tax of just N29 million in 2017. Forte made an equity investment of N670 million in AP Oil and Gas Ghana, in addition to cumulative preference shares worth N424.9 million. Interestingly, before the decision to put the Ghanaian subsidiary on sale, the company had taken several impairments on its investment. Impairments of N547 million were taken in 2016 and N410 million in 2017 respectively. Conversely, its decision to offload its stake in Geregu Power Plc came to many as a huge surprise for an energy company that had in the past pride itself as a leading integrated energy company. Also, its Gross Profit margins from Geregu has been quite impressive at between 35% and 40%. It would be recalled that Forte Oil owns a 57% of Amperion Power Distribution Limited, BSG Resources Limited owns 38%, while Shangai Municipal Electric Power Company (SMEPC) has a 5% stake. Amperion Power Distribution Limited, in turn, owns 51% of Geregu Power Plc. In effect, Forte owns about 29% of Geregu Power Plc. Amperion completed the acquisition of a majority stake in the Geregu Power plant for $132 million in August 2013. The company has since invested funds into rehabilitation of the plant. As at 9 months ended 30th September 2018, the Group has a long-term loan of N11.4 billion

for its acquisition of the Geregu Plant through Amperion. Will Forte’s plan to focus on downstream segment pay off? The Downstream industry is the portion of the oil and natural gas industry that is responsible for the refining, distributing, and retail of petroleum products. Forte has one of the largest networks of petrol stations in the country with over 500 retail outlets across the country this serves as an advantage in a country of 190 million people, many are dependent on petrol for running their cars and generating sets. The company also has two storage depots, five aviation fuel depots, and a lubricant blending plant. It recently acquired rights to distribute Chevron’s Havoline Motor Oil which is expected to help boost its Lubricants and Greases division valued at about N12 billion Figures from its revenue segment for the 9 months ended 30th September 2018 shows that revenue surged by 42.5% from Fuel segment at N86.67 billion, as against 60.82 in corresponding period in 2017, Revenue from Lubricants and Greases is put at

10.11 billion compared to 9.08 billion at corresponding period in 2017 an increase of 11.3% while revenue from its power generation dropped slightly by 4% from 25.45 billion in 2017 to N24.39 billion in 2018. In Nigeria, Petrol prices are regulated by the Federal Government through the Nigerian National Petroleum Corporation (NNPC). The Buhari administration in 2015 increased the pump price of petrol from N86.50 to N145 per litre. A combination of the depreciation of the naira against the dollar, as well as rising crude oil prices, mean that petrol landing prices have since gone up. The government has however been reluctant to increase pump prices once more to avoid a populist backlash. This has left the NNPC as the sole importer, even as it racks huge losses. The government has also been reluctant to use the term, ‘subsidy’ preferring to call it an under recovery. Downstream players continue to be owed by the Government through the PPPRA. Q1 2018 results by the company show that it is owed N18.8 billion by the Petroleum Support Fund (PSF). Post-May 2019,

the government could decide to increase pump prices again, to enable major marketers to begin importing again. Till then, most downstream players will continue to struggle. What should investors do with the arrival of new core Shareholder Paul Okon, a stock broker, expressed worry over the technical know-how and financial capability of the new core investor Prudent Energy noting that investors would be cautious in the coming weeks as events unfold. How efficient are the new investors? Do they have the financial muscle to sustain the firm? What is their pedigree in the business” he asked? A check by BusinessDay on the website of Prudent Energythe new investor surprisingly shows that the site is undergoing some technical maintenance. A further check on the new investor shows that Abdulwasiu Sowami, an alumnus of the University of Maiduguri, who also holds Master’s degree holder in Corporate Governance from Leeds Becket University is the Managing Director of the Energy company. An energy analyst, Mr. Frank

Obi noted that Forte Oil has great potentials but how well it will actualize this potential is in the hands of the new investor. He, however, urged investors to exercise caution until the transaction was concluded. “I believe the company has a greater potential than it is currently doing, and with the new investors coming on board, it is expected that the company will perform better in its product lines.” Investors are anxiously waiting for the completion of this transaction which is expected to close by Q1 2019. Forte Oil Plc was incorporated on 11 December 1964 as British Petroleum. It became African Petroleum through the nationalization policy of the Federal Government of Nigeria in 1979. In May 2007 the shareholding structure changed as Incorporated Trustees of NNPC’s Pension Fund divested its stake to Zenon Petroleum and Gas Limited owned by Femi Otediola thus making him the majority shareholder in the company. The Company changed its name to Forte Oil Plc in December 2010 upon restructuring and rebranding

BANKING

Access Bank plans expansion to 3 African countries in 2019 JONATHAN ADEROJU

s part of a five-year strategic plan, Access Bank Plc will embark on a continental expansion, according to executive director, Victor Etokwu. The tier-one lender, currently working to finalise a N72 billion merger deal with Diamond bank, already operates in 15 countries. “Before the month of

June, we will be in three more countries in Africa and could have a franchise in Hong Kong,” Etokwu said. According to Etokwu, Access bank is “Africa’s biggest and most profitable bank in the United Kingdom. We are the only African bank in the clearing house in the UK. It is a big franchise. There is room for everybody; we have shared this with all the staff.” The bank currently

operates in the Democratic Republic of Congo, Gambia, Ghana, Rwanda, Sierra Leone and Zambia. The Access Bank Executive Director further gave the reasons for the expansion drive, stating that the expansion was part of the lender’s five-year strategic plan. Etokwu further said “If you listened to Herbert’s (Hebert Wigwe is Access Bank’s GMD) interview on CNBC early last year where he was

talking about our 5 year plan between 2018 and 2022, you would have heard those plans. “We want to be Africa’s gateway to the world and that means we have to be in key financial centres like the United Kingdom, Hong-Kong, China and the United States. Hopefully, we should be in the United States four years from now.” He further said that “We have a full banking

licence in Dubai. We are the biggest African bank in the UK. We have a rep office in China, India and in Lebanon. Before the half of this year, we would be in Hong Kong.” Etokwu also dismissed rumours of staff resigning in a particular branch; he said “I am not aware that any position has been taken, that anybody will go. If at all, the position that has been taken is that people will stay. There is no merger

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

in this country that has happened that has had the level of staff engagement that we have had. “In the last one month, we have been to Owerri, we have been to Ibadan, and we have been to Abuja. We are talking to staff and customers. We are building something big. There is room for everybody. This is the biggest retail bank in the country. We need people to run it. The branch network is almost number one or two.”

Thursday 17 January 2019

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APPOINTMENTS

NOVA Merchant Bank boosts staff morale with promotions

…amid business growth GBEMI FAMINU

n fulfilment of its commitment to be the best place to work and in line with its policy of rewarding deserving staff members, NOVA Merchant Bank has promoted about a third of its staff who have demonstrated exceptional performance in their responsibilities. These promotions come amidst the growth in the bank’s business as it continues to scale up its operations. In 2018, despite the tough economic and operating climate, NOVA in its first full financial year of operations

was able to deploy a stateof-the-art and fully digital core banking application and recorded impressive strides in customer acquisition, as well as the rollout of some bespoke and innovative products. “The Board and Management remain committed to developing and rewarding the talent of its youthful workforce,” Anya Duroha, managing director/CEO of the bank, said on the recent promotions while commending the staff for their hard work. “The bank will continue to leverage the innovativeness and dynamism of its young personnel to develop innovative solutions to enable our customers thrive in the marketplace. NOVA’s strate-

gies rely heavily on the unique talents each staff brings to the table. We do not take this for granted,” he said. Phillips Oduoza, chairman of the Board, while congratulating the newly promoted staff, expressed the Board’s satisfaction and complete confidence in the staff and management of the bank and pledged to continue to support them as they strive to achieve their corporate goals and objectives while realising their personal aspirations. NOVA is a newly-licensed merchant bank focused on providing wholesale and investment banking services. It commenced business in 2017 and has continued to boldly execute its roll out strategies.

L-R: Emma Ugorji, media consultant; Goddy Nnadi, head of corporate affairs, Petroleum Equalization Fund (PEF); and Ahmed Bobboi, executive director, PEF, during a media training organized by PEF in Abuja . NAN

TECHNOLOGY

Microsoft, FirstBank collaboration to boost SME operations in Nigeria JUMOKE AKIYODE-LAWANSON

icrosoft and FirstBank of Nigeria have kick started plans to grow small and medium scale enterprises (SMEs) by promoting technology adoption and skills development at a free to attend event to hold Friday 18 January, 2019. The event will serve as an official launch of the new partnership between Microsoft 4Afrika and FirstBank, following a memorandum of understanding signed in June 2018. The partnership seeks to build the capacity of local SMEs and accelerate their digital transformation, by providing them with exclusive and tailored non-financial solutions, as participants will be exposed to skills development resources, access to business networks and an educational platform. According to Taiwo Shon-

ekan, head customer experience and value management, First Bank of Nigeria Limited: “This partnership with Microsoft enables us to deliver a portfolio of non-financial solutions to our SME customers. We have over the last 125 years supported SMEs in building their business, whilst contributing to the national economy. This partnership is a landmark step in our quest to leverage the influence of technology in businesses, especially in today’s digital age.” Shonekan says; with this partnership, FirstBank customers can buy Microsoft products at discounted rates in the local currency – the naira – as this seamlessly aids technology adoption, skills and capacity development among SMEs in Nigeria. Amrote Abdella, regional director of the Microsoft 4Afrika Initiative and the keynote speaker for the event says: “For SMEs, integrating technology

into their operations is no longer an option, but a necessity for future growth and success. We are looking forward to engaging in discussions that explore how technology can extend reach to new markets and improve productivity, which results in better customer service, more competitive offerings and the ability to act with agility.” Across the continent, Microsoft 4Afrika is forging partnerships with several players in the SME ecosystem – from banks to telcos – to enhance SME offerings and reach a broader audience. “Technology and the relevant digital skills today play such an integral role in business success. We are working with organisations to extend this support to as many SMEs as possible, ensuring not only their success, but the growth and competiveness of our continent in an increasingly digital world.”

SERVICES

NSE lifts suspension on C&I Leasing shares JONATHAN ADEROJU

he suspension which was placed on trading on shares of C&I Leasing has been lifted after the company informed the Nigerian Stock Exchange (NSE) that the shares consolidation exercise has been concluded. NSE had placed two weeks full suspension on C&I Leasing shares to enable the company to embark and complete the share capital reconstruction exercise from December 13 to 27, 2018, but the exercise dragged on into January 2019, with the company faulting the

time-frame as the cause for delay. The suspension limited trading and price movement on the shares of the company while allowing Registrars to update the register of members after the decrease of the total number of its outstanding shares in the open market. This corporate action will afford C&I Leasing the opportunity to issue more shares in the future, while additional capital raised will be budgeted for the company’s expansion. The share capital reconstruction will cut C&I Leasing’s paid-up share capital by 80 per cent, cancelling 1.506

billion ordinary shares, while four ordinary shares of 50 kobo each will be consolidated into one ordinary share of 50 kobo each. Also, C&I Leasing’s current outstanding share capital of 1.883 billion ordinary shares of 50 kobo each will be reduced by the reform to 376.56 million ordinary shares of 50 kobo each. Despite the official statement by C&I Leasing on the purpose of the consolidation of shares, analyst believes it’s more of a reverse split than a restructuring. A reverse split is a corporate action where a company reduces or decreases the number of its issued share capital.

L-R: Enape Victoria Ayeshat, president, Chartered Institute of Forensic and Investigative Auditors of Nigeria (CIFIAN); Andrew Gandu, resident auditor, Office of the Auditor General of the Federation and Ugwu Oliver Valentine, registrar CIFIAN, during a press briefing tag “Application of Forensic and Investigative Auditing for Prevention of Fraud, Corruption and Cyber Crimes in Nigeria” in Abuja. Pic by Tunde Adeniyi.

L-R: Tosin Adegbenle, manager, Ijebu-Ode Imepe Branch, First City Monument Bank (FCMB); Felicia Obozuwa, divisional head, Corporate Services; Favour Olu-Asorona, manager, Ijebu-Ode 1 Branch; and Babatunde Onadeko, zonal head, South-west 2 , during the commissioning of the newly renovated Ijebu-Ode 1 Branch of the Bank at Ijebu-Ode, Ogun State.

L-R: Jagadish Swain, senior marketing manager, Spectranet 4G LTE; Ajay Awasthi, chief executive officer, and Mike Ogor, head of marketing, Spectranet 4G LTE, during the launch of Spectranet ACE MiFi in Lagos.

18 BUSINESS DAY

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Thursday 17 January 2019

Shaping people into a team

When being close to your employees backfires Zhenyu Liao

WORK VS. LIFE anagers are often encouraged to develop and maintain good working relationships with employees, because doing so motivates stronger commitment and support, as well as better performance. But could bonding too strongly with employees backfire? Our research, recently published in the Journal of Applied Psychology, suggests that it could. If managers don’t establish appropriate expectations and timelines, their good working relationships could make employees less engaged and less responsive to them in the short term. We based our research on what management scholars call “ social exchange theory,” which suggests that managers and employees interact through repeated transactions, where each is offering and obtaining work-related resources. These interactions shape the quality of the relationship, which in turn influences how each group behaves in future interactions. So exchanging resources like

guidance, feedback, work effort and rewards helps build strong relationships between managers and employees; and over time, this relationship becomes more about long-term mutual goals and benefits, rather than contractual, short-term obligations. Ideally, when an employee feels that her manager is giving her more assignments, recognition or advice, she will return the

“favor” immediately — she’ll be more engaged and work harder. However, we hypothesized that if she has a strong positive relationship with her manager, she may not feel pressure to return a favor right away. In a field study, we gathered data from 73 pairs of managers and employees working for an information technology company in Northern China. We found that

how much managers and employees “give and take” fluctuated considerably across interactions. When managers gave more in a certain interaction, employees in general would immediately feel obligated to “repay” them by putting in more work effort and contributing more next time. But this wasn’t the case with employees who had stronger working relationships with their managers. They felt less obligated to return the favor right away and thus would be less engaged in work. Those employees seemed to take advantage of the good rapport they had with their boss, focusing less on making things feel balanced in the short term. Our findings are in line with earlier research on U.S. workers and managers, which found that strong work relationships make employees take longer to reciprocate favors in the short term. The implication is that managers who maintain strong working relationships with employees may face an unexpected risk: The employees they’re closest to might hamper their efficiency by taking longer to fulfill immediate requests.

To be clear, we’re not saying that managers should stop building strong relationships with employees. But if they want to see more effort and responsiveness, they first need to “give” more resources to employees, for example through greater recognition, stronger empowerment, more meaningful work and helpful guidance. Our work suggests that leaders should also consider how to make even their strongest direct-report relationships more effective. One takeaway is to set very clear expectations for when tasks should be completed. When requests are highly urgent, managers should ensure that all employees know to prioritize them.

Zhenyu Liao is a postdoctoral fellow in the Olin Business School at Washington University. Wu Liu is an associate professor of management and marketing at the Hong Kong Polytechnic University. Zhaoli Song is an associate professor in the School of Business at the National University of Singapore.

Make sure morale doesn’t suffer when a favorite team member leaves Lisa Lai CONNECTING

hen a favorite team member resigns — someone the rest of the team loves working with — your role as a manager becomes more complicated. You not only have to manage the work burden that comes with a vacancy on the team; you also have to be aware of the social impact of the loss. The social fabric of your team can unravel if you don’t manage the situation with care. How do you keep the team emotionally invested and highly productive? Here are a few tips: — SHOW APPRECIATION FOR THE ONE LEAVING: Managers tend to shower appreciation upon those

retiring. When others resign, the tendency is to view it as a betrayal or an abandonment. With an increasingly mobile workforce, people will come and go more frequently. When a well-liked employee resigns, the most important thing you can do

is show that you, too, are sorry to see the person go. Acknowledging the positive aspects of the employee’s contribution will help you connect emotionally with your team’s sense of loss. Share the news with your team as quickly as is reasonable. Discuss what you appreciated about the individual’s contributions. Acknowledge that you know how much the team enjoyed working with him, and that they’ll miss having that person around. If you can include team members in the selection process for a replacement, assure them you’ll work closely with them to choose the right fit in a new hire. — ANSWER QUESTIONS WITH TRANSPARENCY AND RESPECT: When someone the team cares about resigns, the other team members will have questions — for you and for the

individual resigning. If your team is feeling uncertainty and doubt, your role is to ease their concern and reengage them so they stay and remain productive. Learn as much as you can about why someone is leaving, and ask what he feels comfortable having you share with others. Is he pursuing a new career? Was he offered a role with more flexibility to spend time with a child or aging parent? Is he unhappy and wants out? Be respectful of the person leaving, and don’t be lured into sharing anything you haven’t agreed to share in advance. — INVEST IN THE HEALTH OF THE TEAM: Managers may be respected and connected to their team and yet still not know who has influence or what lingering conflicts might exist.

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

Well-liked employees are the ones who most influence the team dynamic. When those individuals leave, the dynamic can fracture if not supported. Check in with the team. What’s going well that shouldn’t change? What could be better? For the new hire, what does the team think is needed for the perfect fit? With this dialogue, you demonstrate that you care about the team, which improves morale and engagement. It’s always challenging when someone leaves your team, especially if he is well-liked. Your role is to ensure that the work can still be completed and that the team can navigate the social change with ease. Lisa Lai is an adviser, consultant and coach for leaders and companies.

Thursday 17 January 2019

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

Market capitalisation

NSE Premium Index

The NSE-Main Board

NSE ASeM Index

2,165.23

399.27

793.81

Week open 04 – 01–18)

31,070.0 30,638.90

N11.721 trillion

N11.426 trillion

2,129.24

1,409.02

792.45

Week close (11 – 01–19)

29,830.70

N11.124 trillion

2,043.32

1,387.35

792.45

Year Open

Percentage change (WoW)

-2.64

Percentage change (YTD)

-5.09

-4.04 -6.91

NSE Lotus II

NSE Ind. Goods Index

NSE Pension Index

300.24

2,218.37

1,222.99

1,201.80

730.77

299.85

2,199.55

1,182.47

1,174.14

704.73

281.01

2,152.61

1,194.35

1,170.69

NSE Banking Index

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

1,399.64

399.27

124.82

1,378.82 1,343.94

387.04

124.70

383.50

115.97

NSE 30 Index

-1.54

0.00

-2.53

-3.64

-0.17

-5.17

-0.91 -3.87

-7.00 -8.31

731.57

-3.56 -5.89

-6.28 -7.02

Smart investors buy stocks ahead of expected recovery HEANYI NWACHUKWU

head of the expected recovering in secondhalf (H2) of 2019, many smart investors are strategically buying value stocks following the bear reign in the market which pushed many equities to new lows. Thes e investors p ositive outlook for the stock market in H2 comes on the heels of many analysts reiterating their bearish outlook for this H1 amid political uncertainties which cloud investors’ sentiment as the election draws nearer. As value-investing strategy remains the key to approaching on Custom Street in 2019, investors are seen selecting companies that are in good business with sound fundamentals, whose share prices are trading below their fair values. Also considered are in the investors’ stock picks are equities with history of dividend payment. Based on analysts stock picks, investors should watch stocks like Zenith Bank Plc, GT Bank Plc, FBN Holdings Plc, UBA Plc, Transcorp Plc, Dangote Cement Plc, Seplat Plc, Flour Mills of Nigeria Plc, Nestlé Nigeria Plc, Dangote Sugar Refinery Plc, and that of Total Nigeria Plc. Others that have analysts ‘Buy’ ratings are FCMB Group Plc, Fidelity Bank Plc, Stanbic IBTC Holdings Plc, Unilever Nigeria Plc, Okomu Oil Palm Plc, Presco Plc, Julius Berger Nigeria Plc, and Vitafoam Plc. The record sell pressure since this year at the Lagos Bourse has

led to erosion of stock value in excess of N480billion. The market opened this year with record value of N11.721 trillion, but as at January 15, 2019 it stood at N11.238trillion. “Domestically, we believe market sentiments in the first half of the year will be driven by uncertainty in oil prices as well as the 2019 general elections. Ac c ord ingly, w e anticipate volatility in equities markets in H1’19, with enhanced stability p o s t- e l e c t i o n s”, s a i d O s ca r Onyema, CEO, Nigerian Stock Exchange (NSE). “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 of 2019,” the NSE CEO said on Monday January 14, 2019. “For equities, performance in 2019 will be anchored on the outcome of the general election on one hand and the change of guard at the Apex Bank on the other. Overall, we imagine a flattish performance in first-half (H1) 2019 and a quick rebound in second-half (H2) 2019, especially if the outcome of the election is seen to result into a smooth and peaceful transmission from May 29 onward”, United Capital analysts said in their January 7 investment views. “A l t h o u g h a n u m b e r o f factors may limit the growth

of the equity market in 2019, w e b e l i e v e i t w i l l re c o rd a modest recovery. The election activities that will dominate the first quarter of the year may deter investors throughout Q1 2019. However, informed investors usually make money from the equity market when other investors are cautious. Th e re f o re, w e e x p e c t s o m e strategic positioning in the equity market in Q1 2019 ahead of a recovery in Q2 2019,” said FSDH Research analysts. They want investors to “buy and hold stocks and ignore market volatility associated with overreaction in the market. We believe the following sector of the NSE should record fairly strong growth in 2019.”

-2.13 -3.64

1.00

-0.29

-3.52

-3.05

Investors show strong interest in Carlyle’s Metropolitan secondaries program

lobal alternative asset manager The Carlyle Group recently closed the Metropolitan Real Estate’s Secondaries Program II, raising $1.2 billion and exceeding its $750 million target. Metropolitan Real Estate is a multimanagerrealestateprivateequityinvestment platform that is part of Carlyle’s Investment Solutionsbusiness.Theplatformencompasses primary fund investments, direct property co-investments and secondaries, creating multiple and complementary ways for Metropolitan to invest with its partners. Secondaries offer exposure to seasoned real estate investments with a shortened holding period, said Sarah Schwarzschild, Head of Secondaries at Metropolitan. Lauren Dillard, Head of Carlyle Investment Solutions, said, “Strong investor interest in this program is a testament to the team,theirproveninvestmentstrategyandthe depth of the opportunity. We are grateful for thesupportofourreturningandnewinvestors and will work hard to create value for them.” The program invests in the real estate secondaries market globally, providing liquidity to investors in private equity funds and other partnership structures. Program II builds on Metropolitan Real Estate’s secondaries investment strategy dating back to 2002 and its first dedicated secondaries program, which launched in 2014. “These defensive characteristics, among others, are resonating with our investors late in the economic cycle. As the secondary marketcontinuestogrow,weremainfocused on acquiring high quality assets with capable partners at attractive valuations for our investors,” Sarah said. Metropolitan’s secondary investment strategy benefits from its deep market relationships and foundation of over 225 existing fund investments. Program II has already closed five investments spanning the U.S.,EuropeandAsiainallmajorpropertytypes. Metropolitan has a global team that comprises more than 40 people in the U.S., Europe and Asia. It is led by an investment committee averaging more than 25 years of industry experience. Metropolitan manages global real estate commingled funds and separate accounts comprised of primaries, secondaries and co-investments.

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Thursday 17 January 2019

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United Capital Investment Views Bears extend siege on equities; NSE-ASI down 2.6% week-on-week

he bearish theme that started the year continued on in the second week, as NSE ASI shed -2.6percent to settle at 29,830.7 points. The bearish performance was predicated on the consistent losses recorded in the market over the week which saw the NSE-ASI breach its 30,000 point threshold, outweighing the marginal gains recorded in two of the trading sessions during the week. Drilling down to sector performances, the Insurance (-7percent) sector was the week’s biggest loser owing to price declines in NEM (-33.5percent) and CUSTODIAN (-13.1percent) while the Oil and Gas (-6.3percent), Consumer Goods (-3.6percent), and Banking (-0.9) sectors followed, dragged by price losses on SEPLAT (-10percent) NESTLE (-5percent) and ETI (-3.4percent). On the flip side, the Industrial (+1percent) sector recorded the highest gain, buoyed by price appreciation in JBERGER (+22.2percent). The Agricultural sector also gained, inching up by a paltry 1bps after a gain in OKOMUOIL (+2.5percent) Investors’ sentiment (as measured by market breadth) improved but remained u n d e r w h e l m i n g at 0 . 5 x (previously 0.4x); 21 stocks advanced w/w while 39 declined. Looking into the coming week, we reiterate our bearish outlook for the market in Q1-19, amid political uncertainties clouding investors sentiment as the election draws nearer. Money Market : Bulls outweigh bears despite constrained system liquidity In the week to 11th January, system liquidity tightened as the CBN continued its FX intervention across various segments while successfully mopping up a total N365billion, against N375billion that matured during the week. Accordingly, money market rates (Open Buy Back and Overnight rates) trended higher, averaging 25percent from 18.5percent in the preceding week. On the side, stop rates remained the same; 91-day: 11.9percent, 182-day: 13.5percent, and 364-day: 15percent. The secondary treasury bills market was characterized by a tussle between the bulls (spurred by bargains on attractive offerings) and the bears (stoked by the compressed system liquidity). Cumulatively, the bulls outweighed the bears as average yields trended lower to settle at 13.9percent [91-day (down 129bps to 11.1percent), 1 8 2 - d ay (d ow n 3 b p s t o 13.3percent) and 364-day (up 12bps to 17.4percent)]. Notably, the CBN released the NTB issuance calendar for Q1-19 which would see the FG net repay N163billion. Looking into the new week, we expect to see yet more OMO auctions as the CBN doubles down on curbing system liquidity in the wake of c. N554.5bn OMO maturity

that is set to hit the system. for the global economy as it Meanwhile, the DMO will be lowered its expectation for global conducting its WEEKLY bi-weekly NTB growth to 2.9percent amid rising REPORT auction as it looks to rollover downside risks. According to the N225billion maturing bills. The report, the continued removal tempo of these should of accommodative policies STOCK MARKET REPORT FORevents JANUARY 11TH 2019 guide trading sentiments in the by central banks in Advanced Economies as well as a possible secondary market. A total turnover of 1.265 bil iMarket: on shares worth N14.074An bil ion inextension 19,278 deals were traded this week escalation of simmering trade Bond byof investors the floortheme of the Exchange in contrast to a total of 1.647 bil ion shares valued at disputes is the biggest risk point. a onlull N8.413 bil ion that exchanged hands last week in 14,773 deals. A lull-to-bearish theme was What’s more, the fact that higher theby volbonds Theobserved Financial Services Industryin (measured ume) led the activspace ity chart with 1.072as bil ion shares debt levels have made some yields FGN valaverage ued at N8.795 bil ion traded in 12,287 dealon s; thus contri buting 84.73%bonds and 62.49% to the total economies more vulnerable equi ty turnover volume and marginally value respectively. The Conglomerates followedto with 83.595 to rising global interest rates, declined by Industry 8bps misettle l ion shares worthatN155.485 mil ion in 750 deals. The thirSeemingly, d place was Consumer Goods Industry shifts in investor sentiment, and 15.3percent. with a turnover of 50.537 mil ion shares worth N3.432 bil ion in 2,576 deals. attention seemed to be focused exchange rate fluctuations, are on money space asCustodian also factors to watch. Tradi ng in the the Top Three Equities namely, market Diamond Bank Plc, FBN Holdings Plc and Broad gains were recorded mil ion shares worth N 2.044 bil ion in Investment Plc (measured by volawaited ume) accounted for 465.000 investors the release 2,448 s, contribFGN uting 36.75% bond and 14.53% to calendar. the total equity turnover volWe ume and value w/w across major equity indices. ofdealthe respectively. reiterate our expectation for In the United States, despite Equity Turnover - Lastto 5 daysremain elevated in the impasse over funding for yields Turnover Turnover risks Traded Advanced Declined UnchangedTrump’s wall and the extension Q1-19 as political remain Date the Deals Volume Value (N) Stocks Stocks this Stocks Stocks of the partial government on horizon, albeit, 07-‐Jan-‐19 3,746 also 222,583,260 depend 3,342,490,803.87 99 on the 14 level 34 51 shutdown, the unfolding would 08-‐Jan-‐19 4,508 216,248,805 2,669,490,424.07 95 12 28 55 of events that signalled ease of aggressiveness by the14 DMO 09-‐Jan-‐19 3,806 234,897,039 2,245,499,815.38 95 19 62 in issues that had spooked in offering fiscal paper. 10-‐Jan-‐19 3,680 385,393,188 3,068,127,552.62 95 21 16 58 investors, buoyed sentiments Foreign Exchange: Naira 11-‐Jan-‐19 3,538 206,301,197 2,747,918,447.51 94 30 4 60 appreciates at the NAFEX during the week. On the trade front, officials from China and the US kicked off negotiations early last week ahead of their March deadline, hence, signalling waning tensions. Additionally, minutes from the Fed suggested a less-aggressive Fed stance in 2019 (vs 2018) as they emphasized that while the outlook for the economy remains roughly balanced, they will continue to assess global economic and financial developments in decision making. Thus, the NASDAQ, S&P 500 and DJIA rose 3.5percent, 2.5percent and 2.4percent w/w respectively. window Bullish sentiments also In the Foreign exchange filtered into European markets market, the local currency amid concerns around a strengthened against the slowdown in key economies dollar; up by 11basis points in the bloc and ongoing and 2bps w/w to close at Page 1 B R E X I T c o n v e r s a t i o n s . Forbps Further Inquiries Contact: Market Operations Department N364.9/$1 and N306.9/$1 at Notably, Industrial production the NAFEX and official window in Germany slowed further in respectively. However, naira Nov-18 after falling 1.9percent traded sideways at the parallel m/m. Consequently, the Pan market, closing at N361/$1. This European STOXX (+1.6percent), was as the CBN maintained its UK’s FTSE (+1.2percent) and weekly FX intervention in the France’s CAC (+1percent) wholesale and retail FX market, trended northwards w/w. In in a bid to supporting the naira. the week ahead, we would be Also, FX reserves accreted keeping tabs on the upcoming marginally by 2bps week-on- BREXIT parliamentary vote, as week (w/w) to c. $43.1billion well as Germany’s 2018 GDP as at Thursday, maintaining its numbers. recent uptrend despite the Apex Equity indices across BRICS banks willingness to continue classified emerging markets also to support the naira even at closed the week on an upbeat the expense of the reserves. note. Notably, the Chinese Meanwhile, benchmark Brent government continued on its price rebounded, trading above expansionary policies in an $60/barrel for a significant part attempt to shield the slowing of the week as OPEC output economy. During the week, cut which kick-started in Jan- tax cuts of up to $29.0bn were 19 provided support for prices. announced for small companies Looking ahead, we expect following the 100bps cut in the sustained weekly FX reserve ratio that was announced intervention by the CBN to by the PBOC. Elsewhere, continue to support the local the South African JALSH unit at N360-N365/1$ in the I (+2.8percent), Russia’s RTSI & E window. In the meantime, (+2.3percent) and Brazil’s IBOV an above $60/b oil is positive (+1.8percent) led the pack, while for reserves. China’s SCHOMP (+1.5percent) Global Market Review and and India’s SENSEX (+0.9%) also Outlook closed in positive w/w. Ease in trade and Crude prices rose 6percent monetary policy tensions w/w after trading above $60/b on provide succour three of five trading days to settle In the past week, the World at $60.5/b. This is as OPEC+ cuts Bank published its 2019 Global take off in Jan-19 in a bid to curb Economic Prospects report, oversupply. The thawing in trade titled “Darkening Skies”. The tensions could have contributed economic-watchdog harped to the uptrend. the darkening prospects

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

Renaissance Capital research Nigerian banks: 2019 outlook – slow and steady?

indful of w eake r earning s g row th prosp e cts, and the r is e in p olic y u nce r taint y , w e still b e lie ve that the Nig e r ian banks are attractive ly value d, and a share -pr ice re - rating is me r ite d. We make re lative ly minor chang e s to our targ e t pr ice ( TPs) across the b oard. We up g rade FBN Holding s (FBNH) to BU Y (from Hold) on w hat w e s e e as a share -pr ice ove r- cor re ction, and dow ng rade Acce ss to HOL D (from Buy ) on conce rns ab ou t its prop os e d me rg e r w ith Diamond. Our top picks in the s e ctor re main Gu arant y Tr ust Bank (GTBank), Z e nith and Unite d Bank for Afr ica (UBA). ‘ Wow ’ e ffe ct unlike ly in 2019, but w e s e e valu e in the s e ctor We b e lie ve 2019 w ill b e a challe ng ing year, e sp e cially w ith the tailw inds from low e r impair me nts all bu t ove r ; w e do not s e e fu r the r ass e t qu alit y improve me nt b e yond w hat has already b e e n achie ve d. We still do not argu e a g row th stor y for the Nig e r ian banks, and s e e no meaning fu l tr ig g e r for the s e ctor in th e sh or t te r m. Hig h e r inte re st rate s are

p o si ti ve f o r ea r n i ng s, bu t i t i s u n li ke ly that th e ba n ks w i ll a ch i e ve su bsta ntia l g row th, i n ou r vi e w. That sa i d , w e sti ll b e li e ve s ha re p r i ce s have d e cli n e d a h ea d o f cu r re nt ma rke t f u n da m e nta ls a n d w e s e e va r yi ng d e g re e s o f va lu e a m o ng th e ba n ks. Tw o ke y e v ent s to wa tch out f or Th e g e n e ra l e le cti o n s a re d u e to b e h e ld o n 1 6 Febr u a r y 2 0 1 9 , a n d Ati ku Abu ba ka r, th e ma i n o p p o si ti o n ca n d i date, w i ll cha lle ng e P re si d e nt Mu ha m ma d u Bu ha r i . We ma i nta i n ou r vi e w that th e e le cti o n s a re n o t a r i sk i n th e i r ow n r ig ht, bu t s e e th e m m o re a s a d e lay to th e re - rati ng o f s ha re p r i ce s. Th i s yea r w i ll a ls o ma rk th e e n d o f th e f i ve - yea r te nu re o f th e cu r re nt Ce ntra l Ba n k o f Nig e r ia ( C BN ) g ove r n o r, G o d w i n Em e f i e le. W h i le h e i s e lig i ble f o r a s e co n d te r m, i t i s u n clea r at th i s stag e wh e th e r h e w i ll b e reap p o i nte d o r re p la ce d . A cha ng e i n g ove r n o r cou ld have i mp li cati o n s f o r e xcha ng e rate ma nag e m e nt to o ls su ch a s th e ca s h re s e r ve rati o ( C R R ) , swap s a n d d e r i vati ve co ntra cts w i th ba n ks a n d th e e xte nt o f s e cto r f o rb ea ra n ce.

M & A … w h o is n ext ? Mo st Nig e r ia n ba n ks a re th e re su lt o f M& As ; GTBa n k i s th e lo ng e st-sta n d i ng i n d ig e n ou s ba n k that ha s n o t b e e n i nvo lve d i n a ny M& A . B e yo n d atta i n i ng s ca le, a co mpa r i s o n o f th e Nig e r ia n ba n ks’ p e r f o r ma n ce p re - a n d p o st- M& A a cti vi t y, to d e te r m i n e i ts su cce ss, yi e ld s n o o bvi ou s re su lts. Th e ma i n qu e sti o n o n i nve sto rs’ m i n d s f o llow i ng th e re ce nt a n n ou n ce m e nt o f a p ro p o s e d m e rg e r b e t w e e n Acce ss a n d D ia m o n d i s li ke ly to b e wh o i s n e xt? GTBa n k, Sta n bi c I BTC ( SI BTC ) , U BA a n d Z e n i th have th e capa ci t y to a cqu i re, i n ou r vi e w, bu t w i ll u n li ke ly d o s o. We d o n o t b e li e ve a ny ti e r 2 ba n k (e xce p t SI BTC ) ha s th e capa ci t y f o r a n ou tr ig ht a cqu i si ti o n ( w i th ou t ra i si ng ti e r 1 cap i ta l) ; w e s e e m e rg e rs a s m o re f ea si ble, bu t d o n o t e x p e ct th e m to d i s r u p t th e co mp e ti ti ve la n d s cap e. Acce ss ha s th e m o st su cce ss f u l M& A h i sto r y. How e ve r, i f w e co mpa re i ts p e r f o r ma n ce si n ce i ts la n d ma rk a cqu i si ti o n o f Inte rco nti n e nta l Ba n k i n 2 0 1 1 , i t ha s u n d e r p e r f o r m e d i ts ti e r 1 p e e rs (e xce p t FBN H) . Va lua t ion s a n d cha n g e s to ra t in g s We u p g ra d e FBN H to BU Y ( f ro m Ho ld ) , a s w e b e li e ve i ts s ha re p r i ce m o re tha n a d e qu ate ly re f le cts th e w o rst- ca s e N PL s ce na r i o mate r ia li si ng. We d ow ng ra d e Acce ss to HOL D ( f ro m Buy) o n co n ce r n s ab ou t i ts p ro p o s e d m e rg e r w i th D ia m o n d . Ou r to p p i cks a re GTBa n k, Z e n i th a n d U BA . We vi e w th e i r F Y 1 9 E P /B mu lti p le s o f 1 . 5 x , 0 . 8 x a n d 0 . 4 x , re sp e cti ve ly, a s attra cti ve e ntr y p o i nts.

Thursday 17 January 2019

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Last week in review:

Investors in Julius Berger, Diamond Bank, Transcorp, 19 others record gains HEANYI NWACHUKWU

n the review trading week to January 11, twentyt w o (22) e quities appreciated in price same as in t h e p re c e d i n g w e e k t o January 4. Julius Berger Nigeria Plc recorded the h i g h e s t p r i c e ga i n l a s t week, moving from weekopen level of N23.25 to N28.40, adding N5.15 or 22.15percent. Also, Diamond Bank Plc stock price followed after it increased from N1.80 to N2.02, gaining 22kobo o r 1 2 . 2 2 p e rc e nt ; w h i l e that of Transnational Corp oration of Nig er ia Plc increased from N1.16 to N1.29, adding 13kobo or 11.21percent. These stocks and many others may have either recorded gains or losses in the past three trading days into this week, but at the end of tomorrow’s trading session to close the week, investors will be able to compare the margins based on the prices at which their stocks opened this week. As at last week, the

WEEKLY REPORT

STOCK MARKET REPORT FOR JANUARY 11TH 2019

A total turnover of 1.265 billion shares worth N14.074 billion in 19,278 deals were traded this week by investors on the floor of the Exchange in contrast to a total of 1.647 billion shares valued at N8.413 billion that exchanged hands last week in 14,773 deals. The Financial Services Industry (measured by volume) led the activity chart with 1.072 billion shares valued at N8.795 billion traded in 12,287 deals; thus contributing 84.73% and 62.49% to the total f o l l ofollowed w e d with b y 83.595 Resort 95kobo or equity turnover volume and value respectively. The8.41percent Conglomerates; Industry C e m e n t C o m p a n y o f Savings & Loans Plc which million shares worth N155.485 millionN oinr750 Consumer Goods from Industry 50kobo to t h edeals. r n NThe i g ethirridaplace P l cwas declined stock price increased from 37kobo, down 13kobo or with a turnover of 50.537 million shares worth N3.432 billion in 2,576 deals. N 1 8 . 4 5 t o N 2 0 , a d d i ng 26percent. N1.55 or 8.40percent. A .G. Leventis Nigeria Plc increased from 27kobo to 29kobo, adding 2kobo or 7.41percent ; while the stock price of FCMB Group Plc increased by

The share price of Unity Bank Plc also declined from a high of N1 to 83kobo at the close of trading last w e ek, dow n by 17kob o or 17percent. Custodian

Trading in the Top Three Equities namely, Diamond Bank Plc, FBN Holdings Plc and Custodian Investment Plc (measured by volume) accounted for 465.000 million shares worth N 2.044 billion in 2,448 deals, contributing 36.75% and 14.53% to the total equity turnover volume and value respectively.

decreased from N21.85 to N19.30, losing N2.55 or 11.67percent. Neimeth International Pharmaceuticals Plc also dipped from 78kobo to 70kobo, down by 8kobo or 10.26percent. Seplat Petroleum Development Company Plc lost N64 last week or 10percent, from N640 to N576.

of UPDC Real Estate Investment Trust which opened last week at N6.60 decreased to N5.95, losing 65kobo or 9.85percent. In the trading week to January 11, the stock market recorded a total turnover of 1.265 billion shares worth N14.074 billion in 19,278 deals in contrast to a total

Mrs Oil Nigeria Plc w a s d ow n by N 2 . 5 5 o r 9 . 9 2 p e rc e nt l a st w e e k, from N25.70 to N23.15. Champion Breweries Plc declined from N1.72 to N1.55, losing 17kobo or 9.88percent ; while that

o f 1 . 6 4 7 b i l l i o n s ha re s valued at N8.413 billion that exchanged hands the preceding week in 14,773 deals. The Financial Services Industr y (measure d by volume) led the activity chart with 1.072 billion shares valued at N8.795 billion traded in 12,287 deals; thus contributing 84.73percent and 62.49percent to the total equity turnover volume and value respectively. The Conglomerates Industr y followed w ith 83.595 million shares worth N155.485 million in

Equity Turnover - Last 5 days Date 07-‐Jan-‐19 08-‐Jan-‐19 09-‐Jan-‐19 10-‐Jan-‐19 11-‐Jan-‐19

Deals 3,746 4,508 3,806 3,680 3,538

Turnover Volume 222,583,260 216,248,805 234,897,039 385,393,188 206,301,197

s ha re p r i c e o f Wap i c Insurance Plc increased by 4kobo or 10percent, rising from a low of 40kobo to 44kobo. It was f o l l ow e d by t hat o f i t s counterpart, Cornerstone Insurance Plc which moved up from 20kobo to 22kobo, after adding 2kobo or 10percent. John Holt Plc stock price also advanced from 44kobo to 48kobo, adding 4kobo or 9.09percent. Lafarge Africa Plc stock price increased from N11.30 to N12.25, gaining

Turnover Value (N) 3,342,490,803.87 2,669,490,424.07 2,245,499,815.38 3,068,127,552.62 2,747,918,447.51

Traded Advanced Declined Unchanged Stocks Stocks Stocks Stocks 99 14 34 51 95 12 28 55 95 14 19 62 95 21 16 58 94 30 4 60

8kobo or 4.94percent, from N1.62 to N1.70. On the contrary, forty-four (44) equities depreciated in price in the review week to Januar y 11, lower than forty-five (45) of the preceding week to January 4, while 1 0 3 e q u i t i e s re m a i n e d unchanged higher than 97 equities recorded in the preceding week. NEM Insurance Plc recorded the highest price decrease last week, from N2.60 to N1.73, down by 87kobo or 33.46percent ;

Investment Plc stock price decreased from N6.10 to N5.30, losing 80kobo or 13.11percent. Flour Mills Niger ia Plc stock pr ice

750 deals. The third place was Consumer Goods Industry with a turnover of 50.537 million shares worth N3.432 billion in 2,576 deals. T r a d i n g i n t h e To p Three Equities namely, Diamond Bank Plc, F B N Ho l d i n g s P l c a n d Custodian Investment Plc ( m e a su re d by vo l u m e ) accounted for 465.000 million shares worth N 2.044 billion in 2,448 deals, contributing 36.75percent and 14.53percent to the total equity turnover volume and value respectively. Also traded during the week were a total of 15,288 units of Exchange Traded Products (ETPs) valued at N236,445.40 executed in 4 deals c o m p a re d w i t h a t o t a l of 395 units valued at N816,344.70 that was transacted last week i n 1 3 d e a l s. A t o t a l o f 17,996 units of Federal Government Bonds valued at N18.426 million were traded this week in 10 deals compared with a total of 7,209 units valued at N6.958 million transacted last week in 8 deals. The NSE AllShare Index and Market Capitalisation depreciated by 2.64percent to close the review week at 29,830.70 points and N11.124 trillion respectively. All other indices finished lower with the exception of the NSE Industrial Goods Index that rose by 1percent while the NSE ASeM index closed flat. The NSE last week lifted the suspension placed on the trading in the shares of African Alliance In s u ra n c e Pl c. A f r i ca n Alliance Insurance Plc was amongst the companies suspended for failing to file the relevant accounts by the expiration of the Cure Period. African Alliance Insurance Plc has now submitted its outstanding Audited and Interim Financial Statements to The Exchange. The suspension of trading in t h e i s s u e r ’s s e c u r i t i e s was lifted on 8th Ja nu a r y 2 0 1 9 , t h e N S E noted.

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Thursday 17 January 2019

In association with Luxury

Malls

Companies

Deals

Spending Trends

Analysts forcast spike in consumer prices for December 2018 Stories BUNMI BAILEY

nalysts are forecasting a spike in December’s 2018 Consumer Price Index (CPI), otherwise referred to as inflation rate due to the end of the year purchases which drove up prices of consumer food items. FSDH research and Macroafricaintel, are expecting the inflation rate to rise by 11.69 percent and 11.5-12 percent respectively from 11.28 percent recorded the November. Ayo Akinwunmi, Head of Research, FSDH Merchant

Bank explained that “the increase in the prices of food items and non-food items

of the high velocity of end of the year purchases drove up prices of consumer food

The luxury lifestyle market set to hold February

he Luxury Lifestyle Market (TLLM) is a platform curating brands from Nigeria and beyond that embody the essence of luxury. Following a highly successful first event last year, TLLM is scheduled to hold again on the 8th and 9th of February, 2019 at the Balmoral, Federal Palace Hotel. Founded by Abisola Kola-Daisi, entrepreneur and Florence H Luxury Founder, the event promises to connect shoppers to a carefully curated selection of beauty, fashion and lifestyle brands at discounted prices. Last year, lovers and buyers of luxury gathered at the first edition of The Luxury Lifestyle Market for a twoday pop up event. Guests were treated to an array of African luxury brands at discounted prices - such as Florence H Luxury, Mazelle Perfumery, J Label, RnR Luxury, and lots moreagainst the backdrop of great music and good food. The African luxury market is a new, albeit growing, industry with a rapidly expanding wealth class that displays the desire to spend on luxury brands. The rise in social and digital media

has heavily contributed to this, as the ease of sharing information about brands and products has reached an all-time high. The Global luxury goods sale is expected to reach approximately $405 billion globally by 2019, with Africa contributing significantly to this market, growing at a rate of 5.6percent per year according to the World Bank. Leading the charge in the growth in the luxury market in Africa is South Africa, followed closely behind by Nigeria. However, despite the growth in consumer demand and buying power within the content, African luxury brands have struggled to meet demands and define themselves as “luxury” on local and international stages. International luxury brands have also expressed weariness to expand their markets to Africa, citing infrastructural weaknesses and low faith in African consumer demand for luxury as reasons. The African luxury market shows great potential in establishing itself as a strong force on local and international levels with

high consumer demand, which can be only be harnessed when challenges facing the industry are overcome. Infrastructural issues such as a lack of skilled labour, technological advances such as ecommerce and weak government regulations, need to be addressed. This year, TLLM will host the “Modern Day African” edition, with a focus on presenting Africa as a new frontier for the luxury market. The event will include top vendors and will involve meet and greets with top influencers in the industry. Shoppers will be treated to discounted prices, good food and drink, and great music. TLLM aims to set the pace for what the future of African luxury should look like by bringing together industry leaders, fashion buyers and luxury connoisseurs from across Africa. TLLM is positioning itself to fill the gap in the market for a growing demand for luxury within the continent, empower local luxury brands and challenge negative stereotypes about the potential for a formidable African luxury market.

items.” Rafiq Raji, chief economist at Macroafricaintel, a

research firm, expects inflation in December to rise to 11.5-12 percent. “My Forecast is based on the recent monthly change trend and typical price increases during festive periods, said Raji. “ But it is likely in the middle of these ranges of forecasts. The actual inflation headline would probably be within the 11.5-12 percent range, in my view.” The National Bureau of Statistics is scheduled to release the inflation rate for the month of December on Thursday 17, January 2019. Prices of major food items start to rise during or

in the run-up to the festive periods. The Food Price Index (FPI) report released on January 10, 2019 by the Food and Agriculture Organization (FAO) for the month of December 2018 remained relatively the same as November 2018. However, the World Bank has hinted at a possible increase in food prices in 2019 because of severe weather conditions, may accelerate the inflation rate in 2019 in Nigeria. The FAO notes that the decline in the prices of dairy and sugar in December was largely offset by the increases in cereal, meat and oils

Thursday 17 January 2019

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Global food prices reduces by 3.5% in 2018 What makes TECHNO Camon 11 a brilliant device in the phone market? Stories BUNMI BAILEY

ECNO Mobile, which lays claim to being the most loved smartphone brand on the African continent, is no stranger to setting and exceeding expectations with each of its new smartphones releases. The launch of its new Camon 11 further underscores this claim. There is probably no need for an introduction to the TECNO Camon series as almost everyone owns one or knows someone who does. The TECNO brand has constantly also enjoyed a lot of positive reviews for its Camon series over the years due to the record-breaking camera feature. Camon 11 being the Techno first Artificial Intelligence (A.I) technologically enabled Smartphone flaunts several improvements on every aspect, but the main draw here is the camera — with the 16MP A.I front camera and 13+2MPrear camera, the Camon 11 spots one of the best smartphone cameras right now.

The camera takes fantastic photos in both daylight and low-light scenarios, with the A.I-assisted feature allowing for amazing selfies. One of the other things that make this device’s camera a winner includes the fact that the smartphone camera comes with a beefier A.I beautification effect, A.I High Dynamic Range imaging feature and A.I adjustable flashlights. The improved Quad Core chipset and memory that goes as high as a 4GB RAM and64GB internal storagealready makes the device desirable. In terms of design, the

TECNO Camon 11 does not disappoint are talking about a smartphone with 6.2-inch notch screen HD+ super full view display, 18:9 aspect ratio and a hefty 3750mAh battery. TECNO has used several new materials (metallic) and design elements in the past, but by creating something as special as the Camon 11, it sure proves that its products are as lust worthy as those that come from any other top smartphone brand. With a 3750mAh battery, the Camon 11 allows for long term continuous use that includes talk time, messaging, social media, gaming and movie watching. The Camon 11 combines the latest technology with innovative design, resulting in a forward-looking phone with virtually very thin bezels on four sides of the screen and an amazing 5.6mm virtual thickness. Between the solid material design and build-quality, performance that swings above its price-bracket and slick software experience, the Camon 11is a smartphone that makes recommendation very easy.

or the whole of 2018, global food prices reduced by year-on –year by 3.5 percent, according to the latest Organization for Food and Agriculture (FAO) of the United Nation Food Price Index (FFPI). From the report, FFPI, a measure of the monthly change in international prices of a basket of food commodities stated that, for 2018 the FFPI averaged 168.4 points was down by 3.5 percent from 174.6 points in 2017 and almost 27 percent below the highest level of 230 points reached in 2011.

“Sugar values dropped the most in 2018, with also vegetable oil, meat and dair y prices registering year-on-year decreases. However, international prices of all major cereals rose in 2018,” The FFPI consists of five commodity group price indices which are Cereal, Vegetable Oil, Meat Price, Dairy Price, Sugar Price, Over the whole of 2018, the FAO Cereal Price Index averaged just over 165 points, some 9.0 percent higher than in 2017 but still 31 percent below its peak reached in 2011. Fall-

ing world output of wheat and maize contributed to the increase in prices during 2018, although overall global supplies of all the major cereals remained more than sufficient, leaving inventories still at high levels. For the year as a whole, the FAO Vegetable Oil Price Index averaged 144 points, down 15 percent from 2017 and reaching the lowest level since 2007, with palm oil prices registering the largest decline amid weak global demand accompanied by an accumulation of stocks in major producing countries.

Living under poverty line How Nigerians are struggling to survive

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

Bailey.oluwabunmi@businessdayonline.com

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

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

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

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

Analyst: Bunmi Bailey Graphics: Fifen Eyemisanre Famous

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

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

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Thursday 17 January 2019

VC Fund: Founders Waterloo or leverage? FRANK ELEANYA

enture capital (VC) funding refers to the sum of money investors commit for investment in early-stage companies. It has become one of the popular sources of funding for technology startups across the world and in Africa. In fact, some of the biggest funding rounds African startups have recorded in recent times, have been led by venture capitalist firms both home and abroad. Yet, some startup founders see VC funds as a dive into a blackhole – one never really knows what comes out on the other end. “As grateful as I am for the opportunity with Iroko TV, I will probably never start or run a venture backed startup again,” Jason Njoku, founder of Iroko TV tweeted to his more than 38,000 followers on Saturday, 12 January. His tweet was in response to a New York Times article by Erin Griffith titled, “More Start-ups Have an Unfamiliar Message for Venture Capitalists: Get Lost”. In the article, Erin Griffith highlighted a conversation between 50 start-up found-

ers who were united by their unsavoury experiences from dealing with venture capitalists. Most of the founders have decided that the expectations that come with accepting venture capital funding are not worth it. Apparently, Njoku’s experience was similar and over the last 18 months since he realised, he said he has advised founders who sought his guidance to avoid raising too much capital, too quickly. He recommends generating strong cash-flow from whichever means necessary.

Olumide Olusanya, founder of online supermarket Gloo.ng agrees with Njoku. For him, any founder that is building his business in such a way that it necessarily will require VC funding does not know what he or she is doing. Far from being a founder’s Waterloo, VCs can be a real boost - leverage - to a good idea says Adedeji Olowe, CEO of Trium. “First VCs are in for the money and if you do not have your goals aligned and also share similar values or strategy, it would end up in

Binance Labs appoints Nigerian to oversee blockchain investments in Africa FRANK ELEANYA

inance Labs, the venture capital arm of Binance, the world’s largest and community focused crypto exchange, on Monday, has announced the appointment of Yele Bademosi, as a director in the company. Yele Bademosi who until his appointment is the founder of angel funds investor, Microtraction, is expected to focus on developing the blockchain ecosystem in Africa, as well as sourcing blockchain projects and leading the Lagos chapter of the Incubation Program. The 10-week incubator program is designed to help entrepreneurs deliver products with clear product-market fit. “My personal mission is to accelerate Africa’s tran-

sition into a sustainable and developed economy by leveraging innovation, capital and policy,” Bademosi tweeted after the announcement. Bademosi who dropped out of medicine school to pursue a future in the technology industry, founded Microtraction in July, 2017. Based in Lagos, Microtraction is backed by African and global investors, including Michael Seibel, CEO of Y Combinator, and Pave Investments, and African multifamily office. According to data from Crunchbase, Microtraction has invested in six Nigeria tech startups, 4 of which it was the lead investor. “A p p r o x i m a t e l y 1 8 months ago, I came to a first principles realisation about the powerful potential of blockchain and crypto to be core technologies in making this mission a reality,”

he wrote. “Blockchains are the first techno-social innovation that enables the coordination and cooperation of individuals and entities towards a common objective without a central authority or a trusted third party.” One of the first companies Bademosi invested in was BuyCoins.Africa which provides a platform for users to buy and sell bitcoin, Ethereum, Litecoin and Bitcoin Cash instantly using Nigerian cards or bank account. “On a high level, my mandate is to leverage blockchain to accelerate Africa’s transition to a sustainable and developed economy. I believe very strongly that blockchain adoption will come from frontier markets that will leapfrog the existing financial systems as well as governance and economic models,” Bademosi said.

a load of regrets, it would end up in a load of regrets,” Olowe told BusinessDay in a WhatsApp chat. “If your VC can also not provide strategic advisory and open doors for you, they would not be worth the dollar.” A Harvard Review Business report makes the case that venture money is not long-term. The idea is to invest in a company’s balance sheet and infrastructure until it reaches a sufficient size and credibility so that it can be sold to a corporation or so that the institutional public-equity can step in

and provide liquidity. In essence, the venture capitalist buys a state in an entrepreneur’s idea, nurtures it for a short period of time, and then exits with the help of an investment banker. Collins Onuegbu, executive vice chairman of Signal Alliance and a serial tech investor also told BusinessDay that VCs operate within agreed norms and regulations, just like other financing institutions such as banks. While some businesses will see VCs as lifesavers others will have bad experience with them and will prefer to survive without them. Onuegbu explains that if a startup wants to go the VC route there is a need to first understand the terms, just the way it needs to understand the lines when borrowing from banks. “I advise startups not to rush in and think venture raising is their business: and then you raise money and they demand returns, you complain,” Onuegbu said. “Venture Capital companies are set to make returns by financing your business. To make returns for their shareholders, they will make sure you have the discipline to keep your side of the bargain.”

Last year, a report by Crunchbase identified 51 viable Africa-focused VC funds globally. These VC funds have between 7-10 investments or more in African startups, from seed to series stage. Of the 51, 22 not only have their headquarters in Africa, they are being managed by Africans. Ahmed Razaq, founder and CEO of CowryWise told BusinessDay that whether or not a startup decides to take VC funding there are pros and cons waiting in any case. To become a venture-backed company also means to take on the pressure to deliver what is promised and grow as fast as it’s projected. “The positives for properly sourced venture funds are immense,” Razaq said. The opportunities include getting more capital, mentorship, access to resources, and opportunity to experiment quickly. “Perhaps, a broad based survey of startups cutting across venture backed and bootstrapped ones can help shed more light into the discussion. It is very important to put the peculiarities and terms of venture funding into consideration when analysing the outcome,” he said.

Nokia 8.1 makes Nigeria debut CALEB OJEWALE

he Nokia 8.1, which is the newest addition to the phone maker’s flagship range of devices, has been unveiled in Nigeria by HMD Global the company that currently owns the Nokia brand. Running the latest Android software, Android 9 Pie, the Nokia 8.1 joins the line-up of Nokia smartphones in the Android One family, described as “delivering the best version of Android innovations and software experiences.” A s w i t h o t h e r No kia smartphones in the same category, the phone’s manufacturers say the Nokia 8.1 “punches above its weight with extraordinary imaging achieved by its highly sensitive, industry-leading camera sensor, ZEISS Optics and Optical Image Stabilization (OIS). Proprietary Pure Display screen technology with HDR 10 support along with highly accurate colour reproduction delivers enhanced viewing experiences even in bright sunlight, while the chipset ensures smooth

performance for up to two days per charge.” Joseph Umunakwe, general manager, West, East and Central Africa at HMD Global said in a statement, “We’ve seen great success in the value flagship category with each of our smartphones in this class consistently introducing new premium experiences to our fans. With the Nokia 8.1, we are further pushing the boundaries in this segment. We offer accelerated performance with a first-class processor architecture, dual cameras with an industry-leading sensor, OIS and ZEISS Optics for great low light imaging, and our new PureDisplay HDR screen technology.

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

“As well as delivering the meticulous craftsmanship and build quality of the renowned Nokia smartphone design, we have also brought the Android 9 Pie experience to our fans, so they can enjoy the latest Android innovations including new Digital Wellbeing features. Our fans are at the heart of every design and engineering decision. We want to give them premium experiences – we hope they agree that the Nokia 8.1 embodies engineering excellence at great value.” The Nokia 8.1’s great low light imaging performance comes from a perfect blend of software and hardware. Its 12MP main camera with ZEISS Optics has an industry-leading 1/2.55” super sensitive sensor with large 1.4 micron pixels for precise light capture, delivering exceptionally detailed images. With its combination of Optical Image Stabilisation (OIS) technology and superfast autofocus, the Nokia 8.1 is less likely to be impeded by shaky hands when capturing crisp images and videos.

Thursday 27 December 2018

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CJN Trial: how the bar showed up baring fangs!

he buzzers, which went off on Saturday January 12, 2019 with the news of the planned arraignment of the Chief Justice of Nigeria (CJN) at the Code of Conduct Tribunal (CCT), were like gongs of war, not just within the legal profession but across the country! As the news filtered out from online news platforms, citizens, particularly lawyers picked up their phones in utter disbelief, seeking clarification as to the petition that led to this planned arraignment of the head of Nigeria’s judiciary on MONDAY (in two days!) January 14, 2019. First questions, “When was this petition received? When were the findings forwarded to the Code of Conduct Tribunal? What are the charges? When were the charges preferred against the CJN? etc. It was difficult for many to comprehend that Nigeria’s justice system, one of the slowest in the world had become this swift and proactive – setting in motion the trial of the Nigeria’s CJN in motion in less that 24 hours. What this meant was that, within a couple of days, a petition was received, investigative activities carried out, parties interviewed, reports written, reports vetted, recommendations made; charges served (on January 11th, 2019) for arraignment on the Monday January 14th 2019! A member of the bar described this “swiftness” as “A very efficient wheel of Injustice!” Indeed, the progression of the case seemed just that, to many Nigerians. That notwithstanding, the bar in its usual “Aluta Spirit” needed no prodding as both senior and junior lawyers flung across the country agreed with one voice that this was one battle they were going to take on fearlessly. Here are some sound bites we received from stakeholders in the industry: PAUL USORO, SAN PRESIDENT, NIGERIAN BAR ASSOCIATION “Nigerians have witnessed again the targeted assault of the judiciary by agents of the Federal Government of Nigeria (“FGN”) epitomized the by media trial of the Chief Justice of Nigeria, Honorable Justice Walter Onnoghen, GCON. The Nigerian Bar Association unequivocally condemns this assault, intimidation and desecration of the Judiciary by FGN agencies and demands that it be stopped immediately. n Nganjiwa v Federal Republic of Nigeria (2017) LPELR-43391(CA), the Court of Appeal made it very clear that any misconduct attached to the office and functions of a judicial officer must first be reported to and handled by the National Judicial Council (“NJC”) pursuant to the provisions of our laws. Only after the NJC has pronounced against such judicial officer can the prosecuting agencies of the Federal Government proceed against him.

Wole Olanipekun, SAN and others at the CCT on Monday

The Petition that triggered the CCB action was on its face received by the Bureau on 09 January 2019 and the Charge was promptly drafted and is dated the following day, 10 January 2019 – giving the CCB a record 24 hours for completion of its investigation and the drafting of the said Charge and ancillary processes! If one contemplates the fact that the CCT arraignment is scheduled to take place on 14 January 2019, we have in total a record number of 3 (three) working days between the receipt and processing of the petition, investigation, preparation of Charge and ancillary processes and the arraignment! Such unprecedented speed and efficiency in Nigeria’s criminal justice administration! It is clear, given the rush with which this matter was conducted by the CCB, that the NJC was not privy to it and did not conduct its mandatorily required disciplinary processes prior to the filing of the Charge before the CCT.5. We still wonder why the FGN choose to deviate from the laid down and explicit provisions of the law as expounded in Nganjiwa v FRN (supra). Could it be that it was misadvised? Or is this a naked show of power and force by agencies of the FGN? And why embark on the media trial of the CJN? This, unfortunately, is a predilection of the FGN’s prosecuting agencies with the possible exception of the Federal Ministry of Justice. Could it possibly be a coincidence that the current assault on the judiciary is taking place only weeks to the 2019 National Election? Apart from the conduct itself being wrongful and deplorable, its timing is condemnable. FGN will find it difficult to convince any reasonable person that its assault against the CJN and by

extension the judiciary is not aimed at emasculating that arm of the government and intimidating our Judges ahead of the 2019 National Elections. In our afore-referenced International Anti-Corruption Day Statement, the NBA had deplored “conducts that qualify as . . . political non-accountability, absence of transparency and impunity in public service.” The FGN’s conduct in this instance qualifies, amongst others, as “impunity in public service”. The impression must not be created that the agencies of the Executive arm of the FGN are interested in destabilizing and laying prostrate the other arms of the Government and in the process eliminating and destroying any and all voices of dissent and checks and balances. That is not desirable for the democracy that we strive to build neither is it good for the image of the Government. We urge restraint on the part of Government and demand that the CCB follow due process in proceeding against the CJN by complying with Nganjiwa’s Judgment (supra) and other similar judicial precedents. This continuing attack on the justice sector must cease forthwith. FGN and its agencies must desist from debasing the rule of law.” CHRISTIAN LAWYERS’ FELLOWSHIP OF NIGERIA (CLASFON) “In a statement signed by its President Arome Moses Okwori and secretary, Olatunji Omole, the Christian Lawyers’ Fellowship of Nigeria (CLASFON) expressed dismay at what it described as “disturbing news” of the decision of the Code of Conduct Bureau (CCB), an agency of the Federal Government of Nigeria, to arraign the CJN before the Code

of Conduct Tribunal (CCT). The statement read, “It is the considered view of CLASFON that the decision of the executive arm of the Federal Government of Nigeria through its agency, the CCB, is misconceived, unconstitutional and a naked display of arbitrary powers by the executive arm of government. The action of the FGN undermines the principle of the rule of law and the doctrine of separation of powers which are fundamental principles of the Nigerian Constitution…. And on and on , it went. The provisions of sections 153 to 161 of the 1999 Nigerian Constitution, the Third Schedule to the Constitution, the National Judicial Policy of April 2016, the Judicial Discipline Regulations of 9th March 2017, the Revised Code of Conduct of Judicial Officers of the Federal Republic of Nigeria of February 2016 made by the National Judicial Council pursuant to its constitutional powers and the decision of the Court of Appeal in Nganjiwa v. Federal Republic of Nigeria [2017] LPELR-43391 sum up the extant law on the procedure for dealing with cases of misconduct by serving judicial officers. Section 161 (d) of the 1999 Nigerian Constitution defines misconduct to mean “a breach of the Oath of Allegiance or oath of office of a member or a breach of the provisions of this Constitution or bribery or corruption or false declaration of assets and liabilities or conviction for treason or treasonable felony.” (emphasis supplied) The Chief Justice of Nigeria is the Head of the Judiciary, the third arm of government and Chairman of the National Judicial Council and the Federal Judicial Service Commission, two important executive bodies established by Section 153 of

the 1999 Nigerian Constitution but the holder of the office is primarily a judicial officer. The Chief Justice of Nigeria as a judicial officer and a member of the National Judicial Council is amenable to the disciplinary control of the National Judicial Council. (Paragraph 21(b) and (g) of the Third Schedule to the 1999 Nigerian Constitution. Section 158(1) of the 1999 Nigerian Constitution states inter alia: “In exercising its power … to exercise disciplinary control over persons, … the National Judicial Council… shall not be subject to the direction or control of any other authority or person.” From the foregoing, we consider the NJC as the appropriate organ to deal with complaints of misconduct brought against the Chief Justice of Nigeria in the first instance. The decision of the executive arm of the Federal Government of Nigeria to arraign the Chief Justice of Nigeria before the CCT on allegations of misconduct is therefore premature as well as a usurpation of the constitutional functions of the National Judicial Council. We call on the executive arm of the Federal Government of Nigeria to withdraw the charges against the Chief Justice of Nigeria, Hon. Justice Walter S. N. Onnoghen, GCON and refer any complaint of alleged breaches of the Code of Conduct against the Chief Justice of Nigeria to the National Judicial Council for investigation and consideration. We call on the executive arm of the Federal Government of Nigeria to desist from acts of desecration of the Judiciary, which were heightened in October 2017 with the invasion of the residences of some judicial officers. This is against the background that about 15 months after the infamous acts no complaint has been brought against some of the judicial officers whose residences were violated before the NJC and no public apology has been offered for the illegal acts of the Department of State Services (DSS). CHRIS UCHE, SAN ”This is carrying the battle for 2019 too far. To attempt to intimidate and destroy the Judiciary because of the forthcoming presidential election is a ploy that must be stoutly and vehemently resisted by the legal community. ”The legal community must rise in unison against this attack on all of us. We will not allow this to happen otherwise the legal profession is finished. The Attorney General of the Federation should not allow himself to go down in history as the one under whose watch the Judiciary in Nigeria was destroyed. His predecessors like Clem Akpamgbo SAN, Abdullahi Ibrahim SAN, Bayo Ojo SAN and others strove to strengthen the Judiciary as an institution. Those who allow their heads to be used for breaking Continues on page 26

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Mental Wellness and the Lawyer

ometime ago, whilst reading generally, I googled key issues arising in 2018 within the legal and business sphere and I found that mental health awareness was reportedly one of the key areas of global attention during this period. We have many people to thank for the burgeoning campaign for empathy and communal support for the prevention and mitigation of mental illness, but we are yet to cut it when considering our understanding of what it is and how best to deal with it. In my last article, I made a succinct reference to the need for mental care by lawyers, but as I continue to observe the evolution of the legal community, I think it is important to drill down on this issue, hence this article. Let me start by asking some questions: • “What has been done about closing the gap between our legal education system and the competency required for the practice of law and is it enough?” • “How many lawyers have access to reasonable health insurance or updated pension accounts?” • “How do retiring lawyers fare after practice?” All these and more have been highlighted as major stressors which trigger emotional distress and the fact that we do not have near accurate statistics on these issues is a significant part of the problem. It is important to point out that in recent times, the global legal community has deemed it fit to increase the content on general wellness/health of lawyers at our conferences and gatherings and this is commendable. However, the action in this regard must be

more intentional and driven at implementing strategic action. Just in case you are wondering why I appear to be escalating this conversation, let me share some statistics, according to the World Health Organisation (WHO), a suicide occurs every 40 seconds and it is projected that the rate of occurrence will increase to 20 seconds by 2020. Additionally, it is reported that substance abuse by lawyers has risen by about 30% and this is a critical factor contributing to the massive uptick in mental illness and general deterioration in the state of health of many lawyers. More alarming is the fact that within the legal community, research has shown that problematic drug disorders have been directly linked to the stress from work, as lawyers seek and adopt crutches to help them deal with the stressors that come with the profession. Given the responsibility vested in lawyers and the general assumption that they are to “keep it all together”, you can imagine the gasket the legal

community is sitting on should the underlying causes bloom. Like rape, mental illness is one of those elephants in the room that is communally avoided. By tradition, mental illness is a taboo and if you are minded to check, even in the most sophisticated professional gatherings, mental illness is spoken of with disdain. In fact, there are proverbial sayings that proscribe marriage and/or engagement with folks with mental illness as it is an assumption that it pervades generations, in other words, it is a stigma to be disassociated with. To bring it closer home, other illnesses are worn as a badge of honour and when one is ill, friends provide support to nurse one to health; the converse is the case when it comes to mental illness, the subject becomes a pariah and is often without support. As a lawyer, your greatest resource is your mental input into the work you do, the ability to rationalise is germane to all our dealings; thus, it goes without saying that we should, and we must, prioritise the discourse on mental wellness. For clarity, while I speak generally on mental illness, my focus is on preventive care and I have outlined my thoughts on this in the following paragraphs. Many lawyers work under unfavourable conditions. If we did an empirical investigation, we would find that many lawyers work without basic health insurance, pension or even the opportunity to receive treatment or compensation in the event of disease or death in the course of work. Additionally, the demands of work, where not properly man-

aged also become stressors which could prevent wellness. These and more are potential landmines. The conversation on the need to improve work conditions across board is alluded in almost every gathering of lawyers but we need to augment towards action. The bottomline is important, so is the critical human resource deployed to attain it. It is therefore important that new standards be set in this regard. From basic issues like remuneration, conditions of the work environment, hours and system of work delivery, to more subjective issues like career advancement or competency framework, there must be an overhaul. We need to think more critically about the people management system adopted within this community and its impact on the individual and take positive steps towards creating balance in this regard. Secondly, clusters are formed to boost impact and the Nigerian Bar Association (NBA) is the formal cluster for lawyers in Nigeria. If there is to be any strategic action on mental wellness by lawyers, I believe it is to be driven by the NBA, this is, in my opinion, the best way to ensure that the action in this regard benefits most. According to the WHO, mental health (or wellness) is defined as “a state of well-being in which the individual realizes his or her own abilities, can cope with the normal stresses of life, can work productively and fruitfully, and is able to make a contribution to his or her community.” This is a succinct and very clear objective that can be adopted by the NBA. Additionally, the NBA may consider strategic action tar-

CJN Trial: The ‘fangs’ of a united... Continued from page 25 the coconut may not be around to drink the water therefrom.” AFAM OSIGWE, FORMER GENERAL SECRETARY, NBA “Looks like an attempt to emasculate the judiciary. We cannot sit idly by and allow this. There comes a time when we must say no to impunity, arbitrariness and brazen abuse of the legal process. How do you explain that a petition received by the Code of Conduct Bureau on January 9, 2019 was forwarded to Code of Conduct Tribunal same day. Charges preferred on January 11, 2019 and the CJN to be arraigned on January 14, 2019. This cannot be anything but an attempt to intimidate the judiciary. It goes beyond fighting corruption. It’s brazen intimidation and attempt to infuse fear in judges.

SEBASTIAN HON, SAN “While I know that the Chief Justice of Nigeria does not enjoy immunity from criminal prosecution, I see this move by the Federal Government as dangerously political and tendentious. We all woke up to see a petition leaked to the informal or social media, allegedly received by the Code of Conduct on January 9th, 2019. Then, we are told the charges have been filed against the CJN. Why this supersonic rush?”

AZEBI BOBOBRAYE “This is truly bizarre. Dark and ominous clouds hang over Nigeria.” His Story... The case against the CJN, Hon. Justice Walter Onnoghen began with a petition by the group known as the Anti-Corruption and Research Based Data Initiative, in which it alleged wrongdoing in his asset declaration. The petitioners alleged that Nigeria’s most senior judicial officer, maintained illegal accounts containing foreign currencies and did not declare them. And that the said petition was brought “bearing in mind the imminence of the 2019 elections and the overwhelming role of the judiciary both before and after the election.” Responding to the charges against him, the CJN in an official statement said, that his asset declaration form numbers SCN 00014 and SCN 00005 were declared on the same day, 14/12/2016 because he forgot to make a declaration of his assets after the expiration of his 2005 declaration in 2009. Following his appointment as acting CJN in November, 2016, the need to declare his assets anew made him realize the mistake. “I then did the declaration to cover the period in default. I did not include my standard charted bank account in SCN 000014 because I believed they were not opened. I did not make a fresh declaration of asset after my substantive appointment as CJN because I was under

CJN at the Armed Forces Rememberance Day

the impression that my SCN 000015 was to cover that period of four years which includes my term as CJN,” He said in a statement dated January 11th, 2019. The CJN was on Monday represented by a team of over 40 lawyers led by Chief Wole Olanipekun, SAN, while several others showed up at the tribunal in support and solidarity for the head of Nigeria’s judiciary. The prosecution was led by a former Director of Public Prosecution (DPP) in Kano State, Aliyu Umar, SAN, who also led the government’s prosecution team that was to prosecute the Senate President Bukola Saraki and his deputy, Ike Ekweremadu for alleged forgery of Senate rules. Soon after sitting commenced, the Tribunal asked if the Defendant had been served and the Registry the announced that the charge was served on the Defendant’s PA. Wole Olanipekun, SAN stood up to announce his appearance for the Defence, alongside others, and was

Thursday 17 January 2019

cut short by the prosecution stating that the Defendant was only allowed five Counsel on the Record. Defence Counsel ignored him and continued announcing appearances of the others with him. Prosecution proffered arguments against the defendants’ absence. Olanipekun thus informed the Tribunal that an application had been filed today challenging Tribunal’s jurisdiction. Olanipekun went on to establish that the issue of arraignment does not arise as the Tribunal’s jurisdiction is being challenged. Prosecution argues to the contrary. States that defendant having directed that his PA be served, makes the service proper but that if Defence insists then Tribunal should order that Defendant be served afresh and this time personally with specific orders not to take any instructions from Defendant this time as to service. Citing, Section 266 of the Administration of Criminal Justice

geted at: • relentlessly championing the promulgation of laws which provide more intentional care systems for preventing mental illness; • setting up a help-line through which lawyers can access help where they are under pressure or sick; • setting standards that guarantee minimum satisfaction at work for the average lawyer; and • Maintaining empirical index on the wellness of lawyers and creating fora for periodic review. Lastly, lawyers must take personal responsibility for their wellness. Each one of us should be conscious to identify our stressors and manage them effectively. Changing paradigms in any sphere is not a walk in the park, but to deal with a problem, it must be stripped of its disguises. There is no client too important, no case, partnership, failure to make partnership, earning or opportunity that trumps the need for the management of our human resource and it is imperative that we do all that is necessary for preservation. As such, it is no oddity if lawyers become the face of the mental wellness advocacy. OYEYEMI ADERIBIGBE is a Senior Associate at Templars. She is also the current Vice-Chairman of the Young Lawyers’ Forum of the Nigerian Bar Association -Section on Business Law and the Young Lawyers’ Committee Liaison Officer of the African Regional Forum of the International Bar Association. Feedback – Oyeyemi.aderibigbe@templars-law.com; yemiimmanuel@yahoo.com.

Act (ACJA), defense Counsel, Wole Olanipekun, established that the defendant challenging the Charge, need not be present for an “Interlocutory” application. He also cited INEC v Ogwubego Pt 1620 emphasized that the case which was decided last year supported his contention that the defendant need not be present. Tribunal asked him if the essence of Service is not to make defendant aware of Charge? Olanipekun responded saying that it that did not apply to Criminal proceedings. The Prosecution then applied for the Tribunal to order that defendant be served personally. Defense Counsel, did not oppose this application but asked for ‘Costs’. Granting this application, the tribunal stated that it would give “ a very short date for the parties to come back.

Federal High Court Order

Presently, the exparte order granted late Monday by Justice Maha of the Federal High Court in Abuja restraining the Code of Conduct Tribunal from prosecuting the CJN, has further thrown up conflicting legal opinions on the issue. While some believe that the CCT is a coordinate court with the Federal High Court and as such, has acted ultra vires its powers (i.e. has no power to make such an order), another school of thought holds the view that the Federal High Court is a Superior Court by virtue of section 6 of the 1999 Constitution whereas, Continues on page 27

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TOP 10 legal business & tech trends for 2019 As the year starts out, stakeholders in Nigeria’s legal industry are coming up with projections and forecasts for the direction the industry would take in 2019. Studying these projections, LEGALBUSINESS has put together a list of 10 trends that analysts believe would hold sway for Nigerian law firms and lawyers in 2019. Below, we share our list of TOP TRENDS IN 2019. 1. Artificial Intelligence I, which is gradually making its way into the Nigerian legal space, is expected to make a huge impact in the industry in 2019. It is predicted that the use Artificial Intelligence (AI) will not only be used effectively in top tier law firms but Nigeria’s med-level law firms will be willing-partakers in this technological advancement from 2019.

2. Data analytics will grow and thrive in 2019 2019 will see more business lawyers using data analytics software to speed up transaction and case management tasks, such as distributing cases, projecting revenues, projecting firm budgets and predicting business outcomes.

4. Gender Equality

study of the market reveals that there is more awareness for gender related issues, with a deliberate move by many law firms to improve on gender diversity. Thus, it is predicted that several law firms would be taking critical steps towards increasing gender equality with gender-focused firm policies.

5. Going Green Motivated by environmental concerns, more lawyers would be looking to ensure that their law firms contribute their part in ecoconscious operations of their offices and practices.

7. Restructuring and Mergers A study of legal market trends in 2018 reveals that 2019 may see amongst other things, quite a number of legal business restructuring; greater partnerships; more lateral hires and more industry mergers between the 2nd and 3rd quarters of this year.

8. Business Efficiency Industry analyst predict that top tier and large law firms will continue to focus on efficiency and cost control measures, with a view to driving and increasing profitability and cash flow generation in 2019.

9. Legal tech products and services Analysts further predict an increase in commercial uses for legal technology services and products: AI, Block Chain services for smart contracts, deeds management, e-voting, etc.

6. Cyber Security ith data breaches on the rise globally, Nigerian law firms who operate internationally with cross border clients and transactions will continue to place ‘Cyber security right at the top of their ‘To-do’ lists and operational budgets for 2019. A 2018 study reveal that 80 percent of the largest firms in the United States went through a malicious breach, with one firm alone experiencing a leak of 11 million files. Top Nigerian law firms would be mindful of this data.

10. Alternative Billing Systems

3. Legal Service Consumption Trends

With the evolution of time, it is projected that in 2019 lawyers will be seeking better pricing models with alternative billing systems and accounting software for, productivity, cost effectiveness and increased profitability.

In the face of volatility rising from the 2019 elections, consumption trends for legal services may swing both upwards and downwards based on election outcomes and other risk factors.

CJN Trial: The ‘fangs’ of a united... Continued from page 26 the Code of Conduct Tribunal (CCT) is not. This latter group, argues that the CCT is not mentioned in section 6 (5) of the constitution, and by the provisions of this law, only courts established by this section are superior courts of record. They thus hold that, if the CCT is not a superior court of record, then the Federal High Court has the inherent vires to exercise supervisory jurisdiction over the CCT, Which it has done in the instant case. The Federal High Court in Abuja on Monday gave an order to stop the Federal Government from arraigning the Chief Justice of Nigeria, Justice Walter Onnoghen, before the Code of Conduct Tribunal. In his ruling,

on two ex parte applications, Justice Maha, ordered parties to maintain status quo till January 17, 2019. He ruled in the two different suits that the defendants should be served with all the papers filed and they should appear in court at the next hearing. One of the two suits marked FHC/ABJ/CS/27/2019 was filed by incorporated trustees of the Centre for Justice and Peace Initiative. Those joined as defendants in the suit, the Attorney-General of the Federation and Minister of Justice, Mr. Abubakar Malami, the Chairman of CCT, Danladi Umar; the National Judicial Council, the Inspector-General of Police, ‎Mr. Ibrahim Idris, and the Senate President, Dr. Bukola Saraki. The other suit marked FHC/ABJ/

was moved by Jeph Njikonye.

CJN presses on with vital duties

CJN at the Armed Forces Rememberance Day

CS/28/2019 was filed by the incorporated trustees of the International Association of Students Economists and Management. The suit has as the defendants, Attorney-General of the Federation and Minister of Justice, Malami; the

CCT, the CCB, the Chairman of CCT, Umar; and the Inspector-General of Police, Idris. While the ex parte application in the suitFHC/ABJ/CS/27/2019wasmovedby Lawal-Rabana (SAN), the ex parte application filed in suit FHC/ABJ/CS/28/2019

In another development, the Chief Justice of Nigeria, Hon. Justice Walter Onnoghen was spotted during the the Interdenominational Church Service for the 2019 Armed Force Remembrance Day Celebration in Abuja on the day he was to be arraigned - Monday January15, 2019 It was obvious that the CJN who did not appear for his trial at the Code of Conduct Tribunal (CCT), had more pressing official duties on his mind. In his defense, his Counsel, Wole Olanipekun, SAN had told the Tribunal that there was no provision of the law which demands that a defendant challenging a charge be present during an interlocutory application.

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Access to credit and regulated environment for credit reporting required for Nigeria’s GDP growth – Anthony Idigbe, SAN THEODORA KIO-LAWSON

he senior partner, Punuka Attorneys and Solicitors, Anthony Idigbe, SAN has said that the growth of Nigeria’s Gross Domestic Product (GDP),will require wider access to credit and a regulated environment for credit reporting. Idigbe said this at the just concluded conference of Western Attorneys-General (CWAG) and African Alliance Partnership (AAP) at the Lagos Business School in Lagos. The event, which was held in collaboration with the Central Bureau Association of Nigeria (CBAN) was geared towards improving access to credit in order to grow Nigeria’s GDP. The founder of Credit Registry, Taiwo Ayedun who also spoke at the event, said that there was need for increased access to credit for the economy to grow. Ayedun who said this during a special session on Credit Reporting organised by the Credit Bureau Association of Nigeria (CBAN), Conference of Western Attorney General (CWAG) and African Alliance Partnership (AAP) in collaboration with the Lagos Business School in Lagos, noted that good credit reporting and scoring behaviour would aide consumer lending which has direct impact

on the GDP and economic growth. “The US GDP is about $19 trillion,” he noted. “And research shows that mortgage and consumer spending concluded 67 per cent of the US GDP. A lot of this consumer and mortgage spending is based on the credit given by American banks. So it makes sense that if Nigeria is going to increase its GDP, it would have to help the banks give more credit to Nigerians.” Ayedun continued, “According to a 2017 survey, global credit coverage around the world shows that North America, Canada, United States, Germany, the United Kingdom and Ireland are 100% covered, while Nigeria has only about 7.8 per cent coverage. However, what this proves that a society where trust is well established, there is more commerce going on.” In his views, more credit flow to consumers and small businesses, will see increased economic activities and the quantum of these business transactions will lead to more productivity. “So a consumer that has an average job if they can access credit, they would spend more and when they spend more, it enhances economic activities and the producers would have to increase production to meet the demand and ultimately leads to employment generation,”

L-R: Prof. Olawale Ajai, Professor of Legal Studies and Political Environment of Business, Lagos Business School, Robert Sola, Attorney Specialising in Credit Reporting Litigation, USA, Taiwo Ayedun, Founder Credit Registry, Anthony Idigbe, SAN, Senior Partner, Punuka Attorneys & Solicitors, Jameelah Sharrieff-Ayedun Managing Director/CEO, Credit Registry at the just concluded Credit Reporting Workshop organised by CWAG/AAP in partnership with Lagos Business School and Credit Bureau Association of Nigeria (CBAN) at the LBS Campus in Lagos.

Ayedun said. On challenges hindering credit in Nigeria, he said interest rates are a major interference to the growth of credit in Nigeria. A representative of the Central Bank of Nigeria (CBN) who was at the workshop, called for a downward review of interest rates, which according to him would substantially increase access to credit. He said, “One of the things I

think would help individuals and small businesses to take loans is an affordable interest rate because if you take loans at a very high interest rate it makes it difficult to pay back.” “Also one of the things lenders are not using banks are not yet using data analytics to make decisions yet, they still treat everyone the same way despite the fact that there are credit scores. This is a

major challenge that needs to be addressed and banks need to build capacity internally to be able to do consumer credit on a very large scale. He also maintained that with an increase in credit, policy makers need to ensure these credits are not mostly given to business owners and consumers for import purposes, as this would ultimately defeat the purpose, i.e. GDP growth.

PERSPECTIVE

The CJN’s CCT trial: Wrong Idea, Wrong Law?

n a move widely interpreted as motivated by either political desperation or ruthless Machiavellism, the Presidency, through the Attorney-General of the Federation, Abubakar Malami, on Monday, charged the Chief Justice of Nigeria (CJN), Hon. Justice Walter Onnoghen, before the Code of Conduct Tribunal, Abuja allegedly for falsely declaring or failing to declare his assets, contrary to Section 15(2) of the Code of Conduct Bureau and Tribunal Act. The sixodd charges are as follows: That the CJN failed to submit a written declaration of his assets within 3 months of becoming a Justice of the Supreme Court in June 2005; That on assuming office as CJN in December 2016, His Lordship failed to declare a US Dollar account which he maintained with Standard Chartered Bank since 2011; That on assuming office as CJN in December 2016, His Lordship failed to declare a Euro Domiciliary account which he maintained with Standard Chartered Bank since 2011; That on assuming office as CJN in December 2016, His Lordship failed to declare a British Pounds Domiciliary account which he maintained with Standard Chartered Bank since 2011; That on assuming office as CJN in December 2016, His Lordship failed to declare an e-Saver account

which he maintained with Standard Chartered Bank since 2011; That on assuming office as CJN in December 2016, His Lordship failed to declare a Nigerian Naira account which he maintained with Standard Chartered Bank since 2011 Is there more to the charges than meet the eyes? The timing of the charges, a few weeks to the Presidential elections next month, has predictably elicited a storm of public reaction, mostly negative. Public perception seems to be that the President has decided to go for broke, thereby confirming a long-held suspicion that he is not altogether comfortable with Hon. Justice Onnoghen as the head of the judiciary. If this is correct, it is not inconceivable that, as part of a grand strategy, President Buhari’s advisers have reasoned that his re-election might be imperiled by a legal challenge which would culminate in an appeal before an Onnoghen-led Supreme Court. To forestall this, they have probably reasoned that the best way out would be to get the CJN out of the way willy nilly, by forcing him to recuse himself from the panel of the apex court which will handle any such challenge. While this might seem speculative, it is certainly not far-fetched.

I intend to steer well clear of such speculations or even any consideration of the merits or otherwise of the charges against the CJN, as it would be grossly inappropriate to do so, for obvious reasons; the CJN himself admonished all of us against doing that (commenting on matters which are sub judice) almost a year ago to the day. Accordingly, I shall confine myself to a discussion of what I perceive to be the legality or otherwise of the law under which the charges have been laid, namely the Code of Conduct Bureau and Tribunal Act. For reasons which will shortly follow, I believe that they should have been laid under the provisions of the Code of Conduct for Public Officers

contained in Schedules Three and Five of the 1999 Constitution. The Code of Conduct for Public Officers This is the subject of Section 153, Paragraphs 1 – 4 of the Third Schedule and the entirety of the Fifth Schedule to the 1999 Constitution. Whist the first establishes the Code of Conduct Bureau, the second sets out the powers of the Bureau, whilst the last contains the Code itself as well as the pwers of the Code of Conduct Tribunal. I believe that a critical study of both the Code of Conduct Bureau and Tribunal Act as well as the aforesaid constitutional provisions will reveal that both sets of provisions are al-

most identical. To start with, Section 153(1)(a) of the Constitution which establishes the Bureau is the same as Section 1(1) of the Act; Paragraph 1 of the 3rd Schedule to the Constitution is the same as Section 1(2) of the Act, whilst Section 3 of the Act which sets out the functions of the Bureau is replicated in Paragraph 3 of the 3rd Schedule to the Constitution, with the notable omission of the proviso to Section 3(d) of the former in the latter. This was the subject of much public debate when the Senate President, Dr. Bukola Saraki was charged before the Tribunal a couple of years ago. Paragraph 4(2) of the Act is similar to Paragraph 3(f) of Part 1 of the Third Schedule to the Constitution which empowers the Bureau to hire and exercise disciplinary control over its staff. Sections 5 to 14, inclusive, of the Act are repeated verbatim in Paragraphs 1 to 10 of Fifth Schedule to the Constitution, whilst Section 15 of the Act, under which the CJN has been charged, is similar to Paragraph 11 of Part 1 of the Fifth Schedule to the Constitution, the only difference being the minimum ages of the unmarried children of public officers, which is 21 years under the Act and 18 years under the Constitution. Abubakar D. Sani, Esq. To be continued next week

Thursday 17 January 2019

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Garden City Business Digest Widows of security operatives are the real heroes • As Elizabeth Jack-Rich Tein, emerging female philanthropist and wife of Belemaoil founder, boosts entrepreneurship, doles out N60m to 300 widows in one swoop Ignatius Chukwu

ecurity operatives who die in the course of duty are seen by the society as heroes. They die and go but leave behind wives that bear huge trauma, defend the legacies they left behind, and strive to protect the children to achieve what their late fathers desired for them. An emerging modelmother and female philanthropist and wife Jack-Rich Tein, founder of Belemaoil, Elizabeth Jack-Rich Tein, has dubbed the widows as the real heroes. By her thinking, look not just on the men who laid down their lives for the society but on the widows that are daily defending lives of the children the heroes left behind. Elizabeth made the statement as on New Year (January 1, 2019) as her N60m New Year message and declaration to 300 widows of operatives from the police, the Directorate of State Security (DSS) and Civil Defence (Nigerian Security and Civil Defence Corps, NSCDC). She did not make a mere declaration but backed this up with handouts of N200,000 cheques each coupled with rice, wrapper, mosquito net, and groundnut oil to each widow. The foundation spent over N100m organizing and helping the widows.

President of Elizabeth Jack-Rich Aid Foundation, Elizabeth Jack-Rich, flanked by Rivers State Command, Nigerian Civil Defense Corps, Mohammed Lawal Haruna, Director of Operations, DSS, Rivers State Command, Abdulkabir Unisa, the Deputy Manager, External Affairs, Belemaoil Producing Ltd., Evans Ibama and Sokaribo Oweredaba presenting a cheque of N200,000 and other food and gift items to one of the benefiting widows

As if that was not enough, Elizabeth, founder of Elizabeth Jack-Rich Tein Foundation, convinced the widows to give pleasure a chance at a dance stage. Some widows were taken to the stage while most others found themselves digging the discothèque on the general floor. They found smiles playing on their lips for once. Many of them who granted press interviews thanked the foundation (Elizabeth and Belemaoil) profusely for the financial lift, items, and the new lease of life. Most of them said they did

not receive any death benefit for their late husbands, years after the deaths. Present in persons included the Rivers State Commissioner of Police, Zaki Ahmed (who was transferred soon after the New Year); his deputy (finance & supply) Cyril Okoro; and the Commandant of the Nigerian Security & Civil Defence Corps, Mohammed Haruna. They were accompanied by the DSS boss in the state, Abdullahi Yinisa. Elizabeth, setting the tone The founder said: “We celebrate you, our mothers, and thank your husbands, fathers,

mentors, breadwinners and gallant heroes who laid down their lives for us all. I personally consider them as martyrs of our great country. “You supported them to sacrifice their lives to make our communities, cities and neighborhoods safer to live. We bear your burden and encourage you to be stronger, more united against the adversaries and let not your heart be too troubled because God is aware of your needs. “Our mothers, this token of N60m is nothing compared to the demise of your loved ones but I humbly appeal to

you to receive it as true gift of honour coming from our beloved husbands, fathers, mentors and breadwinners who took the bold steps for the betterment of our nation, Nigeria. God bless you for this honour done to us and I humbly and gratuitously say it is well because the darker days are over and the true light of God has come.” I thank my husband because your partner is your pillar. He is always happy to hear what to support. Belemaoil takes Corporate Social Responsibility (CSR) serious. It’s not about cash but to show your love. This is not because we have too much money but because of the desire to reduce stress for the widows and help in school fees for their children so as to reduce tension in the society. It is profitable to build capacity in humans. We urge you to use this help judiciously and be ready for testimonies because more will come to those who did well with this. Sam Abel Jumbo, the public affairs manager He said: “We are proud of our heritage and we are the only oil company from an oil community and with its headquarters right in the locality. This helps us to see the real problems, the real people, and apply the real solutions, always passionate in impacting on host communities. The company is indigenous to all Nigerians. The founder sends his greetings,

and to say that Belema Oil will support the foundation. Foundation Coordinator, Sokaribo Oweredaba The foundation is known for projects such as training of widows, orphans, etc and recently won an award on peace advocacy. The foundation gave free health to 5,500 persons recently. Over 10 persons were also given scholarship. We are here today remembering our fallen heroes. So, who is a hero? They are distinguished and courageous; but, widows are the real heroes. Nobody can understand everything a widow goes through. We know that when fuel finishes, a vehicle stops, but by magic, your vehicle goes on. Can any gift we want to give today substitute your husband? Today, let us play a brief role. Sokubo Sokubo; President, National Youth Council: We say no to cultism and true youths declare zero-cultism. We believe in the unity and peace of Nigeria. There shall be no evil in our communities. It was only a medical firm helping the foundation, now, an oil company is partnering with them. To the orphans, it is sad that you will not see your fathers again, but Nigerians must know that widows are the ones bearing the brunt of the crisis we cause everywhere. I urge the wives to always put the lives of their husbands in the hand of God through constant prayers.

The PH-Okpala by Etche Road: The emerging economic route

Port Harcourt by Boat With

IGNATIUS CHUKWU

ave you recently travelled from Port Harcourt to Imo State via Etche and Okpala Road? Often, bad situations create a good outcome. This is because bad times often force men to think harder and find solutions which become innovations. The FG allowed the PH-Aba highway to collapse by install-

ments over the years. The road which is a critical section of the Enugu-PH Expressway continued to crash from section to section over the years as the masses busied themselves with PDP/APC arguments or Obasanjo, Jonathan and now Buhari diatribes. They argue over which one of them hated or loved the Igbo most. At a point some years back, the Army (82 Div, Enugu) mobilised to save portions of that road. Also, all manner of criminals (kidnappers, robbers, ritual killers, rapists) now make that route their place of abode. People travel on that route at their own personal risks. Yet, this is one of the most economically viable routes in Igboland or South East, the other being the Onitsha-Owerri-PH Route. Now, the PH-Aba section, formerly a mere 35 minutes distance, has totally collapsed, and the president of the Rivers

Entrepreneurs and Investors Forum (REIF), an engineer, Ibifiri Bobmanuel, once described the road as a disused road. He lamented that its collapse has led to high cost of items in PH; and that it would affect voting choices in the coming elections. Commuters have tried to discover new routes between the two cities (PH and Aba) in the dangerous forest villages, but the most viable alternative is the Etche-Okpala discovery. Now, a commuter takes the Tank-Eneka-Iguruta Road and veers off at Igututa to Etche Route. The road is smooth and broad for a while. Soon, it enters a narrow stretch that takes the vehicle to places such as Ulakwo. Soon, Okehi emerges to the view of the traveler. Before Okehi, the local council headquarters of Etche, there is a long stretch of road flanked on both sides by forests. No man claims not to be afraid here.

The area was a danger zone in recent times where cultists and kidnappers reigned supreme. Workers going to Okehi from PH used to make calls to know if it was safe that day to pass. Rival cult gangs loyal to two major political kings in the area used to take fight to control the area. It was a dreaded area. After Okehi, the next community springs into view, Igbodo. Their popular market, Eketa, would swing into focus. The road would be patchy here because of the humus soil that makes Igbodo a farm zone due to flat plans. That is the end of Rivers State. The stretch takes the traveller to Amala town which is the first town in Imo State. Here, Rochas gets some kudos due to the god and broad road. Recall that Amala and Igbodo used to be known as Amala/Igbodo community before 1976 when the Nasir Boundary Commit-

tee pushed Igbodo to Rivers, leaving their Amala brothers in another state; the same way Nasir did separation of coinjoined towns such as Asa in Abia (Old Imo) Egbema in Imo and many others where Imo lost towns to Rivers. After Amala, Eziama will come into view, and then Okpala. The driver would now cut into his left to the Aba-Owerri Road and meet the Okpala new motor park and may drive to Mbaise after the tarred road from there. This way, the traveller has avoided the PH-Aba Road that takes the traveller to Owerrinta (Navy) and then to Okpala. The new straight road from PH to Okpala (Imo State) is causing laughter to travellers as if they breathed in laughing gas. It takes about a mere one hour from Iguruta to Okpala and additional, add another hour from your house in Ph

to Iguruta and from Okpala to your village, totaling about two hours. Your fuel gauge remains static, showing you are not losing any serious fuel throughout the journey. The road is a little bit bumby in the Rivers areas but from Amala, it is pepper-soup to Okpala. Many are rejoicing. It is not known how safety returned to that route which used to be dangerous. Kidnapping now takes place at nearby Igbo-Etche Road and Ubima Road. The Okehi Road is now safe and smooth, oh glory. Travellers hold their breath especially at the forest and lonely areas but nothing has happened to anybody in recent times so far. Police mount several points on that road but the vigilantes take the positions in forest areas and bring relief to fretting travellers. Often, the vigilantes ask for favours which are easily obliged them.

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Investing in Rivers State Rivers 2019 budget:

Wike now on economy: Agric, jobs, empowerment Ignatius Chukwu

he focus of the Rivers State 2019 budget of N480.41Bn is on economy, something some critics had demanded for over the past three years. Sources said Gov Nyesom Wike may have proved to have a listening ear. Gov Wike emerged as ‘Mr Projects” which was dropped by the Acting President (vice president), Yemi Osinbajo, and ever since, Gov Wike has continued to re-earn that sobriquet. He has pursued project execution to no end but he has said it was the first stage in building a new economy based on efficient infrastructure. Now, he seems to have turned his attention to the economy, starting with Agriculture. The budget also prioritised human capital and infrastructure development, and would continue to strengthen the state’s economy by creating jobs and complete ongoing projects. For this reason, though details were given, the governor said a substantial part of the capital budget (total capital N323Bn) was allocated to the Ministries of Agriculture, Education, Employment Generation, Empowerment, Health, Sports Development, Women Affairs, Works, and Youth Development. He said: “It’s clear by these estimates that the 2019 budget is aimed at promoting economic growth, creating jobs, tackling unemployment, taking

Governor Nyesom Wike

our people out of poverty and improving their living standards,”. Part if empowerment could be the eagerness of the Wike administration to start payment of the N30,000 new minimum wage to make workers comfortable. Many experts say workers form the best bulk of micro and small business establishment in any country because of their access to disposable income and ability to create savings than can be turned to investments. They also have the income to feed while nursing the micro or small business. Thus, Wike’s

declaration to implement the new wage as soon as the federal government reviewed resource allocation formula for states seemed to ring a bell with the workers. Analysts are therefore waiting for the budget figures and details to see how the allocations agree with the governor’s declarations and objectives. The N480.411Bn budget is based on the following assumptions; an oil price bench mark of $55 per barrel, which is 5 dollars lower than that of the Federal Government; an oil production rate 2mbpd, as against the

Federal Government’s 2.3mbpd; and an inflation rate of 10.9 per cent as against the Federal Government’s 9.9 per cent. Wike said the strategic thrust for the 2019 budget is to promote economic growth and diversification, create jobs and reduce unemployment; take as many of our people out of poverty and improve the standard of living of Rivers State. To this end, he said the administration would do the following specific things: “prioritize investments in agriculture and encourage, train and support our youths to go into commercial farming; support small and medium businesses to invest in the State and create jobs; continue to prioritize and invest in human capital development and guarantee robust access to basic social services such as education, healthcare, social housing, water and sanitation; continue to keep Rivers State peaceful, safe and secure; and continue to prioritize investments in the provision and expansion of transport infrastructure, including roads, bridges and jetties. On thus score, he was justified to christen it, “Budget of Sustainable Growth and Development.” Other aspects of the budget Financing the budget: IGR is to bring N120.9Bn; Statutory Allocation; N73.169Bn; 13% oil minerals fund N145Bn; Value Added Tax N26.377Bn; Paris club Refunds N27.337Bn; local loans N45Bn; foreign loans N30Bn; Capital receipts N300m; Exchange gain N8Bn; Prior year Balance

N4.662Bn. The governor said at about 28.39 per cent of total revenue, Oil Mineral funds is the largest contributor to the budget and hopes are on upward review of Production Sharing Agreements as they affect state governments. The IGR is the second highest contributor to the budget as the sum proposed represents about 25 per cent of the total budget. He said government decided to be as realistic as possible with the IGR projections because over the years government had been unable to match revenue potential with actuality. On IGR, government said while it is not planning to introduce new taxes and levies in 2019, he has directed the State’s Internal Revenue Service to plug all existing tax loopholes, crack down on tax defaulters and ensure full implementation of our revenue laws to shore up our IGR collections. “Furthermore, in addition to balancing the fairness of the tax system to enhance compliance, we will also continue with our efforts to increase the efficiency of revenue collection from both existing and other potential sources. “The third most viable contributor to our budget is statutory allocation. Here, our projection is over N28Bn more than that of 2018 based on the assumptions of the Federal Government. However, we are mindful of the fact that this is a revenue item we have no control whatsoever over what can accrue to the State.’ The government said it is not keen on loans anymore.

Rivers rural economy: My heart bleeds – Tonye Cole

he economy of Rivers State seems to be the first port of call should Tonye Cole, a business magnet and former CEO of Sahara Energy win the 2019 governorship election. His rebuilding may even start from the rural areas. This is because he has rather chosen to look at the state through its rural economy. For this reason, he has embarked on tour of the 319 wards in the state, assessing their economic viability and potentials. Result: His heart bleeds. Why? He told newsmen in Port Harcourt on the eve of Christmas thus: “As I go round, I see poverty, spill, dead economy, etc. I weep. I easily see why the rural areas are very violent. There is nothing to make money there.” But he thinks that if violence is eschewed, the rural areas are kick-points for a new economy. If there is nothing to help them make money, they would become jobless and resort to violence. He said: “There is a direct link between violence, insecurity, and eventually, business crash. Reverse

this and you see loss of jobs, crime, and violence.” For now, all he sees is violence and joblessness in the oil-rich state. Now, Rivers State, he says, has acquired a new reputation on violence. “It is bad so far in Rivers State. People posted here for National Youth Service Corps (NYSC) bribe their way away these days where it used to be the other way round in the past.” He wants to turn this around with

Tonye Cole

his message of peace and love in the electioneering. “Now, people are not fleeing because we are not talking violence. We will not talk violence in the 2019 elections.” If Cole wont touch violence, what when violence visits him, like he has been attacked severally on his ward rounds, and the sale of power projects to a company he is associated with (Sahara Energy) has been revoked. His response: “Sahara Energy is not one man’s company.

They have 3,300 workers in Nigeria alone. It operates by international best practices. I only have one third of the equity, and integrity is our key. Several panels sat in Nigeria so far but none interdicted the company. We always came out clean. The termination is all politics. It is not my fight because I left the company on September 1, 2018. The company knows how to respond.” Rivers politics for years is full of violence and many of Cole’s associates ask if he had gone crazy to go into politics. “I believe that strength is not only by use of violence. The choice before me is non-violence. We are toning down. Am doing my best not to match violent tone for violent tone. I am going round all the wards preaching peace and I find that people are simply tired of violence. Entire families died in some cases through beheading.” Politics: He finds that everybody wants to be on the front page everyday. “I know why I have not been speaking to publishers and editors but they are my childhood friends. I want to

stay true to myself.” He went on: “I am from a news family with a news background because my father was the CEO of Daily Times and I had constant contact with top news people like Dele Giwa and this shaped my perception of the press and integrity of the truth in the press. It was believed then that whatever was written in the press was the truth. Because the big roles played by the press those days made big impressions to many young and growing persons like me. And, Dele Giwa was like an uncle to me. His assassination shocked and shaped me.” He went on: “My understanding is; do not use the press unnecessarily; weigh what you want to put out very well. This is because too many persons are shaped by what the press writes. Perception of social media is another matter all together. Fact-checking is important and I have come across some very credible journalists. It is not easy because of pressure to write a particular story. I am cautious of what would happen.”

Thursday 17 January 2019

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BUSINESS DAY

NEWS

Investors to see accretion from Diamond-Access merger from Q2, 2019 ENDURANCE OKAFOR

T L-R: Mahmoud Isa-Dutse, permanent secretary, Federal Ministry of Finance; Toyin Bashir, representative of Banwo & Ighodalo; Babatunde Raji Fashola, minister of power, works & housing; Funmi Ekundayo, MD/CEO, STL Trustees; Zainab Shamsuna Ahmed, minister of finance; Monday Usiade, head, market development, DMO, and Patience Oniha, director general, DMO, at the presentation of the symbolic cheque of N100 billion proceeds of the FGN road SUKUK tranche 11 to the minister of power, works & housing in Abuja.

Buhari’s support thins as business leaders ... Continued from page 1

record job losses have left Kenneth regretting his decision, as is the case with most of Buhari’s staunchest supporters from the last election.

A notable big name to have since denounced Buhari in the wake of his mismanagement of the economy is former President Olusegun Obasanjo. Kenneth, like a lot of other business owners, has suffered from a flailing economy that when it hasn’t contracted, has expanded at a rate below population growth since 2015. There are no obvious answers to the impact of the government’s rising debt stock which has tripled from 2014 to N24 trillion in 2018. Corporate profits are down nearly threefold on average and jobs slashed by the most in over a decade, as weak purchasing power takes a toll on demand and businesses scramble to cut costs. As a response to the economic downturn, President Buhari plans to expand his social intervention programmes and fight corruption if re-elected. Meanwhile, the presidential candidate of the main opposition party, Atiku Abubakar, plans to run a leaner government and harness private capital to deliver a $1 trillion economy if elected president. Expectedly, Atiku’s preference for a private sector-led economy has won him the support of business owners, similar to how French President Emmanuel Macron endeared himself to businesses with a lengthy list of pro-business policies aimed at boosting economic growth. Chances are, however, that Atiku may not win, with the power of incumbency and continued strong support from the highly populated North West, giving Buhari the upper hand against Atiku. The thought of a Buhari reelection is a nightmare for business leaders, who fear the economy could be on the brink of a second recession in five years. “Another four years of Buhari’s statist policies will kill the economy, assuming there’s still some life left in the economy after a tumultuous first term,” said Ogho Okiti, CEO, Time Economics, who spoke to BusinessDay on the sidelines

of a gathering of business leaders, Wednesday. “Most business leaders would prefer an Atiku victory which would bring some relief to the economy given his pro-market leaning,” Okiti said. Atiku’s support among business leaders was evident at the business gathering where he was greeted with resounding applauses for his plans to privatise key sectors of the economy and the opaque stateowned oil firm, Nigerian National Petroleum Corporation (NNPC), as well as invest in education and healthcare. “Atiku’s promise to carry out far-reaching privatisation exercises was music to the ears of investors,” said Johnson Chukwu, CEO of financial advisory firm, Cowry Assets. “The current government has not done enough to give investors that type of confidence,” Chukwu said. Economic reforms have stalled under Buhari. Legislative attempts to reform the oil and gas sector have been undermined by the president, the downstream oil sector and power sector still long for market-reflective tariffs and there has been no significant privatisation since Eleme Petrochemical in 2008. The lack of reforms has put a cap on economic growth and worsened the social crisis in Nigeria, which replaced India as the poverty capital of the world in 2018, according to the World Poverty clock. While speaking at the gathering, Atiku said he was too impatient to see in his lifetime the kind of economic and social development capable of drastically cutting the prevalence of poverty in Africa’s most populous nation. “When I go around to campaigns and see these unemployed youths, I am scared. It is a time bomb waiting to explode and the work to resolve this crisis must be done speedily,” the candidate told leaders of the private sector. Atiku also continued to criticise the policies of the Godwin Emefiele-led central bank, in a signal that Emefiele, whose tenure expires this June, could fail to get a second term if 72-year-old Atiku wins at the February polls.

Atiku has not been shy to criticise the central bank’s policy on foreign exchange and has promised to abolish the current multiple exchange rate system. He says it deters foreign direct investment. Atiku along with his running mate Peter Obi were subjected to questions from the audience at Wednesday’s gathering and from a team led by Opeyemi Agbaje, CEO at Lagos-based RTC Advisory Services. Atiku said he would not appoint himself petroleum minister if elected into office, but vowed to vigorously push the privatisation of NNPC and a number of other government assets which have been suboptimal in their performance over years. “The job of making Nigeria work again is not rocket science. I have done it before,” he said. The PDP presidential candidate said he would not appoint to his government anyone without the requisite skill to do the job, adding, “I do not have as many relations as the current president. I am the only child and you will not find my relations taking jobs in my administration to the detriment of competent Nigerians.” The candidate attracted wide applause when he said he would never appoint someone he cannot learn something from. Atiku said the National Health Insurance Scheme which was established while he was vice president had failed because of corruption and vowed that he would outsource the management of the scheme to the private sector. He also responded to questions on what he will do to restructure the country. First, he said his administration would convene an urgent meeting with state governors and the national assembly at which he would offer to relinquish all items on the concurrent list of the constitution to the states, along with the fiscal provision if the governors have no objection, and then begin negotiation over the items on the exclusive list. Obi, in one of the several interventions made, said the administration of Atiku Abubakar would prioritise support for the nation’s 37 million small and medium-size businesses and seek to broaden access to credit for them as a major plank of its job creation strategy.

he proposed merger between Access Bank and Diamond Bank will result in significant synergy gains which will begin to appear as early as the second quarter of 2019. “Value from the merger will begin to show up almost immediately in the second quarter of 2019,” said Herbert Wigwe, CEO of Access Bank, at an event in Lagos, Wednesday. The recent Access Bank-Diamond Bank merger has made the new entity to emerge to become the largest lender in Nigeria by assets and other metrics, with total assets of over N6 trillion, and 29 million customers, which should give the combined entity enough levers to drive profitability. A combined Access/Diamond

has a lot of profit levers to pull, including combined operating expenses of N130 billion and personnel expenses of N58 billion. Cost synergies are conservatively estimated at N30 billion per annum, pre-tax. Access Bank has already finalised terms and obtained regulatory approvals for a Tier-II capital issuance, which will raise $250 million, available for drawdown in January 2019. Access Bank has also obtained “No Objection” from the Central Bank of Nigeria (CBN) to undertake a Rights Issue to raise up to N 75 billion ($ 207 million) in the first half of 2019. Shareholder approvals and other regulatory approvals will be obtained before the offer opens. This accelerates the capital management plan to support retail growth, previously set out in the bank’s five-year strategy.

Otedola’s move to buy Forte upstream assets ... Continued from page 1

ther annual general meetings (AGMs) or EGMs.

“The Exchange has done a lot to protect investors’ interests, but investors should make efforts to protect themselves. Investors should ask questions at AGMs and EGMs. We will continue to enforce disclosure. Shareholders are encouraged to keep their eyes on the Board and ask questions,” Onyema said on Monday while presenting the 2018 market recap and 2019 outlook. Forte Oil shares rose on the Nigerian bourse following the news on Otedola’s interest in the assets. The share price of Forte Oil Plc increased from N28 to close at N29.4kobo on Wednesday, January 16, gaining N1.4kobo or 5 percent. In the proposed Extra Ordinary General Meeting (EGM) notice sent to the NSE by Forte Oil Plc, the company said it hopes to obtain shareholders’ permission to enter negotiations with Otedola or any company representing him in connection with assets Forte Oil Plc intends divesting from. Forte Oil Plc, listed on Petroleum and Petroleum Product subsector of the NSE Oil & Gas sector, has 1,302,481,103 outstanding shares and market capitalisation of N38.29 billion as at Wednesday. A cursory look at directors’ interests in Forte Oil Plc shares as at December 31, 2017 shows that Femi Otedola directly holds 186,260,357 units in Forte Oil Plc while indirectly he holds 838,472,441 units. While the downstream sector is going through turmoil, the upstream sector is about to take a paradigm shift as the Federal Government is relying on Dangote Refinery with a 650,000 bpd which will not only reduce petroleum products importation but also lead to exports to neighbouring countries. The refinery was set to begin operation in December 2018, but shifted to 2019. Just recently, Otedola, majority shareholder in Forte Oil Plc, reached an agreement with Prudent Energy team, investing through Ignite Investments and Commodities Limited, to divest his 75 percent direct and indirect

shareholding in the company’s downstream business. Forte Oil Plc notified the Securities and Exchange Commission (SEC), Nigerian Stock Exchange (NSE) and the investing public, saying that Otedola’s divestment from the downstream business is pursuant to his decision to explore and maximise business opportunities in refining and petrochemicals. The application for this transaction expected to be completed at the end of first-quarter (Q1) 2019 is yet to reach both the apex and self-regulator in the stock market. “The shareholders hereby approve that the company may enter into discussion with Femi Otedola or any company representing him in connection with the assets to be divested and subject to an independent valuation on fair value, enter into subsequent binding agreements on comparable armslength/ commercial terms in relation to the assets to be divested,” Forte Oil said in a statement to NSE. Listed on the NSE, Forte Oil Plc is an operating holding company (HoldCo) under which the Group undertakes its downstream business in Nigeria, and also holds interests in AP Oil & Gas Ghana Limited (100 percent), Amperion Power Distribution Company Limited (57 percent) – the vehicle through which the Group’s interest in Geregu Power Plc is held – and Forte Upstream Services Limited (100 percent). The core of Forte Oil’s operations is in the downstream oil and gas segment, and the Group has established itself as a foremost indigenous petroleum marketing company with a rich history and strong operational platforms. The audited financials of Forte Oil Plc for the year ended December 31, 2017 adopted by shareholders at the annual general meeting show revenue declined to N129.44 billion, from N148.60 billion in 2016, representing a decrease of 12.9 percent. The Group’s net finance cost stood at N3.63 billion, from N4.28 billion in 2016, down by 15.2 percent.

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Energy Report Oil & Gas

Power

Renewables

Environment

Power generation capacity rose marginally in second quarter of 2018 OLUSOLA BELLO

he power industry recorded the highest peak of daily generation of 5,162MW in the second quarter of 2018. This was recorded on the 1st May 2018. During the same period available generation capacity rose by 2.3% per cent to 7,654 MW relative to the first quarter of 2018 .This increase in available capacity was attributable to the increase in the number of generation units after maintenance and overhaul of plant generation units. On average, 79 plant generation units were available during the period under review when compared to 78 units that were available during the first quarter of 2018. According to the latest report by the Nigerian electricity Regulatory Commis-

sion (NERC) the increase in generation never translated into an increase in output as total electricity generated during the second quarter of 2018 decreased by 1.9% from 8,511,481MWh recorded in the first quarter of 2018. About 50.1% of the available capacity was utilised during the second quarter

of 2018 – 2.6% less than the capacity utilisation during the first quarter of 2018. By implication, about half of the total available capacity during the quarter was redundant owing to a combination of factors including inadequate gas supply, water management, transmission line limitation, and limited

Regulatory authorities in oil and gas advised to ensure more indigenous companies get jobs

he regulatory authorities in the oil and gas industry have been advised do more to ensure that International Oil Companies (IOCs) continue to award contracts to competent local firms as this is the only way to grow the capacity of indigenous firms and also create jobs for citizens. Emmanuel Okon, managing director/ceo of Engineering Automation Technology Limited (EATECH gave this advise during his induction as Fellow of the Institute of Oil and Gas Research and Hydrocarbon Studies (IOGRHS) in Port Harcourt, Rivers State. Emmanuel Okon, managing director/ceo said his efforts to deepening the participation of indigenous firms in the Nigerian oil and gas sector made him to establish his facility at Eket. He said his company has saved the country several millions of dollars that would have left through capital flights, by carrying out instrument calibration and fabrication jobs at his facility in Eket, Akwa Ibom State. These he said are normally

done by multinational oil firms abroad. He lauded the Federal Government for coming out with the Local Content Law in the oil and gas sector saying it was the law that gave a big boost to his dream of floating a vibrant indigenous oil and gas service company in the country. According to him: “Every year we launch and develop new solutions and technology to the Nigerian industry and we have established Original Equipment Manufacturers (OEM) authorized service centres in-country both for mechanical and instrumentation automation process. We are calibrating in our laboratories and this has gone a long way in curbing capital flights in the country.” He decried the award of contracts by multinational oil firms to Nigeria firms that lacked the capacity for future growth. “The IOCs should focus solely in patronising local companies with systems and structures in the award of contracts under the local content law and not companies that will conclude a job and park

agement constraint and limited distribution network increased to 1,19MW, 161MW and 775MW respectively in the second quarter 2018. The report said although the stranded generation attributed to gas constraint declined in the second quarter of 2018, its contribution is still very significant when

NIPCO increase CSR investments, assures employees of staff security

up with no continuity,” Okon said. Local companies in the industry,he said, should be encouraged by various regulatory agencies to develop systems and structures because this remains the only way to ensure the sustained development of local firms and workforce. The Nigerian oil and gas industry is going to suffer in the long run if capacity building is not seen as the key driver by operators and regulators, adding that this is the only way to guarantee and deliver the next generation of skilled workforce for the industry. Akin Akindoyeni, chairman of council for the Institute of Oil and Gas Research and Hydrocarbon Studies , at a short speech before the induction said Okon was installed as a Fellow of the Institute “for his specialisation in Corporate Leadership and Foresight.” He commended the EATECH CEO for his vision, commitment and hard work in realising his set targets as a local player in the petroleum industry

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

distribution networks. Further analysis of the generation constraints indicates that transmission and distribution networks and the water management constraints worsened during the quarter under review. Stranded generation capacity due to transmission line limitation, water man-

compared to the capacity constraints attributed to other factors during the same period. Gas constraint accounted for about 64% or 1,842MW of daily average stranded generation capacity in the second quarter of 2018. NERC said resolving both the technical and operational challenges in electricity generation remain one of the top priorities of the Commission. Meanwhile the commission was able to realise a total revenue of N1.712billion comprising of N1.464billion from operational levy such as market charges and N248.805million from other sources like licensing. The revenue realised during the quarter under review was 44% higher than the revenue recorded in the preceding quarter. On the other hand, the total expenditure of the Commission stood at N1.351billion as against N1.190billion in the first quarter of 2018.

IP CO Plc, has unveiled plans to increase investments for Corporate Social Responsibility (CSR) in 2019 as it celebrated achievements on securing jobs for all its employees despite challenges in 2018. Sanjay Teotia, managing director of the company, who said this in his New Year message to staff, maintained that NIPCO would “continue to create opportunities for more vibrant and experienced personnel towards achieving efficient workforce to guarantee peerless service delivery.” “Fourteen years of operations in an industry that is anything but tempestuous is a great achievement worthy of applause,” he said, adding, “I have no illusion that there is still a lot to be achieved as the company climbs the ladder to the very top.” It is instructive to note, according to Teotia, that in spite of the “daunting challenges in the hydrocarbon industry, the organization has ensured the security of staff employment even as

we strive to continually improve on your wellbeing.” Promising his company’s decision “to create opportunities for more vibrant and experienced personnel towards achieving efficient workforce to guarantee peerless service delivery,” the NIPCO’s helmsman said; “My Management would also continue to focus not only on productivity and a healthy bottom line but also to staying relevant in the industry. “I wish to assure that the company’s Corporate S ocial Responsibilities [CSR] initiatives would be stepped up .The initiatives underscore the fact that we care for host communities and not just the bottom line. Doing a review of his administration at NIPCO, Teotia said; “Since my assumption of duty as the helmsman in January 2017, I am particularly happy of the crop of employees and other stakeholders that I have worked with. “As employees of the company, you remain the backbone of the organization pitched against the background that a com-

pany stands and works efficiently proportionate to the output of its employees. “Nipco’s performance during the year is a testimony to the growing faith in me and the entire Management team, even as I wish to intimate you that your contribution is pivotal to the company’s success. “ Yo u h a v e d e m o n strated- individually and collectively – hard work, perseverance and utmost dedication and of which I am proud of. “These attributes have, no doubt, contributed immensely to the organization’s positive performance over the years. I want to assure you that Nipco Plc would continue to strive to ensure up to date manpower training across board, with a view to making the organisation a top ranking company to work in the hydrocarbon industry. “I have no illusion that there is still a lot to be achieved as the company climbs the ladder to the very top. Indeed I see 2019 as a year paved with many successes and great accomplishments for the company.”

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Energy Report

Subsidy, biggest fiscal burden to Nigerian economy ...scheme encourages fraud, lacks transparency Olusola Bello

erhaps the biggest fiscal burden on the Nigerian economy today is the petroleum subsidy regime. It constitutes a big hole in the finances of the government. It puts tremendous pressure on the foreign reserves and the foreign exchange market, just as it exerts immense stress on the nation’s treasury. Oil and gas industry stakeholders have been worried that the subsidy regime has subsisted, especially at a time when the economy is facing unprecedented fiscal challenges; at a time when productivity in the economy is constrained by acute infrastructural deficit, and at a time when public institutions are finding it hard to pay salaries. According to them there cannot be a better example of resource misapplication than this. They have therefore called for a complete deregulation of the downstream sector of the petroleum industry as against the current fuel subsidy on fuel. President Muhammadu Buhari budgeted N305 billion in 2019 which industry operators say may not last more than three months. They also note that the government should negotiate with organised labour to put into consideration how to provide palliatives that would cushion the effects of increase in the price of fuel that may follow shortly after the elections. Mu d a Yu s u f, d i re ctor–general of the Lagos

Chambers of Commerce and Industry (LCCI) says there are two components of subsidy: “The first is the genuine subsidy, which is the differential between the pump price and the landing and other costs of fuel. The second and more disturbing component is the transparency problems inherent in the fuel subsidy administration, including the petroleum equalisation policy. For several years, the economy suffered severe bleeding from this phenomenon.” Yusuf wants the government to encourage private sector players to take over the downstream sector of the petroleum business. When this is done, he says, most of the challenges currently surrounding the subsidy, refineries and others will be adequately addressed. He believes however that the government should only play a regulatory and not an operational role. One of the critical elements of the oil and gas sector reform, particularly the downstream sector, is the complete deregulation of the sector. This is the spirit of the Petroleum Industry Bill which, regrettably, has again got stuck in the legislative quagmire. The reform of the oil and gas sector would create a number of advantages for the economy. Other stakeholders who have kicked against the inclusion of subsidy in 2019 budget have described it as fraud that will not do this economy any good. Many of the operators in the downstream sector

Muhammadu Buhari

of the petroleum industry who spoke to BusinssDay but who pleaded anonymity for fear of being intimidated by government officials, advocated for complete deregulation of the sector so that there could be sanity and transparency in its operations. They expressed worries over the huge amount of money spent by the Federal Government annually on subsidy payment, which they believe could be used to develop other sectors of the economy, such as education, health and transportation. It would be recalled that the Minster of State, Petroleum Resources, Ibe Kachikwu, said that subsidy on Premium Motor Spirit (PMS), otherwise known as petrol, currently stands over N1.4 trillion. Felix Andrew, executive director, Blue-Sea Energy

Limited, said that subsidy payment is not sustainable, and therefore advised the government to liberalise the market and encourage ``free entry, free exit” to attract investors into the sector. He said that currently, Nigeria spends about N1.7trn on fuel subsidy annually whilst its education and health sectors can only access a paltry budget of N300million and N400million, respectively. With this, he said, it is obvious that the fuel subsidy programme is placing a huge financial burden on the nation’s resources. Nosa Ogieva-Okunbor, President of the National Association of Liquefied Petroleum Gas Marketers, also said that only full deregulation can bring the much needed investment to the sector. He said that full deregu-

lation remained the best option to attract investors for the sector’s development, against the backdrop of the huge amount spent on subsidy. The full liberalisation and deregulation of Nigeria’s downstream oil sector will remove all the hindrances and bottlenecks that have been discouraging improvement of private investment and market competition. According to OgievaO ku n b o r, g ov e r n m e n t should fully deregulate the downstream sector to attract investors. “We need full deregulation of the downstream sector. We do not need partial deregulation,” he said. Market prices in Nigeria and international market prices are beyond the control of our local policy. The current international price and imported petroleum products pricing template do not conform to the physical landing cost on the products when interpolated with the government’s template. Professor Wunmi Iledare, president of Nigerian Association for Energy Economists (NAEE) said the government should be praised for at least making something available for the fuel instead of leaving the whole process of payment to NNPC to use its discretion. “I don’t like subsidy but I think the government is trying to pay NNPC instead of the corporation using unallocated money,” he said. He said however that without the passage of the Petroleum Industry Governance Bill, the country would not be able to achieve

its goals in respect of the downstream sector of the petroleum industry. Professor Femi Saibu of the department of Economics, University of Lagos, spoke in the same vein with professor Wunmi Iledare when he said that for the purpose of transparency it is good for the government to give subsidy, so that the money can be tracked. It would be recalled that Nigeria spent N2.582 trillion on fuel importation in nine months, from January to September 2018, an increase of 12.9 per cent from N2.289 trillion recorded in the first three quarters of 2017. The amount spent on fuel import in the ninemonth period is 28.3 per cent of Nigeria’s N9.12 trillion budgets for the 2018 fiscal year and 36 per cent of the N7.17 trillion proposed expenditure in the budget. According to data obtained from the National Bureau of Statistics (NBS), Foreign Trade Statistics for the Third Quarter of 2018, Nigeria’s fuel import stood at N845.12 billion, N720.4 billion for the first and second quarters of 2018 respectively. However, in the third quarter of 2018, the report noted that fuel import rose sharply by 41.03 per cent from N720.4 billion recorded in the second quarter to N1.016 trillion in the third quarter of 2018. This, according to the report, was in comparison to fuel import of N802.4 billion, N744.28 billion and N742.82 billion recorded in the first, second and third quarter of 2018 respectively.

the nation from the sale of the liquids”, he stated. The gas gathering and processing facilities strip liquids from rich gas, creating additional revenue stream for the nation from the sale of the liquids. According to him, the gas strategy adopted by CNL will end routine gas flaring and build a profitable gas business through a portfolio of domestic, regional and export supply projects that fulfill the NNPC/CNL Joint Venture’s Domestic Gas Supply Obligation and support the Nigerian Gas Master Plan. The strategy, said the Chairman/Managing Director, includes: ending routine gas flaring; boost-

ing domestic supply diversifying and commercializing gas resources through Gas-Based Industries such as its Escravos Gas-to-Liquid (EGTL) Plant. CNL is optimistic about the future of oil and gas business in Nigeria as the opportunities are enormous. As the chairman/ managing director emphasized: “Chevron has a long commitment to Nigeria. The company has been making significant investments in the country for over 50 years and it expects to do so for many more years to come. With the right policies, the enormous potential of Nigeria’s oil and gas sector can yield even greater benefits.”

Nigeria’s Gas development: The Chevron success story Victor Anyaegbudike

he development of Nigeria’s vast gas resources has been one of the major policy thrusts of successive governments in Nigeria. It is worthy of note that Nigeria is blessed with resources for growth and global competition in gas. The country ranks 9th in World’s gas proven reserves. The National Gas Master Plan focuses on reducing routine gas flaring, increasing domestic gas supply and utilization, while diversifying Nigeria’s revenue. Jeff Ewing chairman/ managing director of CNL,

explained that the company has contributed immensely to the Nigerian government’s gas master plan through the various gas projects it has embarked on and that the company is the highest contributor of high quality gas to the domestic market in Nigeria. Also, according to the Department of Petroleum Resources (DPR), CNL supplies about 40% of Nigeria’s domestic gas consumption and has been the highest supplier of high quality domestic gas in Nigeria since 2015. Jeff noted that through investments in gathering and processing of associated gas, routine flaring has been reduced by over 90% from 2008 to 2017 in CNL’s

operations. According to him, “amidst the growing global trend in gas production and utilization, the expectations for the gas sector in Nigeria remain high and provide opportunities for investment in the sector. The opportunities include: (1) transitioning from an oil based economy to a more integrated oil and gas economy and end routine gas flaring, (2) deliberate exploration for non-associated gas to support the Nigeria Gas Master Plan, with a focus on high liquid yield non-associated gas resources to optimize the gas development project economics, and (3) the growth of new industries made possible from the

abundant resources and competitively priced gas supply. CNL’s Chairman/Managing Director explained that the company’s gas story began with the implementation of different phases of the Escravos Gas Project (EGP), with four phases of development over the years. He stated that the EGP gas gathering, and processing facilities placed CNL as one of the pioneers in creating a practical and economic solution for gas flaring in the Nigerian oil and gas industry. “The gas gathering, and processing projects involved stripping liquids from rich gas and creating a new revenue stream for

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How are investors preparing for the next financial crisis? Kelvin Umweni

investments and fall in trade volumes. Nevertheless, the same cannot be said in the coming years should another crisis come knocking. The reason is not far-fetched. Within a space of 10 years and still counting, a lot have indeed happened especially in the financial sector. Financial institutions, the capital market and other critical sectors of Africa’s economy are not only becoming intertwined domestically but are increasingly interrelated and interdependent on the global space. These interdependency and interrelatedness would largely determine the degree of impact the next financial crisis, should it happen, would have on the global economic dynamics, as well as on the economies in Africa. As analysts speculate of a possible crisis in the near term, it has become imperative to stress on what investors should do to be on a safer side.

In May 2018, Trump signed a bill rolling back some of the regulations of Dodd-Frank into law. Though the largest banks were exempted from the relaxed rules, easing the mortgage loan data reporting requirements for the majority of banks is somehow a red flag considering the fact that it was the bubble in the mortgage sector that caused the 2008 financial crisis in the first place. In October 2018, the anxiety came to a crescendo when the International Monetary Fund (IMF) raised an alarm of the possibility of the world economy experiencing another financial crisis underlined principally by growing global

debt level and failure of governments to tighten regulatory frameworks for their financial systems. As at first quarter of 2018, the world’s debt stood at $247 trillion. By September, the global debt level had risen to $250 trillion compared to $173 trillion as at the time of the 2008 financial crisis with China accounting for about $40 trillion of that amount in 2018. The percentage of debt to GDP has risen sharply from about 280 per cent in 2008 to 319 per cent according to Bloomberg estimate. The alarming growth of government debt is stirring widespread fear among the

investment community albeit, a mild growth in financial institutions’ debts. Within a decade, government debt has increased by about $30 trillion to $67 trillion in 2018 while corporate debt has increased by 5.2 per cent to $61 trillion in 2018. The extent to which Africa was insulated from the crisis in 2008 was informed largely by the continent’s low financial integration with the global financial system. However, a research by Overseas Development Institute (ODI) found that the short term effect of the crisis on Africa was essentially through the economic route – lower commodity prices, remittances, foreign direct

What should investors do? Investors have to be mindful of their risk tolerance, time horizon and liquidity needs when making the decision to invest. Speaking at the 2018 Market Recap/2019 Outlook of the Nigerian Stock Exchange, the CEO of the bourse, Oscar Onyema, assuaged the fears on investors on the likely global financial crisis occurring in the near term noting that today’s investors are better informed than investors in 2008. Onyema noted that in preparedness, it is advisable for investors to have a well-diversified and rebalanced portfolio across different asset classes. Rebalancing a portfolio simply entails a reallocation of assets to assume a predetermined proportion or makeup. It is the adjustment to an investment portfolio that realigns the investor’s holdings with their targeted allocation of assets. 12734BDN

n 2018 the world commemorated 10 years since the end of the financial crisis that shook the foundation of the global financial system. The collapse of the Lehman Brothers, a large United States-based investment bank, heightened a hitherto small crisis boxed up in the United States (US) and ushered in one of the world’s greatest financial crises of all time. One may want to ask what led to the financial turmoil in 2008. A brief retrospection will therefore suffice. One of the catalysts for the crisis was the falling prices of the US housing units and a rising number of borrowers who were unable to repay their loans. Prices of the housing units in the United States peaked around mid-2006, coinciding with a rapidly rising supply of newly built houses in some areas. As their prices began to fall, the share of borrowers that failed to make their loan repayments began to rise. Loan repayments were particularly sensitive to house prices in the United States because the proportion of US households with large debts had risen significantly during the boom. That led to the stress in the financial markets as lenders and investors in mortgage backed securities started incurring losses due to default on mortgages. The crisis quickly spilled over to economies in other countries because foreign banks were active participants in the US housing market during the boom as the US banks also had substantial operations in other countries. The failure of the US financial firm, Lehman Brother, together with the failure or near failure of a range of other financial firms around that time triggered a panic in the financial markets globally. Investors began pull-

ing their money out of banks and investment funds around the world as they did not know who might be next to fail and how exposed each institution was to the subprime and other distressed loans. Consequently, financial markets became dysfunctional as everyone tried to sell at the same time and many institutions wanting new finances were denied. Businesses also became much less willing to invest and households less willing to spend as confidence the mortgage market waned. Though, the 2007/2008 global financial crisis, considered by many analysts and economists as one of the worst crises in the world since the Great depression of 1930s, may have come and gone, its impact and the lessons learnt lives on. The Business Insider, a US financial and business media outfit, puts the financial and economic costs of the crisis at a conservative amount of $10.2 trillion which was about onefifth (20 per cent) of the global output in 2009. Emphatically, the crisis taught the world that it is quite difficult to return to the path of restoration in the event the financial system is shattered. Should investors be wary of another financial crisis? Analysts have predicted that another global financial crisis is underway though a timeline for its eventual occurrence remains blurred. However, JPMorgan estimated thatthe next crisis might occur in 2020, stating that the extent of damage would, however, be less severe when compared to that of 2008. President Donald Trump who threatened to repeal the Dodd-Frank Wall Street Reform and the Consumer Protection Act, two key legislations enacted in 2010 to check against the regulatory gaps in the US financial system, finally got his way last year.

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Insight into Nigeria’s Industrial Production Index Isaac Esowe

ndustrialisation plays a pivotal role in the building of a nation, hence acts as a catalyst that accelerates the velocity of structural revolution and diversification of the economy, enabling the country to fully utilize its factor endowment. Although, different administrations have adopted different political and economic policies in an attempt to diversify the economy, the questions are: have all these policies propelled Nigeria to attain its potential? What is the present state of the Nigerian industrial sector and what impact have these policies had in improving the economic outlook of the nation at large? These are the few questions that run through the minds concerned Nigerians in an effort to analyze the feat of the industrial sector and their contributions to the development of the country. The Nigerian industrial establishment consists of the mining, manufacturing and service sub sectors. The performance of the industrial establishment is measured through an index known as the Nigerian Industrial Production Index. This indicator is measured based on a reference period that expresses change in the volume of production output compared with current period. According to the information gathered from the Central Bank of Nigeria’s (CBN) Economic Report for 2018, the report shows that the agricultural sector gained more momentum in the third quarter of 2018 and the boost in agricultural productivity was attributed to adequate rainfall recorded across the country. The improved productivity was despite some instances of flooding in some states which affected the level of farm produce, farmer/ herdsmen clashes, among others. More so, production in

Index of Industrial Production (2010=100)

the industrial sector recorded an impressive feat during the third quarter of 2018. This improvement can be seen in terms of industry expansion, more employment generations leading the engagement of the unemployed citizenry to meaningful activities. This industrial improvement re-writes the narratives of industrial production with higher output and new orders in the manufacturing sub-sector. However, it is also important to note that the improvement in industrial productivity was caused by falling prices of inputs. Thus, the industrial production in the review quarter indicated a marginal increase over the level in the preceding quarter. At 105.9 percent in Q3 2018, the estimated index of industrial production rose by 0.6 per cent above the level in the preceding quarter. The increase reflected, mainly, by improved activities in the manufacturing sub-sector. Subsequently, manufacturing production index was gauged at 176.1 percent in third quarter of 2018. However, the industry recorded an additional increase of 0.1 per cent on quarter on quarter basis. The improvement was due to increased production activities on account of new orders and lower input prices. Capacity utilisation in the sub-sector remained at 54.6 per cent in Q3 2018, same as in the preceding quarter as shown in the CBN Economic report 2018, while 73.7percent was the estimated index for the mining sector in the third quarter of 2018. Howeever, there was a decrease by 0.4 per cent which was below what it was as at the end of June 2018. The slide in the mining sub sectoral activities was as a result of the decline in the crude oil and gas production. Energy generation improved during the review quarter. At 3,358.0 mw/h, the industry hit its peak

as the highest daily production of electricity in July 2018 amounted to 89,077Mwh. Also, the average approximated electricity generation rose by 3.32 per cent when compared wih the level as at the end of the second quarter of 2018. It is fascinanting to know that the improvement recorded in the electricty generation sub sector was as a result of adequate gas supply to thermal plants and higher water level at the nation’s hydro stations. This improvement could also be attributed to the fact that there was an increase generation capability after maintance and repair of plants. At 3,098.0 mw/h, the average estimated electricity consumption rose by 1.74 per cent in Q3 2018, above the level at the end of the preceding quarter. The increase in electricity consumption was attributed to increased in electricity generation. Despite the increase recorded, the industry did not meet its full potential due to under ultilization of available resources. The agricultural sector comprises four sub activities, which include: crop production, livestock, forestry and fishing. The agric sector posted 4.23 percent growth in Q4 2017; 3 percent in Q1 2018, a paltry 1.19 percent in Q2 2018, and 1.91 percent in Q3 2018. However, the inconsistency was due to the performance of the other sub sectors apart from crop production. In effect, crop production remains the major driver of the sector as it accounted for 91.1 per cent of the sectoral nominal Gross Domestic Product (GDP) in 2018. Overall, the agricultural sector contributed 25.52 per cent to nominal GDP as at the end of the third quarter of 2018 which was higher than the rate at the end of the third quarter of 2017 as shown in figures provided by the National Bureau of Statistic (NBS) GDP report for third quarter of 2018.

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NATIONAL DISCOURSE

DANIEL OBI

he proposed presidential debate scheduled for Saturday, January 19, 2019 by 6 pm is likely to attract millions of local and international viewers if President Muhammadu Buhari particularly attends. Why? It will perhaps be the first time Nigerians will see their president directly and deeply in a live telecast discuss economic, political and security issues. Secondly, the discussion will be interactive instead of the previous monologue and handed speeches the presidency has largely employed in the last three and a half years to talk to Nigerians who crave for explanations on efforts for economic development. It doesn’t matter if the presidency asks for the debate questions in advance to prepare President Buhari for the discussion, but many Nigerians will really like to see the corruption fighter discuss his second term road map for the economic

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National discourse: Presidential debate: Buhari, Atiku to attract more viewers development and tell Nigerians why Boko Haram has persisted in spite of his earlier promise to bring it to an end. Other challenges confronting his governance will be explained. Obviously, Buhari has been far from Nigerians devoid of that deep connection and bond with the populace. Though the Vice President, Yemi Osibanjo has tried to fill this gap, relating with various sections of Nigerians, including market women but Nigerians expect their president to relate closely with those who elected him in 2015. The challenge with handlers of the presidency is the belief in shielding the President from Nigerians and not allowing interactions against democratic norms. This is informed by old military faction and lack of understanding that constant communication heals wounds and it offers the compass for the socioeconomic direction. In fact the communication machinery of the presidency did not help to build the earlier good-will President Buhari enjoyed. First six months of the presidency was spent without cabinet members in a country that needs quick push to economic recovery. The next two years of the presidency were employed for blame game of the past administration, thinking that the communication approach will enlist sympathy. It did actually but was short-lived as the presidency never changed communication

tactics to its planned goals. Within all this period, the illhealth of the President, when he spent a good number of days abroad, never allowed him to engage properly with Nigerians. Now, he looks fit, judging from non-regular foreign trips for medical attention. Therefore, this is the time to begin to engage with the citizens and the business community for economic plans. The debate offers such platform. It was therefore disheartening and a sign of lack of consideration to Nigerians and the economy when APC, the ruling party issued a statement on Monday, January 14 saying “it is not a big deal if President Muhammadu Buhari chooses not to attend the 2019 presidential debate slated for Saturday, January 19, if he feels there are other options where he can speak to Nigerians.” The National Publicity Secretary of the party, Lanre IssaOnilu, in an interview with Daily Independent, insisted that the APC will look at several options through which Buhari will engage Nigerians since there is no big deal in the debate which is not one of the ways for him to talk to Nigerians. Some Nigerians believe that any other platform apart from the public debate will be monologue and will not achieve the communication purpose of question and answer. According to some Nigerians,

the APC should indeed look for another monologue platform that Buhari will engage Nigerians if the party is aware of the President’s lack of knowledge and incompetence of the running of the economy in the last three and half years. An analyst says that the presidency thinks Buhari will flounder at the debate and this will affect his chances for second term. But another said that Buhari may eventually surprise everyone at the debate against pre-conceived notions that he will flop. The debate is organised by the Nigerian Elections Debate Group and the Broadcasting Organisation of Nigeria, (BON). Five presidential candidates are expected at the debate. The debate will surely be an advantage to the APC presidential candidate to explain efforts he has made to take Nigeria out of the poverty circle, revive the manufacturing sector, tackle insecurity and unite Nigerians. Today, out of Nigeria’s six seaports, only two that are in Lagos are functioning, making Apapa congested and difficult for business. Buhari needs to explain why other ports are not in use. International rating agency, Brookings Institution says Nigeria has the highest poverty rate with about 87 million out of 198 million population under poverty. Nigerians also need explanations on what the APC government has done to tackle this challenge and also reduce

the growing unemployment rate which is 23.1 percent of the population. Presence of other presidential candidates, especially PDP candidate, Atiku Abubakar will attract attention, as he needs to answer questions on how he intends to fix the broken country if he wins the elections. Nigeria is said to be divided now more than ever before with the economy and virtually all sectors not functioning at optimal level. Among the elite, the presidential debate may matter, shifting voter support and changing pre-conceived notions and that is why Buhari and Atiku need to face Nigerians on how to make the country better. We are in the jet age and not dark ages. For instance, if the Lagos State governorship election was held immediately after the governorship debate with only the elite voting, sources said the governorship candidate of Action Democratic Party, ADP, Gbadamosi Babatunde could have won the election based on his powerful convictions of his plans. In Nigeria, a lot of factors, including blind support, thuggery, rigging, money determine the outcome of elections. However, Nigerians are expecting much from the presidential candidates and they, Nigerians want to taste this through the presidential debates. Nigerians want Buhari, Atiku especially to face Nigerians at the debate.

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Our expectations from new IGP - Nigerians JOSHUA BASSEY

igerians appear to be unanimous in their expectations from the new Inspector General of Police (IGP), Adamu Mohammed, as they look to seeing a break from the immediate past where the police as an institution, under retired IGP Ibrahim Idris, turned itself into an enemy of the people. Nigerians, who spoke with BusinessDay on Wednesday, a day after President Muhammadu Buhari decorated and swore in Mohammed, said the operation of the police under Idris was characterised by abuse of citizens’ rights, disruption of peaceful protests and tear-gassing of protesters. Abiodun Aremu, chairman, Joint Action Front (JAF), a civil rights group, in an interview with BusinessDay, said the new IGP must choose a different path and work with the knowledge that the

police as an institution was not created basically to always take side with the government but to protect and secure Nigerians. “If I carry a placard and begin to sing the praises of Mr. President, the police would accord me protection and even roll out red carpet. But if I carry a placard to say the anti-corruption isn’t working, the police would disrupt, tear-gas, and say it can’t go on,” Aremu said. He said the new IGP must learn from the mistakes of his predecessor and ensure that the rights of every Nigerian citizen were protected, saying, “He must realise that in a democracy, protest can always break out and that the citizens have the right to a peaceful protest.’’ Shehu Sani, a senator representing Kaduna Central District, in his twitter handle, also expressed his expectations from the Mohammed. Sani said: “My advice to the new IGP is to respect fundamental rights and rule of law, take orders from the Constitution, be not

partisan, go after bandits, armed herdsmen, militia, cultists, kidnappers and not critics.” The senator also urged the IGP to reduce the number of his men (policemen) protecting the elites by redeploying them to protect the masses, and “Upgrade your colleges, obey lawful summons and spread not butter with a machete.” Lending his voice, Chris Onyeka, deputy general secretary, United Labour Congress (ULC), said Mohammed’s appointment had doused tension that was building up from the rumour that President Buhari was planning to extend Idris’ tenure. He said: The former IGP’s reign was characterised by impunity, political partisanship, nepotism and highhandedness in carrying out his official duties. “As Nigerians, we have huge expectations from the new IGP. We expect him to wean the police away from partisan politics if he can.”

Security reform: Operation ‘Wabaizigan’ begins deployment of personnel, other resources across flashpoints in Edo

o boost the security of life and property in the state, the Edo State government through the state’s security architecture has commenced deployment of operatives of the Operation Wabaizigan across the 18 local government areas (LGAs) of the state. Crusoe Osagie, special adviser to the governor on media and communication strategy, said the deployment of components of the state’s new security architecture was strategic and would change the face of security operations in the state. The components of the state security architecture include: 50 special security cars fitted with modern communication and security gadgets; 30 Toyota Hilux patrol vans; 30 patrol motorbikes and three Tropicalised Armoured Personnel Carriers; three Ambulances; Integrated Command and Control Centre and five special security checkpoints to be manned at all the entry and exit

points in the state. Others are: Special Patrol Units (land and waterways); Integrated Electronic City Surveillance Unit; Establishment of a Special Force unit/anti-kidnapping squad; establishment of K-9 unit; establishment of paramedics unit; establishment of the Public Works Volunteers (PUWOV) scheme with 3000 trained and kitted workforce and a community police radio network. According to Osagie, “The special security cars fitted with modern communication and security gadgets; 30 Toyota Hilux patrol vans; 30 patrol motorbikes are already being deployed and are manned by personnel of the Nigeria Police Force, Army, Airforce and Department of State Services.” He said some of the vehicles and personnel had been deployed to major flashpoints across the state including Ekehuan and Airport roads in Oredo LGA, and Iguobazuwa in Ovia South West LGA, among others.

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APC hit by defection as Emmanuel launches campaign in A/Ibom ANIEFIOK UDONQUAK, Uyo

he All Progressives Congress (APC) appears to have suffered a major setback in Akwa Ibom State with the defection of President Muhammadu Buhari’s coordinator of campaign groups and former Speaker of the State House of Assembly, Ignatius Edet who defected to the People’s Democratic Party (PDP) during ‘ Governor Udom Emmanuel’s re-election campaign launch in Uyo, the state capital. Edet, who defected with over 4000 of his supporters, said he left APC because of impunity arising from the last primaries, adding that candidates were imposed on the party without due process, describing PDP as being sensitive to the wishes and aspiration of its members. The ex-Speaker expressed disappointment and sadness with the running of the APC in the state and expressed confidence that the PDP which had been on the ground in the state with sustainable structures would sweep the polls. Presenting his manifesto for his

Udom Emmanuel

re-election, Governor Emmanuel reaffirmed his commitment to the completion of his five- point agenda adding that his achievements in power, education, health, youth and

women empowerment, security, poverty alleviation, industrialisation remained unrivalled adding that in education, the pass rate in WAEC has improved to 76 percent

2019: Only Atiku can salvage Nigeria - Lagos campaign coordinator …As CUPP is launched in Lagos Iniobong Iwok

bimbola Ogunkelu, coordinator of Atiku Abubakar’s presidential campaign organisation in Lagos State, has said that only the former vice president of the country and presidential candidate of the People’s Democratic Party (PDP) could salvage Nigeria from the current woes bedeviling it. Ogunkelu stated this at the campaign secretariat in Fadeyi, while launching the Conference of United Political Parties (CUPP) in the state, stressing that the PDP candidate had drawn out clear plans on how

to move the country forward. Ogunkelu, who was a former minister of integration under the Olusegun Obasanjo administration, stated that the ruling All Progressives Congress (APC) and incumbent administration of Muhammadu Buhari had failed the nation. He further alleged that the PDP was aware of the rigging plans of the APC in the forthcoming election. According to him, “We heard that INEC would no longer follow the electoral law of 2015 in which voters are accredited first before they vote. They want voters to do the accreditation and voting at the same time. “We have rejected that; let Ni-

gerians been accredited and they come back to vote, through that we can know the number of people accredited and the total votes.” Chairman of CUPP in the state, Tunde Daramola said that the inauguration of the chapter in the state was for effective mobilisation of Nigerians ahead of the election, stressing that the group would work as a unit to defeat the APC in the presidential election. Daramola who is also the state chairman of African Democratic Congress (ADC), stated that adequate logistics and enlightenment would be provided for the party chairmen to effectively deliver their constituencies in the state.

2019: INEC goes tough against vote-buying ...Seeks cooperation of religious leaders on peaceful poll Iniobong Iwok

head of the forthcoming general election, the Independent National Electoral Commission (INEC) has said it would take precautionary measures to check vote buying. Lagos State Resident Electoral Commissioner, Sam Olumekun, stated at an interactive forum with religious leaders in the state at the commission’s office in Yaba. Olumekun added that the rising trend of vote buying at polling units in recent elections across Nigeria was a violation to the commission’s law. He noted that recent elections in Nigeria have been characterised by financial inducement of voters, which often takes place at the polling unit, adding that the trend has

become wide spread and has undermined the credibility of the elections. Speaking further, he disclosed that the commission had finalised arrangements with relevant agencies to enforce relevant laws against the act in the general election. According to him, “The growing epidemic of voters’ inducement at polling units in some of the recent elections constitutes a clear violation of our laws. This conduct is illegal and a serious threat to entrenching a credible election in the country. “We are working with security agencies for the enforcement of the law against vote buying in particular and violation of campaign finance. Anybody found to be involved would be prosecuted,” Olumekun said. He lamented the inability of many residents of the state to pick up their

Permanent Voters Cards (PVCs) despite increased sensitisation by the commission in recent months, stressing that the unclaimed PVC in the state was still 1.4 million. Speaking earlier, Chairman of the Christian Association Nigeria (CAN) in the state, Alexander Bamigbola, urged the commission to strive to resolve several bottlenecks which had undermined the Continuous Voters Registration (CVR) in the state before the general election, while expressing readiness of the religious leaders in the state towards having a peaceful election. “We are ready to work with the commission towards conducting a peaceful election in the coming weeks and we would take the message home to our followers,” Bamigbola said.

while that of the Joint Admission and Matriculation Board is not at 81 percent pass rate. He said in the face of economic recession, he was able to attract investors and established factories thus making Akwa Ibom State and emerging industrial hub and pledged to continue with industrialisation programme to make the state one of the most industrialised states in the country. He said the PDP remained the real popular party in Nigeria accusing the opposition party in the state of fulfilling its campaign promises adding that when its leaders promised to set up 31 industries in Akwa Ibom State, they did not set up a single factory in eight years “I offer myself to complete what we have started for the youths. There are element of integrity, love and sincerity contained in all sections of our manifesto and our commitment to industrialisation, youth and women empowerment, education and robust health system remain irrevocable,” the governor said. Earlier, Seriaki Dickson, Bayelsa State governor and chairman of

South South Governors forum in a goodwill message on behalf of the people of Bayelsa and other governors in the region commended Akwa Ibom people for their support given to Emmanuel who he described as a good product and reminded them of the need to reelect him urging the Governor not to be distracted by friends and party members who withdrew their support for him. Dickson, who recalled how Emmanuel supported him to win a second term, said it was important that the people allow the governor to consolidate on his numerous achievements in security and industrialisation, commending members of the PDP for their steadfastness and congratulated the governor in advance of his victory at the polls. State PDP Chairman, Paul Ekpo who said he was proud of Emmanuel and having him as the governor of the state, promised that the state working committee would redouble their efforts to ensure the victory of the candidates of the party at all levels.

Durotoye vows to free Nigeria from cabals, offer purposeful leadership Iniobong Iwok

ela Durotoye the presidential candidate of Alliance for New Nigeria (ANN), in the forthcoming presidential election, has pledged to free Nigeria from the grip of members of a cabal who have held the country captive since independence. Durotoye, who is a renowned public speaker and management expert, stated this in an interactive session with journalists in Ikeja, Lagos State, stressing that the country was presently in a state of despair due to successive years of poor leadership. According to him, “I believe that this year is going to be a new beginning for our nation and even though we gained independence in 1960, we now have a unique opportunity to gain our freedom through our choices in the upcom-

Durotoye

ing elections. “By freedom, I mean our freedom from the shackles of the cabals and a few people who have held us bound soon after independence. Freedom from the deprivation, the poverty, the hunger, the preventable diseases and all other forms of hardship brought upon us by those who have ruled us and held us captive for so long,” Durotoye said. The ANN presidential candidate, promised to build a new society that would offer equal opportunity for all Nigerians and initiate people-centred policies. He further charged Nigerians to vote massively for his candidacy and his party in the forthcoming presidential election, stressing that his administration would create jobs and empower the youth. According to him, “This is why I am convinced that you and millions of people just like you and I, people who are unhappy and tired of living in a country where life is just so hard and nothing seems to be working; people who believe that we are blessed enough to be a better country than we are today; all of us will come out and vote overwhelmingly for the Alliance for New Nigeria Party (ANN), the party with the logo of a lion in the 2019 elections.” “I am expectant and excited about the possibilities of a New Nigeria where there will be jobs and opportunities for all to prosper and enjoy good success. A New Nigeria with opportunities for all to pursue their happiness as they achieve great goals and lofty dreams,” Durotoye added.

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3 issues electorate must consider before voting next month ODINAKA ANUDU

he 2019 presidential election is less than one month from now, and political parties and their candidates are devising all manner of measures to woo the electorate. The presidential election will be contested by Muhammadu Buhari, incumbent president and candidate of the All Progressives Congress (APC); Atiku Abubakar, former vice president and candidate of the main opposition People’s Democratic Party (PDP); Obiageli Ezekwesili, former World Bank vice president and candidate of Allied Congress Party of Nigeria(ACPN); Omoyele Sowore, CEO of Sahara Reporters and candidate of the African Action Congress. Others are Kingsley Moghalu, former deputy governor of the Central Bank of Nigeria and candidate of Young Progressive Party, and Fela Durotoye of Alliance for New Nigeria (ANN), among others. As the election draws near, here are four things the electorate must consider before voting. One is capacity or competence. Who among the candidates has the capacity or competence, based

on tract records, to haul 87 million Nigerians out of poverty. According to the Brookings Institution, Nigeria is now the poverty capital of the world, with a record 87 million people living in extreme poverty and 8,000 people sliding into extreme poverty on a daily basis. Unemployment rate increased to 23.10 percent in the third quarter of 2018 from 18.8 percent in the

second quarter of 2018, according to the latest figure from the National Bureau of Statistics (NBS). Inflation rate is sitting on a double-digit pedestal of 11.28 percent. “Nigerians must look at someone who has the capacity to kill poverty. Poverty is the biggest challenge we have now. People are hungry and complaints are rife. I think, at this point, Nigerians need someone with the knowledge of

private sector workings. Don’t get me wrong. The incumbent worked well with the private sector. There are equally others with strong private sector background and quality knowledge of the economy, but it is up to the electorate to choose,” said Kolawale Odunjo, an Ogun State-based businessman. Analysts say Nigeria needs a unifier. Who among these candidates can calm frayed ethnic

and religious nerves across the country? Who, in his or her past comments and body language, has promoted or doused religious or ethnic violence? Third is a candidate with capacity to solve the current raging security problems. Boko Haram is attacking the North-East with the fiercest speed of light. Two days ago, seven people were killed when the insurgents attacked a military base in Rann, Maiduguri, Borno State, prompting internally displaced persons to flee to Cameroun border. The attacks were said to have been carried out by the Islamic State West Africa Province, a factional sect of Boko Haram. At the moment, there is an orchestrated plan by terrorists to overrun Nigeria, but the exhausted security agencies do not have the capacity to deal with the situation. Videos have appeared online regarding soldiers complaining about rickety weapons, poor funding and welfare activities. “Who will stop these insurgents? Many of these politicians do not know what they are gunning for. You must have a different strategy from the one we have now if you want to chase away these insurgents,” a security expert, Celestine Johnson, said.

Use your visit to end political violence in Kwara, PDP women urge Buhari SIKIRAT SHEHU, Ilorin

resident Muhammadu Buhari has been enjoined as a father of the nation to look beyond party affiliation by using his offices to end political crisis in Kwara State. Ramata Oganija, women leader of the state’s chapter of the Peoples Democratic Party(PDP), who made the call in Ilorin at a press conference, Tuesday, equally urged the president to direct security agencies to apprehend and prosecute the masterminds and perpetrators of the recent political violence in Ilorin, the state capital. Oganija, flanked by other prominent women leaders in the state, including two former PDP women leaders, Muslimat Ibrahim and Sarat Adebayo, as well as two current members of the state House of Assembly, Sikirat Anako and Segilola AbdulKadir, attended the conference in black attire to express their displeasure

over alleged violence and killing of innocent residents by political thugs at various locations in Ilorin metropolis. Oanija said women as mothers were saddened by the recent orgy of violence by political thugs in Ilorin reputed for its peaceful nature. Political thugs allegedly loyal to a faction of the All Progressives Congress (APC) in the state had last Thursday and Sunday unleashed violence on residents of Ilorin,including the people of Agbaji, family residence of the Senate President, Saraki. At least 11 persons sustained gunshot wounds while 50 vehicles and valuable property were destroyed at Agbaji quarters during the fracas. “We urge President Muhammadu Buhari, as the father of the nation to look beyond party affiliation and partisanship and direct security agencies to apprehend and prosecute all those who have been disturbing the peace of

Kwara state and their sponsors,” she said. “The president should use his visit to Ilorin not only to campaign but to ask his party men to end all their criminalities in the name of politics.’’ Oganija, who blamed the incessant attacks on members of the PDP on political thugs loyal to a faction of APC in the state, called on security agencies and the general public to condemn and fish out perpetrators. “It is no longer news that thugs believed to be working for factional APC governorship candidate, last Sunday, 13 January, stormed Agbaji, the hometown of our national leader and Senate President, Abubakar Bukola Saraki, where they attacked innocent people. “The death-dealing thugs who were reportedly led by two members of the APC, Yahaya Gambari Seriki and Comrade Musbau Esinrogunjo opened fire on residents

of the peaceful community and injured no fewer than 11 people in the process, who are mostly members and supporters of our party. They vandalised over 50 vehicles parked at different locations within Agbaji and also carted away property, including motorcycles belonging to residents of the area. “This attack came few days after the Senate President had raised an alarm over planned attacks on his family members and supporters, and barely four days after a similar attacks on PDP members in some parts of Ilorin. Some of those injured are still receiving treatment at the different hospitals in town. “What is disheartening is the fact that some security officials in uniform were said to have provided cover for the hoodlums who unleashed terror on our members and supporters at Agbaji. It is also unfortunate that the Federal Government and the APC would resort to using state institutions to harass and intimidate opposition figures

and their supporters. This is barbaric, illegal and undemocratic, and it must stop. “We condemn these repeated attacks on our party members and supporters, and call on security agencies not to be partisan and be alive to their responsibilities by fishing out perpetrators of these attacks and prosecute them accordingly to serve as deterrent to others who may be planning to carry out more attacks. Appropriate sanctions must be dished out to individuals who break our laws and endanger our collective peace. “We, therefore commend Governor Abdulfatah Ahmed for swiftly setting up a Joint Security Task Force headed by the Nigerian Army to check political violence before, during and after the general elections in the state. We must do everything possible to prevent violence and unnecessary loss of lives as we prepare for the elections,” she added.

Thursday 17 January 2019

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BUSINESS DAY

Live @ the Stock exchange Prices for Securities Traded as of Wednesday 16 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. 167,782.24 5.80 0.86 233 11,741,940 254,785.69 7.45 2.05 142 7,724,544 UNITED BANK FOR AFRICA PLC 689,153.04 21.95 0.23 325 16,231,311 ZENITH BANK PLC 700 35,697,795 OTHER FINANCIAL INSTITUTIONS FBN HOLDINGS PLC 263,830.40 7.35 -2.00 259 13,722,763 259 13,722,763 959 49,420,558 BUILDING MATERIALS DANGOTE CEMENT PLC 3,203,615.39 188.00 4.44 109 1,083,945 LAFARGE AFRICA PLC. 108,417.85 12.50 - 82 1,989,629 191 3,073,574 191 3,073,574 EXPLORATION AND PRODUCTION SEPLAT PETROLEUM DEVELOPMENT COMPANY PLC 338,944.07 576.00 - 12 499 12 499 12 499 1,162 52,494,631 REAL ESTATE INVESTMENT TRUSTS (REITS) SKYE SHELTER FUND PLC 1,900.00 95.00 - 0 0 11,300.89 45.20 - 0 0 UNION HOMES REAL ESTATE INVESTMENT TRUST (REIT) 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 - 1 40 VALUEALLIANCE VALUE FUND 3,312.39 103.20 - 0 0 1 40 1 40 1 40 CROP PRODUCTION FTN COCOA PROCESSORS PLC 440.00 0.20 - 2 670 78,220.62 82.00 - 15 73,779 OKOMU OIL PALM PLC. PRESCO PLC 62,000.00 62.00 - 8 27,462 25 101,911 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 - 13 190,292 13 190,292 38 292,203 DIVERSIFIED INDUSTRIES A.G. LEVENTIS NIGERIA PLC. 767.71 0.29 - 3 2,266 186.79 0.48 - 2 2,282 JOHN HOLT PLC. S C O A NIG. PLC. 1,903.99 2.93 - 0 0 51,216.47 1.26 -3.08 71 5,039,051 TRANSNATIONAL CORPORATION OF NIGERIA PLC U A C N PLC. 25,355.41 8.80 1.15 72 6,127,402 148 11,171,001 148 11,171,001 BUILDING CONSTRUCTION ARBICO PLC. 711.32 4.79 - 0 0 0 0 INFRASTRUCTURE/HEAVY CONSTRUCTION JULIUS BERGER NIG. PLC. 37,488.00 28.40 - 17 17,255 165.00 6.60 - 0 0 ROADS NIG PLC. 17 17,255 REAL ESTATE DEVELOPMENT UACN PROPERTY DEVELOPMENT COMPANY PLC 4,287.35 1.65 - 5 14,024 5 14,024 22 31,279 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 35,000 GOLDEN GUINEA BREW. PLC. 242.22 0.89 - 0 0 GUINNESS NIG PLC 155,517.18 71.00 9.65 46 776,100 INTERNATIONAL BREWERIES PLC. 260,024.82 30.25 -2.42 5 55,953 NIGERIAN BREW. PLC. 623,758.36 78.00 - 86 321,031 138 1,188,084 FOOD PRODUCTS DANGOTE FLOUR MILLS PLC 32,000.00 6.40 1.59 55 683,964 DANGOTE SUGAR REFINERY PLC 174,600.00 14.55 - 29 83,872 FLOUR MILLS NIG. PLC. 79,752.38 19.45 0.78 43 318,045 HONEYWELL FLOUR MILL PLC 9,992.05 1.26 9.57 36 2,033,995 MULTI-TREX INTEGRATED FOODS PLC 1,340.10 0.36 - 0 0 N NIG. FLOUR MILLS PLC. 703.89 3.95 -9.20 11 1,105,780 NASCON ALLIED INDUSTRIES PLC 49,279.55 18.60 3.33 11 257,130 UNION DICON SALT PLC. 3,676.41 13.45 - 0 0 185 4,482,786 FOOD PRODUCTS--DIVERSIFIED CADBURY NIGERIA PLC. 18,782.02 10.00 - 10 14,570 NESTLE NIGERIA PLC. 1,110,590.67 1,401.10 - 14 16,607 24 31,177 HOUSEHOLD DURABLES NIGERIAN ENAMELWARE PLC. 1,680.31 22.10 - 0 0 VITAFOAM NIG PLC. 4,690.67 4.50 - 17 274,543 17 274,543 PERSONAL/HOUSEHOLD PRODUCTS P Z CUSSONS NIGERIA PLC. 43,675.25 11.00 -8.33 38 4,613,279 UNILEVER NIGERIA PLC. 212,565.20 37.00 - 23 58,490 61 4,671,769 425 10,648,359 BANKING DIAMOND BANK PLC 48,868.42 2.11 1.44 229 141,231,359 ECOBANK TRANSNATIONAL INCORPORATED 247,718.94 13.50 - 27 165,262 FIDELITY BANK PLC 59,398.33 2.05 1.49 132 18,607,707 GUARANTY TRUST BANK PLC. 959,456.44 32.60 -2.69 297 17,442,910 JAIZ BANK PLC 14,732.12 0.50 -1.96 16 619,406 SKYE BANK PLC 10,687.83 0.77 - 0 0 STERLING BANK PLC. 57,292.93 1.99 -0.50 229 15,969,114 UNION BANK NIG.PLC. 179,092.63 6.15 1.65 41 388,354 UNITY BANK PLC 9,702.15 0.83 - 8 414,643 WEMA BANK PLC. 22,373.19 0.58 - 22 472,585 1,001 195,311,340 INSURANCE CARRIERS, BROKERS AND SERVICES AFRICAN ALLIANCE INSURANCE PLC 4,117.00 0.20 - 1 500 AIICO INSURANCE PLC. 4,366.03 0.63 1.61 24 1,698,790 AXAMANSARD INSURANCE PLC 20,475.00 1.95 - 4 23,400 CONSOLIDATED HALLMARK INSURANCE PLC 2,660.00 0.38 - 0 0 CONTINENTAL REINSURANCE PLC 19,811.94 1.91 - 0 0 CORNERSTONE INSURANCE PLC 3,240.49 0.22 - 2 1,100 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. 2,197.03 0.30 - 8 688,492 LAW UNION AND ROCK INS. PLC. 2,277.06 0.53 - 2 12,000 LINKAGE ASSURANCE PLC 4,720.00 0.59 - 1 1,000 MUTUAL BENEFITS ASSURANCE PLC. 1,680.00 0.21 - 5 1,050,610 NEM INSURANCE PLC 10,877.84 2.06 9.57 30 1,480,480 NIGER INSURANCE PLC 1,857.48 0.24 9.09 5 1,104,175 PRESTIGE ASSURANCE PLC 2,691.28 0.50 -1.96 3 294,000 REGENCY ASSURANCE PLC 1,333.75 0.20 - 3 102,601 SOVEREIGN TRUST INSURANCE PLC 1,834.98 0.22 10.00 16 6,890,194 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 - 0 0 VERITAS KAPITAL ASSURANCE PLC 3,050.67 0.22 10.00 6 940,000 WAPIC INSURANCE PLC 5,620.75 0.42 5.00 28 1,082,576 138 15,369,918

MICRO-FINANCE BANKS FORTIS MICROFINANCE BANK PLC 11,799.67 2.58 - 0 0 NPF MICROFINANCE BANK PLC 3,635.75 1.59 - 5 110,000 5 110,000 MORTGAGE CARRIERS, BROKERS AND SERVICES ABBEY MORTGAGE BANK PLC 4,116.00 0.98 - 0 0 7,370.87 0.50 - 0 0 ASO SAVINGS AND LOANS PLC INFINITY TRUST MORTGAGE BANK PLC 5,922.05 1.42 - 1 125 3,512.22 0.31 -8.82 2 100,723 RESORT SAVINGS & LOANS PLC UNION HOMES SAVINGS AND LOANS PLC. 2,949.22 3.02 - 0 0 3 100,848 OTHER FINANCIAL INSTITUTIONS AFRICA PRUDENTIAL PLC 8,000.00 4.00 - 33 209,073 34,114.81 5.80 9.43 6 90,034 CUSTODIAN INVESTMENT PLC DEAP CAPITAL MANAGEMENT & TRUST PLC 660.00 0.44 - 0 0 FCMB GROUP PLC. 36,436.99 1.84 3.37 96 6,412,187 1,234.89 0.24 - 2 50,000 ROYAL EXCHANGE PLC. STANBIC IBTC HOLDINGS PLC 486,426.26 47.50 - 15 16,270 18,900.00 3.15 -2.17 69 3,366,715 UNITED CAPITAL PLC 221 10,144,279 1,368 221,036,385 HEALTHCARE PROVIDERS EKOCORP PLC. 1,680.29 3.37 - 1 3,347 959.35 0.27 8.00 1 100,000 UNION DIAGNOSTIC & CLINICAL SERVICES PLC 2 103,347 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 - 2 1,200 14,111.34 11.80 -3.28 22 153,511 GLAXO SMITHKLINE CONSUMER NIG. PLC. 2,401.00 2.45 - 21 282,697 MAY & BAKER NIGERIA PLC. 1,053.17 0.61 -4.69 20 1,235,449 NEIMETH INTERNATIONAL PHARMACEUTICALS PLC NIGERIA-GERMAN CHEMICALS PLC. 556.71 3.62 - 0 0 PHARMA-DEKO PLC. 325.23 1.50 - 0 0 65 1,672,857 67 1,776,204 COMPUTER BASED SYSTEMS COURTEVILLE BUSINESS SOLUTIONS PLC 710.40 0.20 - 1 50 1 50 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 NCR (NIGERIA) PLC. 648.00 6.00 - 1 3,000 381.11 0.77 - 0 0 TRIPPLE GEE AND COMPANY PLC. 1 3,000 PROCESSING SYSTEMS CHAMS PLC 939.21 0.20 - 0 0 E-TRANZACT INTERNATIONAL PLC 16,590.00 3.95 - 0 0 0 0 2 3,050 BUILDING MATERIALS BERGER PAINTS PLC 2,492.48 8.60 - 4 7,167 CAP PLC 22,050.00 31.50 - 12 29,580 289,157.02 22.00 - 22 71,300 CEMENT CO. OF NORTH.NIG. PLC FIRST ALUMINIUM NIGERIA PLC 696.42 0.33 - 5 52,578 MEYER PLC. 313.43 0.59 - 1 20 1,999.41 2.52 - 2 20 PORTLAND PAINTS & PRODUCTS NIGERIA PLC PREMIER PAINTS PLC. 1,279.20 10.40 - 1 20 47 160,685 ELECTRONIC AND ELECTRICAL PRODUCTS AUSTIN LAZ & COMPANY PLC 2,256.91 2.09 - 0 0 CUTIX PLC. 3,170.38 1.80 - 4 29,870 4 29,870 PACKAGING/CONTAINERS BETA GLASS PLC. 30,148.31 60.30 -10.00 6 98,747 GREIF NIGERIA PLC 388.02 9.10 - 0 0 6 98,747 AGRO-ALLIED & CHEMICALS NOTORE CHEMICAL IND PLC 100,754.14 62.50 - 0 0 0 0 57 289,302 CHEMICALS B.O.C. GASES PLC. 1,577.57 3.79 - 4 2,625 4 2,625 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 - 1 2,000 1 2,000 PAPER/FOREST PRODUCTS THOMAS WYATT NIG. PLC. 50.60 0.23 - 0 0 0 0 5 4,625 ENERGY EQUIPMENT AND SERVICES JAPAUL OIL & MARITIME SERVICES PLC 1,252.54 0.20 - 29 2,208,073 29 2,208,073 INTEGRATED OIL AND GAS SERVICES OANDO PLC 54,698.21 4.40 -3.30 76 1,822,914 76 1,822,914 PETROLEUM AND PETROLEUM PRODUCTS DISTRIBUTORS 11 PLC 66,349.53 184.00 - 6 2,869 CONOIL PLC 16,134.39 23.25 - 18 32,392 ETERNA PLC. 5,738.24 4.40 2.33 20 316,138 FORTE OIL PLC. 38,292.94 29.40 5.00 78 860,434 MRS OIL NIGERIA PLC. 7,055.81 23.15 - 12 6,636 TOTAL NIGERIA PLC. 66,206.76 195.00 - 23 28,553 157 1,247,022 262 5,278,009 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 - 0 0 0 0 COURIER/FREIGHT/DELIVERY RED STAR EXPRESS PLC 2,593.79 4.40 - 1 182 TRANS-NATIONWIDE EXPRESS PLC. 328.19 0.70 - 0 0 1 182 HOSPITALITY TANTALIZERS PLC 642.33 0.20 - 0 0 0 0 HOTELS/LODGING CAPITAL HOTEL PLC 4,801.22 3.10 - 0 0 IKEJA HOTEL PLC 3,159.77 1.52 - 9 145,950 TOURIST COMPANY OF NIGERIA PLC. 7,862.53 3.50 - 0 0 TRANSCORP HOTELS PLC 46,362.46 6.10 - 0 0 9 145,950 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 941.17 1.22 -1.61 9 1,606,646 STUDIO PRESS (NIG) PLC. 1,183.82 1.99 - 0 0

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Thursday 17 January 2019

Reps begin consideration of 2019 budget proposal today KEHINDE AKINTOLA, Abuja

ouse of Representatives on resumption from the four-week recess, unveiled plans to commence debate on the 2019 budget proposal. Yakubu Dogara, speaker of the House of Representatives, disclosed this while addressing members. “I hope copies of the budget have been circulated? If copies of the budget have been circulated, we may have to start the second reading of the budget tomorrow,” the speaker urged. President Muhammadu Buhari had on Wednesday, December 19, 2018, presented N8.73 trillion budget proposal to the joint session of the National Assembly. Key assumptions in the 2019 budget proposal showed that 2.3mbpd oil production; $60 per barrel; 9.98 percent inflation rate; N119.28 trillion nominal consumption; N139.65 trillion; N139.65 trillion as nominal GDP and 3.1 percent GDP rate for the year 2019. The sum of N500 billion was proposed for Social Intervention Projects (SIP), consisting of N350 billion recurrent and N150 billion capital expenditure. The sum of N2.28 trillion was proposed for capital expenditure, inclusive of capital in statutory transfers; 1 percent of the Consolidated Revenue Fund amounting to N51.22 billion for the Basic Health Care Provision Fund and other related commitments As encapsulated in the budget proposal, Federal Government set revenue target of N6.97 trillion to fund the 2019 budget tagged ‘Budget of continuity. According to the President, N65 billion was proposed for implementation of Presidential Amnesty Programme; N45 billion as North East Intervention Fund; N10 billion as take-off grant for the North East Development Commission; N15 billion to support Small and Medium Scale Enterprises; N15 billion for recapitalisation of Bank for Agriculture and Bank of Industry as well as N10 billion as grant to Bank of Industry for the purpose of subsidising the interest rates charged on loans to Small and Medium Scale Enterprises with the view to make it possible for them to access single digit interest rate loans from the Bank of Industry. Buhari further unveiled the administration’s plan to include “N275.88 billion representing capital for the larger GOEs and N556.02 billion for Multi-lateral/Bi-lateral project-tied loans, the aggregate capital budget is N3.12 trillion. This represents 30 percent of the total Federal Government’s proposed expenditure for 2019.” While giving breakdown of the sources of revenue, Buhari disclosed that the sum of N6.97 trillion (3% lower than the 2018 estimate of N7.17trn), consist of N3.73 trillion oil revenue while non-oil revenue is estimated at N1.39 trillion.

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‘Political will, infrastructure, human capital development recipes for successful industrialisation’ ISRAEL ODUBOLA

xperts say political will, infrastructure, human capital development and sincerity of purpose to policies are the recipes needed for successful industrialisation in Nigeria. The quest for Nigeria to be an industrialised economy with high sustainable growth rate has been the policy focus of every administration that piloted the affairs of the nation after gaining independence in 1960. However, amid the struggles to realise these goals, the economy has been performing below desired expectations overtime.

The world is tending towards industrialisation; it is however saddening that Nigeria does not seems to be taking part in this general development. Going by key statistics, Nigeria’s performance is not impressive as the country is lagging behind other large economies in Africa – South Africa and Egypt. Capacity utilisation in Nigeria averaged 54.6 percent in the first three quarters of 2018, compared with South Africa and Egypt with an average of 81.1 and 72.3 percent in similar period. Manu fac tu r ing val ue added in Nigeria, which represents the manufacturing’s

sector net output derived from the difference of gross output and intermediate consumption, averaged $37.75 trillion in the last three years, compared with Egypt ($50.11trn) and South Africa ($38.39trn). A clear demonstration of political will to drive industrialisation and consistency in government policies. Government needs to exude seriousness across the variants of industrialisation such as trade relations, strategic alliance, trade protection and privatepublic partnership, according to analysts at Nigerian Institute of International Affairs. They say legislations should be enacted to compel new administration to pro-

ceed with existing policies and programmes of the previous ones, rather than embarking on new programmes that may probably fail. To them, inconsistency in policies, which is greatly due to transition in government, should be shunned. Another factor that could put Nigeria on the path of industrialisation is human capital development, Gbenga Ojewoye, a political economist, notes, saying, “Industrialisation is ineffective without investment in human and social capital.” He told BusinessDay on phone that, “no economy can industrialise without investment in the people,” add-

ing that massive investment should be embarked upon in the area of human capital development, especially education, adding that educational institutions need urgent reformation; technicians should be trained and retrained also, science, technology and research need to be given priority. Adewale Dare, a research economist, posited that industrialisation would continually elude the country if nothing were done to improve the state of infrastructure. “Adequate infrastructures most especially power supply and transport networks support industrialisation, and without these, nothing can be done,” he told BusinessDay.

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Live @ The Exchanges Stock market sustains rally as investors snap up Dangote Cement, 23 others Stories by Iheanyi Nwachukwu

he Nigerian stock market rally was sustained on Wednesday January 16 as investors raised bets on the shares of Dangote Cement Plc, Guinness Nigeria Plc, Forte Oil Plc, and others seen in the basket of 24 gainers as against 16 losers. Increased bargains led to over N120billion in capital gains by stock investors. The Nigerian Stock Exchange (NSE) All Share Index (ASI) increased by 1.07percent at the sound of trading gong on the 9th floor of the Nigerian Stock Exchange while the Year-to-Date (ytd) return stood at minus 3.09percent. The All Share Index closed at 30,460.68 points as against the preceding day close of 30,137.53 points while Market Capitalisation

closed at N11.359 trillion as against preceding day close of N11.239 trillion, up by N120billion. Dangote Cement Plc led the rally after its share price gained N8 or 4.44percent, from N180 to N188. Guinness Nigeria Plc stock price also advanced from N64.75 to N71, gaining N6.25 or 9.65percent; Forte Oil Plc advanced from N28 to N29.4, adding N1.4 or 5percent. NASCON Plc moved up from N18 to N18.6, adding 60kobo or 3.33percent; while Custodian Investment Plc increased from N5.3 to N5.8, up 50kobo or 9.43percent. On the losers table, Beta Glass Plc recorded the highest decline after its share price dropped from N67 to N60.3, down by N6.7 or 10percent. PZ Cussons Nigeria Plc followed after its share price declined from N12 to N11, losing N1 or 8.33percent. GTBank Plc declined

from N33.5 to N32.6, down by 90kobo or 2.69percent; International Breweries Plc also dipped from N31 to N30.25, losing 75kobo or 2.42percent; while Northern Nigeria Flourmills Plc stock price lost 40kobo or 9.20percent, from N4.35 to N3.95. The volume of stocks traded increased by 1.92percent, from 300.03 million to 305.80 million, while the total value of stocks traded decreased by 35.27percent, from N3.24billion to N2.10billion in 3,642 deals. Diamond Bank Plc, Fidelity Bank Plc, GTBank Plc, Zenith Bank Plc and Sterling Bank Plc were actively traded stocks Wednesday on the Nigerian Bourse The Financial Services sector led the activity chart with 270.45million shares exchanged for N1.568 billion, followed by Conglomerates with 11.17million shares traded for N60million.

NSE lifts suspension on trading in C& I Leasing shares

ealing Members of the Nigerian Stock Exchange (NSE) have been notified that the full suspension placed on trading in the shares of C & I Leasing Plc was lifted on Monday January 14, 2019. The shares of the Company were placed on full suspension on 13 December 2018 to enable the Registrars

update the register of members, sequel to the share capital reconstruction exercise embarked upon by the Company. C & I Leasing has notified the Exchange that the reconstruction exercise has been completed and the shareholders’ register updated. Consequently the suspension placed on the Company’s shares was

lifted on Monday January 14, 2019. Trading in the shares of the Company has resumed. The outstanding shares of C&I Leasing before the reconstruction exercise were 1,882,818,912 of 50 Kobo each. With the conclusion of this exercise, the total outstanding ordinary shares of C & I Leasing are 404,252,500 ordinary shares of 50 Kobo each.

United Capital Daily insight SSA Monetary Policy in 2019: More hawkish?

onetary policy in SSA appears to be at a turning point and is likely to become more hawkish going into 2019. Although regional divergences may also persist, developments in the global space point to sustained tightening. Notably, about half of all the countries in SSA are scheduled for one election or the other. This includes up to 8 presidential elections in key Sub-Saharan African (SSA) economies such as; Nigeria, South Africa, Senegal, Mozambique, Maurita-

nia, Malawi, Botswana, and Namibia. Clearly, this could weigh on foreign investment in these countries, especially as the perceived political risk heightens amid rates hikes and policy changes in the advanced economies. Specifically, central banks in Angola and Nigeria are likely to continue to struggle with high inflation and weak economic activities, while their peers in East Africa (led by Kenya) could be more dovish and accommodative amid relatively stronger GDP growth, which should support domestic

demand going into 2019. In South Africa, the direction of rates is unclear as the current term of the two most senior officials of the Reserve Bank runs out this year. While both could be reappointed, the possibility of changes in leadership adds to political uncertainty. Overall, in light of the monetary policies normalization by Advanced Economies and its consequential impact on capital flows into Emerging and Frontier markets, policy rates across SSA are set to remain high or become more hawkish.

NSE lists Mixta Real Estate, Sterling Investment SPV bonds

ealing Members of The Ni g e r i a n Bourse were on Wednesday January 16, 2019 notified that Mixta Real Estate Plc’s N2.961 billion 16.50% (Series II), Tranche A Senior Guaranteed Fixed

Rate Bond Due 2023; and N2.320billion 17.75% (Series II), Tranche B Senior Secured Fixed Rate Bonds Due 2023, issued under the N30billion Medium Term Note Programme were Wednesday, 16 January 2019 listed on The Exchange.

They were also notified that Sterling Investment SPV Plc’s N32.899billion, 7-Year 16.25% Fixed Rate Unsecured Bonds Due 2025 (Series II) issued under the N65billion Debt Issuance Program were on Monday January 14 , 2019 listed on The Exchange.

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Theresa May hints at delay to UK’s exit from Europe

British prime minister fails to rule out extension to Article 50 divorce process Henry Mance and Mehreen Khan

heresa May has hinted that she could delay the date Britain leaves the EU, as the UK prime minister seeks to devise a new Brexit plan following the historic parliamentary defeat of her original deal last night. Ministers have been split on whether to back an extension to the so-called Article 50 negotiation period, a prospect that would dramatically reduce the likelihood of a no-deal Brexit but would infuriate Conservative Eurosceptics. In parliament on Wednesday, Mrs May refused to rule out requesting a delay to the current Brexit date of March 29 — but said the EU would only agree if “it was clear there was a plan that was moving towards an agreed deal”. Under an EU court ruling, the UK can unilaterally revoke Article 50 and permanently remain in the bloc, but extending negotiations requires the agreement of all other 27 members. There was mounting evidence EU leaders would be open to a postponement. Peter Altmaier, an influential minister in the German government, said while it was up to Mrs May to decide whether to request an Article 50 extension, such a move would be given serious consideration. “When parliament needs more time, then this is something that will have to be considered by the European Council, and personally I would see that as a reasonable request,” Mr Altmaier told the BBC. Philip Hammond, the chancellor, suggested in a conference call

with business leaders on Tuesday night that the government would be open to an extension in order to find a cross-party consensus on a new Brexit plan. But Andrea Leadsom, the leader of the House of Commons, on Wednesday morning ruled out such a delay. “We’re clear we won’t be delaying Article 50, we won’t be revoking it,” Ms Leadsom told the BBC. “What we need to do is to find a way that [Mrs May’s] deal or some part of it or an alternative deal that is negotiable can then be put to the European Union.” Despite the overwhelming defeat of the pact that Mrs May had agreed with Brussels after two years of talks, Michel Barnier, the chief EU negotiator, signalled he had little leeway to change its parameters. Speaking in the European Parliament on Wednesday, he urged UK MPs to determine quickly “very clearly” what they want in a new EU exit deal, but insisted Mrs May’s agreement remains the “best compromise” Brussels can offer. Mr Barnier warned that parliament’s 230-vote rejection on Tuesday evening provided no indication of what the UK wants or how negotiations can now proceed. “This vote is not a clear manifestation of a positive majority which would define an alternative project,” Mr Barnier said. “It is up to [the] British government to assess the outcome and indicate how we are to take things.” The outlines of a revised agreement remain elusive. Much of the opposition in Westminster centres on the so-called Irish backstop, an insurance policy in Mrs May’s Brexit deal that would force the UK into a customs union with the EU to avoid

a hard border on the island of Ireland if no bilateral trade agreement is reached. But Mr Barnier warned there could be no changes to the existing, legally binding arrangements on the backstop, which are loathed by Brexiter MPs as a “trap” to keep the UK aligned by EU customs rules. “The backstop must remain a backstop; it must remain a credible backstop,” Mr Barnier said. David Gauke, the justice secretary, pointedly refused to rule out offering to keep the UK in the EU customs union, saying “I don’t think it makes sense at this point to be creating red lines in terms of our discussions.” Mrs May herself said that, to respect the referendum result, the

UK must have “new opportunities to trade with the rest of the world”. Ken Clarke, the Europhile former UK chancellor, said there was a parliamentary majority in Westminster for extending Article 50 and keeping the UK within a customs union with the EU. Mrs May did not rule out the possibility of a permanent customs union, which would breach one of her so-called Brexit red lines and potentially split her Conservative party. Before relaunching her crossparty consultation process, Mrs May must survive a vote of no confidence on Wednesday evening after Jeremy Corbyn, the opposition Labour leader, tabled a challenge to her government. The vote, which is scheduled for 7pm, is expected to be anticlimactic,

however, with both rebel Conservatives and the Democratic Unionist party, the Northern Irish group that Mrs May relies on to prop up her minority government, vowing to back the prime minister. With just 10 weeks before a planned exit date, Mr Barnier said Brussels would remain “lucid and clear” in ensuring there will not be a no-deal Brexit and urged the UK to consider a closer relationship with the EU as an alternative. “If the UK chooses to shift its red lines in the future, and if it makes the choice to be more ambitious, to go beyond the free trade agreement then the EU will be immediately ready to go hand in hand with that development and give a favourable response,” he said.

Investigating fraud in Congo’s suspect elections

Government shutdown begins to harm US economy

Electoral commission mustprove honestdealing orconducta recount

Kana Inagaki and Leo Lewis

he Financial Times has published an analysis of two sets of data that indicate there was massive fraud in recently concluded elections in the Democratic Republic of Congo. The data suggest the administration of Joseph Kabila, who has been president of the vast central African country for nearly 18 years, helped engineer a result intended to keep him close to power. Mr Kabila, 47, was required by the constitution to leave office in December 2016. According to the data sets, thoroughly examined by experts, Martin Fayulu, leader of the Lamuka opposition coalition, won by several million votes. They show that Felix Tshisekedi, the presumed winner in results announced last week by the electoral commission, came a distant second. The data, one set of which the FT believes came from the electoral commission’s servers, lend credence to the theory that Mr Kabila has engineered a powersharing deal with Mr Tshisekedi.

One rumoured version even suggests Mr Kabila will remain at his current presidential residence in the capital, Kinshasa. New evidence aside, there is ample reason to believe that Congolese voters have been defrauded by the authorities. The Catholic Church, which in the absence of large foreign observer missions had the best election-day monitoring set-up, suggests Mr Fayulu won by a landslide. The only credible opinion polls taken before the December 30 contest also showed Mr Fayulu — whose campaign was bankrolled by two wealthy politicians excluded from the contest — with a commanding lead. To add to suspicion, Mr Tshisekedi, the son of a veteran opposition leader who died in 2017, has undergone an odd metamorphosis in recent weeks. From being a stalwart opponent of Mr Kabila, he has taken to calling him a “partner for change”. Since Mr Kabila’s coalition dominated legislative elections, it is likely to demand control of the most influential ministries, including security and mining — crucial in a country fabulously rich in minerals.

Sam Fleming and Brooke Fox he record-breaking US government shutdown is triggering ripple effects across the US economy and risks denting confidence among companies that have already been fretting about trade disputes and stock market turbulence. Shutdowns have historically had only fleeting economic effects, but Jay Powell, the Federal Reserve chairman, warned last week that a dispute that outlasts past impasses could begin to change the picture for the worse. The deadlock in Washington, which has entered its fourth week, raises particular concerns over looming tussles around the need to lift or suspend the ceiling on US public debt this summer, as well as the fate of public spending caps that will bite late this year. “It [the shutdown] definitely becomes a significant shock if it lasts for months rather than weeks,” said Ethan Harris, head of global economics research at Bank of America Merrill Lynch. “There is a sensitivity in the markets to signs of dysfunction in Washington.” Direct effects The most immediate economic

impact will stem from a reduction in work performed by federal employees. In 2013 more than 800,000 federal workers were furloughed for 16 days, meaning they were told not to report to work and did not receive any pay. The Bureau of Economic Analysis estimated that real gross domestic product growth was consequently trimmed by 0.3 of a percentage point. Recently updated estimates from White House economists suggest that the effect of work not being done by 380,000 furloughed federal workers this time round will shave 0.08 of a percentage point off GDP every week the shutdown carries on. In addition, the loss of work done by federal contractors will trim an additional 0.05 percentage point from activity. The shutdown may also have a sharp, if temporary, impact on US employment data. Those federal employees who are at home and not getting paid may temporarily be classified as unemployed in January jobs data by the Bureau of Labor Statistics, said analysts at JPMorgan Chase. Payrolls data would also be affected. There should be a brisk bounceback in those indicators as soon as government employees go back to

work. The overall toll exacted by the October 2013 shutdown was fairly modest: the economy grew by an annualised 3.2 per cent in the fourth quarter of that year. Broader effects As the shutdown extends further into unprecedented territory, however, the economic effects will become more significant. As analysts at Standard & Poor’s said last week, “the longer this shutdown drags on, the more collateral damage the economy will suffer”. The indirect effects, which are not captured by narrow economic modelling, include potential lost spending by individuals who are missing wages because of the impasse. On top of the 800,000 government workers who are not receiving wages — which in addition to furloughed employees includes those required to work like airport security staff — hundreds of thousands of contractors are also being affected. A paper from Scott Baker of Northwestern University’s Kellogg School of Management and Constantine Yannelis of NYU Stern School of Business suggests the 2013 shutdown triggered a 10 per cent to 15 per cent drop in consumer spending by federal workers who went unpaid.

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NATIONAL NEWS

Somali militants claim responsibility for Nairobi hotel attack

Martin Fayulu has reason to thank Congo voting machines he once feared

Al-Qaeda-linked terrorists strike upmarket area of Kenyan capital, killing at least 15

Devices used for first time show official victor Tshisekedi came second

David Pilling, Tom Wilson and Donald Magomere

Tom Wilson, David Blood and David Pilling

he people of the Democratic Republic of Congo may have just experienced one of the biggest electoral frauds in recent history. The country’s electoral commission last week announced opposition leader Felix Tshisekedi as the winner of a historic election marking the end of President Joseph Kabila’s 18 years in power. But a Financial Times analysis of two separate collections of voting data shows that he didn’t win. At 3am Kinshasa time on January 10, the commission told bleary-eyed Congolese that the tallies of the main candidates were as follows: Mr Tshisekedi had 38.6 per cent, rival opposition leader Martin Fayulu 34.8 per cent and ruling party pick Emmanuel Shadary 23.8 per cent. According to the election data seen by the FT, representing 86 per cent of total votes cast across the country, the outcome was very different. Mr Fayulu won 59.4 per cent of the vote, the data shows, while Mr Tshisekedi should have finished a distant second with 19 per cent and Mr Shadary polling at 18 per cent. The FT compared the figures to a separate set of voting results collected manually by the country’s respected Catholic Church, which ran the biggest election observation mission. The two sets correlated almost exactly and would have been near impossible to fake, experts said. The group of Catholic bishops, known as the CENCO, has been outspoken since the vote. Five days after the election, it said voters has expressed “a clear choice at the ballot box” and called on the electoral commission to accurately report the result. Privately it told diplomats that Mr Fayulu was in an unassailable lead and after Mr Tshisekedi was declared the victor, it told the UN Security Council that the commission’s result did not match its own tallies. Those tallies, representing 43 per cent of turnout and collected by hand from 28,733 polling points, were seen by the FT and show that Mr Fayulu secured 62.8 per cent of this sample of votes. By contrast, the figures in the leaked data are electronic tallies from 62,716 voting machines across the country and were said to have been obtained from the electoral commission’s central database before the results were announced. The electoral commission introduced the untested electronic voting machines in Congo for the first time in December, claiming the devices would help to reduce costs. The machines printed ballot papers that were counted by officials on election night — but they also stored electronic counts. During the election campaign, Mr Fayulu warned that the machines would be used to rig the vote. In the end the devices may have given the opposition leader the transparency he has demanded.

Thursday 17 January 2019

Ex-Ivory Coast leader Laurent Gbagbo acquitted of war crimes Defeat for ICC’s first prosecution of a former head of state on lack of evidence Neil Munshi

he International Criminal Court has acquitted former Ivory Coast president Laurent Gbagbo of crimes against humanity in a verdict seen as a stunning defeat for the global body’s first prosecution of a former head of state. The court in The Hague found that prosecutors had not presented enough evidence to prove Mr Gbagbo and his former youth minister were guilty of crimes including ordering rape, murder, persecution and “other inhuman acts” after his electoral defeat in 2010. The violence left at least 3,000 dead and 500,000 displaced. The former president had pleaded not guilty to the charges. On Tuesday the court ordered that Mr Gbagbo and his co-defendant Charles Blé Goudé be released immediately. Judge Cuno Tarfusser said that the prosecutor had “failed to submit sufficient evidence to demonstrate the responsibility of Mr Gbagbo and Mr Blé Goudé”, including that there was a “common plan” to keep Mr Gbagbo in power. In a statement following the verdict, Amnesty International said Mr Gbagbo’s acquittal would be seen

“as a crushing disappointment to victims of post-election violence in Cote d’Ivoire”. “Victims of the 2010-2011 violence are yet to see justice and reparations for the harm they suffered,” the rights group said. In 2010 Mr Gbagbo refused to hand over power to Alassane Ouattara, the current president of the west African country. Five months later he and his wife, Simone Gbagbo, were captured hiding in a presidential palace bunker by forces backed by France and the UN. Ms Gbagbo, a former politician and activist, was convicted in 2015 by an Ivorian court of crimes linked to the post-election violence and sentenced to 20 years in prison. In August last year, Mr Ouattara came under fire for granting amnesty to Ms Gbagbo and 800 others in an attempt to maintain peace and stability. The Gbagbo ruling comes as a blow to the ICC prosecutor, which has a chequered record of holding senior government officials accountable. It has recently seen cases against former Kenyan leader Uhuru Kenyatta and, in June, Democratic Republic of Congo vice-president Jean-Pierre Bemba, collapse.

The prosecution has been criticised for not going after forces supportive of Mr Ouattara, who was re-elected in 2015, that were also accused of crimes. But some observers said Tuesday’s ruling burnished the court’s reputation for impartiality and could undercut accusations that the ICC is anti-African or neo-colonial. Amnesty said it “reminds us that fair trial and due process must be at the heart of international criminal justice”. Mr Gbagbo, a history lecturer with a doctorate from Paris Diderot University, spent years in exile and was a major force in bringing democracy to Ivory Coast. He was jailed by dictator Félix HouphouëtBoigny, who ruled the country for 33 years, and by his prime minister, Mr Ouattara, leading to a feud that lasted decades and culminated in 2010’s violence. Mr Gbagbo was elected in 2000 in disputed polls but refused to hold another election for a decade, during which he accrued power, suppressed political opponents and exploited tensions during a brutal civil war that tore the country apart. His trial began in January 2016. It will resume Wednesday, when the prosecutor will say whether it intends to appeal against the decision.

SportyBet offers 300 seconds super trolley dash to end reindeer month campaign

portyBet, sports betting company made the festive season a memorable one for its loyal customers with the SportyBet Reindeer Month Campaign giveaway, which ran for five weeks, and ended with a Super Trolley Dash. Various gifts were offered weekly by SportyBet from 18 December, 2018 to 12 January, 2019. To end the five weeks SportyBet Reindeer Month Campaign giveaway was an exciting Super Trolley Dash, organized in partnership with SPAR Nigeria, which is a first for any Sports betting company in Nigeria. Aderemi Adedayo, a Mechanical Engineering graduate currently undergoing the mandatory Youth Service in Lagos became the lucky winner of the SportyBet Reindeer Month Trolley Dash contest that was keenly contested by millions of participants in a 5-day campaign to select the lucky winner. Adedayo had an uninterrupted 300 seconds at SPAR Nigeria, Lekki to select at will whatever he wanted

at the SPAR courtesy of SportyBet. Among the items picked were a LED TV, Home Theatre, Gas Cooker, Washing Machine, Portable Refrigerator, Air Conditioner Unit, and many others. “Sincere appreciation goes to the board at SportyBet Nigeria, I’m indeed grateful for the privilege I had as the winner of the SportyBet Reindeer Month Trolley Dash. I really appreciate it. “I was expecting to get just one gift, but I got more than what I bargained for. Thank you very much. Get Sporty, Bet Sporty,” said Adedayo. Odiri Eboh, the marketing manager of SportyBet Nigeria, said the betting company is in the business of looking for ways to entice and excite its users from offering crazy odds, to bonuses and freebies in terms of free bets or merchandise. The entire 5 weeks campaign is SportyBet’s way of saying thank you to Nigerians. “We have always been passionate with giving back to a community that

has given us more; so this trolley dash campaign is one way of appreciation to Nigerians that have adopted SportyBet as their own. The idea behind the campaign is that we want a situation where one lucky winner is given the opportunity to change his lifestyle and story in five minutes,” said Eboh. Emmanuel Isangediok, the marketing managers of SPAR Nigeria said, SPAR understands the hyper market chain in Nigeria better, having been around in the country for 30 years. “You can see from our competitors that you can just get, maybe grocery items from their store: so from our own end you can get a lot of things other than grocery; that is why we are different,” he said. Speaking on the collaboration with SportyBet, Isangediok opined that SPAR Nigeria encourages and promotes positive life style through its chains of products. “It is a symbiotic partnership meant to be beneficial to both parties,” Isangediok said.

l-Shabaab, the Somali Islamist group linked to al-Qaeda, claimed responsibility for a terrorist attack on a hotel and office complex in Nairobi, Kenya’s capital, on Tuesday in which at least 15 people were confirmed killed and several injured. The attack, which started at 3pm and was still continuing several hours later, took place in the upmarket Westlands neighbourhood within a short distance of where al-Shabaab killed at least 67 people at the Westgate shopping mall in 2013. Nearly 11 hours after the assault began, bursts of gunfire and an explosion were heard in the area, suggesting that the situation was not yet under control despite government assurances. Scores of people were still hiding inside the complex, a security source said. Gunfire was first reported at Nairobi’s Dusit D2 hotel and complex, where several foreign businesses rent office space. Police said they had dispatched special units to the scene amid reports that gunmen — and possibly members of the public — were still inside. Witnesses told a local television channel that four gunmen had jumped from a car before shooting security guards and storming the complex. Video footage showed burning cars and dozens of people fleeing the scene. Henry Githaiga, a witness who was evacuated from the building, said he first heard an explosion before people started running haphazardly. “There was a very loud explosion as people tried to evacuate,” he said, adding that most of them returned to the building due to gun shots. In a statement, the Kenyan police confirmed the attack, saying: “We are aware the armed criminals are holding up in the hotel and specialist forces are now currently flushing them out.” The assault took place a day after a Kenyan court ruled that three men must stand trial for alleged involvement in the Westgate mall attack, which shook Kenya’s security establishment and forced an overhaul of its anti-terrorist activities. A spokesman for al-Shabaab’s military operations, Abdiasis Abu Musab, said, according to Reuters: “We are behind the attack in Nairobi. The operation is going on. We shall give details later.” The al-Qaida-affiliated group has waged an insurgency in southern Somalia for more than a decade and intensified attacks against Kenyan targets since the country sent troops to Somalia in 2011 to support a UN-backed operation. Three years ago, al-Shabaab militants stormed a Kenyan military base in Somalia, killing about 140 soldiers. Al-Shabaab blames Kenya for allowing its territory to be used as a US base for air attacks on its suspected camps in Somalia. According to Africom, the US Africa Command based in Germany, Washington has significantly stepped up drone attacks on suspected al-Shabaab terrorists since Donald Trump became US president.

Thursday 17 January 2019

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Goldman CEO apologises to ‘people of Malaysia’ for 1MDB scandal Laura Noonan

oldman Sachs chief executive David Solomon has apologised to the “people of Malaysia” for the involvement of its former partner Tim Leissner in the multi billion dollar 1MDB money laundering and bribery scandal. On his maiden earnings call on Wednesday, Mr Solomon insisted that Goldman had done nothing wrong but said: “It is very clear that the people of Malaysia were defrauded by many individuals including the highest members of the Malaysian government . . . Tim Leissner by his own admission was one of those people (involved in the fraud). “For Leissner’s role in that fraud, we apologise to the Malaysian people,” he added.

Goldman is being sued for billions of dollars and criminally prosecuted in Malaysia for its role in helping 1MDB to raise $6.5bn in debt, much of which was ultimately stolen. The firm is also facing action from the US Department of Justice. Mr Solomon said Goldman had been deceived by Mr Leissner and Malaysian officials and had no knowledge that Jho Low, the mastermind of the scheme, was involved as an intermediary. “It is priority for me that we are self critical and reflecting to ensure that our culture of integrity, collaboration and escablition only improves from this experience,” he said. Goldman’s fourth-quarter results included a $516m provision for litigation and regulatory matters, believed to largely relate to 1MDB.

Investment banking drives earnings beat for Goldman Sachs in Q4 Offsets sharp drop in fixed income revenue and a $516m litigation provision Laura Noonan

oldman Sachs beat earnings forecasts for the fourth quarter as a surge in revenues at its investment banking division offset an 18 per cent fall in fixed income revenues year-on-year and a $516m litigation hit. The firm, the closest thing to a pure play investment bank that Wall Street has left, posted pre-tax profits of $2.708bn, beating the $2.39bn predicted by analysts but down 13 per cent year-on-year. Quarterly revenues of $8.08bn were 1 per cent lower than a year earlier, but comfortably above the $7.51bn expected by analysts. “For the year, we delivered doubledigit revenue growth, the highest earnings per share in the firm’s history and the strongest return on equity since 2009,” said chief executive David Solomon, who took over running the firm in October and has seen much

of his early months marred by the 1MDB bribery and money-laundering scandal, which analysts fear could cost Goldman billions. Goldman did not break out how much extra it was setting aside for potential 1MDB litigation, but took $516m in net provisions for ‘litigation and regulatory proceedings’ in the fourth quarter, well above a $9m charge for litigation in the fourth quarter of 2017. Fixed income was the other black spot, with revenues falling 18 per cent in the quarter to $822m, largely in line with the other big Wall Street banks that have reported earnings this week, as volatile markets hurt performance. In investment banking, Goldman enjoyed a 56 per cent year-on-year rise in advisory revenues, which surged to $1.2bn, marking the biggest increase in advisory revenues of any of the four Wall Street giants to so far report earnings.

How much will it cost banks to borrow? Thomas Hale

lot can change in a year. Last January, UniCredit borrowed €1.5bn at a spread of 75 basis points over 5-year swaps. This month, a similar trade in dollars cost them 400 basis points over treasuries — over five times higher. Both of these bonds are subordinated compared to traditional senior bank bonds, a critical, trillion-euro source of borrowing for the industry, which is, after all, in the business of borrowing. But their costs — and cost to the business — were very different. Banking equity research has over recent years focused heavily on interest rates and economic conditions, but it has tended to neglect the funding implications of new bail-in regulations, with which credit researchers have become obsessed. Those regulations aim to make bonds riskier, forcing investors to bear losses that would otherwise hit the taxpayer (as they did during the crisis). Most importantly, these bonds must be subordinated to depositors. This is an omission, because funding costs are an important part of the viability of any business. A new UBS report (from the bank’s equity research depart-

ment) provides insights into how the new regulations might feed in to the sector’s performance. European banks currently face two funding problems: a potential withdrawal of 721bn in cheap ECB funding, and a need to issue the new loss-absorbing debt to comply with Brussels rules. Here are some of the numbers: Wi t h € 1 , 0 3 0 b n i n s e n i o r bonds already in issue we see banks having to roll €390bn of non-compliant paper into more expensive bail-in-able instruments, issue an additional €60bn in compliant paper and continue to service and refinance €333bn in already-eligible instruments. UBS researchers suggest that there are big differences between the capacity of individual banks to weather the new funding costs: There is a high concentration of smaller Italian and Spanish banks which we think need to significantly grow or create senior unsecured programmes on lower credit ratings and with relatively high P2R (P2A) requirements. Capital markets have been mostly shut for Italian banks. Banca Carige, for example, had to issue a subordinated bond to the Italian depositors’ guarantee fund, in the absence of market buyers.

David Solomon, who has replaced Mr Blankfein as Goldman’s chief executive, told former partners recently that one person ‘who was intent upon it’ could do a lot of damage © Bloomberg

Stocks stay positive as China stimulus helps offset Brexit risks Pound holds $1.28 after MPs reject deal, FTSE falters while continental bourses tick up Michael Hunter and Edward White

quities were cautiously higher on Wednesday as investors measured further stimulus measures from China, and reassuring corporate earnings in the US, helping offset the risks posed by political turmoil surrounding Brexit. On Wall Street, the S&P 500 was up 0.4 per cent in mid-morning New York trade, while the Europe-wide Stoxx 600 rose 0.6 per cent, with the Xetra Dax in Frankfurt up 0.4 per cent. Sentiment in the US was helped by encouraging earnings from investment powerhouses Goldman Sachs. and BlackRock. Their shares rose more than 6 per cent and 4 per cent respectively. London’s FTSE 100 missed out, held back by losses for consumer stocks. It fell 0.3 per cent overall, although the mid-cap FTSE 250 rose by 0.2 per cent. Sterling kept its nerve, trading slightly higher against the dollar at

$1.2867, having fallen as much as 1.5 per cent to a six-session low of $1.2668 on Tuesday, when the UK parliament, as expected, rejected the government’s deal on the terms of departure from the EU. Investors continued to expect that a disorderly Brexit would be avoided, and moved back out of the relative safety of UK government debt, sending the yield on benchmark 10-year gilts up 6 basis points to 1.31 per cent. It fell just under 4bp on Tuesday, amid overall demand for the paper. “The reaction of the pound to the vote suggests markets are not currently increasing the risk of an adverse outcome. “The Brexit process still has some way to play out: many commentators are describing the PM’s unprecedented defeat as plunging the UK into a constitutional crisis, but while we are indeed entering uncharted waters, we believe it is too early to draw this conclusion “For the time being, we expect that uncertainty will stay high and UK

markets volatile.” Dean Turner, UK Economist at UBS Global Wealth Management “Outside the UK the country is a laughing stock and [an] embarrassment, which is encouraging investors and fund managers to view the UK as a bit of a basket case for now. “The sooner this mess is sorted the better for shoppers, retailers, landlords and investors.” Clive Black, Research analyst, Shore Capital Equities Hong Kong’s Hang Seng added 0.3 per cent. The CSI 300 index of Shanghai and Shenzhen-listed stocks was flat. China-focused markets made strong gains earlier in the week on details of tax cuts as Beijing sought to boost the slowing Chinese economy. China’s central bank injected a record $84bn into the country’s banking system via open market operations on Wednesday, the latest effort to boost liquidity and promote increased lending to the economy.

Denmark’s DSV launches $4.1bn bid for rival Panalpina Swiss freight transport group has been under pressure from activist investor Cevian Richard Milne

enmark’s DSV has made a $4.1bn takeover approach to freight transport rival Panalpina following pressure from Europe’s largest activist investor for the Swiss company to sell itself. Shares in Panalpina jumped 30 per cent on Wednesday to just above DSV’s offer price, indicating shareholders are expecting a bidding war — Swiss rival Kuehne & Nagel has previously expressed an interest. DSV, which is the world’s fifthlargest freight forwarder behind market leader DHL, has grown rapidly in recent years through more than a dozen acquisitions. A deal with Panalpina would make it the number four player in an industry that helps organise companies’ supply chains. Cevian Capital, Europe’s biggest activist investor, has publicly called for Panalpina to explore a deal to sell itself after the Swiss company’s share price stagnated for the past five years because of weaker profit margins

than its competitors. Cevian, which owns 12 per cent of Panalpina, first disclosed a stake in the Swiss company nine years ago and is looking for an exit, given that it typically sells out after 5-10 years. Jens Lund, DSV chief financial officer, told the Financial Times: “We have followed Panalpina for many years. We have, of course, had a dialogue with them over time. A combination with our company would create a lot of value. In our industry, economies of scale mean a lot.” DSV is offering SFr55 a share and 1.58 of its own shares for each share in Panalpina. As DSV’s shares rose 5 per cent to DKr498 on Wednesday, the value of its offer increased to about SFr173.88. Panalpina’s own shares rose 31 per cent to SFr179.60, something some shareholders attributed not just to the prospect of other offers or a sweetened bid by DSV, but also short covering because of a number of bets beforehand on the Swiss company’s shares falling. Mr Lund declined to comment

on whether DSV might improve its offer, as several analysts speculated. He argued that it was offering “a very high multiple, one of the highest the industry has seen” and noted that Panalpina shareholders would benefit from a rising DSV share price. Analysts at Morgan Stanley noted that DSV was offering about 14.4 times estimated earnings before interest, tax, depreciation and amortisation compared with a multiple of about 12 times for DSV and Kuehne & Nagel. But they added that if DSV could boost Panalpina’s ebitda margin from 3.9 per cent to 7 per cent by the end of the decade, compared with the Danish group’s own 8.8 per cent, then the multiple would fall to about 8 times in 2020. Much depends on Panalpina’s main shareholder, the Ernst Göhner foundation, which owns 46 per cent of the shares. Panalpina’s chairman announced in November that he would not stand for re-election following a call from Cevian for him to leave and the company to be open for mergers.

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Thursday 17 January 2019

ANALYSIS How Santander’s ditching of Andrea Orcel stunned finance industry

Top investment banker’s transition to retail lending was troubled from the start David Crow and Stephen Morris

Spain wrestles with a private equity boom Crisis-era reforms have made it a target for investors looking to cut costs — and jobs Javier Espinoza

ike his father before him, Josep Bayod Cueto worked at one of Spain’s oldest companies for decades. It never occurred to the 59-year-old that he might lose his job at the sparkling winemaker Codorníu even as the company prepared to sell the family-owned business to a US buyout fund. So when his redundancy notice arrived just over a year ago “it felt like a divorce”, says Mr Bayod Cueto sitting in a café in the town of Sant Sadurní d’Anoia in Catalonia where Codorníu has had its headquarters for almost 500 years. “I fear I won’t be the last.” His position was one of 100 — a sixth of the total workforce — axed in 2017 as Codorníu began negotiating a €390m sale, prompted by falling sales and shareholder disquiet, to the US-based Carlyle Group. Although the job losses predate completion of the Carlyle deal it has fuelled fears of further cuts in the town, whose 13,000 inhabitants rely on cava production to make a living. The fallout from the job losses has also cast an uncomfortable light on the rising role of private equity in Spanish dealmaking. In the first nine months of 2018 foreign private equity funds invested a record €4.35bn in Spain — according to an analysis by the Spanish Venture Capital & Private Equity Association (ASCRI). In some quarters that investment is prompting anxiety over the expansion of what critics view as a ruthless form of capitalism. According to ASCRI the number of international funds — some of them with billions of dollars under management — operating in Spain has grown, from 157 in 2016 to 184 in 2017. Permira, BC Partners, Cinven and KKR have all struck deals in Spain recently against a backdrop of economic recovery. “Spain is an attractive place to invest,” says Lionel Assant, European head of private equity for the US buyout group Blackstone, which recently took control of the gaming group Cirsa. “It has grown above most other eurozone countries for the last few years on the back of the structural reforms the country undertook and we expect that healthy rate of growth to continue.” Last year, Luxembourg-based CVC, one of Europe’s largest buyout funds, bought a 20 per cent stake in Gas Natural Fenosa from Spanish energy company Repsol in a €3.82bn deal. The company was already planning to cut 1,400 jobs globally as part of a wider restructuring to save €538m. But since the deal was struck the company, rebranded Naturgy, has axed 800 posts through voluntary redundancies, more than the 300 planned for 2018. Naturgy is now minority owned by a Spanish holding company, Criteria Caixa,

which owns 24 per cent. Global Infrastructure Partners, a New Yorkbased private equity fund, owns another 20 per cent. It is not just at Naturgy that there are concerns, across Spain workers fear the impact these groups might have on their jobs. Private equity groups tend to make money by buying companies, improving their efficiency through job cuts in underperforming areas and acquiring smaller businesses to merge them with the view to selling the company for a profit two or three years down the line. “These cuts are a way of generating more value for shareholders,” says Toñi Prieto, general secretary of the 117,000-member Unión Sindical Obrera and a longtime employee at Naturgy. “But we are slowly losing our culture. Following the voluntary redundancies the loyalty to the company has been diluted.” Spain is not the first country to display ambivalence to private equity funds. Industry observers have likened the hostile reaction in Spain to that in Germany more than a decade ago when the chairman of the then-ruling Social Democrat party likened financial investors to “a plague of locusts” descending only to strip firms of assets and shred jobs to make a quick buck. Such scepticism is acute in Spain, a country battered by the financial crisis. At the height of the recession, in 2013, Spain had one of the worst unemployment rates in the EU with nearly half of all young people without a job. The deep downturn was mainly a result of the crash of the local property market and disarray in the financial system. The country is now enjoying some of the healthiest growth rates in the EU. Unemployment is expected to fall to 13.3 per cent by next year — still high at almost double the EU average, but down from 16 per cent in 2017 — and close to the rate in 2008 before the crisis hit. Labour reforms dating back to 2012 and an overhaul of the banking system have acted as catalysts for dealmaking, according to multiple private equity executives in the country. “For many years Spain was a place to avoid for investors because we didn’t enjoy a recovery as others in Europe did,” says Miguel Zurita, chairman of ASCRI. “At some point there was even talk of Spain leaving the euro and unemployment figures were quite alarming. It was almost impossible to justify an investment in [the country].” While there are domestic private equity players, overseas funds are making serious inroads. It is now “an attractive destination”, says Mr Zurita, also a managing partner at Altamar Capital Partners. The relaxation of labour laws, making it easier to hire and fire, has been particularly attractive to buyout funds, adds Mr Zurita. “As

an investor you prefer to invest where you have the ability to adjust to the market and labour is a key component.” He stresses that buyout groups do not, however, “buy with the idea of cutting jobs” but they do want “to have the option”. Iñaki Echave, former head of Spain for Blackstone, believes increased lending by local and global banks has been critical to foreign investors. “For years banks were either unable or unwilling to lend. The reform of the financial system in Spain has been more extensive and deeper than anywhere else in the continent,” he says. This has led to more loans being made available to fund transactions, he adds. S&P Global Markets Intelligence says €4.36bn was lent in 2017, up from just €700m two years earlier, according to data from LCD. A growing economy — gross domestic product increased by 3 per cent in 2017 — is not the only factor driving private equity investment. Concerns over Brexit have diverted attention to businesses in Spain. While groups including CVC, Carlyle and Apollo have also raised their largest ever funds. Armed with that cash, private equity is thriving not only in Spain but in Europe as well as the US, where the largest transactions since the financial crisis took place last year. Private equity groups have in recent times influenced the shape of some of the largest businesses in the world — from Unilever in Europe to Thomson Reuters in the US— deploying billions in loans and employing millions of people around the globe. But this frenetic activity is triggering a backlash in Spain, with some characterising buyout groups as little more than rapacious, greedy financiers looking to ride the recent economic boom without thinking about the long-term future of these companies and their employees. This image of the finance sector in Spain was cast during the country’s financial crisis when distressed investors — mainly hedge funds — bet against the battered Spanish economy. Some of these made quick profits by buying companies low and selling assets high after the collapse of the property sector. “We are not in distress any more but their actions created some noise,” says Mr Echave. “Those investors have moved elsewhere but private equity is about the long term.” Negative headlines about private equity deals outside the country have dogged the sector in Spain, says Ludovic Phalippou, professor of finance at Oxford university’s Saïd Business School and author of Private Equity Laid Bare. “There is a sense of emergency that private equity funds bring with them. People know this and it worries them at the start of an investment.”

ancel the welcome drinks and pulp the business cards: Andrea Orcel, the high-profile dealmaker from UBS, will not be joining Santander as chief executive after all. The announcement that Mr Orcel’s ascension to the top of Spain’s largest lender has been terminated following a row over a €50m compensation package has stunned the banking industry. Indeed, its capacity to shock was second only to the fact that Mr Orcel was appointed by Santander in the first place. Mr Orcel had expected to receive tens of millions of euros in Santander shares upon joining the

the details of his appointment, although one person briefed on the negotiations said he did receive a formal offer letter from the Spanish bank that was signed by Ms Botín. He also received assurances that he would be made good on the shares he was forfeiting by leaving UBS, the person added. Ms Botín was confident she could find a neat solution to the problem of Mr Orcel’s deferred UBS stock, which accounted for between 50 per cent and 60 per cent of his remuneration thanks to post-crisis rules that require bankers to be paid in locked-up shares that can be clawed back. Under the terms of Mr Orcel’s contract, UBS had every right to cancel the share awards because he was a “bad leaver” owing to the

Andrea Orcel, the outgoing investment bank boss of UBS, had expected to receive tens of millions of euros in Santander shares upon joining the bank © FT montage / Getty

bank to recompense him for €50m of deferred stock he earned during his seven-year stint at UBS. Under the terms of Mr Orcel’s contract, the Swiss bank was entitled to withhold his UBS shares because he was joining a rival. However, in a statement on Tuesday night — released moments before the parliamentary vote on Brexit in the UK — Santander said it had “become clear” that the cost of reimbursing the Italian-born banker would be “significantly above the board’s original expectations”. Mr Orcel’s attempted transition from the top echelons of investment banking to the world of retail lending was a troubled affair from the start, according to several people who were briefed on the tortured negotiations that culminated in Tuesday’s announcement. Ana Botín, Santander’s executive chairman, offered Mr Orcel the job in the summer, and was surprised he accepted so quickly: some of his UBS colleagues had considered him a candidate for the top role at the Swiss bank upon the eventual departure of incumbent Sergio Ermotti. The timing of Mr Orcel’s acceptance was problematic for UBS because he was scheduled to give a shareholder presentation on the group’s investment banking strategy at the end of October, the people said. He quickly handed in his notice and his move to Santander was announced on September 25, although UBS insisted that he take six months of gardening leave. The hurried announcement did not leave Mr Orcel and Santander with much time to hammer out

fact that he was quitting to join a competitor. However, Ms Botin thought she could convince the Swiss bank that Santander — primarily a consumer retail bank — was not really a rival to UBS’s wealth management and investment banking operations. Ms Botín had hoped her negotiating position would be strengthened by the fact that Santander was an important client of UBS’s investment bank, the people said. The connection between the two banks was forged in no-small part by Mr Orcel’s longstanding status as the Spanish group’s most trusted adviser, a bond that was initiated by Ms Botin’s father, Emilio Botín, the architect of modern Santander. She had hoped that UBS would conclude that its lucrative relationship with Santander was worth protecting, and that it would agree to a deal where it clawed back only some of Mr Orcel’s stock. Then, if Mr Orcel were willing to forfeit part of the money owed to him, Santander could make up the difference. Mr Orcel used his gardening leave from UBS to take a holiday to the US and South America, while Ms Botín lobbied Axel Weber, the Swiss bank’s chairman, on the merits of her compromise plan. But Mr Weber was unmoved. One person briefed on the negotiations said he was worried about the optics of UBS handing tens of millions of euros to a departing employee when it did not have to. “It was a matter of principle, not a commercial matter,” the person said.

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Inoyo Toro Foundation rewards Akwa Ibom teachers with cash

s more and more young people thumb their noses at the teaching profession, preferring instead to do buying and selling ‘if worse comes to the worst’, Inoyo Toro Foundation has found it needful to appreciate teachers in Akwa Ibom State and make them the envy of other professionals every year end. Public secondary school teachers who are adjudged the best in their best teachers in English, Mathematics and the Sciences go home with prize moneys of between N100,000 and N150,000. The immediate impact of the awards is that public school teachers are fired up to deliver their best and to be noticed for call up for the tests. Healthy competition is engendered as teachers seek to update their knowledge and to excel as teachers, the ultimate beneficiaries being their students. The Foundation by this gesture is supplementing the efforts of the Akwa Ibom State government to ensure capacity building in the education sector. According to Dr. Enobong Joshua, Chairman of the Awards Committee, 109 teachers sat for the test. They consisted of 24 English teachers 22 Mathematics teachers 15 Biology teachers 22 Chemistry teachers 19 Physics teachers 6 Economics teachers, and 1 Visual Arts teacher The first prize winner in each subject received N250,000, the second N150,000 while those adjudged third, got N100,000. Dr. Joshua bemoaned the lack of optimal performance by public school teachers. We believe, like many others that the reason for this can be traced to lack of incentives from the state government, as indeed teachers suffer from governments at different levels all over the federation. Another reason of course is the lack of oversight by staff of the edication ministries who leave uninspired teachers to carry on without appropriate sanctions. All of that is for government to address. However, individuals and organisations like the Inoyo Foundation are doing the needful to keep public school teachers revved up to deliver on the business of training today’s kids for the challenges of today and tomorrow. Winifred Oyo Ita, Head of the Service of the Federation, was a

special guest and she had a lot to say about the halcyon years when teaching was the most sought after profession. She related how her mother, the late Mrs. Angelica Ekpeyong Nyong taught for many years, beginning in 1969 at Ireti Primary School, Ikoyi, Lagos. That was back when, according to her, teachers were highly respected members of society who were collectively considered the custodians of wisdom and knowledge in their communities. Mrs Ita also regaled the audience with tales about her uncle, the late Asako Otu Nyong Edet Asido of Adiabo Okurikang in then Western Calabar (in today’s Odukpani Local Council). His fame was such that he was revered in Victoria Town, Cameroun, Port Harcourt, Lagos and Calabar, places where he made his mark as a teacher. But those days are gone, Oyo-Ita said. And the question society is currently grappling with is, “why are our teachers no longer feeling that amount of pride and accomplishment in their career? Where did we go wrong? I still remember then in those days when we were little, my mother used to tell us stories of how it was really fashionable and extremely prestigious to send your brilliant daughters to teacher training colleges, just as she attended Teacher Training College (TTC), Ifuho, Ikot Ekpene, Akwa Ibom State. In those days, it was a thing of pride to introduce your daughter as a student of TTC and you were sure that there would be a long line of potential suitors, who would like to have such a lady as a wife as did my mother. Also, children of teachers were always the lucky ones because at home we had a very good foundation educationally, and were ready to move to schools, where we would get the icing on the cake. So, you can see that we enjoyed both ways.” All of these is to say that we long derailed. And the work is not up to governments alone. The private sector must add its bit to see that teaching, the bedrock of development is not cobweb covered any longer. In this year’s edition, teachers won N500,000 each as Grand Mentor Teacher’s Award in Mathematics, Physics, Chemistry and Biology while Elizabeth Uduak Michael of Holy Trinity College, Mbiakong, Uruan Local Government was adjudged the Best Principal

‘Irresponsible’ Amazon under fire in France Stories ny Onuwa Lucky Joseph

ith all the poverty in the world and the lack of access to basic amenities suffered by people in the developed world, but more especially in the developing world, Amazon, in France, impudently destroyed thousands of goods (diapers, toys, Lego boxes, coffee makers, etc.) that were in perfect condition which they had just been unable to sell over the holiday season. The goods were neither recycled nor given to charity. The Secretary of State for France’s ecological transition, Brune Poirson, lamented the development and promised, going forward, to make companies ‘responsible’ for such

practices. “In the coming months”, she said, “a law will be passed in Parliament that will outlaw this kind of activity. Companies like Amazon will no longer be able to throw away products that can still be used.” This practice of destroying goods and products fit for consumption has dogged capitalism for a long time; that need to keep the market stimulated and on a high for the next fix of brand new factory rollouts; a practice that burdens the environment with avoidable waste which end up in landfills and sometimes in the world’s oceans. The worst part is when perfectly consumable food is thrown into the ocean just so that prices can remain high or competitive. It’s a big parting point between such

minded capitalists and humanitarians/environmentalists who do not see the sense of it. Worst part, when food is the subject, it is usually a national policy rather than just a rogue corporate establishment’s decision. This is one issue that the United Nations and other world bodies need to address this seriously and urgently. Unfortunately, the levers of power are firmly in the hands of those likely to engage in this odious practice. The job of exposing this dastardly Amazon practice fell to a resourceful journalist who sought and got employed by Amazon just so he could get an insiders’ view of the retail behemoth’s business practices. His footage of the destruction was run on an M6 Radio programme known as the ‘Capital’.

Vodacom takes robotics to students

reat oaks from little acorns grow is a saying that guides development for individuals and corporates. And it is the thinking behind Vodacom Business Nigeria’s one-day robotics training it held recently for five secondary schools in Lagos. The training which took place at the Canton Concourse Training Center, Victoria Island, in a relaxed and engaging atmosphere, gave the students the opportunity to open their minds to the various ways in which technology is shaping the world around them. They were also equipped with useful mechanical and programming skills which can be honed and developed as they progress through the various levels of education. The schools represented were • Dansol High School, Ikeja; • Edgefield College, Lekki; • Fruitful Ville College International, Ikorodu; • Halifield Schools, Maryland • Holy Child College, Ikoyi. The students in attendance, aged 12 to 15, were given a firsthand opportunity to immerse themselves in the complexities that surround the Internet of Things (IoT) and how this will affect their lives in the near future. As part of the programme, students were taught how to build, program

and control various kinds of robots which are used to perform numerous functions in today’s world. This, to demonstrate the essential nature of technology in everyday life, from manufacturing to transportation and even securing lives and property. Solomon Ogufere, Commercial Director for Vodacom Business Nigeria said: “As a business, we are committed to equipping the next generation in Nigeria with the requisite ICT skills to prepare them for the inevitability that is the fourth industrial revolution. We believe that it is never too early or too late to begin this immersive process in students, thereby preparing them

for the post – digital age which will demand technical knowledge and skills.” Vodacom Business Nigeria constantly seeks out opportunities to enhance the lives of the next generation through engagement in initiatives with primary focus on educational programs, capacity building sessions, training workshops, industrial tours and more. Earlier in the year Vodacom had organized an ICT Skills development training day for thirty-six young students from the S.S. Peter & Paul Nursery and Primary School, a school run by an independent non-profit organisation that serves the underprivileged communities in Lagos State.

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Mtn takes healthcare to Nigerian markets Short and

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Stories by Onuwa Lucky Joseph

lot of traders and market people have this overwhelming belief that they cannot afford the time for hospitals; at least that’s what they claim to believe until condition gets critical. Many otherwise easily reversible conditions have by such delays become complicated. Knowing this lethargy on the part of traders and in order to ensure that their health is not compromised unduly, MTN Foundation took the hospital to the market. The medical outreach was all about providing free healthcare, no fear of fees and the like. Were the market folks happy? You bet. The state governor, Akinwunmi Ambode was represented by the Lagos State Director of Disease Control, Eniola Erinosho. He spent good time imparting information about lifestyle and behaviour change to the attendees in order for them to enjoy optimal health. “Behavioral modifications he requested of them included “avoidance of smoking completely, including limiting exposure to smoke as passive smoking is very dangerous”. He also urged them to reduce alcohol intake, eat balanced diets, drink at least three litres of water a day, reduce excessive sugar intake, go for foods and fruits that are in season and to also to avoid risky sexual exposure.

The MTN Team comprised of Gbenga Oyebode, Director; Dennis Okoro, Director; Nwaeke Peter, Health Portfolio Manager for MTN Foundation; Taiwo Oshinusi, Director; all acknowledged the time constraint and financial difficulties the market people have to endure. They however emphasized the importance of proper healthcare. Reason why “we brought doctors, nurses, pharmacists to the

market so they can check their vital signs, basic health diagnoses and provide medication for free. They also stated their goal as being to “provide medical assessment and treatment for malaria, hypertension, diabetes, aches and pains”. The traders were happy to avail themselves the free healthcare but they weren’t alone. Customers made a beeline for the healthcare stands to,

as they say, kill two birds, maybe more, with one stone. The scheme is scheduled to hold at Mile 12 Market, Ketu; Ayangburen Market, Ikorodu; and Folasade Tinubu Ojo, Gorodom on the Island. Interestingly, according to Oshinusi, “we have opened up clinics in the market as follow up centres to monitor them until we see improvements. Excellent scheme, we say.

he Advertisers Association of Nigeria (ADVAN) celebrated its 25th anniversary recently. And to commemorate the event, its executive laptops to Lanre Awolokun High School, Ikeja. Inlaks Energy organised a training session on solar electricity generation for students of Vivian Fowler Memorial College The Nigeria Stock Exchange (NSE) presented a cheque and food items donated by employees of the NSE to Bethesda Home for the Blind as part of NSE Employee Give-Back Initiative aimed at extending a hand of care to the less privileged. Mutual Benefits Assurance Plc held its Mutual Benefits 2018 Christmas Carol in Lagos with its Mutual Choir doing the renditions

Subaru of America Foundation Awards Girls Inc. of Greater Philadelphia & Southern New Jersey a $95,000 Grant

irls Inc. of Greater Philadelphia & Southern New Jersey announced today that it has been awarded with a $95,000 grant from the Subaru of America (SOA) Foundation to be paid over three years to support Girls Inc.’s work in the Camden Promise Neighborhood. Girls Inc., a non-profit organization that inspires girls ages 6 to 18 to be strong, smart, and bold, launched their pilot program in Camden with a one year, $20,000 grant from the automaker’s Foundation in 2017. The response to the Girls Inc. programs from school partners, girls and their families was immediate, positive and exceeded expectations. As a result, Subaru has made this very generous grant to serve even more girls in additional Camden schools. It is undeniable that girls in the U.S. are uniquely affected by poverty, sexual exploitation, drug addiction, and teen pregnancy. Nationally, one in six girls will not finish high school, 78 percent of high school girls report being unhappy with their bodies, and one in five experience childhood sexual assault. In communities with increased poverty rates, these risks are even greater. Headquartered in Camden, NJ, Subaru of America, Inc. wanted to help create a different narrative for their community. With a population of 74,420 individuals, only 56.2% of Camden residents are employed. The median household income is $26,214, resulting in 38.4% of Camden falling below the poverty line. Camden, NJ has one of the highest poverty rates in the country at 38.4% of its population of 76,005 with a

median household income of $26,214. While high school graduation rates in Camden have been improving, only 64% are graduating. Likewise, while New Jersey ranked 5th in the nation in 2015 for teen birth rates (14.8 births for every 1,000 girls), the rate for 2014 data for Camden City showed an adolescent birth rate of 35.1 per 1,000. Subaru of America decided to partner with Girls Inc. of Greater Philadelphia and Southern New Jersey to assist the organization in addressing the unique needs of girls through outreach programming, advocacy, and education, including the development of mentoring relationships. The non-profit’s research-based and developmentally appropriate programs empower girls to think critically and use problem solving skills to produce the best outcomes for themselves and their community. Helping girls develop the tools they need to make healthy decisions about their bodies, receive academic enrichment and life skills instruction including exposure to career opportunities is critical to ensuring that they develop into self-sufficient women. Girls Inc.’s holistic approach towards whole girl development recognizes that none of these components in isolation will result in girls dreaming big and achieving their dreams. Subaru also recognized the lack of female representation in the automotive industry and wanted to help open opportunities and show pathways to careers that girls might not have considered. Together, Girls Inc. and Subaru of America set out to empower young girls

in Camden. With the support of Subaru, Girls Inc. launched their programs in Camden during the 2017 – 2018 school year. The partnership focused on two middle schools and one primary school in the Camden Promise Neighborhood. By partnering with Camden schools, the mission was to provide not only tangible, but also sustainable learning opportunities for local girls. Subaru sought to address the unique challenges that Camden faces and arm girls with the skills to enact change in their communities. They accomplished this by partnering with Girls Inc. to deliver school-based programs focused

on healthy decision making, media literacy, leadership development, community action, and STEM enrichment opportunities. Results: At the end of the pilot school year, 111 girls cumulatively participated in 1,386 hours of Girls Inc. school-based programs. These amazing young girls experienced fun, engaging project-based STEM programs, college tours and through the Girls Inc. experience now have the tools to make healthy decisions about their bodies and to engage positively with their communities. Nearly all the girls are continuing their involvement with Girls Inc. this school year.

As more girls and their families look toward Girls Inc. as a resource, partnerships like the one with Subaru of America, Inc. have become critical to meeting the demand. With this new three-year grant, the Subaru and Girls Inc. partnership will expand to serve 600 girls in the Camden Promise Zone. Through a career exploration partnership with Subaru, girls will also have an opportunity to explore careers in the automotive industry. (culled from 3BL Media) (Enquiries to csrmomentum@gmail. com /08023314782)

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NEWS YOU CAN TRUST I THURSDAY 17 JANUARY 2019

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

ull-Scale war has broken out in the South East as Nigeria prepares for General Elections 2019. It is not a physical battle, mind you, at least not yet. On the surface, the war is about political choice. Deeper analyses, however, reveals a more nuanced struggle around issues of direction and the soul of a people. Election 2019 would serve as a proxy for the many issues in contention. The issues are political, economic and socio-cultural. They have developed as stirrings and taken shape as disaffection with growing unresponsiveness of government. Deepening poverty and a landscape denuded of hope and jobs has caused questioning and manifests

The Igbo wars on politics and culture in several directions. While some of the issues are as old as Nigeria’s First Republic and Biafra, they are all coming to the fore and would echo loudly in the coming election. The most prominent and renown of the political battlefields is the matter of the Independent Peoples of Biafra (IPOB). In the last four years, IPOB has grown in stature and appeal with the Igbo, with a concentration on the youth demographic. It appeals to the primal urges, fears,and aspirations of the youth. IPOB has led advocacy for the restructuring of the federation and independence of the region. The annals of Nigeria would record the impact of IPOB in setting the agenda of political discourse in the Buhari years. As part of its separation agenda, IPOB pushed for non-involvement in Nigerian civic affairs. It asked members to boycott Elections 2019. Many of its enlightened followers argued otherwise and instigated a serious internal debate. IPOB suddenly has now shifted grounds in favour of electoral participation and directed its anger against two of the governors of the South East. It has asked its members to ensure that Okezie Victor Ikpeazu of Abia state and Dave Umahi of Ebonyi state do not return for a second-term as governors. IPOB would seem not to reckon with the possibil-

ity that a large portion of its members may not have the visa for participation in Elections 2019 in obedience to its earlier boycott call. INEC’s electoral register records the South East with the least voters. Is there an IPOB effect? It is too late for those disenfranchised to register. The governors threatened have in return accepted the IPOB challenge, asking it to meet with them at the polls. Then there is the matter of youth versus the elders in the Igbo politicosphere. The youth accused the elders of working against the Igbo interest, of sabotage and of selling out to the enemies of the Igbo nation. They point to Egwueke (python dance) 1 and 2 and claim the governors and elders of Igboland instigated it for a willing administration to seize for its purposes. The political and the cul-

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The youth accused the elders of working against the Igbo interest, of sabotage and of selling out to the enemies of the Igbo nation

tural are now enmeshed. Should the youth of the land continue to respect and obey elders who they feel are unresponsive and unrepresentative? Should they ditch the culture and its regard for seniority given the realities as they see it? In recent times, IPOB has taken swipes at grey hairs in Igboland in language that defied the culture. Note that elders here are a broad sweep. It includes the governors and elected officials across the South East, the “apex Igbo socio-cultural organization, Ohaneze Ndigbo” as well as the traditional institution. For how long will this state of mutual disregard continue and how can the people progress in a state of mutual antagonism and deep distrust? Another charge against the governors is fighting against the Igbo consensus of support for the Atiku/Obi ticket. Fingers point to Anambra state governor Willie Obiano and his Ebonyi state counterpart, Dave Umahi, as leading a subterranean and now open push for President Muhammadu Buhari in Igboland mainly for their personal purposes. Umahi because of his agenda to be the president of Igbo extraction based on a promissory note and Obiano to retaliate against his mentor, godfather and benefactor. These instances also speak to culture. Then there is the special

case of Ebonyi state. Ebonyi state was the only one where citizens turned their back on IPOB calls to stay home. They had the backing of their governor, David Umahi. And history. Ebonyi state is the place that looks the other way in matters concerning the South East. They cite a long history of scorn and disregard by other parts of the region. The outburst by the Ebonyi state government over the renaming of an Abakaliki street in Awka spoke to the depth of feelings in Ebonyiland. It was passionate, angry and brimming with indignation. As with Ebonyi, so too the Igbos across the border in the South-South. Many feel abandoned and relegated. Their Igboness often comes with a qualifier that is needless and exclusionary. It rankles with them. Ebonyi would also provide a test case for the influence of godfathers versus the young Turks determined to write new chapters, nay even books, in political representation not only in Igboland but across Nigeria. We will share in this column an exposition on the significance of the quest for a seat in the House of Representatives by Ebonyi House of Assembly member, the eponymous Nwanyi Afikpo, Maria Ude Nwachi. She is swimming against the tide in her quest. It would be an interesting

battle. Will thunder strike twice in the case of Maria Ude Nwachi who got into the state Assembly on what is a modified independent candidature? She bucked the big parties and rode on her own steam. These matters come against the backdrop of a clamour for regeneration in all spheres in the region. From the Arts through STEM and economics, there is recognition anew of the possibilities of the land and, more importantly, a call for action. Patrick Okigbo, Ndidi Nwuneli and Co play strongly in culture with the Centre for Memories in Enugu and Nkata UmuIbe that serves as a true village square in the best traditions of Ndigbo. The call for Akulueuno (return your wealth to the homeland) is resonant. Many of the well-heeled entrepreneurs of the region identify with it. However, Akulueno should go beyond soundbites to policies and plans that would make it happen. Akulueuno is necessary to tackle the loss of jobs and the growing army of unemployed young people in the region. They need positive engagement so as not to serve as fodder and foot soldiers for negative causes. These are interesting times in the South East. For the political, note that a week is a very long time. The permutations are unfolding daily.

ofthispre-electionseason,Iwonder what can be more interesting than the fact that Bayelsa state has had 9 police commissioners in the past 3 months! I mean NINE! In effect, a police officer would report, hold a valedictory meeting with his predecessor and while he is studying thehandovernotes,hewouldberedeployed. The 9th CP is Mr Aminu Saleh and the governor believed that this turnover was because his state is so comfortable and serene that people are scrambling to work there buthopedthathe‘won’thave cause in the next couple of days, weeksormonthstoreceiveanother Commissioner of Police’ Now, in what has been described as unprecedented and premeditated, the federal government, which undertook ill-advised midnight operation against some judges earlier on and which had unsuccessfully arraigned the head of the Nigerian legislature, has just arraigned the head of the Nigerian Judiciary, Justice Onoghen before theCodeofConductTribunal,over something that was done or not donebetween2005and2016,andis among other things asking the CJN to vacate office. The learned gentlemenhavebeenthrowingbigwords and phrases about since then but onehasreferredtoitasprosecutorial misadventure while another has calleditidiotic!ButIaminterestedin otherwonderfulaspectsofthiscase. The petition was written on 7/1/19 by Dennis Aghanya, Buhari’s aide between2009and2011,thepioneer national publicity secretary of the Congress for Progressive Change and also a founding member of The Buhari Organisation. The petition got to the CCB on 9/1/19, was served on the CJN on 11/1/19

and he was arraigned on 14/1/19! Excellent;Ineverknewwestillhave such effective and efficient institutions in Nigeria; I will recommend them for national honours! And at the head of the star-studded cast of this drama of the absurd is Danladi Umar,ChairmanofCCT,whoisstill on his duty post despite the case of corruption(CR:109/18)hangingon his neck, and who last year, struck out a similar case against Justice Ngwuta because “ any allegation of official misconduct will first have to be referred to the National Judicial Counciltotheexclusionofanyother body, court or Tribunal’’ The charge was signed by two senior lawyers at the CCB, Musa Ibrahim Usman and Fatima Danjuma Ali and announced by the spokesperson of the Code of Conduct Tribunal, Ibrahim Alhassan andprosecutedbyAliyuUmar,SAN. Ididnotsmellanyrat!Andontopof that,apresidencysourcesworethat the President was shocked at the development because he had no knowledge of the CCT-CJN show ofshame.Thesourceattributeditto 5thcolmunists,whoalsoorganized the invasion of the NASS by DSS If these are not evidence of interesting times, then tell me what is! Other matters 159 Nigerian police officers assigned to African Union Mission in Somalia have just been honoured with certificates and medals for exemplary performance. The colourfulceremonywaspresidedover byMajorGeneralFizaDludle,head of mission (Guardian, 13/1/19,p5) So, what is wrong with the Nigerian Police Force in Nigeria? Is it in us or in our stars? Any force messing up the performance of Nigerian Police Force in Nigeria…Holy Ghost Fire!

These interesting times…

IK MUO Ik Muo, PhD. Department of Business administration, OOU, Ago_Iwoye 08033026625, muoigbo@yahoo. com, muo.ik@oouagoiweye. edu.ng

ecently, a friend from the Kumasi Local Government of Nigeria asked me about the situation of things in the mainstream Nigeria. I did not want to de-market my beloved country and as such I simply told him that we live in interesting times. When he prodded further, I told him that the times are just interesting, and nothing more than that. I know you are wondering why I referred to Kumasi (which is in Ghana) as a LGA in Nigeria. Well, the Central Bank of Nigeria has declared that Ghana is a part of Nigeria because while it approves PTA or BTA to anybody travelling overseas, it excludes people travelling to Ghana and the likes. I hope nobody will drag me to Code of Conduct Tribunal or lay an 8-day siegeonmyhumbleabodebecause ofthis.Butsincerelyspeaking,these are interesting times in Nigeria. It is an era when we employ experts in criminalhistorytoexhumegenuine or fake infractions by significant othersanduseitasafoundationfor trial by media so as to destabilize the person and up the ante in the

WAR against corruption. Some of us are spared because we don’t have enough ‘weight’ to rattle the 4+4 movement. There are also otherpartsoftheseinterestingtimes including reviving cases that have been concluded, or remembering ones that have been conveniently forgottenorplayingping-pongwith police deployments I don’t know where Deji Adeyanju, a certified activist and convener of Concerned Nigerians, is now but the last I heard of him was on 21/12/18 when a judge in Kano held that he lacked jurisdiction to handlethematterandthenordered that he should be in detention till February 2019 for appropriate arraignment. That was when his lawyers were preparing for his bail application and that was probably because Adeyanju was too dangeroustoberoamingthestreetsofasafe Nigeria. But the case for which the policearrestedandchargedhimon 13/12/18 was one on which he had been discharged and acquitted by theKanoStateHighCourtfollowing a lengthy trial that lasted between 2005and2009.MeanwhileanAbuja High court had also ordered his immediate release. Both the order for his detention and release where made the same day but my interest is that the matter in question was settled 10 years ago! Doyin Okupe, the medical doctor who threw his stethoscope into the South-Western version of the Sambisa Forest (so that it can’t be traced) and embraced politics Nigeriana is currently the media adviser to the Director General of Atiku Presidential Campaign Organization. Okupe received some strangevisitorson8/12/18andpaid themareturnvisiton10/12/18 were

he was served 59 count charges and detained, all in connection with an offence for which he was investigated and cleared by EFCC in 2016 and this is in connection with his role as a media adviser to President Jonathan. We all know whenJonathanleftOffice!Bytheway why do these prosecutors or persecutors file 100 count charges; why notmakeitoneortwoconcreteand winnable cases? Lets I forget, when the over-officious DSS harassed Dr Okupe at the airport sometimes ago, it was the EFCC that wrote a testimonial to DSS , assuring that there was nothing incriminating againsthimandhehasbeencleared of all allegations. He was officially arraigned on 14/1/19 Dino Melaye, different things to different people, requires little introduction. He has been in the headlinesmorebecauseofwhatthe police authorities had done with or to him, and probably for dropping some chart-busting singles than his senatorial responsibilities at Abuja. He is still a serving senator, who holds a gold medal for surviving an orchestrated recall attempt, is campaigning for another term in office andisakeyadvocateoftheAtikuObi politico-economic herbal cleanser. Thepolicehasjustsucceededinrattling him out of his hole after laying an unprecedented 8 day stage on his house. In the aftermath, he has moved from the police detention to DSS hospital to here and to there. The problem? He was alleged to have shot a police man in July 2018. Of course, he first raised an alarm thatthepoliceshotathimbutthatis not the issue here. Where have our policemen been since 6 months ago when it happened and why are they behaving as if arresting Dino

is a national emergency and a key hindrance to 2019 elections? Inanothertwist,theGovernorof KanoState,whosecorruptionvideo has been rested through legal gymnastics has just dragged his former boss and benefactor, Senator Musa Kwankwaso of the kwakwansiya fame, to EFCC for alleged corruption. In addition to the pot calling kettleblack,mymainconcerninthis case is that Kwankwanso left office almost 4 years ago. So why is Ganduje just finding out that he stole governmentmoneyandwherewas he as the number two man when thestealingwasgoingon? WellGov El-Rufai,whomIneverknewwasan accidentallawyerhasjustreminded us on Channels TV(14/1/19) that there is no statute of limitations on crimes and as such, we may have more of such cases in Kaduna or elsewhere. Before going into the star show

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In another twist, the Governor of Kano State, whose corruption video has been rested through legal gymnastics has just dragged his former boss and benefactor, Senator Musa Kwankwaso of the kwakwansiya fame, to EFCC for alleged corruption

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