BusinessDay 17 Jul 2020

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news you can trust I ** friDAY 17 july 2020 I vol. 19, no 608

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CBN first-quarter FX sales highest since 2014 ... figure confirms exodus of foreign investors, COVID-19 – analysts

Hope Moses-Ashike & Segun Adams

C

entral Bank of Nigeria (CBN) in the first three months of 2020 sold the highest foreign currencies in six years.

Fo re i g n c u r re n c y s a l e s reached $11 billion in the first quarter (Q1), 64 percent more than the apex bank sold in the same period last year. This is also the biggest sale by value since $14.22 billion was sold in the first three months of 2014.

“The figure affirmed the exodus of foreign investors in the first quarter of 2020. The bulk of the dollar demand would have come from foreign portfolio investors who were exiting emerging markets in Q1:2020 due to Continues on page 30

Inside

These five provisions push up Nigeria’s 2020 budget by N301bn P. 2 Improved gold mining operation to generate 250,000 jobs, $500m annually in royalties P. 4 – Buhari

President Muhammadu Buhari (m); Ibrahim Gambari (l), chief of staff to the President and chairman, Presidential Artisanal Gold Mining Development Initiative, watch as Godwin Emefiele (r), CBN governor, displays the Gold Bar, during the virtual launch of Gold Purchase Programme at the State House, Abuja, yesterday.

How improper disposal limits over $250m waste recycling industry growth I CHUKA UROKO, JOSHUA BASSEY, REMI FEYISIPO, GODFREY OFURUM, ADEOLA AJAKAIYE & GODSGIFT ONYEDINEFU

mproper collection and disposal method as well as other challenges are limiting the growth of waste-towealth initiative and recycling industry said to be worth over $250 million, BusinessDay

So many challenges amid opportunities

survey reveals.

Nigeria is said to be one of the highest producer of solid waste, but its management has always been a persisting problem. Available statistics show that the country generates more than 32 million tons of solid waste annu-

ally out of which only about 30 percent is collected and properly disposed of.

From Kano to Aba; Abuja to Lagos and to Ibadan, the story is the same of how mounting heaps of solid wastes dumped indiscriminately at various cor-

ners and improper collection/ disposal pose health and environmental challenges in these cities.

The challenges, according to experts, have persisted because

Continues on page 30

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Friday 17 July 2020

BUSINESS DAY

news Motor insurance loses N56bn annually as poor enforcement holds back industry growth Modestus Anaesoronye

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ith nearly 12 million vehicles plying Nigerian roads, the insurance industry could generate an estimated N60 billion premium annually from taking a minimum motor third party cover for just N5,000.

But with only 2.7 million vehicles uploaded (insured) so far in the Nigerian Insurance IndustryDataBase,theindustry isgeneratingpaltryN13.5billion from this compulsory policy.

This means that about N46.5 billion is lost to quakes and fake operators who hide under the cover of local government and state licensing offices to issue fake certificates to unsuspecting public in the name of insurance.

This has been a major loss of premium and big concern for theindustryoperatorsandregulators, but the lack of enforcement and support of security agencieshavemadeitextremely difficult to arrest the situation.

In the past, through the support of Police and Road Safety Task Force organised by the National Insurance Commission (NAICOM), some fake operators were arrested during series of compliance enforcement campaigns in Abuja and Lagos, but due to laxity in the

country’s security system no one was prosecuted.

So, this has continued unabated as these fakes continue to operate in their locations unchallenged and with protection of their state and local government landlords.

Unfortunately, the unsuspecting publics who patronise them by buying insurance certificates from them are neither compensated in the event of loss or get any form of value, except to get police and road safety clearance at check points.

Motor third party cover is a compulsory insurance for all vehicles plying Nigerian roads, and is sold for N5,000 for cars and N7,000 for commercial vehicles and has a liability cover of up to N1 million for third party damages, and no limit to life in the event of death of third party.

This means that in the event of an accident, the policy holder has a third party property damage limit up to N1 million and no limit to life in case of death or permanent disability.

According to the Nigeria Bureau of Statistics (NBS), estimated vehicle population in Nigeria as at fourth quarter 2018 was 11,826,033, with total population estimate of the country puts at 198,000,000, making Nigeria vehicle per population ratio 0.06 percent.

These five provisions push up Nigeria’s 2020 budget by N301bn ENDURANCE OKAFOR

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resident Muhammadu Buhari on July 10, 2020, signed Nigeria’s 2020 record budget of N10.81 trillion to boost Africa’s largest economy faced with double problem of COVID-19 and collapsing global oil price.

While the government had planned to earlier cut the 2020 budget to cushion the impact of low oil price, the new budget approved by the Senate, passed by the lower house and signed by the president is N301 billion higher than the initial appropriation revision.

“You will find that we have a variance of N301 billion, which is the difference between the aggregate expenditure in the previous 2020 budget of N10.5 trillion, which is now up by

N301 billion to N10.81 trillion,” minister of finance, Zainab Ahmed, said during a recent virtual consultative public forum where she presented the draft 2021-2023 Medium Term Expenditure Framework/Fiscal Strategy Paper (MTEF/FSP).

According to the Ministry of Finance, the impact of lower oil price and the crude benchmark for2020budgetmeantthatthere was about 65 percent decline in projected net 2020 government revenues from the oil and gas sector, with adverse consequences for foreign exchange inflows into the economy.

In line with current realities, the recently signed 2020 budget saw a revised benchmark by $29 from an initial average crude price of $57 per barrel to $28 per barrel.

Africa’s top oil exporter who relies on crude sales for around

90 percent of foreign exchange earnings and more than half of government revenue is projected by analysts to post a contraction of about 5 percent in 2020, amid hit from lower oil price and the impact of COVID-19.

But, through its planned interventions, the Nigerian government is optimistic that it can leveragetherevised2020budget to pull Africa’s largest economy fromtheexpectedshock.Meanwhile, the items that led to the N301billionincreaseinthe2020 revised budget are as follows: N185.9bn federation intervention Due to the impact of COVID-19, the revised and signed 2020 budget made provision for N185.9 billion as federation intervention fund.

This was announced by the Finance Minister during her presentation of the draft

2021-2023 MTEF/FSP few hours after President Muhammadu Buhari signed the revised budget into law.

While the World Bank said Nigeria’s planned fiscal and monetarypolicystimulustargeted at addressing the economic challenges of the COVID-19 pandemic are modest compared to its peer countries, the N185.9 billion federation intervention fund accounts for 61.76 percent of the total N301 billion added to the 2020 budget.

As a share of its 2018 GDP, Nigeria’sCOVID-19stimuluseither as aid, grants, guarantees, CBN’s monetaryliquidityinjection,and interest rate are less than that of Brazil, Angola, Mexico, Russia, South Africa, Ethiopia, Ghana, Kenya,Senegal,andUganda,the Washington-basedlendersaidin its recent Nigeria Development Update (NDU) report.

COVID-19 leaves valuators confused BALA AUGIE

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he unprecedented economic uncertainties caused by the coronavirus pandemic (Covid-19) will leave valuators scratching their heads as they will be forced to readjust their future earnings forecast and discount rate used in valuing firms.

This is because during an economic downturn sales ebb and profit slumps, leading to a reduction in cash flow; and a reduction in cash flow undermines the value of a firm.

Cash flow is the net amount of cash and cash-equivalents being transferred into and out of a business. At the most fundamental level, a company’s ability to create value for shareholders is determined by its ability to generate positive cash flows, or more specifically, maximise long-term free cash flow (FCF).

Wale Olusi, head of research at United Capital Limited, says COVID-19 is a risk to the economy, and the cost of equity will rise and valuation will fall.

This crisis is coming with yields rising, and that it is an anomaly that will force valuators to use inflation rate instead of the conventional risk free rate of returns in the calculation of cost of equity, Olusi notes.

Abiola Gbemisola, analyst at Chapel Hill Denham Lim-

ited, agrees with Olusi as he is of the view that the current crisis will impact on banks’ valuation, because their loan assets will deteriorate on the back of regulator pressures that are eating up yields.

The impact of the COVID-19 pandemic and the control measures put in place does not favour loan disbursement, therefore, loan growth is expected to be muted.

The spread in coronavirus pandemic across the world has triggered unanticipated global financial market volatility, and Nigeria is not spared the pang of the crisis.

The International Monetary Fund (IMF), Washingtonbased institution, estimated Nigeria’s GDP would contract by 5.4 percent and not the 3.4 percent it projected in April 2020; a double whammy for a country that exited its first recession in 25 years in 2017.

According to the Q1-2020 GDP report published by the National Bureau of Statistics (NBS) on May 24, 2020, Nigeria’s economic growth slowed to a nine-quarter low of 1.87 percent year-on-year (yoy) from 2.55 percent (yoy) in Q4-2019 and 2.12 percent yoy in Q2-2019.

The COVID-19 induced crisis also stoked sell-off, albeit investors had already dumped shares over poor corporate earnings and weak and lack of policy direction of the part of government. www.businessday.ng

1st row: L-R: Tolulope Agiri, chief human resources officer, Interswitch Group; Esther Akinnukawe, chief human resources officer, MTN, and Franca Ovadje, founder/executive director, Danne Institute for Research; 2nd row: L-R: Gbemiga Owolabi, organisation/human resource director, Lafarge Africa, and Frank Aigbogun, publisher, BusinessDay, at the Future of Work Webinar organised by BusinessDay and Danne Institute in Lagos, yesterday.

Telcos wary of cost as Lagos unified fibre project gets underway FRANK ELEANYA

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he Lagos State unified fibre project is underway and holds the potential of deepening cable infrastructure and protecting the assets of operators in the state. Nevertheless, telecoms players are wary of the project as the state is yet to disclose most aspects regarding the operation of the scheme and the cost implications.

The multi-million-dollar unified fibre project involves the deployment of unified fibre duct infrastructure for carrying telecommunications cables and other wired infrastructure to support operators of telecommunications and other relevant utilities, as well as provide infrastructure and connectivity requirements for Lagos State.

The state’s agreement with the company it appointed to execute the project, Western Telecommunication and Engineering Metro Limited, will

see it run the project for an initial term of 25 years, which could be extended by the parties, in writing, prior to its expiration or by effluxion of time, on mutually agreed terms and conditions. Western Telecommunications and Engineering Services Metro would also pay to the state coffers a fee of 10 percent of the revenues generated from the lease of the ducts to operators.

The Lagos State House of Assembly gave its stamp of approval to the project on Thursday, May 14, 2020.

At a meeting operators say took place earlier in July with the contractors of the project, the state attempted to bring some clarity to the purpose of the project and the benefits for telecoms operators.

MainOne confirmed to BusinessDay that there was contact with the Lagos State government under the auspices of the Association of Telecommunication Companies of Nigeria (ATCON)

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and contact with the office of Lagos State Infrastructure Maintenance and Regulatory Authority (LASIMRA), but details regarding the operationalisation and commercialisation of the project were yet to be communicated.

Also, operators are still waiting for formal engagement with the PPP, which the state authorities said would be clarified very soon.

Adejoke Owoso of FiberOne Broadband told BusinessDay that from the explanation the contractors gave during one of the meetings, the existing fibre infrastructure already laid would remain. Hence, there would be no need for relocation.

“The only thing is that we might not be able to build new ones,” she said, as “We have already paid for the Right of Way for some projects. They just increased the Right of Way (RoW) per metre, this year.” Unlike other providers who lay fibre underground, @Businessdayng

FibreOne passes its cables above ground.

The no-relocation order is, according to MainOne, essential to avoid disruption of services to consumers and businesses in Lagos since deploying new infrastructure takes time.

The state however suspended the building of new infrastructure that requires RoW. MainOne has invested over $100 million in fibre and supporting electronics infrastructure in Lagos State.

In addition, the company’s submarine cable lands in Lagos as the gateway to Nigeria, hence onward connectivity to distribute the capacity it brings into Nigeria from Lagos around the state and to the hinterland is critical for the survival of its business.

“With regard to how things will work when the PPP infrastructure is ready, no clear plan has been communicated yet. We are certain that in due time all the details will be communicated,” MainOne said.

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Improved gold mining operation to generate 250,000 jobs, $500m annually in royalties – Buhari HARRISON EDEH

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he Presidential Artisanal Gold Mining Development Initiative (PAGMI) has announced the achievement of a significant milestone in President Muhammadu Buhari’s commitment to diversifying the economy and the nation’s foreign reserves through the purchase of local gold production by the Central Bank of Nigeria (CBN) under the Presidential Artisanal Gold Mining Development Initiative.

President Buhari approved PAGMI in 2019 to foster the integration of artisanal gold mining activities in the country’s legal, economic, and institutional framework.

President Buhari Thursday in Abuja said improved gold mining operations in the country would generate about 250,000 jobs and over $500 million annually in royalties and taxes to the Federal Government.

President Buhari said this at the official presentation of locally mined gold bars by the Presidential Artisanal Gold Mining Development

Initiative (PAGMDI), where he also reaffirmed his administration’s commitment to establish gold refineries in Nigeria.

The president said this initiative would support efforts at creating jobs for Nigerians, diversifying the revenue base, and improving foreign exchange reserves.

Reiterating the determination of the government to combat illegal mining activities, the president expressed concern that Nigeria lost close to $3 billion from 2012 – 2018 due to illegal smuggling of gold. ‘‘With the implementation of the PAGDMI scheme, which will result in the set-up of accredited gold buying centres across key mining areas, artisanal miners and SMEs engaged in mining will be able to capture the value of their work. ‘‘These operations will help in diversifying our revenue base. The sale of gold by artisanal miners and SMEs at accredited centers will help the government in realising royalties and taxes from the sale of these assets. ‘‘These developments will also help in improving our

foreign reserves by enabling the Central Bank of Nigeria to increase the amount of gold in its reserves. ‘‘These gold assets which will be purchased in Naira, will not only help to bolster our international reserves, it will also provide a hedge against inflation and other economic volatilities associated with foreign currencies that are held in our reserves,’’ the president said.

He noted that in addition to the potential revenue gains that would occur from mining operations, efforts were being made to enable the setting up of gold refineries in Nigeria.

He expressed optimism that these measures would lead to the creation of additional job opportunities across the gold value chain and also help the nation capture the additional value created from the gold refining process.

On environmental degradation, the president pledged that government would pay close attention to safety and environmental measures to protect workers and the environment.

The Nigerian leader also used the occasion to com-

mend all stakeholders involved in the PAGMI for their painstaking efforts in developing a programme aimed at improved sourcing and refining of high-quality gold bars, derived from minefields in Nigeria.

The President recalled that the PAGMI, which was launched in 2019, was well timed, considering the impact of COVID-19 on the global economy and indeed on the Nigerian economy.

He said the impact of COVID-19 and the containment measures designed to slow the spread of the virus, had led to a slowdown in global growth, which is projected to decline into negative territory for the first time since the Great Depression. ‘‘It has also led to a 40 percent drop in crude oil prices.

In Nigeria, the drop in crude oil prices has had a significant impact on government revenue, as well as on our foreign exchange earnings. ‘‘In responding to this challenge, it is therefore paramount that we strengthen our efforts at implementing policies and programs that will enable greater diversification of the Nigerian economy”.

In surprise rebound, China economy grows 3.2% in Q2 MICHAEL ANI

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espite being hit by the severe impact of the novel coronavirus, China economy bounced back 3.2 percent in the second quarter of 2020, beating economists forecast which predicted a modest recovery for the world’s second largest economy after it suffered a record decline in the first quarter of year.

China, where the first case of the pandemic was reported, was the earliest country to suffer health and economic impact associated with the virus that caused a steep 6.8 percent slump in its first quarter GDP growth, the first such contraction since at least 1992 when quarterly gross domestic product (GDP) records began.

However, while most countries in the world are still reeling from the impact of the pandemic, China’s economy has swiftly rebounded as business activities gradually return to normal and factories resume operations.

This was due largely to a recovery in production and spending amid the coronavirusinduced headwind.

TheChinesegovernmenthad introduced measures to boost the economy, including fiscal spending and cuts in lending rates and banks’ reserve require-

Insurance intermediaries embrace technology as COVID-19 heightens competition Modestus Anaesoronye

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nsurance intermediaries including brokers and agents that hitherto operated office only in their hand briefcase have been forced to operate at least a near formal office since the dawn of Covid-19 pandemic.

These intermediaries in other to remain in business are beginning to adopt technology and digital communication infrastructures as physical marketing and contacts are almost fizzling out with the Covid-19 pandemic still here.

At the down of Covid-19 in early March 2020, when lockdowns were imposed by government to contain the spread of the pandemic, most businesses resorted to technology and working from remote locations.

The realities of the Covid-19 lockdown have meant that the world has been forced to do all their business virtually. Faceto-face meetings have been replaced by Zoom calls, travel has been banned, and processes have had to become paperless.

Some have said that, in just a few weeks, this global crisis has catapulted us a good five years ahead in the way that we harness technology. Necessity is indeed the mother of invention.

This period therefore became difficult for insurance brokers and agents who have been used to moving about for marketing and correspondences with their underwriting partners, so many now have decided to adopt technologies to enable them remain in business.

Besides, clients who could not allow visitors in their offices so preferred to deal with brokers who have established offices and could technologically serve them.

Thishasincreasedcompletion in the market, with a lot of the brokers investing in infrastructure to remain relevant and competitive.

Gbenga Olayiwon, managing director/CEO, Prorisk Insurance Brokers Limited said the brokers generally are keying into technology to service their clients, stating that his firm has embraced technology years back since he became the CEO. According to him, his communication is online with both clients and underwriters, having acquired a software years that that enable then process and pay claims without physical contacts.

“For me, this is the way to go and for efficiency every business entity should embrace technology”.

Sean Hanlon, executive director, Sales and Distribution at BrightRock speaking to Risk Africa looks at how Covid-19 is changing service delivery at the broker’s table.

He noted that this sudden change has been a bit jarring for the insurance industry, as we are a sector that generally lags behind the times when it comes to technology. However, companies like BrightRock have risen to the challenge and have devised ways of ensuring you can still get cover for your clients, especially at a time when many people are feeling vulnerable and more acutely aware of their own mortality. www.businessday.ng

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ments — the amount of cash that lenders must hold in reserve as a way of lifting its economy and businesses from the precarious pandemic situation.

On a quarter-on-quarter basis, GDP rose 11.5 percent in April-June, compared with expectations for a 9.6 percent rise and a 10 percent decline in the previous quarter, according to a Reuters’ report which cited data from that state’s bureau of statistics.

The second quarter reading for Beinjin beats the median 1.1 percent forecast by economists surveyed by Nikkei and coincides with an AFP poll which projected the economy to claw its way back into growth territory in the second quarter of this year, after the coronavirus pandemic handed the world’s second largest economy its first contraction in decades.

The poll also forecast that China will be the only major economy to experience positive growth this year.

China’s trade in U.S. dollar terms returned to positive territory in June, from negative in May. Exports grew by 0.5 percent, thanks to demand for personal protective equipment and pharmaceutical products, while imports increased 2.7 percent, largely powered by electronic components and commodities.

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Spain looks for jobs boost from EU pandemic recovery package

Madrid fears a repeat of the surge in unemployment a decade ago, but hopes €80bn of recovery funds will help

Daniel Dombey

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n an upscale part of Madrid, the Daughters of Charity of Saint Vincent de Paul are briskly handing out parcels of rice, sardines and milk. Outside the food bank wait women in their early twenties, homeless men, youths from north Africa and Latin Americans of all ages. These and hundreds of thousands of others are the faces of hunger and joblessness in Spain.

Use of the country’s food banks has increased by some 40 per cent in recent months and risks matching the worst levels of the financial crisis if there is a second wave of Covid-19.

The pandemic has already left an indelible mark on the country. More than 40,000 excess deaths have been recorded since it was first hit by coronavirus. But a further legacy of the disease will be the destruction of jobs and livelihoods — and here too Spain risks becoming one of the worst-affected states in Europe.

“It just looks terrible,” says Mirella, who declined to give her surname. She resorted to the food bank after losing her job in a casino when the pandemic struck in March. “I don’t know when I

will be able to find work again; in the meantime I come here for food to help me get by.”

According to OECD forecasts, Spain is likely to suffer more from unemployment than any other member state, apart from South Africa. The organisation predicts Spanish joblessness is set to jump to almost 22 per cent by the end of the year — or 25.5 per cent if there is a second wave of infections. That could remain at one in five people up to the final quarter of 2021.

The country has never fully recovered from the financial crisis a decade ago, despite huge efforts since then to cut debts, increase exports and lower costs. On the eve of the pandemic, unemployment stood at 14 per cent, more than double the EU average. Youth unemployment was more than one in three.

Now worse is on the way, unless the EU can aid Spain — and much of the rest of the continent. Given its own deep problems with unemployment — the curse of the democratic era — the country is a crucial test case of whether the EU can avoid catastrophe.

“Europe was the answer to the great crisis of the second world war and Europe once again has to be the answer to the great crisis caused by the pandemic,” said Pedro Sánchez, Spain’s prime minister, as he urged EU leaders to agree a €750bn bloc-wide recovery package at a summit this weekend. Spain expects to be one of the main beneficiaries, with as much as €80bn in grants.

Mr Sánchez’s government argues that the combination of the recovery package, furlough schemes based on a

German model and “more Europeanstyle” social protections of vulnerable temporary workers should prevent unemployment spiralling. With the EU funds, Madrid even wants to make inroads into the deep structural causes of joblessness in the country, such as a two-tier labour market and a high rate of early school leavers.

The scale and decisiveness of the EU’s response to the crisis has surprised some critics. But many of the biggest changes — and biggest challenges — will fall on governments like Spain’s if a rise in unemployment is to be stopped in its tracks.

Mr Sánchez argues the EU has learnt the lessons of the financial crisis, when, according to many economists, Europe moved too fast in raising interest rates and cutting spending. The bloc emerged in much worse shape than the US, with higher unemployment, lower growth and a less robust banking sector.

The success or failure of a more expansionist response this time around could shape the continent’s destiny for years to come. Countries like Spain can ill-afford the long-term damage that would come from a second huge wave of joblessness within a decade.

So far this year Europe has held unemployment in check, largely through such measures as temporary leave schemes. After the bloc’s unemployment rate hit a 12-year low of 6.4 per cent in March, it then only inched up to 6.7 per cent in May. That is in sharp contrast with the US, where 12m people have lost their jobs, according to the US labour department, and the unemployment rate now stands at 11 per cent.

‘

Europe was the answer to the great crisis of the second world war and Europe once again has to be the answer to the great crisis caused by the pandemic

Yet economists, executives and officials admit that the true state of the European economy is difficult to assess.

The combined effect of the furlough schemes, interest rate holidays and other measures means it can sometimes be impossible to determine whether a company has a future, a loan is past due or a job is coming back.

“It is very difficult to know what is solvent, what is healthy and what is going to be viable,” says Rafael Doménech, head of economic analysis at BBVA, the bank.

No time for frugality Just beside La Castellana, the main north-south artery in Madrid, looms Nuevos Ministerios, a huge government building whose construction began under the ill-fated 1930s Republican governments that were later driven from power by General Francisco Franco’s nationalist forces. Inside the complex, one of the first communist ministers since those days holds court: Yolanda Díaz, who has the employment brief in Mr Sánchez’s Socialist-led government.

Ms Díaz, a labour lawyer, and a member of Podemos, the junior partner in the Socialist-led coalition, wields considerable power at a decisive time for Spain and Europe. She says it would be a “collective failure” if the country returned to the mass joblessness of 26 per cent that marked the worst moments of the financial crisis.

“Little by little the economy is returning to life,” she says, adding that, like Mr Sánchez, she believes that EU help and influence will make the difference this time.

FT

With or without articles?

A

rticles, in English grammar, are determining words which precede nouns or noun phrases in English expressions. Accordingly, the three articles in English language are: a, an and the. The first two (a and an) are called indefinite articles while the third (the) is called a definite article.

A staggering number of English expressions are permanently used with one form of article or the other.

By the same token, this treatise will shed light on expressions that attract one form of article or the other, and other lexical items that are wrongly used with articles, especially in the expressions of non-native speakers of English.

First things first, the indeterminate readership should be enlightened that the word “cold” attracts the indefinite article “a” when it denotes a common infection. As such, a person is said to have “caught a cold”; not “caught cold”. The foregoing exposé boils down to the fact that, cold, among an assemblage of other illnesses, is considered as a count noun. Similarly, when one is in a state of unconsciousness that is caused by brain damage, after an accident or an illness, s/he is said to be in “a coma”. Along the same lines, it behoves you to say that: “Titi has ‘a’ throbbing headache”, “Kunle has ‘a’ persistent cough”, and “Bolu has got ‘a’ backache”. Besides, as these people recuperate, don’t forget to wish them “a” speedy recovery (not speedy recovery).

On the side-lines of that, when people eat less food or only particular kinds of food because they want to get slimmer, or for medical reasons, they are said to be on “a diet”. By and large, the word “series” admits “a” as a precursor whenever it refers to events/developments of the same kind. Hence, “The police have undertaken ‘a series’ of investigations (not, … “undertaken series of...) into the murder of the prince”.

What is more, it is absolutely crucial to note

that “basis” is preceded by indefinite articles, especially with recourse to regularity or frequency, to wit: “Mr Dotun was appointed as the managing director on ‘an’ interim basis”, “Bimbo is schooled on ‘a’ part-time basis”, and “The members of staff receive their remuneration packages on ‘a’ monthly basis”. By the way, are you aware that, for the most part, education should admit indefinite articles when it borders on the teaching-learning process that hones a person’s skill set? Given this rationale, “Dr GAB received ‘an’ excellent education (not... “received excellent education” ...) at the University of Ibadan”.

Similarly, “Some people cannot favourably compete with their contemporaries because they had ‘a’ bad education”.

Evidently, the instances considered thus far prominently feature the indefinite articles a/an.

Considering this, it is gainful to emphasise that the act of making people understand the danger of something is to “raise the alarm”, and not to “raise an alarm”. Hence, do not hesitate to raise “the” alarm if you know anyone that is infected with COVID-19. In addition, a minor mistake that is spotted in spoken/written communication is regarded as “a slip of the tongue/pen”; as opposed to the common erroneous preference for “slip of tongue/pen”. So, if you called a lady’s new boyfriend by her previous boyfriend’s name, you could say it was a slip of “the” tongue.

In furtherance of this, keep in mind that whenever you are admonished to steer clear of something or someone, you are, therefore, advised to avoid that thing or person like “the plague” (not like ‘a plague’). Moreover, it will prove beneficial to put you to the wise that when security operatives stealthily invade and eventually devastate the hideouts of terrorists or other non-state actors, the former are said to be “on the rampage” — not “on rampage”.

To reinforce these standpoints, let us consider other idiomatic expressions that people unwitwww.businessday.ng

tingly omit the articles embedded in them. Now, when you ascribe paramount importance to something, you have invariably placed ‘a premium’ — not ‘placed premium’ — on it. Hence, ‘The CBN Governor places “a” premium on financial literacy and human capital development’.

Furthermore, to accept that someone has conducted himself/herself well, not least because you cannot prove otherwise, is to give that person “the benefit of the doubt” — not “the benefit of doubt”. To illustrate, “My friends call James an inveterate liar, but I will give him the benefit of ‘the’ doubt”. Essentially, too, when a development births another, the former is said to “pave the way” (not ‘pave way’) for the latter.

For instance, “Stella’s research will pave ‘the’ way for technological advancement”.

Strikingly, as well, you are supposed to deploy the phrase “on the one hand” (not ‘on one hand’) whenever you intend to contrast or juxtapose qualities or realities. In other words, “On ‘the’ one hand Julius is industrious, but on the other hand he is ill-tempered”. It is equally worthy of note that a person who is in trouble is in “the” soup (not in soup).

That said, it will do your communicative competencies the world of good, if you realise that an opulent person who perhaps leads a larger-than-life or ostentatious lifestyle is “in the money”; not “in money”. Therefore, suffice it to say that, “Mr. Collins is in ‘the’ money”.

On the other side of the discourse, if you have diligently followed my articles, you will agree with me that fluency is not child’s play. Take cognisance of the deliberate omission of the article “a” in the expression “child’s play”. When a thing or activity is very easy, it is said to be child’s play and not “a child’s play”. I also presume that you have acknowledged your misuse of that expression several times “in the public”. Well, that lands you in another grammar pit, as the act of doing something in a place where people can see you

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The Gift of Gab

Ganiu Bamgbose is expressed in standard English as doing such a thing “in public” — not “in the public”.

Nonetheless, one can be said to be “in the public eye” when one is famous. In the same category as “child’s play”, “foul play” is yet another noun phrase that cannot succeed the article “a”. For this very reason, “I suspected ‘foul play’ (not “a foul play”) when three men came in through the backyard’. Not only that, I am absolutely positive that readers will agree thus: “Dr. GAB is ‘living proof’ (not “a living proof”) that the intricacies of English language can be mastered rigorously”.

Admittedly, I feel like continuing this article but, on second thoughts, we cannot learn everything in a single lesson. Be that as it may, keep in mind that to change one’s opinion on something is to have “second thoughts”, and not to have “a second thought”. However, the foregoing shouldn’t be mistaken for doing something “without a second thought”. The article “a” is valid in the foregoing context, and the adverbial phrase implies that something is done immediately!

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

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Magu, corruption and wicked problems THE NEW WEALTH OF NATIONS

Obadiah Mailafia

C

orruption is the Original Sin. The political philosopher Isaiah Berlin described it as part of “the crooked timber of humanity”. It belongs to the class of “wicked problems”. A wicked problem, according to policy scientists, is a social problem that appears in the manner of an insoluble puzzle; in which the best solutions tend to produce, at best, perverse outcomes. It is the opposite of hard but ordinary problems that are amenable to straightforward, linear solutions.

Nigeria’s anti-corruption war is a quintessentially wicked problem. Corruption is deeply ingrained in our collective psyche. No sector is spared. In such circumstances, institutions designed with the best intentions of fighting the ogre may end up becoming part of the problem.

We were not surprised that Ibrahim Magu was recently arrested and suspended from his post as Acting EFCC Chairman. This is ostensibly to clear the way for an independent investigation into allegations levelled against him by the Attorney-General and Minister of Justice, Abubakar Malami. These charges centre, inter alia, on discrepancies between recovered assets and those actually lodged in the accounts of the CBN; selling looted assets to alleged cronies and sundry abuses. The panel, headed by Justice Ayo Salami, retired President of the Court of Appeal, is empowered to investigate all aspects of the activities and operations of the

EFCC and to make recommendations for action.

Without prejudice to the ongoing investigation, the picture that we get is that of the hunter becoming the hunted.

It leaves a sour taste in our mouth.

Until he fell on his own sword last week, Ibrahim Magu was the nation’s feared anti-corruption Czar. He did achieve some success in recovering more than N500 billion of looted assets from corrupt public figures while achieving a number of convictions. But he was also unfortunately accused of impunity, blackmail and intimidation through the agency of his over-enthusiastic thugs, popularly known as the “Magu boys”.

It has been suggested that ever since his godfather late Chief of Staff to the President, Abba Kyari, passed away in April, Magu had very much become a political orphan. Since in politics you inherit your enemies, Magu being a protégé of Mallam Abba Kyari, had also inherited whatever enemies he might have left behind. This is said to explain the no love lost relationship between Magu and Attorney-General and Minister of Justice Abubakar Malami.

Some suggest it is a case of “power play” in Abuja. There is an unstated convention that former presidents and very senior elder statesmen enjoy a certain level of immunity. Magu, apparently, had trespassed into territory where angels fear to tread. And he did so with the enthusiasm of an ill-bred Spaniel.

One thing is clear: Any EFCC Chairman that does his job well will always make enemies. It goes with the territory.

And the thing with corruption, as we all know, is that if you fight it hard enough, it always finds a way of fighting back.

And it often fights back with the deadly ferocity of a wounded leopard.

Ibrahim Magu may or may not be guilty of any or all of the 20 charges brought against him. Justice must be allowed to run its full course.

The great British conservative politician Sir Enoch Powell famously noted that all political careers ultimately end with failure. It is the type of tragedy

that underpins the Office of Chairman of the EFCC. As currently constituted, every executive of that organisation is programmed to fail. It is not by accident that none of his predecessors ended up without one problem or the other. When you probe at a deeper level, you will begin to see that it is the entire institutional architecture and gestalt of the anti-corruption system that is fundamentally defective.

For one thing, the law setting up the agency requires that it shall be headed by a policeman, serving or retired. That, in itself, is a big problem. The law was adjusted not too long ago to make the EFCC answerable to the Attorney-General the Federation. I also find that to be a problem. I think the agency ought to be directly answerable to the President and no one else. And it seems rather odd to me that the Attorney-General and Honourable Minister of Justice should take such undue interest in the nitty-gritty of how recovered assets are auctioned. The Attorney-General’s Freudian slip about “Abacha assets” instead of “recovered loot” raised a lot of howls among concerned stakeholders. The role of that Ministry should also be under probe.

I am curious that the Presidential Anti-Corruption Advisory Council seems to have no role in this evolving drama. Its members include distinguished people of integrity such as Professors Itse Sagay and Femi Odekunle. Are we to presume that they are mere barking dogs that cannot bite?

The politicisation of the anti-corruption, in my view, remains one of the biggest stumbling blocks to the entire anti-corruption war. During last year’s electioneering campaigns, former APC Chairman Adams Oshiomhole was quoted as urging politicians from rival political parties to de-camp the ruling party, so that all their sins could be forgiven. Former President Olusegun Obasanjo set that bad precedent when he used to taunt his adversaries by warning that he would send Nuhu Ribadu, the then EFCC Chairman, after them.

When you reduce the entire anti-corruption effort to a system anchored on

‘

For one thing, the law setting up the agency requires that it shall be headed by a policeman, serving or retired. That, in itself, is a big problem.

The law was adjusted not too long ago to make the EFCC answerable to the AttorneyGeneral the Federation

moral blackmail, the integrity and credibility of the whole process is brought into question.

In our day and age, global best practices in anti-corruption administration require certain minimum fundamentals.

The Paris-based intergovernmental organisation, the OECD, has laid out some of those principles.

First, anti-corruption regimes need to put heavy emphasis on policy analytics, monitoring and coordination. It is essential to understand the nature and sources of corruption and key trends in the evolution of corrupt behaviour.

Secondly, key actors need to understand that prevention is always better than cure. Systems must be put in place to focus on prevention. Expenditure controls, audit systems and M and E frameworks must work to ensure that corruption is nipped in the bud before it becomes full-blown.

Thirdly, independence of the anticorruption agency must be guaranteed in law. Such autonomy requires that the agency is immune from undue political influence. Its credibility and objectivity must be protected.

Finally, training, capacity building, adequate resources, professionalism and rigorous ability to prosecute must be continually enhanced. There is evidence that anti-corruption agencies success best when policies are based on contextually grounded systemic analyses of corruption; when attention is paid to level, location and magnitude of corruption at the strategy level; when the drivers and enablers of corruption are fully addressed; and when legal, societal and moral norms are fully aligned within a framework that enables operators to fully fight the ogre of corruption.

Note: The rest of this article continues in the online edition of Business Day @https://businessday.ng Dr. Mailafia is a former Deputy Governor of the Central Bank of Nigeria, a development economist and public finance expert with a DPhil from Oxford obmailafia@gmail.com; 08036590990 (text messages only)

Employee engagement, disengagement and profit

G

ood to see you again this Friday.

How was your week? Trust it was as good as mine? I’m going to leave you guessing how good mine was.

Before I forget we are having one of our TTBI talks tomorrow, Saturday 18th at 1:00pm WAT. This is going to be about finances and wealth.

Plan to join us. I am going to be interviewing the head of private banking for sterling bank. Zoom meeting ID 7956281472 and password lolvic.

How committed are your employees to the business? How ready are they to go over and beyond the call of duty? Showing up at work (or at your computer at home) is not enough especially in these COVID-19 times. Basically, engagement is really the above, employees being ready, not just to show up at work but also to be so committed that they are ready to go over and beyond the call of duty.

It is not just interaction at work but also full commitment that brings in the worthwhile bottom line that all organisations want. Over the last many years, the percentage of employees disengaged at work has averaged 70 percent When employees are disengaged there is an 18 percent reduction in productivity with profitability being 15 percent lower according to gallop polls. An actively disengaged employee costs their organisation 34 percent of their salary. This has not taken into consideration losses on the job for the organisation.

An engaged employee is one who commits to the organisation and gives of him or

herself freely to the success of the company.

What causes employees to be engaged varies from person to person and from organisation to organisation. A very structured and formal organisation brings commitment that is different from a casual organisation. People must fit into each organisation that suits them. This is why doing personality profiles is so important.

This not only talks about fit for the job but also fit for the organisation.

Organisations feel harnessing their employees to their work roles is enough. However, when it comes to engagement, employees express themselves physically, cognitively and emotionally in the performance of the roles.

Even if they are fit for the organisation.

There are psychological conditions that allow engagement to exist. Meaningfulness! is the job meaningful enough to engage the employee fully? Safety! is the work environment safe enough both physically and in terms of criticism so the employee can engage without fear of criticism and accidents? Finally, availability! is the employee mentally and physically able to express their full self in the work environment?

If an employee is fully engaged with the organisation, they will take ownership of their work and will be loyal without any pressure from the organisation. Is there somebody you are always cajoling to pay attention and put their all into the organisation? The chances are high that they are not engaged. For some of the above reasons.

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Engagement may however not be constant because the environment may change from safe to unsafe and back again depending on what is going on in the work place, organisation at large and even the location of the organisation.

Employees want to feel that investment from their organisation. This does not mean a massive thing, but they want to feel commitment is a two-way street. People are looking for that partnership that says I am here to serve you, and you are here to serve me, how are we going to meet in the middle?

In order to do things properly we need to understand what can cause disengagement.

The key indicator of disengagement is apathy. if there is a lack of autonomy, communication, flexibility, development, trust, personal or workplace challenges, there is a real possibility that the employee will be disengaged.

Some of the reasons for disengagement are not easily managed or overcome for example a lack of personal challenge. If the employee is having issues at home, it may present itself as a lack of interest at work. This may not easy for the organisation to help.

Let us look at some factors and how the organisation can help. With the case of a problem at home, HR can help with some welfare or a wellness benefit like counselling. Employees should not be left to deal with issues themselves as it may overwhelm them. This brings up the question, who should first show commitment the employee or the organisation?

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Olamide Balogun

If the problem is a lack of autonomy in the workplace, we must realise that autonomy is often the result of trust. Leaders who trust their employees allow them to be more autonomous.

However, trust goes both ways from a disengagement standpoint. The employee who feels they’re not trusted by leadership at any level will be less likely to give of themselves. Trust within this context can also mean the employee does not feel the company has his or her best interest at heart. They may feel they are seen as nothing more than just a suit or just a number. On the other hand, the organisation may also feel they are seen as just a meal ticket where good work is done or not.

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

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Toppling statutes HumanAngle

Femi olugbile

O

ne of the most dramatic features of the wave of “Black Lives Matter” public demonstrations that swept across the world in the wake of the murder of George Floyd in Minneapolis has been the attack on statues, monuments and other structures perceived as historical symbols of slavery and oppression of black people.

It is a quaint fact of American life, indicative of the complicated nuances of its history that the names and images of prominent figures, effectively traitors, who fought and lost a civil war against their nation adorn prominent sites in the nation, including city halls and military bases. The flag of the Confederacy – the banner under which the civil war was fought by the losing side, is part of the state flag of Mississippi to this day.

The marching crowds, made up mostly of black and white youths, have resorted to direct action on these symbols. They started by tearing down, defacing and burning dozens of statues celebrating the leaders of the Confederate States of America and its military. As time went on, they expanded the scope of their targeting to include statues

of Christopher Columbus, the man credited with “discovering” America, but who in reality, alongside other “colonisers”, was responsible for the genocide of large numbers of native American people- the original “owners” of America.

Next, they began to press for the removal of statues of other prominent figures in American history, including some former Presidents. George Washington, Andrew Jackson, Thomas Jefferson and Ulysses S Grant – towering figures in the common narrative, but slave owners, responsible for the expropriation of native American populations.

Even less controversial figures became targets because of the way they were depicted for public view. A statue of Theodore Roosevelt in New York City showing him on a horse with a native American man and a black man on their feet beside him, became a target because it depicted the other races as being inferior to the white man on the horse.

Across the Atlantic, in the United Kingdom, where “Black Lives Matter” protests were carried out with intensity, the first major target was Edward Colson, in the city of Bristol. He was a man of remarkable contradictions who made a fortune from the Atlantic slave trade and ploughed much of his fortune into philanthropic works in his native Bristol. His name was on many structures in the city, including commercial edifices and a local College.

A statue of him occupied a prominent position in the city Centre. For several years, the city authorities had been receiving requests from young black people who found themselves daily having to confront the majestic image of a man they found so abhorrent. Now, the impetus of “Black Lives

Matter” drove them over the edge.

They toppled the Colson statue and rolled it off the edge of the harbour into the river.

Plans were quickly made to remove “tainted” monuments in London and elsewhere in England, including, famously, the statue of Cecil Rhodes at Oriel College in Oxford University.

More controversially a statue of Winston Churchill, the popular war-time Prime Minister, was defaced in Parliament Square and had to be boarded up to prevent further damage.

In Edinburgh, Henry Dundas, was a philanthropist and Tory politician who used his influence during his tenure as Home Secretary to delay the abolition of slavery in Great Britain by fifteen years. The Melville Monument, a structure dedicated to him in the city centre, was vandalised by protesters.

More controversially, there was an effort to take down the statue of Robert Baden-Powell, the founder of the Boy Scouts movement, in Poole, south coast of England. Baden-Powell, later in his life, distinguished himself by founding the Boy Scouts, a movement to develop the positive energy of youth. But earlier he had fought in the Boer Wars in Southern Africa and behaved with the atrocious racism characteristic of “Rhodesians” killing black men and forcing them off their land. A photograph found in his scrapbook shows the bodies of black men dangling from a tree, while their white killers look on. The picture is titled “The Christmas Tree”.

There is an African side to the toppling of slavers’ monuments which has received scant attention to date. It was brought home dramatically by the story of Dilibe Onyeama – the second black African to attend Eton College, the famous “public school” where British royalty and the elite are groomed.

‘

More controversially, there was an effort to take down the statue of Robert Baden-Powell, the founder of the Boy Scouts movement, in Poole, south coast of England.

Baden-Powell, later in his life, distinguished himself by founding the Boy Scouts, a movement to develop the positive energy of youth

He experienced extreme racism in the school, and wrote a book titled “Nigger At Eton” to describe his experience.

With their conscience pricked by “Black Lives Matter”, the school is now reaching out to him, inviting him to visit and offering a personal apology.

But Dilibe Onyeama got to Eton because his father, Dadi Onyeama was a Judge of the Supreme Court of Nigeria and served on the International Court of Justice. Dadi Onyeama received education to reach such stellar heights because his own father was a powerful warrior-merchant at Arochukwu.

He made a fortune from selling slaves captured in local raids. If white slave traders are having their statues toppled and their institutions are apologising, what about the black men who sold their fellows into slavery?

Dilibe has advanced a disingenuous argument to exculpate his grandfather, claiming he lacked education and awareness. It is untenable, after Achebe has told the world that Africans “had a story” before the white man, and so are accountable, like everyone else. The sins of Africa’s slave-trading forebears must be acknowledged.

Their statues, physical and mental, must be toppled too. School children must be taught to see the Madam Tinubus, the Efunsetan Aniwuras, Oba Dosunmu and other slave trading monarchs, Dilibe’s grandfather and all others who profited from the evil trade as villains and not heroes as many are portrayed in history books. Anything less would render the passionate African support for “Black Lives Matter” a display of lack of insight and lack of readiness to take responsibility and truly right the wrongs of History.

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

How organisational culture is influenced by leadership

C

ulture impacts the growth of every organisation. But unfortunately, many leaders today are still unaware of how culture is intricately tied to what they do, who they are, and the results they produce.

Or in some cases, they may have an idea of the culture that their organisation needs but they fail (0r don’t know how) to translate it into concrete terms to those that they lead.

The truth is building a formidable culture is not a walk in the park. It requires effort, time, and consistency. Culture, or at least a part of it, is also not static but prone to improvement over time. As a leader, the culture you build should never be rigid; instead, it should be one that can be improved upon and helps you stay competitive in the evolving times.

Sadly again, a lot of organisations soon find them being weighed down when competing cultures gain the upper hand in their day to day activities. In this situation, it soon becomes apparent to everyone, both employees and clients, that the espoused values are not being enacted. Soon productivity takes plummet and employees begin to develop a different mindset from that of the company. And with those who are frustrated because of a flawed culture compared to what they perceived when they joined the organisation, the inevitable sets in: the organisation starts to tear apart.

When there is a lack of definition of what your organisational culture is and a strong adherence to it, you end up having people creating and exhibiting different behaviours that are diametrically opposite to what your organisation truly stands for. Don’t fall into this trap. In other times, leaders try to copy the cultures of other organisations without taking into consideration their own corporate DNA. Transferring cultural values without due

diligence will always create confusion or what is known as culture clash. When building a culture, you must be clear on what fits into the kind of organisation you want to develop and what doesn’t. When that is done, it behoves on you to enforce the needed culture through and through within your organisation. Without proper enforcement, you send a wrong message to your people that the culture is not essential after all.

Just like I stated earlier, juxtaposing opposing cultures will always lead to tussle. But as a leader, you also need to be aware that people who join your organisation bring with them various cultures wherever they are coming from as individuals. There is also the culture of the society that often rubs off on people (Ellinas et. al., 2017). Therefore, it is your job to ensure that your organisation culture is not at the mercy of whatever culture they are coming with. You are simply the lead culture engineer in your organisation. At best, let your culture become the filtering mechanism that is positioned right at the door, even before anyone joins your organisation.

Culture clash can also happen in the case of corporate merger and acquisition of two or more companies. If there is no serious alignment between these cultures, it will eventually affect corporate performance, impact employee morale, and derail focus. Forwardthinking organisations spend enough time and resources discussing and agreeing on culture differences before choosing to forge partnerships. Because, ultimately, what defines the way people work and the results they produce is their culture. This philosophy has been backed up by studies like Berberoglu (2018) which found that the organisational climate of any organisation is significantly tied to the

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organisation’s commitment and perceived performance.

Understanding culture is paramount for those in leadership positions throughout any organisation. Culture serves as a guide to every employee, giving them a sense of direction on how things are or should be done. Culture doesn’t only dictate the way employees interact with one another; it also governs how they interact with clients, investors, suppliers, and other stakeholders. A healthy culture is one that promotes innovation, shared commitment, fulfilment, accountability, integrity, and performance among team members.

As a leader, if you realise that your culture is not supporting your organisational growth, it is time to change course. Make a list of what is not working and be flexible enough to improve or try something else. Changing cultural direction can be expensive, some people might even stand against it, but if it is the right thing to do, then it is worth every penny and resilience.

Don’t be tempted to stick with the status quo when the situation calls for a change.

The truth is that changing your culture might require you making tough decisions like letting go of certain people, or shutting down certain branches or departments, or pivoting to another business entirely. While this is not as easy as it sounds, it might be the solution you need to turn things around. We have seen organisations we went out of business, not because they had bad products or poor marketing strategies. It was just that they failed in managing their entire culture architecture, leading to people operating at cross-roads within the organisation. Culture engenders focus while also gives direction and meaning to every action taken by the people. Without culture, boundaries cease to exist, an occurrence that is

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Toye Sobande

capable bringing any organisation to its knees.

At the core of every organisational growth is the human element. People play a critical role in how far or big your organisation will end up. Without the right people, every other plan comes crashing down. They can also be a huge drag to your progress if the culture that they operate by is contrary to what the organisation needs to get to the next level. Therefore, effective leadership means staying proactive.

It is not only about installing the culture that your people need to win but also enforcing it every day both in words and by actions.

As a leader, you must mirror the culture you want to build within your organisation.

It was Mahatma Gandhi who said, “Be the change you wish to see.” We have seen many organisations with nice-sounding vision and value statement, only for the leaders to turn around and sabotage them by their actions.

It is very hard to install the right culture if you don’t lead from the front. As a leader, you must learn to walk the talk; because any culture that you do not subject yourself to, will never work.

Sobande is a Lawyer and Leadership Consultant. He is a Doctoral Candidate at Regent University, Virginia Beach, USA, for a Ph.D. in Strategic Leadership. He can be reached through Email: contactme@toyesobande.com

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Friday 17 July 2020

BUSINESS DAY

Editorial Publisher/Editor-in-chief

Frank Aigbogun

Publish group accounts, oil contracts, to justify NNPC transparency claims The excuse that petroleum contracts are confidential is no longer valid

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

Bashir Ibrahim Hassan

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

L

ast month, the Nigerian National Petroleum Corporation (NNCP) published its subsidiaries accounts but withheld the critical Corporate accounts, a key disclosure that presents the true picture of its financial affairs, denting its transparency efforts.

The NNPC business operations are managed through Strategic Business and Corporate Services Units (SBUs/CSUs) in diverse locations across Nigeria and its group accounts presents a complete picture of its financial affairs. As state-oil firm, the NNPC manages Nigeria’s oil on its behalf, in the interest of probity, the public needs to see the accounts.

Fallen oil prices have impacted investments into the sector and the countries that attract investments are transparent. The NNPC which manages Nigeria’s oil assets and involved in many joint ventures and other shared production arrangements with local and international oil companies needs to be open.

The NNPC may argue that it publishes a monthly financial and operations report but these documents have not passed through the rigour of an audit and cannot be relied upon with the same confidence as an audited financial statement.

Even the corporation sticks a disclaimer on them.

Beyond publishing its group ac-

counts, the NNPC should also make public petroleum contracts Nigeria signed with oil companies to be truly transparent. The best weapon against corruption is transparency.

Petroleum contracts set out the legal framework for oil and gas projects. When they are published, it allows for public scrutiny but previous governments have balked at disclosing them claiming it could expose company secrets, give undue advantage to the competition and violate contract terms.

But these reasons are not tenable.

These contracts contain several terms for which a strong public interest case can be made for disclosure. Fiscal terms contained within contracts can have an enormous impact on public finances. In the upstream sector, exploration and production contracts and associated agreements contain clauses that dictate the amount of money that the country receives in taxes and royalties and how much companies must share with the government. Also, technology advances have rendered most of those technical details obsolete anyway.

We call on the national assembly to quickly pass the Petroleum Industry bills and repeal some antiquated laws including section 5 of the Petroleum Profits Tax Act, which prohibits public disclosures of documents relating to the sector without the minister’s consent.

The public should know how much oil companies are required to pay as

statutory fees including application and renewal fees, rents and royalties.

Oil mining leases (OMLS) attract additional non-statutory fees including, bidding fees, data inspection fees, signature bonus and reserve value fees.

Nigerians often do not know what their government is getting from these deals and this cover allows corruption to fester.

At different forums, the Nigerian government has promised to be transparent including at the AntiCorruption Summit held in London 2016 where it said it was “working towards full implementation of the principles of the Open Contracting Data Standard focusing on major projects as an early priority.

In 2017, Nigeria formally joined the Open Government Partnership— a multilateral initiative to strengthen governance. In the country’s first National Action Plan, Commitment 3 on fiscal transparency contains language committing to “disclose oil, gas and mining contracts in the area of exploration and production, exports, off taking and swap on a publicly access portal in both human and machinereadable formats.”

Prodded by the World Bank, Nigeria began a framework for disclosing public private partnership projects on the Infrastructure Concession Regulatory Commission (ICRC) website to be accessed by the general public.

It contains information about project title, type, government agency responsible; name of private concessionaire,

contract sum and progress reports but petroleum contracts which Nigeria relies upon for fiscal planning was not included.

Contract disclosure is now global best practice. African countries including Liberia and Ghana have opened up their contracts allowing citizens, lawmakers, and oversight actors to monitor and analyse the public benefit from contract deals.

The excuse that petroleum contracts contain confidential and commercially sensitive information is no longer valid. Even when the parties do not agree to make any information public, confidentiality clauses in extractive industries contracts almost always include an exception for disclosures that are required by law.

So, lawmakers can mandate contract transparency by law In oil contracts information including financial terms, work obligation commitments, and environmental protection and mitigation measures to be undertaken often subsumed under commercially sensitive are already well known in the industry and highly sensitive details can always be redacted according oil sector transparency advocates.

Unlike his predecessor, the NNPC under Mele Kyari seems keen to do what is right for the country, but it must not be half-hearted. If the recent corruption scandals have taught us anything, it is that opacity creates the best environment for corruption to thrive.

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

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Friday 17 July 2020

BUSINESS DAY

MONEYINSIGHT Four ways lockdown changed Nigeria’s payment space ture provider that is looking to scale its operations. But the financial services could also benefit from players like MTN and Airtel which are waiting for a Payment Service Bank license to get into mobile money services.

FRANK ELEANYA

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he past six months that Niger ians have spent under lockdown ordered by the government to protect people from the coronavirus, has highlighted a few lapses in the country’s payment space that needs addressing.

There is also some positive news from the crisis for players in the sector.

For one, the lockdown has established the importance of electronic payments.

Sydney Aigbogun, the founder of CashBox, a fintech platform in Nigeria, says COVID-19 has shown that the world is going online and companies have realized w orking from home is not as bad as they thought.

“At Kuda we are seeing a significant increase in the adoption of our digital only banking product,” said Babatunde Babs Ogundeyi, founder and CEO of Kudabank. “As a cloud-based bank we are technologically positioned to accommodate this sudden increase in traffic. We also operate a multi-digital channel strategy for our customer support, which runs 24/4, an important factor under ‘normalcy’ but a huge deal during a lockdown.”

The lockdown also highlights a few areas that need better attention. This is despite efforts made by authorities to fix them.

The Central Bank of Nigeria had released a statement on 30 March - same day President Buhari ordered a lockdown in Lagos, Ogun and FCT - urging the banking public to limit the use of cash and rather utilise alternative payment channels such as mobile banking, internet banking, mobile money, Point of Sale (POS), and USSD. The apex bank also assured that financial institutions will remain operational during this period and therefore should guard against panic withdrawals from their banks. Despite the assurances, consumers’ experience throughout the lockdown is anything but satisfactory.

We identified four lessons that can be learnt.

Financial service needs a collective response One thing everyone agrees with is the coronavirus pandemic caught all sectors, including financial services, unawares.

“For Financial Service Providers, we are reminded that we play a critical role in society. We need to do more to be ready for all that life and nature will

bring. We weren’t prepared enough this time,” said Salami Abolore, founder and CEO of Riby Finance, a digital Banking platform for Cooperatives Globally, payment systems - including the most sophisticated - in different countries have also struggled to keep pace with the impact of the virus.

The difference, however, was the financial regulator in those countries had a robust and well engaged financial system to fall back on. By tapping into the strengths of the various stakeholders, banks, MFBs and fintechs firms, and building a reliable electronic payment system these countries - example the US - have been able to reduce the impact on the sector and consumers.

In Nigeria, the CBN tried to collaborate but while it practically dragged the banks along, the fintech firms were not given equal attention.

Left to fend for themselves, the fintech firms introduced all manner of self-help measures which ultimately affected the quality of service they provided.

Government needs to use more fintech services This much was evident with the distribution of the palliative. Instead of using the existing electronic payment channels, the government at different levels preferred to hand out cash to beneficiaries in the different states.

“Efforts at boosting financial inclusion will be undermined if the government goes the way of handing cash to the bottom of the pyramid during this pandemic rather than find a way to leverage electronic transfers,” said Toyin Sanni, CEO Emerging Africa Capital Group.

It is through government patronage of fintech services that the businesses achieve scale.

“As an extension of the overall government, the regulators have done a great job in encouraging digital payments, and we envisage that the wider arm of government will continue to leverage on digital payments to carry out its www.businessday.ng

socio-economic activities.”

Payment infrastructure needs urgent investment The deficiency of Nigeria’s payment infrastructure shot out like a sore thumb, days after the CBN had assured consumers of a smooth digital banking experience. On 3 April, the financial regulator issued a new statement directing Interswitch to suspend refund activities for failed Visa and Verve card transactions, pending the duration of the lockdown.

The result was that refunds for failed Visa and Verve card transactions on POS terminals for instance would not be processed until the lockdown is lifted.

The Federal Competition and Consumer Protection Commission (FCCPC) in a statement it issued on 22 April, said it has received a lot of complaints from consumers on issues bordering on failed electronic banking transactions within the period of lockdown.

Investors seem eager to invest in payment infrastructure as shown by TLcom which invested $1 million in Okra, a Nigerianbased payment infrastruc-

Scaling training in consumer experience It was a missed experience for many consumers of financial services. Most banks that run skeletal services had many customers frustrated from not picking or returning dropped calls to not providing any solutions to complaints made about products and services.

“User experience in any product being developed should be emphasized on, ease of use, and all that.

Because a cumbersome product will only drive users away,” said Aigbogun of CashBox. Nevertheless, some financial services providers in Nigeria have reacted positively and in many cases with empathy during the crisis.

Some have reduced their fees, creditors are adjusting debt repayments and many have donated and raised money for the vulnerable.

“In order to support our borrowers during this difficult period, we’ve reached out with phone calls and surveys to understand their challenges,” Stephanie PeterOmale, marketing specialist, Quickcheck. “Like everyone in the world, we are coping with not knowing when we can return to normalcy, but we are working round the clock to implement possible relief measures that will help them maintain their creditworthiness.”

CRC Credit Bureau appoints Alebiosu, Odulaja as chairman, vice-chairman respectively

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he board of directors of CRC Credit Bureau Limited have appointed Olusegun Alebiosu and Olajumoke Odulaja as chair and vicechairman respectively.

Alebiosu and Odulaja have over 50 years of experience combined in senior executive positions in the banking and financial services industry. Alebiosu replaces Greg Jobome who has served out his twoterm tenure. He joined the Board of CRC in 2016, representing First Bank.

The new chairman is the chief risk officer, First Bank of Nigeria. Before joining First Bank in September 2016, he served as chief risk officer at Coronation Merchant Bank Limited, chief Credit risk officer at African Development Bank Group and group head, Credit Policy and deputy chief credit risk officer at United Bank for Africa Plc. He holds a bachelor’s degree in Industrial Relations and Personnel Management and a master’s degree in International Law and Diplomacy from the University of Lagos.

He also holds a master’s degree in Development Studies from the London School of Economics and Political Science. He is a member of various professional bodies, namely, Associate of Institute of Chartered Accountants of Nigeria (ICAN), Nigerian

Institute of Management (NIM), Chartered Institute of Bankers of Nigeria (CIBN) and Member, Nigeria Institute of International Affairs. He is also an alumnus of Harvard Kennedy School of Government.

The vice-chairman, Odulaja is currently the chief risk officer of Union Bank Plc and brings to her new role over 20 years in the banking industry with various managerial roles in Credit Risk Management. Before joining Union Bank, she worked at Stanbic IBTC and Standard Chartered banks, with 12 years spent in managerial positions during her career. She joined the Board of CRC in 2018, representing Union Bank Plc and Keystone Bank.

She is a Fellow of the Institute of Chartered Accountants of Nigeria (ICAN). She obtained a bachelor’s degree in Economics from the University of Ilorin and Master’s in Business Administration (MBA) from Manchester Business School, United Kingdom.

CRC Credit Bureau is the largest Credit Bureau in Nigeria and provides a nationwide repository on credit profiles of corporate entities as well as consumers, thus improving the ability of credit providers and borrowers to make informed lending and borrowing decisions.

Here are books every young entrepreneur needs to enlarge impact STEPHEN ONYEKWELU

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oung entrepreneurs and start-ups find themselves caught up in so many activities meant to help their businesses survive and thrive but reading is usually not one of them.

Experts say it is important to read the classics in your field of endeavour, in order to understand how the masters in that field think and act.

The classics contain the fundamentals.

Fundamentals are insights created by people who had to figure out everything, these are fundamentals on which everything else read about today is built on. Technology may change, ideas evolve but fundamentals, the basics always remain the same.

Some young entrepreneurs like to proclaim their negligence toward reading, or claim they can learn the same lessons from videos,

podcasts, and even life experience.

However, while all of those work too, reading has a unique quality you cannot get elsewhere. It forces your brain to work differently.

Besides, some of the brightest minds in history did not record YouTube videos, they wrote books. To say you do not read is essentially to refuse learning some of the greatest lessons of all time.

“I always tell entrepreneurs, if you want to learn and master a topic, read the classics, find and read the classics. Here’s the question I get all the time: “But why Ronald?

Why waste time with a book that’s old and dated?” Ikenna Ronald Nzimora, business coach said on his Twitter handle @ronaldnzimora. “There’s a reason why when you want to learn a language, you start from learning the alphabets.”

Once the alphabets are in place, the words are strung together and woven into sen-

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tences. Sentences give birth to paragraphs and onward the march continues.

For a start, here are three business classics to read: 1.

The 7 Habits of Highly Effective People

by Stephen R. Covey This is one of those books you should read and then reread every year. Make it a habit because it is deemed one of the best business leadership books of all time for a reason. Stephen R. Covey gives actionable but extremely self-aware guidance to aspiring leaders who want to lead by example. The 7 Habits of Highly Effective People is meant for individuals who are looking to improve themselves from the inside out.

2. How to Win Friends and Influence People by Dale Carnegie Tried and true, How to Win Friends and Influence People is one of the most popular @Businessdayng

business books of all time for a reason. With plenty of undertones of self-development, Dale Carnegie shows readers why handling business the right way is so imperative.

3. Zero to One by Peter Thiel Entrepreneurs everywhere say they want to do something different, that they want to change the world.

Well, serial entrepreneur Peter Thiel has decided to tackle that topic head-on, and point out exactly what it takes to make something entirely unique and new. As he says, “The next Bill Gates will not build an operating system. The next Larry Page or Sergey Brin won’t make a search engine. Tomorrow’s champions will not win by competing ruthlessly in today’s marketplace. They will escape competition altogether, because their business will be unique.”

Thursday 17 July 2020

BUSINESS DAY

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COMPANIES&MARKETS REAL ESTATE

5 Things to note from CT Group’s poll on perceptions Zylus Investment rewards outstanding realtor on Nigerian Economy & International Investment SEGUN ADAMS

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research by Crosby Textor Group (CT) provides valuable insights into the perceptions and behaviour of consumers and the future for retail in Nigeria, where the impact of the coronavirus outbreak of the economy holds significance for the sector.

•Nigerians fear worsening poverty than rising coronavirus cases.

The survey which was carried out in early July involving 1,000 respondents showed that the three important issues for Nigerians are poverty (47%), economy (36%), and the Covid-19 (36%) (ahead of National security, Terrorism and surprisingly, Jobs).

The respondents (87%) voted that the coronavirus has weakened the Nigerian economy and the country’s pandemic outbreak is in the early stage and rapidly accelerating.

Still, the majority sentiment

was that the government has been too focused on protecting the sick at the expense of personal finances, jobs and the economy.

•Nigerians holding back on spending General spending pattern has been altered by Covid-19 uncertainties and lower earnings capabilities of households so that 7 out of 10 households have cut down on their expenditures to protect their finance, according to the survey.

A quarter of households say they have maintained their pre-pandemic budget while 3 percent say they are not sure of their position.

The survey showed that for the recreation category, only spending on entertainment subscription services like Netflix improved in the period. Supermarket Food staples purchases improved, a net of 15% of respondents said while the other items like takeaway food, cigarettes, cafe and alcohol declined.

With the economic consequences of the new coronavi-

rus still being felt, Nigerians are prioritizing their spend on essentials like food and utilities and shunning ‘luxuries’ like clothing and takeaway food, CT noted. Internet/WiFi, Mobile data plan, Utilities, Rent Mortgage, Gas/Petrol/Diesel/ Fuel spending went up in the period.

•Nigerians are positive about the presence of International Brands in the country.

Roughly 56% of pollsters say international brands have the right amount of presence or should increase their presence in the country, while 40% voted for the smaller presence of foreign brands.

For businesses in the country, Nigerians believe priorities should be more of social responsibility (social purpose, ethical behaviour, environmentally sustainable) than Economic Growth (making profit, creating jobs, tax contributions to the economy.)

The pollsters also believe Germany not UK should be Nigeria’s third-biggest part-

ners while India should be 7th, allowing UK occupancy 4th spot.

•Trust remains the biggest hurdle for online shopping.

Even though online shopping is stress-free and convenient, Nigerians are worried product description would not match actual deliveries (56%) and about Security or Fraud risk (18%), and Delays in delivery (18%).

Concerns that items may be more expensive were only shared by 4% while 1% complained about poor internet.

•Education takes Centre stage.

Nigerians believe that the education sector has the most urgent need for investment ahead of Manufacturing, Renewable energy, Infrastructure (Road and Rail etc.), and Technology.

The vote might have been informed by the inability of students across all levels to continue learning due to social-distancing rules and increasing cases of the Covid-19 in the country.

L-R: Chisom Onyeka, corporate affairs advisor, Nigerian Breweries Plc.; Chris Bode, chief medical director, Lagos University Teaching Hospital (LUTH); Joy Egolum, corporate affairs manager, Nigerian Breweries Plc., and Richard Ajayi, company medical adviser, Nigerian Breweries Plc., during the presentation of drinks and sanitizers to the management of Lagos University Teaching Hospital(LUTH) in Lagos.

JOSEPHINE OKOJIE

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y l u s I nv e s t m e n t Limited, one of the l e a d i n g re a l e s tate brands in the country has rewarded its outstanding realtor with a brand new car.

The realtor emerged winner of the organisations‘ Land Banking Investment Project Pool 1.0’. Sarah Osanyande was announced the winner of the project pool 1.0 by the organisation’s winning brand ambassador Jumoke Odetola.

The car was presented

by Oluwatosin Olatujoye, chief executive officer of Zylus Group to Osanyande – the winner. “ Zy l u s Ho m e s o f f e r s innovative real estate products to clients within and outside Nigeria. Our products are tailored to enable everyone to invest in real estate without fear, as we provide the required expertise,” Olajutoye said with speaking on the project.

“We are in business to make wealth for all our subscribers and investors.

We are also committed to delivering real estate investment solutions that generate wealth,” he added.

Lots of other exciting gifts were also presented to the organisation’s clients that participated in the land banking scheme initiative.

Osanyande, the winner of the initiative shared her excitement and appreciated the organisation for rewarding outstanding realtors.

APPOINTMENT

Seplat appoints new chief financial officer and executive director OLUSOLA BELLO

CRYPTOCURRENCY

ABiT Network’s Tatcoin Gets Listed on Crypto Exchanges IDEX, Bitfxt LUCKY NWANEKWU

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atcoin by ABiT Network has been listed on IDEX Cryptocurrency Exchange, a platform for digital asset exchange according to official reports published by IDEX Monday.

In continuing with its consistent efforts of supporting new cryptocurrency tokens on its, IDEX Exchange said Tatcoin tokens will be traded in pairs with ETH Pair.

Also, Bit fxt one of Nigeria’s leading exchanges also announced Tatcoin’s listing and tokens are traded in pairs with

“I appreciate the way Zylus Homes operate, and how they fulfill their promises. None of my clients has ever complained about any of their products or investment scheme. Zylus Homes is true to their words,” she said.

On her part, Odetola congratulated the winner; she also appreciated Zylus Homes for the wonderful initiative.

“I am delighted to be a part of this event today.

Osanyande joy is contagious. I feel the genuineness from the way she screamed when I announced her as the winner,” Odetola said.

“I am happy to be a part of the Zylus Homes and I commend this wonderful reward initiative from the company. I look forward to more exciting moments working with the brand,” she further said.

The Zylus Property investment scheme leverages on the opportunities in the Nigerian real estate sector to help investors to put their money to work.

It also enables people to invest in real estate with as little as N100,000 and make 15, 30, and 45 percent returns on investment for 6, 12, and 18 months respectively.

The land banking scheme has been fulfilling its promises to clients since 2018, and it has a track record for success.

O t h e r re a l t o r s I re n e Ad e ju m o, L i f t e d Ud u h, and Bolanle Raheem won N500,000, N300,000, and N200,000, respectively.

Nigerian Naira on its platforms.

On its official blog, Idex noted that “ABiT network is a pan African company focused on blockchain technology to enable creative opportunities.

The team has launched Tatcoin, a utility token focused on simplifying payment processes for goods and services. Tatcoin will be available to every user on the ABiT network.

“Listing Tatcoin on a prominent exchange will benefit the rise of smart 21st Century pioneers who will be at the forefront of blockchain innovation in Africa.”

The founder and CMO of the ABiT Network, Gaius

Chibueze, told BusinessDay that the move was expected given that “Tatcoin has a very high use case and also that a lot of people believe in the project,” he said.

Also adding to that Raymond Idu, CTO said that post-listing, “ABiT will focus on revamping products, intensifying marketing campaigns while awaiting other exchanges accreditation.”

Idu noted that obtaining approval to list a coin on exchanges requires meeting up to their criteria, some of which maybe really stringent to meet.

“ABiT is committed to list-

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ing on as many exchanges as possible. Though some requirements will naturally take months of scrutiny,“ he said.

Tatcoin has also been listed on Coingecko, an online service that allows Cryptocurrency users to track cryptocurrency popularity and activity rates online.

Coingecko is one of the biggest data networks for crypto, just behind Coinmarket Cap bought by Binance exchange.

Notably, after the listing, Tatcoin saw it’s value pushed by over 0.5% in just 24hrs. The opportunity for growth will continue amidst more listing and trading, experts say.

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he board of directors of Seplat Petroleum Development Company Plc has announced the appointment of Emeka Onwuka as chief financial officer (“CFO”) and executive director of the company, joining the Seplat Board with effect from August 1, 2020.

O nwu ka ha s over 3 0 years’ experience in financial services within SubSaharan Africa. He has acted as the voice and face of major financial institutions in Nigeria as former group managing director /CEO of Diamond Bank Plc and former Chairman of Enterprise Bank Limited. Onwuka is a Partner at Andersen Tax Nigeria and holds various board positions as chairman; FMDQ Securities Exchange Limited; director @Businessdayng

FMDQ Holdings Limited; director, Ecobank Nigeria Limited; and director, Bharti Airtel Nigeria.

Onwuka received his B.SC. in Political Science from the University of Nigeria, Nsukka and holds an MBA from the University of Benin. He is a Chartered Accountant, a Fellow of the Institute of Chartered Accountants of Nigeria, a Fellow of Chartered Institute of Taxation of Nigeria. He has attended executive programs at the Lagos Business School, Wharton Business School and Harvard Business School. Onwuka holds the Nigerian National Honour, Officer of the Order of the Niger (OON).

The Board of Seplat is confident that the wealth of knowledge and experience he brings will be a great addition to the Company.

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Thursday 17 July 2020

BUSINESS DAY

COMPANIES&MARKETS FCMB, SME.NG , others urge women to take lead in ICDs, barge transportation will decongest Lagos ports - SIFAX driving growth of businesses and development AMAKA ANAGOR-EWUZIE

MICHAEL ANI

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omeninNigeria have been urged to play a more active and frontal role in stimulating the growth of businesses that would lead to an overall development of the economy.

In addition, they have been advised to pursue leadership roles in their communities and the corporate world so as to rise to the top echelon of decision making in order to champion policies and programmes that would ensure sustainable development.

The advice was given by Latanya Mapp Frett, president and chief executive officer, Global Fund for Women (GFW), who was the special guest speaker at the 4th edition of the Women Financing Women (WFW) Group meeting hosted by leading financial services provider, First City Monument Bank (FCMB) and SME.NG (Nigeria’s SME Impact Investment Platform) in Lagos on Thursday,

June 25, 2020.

The WFM quarterly meeting, which was held virtually with no fewer than 30 registered attendees, provided a platform for women entrepreneurs to come together and share experiences on how the novel coronavirus pandemic has affected businesses; and proffer solutions to the various challenges posed by the pandemic.

The WFW Group, conceptualised by SME.NG in 2019, is an assemblage of women-led funds, investors and financial institutions with diverse portfolios that focus on assisting women to secure finance for their businesses in Nigeria. On the other hand, SME.NG is an impact investment platform that invests in Nigerian Small and Medium Scale Enterprises (SMEs) to realise measurable environmental, social and financial returns.

According to Frett, the absence of women in key leadership positions has limited the ability and capacity of womenowned businesses, including Small and Medium Scale

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Enterprises (SMEs), to secure the relevant support to ensure their success.

She stated that, “the inability of women to reach the very top of leadership positions is a limitation to reach our goals.

These include long term opportunities to influence the attainment of international sustainability targets in a manner that would impact positively on the well-being of women and their endeavours, especially in the area of business and other socio-economic activities”.

Frett informed that the Global Fund for Women has in the last 35 years intervened and supported women in various ways. She listed this to include funding of over 5,000 womenowned businesses across the world since the outbreak of the COVID-19 pandemic, and the creation of a feminist funding model, under which GFW works with a network of partners to ensure that women can fund the business of other women through grants of between $10,000 and $100,000 for a period of 3yrs.

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braheem Olugbade, executive director, SIFAX Off-Dock, has urged all the stakeholders in the maritime sector to adopt the option of barge transportation in the movement of consignments from Lagos ports.

Speaking in Lagos recently, O lugbade said the challenges of congestion and traffic caused by bad access roads would drastically reduce, if credible alternative to road transportation like barge is encouraged by shipping lines and agents.

“S h i p p i n g l i n e s a n d agents should be encouraged to key into the use of barges for transfer in view of the poor state of the port access road. Aggressive transfer of cargoes through barges to the various off docks in Lagos will help decongest the port in a great way and help the port reach its maximum potentials,” he said.

He also urged the Ni-

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gerian Shippers Council (NSC) and other relevant agencies to execute the policy of establishing inland container depots in var ious par ts of the country with more vigor as this will provide a very important leeway for the decongestion of Nigerian ports.

“The idea of floating inland container depots or off docks in various parts of the country is a very good initiative by the government. Although it is yet to yield its desired result, there is need to pursue

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its implementation with more commitment by all stakeholders. Off docks facilities are still very much relevant in Nigeria’s maritime business model. They will always help to decongest the ports and bring about efficiency in port operations,” he said.

Olugbade further noted that SIFAX Group’s belief in off dock as a good port d e c o ng e s t i o n s t rat e g y .

This, he said, has been responsible for the company’s massive investment in its current off dock facilities and acquisition of new ones in various locations across Lagos.

This, he further said, would enable agents to experience easier cleari n g p ro c e s s a n d f a s t e r consignment movement.

On the indiscriminate siting of off docks in Lagos, Olugbade urged relevant government agencies to strictly enforce the policies that guide the off dock location in Lagos state, in order to avoid environmental hazards.

Friday 17 July 2020

BUSINESS DAY

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Markets + Finance

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

Akinwumi Adesina: Eradicating poverty through agricultural innovation

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ith over 30 years’ experience in agricultural innovation, Akinwumi Adesina is changing the narration of eradication of poverty through agricultural innovation and promoting good governance through the works of developing Africa’s economy.

On May 28, 2015, precisely 24 hours after his term as Minister of Agriculture ended in Nigeria, Akinwumi Adesina was the eight elected President of the African Development Bank Group (AfDB).

Akinwumi Adesina is pioneering major transformations in the agricultural field, through expanding rice production by introducing high yielding technologies, designing and implementing policies to support farmers’ access to technologies at scale, increasing the availability of credit for millions of smallholder farmers, attracting private investments for the agricultural sector, rooting out the corrupt elements in the fertilizer industry, and assisting in establishment of major agricultural policies for Africa’s green revolution.

A proactive AfDB Group, under Adesina’s adroit leadership, has also risen to the challenge and has announced a $10 billion facility support for African countries. In no small way, this has helped scale up a $3 billion COVID-19 social bond on the London Stock Exchange to help Africa deal with the economic and financial fallouts of the pandemic. Industry observers have commended AfDB President, Adesina, who under his leadership has made this support a reality.

Standard & Poor’s (S&P) Global Ratings affirmed its ‘AAA/A-1+’ long- and short-term issuer credit ratings on AfDB, last month.

The global rating agency also stated that the outlook of the Abidjan-based multilateral institution remains stable.

Also, recently, the board of governors approved the replenishment to the African Development Fund, which underscored its important role in Africa, marked by a long track record of fulfilling its

policy mandate through economic cycles, combined with robust shareholder support.

According to S&P, the AfDB under the leadership of Adesina Akinwumi will play a key role supporting the region, particularly in the context of coronavirus, as the institution recently approved an up to $10 billion relief package for 2020, of which $6.9 billion would be financed by AfDB and the remainder through its concessional lending window.

Also, Adesina has served in several high-profile positions internationally, including with the Rockefeller Foundation, and was Nigeria’s Minister of Agriculture and Rural Development from 2011 to 2015, a career stint that was widely praised for his reforms in the agricultural sector. The former minister brought the same drive to the Bank, making agriculture one of the organization’s priority areas.

In 2017, he was awarded the World Food Prize.

The World Food Prize Foundation lauded Adesina’s qualitative leadership and his visionary roles over the past two decades in promoting Agriculture with the Rockefeller Foundation and the Alliance for a Green Revolution in Africa (AGRA).

During his tenure, the bank has seen its fortunes rise on several fronts, including the largest general capital increase in its history with a capital base of $208 billion.

United Kingdom-based Publish What You Fund ranked the AfDB fourth out of 47 global development institutions on its Aid Transparency Index last month.

The index placed the Bank in the highest category of transparency along with other world-class institutions such as the World Bank, the Asian Development Bank and UNDP. In Johannesburg in 2018, the bank launched the Africa Investment Forum, a fully transactional platform, to attract investment into Africa, with participation from private sector investors, pension and sovereign wealth funds, Heads of State and government officials to discuss specific investment deals.

The Africa Investment Forum was an outstanding success by all measures. The forum delivered an

Akinwumi Adesina

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During his tenure, the bank has seen its fortunes rise on several fronts, including the largest general capital increase in its history with a capital base of $208 billion

‘

BALA AUGIE

impressive $38.7 billion in investment interests, all done in less than 72 hours.

Akinwummi spelt out a fivepoint strategy he christened the “High5s” which include Feed Africa; Industrialize Africa; Integrate Africa; and Improve the Quality of Life for the People of Africa.

The strategy was designed to provide transformational development for Africa over ten years in five critical areas: electricity, agriculture, industrialisation, integration, and improved livelihood.

In Adesina’s view, achieving these development targets for Africa, are key to opening the fortune of its people and achieving the global Sustainable Development Goals (SDGs).

In an independent analysis carried out by the United Nations Development Programme (UNDP) on the Bank’s five strategic priorities, the international development agency observed that full implementation of the High5s would guarantee that Africa attains 90 percent of its

BD MARKETS + FINANCE Analyst: BALA AUGIE www.businessday.ng

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SDG targets and 90 percent of the Agenda 2063 of the African Union.

A review of achievements under Akinwummi led AfDB include, 16 million Africans connected to electricity, 70 million people with improved agricultural technologies to ensure food security, 9 million people access to finance from private sector companies, provided 55 million people opportunity to improve transportation and 31 million people with clean water and sanitation.

All, including his worst critics, agree that under Adesina’s watch, the African Development Bank has truly served Africa. The last five years have seen the Bank carry out highly impactful programs that have significantly accelerated the development of the continent.

Adesina’s efforts have not gone unnoticed. Several US universities who have honoured him includes Honorary Doctorate degrees from Franklin and Marshall College, Purdue University, Michigan State University, and University of Alberta, Canada, among many others in Africa.

He was named African of the Year by Forbes Africa, twice, in 2014 and 2019, respectively. He was named the African Person of the Year by the Africa Leadership Magazine, in an open and competitive poll across Africa, garnering 60perent of votes.

Adesina was awarded the globally prestigious Sunhak Peace Prize in 2019 for his global leadership on promoting global peace and good governance. He also donated his $500,000 laureate cash prize to establish the World Hunger Fighters Foundation, to advance his drive to end global hunger and develop the youth to become hunger fighters.

The Executive Committee of the Africa Union, consisting of all 55 African countries unanimously endorsed Adesina as the sole candidate for re-election for a second term as President.

Also, all 15 Heads of State of the Ecowas region unanimously endorsed him for re-election.

Recently, 14 former heads of state and government of Africa applauded his remarkable leadership at the Bank and endorsed him for re-election as President.

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Friday 17 July 2020

BUSINESS DAY

Harvard Business Review

MANAGEMENTDIGEST

Spotlight on emerging from the crisis: Learning from the future J. PETER SCOBLIC

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ow can we formulate strategy in the face of uncertainty? That’s the fundamental question leaders must ask as they prepare for the future.

And in the midst of a global pandemic, answering it has never felt more urgent.

Even before the COVID-19 crisis, rapid technological change, growing economic interdependence and mounting political instability had conspired to make the future increasingly murky. In response, a lot of organizations have had no choice but to focus on surviving immediate threats. But many business discussions still demand farsightedness. As they try to manage their way through the crisis, leaders need a way to link current moves to future outcomes.

“Strategic foresight” — the history, theory and practice of which I have spent years researching — offers a way forward. Its aim is not to predict the future but rather to make it possible to imagine multiple futures in creative ways that heighten our ability to sense, shape and adapt to what happens in the years ahead.

The most recognizable tool of strategic foresight is scenario planning. It involves several stages: identifying forces that will shape future market and operating conditions; exploring how those drivers may interact; imagining a variety of plausible futures; revising mental models of the present on the basis of those futures; and then using those new models to devise strategies that prepare organizations for whatever the future actually brings.

Today the use of scenarios is widespread. But all too often, organizations conduct just a single exercise. If companies want to make effective strategy in the face of uncertainty, they need to set up a process of constant exploration. What’s necessary, in short, is the institutionalization of imagination.

The prospect of organizing a scenario exercise can intimidate the uninitiated. There are distinct benefits to enlisting individuals or even large firms that specialize in scenarios to provide helpful direction.

However, regardless of who runs the process, managers

should follow these key guidelines: — INVITE THE RIGHT PEOPLE TO PARTICIPATE: One of the chief purposes of a scenario exercise is to challenge mental models of how the world works. To create the conditions for success, you’ll need to bring together participants who have significantly different organizational roles, points of view and personal experiences. You’ll also need people who represent the three powers necessary for any effective conversation about strategy: the power to perceive, the power to think and the power to act.

— IDENTIFY ASSUMPTIONS, DRIVERS AND UNCERTAINTIES: It’s important to articulate the assumptions in your current strategy and what future you expect will result from its implementation. Think of this scenario as your projected scenario — but recognize that it’s just one of many possible futures, and focus on determining which assumptions it would be helpful to revisit. Rafael Ramirez, who leads the Oxford Scenarios Program, advises that in doing this you disaggregate “transactional actors,” which you can influence or control, from “environmental forces,” which you cannot. How might those forces combine to create different possible futures?

— IMAGINE PLAUSIBLE, BUT DRAMATICALLY DIFFERENT, FUTURES: This can be the most difficult part of the exercise, particularly for www.businessday.ng

those used to more analytical modes of thinking. Push yourself to imagine what the future will look like in five, 10 or even 20 years — without simply extrapolating from trends in the present. This takes a high degree of creativity and also requires the judgment to distinguish a scenario that pushes the envelope of plausibility from one that tears it. Good facilitators can both prime the imagination and maintain the guardrails of reality.

— INHABIT THOSE FUTURES: Scenario planning is most effective when it’s an immersive experience. Creating “artifacts from the future,” such as fictional newspaper articles or even video clips, often helps challenge existing mental models. It’s also a good idea to disconnect participants from the present, so if you use workshops for scenario planning, hold them offsite and discourage the use of phones.

— ISOLATE STRATEGIES THAT WILL BE USEFUL ACROSS MULTIPLE POSSIBLE FUTURES: Form teams to inhabit each of your farfuture worlds, and give them this challenge: What should we be doing now that would enable us to operate better in that particular future? Create an atmosphere in which even junior participants can put forward ideas without hesitation. Once the groups develop strategies for their worlds, bring them together to compare notes. Look for commonalities, single them out,

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and identify plans and investments that will make sense across a range of futures.

— IMPLEMENT THOSE STRATEGIES: Using scenario planning to devise strategies isn’t resource-intensive, but implementing them requires commitment. To couple foresight with action, leaders should set up a formal system in which managers have to explain explicitly how their plans will advance the firm’s new strategies. Realistically, foresight will not drive every initiative, but scenario exercises can still be valuable in several ways. First, they can provide participants with a common language to talk about the future. Second, they can build support for an idea within an organization so that when the need for implementation becomes clear, it can move faster. Finally, they can enable participants to act at the unit level, even if the organization as a whole fails to link the present and future as tightly as it should.

— INGRAIN THE PROCESS: In the long run you’ll reap the greatest value from scenario exercises by establishing an “iterative cycle” — that is, a process that continually orients your organization toward the future while keeping an eye on the present, and vice versa. Moving in a loop between the present and multiple imagined futures helps you to adjust and update your strategies continually.

This last point is critical.

As the current pandemic has @Businessdayng

made clear, needs and assumptions can change quickly and unpredictably. Preparing for the future demands constant reappraisal. Strategic foresight — the capacity to sense, shape and adapt to what happens — requires iterative exploration. Only by institutionalizing the imaginative process can organizations establish a continual give-and-take between the present and the future. Used dynamically in this way, scenario planning and other tools of strategic foresight allow us to map ever-shifting territory.

Of course, strategic foresight also enables us to identify opportunities and amplifies our ability to seize them.

Moments of uncertainty hold great entrepreneurial potential. It takes strength to stand up against the tyranny of the present and invest in imagination. Strategic foresight makes both possible — and offers leaders a chance for legacy.

After all, they will be judged not only by what they do today but by how well they chart a course toward tomorrow.

J. Peter Scoblic is a co-founder and principal of Event Horizon Strategies, a foresight consultancy, and a senior fellow in the International Security Program at New America.

He has just completed a doctorate at Harvard Business School, where his work on strategy and uncertainty won the Wyss Award for Excellence in Doctoral Research.

Friday 17 July 2020

BUSINESS DAY

19

INTERVIEW Companies are looking for best media agencies as partners to navigate rough times - Adisa Lanre Adisa is the Group CEO /Chief Creative Officer of Noah’s Ark Group, a creative agency that has won many awards and the recent being Agency of the Year and Digital Agency of the Year at the prestigious 2020 Pitcher’s Award held in Lagos. In this interview, he spoke on a number of issues including the impact of Covid-19 and how media agencies will navigate the times. He simply said Covid-19 has hit marketing communication industry badly. Excerpts.

N

Lanre Adisa

cord that we won Nigeria’s first gold statuette at an international ad festival (that was the African Cristals) in 2016.

We also won two national diplomas at the Cannes Lions Festival in 2013.

That was the closest to Nigeria winning a Cannes Lion. We emerged African Agency of the Year at the African Cristals in 2018. We were top of the table with Grand Prix awards at the LAIF (Lagos Advertising & Ideas Festival) Awards in 2015 and 2017. We were also Agency of the Year at last year’s Pitcher Awards.

Would you therefore say that Nigerian agencies are inching closer to major Cannes awards?

One can say that, if you look at the international footprints of Nigerian agencies and creative leaders who have been enjoying recognition as members of juries of international ad festivals of late, including the Cannes Lions. Like I said earlier, we were the first to win the Cannes national diploma (merit award) for work we did for Indomie. Nigerian agencies have been winning international awards on the continent and beyond. From that point of view, it’s safe to say that we are not so far from achieving that feat as an industry. We just have to keep pushing and knocking on that door.

Perhaps, in addition to LAIF Awards, what other factors would you attribute to some feats achieved by some Nigerian agencies in the past? www.businessday.ng

For starters, it is commendable that we have been able to keep LAIF Awards going for almost fifteen years. It has engendered a new spirit of competition and interest in the local industry. The other good thing about the industry today is the fact that this new generation is lucky when it comes to knowledge. The world is a smaller place than ever. A few of our young people have been privileged to attend some of the best ad schools in the world. On the local front, they have also been able to break into the industry after taking programmes in the few available ad schools. The emergence of Digital has also changed a whole lot of things.

So today, our industry is a lot more world-conscious than ever. And that to me is a good development as regards what we have accomplished and where we are headed.

To what level and degree would you say the COVID- 19 affected Nigeria’s marketing communications business?

I do not have the statistics, but I am very sure COVID-19 has hit our industry badly. We do not operate in isolation of the macro economy both globally and locally. As economies slide back into recession, the first reaction of most brands is to cut down advertising. A time like this calls for the reordering of priorities even for brands but it doesn’t call for brands to break the conversation with their consumers or slow it down budgets. A

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study by the IPA in the UK shows that brands that continue to communicate during a crisis perform eight times better than those who don’t. As we speak, all of us are having to deal with the consequences of COVID-19 in the best way we can.

What advice therefore do you have for the industry on how to cope with the challenges of this peculiar time of COVID- 19?

It is important that at a time like this we show enough empathy and responsiveness to our clients and teams. Like I said earlier, clients will be looking for the best partners to help them navigate these rough times.

The onus is on each agency to prove that they have what it takes. Agencies may also want to start looking for opportunities to pivot into new territories that can take advantage of untapped skills and capabilities within their teams. Being able to keep and motivate the team is very important now that almost everyone is working from home.

The notion of the “New Normal” means a lot of things have to change vis-à-vis how they are being done previously, what are some of the changes you envisage in the marketing communications industry?

Yes, today it’s all about the “New Normal”. Essentially, what we have experienced is the emergence of a new way of working that perhaps would have taken three to four years to happen being forced on us in two to three weeks. Even when the pandemic recedes, I don’t see things going completely back to how they used to be. The pandemic has taught us some good lessons in working with more flexibility. In the world

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A time like this calls for the reordering of priorities even for brands but it doesn’t call for brands to break the conversation with their consumers or slow it down budgets

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The rampaging COVID- 19 pandemic has laid prostrate a number of businesses while many organisations and institutions have been adversely affected. How has Noah’s Ark been coping? o one foresaw anything of this nature or magnitude coming into 2020. When the sense of what was about to unravel finally hit us, we had to make plans to ensure we could continue providing services to our clients while keeping our people safe. As a matter of fact, we ran a survey and published a study on the impact of COVID-19 on businesses in Nigeria. Fortunately, we had the requisite infrastructure for remote working, even though we never envisaged using it at this scale across our Group. It was a little discomforting at the beginning, but in no time we all got used to the new life- our clients and our team. Beyond work, we’ve also been able to move some of our social engagements online to fill the void social distancing may have created. So far, we are making the most of it.

When other agencies are struggling amidst the crisis, your agency was crowned Agency of the Year and Digital Agency of the Year at the prestigious 2020 Pitcher’s Award held in Lagos, what does this feat tell about your agency?

The truth is, even in the face of war, because that’s the impact of the pandemic on the world as we used to know it, life must go on. Consumers will still have demands that clients will need to fulfil and that will call for the clients to seek out the best partners to help them maximise their lean resources. As regards the Pitcher Awards, I really would like to commend the courage of the organisers.

They had the choice of cancelling the festival, but they pushed on to give voice to creativity. And that is a very strong message. This is the time that we need to celebrate creativity. The world needs creativity now more than any other time. We are very delighted about the wins. It further validates our brand essence. The significance of this win is the fact that this was not just a local win. It had entries from across the continent- from Senegal to Kenya, to South Africa among many more. In other words, this is Digital Agency and Advertising Agency of the Year for Africa as judged by the Pitcher Awards. That is in line with our vision of being in the league of the most successful brand builders out of Africa.

What other awards have you won the in the past?

In terms of highlights, it’s on re-

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that will emerge after this era, location will not be an issue as far as talent is concerned. We should prepare for a lot of disruption as regards business models in our industry.

It has also brought about an avalanche of online knowledge sharing on various video conferencing platforms. The world has adjusted so fast.

AAAN just concluded its 47th AGM and congress online and also elected a new Exco to boot- all online. This is the new way. Some of these new realities will not leave with COVID-19.

Are you comfortable the way Nigerian people and government are handling COVID- 19 issue?

Overall, things have not been as terrible as it’s been projected in some quarters. I think some government agencies have been exemplary and some states have risen to the occasion. However, we could have done much better on the whole. We should have closed our borders earlier than we did. I also think government could have done better with sensitization.

The biggest issue we have today is the lackadaisical attitude of the man on the street as regards COVID-19.

In some states, when you wear a face mask, they will mark you out as a visitor, because people are so cynical about the reality of this virus. This is where government needs our industry, but I’m not sure how much of our involvement has been sought.

What advice would like to share with the government in moving the nation forward in this critical period in our national development?

Nations that have done well in managing COVID-19 achieved that through empathetic leadership. For a long time at the beginning of this pandemic, we didn’t have a good sense of leadership being in full control of things unlike what was obtainable in other countries, even some of our African sister countries.

In New Zealand for instance, the Prime Minister at some point was on a live Facebook Q & A in her night wear after putting her baby to bed. All of these actions help people believe that we are in this together.

But then it’s never too late. People generally feel like they have bigger problems than COVID-19; problems like hunger. So they don’t really care.

Government owes it a duty to come up with initiatives that will strive to solve some of those pecuniary problems with more transparency while also sensitizing people on the dangers inherent in our attitude to COVID-19.

One key function of government is to build and sustain people’s hope in the nation today and tomorrow. We need that now, not just in talk, but through meaningful action.

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Friday 17 July 2020

BUSINESS DAY

LEADINGWOMAN

BUKKY GEORGE, on scaling HealthPlus Pharmacy, surviving COVID-19 and turning 50 KEMI AJUMOBI Bukky George is the Founder & CEO of HealthPlus Limited, Nigeria’s first integrative pharmacy, the fastest growing pharmacy & beauty chain in West Africa. She is well-regarded for her leadership in entrepreneurship, retail and the pharmaceutical industry. She has over 28 years of experience in the health & beauty industry. She is a registered pharmacist with the Pharmacists Council of Nigeria, the General Pharmaceutical Council UK, a member of the Royal Pharmaceutical Society of Great Britain and a Fellow of the Pharmaceutical Society of Nigeria. She holds an MBA from the University of Lagos. She is an alumnus of the Lagos Business School (Owner Manager Program), Harvard Business School (Owner/ President Management Program) and IE Business School (Women On Boards – Africa Program). Bukky recently became the first Nigerian female Endeavor Entrepreneur.

Over the past 21 years, the company she founded has grown to over 90 retail outlets, with a central distribution centre and employs over 850 associates. HealthPlus is a multi-award winner for excellence and community service. Bukky aspires for HealthPlus to be Africa’s #1 for pharmacy, wellness and beauty.

Her strengths include a strong academic foundation, a passion for excellence and a determination to raise the standards in healthcare and retail. She is devoted to continuous learning. Bukky provides strategic leadership for the HealthPlus Group.

Bukky was an executive council member of and is an active mentor for Women in Management, Business & Public Service (WIMBIZ). She is a multi-award winner for excellence in entrepreneurship, healthcare and community service.

Early years and influence on life and work am a product of my childhood and upbr inging.

Early years were living i n L aw a n s o n w i t h my mother and two sisters.

Growing up was tough but we were happy, resourceful and learnt to use our hands for sewing, cooking, baking, knitting and crocheting and so on. I was curious, always asking questions and developed a knack for solving problems. I’m a product of my passion for learning. I learn from formal and informal sources of information. I learn from the young and old. Learning is continuous. I’m a product of my quest for excellence. I don’t accept the status quo and demand high standards.

Finally and most importantly, I am a product of the grace and the favour of God. My story can never be told without the profound impact of God on my life and work.

I

Starting HealthPlus Pharmacy HealthPlus started operations 21 years ago in response to the limited access of Nigerians to safe medicines. There were and still are numerous unlicensed drugstores operating alongside relatively few licensed pharmacies. The Pharma supply chain is infiltrated with unlicensed operators and substandard/ falsified medicines. Among licensed pharma-retail operators, standards and service quality vary significantly. Reliable access to safe, affordable, highquality and effective medicines, for most people in Nigeria is simply not something that can be taken for granted.

Challenges We have raised the bar in pharmacy practice. We have set new standards by adopting global best practices. We have groomed a new generation of pharmacy professionals who are committed to high standards, the ethics of the profession and shun mediocrity.

We are community heroes, committed to improving the health of the people in the communities we serve. Currently, we have over 90 retail outlets, employ 850 employees and operate in 11 states in Nigeria. We have been recognised through multiple awards. We are contributing our quota to the achievement of universal healthcare coverage and to increasing the life expectancy of Nigerians. Our major challenge is appropriate funding to scale.

Today, many entrepreneurs are faced with expensive and stifling financing from financial institutions. Healthcare businesses in particular need patient capital.

Government must intervene with an appropriately priced Health Fund like we have with Agric businesses.

HealthPlus Pharmacy has been around for over 20 years, how have you survived and thrived?

Well first, our business addresses needs and gaps in the market. Our brand fulfills its promises to our customers. Though a pharmacy, we provide unique offerings which include our niche in natural health, wide range of medicines and healthcare products, the integrity of our supply chain is guaranteed as no substandard or falsified medicines can be found in our stores. Effective management and people are key to the growth of any organisation.

We have worked hard to build www.businessday.ng

a one-of-a-kind management team. We pay great attention to the quality of people we employ at HealthPlus & CasaBella. We have standardised and efficient processes. We give extraordinary customer service. We are committed to continuous improvement. Finally, the role of funding is very important and critical.

Adequate funding I might add.

We have accessed funding over the years, hence our growth but this remains a challenge as these funding are not adequate nor appropriately priced especially for a healthcare business.

It is common knowledge that you and 10 members of your family survived COVID-19 infection, how was the experience?

I did articulate this in great detail in an article I had hoped will remain confidential but this got labeled with my identity without my consent and it did go viral.

With hindsight, it’s all good. For those who did not believe that COVID-19 exits should now appreciate that this virus is for real and can be devastating. Yes, 11 of us tested positive to COVID-19 in April. We were isolated at the Infectious Disease Hospital Yaba.

We were anxious and afraid but also consoled by the recovery rates in Nigeria which are better than the rates in many developed countries. We received the care that was made available during our admission but we also

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helped ourselves swiftly! One of my mantras is the application of “100% faith and 100% works” in all I do. To the glory of God, with gratitude to the medical corp at IDH and our fellow ward mates who supported with tips and prayers, we tested negative twice within seven days and were discharged thereafter.

The role of personal research in your healing process The self-help I referred to came from several sources including a nurse who was on admission with us. Remember you can and should google everything. We got great tips from WhatsApp groups too. One of my children researched tips from survivors worldwide and that particular research revealed that the virus does not thrive in heat and alkaline conditions. So, we ate and drank alkaline meals and beverages. In addition, steam inhalation, hot fluids and chest physiotherapy were key to breaking down mucus in the lungs for the couple of us that had respiratory symptoms.

Your first-hand experience of the lack of amenities at your isolation centre Nigeria is a developing country and many facets of development are sub-par; from healthcare, education, power and other infrastructure. It is what it is! The sub-optimal state of healthcare @Businessdayng

in Nigeria is why we always pray for good health and when people fall ill, they manage what is available or travel out if they can afford it. The pandemic has however locked all of us in, so “the rich are also crying’’. All of us can see clearly the state of our hospitals, the grossly inadequate manpower, equipment and standards.

This time though, we are all in it together. I went to the isolation centre with little expectations.

I must say that I was pleasantly surprised. The wards were clean, PPE was provided. Food was ok but water was inadequate; we augmented these. We had to buy bed sheets, blankets, pillow cases and others. Electricity was available. Oxygen was provided when required. I was informed there was a ventilator in the hospital.

Not sure how many though. I am grateful we did not need one! One family member was admitted at LUTH Isolation centre and I was told first hand there was no ventilator at the isolation centre.

This was in April. That’s not good enough. Maybe the situation has changed.

Deaths per 1 million population is 4 in Nigeria and 660 in the UK. UK ranks 4th in the world while Nigeria is in the 141st position. My suspicion is that our Ministry of Health and NCDC must have brainstormed on the best approach to handle COVID-19, set up treatment protocols and were willing to be flexible to try medicines that had some evidence of success. I believe developed countries might have been rigid in their approach hence higher death rates. I stand to be corrected. You will agree with me that we are doing very well in Nigeria.

Here is my conclusion, I no longer sit and bellyache about what is not working in Nigeria. I am focused on fixing my sphere of influence. I encourage everyone to do same. Pockets of excellence all over the country and across industries will eventually create several oases of excellence.

Turning 50 To me, every new age is a significant milestone and I always celebrate. Turning 50, my golden jubilee, is a major milestone, a real big deal especially following my recent experience. I am grateful to God for life, family, friends, joy, provision, the good people of HealthPlus & CasaBella and the future. The biblical significance of jubilee means liberation, consolation and rest. I receive these as I step into my new season

Read more about Bukky George’s inspiring story on our website www.businessday.ng as she graces our Women’s Hub cover for this week. You are just a click away!

Friday 17 July 2020

BUSINESS DAY

21

AGRIBUSINESSINSIGHT Market Insights

Analysis

Commentaries

Experts/Industry Views

Commodities watch

Policy Reviews

Send in Commentaries to caleb.ojewale@businessdayonline.com

Farmers’ outputs surge as VCDP success shows model for value chain development CALEB OJEWALE Twiiter: @calebtinolu

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or seven years, Mimi Hwande cultivated rice on one hectare of land in Guma Local Government Area of Benue state, a period during which she says, “I could not boast of anything.” When pests destroyed her rice farm, like many farmers she knew, this was believed to be “a traditional problem”. When a particular pest attacked the crops, she said the leaves turned reddish as though hot water was poured on it.

Like her, the flabbergasted farmers would have thought some spirits visited their farms at night to empty jars of molten lava. Today, she has become enlightened to know this is in fact, a scientific problem that she now addresses with pesticides and not spiritual warfare.

“With the aid of Olam and IFAD, we are supplied with chemicals to ensure the pest does not finish all our rice,” said Hwande in a phone interview. In 2017, she joined the Value Chain Development Programme (VCDP) by the International Fund for Agricultural Development (IFAD) and Olam Nigeria where her group of 25 farmers cultivate 100 hectares at 4 hectares per farmer.

When this reporter asked what her farm yield was before joining the VCDP, she laughed hysterically, and it seemed an unintended joke may have been said.

“Highest, four!” she repeated twice, explaining all she got from one hectare of rice cultivation was four bags of paddy rice before joining the programme. As at last year, she got 35 bags per hectare at harvest, a growth of almost ninefold. From not being able to boast of anything as she puts it, Hwande has built a modest 3-bedroom house where her family lives.

She is one of 18,646 farmers who have benefitted from the Olam partnership with IFAD/ VCDP in Benue and Taraba states since 2015. Countrywide, Olam says it now engages 33,514 smallholder farmers in its rice farming initiatives, growing exponentially from 475 farmers five years ago.

The VCDP programme itself kicked off in Nigeria in 2014 with a focus on holistic and demanddriven approach to addressing constraints along the cassava and rice value chains. It does so through an inclusive strategy, strengthening the capacity of actors along the chain – including producers and processors – as well as public and private institutions, service providers, policy-makers and regulators, according to information on the

IFAD website.

“The VCDP is what we consider an extremely successful programme in terms of partnerships between IFAD and the Federal Government of Nigeria and also leading private sector organisations like Olam,” said Nadine Gbossa, country representative, IFAD in a zoom interview. The programme, according to her was initiated because of food security issues and the need to find opportunities to generate wealth for smallholder farmers in Nigeria.

Nigeria, she said, has a huge food market with a population of about 200 million people with smallholder farmers contributing about 90 percent of domestic food. However, there is a huge gap filled by imports, necessitating the programme as a way of supporting farmers to “take advantage of this food market and produce for Nigeria so that they can come out of poverty”.

The IFAD-VCDP partnership with Olam has focused on rice, a widely consumed staple in Nigeria, which five years ago was described as the country’s highest food import.

Reji George, vice president for Farming Initiatives at Olam International Limited, noted that the programme started, which started in Benue with 475 farmers in 2015, has grown to over 33,000 farmers “When we saw that the programme was becoming successful”. The programme has now been replicated in seven states, with varying levels of partnership with different organisations.

This programme, which serves as an out-grower scheme for the Olam rice division, has seen paddy supplies from Benue and Taraba alone, supplying 50 percent of the raw material input www.businessday.ng

at the company’s milling facility, attached to the commercial farm in Nasarawa State.

“This programme has helped us to meet up with the requirement of paddy for our mill in Rukubi,” said George. “It is a high quality paddy, not just volume”.

He noted that the company has another mill in Kano State and there are plans to supply it with paddy input from other states as the programme continues to expand and attract more farmers.

Ruth Kyase was farming on half hectare before joining the VCDP in 2016, and she was getting two or three bags at harvest. She now cultivates three hectares where she gets up to 40 bags per hectare, a growth of more than 12 folds.

“Before, I was just farming because I liked farming,” said Kyase, when asked what led to the change in output. She has now been enlightened while participating on the programme, on the need to take farming as a business, and taught farming methods that guaranteed better outcomes. For instance, she

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used to randomly dig the soil and spread the seeds, but now, she prepares nursery beds where the seeds are first germinated before transplanting.

As little as it may sound, “this has helped a lot,” said Kyase who holds an NCE from the College of Education in Oju, Benue state. She was also not using fertiliser before, but now has access not only to fertiliser but also knowledge of how to use it on account of her participation in the programme.

Her living conditions and that of her family have improved, and in a phone interview, said she is now able to assist her husband in paying bills, especially school fees for their children.

“When you buy fertiliser from the market on your own, you are not sure if they are adulterated,” said Felicia Gbuuka who participated in the programme and recognised last year as one of the top-female paddy suppliers.

Participating in the programme as attested to by other farmers, meant she not only got fertilisers, but also assured of the quality, a @Businessdayng

concern she shares with millions of farmers across the country.

“As you are farming you need to spend, but with the support received (from the VCDP), you discover that your level of expenditure is less and the inputs help crops to produce well,” she said.

The VCDP provides inputs such as seeds, fertilisers, and (selective) herbicides. More importantly, at harvest, there is a ready offtaker represented by Olam, which procures rice from the farmers for milling at the company’s facilities.

As highlighted by Gbossa, data at IFAD’s disposal shows that smallholder farmers have increased their income by 79 percent, and they market about 90 percent of their production.

This, she says is “very interesting because before, they were mainly producing for subsistence”. The fact that they are now marketing about 90 percent of their production courtesy of enterprises like Olam, means there has been an impact on their incomes. “When you market 90 percent of your produce, it means that you are generating a significant income and a profit,” she said.

When the average farmer wakes up to start a new planting season, he/she is confronted with a myriad of challenges, starting from the inputs to actual farming, and the uncertainty of an offtaker at harvest. “How do I get the seeds, fertilizer, or cash to farm,” many would ask? In all of this, a string of more burning questions silently repeat in their minds, “who will buy from you”, “will you be able to sell off everything”, “what if there’s a glut”. Neglecting the waves of uncertainty, the farmer goes through months of tilling the soil to ensure food is produced; a modest contribution towards ensuring food security in the country.

“When you’re producing, you are anxious on who will buy your product,” said Martha Zemehe, a law graduate of Kogi State University and a former bank staff, who emerged as Olam’s best female supplier of paddy rice in 2019 during a farmer’s day event in Benue. With her experience participating in the Value Chain Development Programme (VCDP), “the buyer is already there,” she said.

With the COVID-19 pandemic, which has slowed economic activity across the world, George expressed the view that it is a time that requires all stakeholders to give more importance to food security. “There is no better time to have these (kinds of) food security initiatives across the globe.

This is one of the programmes that is contributing significantly to that,” he said.

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Friday 17 July 2020

BUSINESS DAY

HEALTH BUSINESS&LIFE

Nigeria’s contraceptive supply chain obstructed

by COVID-19 pandemic - Experts …Call for prioritisation of family planning

Why you should travel with health kits Executive Travel Health

ANTHONIA OBOKOH

E

xperts in the health sector have said that the COVID-19 pandemic have obstructed the country’s contraceptive supply chain causing shortages.

They called on government at all levels to prioritise family planning to reduce mortality resulting from unwanted pregnancies.

The experts say the potential increase in unintended pregnancies is owing to the diverted attention to containing the spread of the virus, noting that there is a need to adapt strategies for meeting contraceptive needs across the country.

They made the submission recently during an online training workshop for Nigeria Health Reporters and Features Writers, organized by Rotary Action Group for Reproductive, Maternal, and Child Health (RMCH) in partnership with the Federal Ministry of Health and the Society of Gynaecology and Obstetrics of Nigeria.

According to available statistics, there are about 180–200 million pregnancies recorded globally every year, with 303,000 maternal deaths recorded per minute, with Nigeria contributing about 58,000 (19 percent) of the global death.

Meanwhile, UNFPA estimates that 47 million women may lose access to modern contraception if the situation continues for 6 months and could lead to nearly 7 million unintended pregnancies.

Josiah Mutihir, Obstetrics and Gynecology with Univer-

Adeniyi Bukola Q-life Family Clinic

lifeadvisoryservices@outlook.com

sity of Jos said contraceptive prevalence rate is very low in Nigeria with the huge number of about 200 million population noting COVID-19 pandemic has exposed the gross inadequacies of the Nigeria’s health infrastructure and restriction of movement has adversely affected the contraceptive supply chain.

Mutihir said that high rates of contraceptive discontinuation implies that family planning has little effect on total fertility rates reduction and could only bring about a high unmet need for contraception.

“Unmet need for family planning in Nigeria is high with about 32 percent, especially among adolescents, urban slums dwellers, refugees, women in the postpartum period who are sexually active during the covid- 19 pandemic,” he said.

Anas-Kolo, in her presentation of the Director and Division Head Reproductive Health, Federal Ministry of Health, Kayode Afolabi pointed that, while there was an increase in the proportion of facilities that provided family planning and Long-Acting Reversible Contraception (LARC) services during the start of year 2020, the

coronavirus pandemic, have caused a drop of 14 percent.

“The decreasing 2020 numbers could be attributed to several factors including; patients’ reluctance to visit health facilities during the COVID-19 pandemic or the challenges with full commodity supply experienced across multiple states also owing to the pandemic delaying commodity replenishment at the state stores,” she said.

However, as part of Family Planning 2020 commitment, Nigeria has set a goal to increase the modern contraceptive prevalence rate (mCPR) to 27percent of all women— though it is still falling short at 12percent. Without full funding of the government’s annual commitment of $4 million (1.4 billion NGN), there could be significant shortage of contraceptives in 2019/2020.

Proffering solution, Oluwarotimi Akinola , president.

Society of Gynaecology and Obstetrics of Nigeria (SOGON), said an achievement of 27 percent Modern Contraceptive Prevalence rate (mCPR) in Nigeria will avert 578,250 unsafe abortions, 1.5million unintended pregnancies and save about 90,000 women lives.

Nigeria should embrace delivering quality healthcare services to undeserved villages - PDI MD ANTHONIA OBOKOH

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n a bid to resuscitate healthcare service delivery for the improvement of Nigerian, John Iguve, managing director, Pre Diagnosis International (PDI) has advised that Nigeria’s dwindling economic fortunes which impacts availability of funds for developmental efforts dictates that the best model the country needs to embrace is one that can deliver quality healthcare services to the remotest, undeserved villages across the length and breadth of Nigeria by leveraging technology to maximize the scarce human and operational resources for health through effective and efficient deployment.

Iguve made this known as a follow up to the recently announced plan by the Private Sector Health Alliance of Nigeria (PSHAN) to build new PHCs across the 774 LGAs of the country.

PSHAN recently announced that, under its Adopt-a-Health-Facility Programme (ADHFP), it had

designed a plan that “entails delivering one Primary Healthcare Centre (PHC) in each of Nigeria’s 774 Local Government Areas (LGAs) at global standards”.

While lauding PSHAN for coming out to help, Iguve said the focus of building PHCs, in the light of the country’s past experience, could not offer an innovative solution to the existing challenges of providing efficient healthcare services, especially in rural, hard-toreach areas.

According to him, “modern day public healthcare is efficient only when health services can reach the hard to reach areas, when location, economic and social status do not dictate access to quality health services, when the have and have not have equal access to basic healthcare services and only when all people and communities can use the promotive, preventive, curative and rehabilitative health services they need in sufficient quantity without exposing them to financial hardship as declared by the World Health www.businessday.ng

Organisation”.

He declared that Nigeria is in a race against time due to various global forecasts on the exponential nature of the country’s population growth as the country’s population is expected to hit the half a billion mark in the next thirty years.

“For us at Pre Diagnosis, we have achieved remarkable progress in our burning desire to harness modern technology to effectively distribute quality total healthcare to two million vulnerable Nigerians annually, in a costeffective way that maximizes the scarce human resources.

“At the center of this breakthrough is an ultramodern technological platform known as the PDI TeleHealth HUB that was designed to provide a holistic solution to the identified gaps in the country’s healthcare space, particularly in the underserved areas,” he said.

He further said that the hub is connected to the expansive PDI telehealth central control room where doctors are available 24/7 to micromanage these hubs.

R

egardless of the destination, international travellers should assemble and carry a travel health kit.

Travellers should tailor the contents to their specific needs, the type and length of travel, and their destination(s). Kits can be assembled at home or purchased at a travel clinic.

Travelling with travel health kits ensure the traveller has the needed medications to manage pre-existing medical conditions, treat any exacerbations of these conditions, prevent illness and injury related to travelling. It also takes care of minor health problems as they occur.

By bringing medications from home, travellers can avoid having to purchase them at their destination.

Traveling with medications: International travellers should carry all medications in their original containers with clear labels that easily identify the contents. Patient name and dosing regimen information should be included. Although travellers may prefer packing their medications into small bags, pillboxes, or daily-dose containers, officials at ports of entry may require a formal and proper identification of all medications.

Travellers should carry copies of all prescriptions, including their generic names, preferably translated into the local language of the destination. For controlled substances and injectable medications, travellers should carry a note on letterhead stationery from the prescribing clinician or travel clinic.

Translating the letter into the local language at the destination and attaching this translation to the original document may prove helpful if the document is needed during the trip.

Some countries do not permit certain medications. If there is a question about these restrictions, particularly regarding controlled substances, travellers should contact the embassy or consulate of the destination country.

A travel health kit is useful only when easily accessible.

It should always be carried with the traveller (such as in a carry-on bag), although sharp objects (like scissors and fine splinter tweezers) must remain in checked luggage.

Travellers should make sure that any liquid or gel-based items packed in the carry-on bags do not exceed size limits.

Exceptions are made for certain medical reasons; check the Transportation Security Administration for outbound and inbound and the embassy or consulate of the destination country for their restrictions.

Supplies for pre-existing medical conditions: Travellers with pre-existing medical conditions should carry enough medication for the duration of their trip and an extra supply in case the trip extends for any reason. If additional supplies or medications are needed to manage exacerbations of existing medical conditions, these should be carried as well.

People with pre-existing conditions, such as diabetes or allergies, should consider wearing an alert bracelet, making sure this information (in English and preferably translated into the local language of the destination) is also on a card in their wallet and with their other travel documents.

General travel health kit supplies: The following is a list of items that travellers should consider when assembling a basic travel health kit.

Prescription Medications and Supplies: Medications taken on a regular basis at home, antibiotics for self-treatment of moderate to severe diarrhoea, medication to prevent malaria, if needed, medication to prevent or treat altitude illness, if needed, prescription glasses/ contact lenses (consider packing an extra pair of each, in case lenses are damaged), Epinephrine auto-injectors (such as an EpiPen 2-Pak), especially if history of severe allergic reaction or anaphylaxis; smallerdose packages are available for children, Diabetes testing

supplies and insulin, needles or syringes, if needed for injectable medication. Needles and syringes can be difficult to purchase in some locations, so take more than what is needed for the length of the trip. These items will require a letter from the prescribing clinician on letterhead stationery, Medical alert bracelet or necklace.

Over-the-Counter Medications: Treatment for pain or fever (one or more of the following, or an alternative): Acetaminophen, Aspirin, Ibuprofen. Treatment for stomach upset or diarrhea such as loperamide (Imodium) or bismuth subsalicylate (PeptoBismol), Packets of oral rehydration salts for dehydration, Mild laxative, Antacid, Treatment for mild upper respiratory tract conditions. Such as Antihistamine, Decongestant, Cough suppressant or expectorant, Cough drops. Anti–motion sickness medication, Mild sedative or sleep aid, Saline eye drops, Saline nose drops or spray.

Basic First Aid Items: Disposable latex-free gloves (≥2 pairs), Adhesive bandages, multiple sizes, Gauze, Adhesive tape, Antiseptic wound cleanser, Cotton swabs, Antifungal and antibacterial spray or creams,1% hydrocortisone cream, Anti-itch gel or cream for insect bites and stings, Moleskin or molefoam for blister prevention and treatment, Digital thermometer, Tweezers, Scissors, Safety pins, Elastic/compression bandage wrap for sprains and strains, Triangular bandage to wrap injuries and to make an arm or shoulder sling. If traveling by air, travellers should pack these sharp items in checked baggage, since airport or airline security may confiscate them if packed in carry-on bags. Small bandage scissors with rounded tips may be available for purchase in certain stores or online. For travel in remote areas, consider a commercial suture kit and first aid quick reference card.

Note: The rest of this article continues in the online edition of Business Day @https:// businessdayonline.com/

Adeniyi Bukola, Consultant Family Physician and Travel Medicine Physician Q –Life Family Clinic qlifeadvisory@outlook.com.

Indomie Fan Club engages kids with ‘Team Yourself Up’ competition season 5 ANTHONIA OBOKOH

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ndomie Fan Club (IFC), Nigeria’s largest children based fan club, has adopted online platforms to receive entries for the scintillating climax of its fun and exciting nationwide competition - ‘Team Yourself Up’ competition. This edition of the competition which is it the fifth instalment is tagged Don’t Trash, Create!

The competition, which is one of the many ways through which the Indomie brand engages thousands of kids, provides a platform for them to express their creative talents and abilities. The competition

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also provides participating kids an opportunity to win a wide range of fantastic prizes.

Children taking part are required to team up with any adult in their household to create something unique using empty Indomie wrappers, cartons or a combination of both. They are to then send in the picture or video through provided online channels with their name, age, class and school to the IFC. Speaking on the competition, Tope Ashiwaju Group Head, Public Relations/Events Manager, Dufil Prima Foods Plc, stated that the brand through the ‘Team Yourself Up’ competition is leveraging the restrictions in @Businessdayng

movement to create a bonding and engaging experience between children and their loved ones.

According to him, “It is part of our responsibilities to ensure that during this out of school period, our children are engaged in activities that will aid their mental and physical development. The competition also provides a platform for these kids to express their creative abilities and have loads of fun doing so with their families.”

He further went on to say that the ‘best creative art’ category was introduced in the regional competitions so that more winners can emerge for this season.

Friday 17 July 2020

BUSINESS DAY

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entertainment Why creative industry stakeholders are against NBC’s new code Obinna Emelike

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n May 27, 2020, the National Broadcasting Commission (NBC), announced a new code, emanating from a recent amendment to the Sixth Edition of its code.

Since then, many stakeholders in the creative industry, especially the entertainment sector, have been criticizing the new code, describing some of its provisions as unenforceable.

Although some of the intendments of the new code are good, the stakeholders are concerned that the recent amendment in the code seeks to limit exclusivity, hence abridge the rights of copyright owners.

Expressing his displeasure on the development, Jason Njoku, chief executive officer, IrokoTV, stated that by seeking to limit exclusivity and rights, the new code amendments have the potential to discourage investment in the sector.

The Lagos Film Academy (LFA), also condemned the recent amendment for seeking to make content exclusivity illegal and compels right holders to sub-license content they have exclusive rights to, to other broadcasters, at a price enforced by the NBC.

A scene from The Bling Lagosians

The LFA lamented that the new code is problematic and would negatively impact the lives of Nigerian creatives and content producers who currently struggle with numerous challenges of production and distribution.

The same sentiment was expressed by Naz Onuzo, a movie producer, who said the NBC is wrong to seek to compel rights owners to sublicense their content.

“A lot of Nigerian content producers are concerned by the removal of the exclusivity clause because exclusivity deals are the most valuable and this bit reduces the value of the most desirable Nigerian content,” Onuzo said.

As well, Tony Okoroji, chairman, Copyright Society of Nigeria (COSON), noted that some of the provisions in the new broadcast code are good, some are unworkable while others are unconstitutional.

According to Okoroji, with the new code, the NBC is attempting to overreach itself by assuming powers of the National Assembly, hence he called for a revisit of the amendments.

“I understand the good intents of the new NBC Broadcast Code, but some of the provisions are unworkable, some even unconstitutional. The commission cannot overreach its powers

A Thousand Miles’ goes on set soon as promoters announce completion of script CHUKS OLUIGBO

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romoters of ‘A Thous a n d Mi l e s’, t h e soulful story of a naïve young girl and a group of desperate Africans bound for Europe, have announced the completion of the film script which brings to an end two years of preproduction stage for the movie.

With the completion and delivery of the script, Osita Oparaugo, CEO, Reddot Television Network and producer of the film, said the entire cast and crew are set to go

on locations for the making of the movie.

It hasn’t been an easy journey, Oparaugo said. It all began in 2018 and has seen the promoters sending researchers and informants to five African countries and engaging writers who put sleepless nights to translate the ideas into a ready-toshoot script.

‘A Thousand Miles’ is the story of a naïve young girl and a group of Africans desperately bound for Europe, all resolute on escaping the ineffectual systems and desolate conditions preva-

L-R: Osita Oparaugo, CEO, Reddot Television Network/producer, displaying the script of ‘A Thousand Miles’ after receiving it from Izu Ojukwu, director, who supervised the entire scriptwriting process. www.businessday.ng

lent in their societies, each burdened with a peculiar quest, but become trapped in a common cage of terror, enabled by their blind zeal for redemption.

“It’s 65 percent true-life stories told by different people who have embarked on this journey before, two of whom were imprisoned in Libya for over two years each, and one that successfully ended up in Italy and finally settled in the Netherlands,” Oparaugo said.

It is a film about the lies, hope, deceit and the dangers African youths go through trying to cross into Europe through the deserts and the Atlantic Ocean, he said.

“These two years of work will never have been easy without the help of the International Organisation for Migration in Lagos, Nigeria, The National Agency for the Prohibition of Trafficking in Persons (NAPTIP), which not only provided the needed insights during preproduction but participated at our October 2018 10km walk against irregular migration and human trafficking in Lagos Nigeria,” he said.

and assume the powers of the National Assembly. The code needs to be revisited,” he twitted on his Twitter handle, @Tonyokoroji.

According to Ruby Igwe, co-founder/ executive director, Lagos Film Academy, the code will make it difficult for operators and investors to derive maximum value from the value chain of content production or broadcast. “ Re a l g row t h i n t h e broadcast industry will come from opening up the content production, distribution and broadcasting space by removing unnecessary roadblocks”, Igwe said.

Considering the right of owners, many copyright

lawyers have argued that an intellectual property is exclusive to the owner and he can do as he wishes with it. They think it will abridge the rights of copyright owners, hence unconstitutional as earlier pointed out by Okoroji.

Citing the Nigerian Constitution, Nobert Chima, a lawyer, pointed out that Section 44 of the 1999 Constitution gives every Nigerian the right to own moveable properties or any interest in an immovable property and the rights over such properties cannot be compulsorily taken.

He argued that though intellectual property rights are intangible, they are moveable property rights. According to him, the provisions on exclusivity are inconsistent with Section 1 (3) of the Constitution, which states: “If any other law is inconsistent with the provisions of this constitution, this constitution shall prevail, and that other law shall to the extent of the inconsistency, be void.”

He also argued that Section 8 of the Copyright Act, Chapter C28 states that copyright in a broadcast shall be under the exclusive control of the owner.

“It is, therefore, safe to deduce that a broadcaster has the exclusive right to control his work and not even the government can, in anyway, control such”, Chima concluded.

However, while the stakeholders are still contesting the new code, the Lagos Film Academy has made some recommendations to the NBC for a win-win situation.

According to LFA, the Na t i o n a l B ro a d c a s t i n g Commission, should widen the scope of consultations around the amendment of the broadcasting code, invite, involve and include real industry players, listen to their genuine concerns and inspire a level playing field.

LFA is urging the NBC to be a neutral industry regulator. “NBC should lay the guidelines, stand away and let the players play. It should not be involved in fixing sub-licensing prices, as it should be a willing-buyer-towilling-seller agreement that doesn’t involve the regulatory body”, LFA said.

The Ruby Igwe-led academy is also asking NBC to formally ban or discourage sale of airtime in the Nigerian broadcast industry, noting further that broadcasters should live or die by their content creation and commissioning. “Without a market-driven motivation to invest in content, local broadcasters may simply sit back and collect rent, like the NTA of today does. This singular action will reinvigorate the local content space massively. SABC in South Africa is a worthy case study”, LFA concluded.

Trace brings new sound experience in partnership with LG Electronics

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race, the No.1 AfroUrban entertainment company with a mission to empower the youth, has officially added a new dimension to its scope as it unveiled a historic partnership with LG Electronics, a South Korean leading provider in consumer electronics and home entertainment; . The partnership is geared towards evolving a better way of listening to music using cutting edge technology.

Part of the partnership between LG and Trace will include; a 2-month bulk advertising deal on the channel, sponsorship rights for three editions of the live event ‘Trace Live’, and also eight weeks sponsorship of the program ‘Colours’ on the Urban television channel.

Other benefits include; three weeks sponsorship rights for Playlist, a show on the channel and sponsorship rights for four episodes of TRACE Jamming session.

Speaking on the new partnership, Sam Onyemelukwe, MD Trace Anglophone West Africa, revealed, “For us at Trace, it is always a pleasure

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Sam Onyemelukwe, MD, Trace Anglophone West Africa

to work with great brands and great partners, and the same can be said of this particular partnership with LG. We all know the change the younger generation is bringing into music and entertainment in general for our country and continent- it’s amazing!. They are pushing boundaries and bringing recognition to Africa, and so partnering with such a reputable brand will further enhance the listening pleasure of music lovers.”

Also speaking at the event, Kenny Cho, general manager, LG Electronics, Audio Video division, said, “LG Electronics has been a global leader and major player in home entertainment ranging from displays to audio products inclusive of home theatres, one @Businessdayng

body audio, portable bluetooth speakers, and a whole range of XBoom products.

This partnership with Trace will bring about a new level of digital entertainment by providing Nigerian youths with cutting edge technological products of being entertained at any point in time.”

Through the years, Trace has widened its scope and perfected the art of content production and talent management service and with the new alliance with LG Electronics, not only has Trace become a Pan-African ecosystem, which empowers the young and young at heart globally, it has set itself up for the future of global digital entertainment.

Present at the sign-off ceremony of the new alliance were; Hari Elluru; head, marketing, LG Electronics West Africa, Kenny Cho;general manager (Convergence), Audio/Video, LG Electronics, West Africa, and Paul Mba; marketing manager, LG Nig. Limited. Also present were Trace’s Bassey Aniefiok; general manager, sales & special operations, and Sam Onyemelukwe, MD, Trace Anglophone West Africa.

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Friday 17 July 2020

BUSINESS DAY

Hotels

Hotel Spotlight: Prepping for guests in a time of Covid-19 OBINNA EMELIKE

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s the world desperately awaits a long overdue change of scener y, countries across the globe are strategizing about how - and when they will reopen their borders and reboot their respective tourism industries.

Travel seemed like a completely foreign concept in a Covid-19 world until just recently. But then lockdowns began to lift, even if in a phased approach, and more freedom of movement, particularly for business travellers, is slowly being permitted.

At the end of May, Zurab Pololikashvili, secretary general, United Nations World Tourism Organisation (UNWTO), welcomed the growing confidence in the global tourism sector, noting that it stands ready “to return to growth”. At the same time, however, he cautioned that “at both the local and the global level, the crisis we have faced up to together has shown the importance of making the right decisions at the right time”.

The task comes with a whole new set of challenges and parameters. Adequate safety measures remain an imperative globally, while non-essential travel, especially to countries with high prevalence of Covid-19, is still not recommended.

According to Pololikashvili, the recently-released UNWTO Global Guidelines to Restart Tourism serve as a “comprehensive set of mea-

sures” to open tourism up again “in a safe, seamless and responsible manner”.

The tourism sector has not been slow off the mark.

However, Mark Havercroft, regional director for Africa, Minor Hotels, disclosed that what is non-negotiable in the reopening strategies of tourism businesses in the current circumstances is assuring the safety of guests and team members in every way possible.

“Hotels are at risk of becoming hotspots from which infection can be spread further. It is vital to have stringent protocols in place to assure the safety and comfort of guests and the welfare of team members”, he cautioned, adding that both the world, and the capacity for safe travel, has changed intractably. Travellers heading out into the world in the midst of an ongoing pandemic will, understandably, be overcautious.

Addressing the onus on the entire tourism industry to create a safe environment for travellers, Havercroft highlighted the fine line between having adequate safety measures in place and breeding discomfort.

He noted that the COVID-19 threat is an invisible one, making it harder to comprehend than, for example, the need for metal detectors for security purposes (sadly ubiquitous in the hotel industry in many locations). It cannot be ignored in these challenging times the necessity for precautions remains and must be rolled out with the consideration of guests in mind.

Minor Hotels brands in Africa, Avani and Anantara, have already opened their doors. The Minor Hotels group operates more than 565 properties across 56 countries, including the Elewana, Oaks, NH Hotels, NH Collection and TIVOLI

brands. In line with recommendations of the World Health Organisation (WHO) and the US Centers for Disease Control and Prevention (CDC), the group is already implementing strict hygiene interventions to safeguard both guests and staff across all its establishments.

“We have already begun to disinfect and sterilise every space in all of our properties.

All team members who will be in contact with guests are undergoing comprehensive COVID-19 safety protocol training,” explained Havercroft.

“Internationally, we must be united in our reopening strategies and hygiene policies across the board, while considering the requirements, customs and traditions of the specific countries in which we operate. In line with our training, and in staying updated with credible information globally, we continually inform staff and guests on the latest safety measures”, he said further.

Front-line staff wear face shields, masks and gloves, temperature checks are conducted, hourly sanitation stations are strategically placed across all premises for the use of everyone on site, he added.

In South Africa, under level 3 lockdown regulations, business travel is allowed provided travellers have the relevant permit.

According to Havercroft, travel will not look the same as we remember it but it is becoming possible again, albeit all of us being more mindful of our own safety and that of others.

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

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

The Wheatbaker #4 Onitolo(Lawrence Road), Ikoyi, Lagos.

Tel: 01 277 3560

Hawthorn Suites by Wyndham Abuja 1 Uke St, Garki, Abuja.

Tel: +234 9 4603900, +234 805 7522500

Lagos Continental Hotel Plot 52, Kofo Abayomi St, Lagos Tel: 01 236 6666

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

206 Exclusive Hotel Plot 206 Oladipo Diya Road Opposite Olympia Estate

By Games Village Second Gate Durumi2 Abuja

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

Enugu to restore Nike Lake Resort

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n an effort to diversify its revenue and also to develop hospitality infrastructure across the state, the Enugu State government is set to restore Nike Lake Resort to its past glory.

The once-thriving resort was one of the best and mostvisited hospitality outfits in the South East, after Presidential Hotel Enugu, which is shutdown for years now.

The proposed restoration is coming after the inauguration of a seven-member Board of Directors about four months ago by Ifeanyi Ugwuanyi, governor of Enugu State, who charged them to work with the management of the resort to restore its past glory.

Led by Ugochi Madueke, the newly inaugurated Board of Directors of Nike Lake Resort Hotel, Enugu, backed by the commitment of the government, has so far introduced far reaching reforms

in the management of the hotel.

The restoration is in line with modern hospitality facilities and trends, to improve the resort and enable it to offer the best of relaxation, engagements and tourism activities in the South East of Nigeria.

The restoration is in phases and the phase one, which is ongoing include: overhaul of the room furniture and sanitary wares, laying of floor

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tiles in place of the existing rugs, procurement of modern kitchen equipment to replace the outdated ones, installation of CCTV Camera, construction of a modern entrance gate for efficient service delivery and effective security operation.

Others include; remodeling of the entrance view with brick stones and mounting of designed chain-link fence, water reticulation system for adequate water sup-

ply, massive renovation of the ‘Omenala’ Bar, adjacent to the lake view, with cultural crafts, et cetera, to depict the ambience the relaxation centre adores, among others.

It would be recalled that during the inauguration, the governor described the hotel as “a flagship asset of the state, hence restoring it to its past glory is a worthy and profitable effort going by more employment and improved revenue it would generate afterwards.

According to Governor Ugwuanyi, his administration is committed and has invested a lot in the upgrade and improvement of infrastructure of the hotel, starting from the restoration of power management system, while turnaround maintenance of the hotel water facility and plumbing works are ongoing.

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

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

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

Friday 17 July 2020

BUSINESS DAY

and

present

O u t o f m a n y, o n l y a f e w.

THU. 20 AUG. 3.30 PM | VIRTUAL

Registration, Inquiries & Sponsorships Kristabel Eriaye, Conferences

08025576096

kristabel.eriaye@businessday.ng

Seun Oni, Conferences

08099451851

seun.oni@businessday.ng

www. b u s i n e s s d ay. n g www.businessday.ng

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Friday 17 July 2020

BUSINESS DAY

FT

FINANCIAL TIMES

World Business Newspaper

ECB leaves stimulus policy unchanged as it gauges pace of rebound

No change in rates or scale of bond-buying as economic outlook tentatively brightens Martin Arnold

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he European Central Bank has left its monetary policy on hold and committed to keep buying trillions of euros in bonds until it judges the economic crisis caused by the coronavirus pandemic to be over.

The decision by the ECB governing council on Thursday means that the central bank has hit pause after four months of ramping up its monetary stimulus, taking time to assess the eurozone’s nascent recovery before launching any new measures.

ECB president Christine Lagarde said that although there had been a “significant but uneven recovery” in recent weeks, there was still “exceptional uncertainty” that was weighing on consumer spending and business investment. She said “price pressures are expected to remain extremely subdued” and this meant “ample monetary stimulus remains necessary to safeguard the recovery”.

“Overall, the governing council assess the balance of risks to remain on the downside,” Ms Lagarde added.

At its previous monetary policy meeting in early June, the ECB expanded the amount of bonds and other assets it plans to buy under its Pandemic Emergency Purchase Programme from €750bn to €1.35tn and extended its timespan

Christine Lagarde, ECB president, speaks at the central bank’s virtual news conference on Thursday © Hollie Adams/Bloomberg

until at least the end of 2022.

Price pressures are expected to remain extremely subdued Christine Lagarde, ECB president Since then, the outlook for the eurozone economy has tentatively brightened. Consumers went on a spending spree after shops reopened in May, helping retail sales to rebound from record falls in March and April, while industrial output also recovered, albeit at a slower rate.

However, the global economy is still heading for the worst recession for a generation, while

eurozone inflation remains closer to zero than to the ECB’s target of just under 2 per cent.

On Thursday the ECB kept its main deposit rate unchanged at minus 0.5 per cent and said its bond purchases would continue “as long as necessary to reinforce the accommodative impact of its policy rates”.

The central bank adde d: “The purchases will continue to be conducted in a flexible manner over time, across asset classes and among jurisdictions.

This allows the governing council to effectively stave off risks to the

smooth transmission of monetary policy.”

Ms Lagarde forecast that headline inflation was likely to fall further in the coming months as weak demand put downward pressure on prices, adding that inflation was likely to only start picking up early next year.

The eurozone economy is expected to decline in the second quarter at a rate close to the 13 per cent contraction the ECB forecast in June, before rebounding in the third quarter, Ms Lagarde said.

“The governing council remains fully committed to doing

everything necessary within its mandate” to support the economy and achieve its inflation target, she added.

The ECB’s decision leaves the question of how to support countries hit hardest by the pandemic to EU leaders, who will discuss a planned €750bn recovery fund at a summit on Friday. But pressure on the EU to come up with a robust common fiscal response has eased since governments’ borrowing costs fell back this month to levels last seen before the coronavirus crisis.

“The extraordinary measures launched by the ECB, aimed at increasing the liquidity in the system, have led to a significant reduction in money market fragmentation,” said economists at Italian bank UniCredit in a note sent to clients before the ECB decision.

BlackRock, the world’s biggest fund manager, raised its rating for bond investments to “overweight” this week — pointing out that the ECB and the US Federal Reserve are set to purchase “roughly the equivalent of all the net supply across European and US sovereign and corporate debt this year by our calculations”.

“To date, these purchases have been mostly of government debt, but the credibility of central banks’ corporate debt backstop has helped underpin credit markets,” said strategists at BlackRock Investment Institute.

Russia-linked hackers accused of targeting Covid-19 vaccine developers UK, US and Canada attribute attacks to group ‘almost certainly’ working for Moscow Helen Warrell, Clive Cookson and Henry Foy

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ackers backed by the Russian state are targeting pharmaceutical companies and academic institutions in the UK, US and Canada that are working on potential Covid-19 vaccines, British intelligence officials have warned.

The UK’s National Cyber Security Centre, working with Canada’s Communications Security Establishment, attributed the attacks to hacking group APT29, also known as “Cozy Bear”, which it alleged was “almost certainly” working for Russian intelligence services. The findings have been endorsed by the US National Security Agency.

Dominic Raab, UK foreign secretary, said it was “completely unacceptable that the Russian intelligence services are targeting those working to combat the coronavirus pandemic”.

Intelligence officials said the hacking group APT29 used a variety of tools and techniques ©

“While others pursue their selfish interests with reckless behaviour, the UK and its allies are getting on with the hard work of finding a vaccine and protecting global health,” he said. “The UK will continue to counter those conducting such cyber attacks, www.businessday.ng

and work with our allies to hold perpetrators to account.”

APT29 has been linked to the hacking and theft of emails from the Democratic National Committee ahead of the 2016 US election.

Intelligence officials said the group used a variety of tools and techniques. However, they would

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not confirm whether any attempts to steal intellectual property from vaccine researchers had been successful.

Dmitry Peskov, president Vladimir Putin’s spokesman, told the FT: “We do not have information on who could have hacked pharmaceutical companies and research centers in the UK. “We can say one thing: Russia has nothing to do with these attempts. We do not accept such accusations.”

The allegations about Russian hacking come ahead of the publication on Monday of the first clinical trial results from Oxford university’s much anticipated Covid-19 vaccine.

The results, which will appear in The Lancet journal, include what one senior Oxford scientist called “terrific preliminary data” on the way the inoculation stimulates immunity.

The scientist said the vaccine gave a double boost to the im@Businessdayng

mune system in the 1,000 UK volunteers who took part in its phase one trial without significant side-effects.

Earlier this week the first clinical trial results from another vaccine developed by Moderna, a US biotech company, showed encouraging levels of antibody production.

Russia has claimed that a Covid-19 vaccine developed in Moscow — one of scores being worked on worldwide to battle the pandemic — will begin phase three human trials next month.

The early clinical trials of the vaccine have not been peer reviewed and no detailed information on the results have been published. But Kirill Dmitriev, head of the Russian Direct Investment Fund, on Thursday suggested that Moscow planned to produce more than 200m doses of the vaccine by the end of this year and seek to inoculate the Russian population by early 2021.

Friday 17 July 2020

BUSINESS DAY

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FINANCIAL TIMES

COMPANIES & MARKETS

@ FINANCIAL TIMES LIMITED

Bond investors fear dearth of opportunities in sedated markets Measures of volatility have plummeted as central banks ramp up BoJ-style programmes Tommy Stubbington

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overnment bond traders and investors are reeling from a hectic start to 2020. Now they face an equally daunting prospect: a dead calm that wipes out trading opportunities for months to come.

Sovereign bond prices rushed higher when coronavirus struck markets in March, providing some much-needed balance against collapsing stocks. But then they also succumbed to the sell-off, prompting central banks in the US, UK and eurozone to push back with vast bondbuying programmes.

Now, prices remain close to record highs, but traders are betting that they will remain stuck in those grooves — similar to the Japanese government bond market that has barely budged for years. A Bank of America index that tracks expected volatility in the US Treasury market has sunk close to a record low, after rising to its highest level in more than a decade four months ago.

In this kind of environment, it is tough for investors to find an edge.

“There’s definitely a longer term risk that everywhere does become like Japan,” said Mike Riddell, a portfolio manager at Allianz Global Investors. “As an active fund manager, if there’s no volatility and liquidity starts to drop off, it becomes increasingly hard to make money.”

Wall Street traders are also bracing themselves for a secondhalf slowdown, after a bumper

Central banks in Japan, the US and Europe have launched vast bond-buying schemes to counter the economic impact of Covid-19 © FT montage

second quarter for trading in all kinds of assets. Jamie Dimon, chief executive of JPMorgan Chase, said on Tuesday he expected trading revenues to drop by half in the coming months.

Massive central bank intervention in bond markets is nothing new. In the decade since the last financial crisis, bond purchase programmes have aimed to pull down longer-term yields, often with the purpose of displacing investors into riskier assets. But the response to coronavirus has broken new ground, both in the scale and purpose of buying.

The US Federal Reserve has pledged to buy Treasuries in unlimited quantities. The Bank of England has announced £300bn of purchases, while the European Central Bank plans to buy €1.35tn under its pan-

demic emergency purchase programme alone.

As a result of this activity, key government bond yields have become less responsive to prospects for economic growth and inflation, or to the typically damaging rush of new bonds hitting the market as governments fund crisis-fighting policies.

Investors say such interventions move these central banks a step closer to another policy used by the Bank of Japan: yield curve control. Rather than announce a specific amount of purchases, the BoJ has an openended promise to buy as much as it takes to hold 10-year yields close to zero.

So far, only Australia’s central bank has followed suit, but the Fed has discussed adopting the policy for the first time since the 1940s. Even where central bank-

ers have shied away from such measures, investors say the aim of asset purchases — to cap borrowing costs while governments load up on debt — increasingly resembles Japanese policy.

“I think it is yield curve control in all but name,” said Russell Silberston, investment strategist at asset manager Ninety One. “Their justification is to maintain the smooth functioning of markets, but that’s just a euphemism for ‘yields can’t go up’.”

In the past month, the 10year Treasury yield has stayed between 0.60 per cent and 0.78 per cent, according to Tradeweb data. “It’s hard to envision US Treasuries becoming a backwater quite like the [Japanese government bond] market, but if you look at the narrow range for the 10-year yield over the past few weeks things are certainly

moving in that direction,” Mr Silberston said.

Even in the eurozone, where the situation is complicated by the presence of 19 members each with its own government yield curve, some investors argue the central bank is implicitly putting a floor under bond prices.

Konstantin Veit, a portfolio manager at bond investing group Pimco, said the ECB’s bondbuying programme “effectively constitutes loose yield curve control”.

David Lloyd, head of institutional portfolio management at M&G Investments in London, said markets remain sensitive to traditional drivers such as prospects for growth and inflation.

“But then there’s this almighty trump card which renders everything else of secondary importance.”

Mr Lloyd said bond investors are left to decide whether to settle for lower returns, or take on greater risks in their portfolios by taking big directional bets. But he cautioned that such strategies may not work: wagers on lower yields may not have much further to run, while those hoping for higher yields should beware the example of the Japanese market, where betting against JGBs has lost investors so much money over the years it has been nicknamed the “widow maker” trade.

“In the early part of my career I learnt some very hard lessons in the JGB market,” Mr Lloyd said. “In the government bond markets right now you are unlikely to get instant gratification with a short position.”

Chinese stocks tumble 5% in heaviest sell-off since February Shares on Wall Street open lower as risk-off sentiment dominates Alice Woodhouse, Philip Georgiadis and Joshua Oliver

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S and European stocks followed Asia’s bourses lower on Thursday after China’s CSI 300 index recorded its worst day since February.

Shares on Wall Street opened down, with the S&P 500 0.6 per cent lower following two straight days of gains. The tech-weighted Nasdaq Composite lost 0.9 per cent.

US retail sales figures beat expectations, but unemployment data, released before the opening bell, showed the number of Americans applying for new jobless benefits languished around 1.3m last week.

“Even though unemployment is likely to continue declining faster than in previous recoveries, we still expect the unemployment rate to remain elevated for years,” Capital Economics said in a note.

Market sentiment was hit by significant falls in China, where the CSI 300 index of Shanghai and Shenzhen-listed companies dropped 4.8 per cent, while Hong Kong’s Hang Seng slid 2 per cent and China’s currency, the renminbi, weakened.

Stocks dropped despite figures showing the economy expanded 3.2 per cent in the three months to the end of June, compared with the same period last year. This exceeded analysts’ expectations of 2.5 per cent growth. www.businessday.ng

But the outsized nature of the rebound prompted concerns it had been engineered by state support that may not continue.

The negative reaction from investors could be explained by the belief that headline growth numbers were boosted by “statedominated and ultimately, statesupported industrial sector”, said strategists at Rabobank.

“The reality is there are few signs of an organic recovery being in place which would ultimately promise a boost to risky assets as demand recovers,” they added.

The jump in gross domestic product was not mirrored by Chinese retail sales data, which declined for a fifth month.

“Chinese growth rebounded

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in the second quarter exceeding our expectations considerably but we still think it is unsustainable,” said Iris Pang, chief China economist at ING. European stocks and the euro were little moved after the European Central Bank decided not to tinker with its level of stimulus as it gauges the region’s fragile recovery from the pandemic.

Analysts said the move to keep monetary policy and bond purchases unchanged was not a surprise. “The state of the markets and the economy do not necessitate new actions at this point,” said Anna Stupnytska, global macro economist at Fidelity International, although she expects ECB action in Septem@Businessdayng

ber or December.

Investors are instead focused on Friday’s meeting of EU leaders where they are expected to discuss details of a €750bn recovery fund.

“We would expect to see progress and positive noises even if this isn’t the final sign-off,” said Hetal Mehta, European economist at Legal & General Investment Management.

The continent-wide Stoxx Europe 600 fell 0.6 per cent, while London’s FTSE 100 was 0.5 per cent lower.

Asia-Pacific stocks followed China lower. Japan’s Topix 100 declined 0.7 per cent, while South Korea’s Kospi shed 0.8 per cent.

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NMRC grows PBT 60% to N3.09bn amid economic headwinds …shareholders approve N0.43 dividend per ordinary share CHUKA UROKO

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he Nigerian Mortgage Refinance Company (NMRC) says it has grown its profit before tax (PBT) to N3.09 billion as at the end of its financial year ending December 31, 2019.

This represents a 60 percent increase in the N1.94 billion it recorded in the corresponding period in 2018.

Managing director/CEO of the mortgage refinancing company, who disclosed this at the company’s annual general meeting (AGM) in Lagos on Wednesday, added that the company’s earnings per share increased to N1.43, up from N0.93 recorded in 2018, making it possible for the shareholders to approve a dividend payout of N0.43 per ordinary share.

Chairman of the company, Charles Adeyemi Candide-

Johnson, had explained that the company’s gross earnings increased by 36 percent from N7.09 billion in 2018 to N9.62 billion in 2019 while total assets increased from N69.29 billion as at December 31, 2018 to N72.87 billion in the period under review.

The chairman commended the company’s performance given that the year started with the anticipation of some headwinds to the business.

“Even though progress is being made, the company remains committed to its mandate of making housing finance more accessible and affordable for Nigerians, particularly in an era when housing availability has come to play a critical role in successfully mitigating the spread and impact of Covid-19,” he noted.

Ogundimu described 2019 as a good year for the company with record earnings as well as commendable improvements in its financial metrics.

Lagos doctors suspend 3-day warning strike Anthonia Obokoh

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octors in Lagos State have suspended their three-day warning strike as the Medical Guild ordered the resumption of work on Thursday, July 16.

Olujimi Sodipo, chairman, Medical Guild said “we have resumed back to work today (Thursday) He added: “Will give the government some time since meetings have started and the government appears to be showing a positive disposition.”

The doctors had on Monday embarked on a warning strike over wage disparity between the federal government doc-

tors and state, non-payment of hazard allowance, disengagement of doctors at the isolation centres and two months’ salary arrears.

He emphasised positive change in attitude of relevant government agencies towards the resolution of the Medical Guild demands.

“The three- day warning strike has been suspended and work resumed by 8am on Thursday, July 16 2020,” said Sodipo.

According to him, the officers committee should continue to engage relevant government agencies on all the issues that precipitated the strike action.

Top row, L-R: Peter Sengpiel, vice president, West Africa Festo Automated; Emilia Asim Ita, practice director, A’Lime Media Limited; Adebola Akindele, group managing director, Courteville Business Solutions plc; Tobias Wolfgarten, team lead, TVET GIZ; Middle row L-R: Ronke Azeez, executive secretary, LASTVEB; Babajide Sanwo-Olu, governor, Lagos State; Olatunbosun Alake, special adviser innovation and technology, Lagos State; Ndidi Nwuneli, co-founder, AACE Food Processing and Distribution; Last row L-R: Juliet Oshagbemi, head Dangote Academy; Adeoye Fadeyibi, managing director, Eko Electricity Distribution Company, and Adenike Adekanbi, general manager, LASIAMA, during the LASTVEB World Skills Day Webinar in Lagos.

Lagos traffic returning to pre-pandemic days as business activities pick up - Report MICHAEL ANI

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he traffic situation in Lagos is fast returning to the pre- Covid-19 days as businesses activities begin to gather momentum in Nigeria’s biggest commercial city.

From the busy Third Mainland Bridge linking to the Island where most businesses have their operations, down to the suburb in the mainland of Ikorodu, the tiring traffic situation which had eased during a five-week lockdown, is returning to normal in some areas, according to a report by JCDecaux Grace Lake in partnership with the Lagos State government.

The traffic situation on Third Mainland Bridge linking the Island and also the lane facing the Mainland is back to normal and consistent, the report noted.

The traffic increased by 94 percent on Ikorodu road connecting to Maryland, while that connecting to the Yaba axis also increased by 97 percent, the report shows.

Similarly, there was a 98 percent daily traffic increase on the road linking Falomo to Alfred Rewane, while those facing Akin Adesola also increased by 90 percent compared to what was seen during the months when the government enacted lockdown measures aimed at curbing the spread of the virus.

Lagos, which is the epicentre of the coronavirus pandemic in the country with over 12,711 confirmed cases as of July 14, is home to an estimated 20 million people, who daily are faced with the challenge of jostling through the road infrastructure which is not only dilapidated but also largely occupied by trucks that have taken siege virtually on all parts of the roads.

Twitter shares slump amid high security breach FCCPC says Discos make regulatory OLUFIKAYO OWOEYE

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day after hackers gained access to Twitter’s internal systems to compromise several accounts, shares of the San Francisco-based company, tanked more than 4 percent in pre-market trading at the floor of the New York Stock Exchange on Thursday.

The breach has seen some of the most prominent business and political leaders on Twitter duped people into sending at least $120,000 worth of Bitcoin to an anonymous online wallet, and more than half of that total has already been spirited to other accounts, according to a Bitcoin-tracing company.

Among high profile twitter accounts compromised includes that of U.S. presidential candidate Joe Biden, reality TV star Kim Kardashian, former U.S. President Barack Obama, and billionaire Elon Musk.

“Tough day for us at Twitter,

we all feel terrible this happened. We’re diagnosing and will share everything we can when we have a more complete understanding of exactly what happened,” Jack Dorsey, Twitter CEO tweeted.

According to Twitter, hackers targeted employees with access to its internal systems and “used this access to take control of many highly-visible (including verified) accounts and Tweet on their behalf.”

Twitter’s brute-force response was to turn off tweeting for all verified accounts, muting business and political figures across the spectrum and also muzzling official public service announcements.

Bitcoin has become an attractive target for scammers because it can be used worldwide. While Bitcoin’s price dropped pre Covid-19 pandemic, it has since recovered and is up roughly 30% since the beginning of the year. www.businessday.ng

function difficult HARRISON EDEH, Abuja

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ederal Consumer and Protection Commission (FCCPC) has said that Distribution Companies in the country are making regulatory functions difficult for its regulator-Nigeria Electricity Regulatory Commission (NERC) with poor handling of consumer related issues.

Babatunde Irukera, the director general of FCCPC made this remark at a NERC town hall meeting held in Abuja on Thursday which had Northern Discos of Abuja, Jos, Kaduna and Kano in attendance.

“My experience working with NERC in the run off to the tariff review and billing cap order is that it is really difficult to regulate the Discos. Difficult toregulateinthesensethatallthefocus is on their problems. Quite frankly, when that is the approach, I don’t know how much progress we can make.”Irukera said.

Irukera posited that available statistics revealed that the index of dissatisfaction is still extremely high

on the part of consumers with regard toarbitrarybillingconcernsanddiscos responsiveness to metering issues.

“It is very difficult to hold consumers accountable when Discos are not held accountable .This makes regulator function difficult for us from the regulatory standpoint.”

Irukera said: “It is very difficult to say to the people that energy theft is against the law, when arbitrary billing is supposed to be legitimate. You are taking from people what you’ve not giventothem,sohowdoyoutakewhat you haven’t given to the consumers.

“How would a tariff review look like in an environment, where half of the consumers are not metered, and more than half pay for estimate billing and in a regime where the Discos resistacapunderanestimatedbilling.”

Irukera queried.

Moses Arigu, the commissioner who heads consumer affairs at the commission said the regulator would continuouslysupportinteractionsand consultations that ensure consumer’s needs are met and in prompt time.

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That has become a thorn in the flesh for commuters and businesses operating in Lagos who are forced to spend an average of 10 hours a day, almost the same time it would take them if they were travelling to Abuja.

For businesses operating in the state, the situation means low productivity for their employees, as they spend more hours on the road to and fro their places of work, threatening both their physical and mental state.

Being the state with the most disturbing cases of the virus, it was listed among a number of others, including Ogun and Abuja, for a total lockdown.

That helped in easing the traffic situation in the states since only businesses in the health and pharmaceutical lines, power, security agencies, downstream oil companies and a few others, planted un-

der the umbrella of providing essential services were not added in the restriction.

But as lockdown restrictions were eased, with banking operations returning to normal hours as well as both intra and interstate transportation resuming back fully, the gridlock in the state has increased, and becoming unbearable for Lagosians.

JCDecaux Grace Lake which said it installed in the city of Lagos the first real-time traffic information system continent of Africaw “Lagos Traffic Information System ‘’ (LATIS), to track traffic situation, noted a consistent all hours of the day traffic trends.

There are fears that commuters might be in for their biggest traffic nightmare due to the continuing rainfall which has further exposed the state’s dilapidated road network creating more headache for Lagosians.

Naira weakens against dollar as FX turnover rises 445.9% ...Nt-bills auction oversubscribed by 77% Hope Moses-Ashike

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igeria’s currency yesterday weakened against the dollar across all foreign exchange market as liquidity squeeze persisted.

At the Investors and Exporters (I&E) forex window, Naira depreciated by N1.50k as the dollar was quoted at N388.00k on Thursday as against N386.50k that was quoted on Wednesday, data from FMDQ revealed.

Most participants maintained bids between N380.00k and N390.89 per dollar, analysts at FSDH research said on Thursday.

The market opened with an indicative rate of N387.96k on Thursday morning, which signaled N0.21k depreciation when compared with N387.75k opened with on Wednesday.

The foreign exchange daily turnover rose by 445.9 percent to $102.13 million on Thursday from @Businessdayng

$18.71 million on Wednesday.

At the black market and retail Bureau, Naira lost N1.00k each as the dollar was sold at N468 and N469 respectively on Wednesday compared to N467 and N468 traded on the previous day.

The NT-bills market closed on a positive note on Thursday, with average yield across the curve declining by 9 bps to close at 1.83 percent.

The CBN held its scheduled Primary Market Auction on July 15, selling NT-Bills worth N107.05 billion across the 91-day (N8.85 billion), 182-day (N26.60 billion), and 364-day (N71.60 billion) tenors.

The stop rates for the 91-day, 182day, and 364-day tenors cleared lower at 1.300 percent (-49 bps), 1.800 percent (-11 bps), and 3.350 percent (-4 bps), respectively. The auction was oversubscribed by 77 percent with bid-to-cover ratios settling at 4.73x (91-day), 2.37x (182day), and 1.32x (364-day).

Friday 17 July 2020

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news

Embattled Nunieh did not travel again as Wike tells IGP to investigate failed ‘abduction’ Ignatius Chukwu

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he embattled former acting managing director of the Niger Delta Development Commission (NDDC), Joi Nunieh did not travel to Abuja to testify before the House of Representatives committee probing the commission due to the early morning ‘battles’ in her residence in Port Harcourt requiring the rescue mission led by Governor Nyesom Wike.

This is as the governor has demanded for full investigations from the Inspector General of Police. Wike warned whoever was behind the failed abduction to back off or “we will fight back”.

Close sources confirmed at 6.15pm that Nunieh could not make the trip to Abuja after all, meaning that she did not testify on the scheduled time and date. This is expected to up the sensation around her appearance whenever she eventually would appear. The drama may also shoot her up as a heroine in the ongoing saga between her and the minister of Niger Delta Ministry, Godswill Akpabio, who is being alleged of fleecing the NDDC. Wike who viewed the incident as failed abduction wondered what Nigeria has come to for 50 armed men to lay siege at the home of a woman who was to appear before the House of Representatives. The operatives claimed to come from the

Inspector General’s Unit in Rivers State.

The governor thus urged the IGP to investigate the circumstances that led to over 50 armed policemen storming the Port Harcourt residence of Nunieh at 4am on Thursday, July 16, 2020.

Governor Wike who was on ground to frustrate the attempted abduction, berated those self-styled armed policemen who claimed to be members of the Inspector General Monitoring Unit.

The governor said under a civilised society, the proper thing to do is to invite her to answer to any allegation.

But to storm her residence at such an unholy hour, the governor said, suggests some sinister motive that should not be tolerated.

“What has happened today is a disgrace. Who knows what would have happened to her if they had gained access to her main room. I went there personally to see things for myself and rescued her.

“She is supposed to testify before the House of Representatives Committee and here we are having armed men wanting to abduct her.

“We came out to protect our daughter and we will do so to every Rivers citizen. That is the oath of office I swore to. It doesn’t matter the political affiliation. We will not allow anybody to destroy Rivers state.

WTO: FG inaugurates campaign strategy team for Okonjo-Iweala HARRISON EDEH, Abuja

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he Federal Government on Thursday inaugurated the campaign strategy team for Ngozi Okonjo-Iweala who is vying for the post of the next director general of the World Trade Organisation (WTO).

Richard Adeniyi Adebayo who performed the inauguration of the team in Abuja said the setting up of a campaign strategy team was critical in ensuring that the Nigerian candidate emerges as the director general of the WTO. The minister noted that the decision of President Muhammadu Buhari to nominate Ngozi Okonjo – Iweala as Nigeria’s candidate for the position was taken in good faith, given the overriding consideration of the need

to host Africa’s chance and for the promotion of gender mainstreaming at the world’s top trade post.

He expressed optimism that the Nigerian candidate would emerge as the next director general of WTO, based on her capabilities and wealth of experience at the highest level of the World Bank as a development economist, diplomat and one of the Africa’s most trusted technocrats.

According to Adebayo, “an eminently qualified candidate in the position of Ngozi Okonjo Iweala with proven leadership, bold reformer, skillful negotiator with abilities to broker numerous agreements that would promote fair trade should be selected for the position of the director general of the WTO; I am confident that Ngozi Okonjo – Iweala possesses the qualities to lead

the most important global multilateral body’.

He therefore charged the team to develop winning strategy for the candidate and also called on stakeholders, media, public, private and trading partners to give necessary support that Nigerian candidate requires to emerge as the WTO director general for the term 2021 – 2025.

“My belief is that the team will intensify its level of dedication over time to ensure that we achieve success”, he stated.

The minister of state, Mariam Katagum, who is the leader of the campaign strategy team gave an assurance of the full commitment of members of the team to deliver on its mandate, “We must all get to work as a team in the most strategic and professional manner to deliver on this

important assignment in line with the Terms of Reference”, she stated.

Katagum also expressed confidence that Okonjo – Iweala would surely emerge as the next director general of WTO considering her pedigree and commitment in ensuring sustainable development and economic growth not only for Africa but the world at large.

The campaign strategy team comprised of officials of the federal ministry of industry, trade and investment, ministry of foreign affairs; representatives of the office of the chief of staff to the President, office of the secretary to the government of the federation, federal ministry of finance, Nigerian ambassador to ECOWAS and African Union as well as Geneva – based officials.

LASG to partner private sector on vocational, technical education KELECHI EWUZIE

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agos State government says it is leveraging partnership with the private sector to scale up vocational and technical education with a view to encouraging skill development among the youth population.

The governor, Babajide Sanwo-Olu stated this on Wednesday during webinar event hosted by the Lagos State Technical and Vocational Education Board (LASTVEB) as part of activities to mark the World Youth Skills Day. According to Sanwo-Olu, in recognition that data will be the new normal in a post Covid-19 world, his administration through the Lagos State Residents Registration Agency, is making efforts to remedy the present dearth of data through the issuance of identity cards to at least ten million Lagosians by 2021.

Nd i d i Nw u n e l i , c o founder, AACE Food Processing and Distribution Company, and lead speaker at the webinar, posited that the outbreak of the coronavirus will fast-track a paradigm shift to a fourth industrial revolution with a transparent government, dynamic entrepreneurs and

skilled workforce as key drivers in the emerging ecosystem.

Nwuneli, who spoke on the theme: “The new normal: Implications of the pandemic on jobs & future skills development,” said Covid-19 has accelerated our challenges as a nation, and a change of mindset is critical to addressing these challenges.

Ronke Azeez, executive secretary, Lagos State Technical and Vocational Education Board (LASTVEB), harped on changing the negative perceptions of technical and vocational studies, stating that technical education is one of the paths to achieving learning and helping young people achieve their dreams.

Azeez said that modalities were in place to enroll 8,000 students in the technical colleges, adding that state governor has ensured that 1,500 students are online to learn since the advent of the coronavirus pandemic.

Panelists drawn from various sectors suggested that relevant skills in navigating the new normal will include emotional intelligence, creative and critical thinking, ability to utilise digital skills as well as ability to adapt to a changing work climate. www.businessday.ng

L-R: Ibikunle Oriola, group finance director; Dan Agbor, non-executive chairman, and Godwin Samuel, company secretary, all of UAC of Nigeria plc, at the 2020 annual general meeting of the company in Lagos.

Experts say Credit Guarantee key to deepening MSMEs access to finance Cynthia Egboboh, Abuja

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ndustry experts have identified the Credit Guarantees Schemes (CGS) as popular policy instruments that would help alleviate the credit constraints faced by the Micro Small and Medium Enterprise (MSMEs).

The experts who spoke at the Development Bank of Nigeria webinar session raised concerns that current realities of financial constraints faced by MSMEs, particularly on the back of the Covid-19 pandemic, and harped on the need for additional support in alleviating the growing funding crisis.

The main thrust of the discussion by industry experts at the virtual conference was “Risk sharing: A key driver for increased financial access and economic development for MSMEs”, a virtual knowledge sharing series.

The DBN webinar series is

aimed at providing capacity building for MSMEs through digital platforms to ensure they are empowered to remain in business through this unprecedented period.

The experts alluded to the fact there is a need to increase awareness by key industry stakeholders in ensuring that the much-needed stimulus and alternative means of facilitating financing are discovered to stem the shock to Nigeria’s economic and financial system.

Ayodele Olojode, group head emerging business, Access Bank Plc, explained that MSMEs do not have regular and sustained access to finance at high interest rates, coupled with lack of tangible collateral and economic conditions which have hampered their access to finance.

“Risk sharing facilities will help increase access to finance which helps MSMEs grow, increases employment and output in the economy,” Olojode noted.

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W/Africa accounts for 90% of maritime kidnappings as attacks on ships surge – Report AMAKA ANAGOR-EWUZIE

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iolent attacks against ships and their crews have risen in 2020, with 77 seafarers taken hostage or kidnapped for ransom since January, reveals the ICC International Maritime Bureau’s (IMB) 2020 second quarter piracy report.

According to the report, Gulf of Guinea off West Africa has become increasingly dangerous for commercial shipping, and it accounted for over 90 percent of maritime kidnappings worldwide.

The IMB report further revealed that 98 incidents of piracy and armed robbery at sea were recorded in the first half of 2020, up from 78 in the second quarter of 2019.

This, it stated, has increased the hardships already faced by hundreds of thousands of seafarers working beyond their contractual periods due to Covid-19 restrictions on crew rotations and international travel.

“Violence against crews is @Businessdayng

a growing risk in a workforce already under immense pressure,” Michael Howlett, IMB Director said.

In the Gulf of Guinea, he said, attackers armed with knives and guns now target crews on every type of vessel, making everyone vulnerable.

“We need to change the risk-to-reward ratio for pirates operating within the Gulf of Guinea. Without an appropriate and proportionate deterrent, pirates and robbers will get more ruthless and more ambitious, increasing the risk to seafarers,” Howlett noted.

IMB stated that about 49 crew have been kidnapped for ransom in the Gulf of Guinea and held captive on land for up to six weeks.

“Rates are accelerating, with 32 crew kidnapped in the past three months alone.

And they are happening further out to sea: two-thirds of the vessels were attacked on the high seas from around 20 to 130 nautical miles off the Gulf of Guinea coastline,” the report stated.

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news CBN first-quarter FX sales highest since...

Continued from page 1

the COVID-19 pandemic,” Ayodeji Ebo, managing director, Afrinvest Securities Limited, says.

That, he notes, impacted on yields in the fixed income market within that period as well as the equities market within the first quarter.

Nigeria’s foreign reserve, from which the CBN sells dollars, is seen as unsustainable to meet the country’s FX needs, forcing two currency adjustments since March.

“It is a dangerous trend for the economy due to the risk it poses for our external reserves,” Uche Uwaleke, a professor of capital market at the Nasarawa State University, Keffi, states.

The implication, he says, is that at that attrition rate and in the absence of improved inflows from oil revenue, the about $36 billion foreign reserves will drop to levels insufficient to meet minimum threshold of three months merchandise imports.

“I must also note that the unusual size of the intervention, in spite of supply chain disruptions, is not unconnected with the huge sums committed to contain the health crisis occasioned by COVID-19 involving imports of medical equipment,” Uwaleke notes.

Another reason, he says, could also be to meet forex demand of foreign investors exiting the country in the wake of the pandemic.

The “devaluation” of the naira is also in line with exchange windows unification conditions of Breton Woods Institution for financing cash-strapped Federal Government.

BusinessDay analysis of CBN’s forex sales data for Q1 2020 shows that while the value of foreign currencies sales has grown, the rate has actually slowed from recent years given the low base between 2016 and 2018.

In the Q1, the interbank sales fell by 62 percent yearon-year to $188 million, the lowest since 2013, while I&E plus SME and Invisibles sales grew 175 percent to $7.24 billion. BDC sales remained flat at $3.63 billion.

Dollar inflow stood at $43.42 billion in the first quarter, growing at a much slower pace from last year.

The CBN accounted for 35 percent of all inflow versus 45 percent in the same period in 2019.

“I believe the very high FX demand in Q1 was due to a combination of factors in connection with COVID-19,” Taiwo Oyedele, head of tax at PwC, notes.

On one hand he says

many portfolio investors were selling off their naira investments and repatriating their capital in hard currencies to preserve value.

Also, due to expectations of a devaluation of naira and FX scarcity there was speculative demand.

“I therefore expect demand to moderate subsequently given the near unification of exchange rate and some level of recovery in crude oil price,” Oyedele states.

The rest of the inflow through Autonomous Sources slowed by 6 percent points to 29 percent to $28.43 billion. Notably, non-oil exports doubled while the decline in capital inflow was less steep than was in the quarter last year.

Invisibles were pressured on the back of a 75 percent decline in Home Remittances, which had grown 285 percent last year. Inflows from capital importations and oil companies were also adversely affected.

In terms of utilisation, 24 percent of FX in the quarter was used for imports with food product ($1.44bn) as the largest use by importers (10% of total FX utilisation in the period).

Invisibles accounted for 76 percent of FX use with financial services at $10.54 billion, making up 74 percent of utilisation in the period.

Olusegun Akintunde, financial market analyst at Polaris Bank Limited, was first surprised at the 76 percent composition of invisible, saying it was manufacturing that takes most part of the CBN FX sales.

Anyway, looking at the quantum of CBN FX sales in Q1 2020, he says it was a pointer to why the recent adjustments in FX rate witnessed so far became inevitable.

If the trend continues in the preceding quarters, he says more pressure would be put on the nation’s reserves and this might force another round of devaluation or adjustment. Even though the $3.4 billion IMF loan gave the country’s Foreign Reserve temporarily respite from its free fall, a consistent decline is inevitable if FX sales of this magnitude continues in the preceding Quarters.

“The entire picture shows the imbalance nature of our economy. We import most of our raw materials and finished goods. Aside huge legitimate demand for the green back, the situation is now worsen by increasing speculative and hedging purpose demand,” Akintunde says. www.businessday.ng

L-R: Rukayat O Dahiru, company secretary/legal adviser, Jaiz Bank plc; Umaru Abdul Mutallab, chairman, and Hassan Usman, MD/CEO, at the 8th annual general meeting of the bank, at its corporate head office in Abuja, yesterday. Pic by Tunde Adeniyi

How improper disposal limits over $250m...

Continued from page 1

the country as a whole has

not properly embraced recycling method, which is the global best practice for waste collection and disposal with capacity to turn the waste so collected into wealth.

Disposal of wastes in these cities remains a big issue and, according to Abdullahi Muazu Gwarzo, managing director of Refuse Management and Sanitation Board (REMSAB), the board is, at the moment, sourcing for interested investors that can turn the waste being generated within Kano metropolis into wealth.

Rowland Nwakanma, deputy general manager, Abia State Environmental Protection Agency (ASEPA), Aba and Environs, regrets that waste, which is supposed to be a revenue generation item, is being wasted because there is no recycling plant in the state. According to Nwakanma, a recycling plant would have helped to turn the wastes into wealth.

“There are lots of benefits to derive from having a recycling plant. We generate enough waste, which could be turned into fertilizer or for power generation; waste plastics, nylon and metals could also be recycled, thereby reducing wastes on our environment,” he says.

Ola Oresanya, former managing director of Lagos Waste Management Authority (LAWMA), agrees, adding, however that, to efficiently manage municipal waste, there is a need to encourage policy that embraces sorting.

He explains that waste sorting is a process by which waste is separated into different elements. This, he says, can occur manually at the household level and collected through curb-side collection schemes, or automatically separated in

materials recovery facilities or mechanical biological treatment systems.

According to Oresanya, wastes exist as liquid, solid rubbish, organic waste, recyclable rubbish and hazardous waste, arguing that, these, if properly segregated, allows for easy collection and shapes disposal patterns.

He adds that sorting will enable recycling, which is a multi-billion naira business anywhere in the world, believing this is where the opportunity lies for publicprivate partnership in waste management.

It is believed that, to effectively address the problem of waste in Nigerian cities, government and the people must begin to look at recycling as a business. This is because once the citizens begin to see the money value of waste, indiscriminate dumping will reduce, as they will want to make money out of their waste.

Wale Adebiyi, managing director, WeCyclers, which is into recycling, says the plastic waste that litters the streets of Lagos presents a viable opportunity.

He says out of the estimated 15,000 tons of waste that Lagos generates daily, roughly 30 percent is recyclable, and 50 percent of this is plastic. “What this translates into is that about 2,250 tons of plastic wastes are generated in Lagos daily, which can be recycled. Annually, therefore, there is about 821,250 tons (almost 1 million tons) that can be recycled,” he notes.

Adebiyi reasons that, at $500 per ton, if only 500,000 tons of plastic can be recycled annually, it will potentially be a $250 million industry. “This figure will increase significantly when other parts of Nigeria are factored in. The waste industry, therefore, can comfortably employ thousands of un-

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employed youths, many of whom roam the streets idle in search of jobs.”

In Lagos, Nigeria’s sprawling commercial hub with an estimated population of 21 million people, the daily waste generation is estimated at 15,000 metric tons.

But waste disposal in the city poses a serious challenge.

Daily, heaps of wastes are seen in open and hidden corners of the streets, as residents seem to have formed the habit of indiscriminately dumping their waste in the absence of a well-defined management/disposal system that could touch every part of the mega city.

Over the years, efforts at reversing this trend have yielded little results. Various initiatives by successive administrations in the state, especially since the return to democratic rule in 1999, have seemed like a scratch on the surface.

Similarly, in Abuja, the Federal Capital Territory (FCT), indiscriminate waste disposal has been a major environmental challenge. It is common to see heaps of waste on the streets, markets, waterways, highways, residential apartments, and undeveloped plots of land which have been turned to waste dumps.

Francis Agbarakwe, head of waste disposal unit at Abuja Environmental Protection Board (AEPB), estimates waste generated from the Abuja municipal area council on a daily basis at 700 metric tons.

Out of the six area councils in the FCT, only the Abuja municipal area council has an efficient waste disposal system managed largely by Abuja Environmental Protection Board (AEPB), forcing residents to adopt other waste disposal techniques such as open burning or burying while other households just allow the waste to litter.

Ibadan, a Nigerian city @Businessdayng

that boasts of many ‘firsts’ even in Africa, is today mired by dirt and heaps of refuse along the highways, inner-city roads and streets while stench oozing out from heaps of refuse at the median of roads and drainage is not only offensive but dangerous to the health of residents.

Though several attempts have been made like dividing the Ibadan city and its environs into 11 local government areas to shoulder the responsibility of collecting, transporting and disposing of municipal solid wastes while involving the private sector in residential solid waste management back in 1985, the challenges remain.

The perennial flooding in the city from the 90s up to last month has been wreaking havoc in the city, leading to loss of lives and properties.

This flooding has been attributed largely to indiscriminate dumping of refuse, which blocks waterways and drains.

Aba, the commercial nerve centre of Abia State, is one of the cities in Nigeria that has heavy domestic waste output because of its commercial nature. The city has four big markets and many entrepreneurial clusters.

The Abia State Environmental Protection Agency (ASEPA), an agency of government responsible for management of waste in the state, says Asa Road alone, generates 120 tons of domestic waste daily, adding that Ngwa Road, which hosts Ahia Ohuru (New Market) and a section of the garment cluster, generates about 80 tons daily.

The ancient city of Kano in the Northern part of Nigeria with an estimated population of 15 million also generates a high volume of waste put at 96,000 metric tons daily by the Refuse Management and Sanitation Board (REMSAB), an agency of the state government in charge of waste collection.

Friday 17 July 2020

BUSINESS DAY

31

Sports Organisers name schedule for 2022 Qatar World Cup Stories by Anthony Nlebem

Q

atar will kick off the 2022 World Cup at the Al Bayt Stadium in Al Khor, organisers announced, as they revealed the schedule for the finals.

In a joint statement, FIFA and Qatar’s Supreme Committee organisational body said that the gas-rich Gulf nation will start the World Cup at the 60,000-capacity ground on November 21.

Four matches will be played each day during the group stage of the 2022 Qatar World Cup, with kick-offs for the first two rounds of matches planned for 10am, 1pm and 4pm and 7pm Irish time.

The group games will be played over a 12-day period, with matches not being assigned to particular venues until after the finals draw in March 2022 in order to choose optimal kick-off times to suit television audiences in different countries, as well as supporters out in Qatar.

With the stadiums all within a 40-mile radius of each other, it will enable supporters and media to realistically attend two games on the same day.

For all but three games

Undermining FFP rules not good for football business- Klopp

L there will be a three-day rest period in between. There will also be no need for teams, supporters or media to spend time flying or taking long rail or road journeys between matches.

Kick-off times in the final round of group games and knockout round matches will be at 3pm and 7pm Irish time.

The tournament’s opening match will be played at the Al Bayt stadium in Al Khor on Monday, 21 November in a match which will feature the host country.

The final will be held at the 80,000-seat Lusail Stadium in Doha nearly a month later on December 18.

A start date has not yet been

fixed for the European section of World Cup qualification.

The announcement comes two years to the day since the 2018 World Cup final.

Qualification for the World Cup has begun in Asia and Africa but is yet to start in Europe, the Americas and Oceania. Organisers said on Wednesday that the draw for the finals would be made “after the March 2022 international match calendar qualifying window”.

Both the Al Bayt and Lusail stadiums are still under construction, although the Al Bayt ground -- which takes its shape from the traditional tents used by nomadic peoples in the Gulf

Premier League clubs confirm 10-week transfer window

P

remier League clubs have agreed a 10week summer transfer window which opens on July 27.

Subject to the approval of football’s world governing body FIFA, the window will open the day after the 2019-20 season finishes and end on October 5, the date UEFA had recommended for the closure of registration periods across

Europe.

The Premier League said that following consultation with the English Football League, a domestic-only window will also be added from October 5 and close on October 16.

Transfers between Premier League clubs will not be able to occur during this period, but top-flight sides can trade with EFL clubs and loan

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or sign players permanently.

The EFL has confirmed its summer transfer window will open on the same day as the Premier League’s but clubs will have an extra two weeks for domesticonly business.

A statement from the EFL read: “Subject to formal ratification, the transfer window will open fully on Monday 27 July, although any player registered before the completion of the 2019-20 season will not be eligible to play for their new club until season 2020-21 commences. This is applicable to clubs involved in the Sky Bet Championship play-offs.

“The window for international registrations closes at 11pm on Monday 5 October, with an agreement in place with the Premier League for an extended two-week domestic only window which will close at 5pm on Friday 16 October.”

region -- is nearing completion, according to World Cup organisers.

Recently, rights group Amnesty International claimed that around a hundred migrant workers at the Al-Bayt stadium, which is 50 kilometres north of Doha, have yet to receive outstanding wages in full after not being paid for up to seven months.

Earlier this month several sources told AFP that World Cup organisers will lay off an undisclosed number of staff as Qatar cuts costs amid the coronavirus economic downturn.

Qatar has one of the world’s highest per capita infection rates.

iverpool manager Jurgen Klopp has suggested if Financial Fair Play (FFP) is no longer about revenues then someone could spend “a billion a year of his own money”.

On Monday the Court of Arbitration for Sport lifted the suspension imposed on Manchester City by UEFA’s club financial control body for breaching Financial Fair Play (FFP) regulations.

The alleged breach was in relation to the overstatement of sponsorship revenue and the break-even information submitted to European football’s governing body for the period between 2012 and 2016 but CAS found most of the allegations were “either not established or were time-barred”.

Klopp insists his objection was not against City. but on how the whole system would now operate.

“I don’t want them to lose money, it is just that if there are rules then I think that we all stick to it and not only some,” he said.

“If you say, ‘come on, forget

it, we don’t have to look at what someone is spending’ then there will be people with a lot of money who will be very influential.

“It is not about revenues any more; if someone is ready to spend a billion a year of his own money then that is how it is.

“If you agree on a specific rule but open the gates so you can do whatever you want then we all have to find solutions for that. “But when we agree on FFP - and that’s what we did - and you are not happy with FFP afterwards that makes no sense as well.

“There are some rules and we should try to stick to it.”

Klopp insists he is not concerned about the consequences for Liverpool, who have kept within the guidelines and posted after-tax profits of £29m, £106m and £39m in the last three seasons.

Klopp is however grateful Liverpool ended their 30-year wait to win the Premier League title last month as he expects a more difficult task next season, especially as his own transfer spending is likely to be low.

NFF mourns foremost women football figure, Henrietta Ukaigwe

N

igerian Football was again thrown into a state of mourning on Tuesday after news broke of the death of leading women football promoter and administrator, Henrietta Ukaigwe.

Ukaigwe, a Member of the Board of the Nigeria Women Football League (NWFL), has for several decades been at the vanguard of promoting the game of women’s football in Nigeria and even beyond these shores, playing a key role in the wide traction gained by the game from the 1990s as Nigeria’s Super Falcons relentlessly dominated the African game and became a permanent fixture in the FIFA Women’s World Cup. The Imo State –born journalist was at the head of a corp of women’s football-passionate reporters and stakeholders who birthed the Female Football Interest Group, comprising a number of individuals who actively promoted and ener-

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getically projected the women’s game and made it an item of consequence in the media and public space across the nation from the nineties.

Today, Nigeria’s domestic women’s football has 20 clubs in the premier division, with 12 in the pro division and dozens in the amateur cadre, counting both registered and unregistered teams. Nationally, the Super Falcons, Falconets and Flamingos are fixtures at their different FIFA tournaments, and the FIFA Women’s World Cup, FIFA U20 Women’s World Cup and the FIFA U17 Women’s @Businessdayng

Cup have carved their own niche and continue to thrive.

Ukaigwe worked at the Vanguard Newspapers, MINAJ Broadcasting Service, Super Screen television and a couple of other media houses before serving as Co-ordinator of the Senior Women National Team, Super Falcons. A couple of years ago, she was appointed into the Board of the Nigeria Women Football League headed by another ace promoter of the women’s game, Aisha Falode.

“The death of Henrietta Ukaigwe is a devastating blow to the game of women’s football in Nigeria. We are still in rude shock at her premature departure, but we collectively take solace in the fact that she left her formidable footprints in the sands of time. We pray that God will give her eternal rest and also grant those she has left behind the fortitude to bear the big loss,” NFF General Secretary, Dr. Mohammed Sanusi, said in Abuja.

Women in Business

Doyin Akinyanju MD/CEO Ibile Oil and Gas Corporation

D B

oyin Akinyanju is a leader with a proven track record of business growth, efficiency improvement, and profitability increases acquired from 27 years of experience, in numerous management and senior leadership positions, across geographic regions.

Doyin graduated with a degree in Chemistry with honours from the University of Lagos in Nigeria, went on to obtain an MBA from the University of Wales College of Cardiff Business School, and then qualified for the Chartered Institute of Marketing. She also completed Executive Finance training

inta Masi Garba is a Nigerian politician, businesswoman and administrator. She served the Federal House of Representatives three times, from 1999 to 2011. She is the first politician to represent two different Federal in 2009; she was elected as the first Vice President of Commonwealth Women Parliamentarians (CWP) under Commonwealth Parliamentary Association (CPA) in Cameroon. She is the only female Senator-Elect in all the 19 Northern States of Nigeria in 2015 elections. She was also, the only female delegate from Adamawa State to the National Conference in Abuja.

Between 1975 and 1981, she attended Army Children School, New Cantonment D, Hayin Banki, Kaduna. From there she proceeded for her Secondary School Education and obtained her (GCE/WAEC ‘O’ Level) in Government Day School, Kurmin Mashi, Kaduna South, Kaduna, between 1981 and 1987. She attended Kaduna Polytechnic and obtained Ordinary National Diploma (OND Marketing, 1990) and Higher National Diploma (HND Marketing, 1997).

In 2004, she went to Harvard Kennedy School of Government - Harvard University (Public Financial Management). She holds two Diplomas in Theology from the Bible School of Church Growth and Practical Ministry, and Matthew Owujaye’s Ministry, Kaduna. She is a recipient of an Honorary Doctorate Degree in Theology from Smith Christian University, Miami, Florida.

Binta Masi Garba started her political career in the year 1998 in Kaduna, Nigeria and she always advocated for women rights; thus prompting her to take up the mandate to represent women in the Federal House of representative Kaduna South Federal Constituency.

In 2006, close to the end of her second term in the Federal House of Representatives,

the then Governor of Adamawa State, Boni Haruna, having heard of her excellent performance as a legislator representing Kaduna South, entreated her to come back to her State of origin, Adamawa State, and contest.

After making consultations, she consented and came down to contest for House of Representatives in Madagali/Michika Federal Constituency under PDP. She eventually won the seat and represented the constituency from 2007 to 2011. After the 2011 election a film, “Dreams for Nigeria”, was made by the International Republican Institute about leading female Nigerian politicians and Garba was one of the women chosen. The other women were Hon. Suleiman Oba Nimota, Adamawa State; Hon. Saudatu Sani, Kaduna State; Hon. Titi Akindahunsi, Ekiti State, Hon. Maimuna Adaji, Kwara State, Hon. Florence Akinwale, Ekiti State and Hon. Beni Lar, Plateau State.

After her third consecutive tenure in the Federal House of Assembly, she recontested and lost against Titsi Ganama.

The People’s Democratic Party (PDP) under the Chairmanship of Bamanga Tukur had serious leadership crisis and a new faction emerged in 2013. The new faction of the PDP was under the Chairmanship of Abubakar Kawu Baraje. The new faction was called the new PDP (nPDP).

Binta Masi Garba was appointed the Woman leader of the nPDP. She later joined All Progressives Congress (APC) alongside Governor Murtala Nyako and other Governors. She contested and emerged as the chairman of the Adamawa state chapter of APC. The victory at the poll made her the first female state chairman of a registered major political party in Nigeria.

The controversies surrounding the election of the Adamawa state chapter of APC execu-

BUSINESS DAY Friday 17 July 2020 www.businessday.ng

By Kemi Ajumobi

at the International Institute for Management Development, Switzerland.

She was Chief Executive Officer for GE Oil & Gas in West and Central Africa and Chief Strategy Officer for GE Oil & Gas in SubSaharan Africa for two and a half years. She previously held senior managerial positions with Schlumberger where she spent eighteen and a half years in global and regional workspaces including Kenya, Ethiopia and Gulf of Guinea. Doyin has served on several boards and is Co-Founder of DFD SmarTech Construction. Doyin Akinyanju currently serves as the Managing Director / Chief Executive Officer of IBILE Oil and Gas Corporation.

IBILE Oil and Gas Corporation (IOGC) is a wholly owned entity of Lagos State Government and an establishment under the Ministry of Energy and Mineral Resources, recognized under the IBILE Oil and Gas Corporation Law, 2013 (now Cap 11, Laws of Lagos State, 2015). They commenced operations in the 3rd quarter of 2016.

While at Schlumberger Information Solutions, a Schlumberger business unit as operations Manager, she was directly responsible for P&L across 9 countries, and she effectively managed intelligent cost reduction, forecasting and budget planning. She also transformed the business showing real growth in 2 years (120% year-on-year with strong profitability 19%) and led the organisation through strong leadership including mentoring and developing human capital and highly focused customer delivery teams.

More so, she successfully delivered strategic/ operational mid and long range plans and promoted Schlumberger’s policies, standards and commitment to Quality, Health, Safety & Environment (QHSE) to customers, and maintained the culture within the team.

She worked closely with the sales organisation and played a pivotal role in capturing

new key customers generating over $10million in additional annual revenue in 2009.

She penetrated and grew new markets and customer base in the Gulf of Guinea region.

As Country manager Kenya & Ethiopia, she led, managed and grew Schlumberger business, built strong client relationships, supported operations efficiently, while focusing on eliminating waste and maintaining cost discipline.

Doyin managed industry affairs and interfaced with local authorities, government agencies and local professional bodies. She built local content initiatives and strong human capital pipeline.

As CEO of GE Oil & Gas, West & Central Africa, Doyin led, grew, and implemented GE Oil & Gas strategy in West and Central Africa and as Chief Strategy Officer, Sub Saharan Africa, she formulated and led the implementation of GE Oil & Gas in Sub Saharan Africa.

She was recently appointed to be on the board of Bonny Gas Transport Limited, a subsidiary of Nigeria LNG Limited.

Bonny Gas Transport Limited was established in 1989, following the incorporation of Nigeria LNG Limited, to provide shipping capacity for NLNG project. The company was set up with an ordinary equity holding from Nigeria LNG Limited and preferential equity holding from the sponsors, NLNG’s shareholders. The completion of Train 6 in 2008 increased the output of the Bonny Island fields, and of this new output approximately 50% goes to Europe and the other 50% to North-America. ​As it is a 100% daughter of NLNG, the ownership of BGT is the same as that of NNLNG and thus, NNPC owns 49%, Shell owns 25.6%, Total owns 15% and ENI owns 10.4%.

On October 2006, a deal was made with a consortium of banks to re-finance $ 680 million.

Binta Masi Garba Politician, Businesswoman & Administrator

tives election almost wrecked the party. Binta Masi Garba fought hard to unite the party in Adamawa state. She oversaw one of the most successful party primaries in Adamawa state as a seating chairman of the Adamawa state chapter of APC. She was given a waiver to con-

test for the senate seat in the party primaries and she eventually emerged victorious against her male contender. On 28 May 2015, she won the senate seat of Adamawa north senatorial district by winning in 3 local government areas of the 5 LGAs in the zone.

For sponsorship and advert placement contact: kemi@businessdayonline.com Published by BusinessDAY Media Ltd., The Brook, 6 Point Road, GRA, Apapa, Lagos. Advert Hotline: 08033225506. Subscriptions 01-2950687, 07045792677. Newsroom: 08169609331 Editor: Patrick Atuanya. All correspondence to BusinessDAY Media Ltd., Box 1002, Festac Lagos. ISSN 1595 - 8590.