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y May this year, Akinwunmi Ambode will be stepping down as the governor of Lagos State. He would have spent four years in office by that date. Although a one-term governor, overseeing the affairs of Nigeria’s most populous and dynamic

commercial state for only four years, Ambode will, however, be leaving behind a legacy that will give Lagos and Nigerians a positive showing locally and internationally for years to come. If all goes well as recently hinted by Adebowale Akinsanya, the Lagos State commissioner for works and infrastructure, the Lagos airport road, which links the Murtala Mohammed Inter-

national Airport (MMIA) from Oshodi, will be completed and handed in a couple of months. Ambode secured the approval of the Federal Government to redesign and expand the road in June 2017 and eventually flagged off the reconstruction work in September of same year. What is currently happening on the federal road leading directly to the international wing of the

airport had been long overdue, but successive governments had turned a blind eye and showed less concern about the pain that Nigerians, international tourists, visitors and motorists had been subjected to for years as a result of the poor state of the airport road. But that narrative is changing and, in the words of John Amadi,

Continues on page 34

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How Ambode is changing ugly narrative of Lagos airport road JOSHUA BASSEY

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ECONOMICS

This #TenYearChallenge analysis shows Nigeria’s economy failed to grow up OLUWASEGUN OLAKOYENIKAN & DAVID IBIDAPO

he last ten years have brought several developments to Nigeria, but as many as they appear, they were overwhelmed by bigger chal-

Continues on page 34

Inside Atiku’s US visit seen boosting electoral chances Ongoing reconstruction of Murtala Mohammed International Airport (MMIA) Road, Lagos, nearing completion.

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Friday 18 January 2019

How cancer, kidney, fertility patients are being priced out of health care ANTHONIA OBOKOH

rocuring healthcare services in Nigeria could be quite expensive, and for people with certain conditions such as cancer, kidney and fertility challenges, the burden becomes almost unbearable. This is more so when payment is done out of pocket and not through any insurance cover such as the National Health Insurance Scheme (NHIS). This has varying consequence for the patients, their families and even employers as the impact is felt at different levels of relationships. This is expected to worsen this year as hospitals, pressed by rising cost of drugs and other supplies, are increasing the fees charged to patients. For hospitals, many lose money when patients, after getting treatment, are unable to pay their bills. Nigeria’s minimum wage is N18,000, whereas roughly 95 percent of the citizens have to make out-of-pocket payment to meet their health needs. This leaves just about 5 percent of Nigerians covered by any form of health insurance. “We have lost so much from our earned income paying for our mother’s medical bills and treatment. To worsen it all is the pressure

from the long queue for treatment, and every time there is a sad story of the radiotherapy machine breaking down,” said Ikechi, whose 58-yearold mother has breast cancer. Ikechi’s mother (name withheld) was diagnosed with breast cancer on her right breast in 2012, and it had to be surgically cut off that same year. Since the surgery, Ikechi said, the family has been taking her to the clinic for check-ups, spending on drugs and some treatment therapies. “We believed that the cancer had been cured. However, at a point in 2018, she started developing pains again from the breast to the waist, six years after the surgery was done. We went to another hospital and a CT-scan was carried out in August. The doctor said the result shows that the cancer has spread all over and it is eating her up,” he said. “When we took our mother home, after the results confirming that the cancer has spread, it took us two months as a family to discuss how to raise more money to continue her treatment, because we had spent so much in the last few years. Between the months of September till now we have spent not less than 1.5 million naira,” he said.

•Continues online at www.businessday.ng

FG targets 5m agric jobs on $1.1bn Brazil loan TONY AILEMEN, ABUJA

ederal Government is targeting five million jobs from its “Green Imperatives”, an agricultural initiative launched on Thursday by Vice President Yemi Osinbajo, to be funded with $1.1 billion loan from Brazil. Osinbajo described the project as “signature-focused” and “a game changer”, as the project will lead to mechanised agricultural revolution. “We cannot bring our nation out of poverty without investment in agriculture. Also, the sheer number of young people coming of age will not only need to be fed but employed. They want dignified jobs with decent pay,” Osinbajo said. “Today, we are producing paddy rice as much as we need because of mechanisation of agriculture. The only way to make the quantum leap required in our economy is what we are doing today with this project, the Green Imperative,” he said. One of the reasons young people don’t warm up to agriculture is because it is not mechanized,

Osinbajo said, promising that the project would change all of that. “We have made a significant difference in creating food sufficiency and decent jobs. We have ensured that this will be private sectordriven,” he said. The Brazilian Ambassador to Nigeria, Ricardo Guerra de Araujo, said his country was ready to assist Nigeria create centres that will assemble 10,000 tractors annually. He revealed that the country will also create 707 centres to train not less than 10,000 Nigerian farmers, mostly youths, to encourage farming in the country. “It has become imperative to make agriculture attractive to young farmers since this is the only way to develop human capital. The truth is that agriculture has the potential to create jobs for millions, support small scale farmers to actualise their potential,” he said. The ambassador also called on the Nigerian government to urgently work hard to halt the challenge of post-harvest losses estimated at billions of naira. •Continues online at www.businessday.ng

Umaru Ibrahim, MD/CEO, Nigeria Deposit Insurance Corporation (NDIC) (3rd l); Aghatise Erediawa, executive director, operations, NDIC (1st l); Omolola Abiola Edewor NDIC, executive director corporate services (2nd l); Ademola Adebise, managing director, Wema Bank of Nigeria plc, and his deputy, Moruf Oseni, who led the Wema Bank management team on a courtesy visit to the Corporation`s head office in Abuja.

MARKETS

Life Insurers to see margin expansion as industry pressures remain BALA AUGIE

ife Insurers who sell annuity are set to see margin expansion when they release full-year results as the rest of the industry is expected to remain pressured by claims, underwriting, and operating expenses. Mounting expenses and slow growth in premium incomes have been a drag on bottom-lines (profit), but firms that are liquid enough to have been able to invest in shortterm government securities, fixed income securities and real estate should be compensated for slim underwriting profits. Fola Lawal, an industry expert, said short-term insurance companies suffered or concluded negotiations on a number of high-profile losses in 2018, and this would put pressure on margins. Lawal, however, added that life companies, particularly those who sell annuity, may see improved margins from investment returns. “Whether they end with lower or higher margins compared with the prior year depends on how they manage underwriting expenses, including claims and reinsurance expenses,” said Lawal. If past events are a projection for the future, then these analyses validate Lawal’s views. For the year ended December 2017, for instance, Leadway Assur-

ance Limited recorded an underwriting loss of N10.41 billion due to huge claims expenses and increase in annuity fund, but the company made a net income of N13.83 billion, thanks to the N35.26 billion it realised from financial assets. First Bank Insurance Limited’s underwriting income dipped by 31.92 percent to N2.73 billion in 2017, but a N3.97 billion income from treasury bills and N1.76 billion interest income from bonds added impetus to bottom-line as profit increased by 54.20 percent to N3.67 billion. A.R.M Life Plc recorded underwriting loss of N121.01 million in 2017, but it made a profit of N106.82 million, thanks to interest income from short-term government securities of N1.28 billion. “Generally speaking, there will be pressure on profit margins,” said Owolabi Salami, executive director, Allianz Nigeria Insurance Plc. “The cost of doing business has gone up as we are paying more for diesel. Staff costs have spiked because we have to pay more to retain a talented workforce,” said Salami. However, firms that are liquid and have invested in short-term government securities, such as treasury bills when rates were high, could see investment income underpin profit, Salami said. An industry expert who doesn’t want his name mentioned said undue competition has resulted in

low pricing, as the environment is increasingly becoming businessunfriendly. Data from the Bloomberg Terminal shows full-year 2018 net profit margin estimates for the NSE Insurance 10 Index – lists of largest insurers by market capitalisation – at 6.71 percent, compared with 11.34 percent recorded the previous year. Analysis of the group of 19 insurers tracked by BusinessDay shows aggregate net income for the third quarter of 2018 reduced to N13.77 billion, from N15.72 billion the previous year, causing a drop of combined average return on equity (ROE) to 7.41 percent, down from 8.23 percent in 2015. These declining profits come despite a 6.31 percent increase in aggregate shareholders’ funds for companies, marked at N191.91 billion as of September 2018, according to data gathered by BusinessDay Experts are of the view that harsh operating environment affects insurance companies more than some other sectors. Nigeria has an insurance penetration of 0.30 percent – one of the lowest figures in the world – compared to South Africa’s 14.7 percent, Kenya (2.8 percent), Angola (0.8 percent), and Egypt (0.6 percent).

•Continues online at www.businessday.ng

London Stock Exchange Group opens NSE’s eyes to possible IPO target firms IHEANYI NWACHUKWU

ost of the companies which the Nigerian Stock Exchange (NSE) is hunting to meet its new listings target are very much within. This comes as no fewer than 97 Nigerian firms are identified by the London Stock Exchange Group (LSEG) as crucial in powering the next stage of Africa’s growth. These Nigerian companies were named in the report ‘Companies to Inspire Africa 2019’ which featured

…identifies 97 Nigerian companies crucial for Africa’s future growth 360 companies from 32 different countries across the continent. These companies are said to be boasting an incredibly impressive average compound annual growth rate of 46 percent, up from 16 percent last year. Most of the identified companies should be attractive for listing on the NSE if well engaged by the bourse. The LSEG said the firms it listed in 2018 ‘Companies to Inspire Africa’ report have already realised significant progress and achievements in the last 12 months in a variety of

ways, including pursuing Initial Public Offerings (IPOs) and issuing bonds to grow, while some have also undertaken cross-border expansion, both within the African continent and globally. “The growth rates and sector diversity of the firms featured highlight their potential to transform the African and wider economy and become the big global job creators of tomorrow,” said David Schwimmer, CEO, London Stock Exchange Group. “While capital markets have long been associated with larger compa-

nies, 23 years ago we did something different, launching a capital market specifically for high-growth potential companies, Alternative Investment Market (AIM). It is now the most successful global growth company market in the world and has raised over £110billion for nearly 4,000 companies in little over two decades,” Schwimmer said. The list features a diverse range of industry sectors, painting an encouraging picture of the future of the African economy. Consumer services, industry and agriculture

are the three biggest sectors, between them making up over 50 percent of the companies featured. Technology & telecoms and financial services together represent over 25 percent of the firms, while healthcare & education and renewable energy also feature strongly. The identified Nigerian companies said to be crucial for the future of the African economy include 3 Wise Pixels Ltd, AACE Food Processing and Distribution Ltd, ACIOE •Continues online at www.businessday.ng

Friday 18 January 2019

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Outlook for natural gas, LNG optimistic on cleaner energy demand … China, India markets to drive base demand STEPHEN ONYEKWELU

atural and liquefied natural gas market will remain bullish in 2019 due to the International Maritime Organisation 2020 regulation limiting high sulphur products and China’s decision to consume more LNG and liquefied petroleum gas (LPG). Under the new IMO 2020 regulation, ships cannot use fuels with more than 0.5 percent of sulphur, compared with 3.5 percent now, unless equipped with so-called scrubbers limiting the emissions. Natural gas consumption continues to expand across China’s economy, with base demand supporting growth. Adoption of low-sulphur fuels will accelerate LNG growth in countries such as China and India with elevated carbon footprints. China’s current five-year plan calls for shifting the generation mix to 55 percent coal by 2020 from 67 percent today, with natural gas the biggest beneficiary, according to a Bloomberg Intelligence report.

Shandong province plans to become a hub for LNG imports by increasing storage capacity to 4 billion cubic meters, while constructingenoughre-gasificationcapacity to handle 34.3 million tons a year across seven terminals by 2020. China’s natural gas investment is focused on increasing supply. China Petroleum is targeting $22 billion to offset domestic declines while boosting output, as the Belt and Road initiative fuels spending on ports, railways, pipelines and producing assets. The expansions will provide strategic reserves and natural outlets for equipment built by Chinesemanufacturersandshipyards. The Belt and Road strategy aims to create trade links across Asia, Africa and Europe, while allowing China to control investment, infrastructure, job creation and full-cycle economics. The capture of critical reserves is important for China to be self-sufficient in natural gas, given growing European and Asian LNG demand. China is focused on increasing consumption of LNG and

liquefied petroleum gas (LPG) by taking a multipronged approach of investing in pipelines, infrastructure, long-term contracts and gaining control of reserves in the South China Sea. China’s domestic natural gas production will be hindered by complications of depth and location, elevating costs. The Beltand-Road Initiative remains the driving principle of the infrastructure build out and supply-chain diversification. There is also rising LNG spot market activities that point to availability and possible oversupply, which in turn imply downward pressures on prices. However, energy experts in Nigeria suggest this may not impact significantly on Nigeria’s LNG exports because Africa’s largest crude oil producer has long-term sale and purchase agreements (PSAs) on its cargoes with buyers. “Except the situation lasts for much longer, this will not impact significantly on Nigeria Liquefied Natural Gas (NLNG) Limited’s exports,” Ayodele Oni, energy partner at Bloomfield Law-Practice said.

Nigeria’s electricity regulator lost 39% revenue to its insistence on cheap power GBEMI FAMINU

n a classic case of what g o e s a rou n d c o m e s around, the Nigerian Electricity Regulatory Commission (NERC) has recorded a deficit of N962 million in three months ending September 2018, which it attributes to poor revenue collected from operators in the power sector whom it has prevented from charging cost-reflective tariff. According to the Electric Power Sector Reform Act 2005 setting up the Commission, one key way it generates revenue is to collect operational levy from operators in the power sector as well as budgetary allocations from the Federal Government. However, since the commission has prevented operators from charging market tariff, its own revenue is now being heavily impacted. “During the third quarter of 2018, the total revenue realised by the commission was N1.052 billion – 38.6% lower than the revenue realised

in the second quarter. The decline in the revenue was largely due to decline in the operational levy (i.e. market charges),” NERC said in its third quarter market report released January 15. NERC had an outstanding liability of N1,004 billion from the second quarter of 2018, which they were able to reduce by N343 million to N661 million by the Q3 of 2018. A breakdown of the commission’s sources of internally generated revenue shows that the operational levy generated N856.48 million while other collective sources raked in N195 million. The company’s total revenue declined by 39 percent, falling from N1,712 million in Q2 to N1,051 billion in Q3 while recording a marginal increase of 2 percent in its total expenditure from N1,351 billion in Q2 to N1,353 million in Q3. The decline also cost the commission a net cash flow of N301 million, against the positive cash inflow of N361 million recorded in the previ-

ous quarter. Chuks Nwani, energy lawyer and vice president of PowerHouse International, an energy consultancy, said poor tariff had consequences. “The prevailing Disco tariff today was modelled against variables that have been overtaken by time and events and therefore does not reflect the true pricing of electricity. MYTO 2015 for Discos was built on 196/$1, 8.3% inflation rate, certain available capacity and therefore the final tariff was a product of these variables. “You recall that from late 2015 there were changes in these variables which would require reciprocal adjustment of the tariff but the government did not allow NERC to increase the tariff to meet up with the current realities. The shortfall that the Discos could not account for becomes a debt for the market which the government is under obligation to pay since it is at their instance that the tariff was not increased,” Nwani said.

Access Bank deepens learning in Lagos with block of classrooms, teaching aid HOPE MOSES-ASHIKE

n keeping to its corporate social responsibility (CSR) of complementing the physical infrastructure of schools across Lagos State, Access Bank donated a block of four classrooms, administration block of four offices, furniture and teaching aid to Community Senior High School, Akodo, Ibeju Lekki, to improve the overall outcome of teaching and learning process in Lagos. Idiat Adebule, the state deputy governor, said, “The intervention speaks volume about Access Bank’s passion for the development of education and increasing skilled

manpower to help the growth of the economy of Lagos State, and Nigeria.” According to Adebule, the new look of the school is bound to increase enrolment of students in its catchment area and help develop the potentials of the students. “This intervention in the education sector of Lagos State is highly appreciated. The renovation of a block of four classrooms and the construction of an administration block of four offices will make teaching and learning conducive for teachers and students,” she said. The deputy governor, who was represented by Solarin Margaret Titilayo, the tutor general and permanent

secretary, education district three, implored both teachers and students of the school to reciprocate the gesture by improving in the standard of education. “I charge the leadership of this community, staff and students of this school to take ownership of this project,” she said. Herbert Wigwe, group managing director of the bank, said part of the mission statement of the bank was that it want to give back to the communities where it operates. According to Wigwe, Access Bank recognises that without the communities the bank would not have been able to record the successes it did in past few years.

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NOVA Merchant Bank rewards excellence, promotes one-third of workforce

n fulfilment of its commitment to be the best place to work and its policy of rewarding deserving staff members, NOVA Merchant Bank has promoted about a third of its staff who have demonstrated exceptional performance in their responsibilities. These promotions come amid the growth in the bank’s business as it continues to scale up its operations, according to a press statement by Akinwale Olawoye, the bank’s chief compliance officer. In 2018, despite the tough economic and operating climate, NOVA in its first full financial year of operations, was able to deploy a stateof- the-art and fully digital core banking application and recorded impressive strides in customer acquisition as well as the roll out of some bespoke and innovative products. Speaking on the recent promotions, Anya Duroha, managing director/CEO of the bank, said, “The Board and Management remain commit-

ted to developing and rewarding the talent of its youthful workforce. “The bank will continue to leverage the innovativeness and dynamism of its young personnel to develop innovative solutions to enable our customers thrive in the marketplace. NOVA’s strategies rely heavily on the unique talents each staff brings to the table. We do not take this for granted.” Chairman of the Board, Phillips Oduoza, while congratulating the newly promoted staff, expressed the Board’s satisfaction and complete confidence in them and management of the bank and pledged to continue to support them as they strive to achieve their corporate goals and objectives while realising their personal aspirations. NOVA is a newly licensed merchant bank focused on providing wholesale and investment banking services. It commenced business in 2017 and has continued to boldly execute its roll out strategies.

Afriland Properties recognised in LSE Group’s report

friland Properties plc has been identified in the latest report by London Stock Exchange (LSE) Group as one of the companies that will inspire Africa in 2019. The report, the second edition and a celebration of Africa’s most dynamic growth businesses, identifies a new cohort of fast growing and dynamic businesses across Africa. Speaking on the report, Uzo Oshogwe, CEO, Afriland Properties, said, “We recognise the ‘cruciality’ of championing the development of Africa’s Real Estate market, while leveraging our values; Execution, Enterprise and Excellence. “This report further attests to our strategy and purpose to keep investing in the development, management and maintenance of Real Estate offerings across

Africa.” The report was produced in partnership with African Development Bank Group, CDC Group, PWC and Asoko Insight, who contributed their research and expertise to select the featured companies, and Instinctif Partners and Stephenson Harwood sponsor the report. Afriland Properties is a property management, investment and development company, offering end-to-end services along the real estate value chain, from management to joint-venture investments. With a portfolio size of over N15 billion and one of the largest land banks in Nigeria, Afriland is pioneering the opportunities presented by an institutional approach to real estate, serving niche markets throughout Africa.

Business reform: Over 200 MSMEs see prospects for competitiveness, wealth creation at EPC

ot less than 200 Micro, Small and Medium Enterprises (MSMEs) have said the Edo Production Centre (EPC) promoted by Governor Godwin Obaseki to support small scale businesses and provide opportunities for them to scale their operations, will boost productivity and wealth creation. The small-scale business operators belonging to the Manufacturers Association of Nigeria (MAN) and National Association of Small-Scale Industrialists (NASSI) indicated interests to site their businesses at the centre with the intention of taking advantage of the business support opportunities and conducive shared work space it provides. Speaking with journalists, a member of MAN, Valentine Asuen, said the incentives, which the EP Centre offers, would enable businesses run at minimal cost, as the centre provided a one-stop-shop for them to enjoy economies of scale as well as low cost of production. What discourages small business operators in most cases is the cost of rent and power, which

stifles their growth, he said, noting, “We are confident that when the centre starts taking in people in the next few weeks, things will turn for the better for entrepreneurs in the state. The centre will run on power that is independent of the national grid. The stable power will spur expansion of businesses.” An entrepreneur, John Idemudia, on his part, said, “At the last meeting we held with the representatives of the state government, we were assured that the centre will host different businesses such as furniture makers, cobblers, welders, bakers, polythene makers and a number of other interested small business owners. In a matter of weeks, it will become easier for customers to have access to different products to be manufactured at the centre.” He said the plans to provide adequate security and make the centre environment-friendly were what small business operators needed, adding, “such guarantees are incentives for anyone into small business operations to expand.”

L-R: Anant Rao, group executive, digital and consumer banking, United Bank for Africa (UBA) plc; Abideen Onifade, officer, Consumer Protection Council (CPC); Liadi Ayoku, executive director, UBA; Aminat Tunji-Akinwande, regional head, Lagos, UBA; Tomiwa Sotiloye, head, retail liabilities, UBA, and Nwanneka Ezeani, marketing monitoring and enforcement officer, National Lottery Regulatory Commission, at the first quarter draw of UBA Wise Savers Promo where 20 savings account holders won N1.5m each in Lagos.

Good news for property owners on Lagos-Badagry Expressway

… as FG, Lagos commit to completion from 2019 budget CHUKA UROKO

or investors and prospective homeowners who own properties along Lagos-Badagry Expressway, it is a piece of good news as the Federal and Lagos State governments have expressed commitment to completing the seemingly abandoned expressway. The Lagos State government in 2009 undertook the reconstruction and expansion of the expressway from six to 10 lanes, prompting many residents of the sprawling city to take economic position on the expressway by buying landed properties and developing same into individual homes or estates. Besides individual investments, institutions like Abbey Mortgage Bank have estates on the expressway. Abbey has an estate where it is offering three-bedroom bungalows for sale. MIDC Limited also has a sprawling estate that has about 750 housing units of different

types for sale. Other companies like CMB Investment and Next Dimension Limited have gated estates where plots of land are sold to prospective homeowners and long-term investors. All these investments are today abandoned at varying stages of development following the stoppage of work on the expressway by the Lagos State government, citing paucity of funds. But hope is in the air again with feelers from both levels of government. The federal government says the expressway will benefit from the proposed N2.28 trillion budget for capital expenditure in 2019. It is expected that when the budget is approved and signed, work would resume on the expressway. Similarly, the All Progressives Congress (APC) governorship candidate in Lagos, Babajide Sanwo-Olu, has repeatedly assured that the completion of the expressway would be his priority on assumption of office. “The ongoing 60-kilome-

tre Lagos-Badagry Expressway project being executed by the state government must be completed as early as possible. The expressway is so critical to the economy of Lagos that no effort must be spared to ensure their early completion,” Sanwo-Olu’s running mate, Obafemi Hamzat, assured during an interactive session with journalists. He noted that the project had two major intermodal transport schemes namely, the Expressway and the Light Rail Mass Transit with their accompanying infrastructure. It is a 10-lane superhighway taking off from Eric Moore interchange, traversing westwards through Orile Iganmu, Alaba Oro, Mile 2, Festac, Agboju, Iyana Iba, Okokomaiko, Iyana Era, Ijanikin, Agbara, Ibereko and terminates in Badagry. “The goal is to connect Lagos with the ECOWAS countries. The initiative would, no doubt, enhance the commercial and other business activities between the affected neighbouring countries,” Hamzat said.

What this means is that all the properties along that expressway whose value has dropped significantly, will start appreciating while all building projects that have been abandoned will be re-started. The most significant thing that will happen is the relocation of many people from the city centre, leading to decongestion and less pressure on available facilities. John Nwasike, who owns a two-bedroom house at Teju Royal Garden, Ijaniki, told BusinessDay that he had abandoned the house since 2016 when he could no longer cope with the gridlock on the expressway. “But, once the government completes the reconstruction, I will go back to my house”,he said with excitement. Hamzat noted that the LekkiEpe Expressway is as important as the Lagos-Badagry Expressway, assuring that it would also be expanded and reconstructed, especially from where it stopped now to the Lekki Free Trade Zone (LFTZ) in Akodo.

Service sector outflows drag down Nigeria’s current account balance in 2yrs DAVID IBIDAPO

isingoutflowsintheNigerian services sector was a major factor that saw Nigeria’s currentaccountintonegativezone,according to a report earlier released by the Central Bank of Nigeria (CBN). The Q3 2018 report revealed that Nigeria’s current account dippedsignificantlyby257percent year-on-year (y/y) to a deficit of N948.74 billion against a surplus of N602.5 billion in corresponding period of 2017. Quarter-onquarter (q/q), her current account recorded a fall by 170 percent from N1.36 trillion recorded in Q2 2018. Meanwhile, Nigeria’s service accountrecordedadeficitincrease by 36 percent to N2.146 trillion from N1.58 trillion q/q. To this end, the service account stood as the biggest deficit recorded in the Nigeria’s current account. Also, y/y deficitincreasedby65percentfrom

N1.29 trillion. The Nigeria current account trend has shown that since 1999, Nigeria recorded current account deficits in 2002, 2005 and 2015. Deficit reported in Q3 2018 therefore is the first in the last 2 years. According to report by the NationalBureauofStatistics(NBS), deficit was driven by a 70.5 percent q/qsurgeinmerchandiseimports, as the result of imports of drilling platforms for the energy sector. However, from data generated from the CBN’s latest Quarterly Statistical Bulletin, sharp increase in freight debit by 78 percent to N293.7 billion ($960m) in Q3 from N164.5 billion ($540m) the previous quarter. This was the largest growthundertheserviceaccounts section of the current account. A country’s current account reflects balance of trade and earningsonforeigninvestment.Adeficit incurrentaccountduetospending more of its currency on importing products than it is earning through

saleofexportscausesdepreciation. BusinessDay analysis of periodswithnegativecurrentaccounts since 2000 has revealed significant devaluation of the naira against the dollars. In 2002, naira recorded devaluationby8percentinvalueas current account recorded deficit of N117 billion. In 2015, the value of naira also declined by 21 percent as current accountdippedtoadeficitofN3.03 billion. This further increases the possibilities of a further decline in the value of naira in 2019, approving analysts’ view on naira devaluation. A second reason for the marked increase in total services debits in Q3 from $6.34 billion to $8.59 billion can be found in the segment for personal travel: debits rose from $1.78 billion to $2.52 billion over the quarter. According to FBNQuest, “This underpins a point we have frequentlymade.Businesstraveldeb-

itswerelittlechanged,reflectingthe weaknessofthebroadereconomy, whilespendingonpersonalhealth and education needs has soared. “The CBN makes FX available on a regular basis to retail for invisibles. Debits for both health and education have been steadily rising, and have totalled $1.30 billion and $3.51 billion over the past four quarters, respectively.” Several emerging economies boast substantial services credits on the current account. Egypt, for example, has reported a services surplus for 2017/18 (July-June) of $11.1 billion, compared with $5.6 billion the previous year, on the back of Suez Canal receipts of $5.7 billion and a positive balance on travel (tourism) of $7.4 billion. “Nigeria will not become a leading destination for foreign tourists in a hurry. Its best bet on the services account is probably monetising the film industry,” FBNQuest said.

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Creativity: The nature and types of ideas EIZU UWAOMA Uwaoma is a start-up, corporate restructuring and strategy consultant. He writes via contacteizu@gmail.com

he mind is so much like a parachute. It only can work when it’s open. There are three main components of our lives, the spirit, mind and body in that order. When the spirit functions right, it aligns with the mind to manifest ideas, insights and concepts that disrupt physical, enterprise and bodily things. Ideas rule the world. And Africa needs people with quality ideas to spark a new era of a quantum leap. Now than ever, from politics to enterprise systems, we need creative ingenuity. Most people don’t know how to get to a state of creativity, a shift in mental equilibrium. At the right entropy-enthalpy state, your spirit generates to your mind great ideas, insights and concepts. Only a few get to that creative state, the ability to think different.

When we all think alike, then no one is thinking. It’s important to think different. Think out of the box, as a matter of fact, think like there’s no box. Today, let’s explore the dynamics and natures of quality ideas in business. In doing so, we master how to duplicate them. There is a trend to creative people and nature of their ideas. There are different types of enterprise ideas, lets group them into the following categories: 1. Simplified idea: Here, you want to make a process and task much easier for your users (e.g Instagram’s layout using just photos as against Facebook, or Whatsapp which for me was Blackberry messenger but without a pin). It’s an idea that simplifies a process. 2. Me too ideas: With this type of idea, you take an already existing idea but then you introduce it to a new market /geography (e.g MaxGo, regarded as the Uber for bikes in Lagos; with an app, you can call a bike to come pick you up). Another example will be AliBaba, it’s more like Amazon from China. 3. Virtual idea: Moving a business to the internet (e.g Wikipedia, which is like encyclopaedia on the internet, drop box which is like hard drive on the cloud/internet). They are mainly disruptive. 4. Remix idea: This refers to combining two or more ideas together ( E.g Slack for example is an online messaging at the same

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Creativity is a free gift that still needs to be nurtured. It is the gateway upon which the universe freely delivers ideas through our spirit for the betterment of our lives and that of others. It’s left for our mind to master how to invoke it

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time a team collaboration app that still makes all content searchable. With Slack you can work with your team on a group and still with the same app place an order for some food). 5. Mission impossible idea: Doing what haven’t been done: Virgin Galactica, is more like an airline to the moon. It is to take us to create real estate and space travel accessible to the general public. Beyond types of ideas, there are trends to having ideas. Find out lifestyles, people, places and time of the day that stimulates your creative juices. Then stay there more. For example, I have learnt to leverage

on the power of 4AM; I think better at that time of the wee hours. Long walks too. When I am in flight, it comes pouring, so I have learnt to have a jotter or a notepad app close by. Ideas are volatile and they sublime, learn to condense them into a note else you may forget it. I have learnt to also be open to everything and attached to nothing. I used to be secretive, now I share ideas, after all, that’s what they are for. Creativity is a free gift that still needs to be nurtured. It is the gateway upon which the universe freely delivers ideas through our spirit for the betterment of our lives and that of others. It’s left for our mind to master how to invoke it. Ideas, dreams and goals are somewhat over rated. At any given point, it’s never one person per idea or dream. It rarely comes out fully formed, hence a need for collaboration. While we attribute the first sets of touch screen key pads to the likes of Apple with the iTouch and iPhone, it may interest you to note that Casio had a touch screen watch from way back in 1984 (same year as the original Mac) where you would draw numbers on the screen using your finger to write a 1 or 3 or plus or minus. Biblically, even more than one person saw the dream and vision of the birth of Christ talk less of the birth of that your small idea that you have been hiding. Dreaming is not a fruit of the spirit, it’s a gift of the spirit. It’s a free gift, so don’t be greedy or stingy with it. I remember Mo Abudu a few

years ago saying to us during my Moments with Mo shoot that it’s better to own 10% of something that makes sense than 100% of nonsense! She followed that principle and today owns Ebony Life TV. It’s better for it to be stolen or collaborated on than for it not to see the light of the day because you hid it. The heaven in us through the spirit manifests mainly as ideas, insights & concepts. Better yet, dreams. Also, it’s safe to state that universe freely gives ideas and dreams in abundance so it’s not just you, anyone can have them. Execution is the main thing. And in execution seek team work. Just like Isaac Newton said, “If I have seen further it is only by standing on the shoulders of giants”. Find shoulders, ask questions and keep an open mind. After you have an idea, do a Feasibility and environments scanning of it; if it passes the test, then set a goal, set right theStrategy and Structure for achieving it. And then ruthlessly execute and follow through. In that order, it’s really that simple. The world is waiting on you for that next big idea. But true leadership begins with us leading our innate selves to purpose till it positively affects others. It pays, I can practically say that. Remember, a leader is one who knows the way, goes the way, and shows the way. Lead your idea.

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The suboptimal ways organizations shouldn’t hope for the best in 2019

‘Uju Onwuzulike’ Uju Onwuzulike is Nigeria’s leading authority on Systems Thinking and Strategic Management. He was a Steve Haines trained strategy and systems thinking expert and a former global partner of Haines Centre for Strategic Management, California, USA. He is the founder and Chief Results Officer of MCL – a strategy and outstanding performance specialist firm. He can be reached on 09091142093 or uju. onwuzulike@mclgroup.net.

s we journey in this New Year of 2019, virtually every organization will hope and expect the best to happen to them. The irony is that even organizations that have not developed their core strategies, evolved any game plan, or have not taken definitive steps towards achieving their desired results will still hope for this ‘same’ best. The truth is - the best does not come to organizations who are mere positive or who are wishing for the best. The best will and can only come to organizations that can match their desires with equal amount of strategic and time bound actions. Over the years, some executives and managers have unwittingly used

one key phrase and that key phrase has not worked in the best interest of organizations. They have told their subordinates, “just be positive and everything will work out fine”. Imagine a situation where someone tells his manager about his/her inability to meet a target or perform an expected task, and what the manager tells him/her is don’t worry - just be positive and everything will work out fine. With that kind of response, there is no way that particular staff member will bring the best for his/her organization. What the manager has done was to simply hope for the best – without proffering solutions or asking what can be done to have an optimized results. Dr Martin Seligman was right when he said, “If the cost of failure is high, optimism is the wrong strategy”. Organizations are failing more than ever before because, they always assume some magical effect will turn around their situations. Such organizations believe that by hoping for the best, the best will graciously and calmly come to them – that is mere optimism and it does not happen most of the time. In order to achieve higher and sustainable results for the year, organizations and individuals would need to move from mere optimism to Optimal Thinking. The difference is that mere optimism will say, ‘our organization wants the best for 2019’, while Optimal Thinking will ask, ‘what can we do to achieve the best for our organization in this 2019, what are our options’? What

strategy can we adopt? After sharing with participants in one of our workshops on “Developing a Highly Productive Workforce” in 2014, I realized an important fact. Many people can memorize their company’s visions and goals but do not understand or know the step-by-step actions to be taken to realize their goals. Every organization’s vision could be a wishful thinking if they lack a visible implementable game plan for achieving success. Let us assume that a particular bank in Nigeria has projected a profit of 100 million US Dollars come this 2019. To show a mark of seriousness and commitment, that particular bank is expected to provide answers and measures to the following questions below: 1. Is achieving the profit of 100 million US Dollars in our best interest? 2. Do we have the right structures and processes in place? 3. What are the best actions to be taken to achieve our goal? 4. What can be done differently in order to achieve the result? 5. Are there right people that will achieve the results? 6. What are the step-by-step strategies or game plan for the 100 million US Dollars attainment? Without providing compelling structures and answers to the above, achieving the 100 million US Dollars profit will be difficult and impossible. The way forward for any organization that wants to succeed and thrive in this year is to avoid leaving one’s success to chance or serendipity. When your organization is not working, others are working and that means they are

trying their best to be better than you are. More so, many organizations have mastered the art of suppressing negative signals or negativity to their detriment. Most times, they tend to ignore negativity. Negative signals, events, thoughts and feelings are not resolved in our organizations when we suppress, deny, or devalue them. It would be like heaping layers of unresolved problems, which will ultimately affect our morale, stress level, productivity and teamwork. It is like putting a coat of fresh paint over rust. Eventually, the paint peels off and the rust resurfaces. What will a proactive organization who wants to achieve better results do? That organization will have to acknowledge the rust (which could come in any form detrimental to the organization), treat the rust, and then apply the best paint in order to have the finest result. In the long run, no organization can achieve better results by suppressing negative signals with positive thinking. Organizations that want to better their results in this 2019 and beyond must primarily acknowledge the reality on ground and try to optimize the situation and not sweeping the negative signals under the carpet. Points to ponder: a. Does your organization have a step-by-step basis of how to achieve the best for 2019? b. Has your organization confused wishful thinking and positive thinking with optimal reality? - How can you bring clarity to your organi-

zation? c. What does the ‘best’ mean to your organization and the entire workforce? d. Do you know that whenever your employees think sub-optimally and seek to improve – rather than maximize, the company’s sales and profits are compromised? Final note: Hoping for the best has been totally misconstrued and sometimes abused by many organizations. These organizations more often than not hope for opportunity to knock on their ‘business’ doors. I like the saying – ‘if an opportunity does not knock, you will need to build a door and knock on the opportunity’. That means, we need to be adept and systemic in creating opportunities for our organizations even when they do not exist. It also means that we need to be proactive, decisive and above all an opportunity builder who does not sit all day long waiting for the best to magically come his/her way. What would your organization do differently in order to invite the best results? As always, I welcome your comments, questions or requests. Would you want to know how most organizations sabotage their results and performance efforts and how they can employ optimal thinking to drive superior and optimal performance? I would be glad to show you how! Have an optimal thinking year.

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The future of healthcare in Africa: The need for urgent and radical innovation

Olukunle A. Iyanda Dr Iyanda is Founder/Chief Executive Officer, BROOT Consulting, Lagos Email: iyanda@brootc.com Tel: 08039788027 “In all hospitals, even in clinics, there is no love. When you arrive at the hospital, they give you the patient form. He holds his pen. You tell him: Papa, write, my child is dying; he will answer, pay the money. He even crosses his legs; you are anxious, fidgeting and he will insist that you pay the money. Before the money arrives, the child dies. There is no love there. To use the hospital, it is money in full, or you will die if you do not have the money” (WHO, Focus Group Discussion women, 2012). frica narratives are changing positively; however, the encouraging development success is being seriously challenged by the weak health care system and the exploding population. African population is projected to reach 2.5 billion by 2050 and hit 4.4 billion by 2100. The unchecked population growth in the midst of poor healthcare systems, unemployment, insecurity, illiteracy, and many others is a significant threat to any meaningful development in Africa. Most African communities are still troubled with poor sanitation, malnutrition and lack of clean water despite the advancement in environmental and healthcare technology. Careful attention to the problem, however, presents growth opportunities and a huge market that could dwarf China’s. The place to begin the radical transformation is for African governments to give an unwavering commitment to improving the healthcare of her citizen. In 2017, the World Health Organisation (WHO) reported that Africa bears 66% of the global burdens of HIV/AIDS, but only one-third of the population has access to antiretroviral medicines. The average life span is 61year for

male and 64years for the female when compared with the global average of 70 years for male and 74 years for female. On a country by country basis, there are African countries with 50 years life expectancy. The above statistics encourage skepticism among other nations who see Africa as a continent that could not realize her potentials. To change this narrative, a radical approach is required to dramatically improve access to basic needs of life; healthcare and other poverty-related issues, otherwise the continent may become dangerously chaotic by the year 2050. Lagos, Nigeria Key challenges confronting Africa Healthcare Africa is responsible for 25% of global health burden but only accounts for 1% of global healthcare spending and a paltry 3% of the global health workers. The healthcare sector in Africa is bedeviled with a shortage of healthcare workers, inadequate infrastructure, abysmally low healthcare investment, weak regulatory framework and endemic corruption. Added to this is the prevalence of counterfeit drugs, in its report of 28th November 2017, WHO estimated that one in every ten medical products is substandard or falsified and 42% of these products are located in Africa. People go for this cheap alternative due to the high level of illiteracy and poverty coupled with a health care system that is mostly dependent on payment out of the pocket for hospital bills. Unfortunately, the situation is exacerbated in rural areas where there are little or no hospital facilities. The above-enumerated challenges call for a radical approach in order to break away from the shackles of underdevelopment. Radical innovation in healthcare How can Africa reinvent its health care system? How can the continent benefit from the ongoing disruption in the healthcare sector? What business models need to be implemented that will bring about a radical and sustainable innovation to healthcare delivery? innovative solutions for Africa healthcare must address the issue of accessibility and affordability. The radical and urgent innovation

needed should transform the existing practices and thinking since majority of those practices and policies have failed her citizen. The radical innovation required for the healthcare industry must place power in the hands of the people, it must be private sector driven, it must drive down the cost of care and develop products that are accessible to every patient. A paradigm shift is also required, it should embrace preventive health, rather than concentrating effort on the costly curative care that compels the government to build grandiose physical facilities that they are unable to maintain. Ernest Darkoh, the founding partner of Broad Reach Healthcare, an African healthcare services company, summed this up when he said that “the most successful outcome should be defined as never needing to see the inside of a hospital. The continuous need to build more hospitals and clinics should be considered a sign of failure. We must make disease unacceptable instead of building even larger infrastructure to accommodate it”. The following measures could trigger some of the needed changes in the healthcare sector. • Redefine government role: government focus should gradually shift towards capacity building such as funding of medical education training and research. Creation of an enabling environment that will significantly ensure quality health care, Government should relinquish the current role of being a player in the industry to that of a regulator. Currently, most government hospitals buildings are dilapidated and equipped with obsolete equipment. The hospital is poorly managed and also poorly funded. The government should leave the issue of the development of physical infrastructure to the private sector. The budgetary allocation for that should have gone into erecting such structure should go into training, research and skill development of healthcare workers, and provision of health insurance to the extremely poor. • Suspend tariff on medical and pharmaceutical products: tariffs have compounded the healthcare problem than what could be imagined. If the African governments are serious about giving quality health to its people, then it should suspend imposition of all forms

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To make health care accessible and affordable in Africa, strong emphasis must be placed on prevention than the expensive treatment of illnesses for which, we may not have sufficient investment to acquire all the sophisticated diagnostic equipment. The keywords for Africa Healthcare are availability, simplicity and affordability

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of tariffs on medical and pharmaceutical products. • Remove barriers to healthcare investment: an aggressive growth is achievable if investment in health care is attractive. To drive down the cost of healthcare delivery, all bureaucratic barriers that encourage corruption must be eliminated, while lending rate to healthcare projects should not exceed single digits. • Invenctify preventive care: America is the biggest spender on healthcare with an average of $8,362 per person. Its neighbouring and isolated country of Cuba spends an average of $431 per person, but both countries achieve an average lifespan of approximately 80 years. What is required in Africa is an effective and efficient system that makes the citizen live a quality life? The focus should not be on the sophistication of the facilities or the grandiosity of the hospital because with all the high cost of care the US healthcare system still lags behind 36 other countries in the overall health system performance. • Adopt simple technological Innovation: Africa was able to leapfrog into mobile telecommunication system, and with this technology, it can achieve so much more. Mobile phones

are powerful tools through which Africans should be able to receive authentic medical services regardless of their location. In 2007, a Ghanaian innovator, Bright Simons founded mPedigree – a firm that makes use of technology to confirm the authenticity of a drug by sending an SMS. In Nigeria, there is a Mobile Authentication Service (MAS) to curb the issue of fake drugs. There is Matternet in Malawi for the delivery of HIV testing kits to clinics and hospitals. In another development, Doctors Without Borders use drones to transport TB test samples from a remote village in Papua New Guinea and have used the same drone tech to deliver condoms and birth control to women throughout Ghana successfully. All these are low-cost innovation that can make healthcare accessible and affordable. Quality health care can be achieved without deploying overtly expensive infrastructures, this has been proven beyond reasonable doubt in Cuba. To make health care accessible and affordable in Africa, strong emphasis must be placed on prevention than the expensive treatment of illnesses for which, we may not have sufficient investment to acquire all the sophisticated diagnostic equipment. The keywords for Africa Healthcare are availability, simplicity and affordability. The private sector should come up with a radical innovation that creates new value networks that will eventually disrupt the current inefficient systems and practices. The current situation for healthcare workers is appalling, and this has compelled thousands of them to migrate to developed countries. If the government invest massively in the capacity development of these health care professionals without the corresponding improvement in their condition of service, the investment will only have negative growth in the sector. One does not need too much foresight to imagine what the future holds if nothing is done. We must look towards the areas where healthcare is underperforming and radically apply new business models that will lead to transformational and sustainable growth.

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Africa’s black tax: A sustainer of the poverty cycle

Feranmi Ajetomobi Ajetomobi is an engagement strategist at CowryWise, a fintech company solving the problem of access to financial planning, automated savings and high-quality investment.

eranmi handles brand engagement at Cowrywise, a wealth-tech company solving the problem of access to financial planning, automated savings and high-quality investments. Recently, Twitter was agog with a short but relatable tweet of a young lady (@Ojima4) a tweet with content synonymous to what is known as the black tax in the southern parts of Africa. The black tax is a tradition so common that it

earned a prominent spot in Trevor Noah’s “Born a Crime”, really beautiful book by the way. To properly explain the black tax, we can lend the words of Gerald Mwandimbira of the Savings Institute, South Africa. In an interview with Vukuzenzele, a publication of the South African government, he said, “Black tax sees a person’s salary portioned off to support older parents or an extended family while trying to raise a young family.” Further, he said, “This puts one’s responsibilities in a ‘sandwich’ and hence this is often called the sandwich generation. The sandwich generation supports the generation above them, as well as the generation below. Making it difficult for the sandwich generation to save, which will, in turn, pass this tax down to future generations.” The consistent trend of difficulty with savings due to this “tax” can lead to a vicious cycle of generational dependence if not

managed. Probably the root of this culture can be traced back to a common African saying — “It takes a village to raise a child”. Although there is a positive side to this saying, it also implies that enjoying success alone, as an African, is almost impossible. This isn’t to say that there is anything noble in enjoying the benefits of your success on your own, especially without those that helped raise you, but when does sharing become harmful? When you find yourself not being able to take care of your necessities because you are too busy helping others, a line needs to be drawn. You need a balance to be able to sustain the help you lend out to others. A number studies suggest that a majority of Africans are doing a poor job with savings and investments. Hence, sharing from what is probably not managed properly can only make things worse for the one who is being the good Samaritan. So the big questions are: How can you do better with your personal finances?

How can you effectively juggle your needs and the needs of those who supported your development? Answering the first question makes the solutions for the second a lot easier. Starting with the first, these are a few suggestions: Although the black tax is almost unavoidable, you have a right to keep the total value of your income to yourself. If this can happen without any violent face-off with family members, please make your income your personal business With your income well guarded, commit to budgeting your income properly and building an emergency fund. An emergency fund should contain 3 to 6 months of your living expenses. In my next post, I will expand on the process of building an emergency fund. On juggling your needs with those of others you love, you should consider the following suggestions: In your budget, set a cap for the black tax and stick to it. How do you stick to it? Pay yourself first and place up your savings and

investments in locked accounts. Online wealth-tech platforms like Cowrywise can help automate savings into locked high-interest plans. Set a necessity test, one that will guide what you pay the black tax for. Items should border around survival needs — feeding, housing, schooling and health. Learn to say “no”. This is probably one of the most potent tools for preventing unplanned spending. If it isn’t a case that is a lifethreatening one and doesn’t pass your budget or necessity test, kindly turn down the request. Saying no is a lot easier when you have first suggestion sorted. A choice to manage the black tax will not only help you do better with your savings and build wealth, but it will also prevent you from becoming dependent on your children when you get older also. Do them a favour by making the right choices today.

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A lame-duck president

here is a familiar pattern with this president. He is not aware of anything embarrassing done by his appointees or subordinates, even if the buck is supposed to stops on his table. Perhaps, that is why he doesn’t say much and delegates virtually all his duties to aides and subordinates so that if anything goes wrong, he could deny responsibility. That is why the president has denied virtually all his campaign promises in 2015 because they were made by the party and not by him directly. Notice he has also handed over his re-election campaign to others. Should he be elected and he can’t fulfil all the promises that are being made in his name, he will again deny the promises. But there’s also a genuine fear that he is not really in charge, being walled-off as it were, by a retinue of his appointed aides and told only what the aides wants him to hear. That is why, for instance, the former Inspector General

of Police, could disobey his direct orders and he will not know for two months. Even after getting to find out, he could not take any action to discipline or sanction the erring officer. In like manner, the former DSS DG and his kinsman will directly sabotage his appointee, Ibrahim Magu, sending to the Senate damaging report about the proposed EFCC chairman twice and urging the upper chamber not to confirm him. Is it any wonder then that even the first lady has been shouting herself hoarse, complaining that the presidency has been hijacked by a cabal of two or three persons and control her husband thereby limiting his ability to perform to the expectations of Nigerians. But he appointed all the aides and they are answerable to him. Following the shambolic and illegal arraignment of the Chief Justice of Nigeria at the Code of Conduct Tribunal and a motion that he recuse himself and stand down from office, the Vice President has come out to say the president was not aware of the arraignment of the Chief

Judge and only got to know on Saturday. True or false, this is very bad and dangerous for the country. It could be that the whole thing was done with the approval of the president and now that it has hit a brick wall, the presidency is engaging in “plausible deniability,” a practice popular in the US where the CIA carry out operations and the president of the US always deny knowledge of such actions. That is consistent with the character of the president or his administration and cannot be ruled out. It could also be that the president truly, wasn’t aware of the whole operation. We feel that is even more dangerous for the country. That a group of unelected aides or appointees of the president could conspire to prosecute the Chief Justice of the federation – the third and coordinate arm of government – and seek to illegally remove him from office without the knowledge of the president is outright dangerous and Nigerians cannot afford to ignore that threat. Even the wife of the

president has been shouting herself hoarse over this same issue, alleging that her husband’s government has been captured by a powerful cabal. Yet, critical stakeholders in the Nigerian project hide their heads in the sand and pretend as if all is well. As we have often maintained, “in a normal democracy, the legislature, who constitutionally performs oversight functions on the executive, will publicly name and quiz such individuals and protect the Presidency from being hijacked.” But in Nigeria’s case, even the parliament is not totally immune from the influence of this cabal. The threat to the nation is clear: There is likelihood that a shadowy group is operating and running the government and the country independent of elected government personnel and are threatening to destroy the country and all its institutions in the process. It is a threat that cannot be allowed to continue for long else we will wake up one day to realise we are in a worse place than we set out from in 1999.

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CITYFile KTSG expends N10bn on clean water supply

Suspected armed robbers arrested by the Ondo State Police Command and the arms recovered from them

Pic by Yomi Ayeleso,

Ondo: 7 suspected kidnappers arrested ...as police recover arms, ammunition YOMI AYELESO, Akure

even suspected kidnappers have been arrested by a combined team of security agents at Emure junction in Owo local government area of Ondo State. Parading the suspects before newsmen, the spokesperson of the police in Ondo, Femi Joseph and his counterpart at the 32 Artillery Brigade of the Nigerian Army, Ojo Adenegan said they were arrested on Wednesday night by following

a tip-off. Joseph added that the suspects who claimed to be coming from Kebbi State were nabbed when they could not give satisfactory account of their movements. The police spokesman disclosed that arms and ammunition and a sum of N27, 820 have been recovered from the suspects. He sa i d : At ab ou t 3 : 0 0 a m o n Wednesday, the joint task force code named “Operation Crime Free” acting on a tip-off arrested six suspected kidnappers at Emure junc-

tion via Owo where they gathered in a suspicious manner. “The following items were recovered from them, 16 locally made guns, 17 cutlasses, 13 knives, seven handsets and the sum of twenty seven thousand eight hundred and twenty naira (N27,820) cash. “They also have some food items and pieces of clothing and items suspected to be charms. They could not give a satisfactory account of their mission even though they claimed to be coming from Kebbi State,” he said.

Epe residents want Ambode to revive abandoned heritage sites

ome residents of Epe in Lagos State have called on Akinwunmi Ambode, to resuscitate abandoned tourists and heritage sites across their communities. They made the plea in separate interviews on Wednesday. Among the major communities in Epe are IbejuLekki, Agbowa-Ikosin and Eredo. The residents said that the revival of the sites would reposition the tourism industry in the ancient communities. A resident, Sulaiman Oluwo said that the abandoned tourist sites had hindered development of the tourism industry in the division. According to O luw o, the communities are blessed with enormous tourism potentials that could attract local and international tourists into the division if resuscitated and put to

better use. Opeyemi Ibrahim, a tourist, said that the division was one of the places he loved to visit. Ibrahim said he had been visiting Epe in the last few years and found the community interesting for relaxation and entertainment. “The government needs to promote the enviable potentials to attract investors. The community is losing millions of naira worth of investment, government needs to pay urgent attention to it, to boost its economy,” the tourist said. Also, Peju Akanji, a businesswoman, appealed to the government to revive the moribund industries in Epe, to create employment opportunities for the indigenes. She said the revival of the industries would not only create expand

opportunities for youths but boost the socio-economic development of the community. “It will also increase the local and state government’s revenue, alleviate poverty and reduce unemployment challenges in the community,’’ she said. Ademola Olufowobi, a resident, identified some of the moribund industries to include, Epe Sawmill, the only plywood industry in Epe. Others are, Agric-Yes, a project of former Governor Babatunde Fashola in Epe, Water Corporation (Epe Water Works), as well as privately owned industries like, Oluwalogbon Motors in Ilara-Epe, Nigerian Lamp Industry and Adebowale Electronics, owned by late Beyioku Adebowale and the Oluwo Fish Market.

overnor Aminu Masari of Katsina State says the state government has expended more than N10 billion on provision of potable water to the people of the state. Masari made this known when he visited Charanchi local government area of the state to seek support for is hre-election. “The state government used the funds to expand existing water sources and establish new ones to satisfy the water needs of the citizens. “We expended over N5 billion to upgrade and rehabilitate Ajiwa Dam water works that provides water to Katsina and environs,” Masari said. It would be recalled that the Ajiwa Dam was established in 1974 when Katsina was a local government under defunct NorthCentral State. Since then no government has expanded the dam thus it failed to satisfy the water demand of Katsina as a state capital. “The state has used over N3 billion to rehabilitate Daura and Malumfashi water works. We have also pumped over N3 billion to drill over 1,250 motorised boreholes across the state” he said The governor further said that any government that provided potable water had prevented water borne diseases by 75 per cent. He appealed to the indigenes of the area to protect all water projects in their towns and villages against vandalism.

Fire guts N10m property in Kwara

roperty worth over N10 million have been destroyed by fire incidents which occurred between December 2018 and date, AbdulRasaq Akanbi-Jimoh, an official has confirmed. Akanbi-Jimoh, the special adviser to Governor AbdulFatah Ahmed of Kwara on emergency and relief services, said that the fire outbreaks were as a result of electrical faults. According to him, most of the fire outbreaks were attributable to failure of the victims to switch off electrical appliances when they left home. The official said that some of the areas where fire incidents occurred during the period included Gambari, Itamerin, Dunmode Compound at Ojuekun area and Afon, Headquarters of Asa local government area of the state. Akanbi-Jimoh listed valuables lost to the fire to include household items, clothing materials, electrical gadgets, sewing machines, furniture and other assorted materials. He said that names of affected victims had been submitted to the governor with a view to alleviate their plights. “The account of the agency for 2018 has closed, but l have submitted my paper to the state governor for the provision of immediate succour for the victims”, Akanbi-Jimoh said. He advised residents of the state to always ensure they switched off electrical appliances before leaving home to guide against fire incidences. The state director of fire service, Abdulwaheed Yakub, confirmed that several cases of fire outbreaks were recorded in various parts of the state in December 2018. NAN

14 BUSINESS DAY

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MoneyInsight Luno sees positive cryptocurrency market, mulls expansion in 2019 Stories by FRANK ELEANYA

uno, one of the largest cryptocurrency platforms focused on emerging markets said it is optimistic about the market in 2019 and it expects to double its talent pool while adding more markets to its portfolio. Luno currently operates across 40 countries in Europe, Southeast Asia and Africa. In a blog post on its website, the company disclosed that it expanded its offices in Singapore, Cape Town, Jakarta, Kuala Lumpur, and Lagos as well as opened new ones in London and Johannesburg. “We processed billions of dollars of transactions and added over a million new wallets,” the Luno team stated. “We’ve also continued to ship a number of product and support improvements and we will continue to invest very heavily in better service and product experience in 2019, in addition to some exciting new product features and country launches.” The year 2018 was not a flattery one for most operators in the global cryptocurrency market. Prices of major cryptos like bitcoin and Ethereum dropped to historical low forcing many investors to sell their virtual currency assets. Across the world, regulators in many countries sought to provide more clarity for cryptocurrency companies to operate either within

existing frameworks, or with new licenses. Most forward-looking exchanges expect regulations to engender clarity, weed out most (if not all) of the bad actors, and form the foundations for large-scale institutional money to come into the crypto ecosystem. A major headache for exchanges in the space has come from the media. The Luno team describes the media industry’s role in the market so far as “a double-edged sword”. On

one hand it has helped push mainstream awareness initially but not of it painted the industry in beautiful lights. Headlines like ‘Bitcoin is Dead’, ‘Bitcoin used for Drugs’, and ‘Bitcoin Hacked’, they said, did not do the industry any favours. Some of the negativity was often exaggerated, not based on facts, or simply based on very little understanding of the sector. “We’re already seeing this change rapidly as the market and the media

continue to become more educated. We are also contributing by investing heavily into our Luno Learning Portal, which helps the public, the media, and other stakeholders educate themselves about the facts, opportunities, and risks in the cryptocurrency market,” Luno team said. The company expects most of the focus in the market to move from ‘blockchain’ and ICO projects to the best use of decentralised cryptocurrencies.

“While we don’t believe we’ll see mass institutional adoption in 2019, we do believe that there will be some early movers like Fidelity, and BAKKT (Who, interestingly, also attracted investment from our own lead Series A Investor, Naspers) that will get the momentum started. We do, however, see smaller fintech and other tech companies entering the space via partnerships with existing cryptocurrency companies like Luno,” Luno said.

YABATECH advances to regional finals of $1mn annual Hult Prize CALEB OJEWALE

n response to the United Nations charge to, “develop an idea to provide meaningful employment for 10,000 youth in the next decade”, the winning team from the campus final at Yaba College of Technology has advanced to the 9th annual regional finals of the competition, where the final winner stands to win a $1million prize. Members of the winning team from Yaba College of Technology include; Ajasa Solomon, Ajayi Michael, and Oseni Kamaldeen, based on their solution to this year’s challenge to create employment for 10,000 young people. Their solution aims to create employment through the production, and sales of Biodiesel. The team will in March, compete at the Regional final in Abuja, one of 25 cities hosting the regional finals around the world. Ahmad Ashkar, CEO and Founder of Hult Prize, attributes the success of the competition to the global youth revolution. He said, “We continue to be moved by the large number of students from around the world, who are capitalizing on

the opportunity to develop business models that target those who are in most need. We wish every team the best of luck and thank Yaba College of Technology for supporting this

initiative”. On his part, Abdulmu’min Edidi, campus director for the Hult Prize contest at Yabatech said, “Improving the world is not about who you

are, but the depth of your thought, coupled with your courage to establish your thought.” Following the regional contests, one winning team from each host

city will advance to an intensive 8-week summer business incubator, where they would receive mentorship, advisory and strategic planning as they create prototypes and set up to launch their new social business. The final round of the competition would take place in September, where a jury panel will select the Hult Prize winner, and present USD 1 million to the winning team. “The Hult Prize is a wonderful example of the creative cooperation needed to build with shared opportunity, shared responsibility, and shared prosperity, and each year I look forward to seeing the many outstanding ideas the competition produces” stated Bill Clinton, 42nd President of the United States, in a statement. The Hult Prize is a crowd sourcing platform for social good, named one of the top five ideas changing the world by TIME magazine. The innovative crowd-sourcing platform identifies and launches disruptive and catalytic social ventures that aim to solve the planet’s most pressing challenges.

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IMPACT INVESTING

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BUSINESS DAY

In Association With

How asset management firms can venture into the impact investing landscape OMOBOLA ADU

mpact investment can be regarded as an intentional capital allocation into businesses or funds that are aimed at improving the society or environment and still making financial returns for the investor. Globally, there is a burgeoning interest in the impact investment sector by asset management companies for two major reasons: the provision of substantial capital to build a sustainable global economy and increasing the diversification of not just asset classes but also as a strategic investment into other countries, especially developing economies. For Nigerian asset management companies trying to venture into the impact investment sector, it is crucial for them to understand the sector itself. Players in the impact investment landscape can be-classified into two distinct categories, “financial first investors” and “impact first investors” according to the report conducted by Bridges Ventures, Parthenon Group and Global Impact Investing Network (GIIN). The aim of the financial first investors is to optimise financial returns by examining investment vehicles that offer returns at market rate while making a social good. On the other hand, the aim of impact first investors is to generate a social good while accepting a range of returns either from the principal investment to market rate. The major difference between the two groups is that the latter is willing to accept lower returns than the market rate in order to ensure the attainment of the social good. However, asset management companies displaying either kind of impact investor characteristics can collaborate in what is termed “layered structures”. These layered structures provide a platform through which both types of impact investors can pull capital together, in which the financial first investors can enjoy a market-based rate of return and impact first investors can attain a more significant social

impact than relying on just their own capital. The space for Nigerian asset management companies Asset management companies, especially those in the pension industry are typically bounded by regulatory requirements which will constrain them from being an impact first investor. This means that Nigerian asset management companies willing to venture into impact investing, majority of them will have to play as financial first investors. With this view in mind that Nigerian asset management companies can operate as financial first investors, the next question is how can they actually venture into the landscape of impact investing? There are a number of strategies that can be employed such as: a) The creation of a fund where investments can be made by several asset management companies regularly towards achieving a common social good. b) Pension companies can establish an impact investment diversified portfolio.

A form of test-run strategy c) in which a particular amount of money is set aside deliberately for “testing the waters” purpose. This strategy involves exploring different investment vehicles under different conditions (communities, funds, venture capital etc.) and trying to ascertain the best strategy for a wider scale investment. However, this strategy is not cost-effective for

small companies that do not have the luxury of funds compared to internationally owned asset management companies. d) Another strategy is for the asset management companies to offer their clients the option of investing in an exclusive portfolio consisting of companies driving impact investing. e) Nigerian asset management companies can leverage on the use of the layered structure to drive impact investing. Case studies of asset management companies in impact investing We have identified that Nigerian asset management companies can venture into the impact investing landscape as financial first investors and outlined some strategies that can be employed. Here are some case studies around the world of asset management companies venturing

into impact investing. The source is from the report conducted by Bridges Ventures, Parthenon Group and Global Impact Investing Network (GIIN). The Shorebank Deposit Program Investors in the Shorebank deposit program comprises of several financial institutions and foundations under the Teachers Insurance and Annuity Association - College Retirement Equities Fund’s (TIAACREFF) community bank deposit (CBD). TIAA-CREFF invested $22 million in Shorebank in 2007. The aim of Shorebankis to create economic prosperity and a healthy environment. In terms of social impact, the group had lent over $916 million to 60 developing countries. For financial impact, the return is -2.5 percent to TIAA-CREF’s CBD Program. The people that invested in this scheme were only after social impact not returns on their investment. Triodos Investment Management The Triodos investment management targets providing renewable energy solutions to member countries of the European Union (EU). The Triodos Renewables Europe Fund was funded by retail investors and institutional investors in 2006 with an estimated capital of £30 million. The Fund makes social impact by investing in small to medium sized renewable energy projects and has a minimum investment size of £1 million. The maximum amount per investment is dependent on the size of the fund and is limited to a maximum 15 percent of the fund’s committed capital. Root Capital Root Capital is an asset management company that has investments from several industry players and foundations. Root Capital targets investment in African companies that make use of local raw materials to produce agricultural products. The company targets the “missing middle”, a gap existing between microfinance and corporate banking. Root Capital provided funds worth $1 million to an agricultural firm in Tanzania, Kilicafe, which supports over 100 farmer groups. The funds helped in the acquisition of raw materials needed to process coffee beans and the construction of a warehouse. Since then, the membership in Kilicafe has grown by approximately 28 percent from 2006 to 2008. In relation to its financial impact, the loan was expended at an interest rate of 9 percent (in line with local market rates).

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COMPANIES & MARKETS

Nigerian firm, MOB Integrated, emerges largest supplier of LPG in West Africa

Pg. 17

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

MARKETS

The trials and triumphs of Nigerian beer makers OLUWASEGUN OLAKOYENKAN & OLUFIKAYO OWOEYE

Earnings of Nigeria's Biggest Beer Makers 294

314

266

250 200 150

111

100 50 0 Source: NSE

Pro$its of Nigeria's Biggest Beer Makers 43

345 340

350 300

109 118 102

126

112

33 18 21 23 Nigerian Breweries Interna7onal Breweries Guinness 2014 2015 2016 2017 2018 Forecast

was a disruption in the beer market with the arrival of SABMiller, then, the world’s second-largest brewer, into the country, and its acquisition of majority shares in International Breweries Plc, makers of Trophy Beer, located in Ilesa, Osun-State. However, in 2017,AB InBev the world’s largest brewer acquired 72.17% of SABMiller’s shares in International Breweries Plc, in a series of transactions which resulted in AB InBev acquiring controlling interests in the company. To further extend its market presence, a merger arrangement was consummated with International Breweries Plc and two other local brewers: Intafact Beverages Limited, makers of Hero beer which is popular in the South-Eastern

part of Nigeria, located in Onitsha Anambra State, and Pabod Breweries Limited, makers of Grand Lager, located in PortHarcourt. All these Plants are now controlled by AB InBev. In anticipation of the arrival of AB InBev into the country, Nigerian Breweries Plc also acquired some regional breweries across the country. The company recently introduced the Tiger Beer brand into the Nigerian market.The company acquired a controlling interest in Sona Group in January 2011 and also merged with Consolidated Breweries Plc, thereby adding its three breweries in Ijebu-Ode, Awo-Omama, and Makurdi to the Nigerian Breweries. How the brands are playing out in the market space Nigerian Breweries owns

N'Billions

grew revenue from N266 billion in 2014 to N345 billion in 2017. Based on its first-quarter results, this may likely drop slightly to N340 billion in the 2018 financial year. However, the company’s profit after tax is falling at a blistering rate, despite a 16 percent surge in 2017 to N33 billion. Nigerian Breweries Plc risks a significant drop in profits for 2018 to N19.72 billion as its results for the nine months ended September 2018 saw profit down 38 percent to settle at N14.79 billion. Based on the unaudited financial statements for the nine-month ended September 2018 released by International Breweries Plc which saw the brewer recording a loss after tax of N7.14 billion, the beer manufacturer would most likely record a huge loss in 2018. Increasing administration charges, marketing and promotion expenses, and finance costs all combined to weigh on the company’s profits. Meanwhile, Guinness Nigeria Plc kept an undulating revenue profile in the last five years, but recent data show profits are yet to return to their full gear after a loss of N2.12 billion recorded in 2016, even as the firm currently struggles to post a post-tax profit of N3 billion in a year. In Nigeria, the race for the biggest beer market share in the country was once a twohorse race between Heineken N.V., owners of Nigerian Breweries Plc and Diageo, owners of Guinness Nigeria. Interestingly, the narrative changed in 2011 when there

N'Billions

or makers of beer in the country, the battle for market leadership is very stiff. The harsh economic environment has seen profit margin reduced drastically. The low purchasing power of consumers means beer makers cannot increase the price to cover increasing operating cost, epileptic power supply, and the notoriously bad road network, most especially the Apapa gridlock which is the road leading to the nation’s busiest port. These, coupled with the new excise duty recently introduced by the federal government have hampered the profitability of the major players in the country and impacted negatively on their earnings. Despite these challenges, makers of beer are still making entry into Africa’s largest market, Nigeria – with an average age of 21 years.According to a report by a market research group, Global Data,Africa is the fastest growing region for beer consumption. Nigeria, however, leads the pack of 10 biggest beer drinking countries on the continent. Beer brands make up just 16 percent of alcohol consumption in the country, while other drinks (spirits and locally brewed drinks) make up 84 percent. An analysis of the financial performance of the three major brewers since 2014 shows that while the firms were growing revenues steadily, profits were being chopped off by high costs of operations, indicating tight operating environment for the beer makers. Nigerian Breweries Plc

400

38 33 28 20 10

10 2 2 3 1 0 -‐10

Source: NSE

Nigerian Breweries

Interna6onal Breweries

8 2 3 Guinness -‐2

-‐10 2014 2015 2016 2017 2018 Forecast

two key brands in the premium lager segment Heineken and Tiger which are facing tough competition from International Brewery’s recently-launched global brand, Budweiser, while Guinness Nigeria has Harp in this segment. Diageo’s Guinness Nigeria Plc recently acquired the rights to distribute McDowell’s, a mainstream spirits brand of United Spirits Limited in Nigeria, Gordon’s Dry Gin, Smirnoff, Red Label, Walkie Walker. It seems Guinness is the leader in the spirit segment. It also recently introduced the Orijin brand into the Nigerian market to compete with Alomo Drinks from Kaspereko in Ghana apart from its Guinness stout and Satzenbrau.And following complaints of high sugar content, it also introduced Low sugar

Origin brand into the market. International Breweries recently commissioned a $250 million plant which is strategically located in Sagamu to avoid the Lagos hassle. The new plant is to intensify competition with Nigerian Breweries and also push more volumes of Trophy and Hero Lager into Nigerian Breweries important markets in the southwest and southeast regions. In the malt segment of the market, although, Nigeria Breweries’ malt segment suffered in recent years, the brewer still leads this space with its Maltina and Amstel Malta, Maltex, Hi-Malt brands. On its part, Guinness is already gaining entry into this segment with its Origin Zero brand, Malta Guinness and Dubic Malt and it has seen volume growth in this brand.

MANUFACTURING

Multinationals commit $1 billion to fight plastic scourge ISAAC ANYAOGU

n alliance of global companies from the plastics and consumer goods value chain have launched a new organization to advance solutions to eliminate plastic waste in the environment, especially in the ocean. Known as the Alliance to End Plastic Waste (AEPW), it consist of nearly thirty member companies, who have committed over $1.0 billion with the goal of investing $1.5 billion over the next five years to help end plastic waste in the environment. This comes at a time when scientists worry about the global threat of plastic. A 2015 study reported in the Journal of

science found that there is on average 8 million metric tons of plastic that enters the ocean from land every year. This is enough plastic to fill every foot of coastline in the world with five plastic grocery bags filled with plastic. To combat this menace, the Alliance says it will develop and bring to scale solutions that will minimize and manage plastic waste and promote solutions for used plastics by helping to enable a circular economy. The Alliance membership represents global companies and located throughout North and South America, Europe, Asia, Southeast Asia, Africa, and the Middle East.

“Everyone agrees that plastic waste does not belong in our oceans or anywhere in the environment. This is a complex and serious global challenge that calls for swift action and strong leadership. This new alliance is the most comprehensive effort to date to end plastic waste in the environment,” said David Taylor, Chairman of the Board, President and CEO of Procter & Gamble, and chairman of the AEPW. “I urge all companies, big and small and from all regions and sectors, to join us,” he added in a release published by Shell. “History has shown us that collective action and partnerships between industry, governments

and NGOs can deliver innovative solutions to a global challenge like this,” said Bob Patel, CEO of LyondellBasell, and a vice chairman of the AEPW. “The issue of plastic waste is seen and felt all over the world. It must be addressed and we believe the time for action is now.” The Alliance is conceived as a not-for-profit organization that includes companies that make, use, sell, process, collect, and recycle plastics. This includes chemical and plastic manufacturers, consumer goods companies, retailers, converters, and waste management companies, also known as the plastics value chain. The Alliance has been

working with the World Business Council for Sustainable Development as a founding strategic partner. It said it will partner with cities to design integrated waste management systems in large urban areas where infrastructure is lacking. This work will include engaging local governments and stakeholders, and generate economically sustainable and replicable models that can be applied across multiple cities and regions, fund incubator programmes on proper plastic management, develop data base and information on best practices and assist in recycling schemes around the world. The group says the

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

program is designed to capture plastic waste before it reaches the ocean from the ten major rivers shown to carry the vast majority of land-based waste to the ocean. The founding members of the Alliance are BASF, Berry Global, Braskem, Chevron Phillips Chemical Company LLC, Clariant, Covestro, Dow, DSM, ExxonMobil, Formosa Plastics Corporation, U.S.A ., Henkel, LyondellBasell, Mitsubishi Chemical Holdings, Mitsui Chemicals, NOVA Chemicals, OxyChem, PolyOne, Procter & Gamble, Reliance Industries, SABIC, Sasol, SUEZ, Shell, SCG Chemicals, Sumitomo Chemical, Total, Veolia, and Versalis (Eni).

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BUSINESS

DAY

OIL & GAS

Nigerian firm, MOB Integrated, emerges largest supplier of LPG in West Africa …Boosts supply with 11,000MT through Sahara Gas Vessel ODINAKA ANUDU

agos-based Petroleum marketing company, MOB Integrated Services Limited, is now the largest supplier of Liquefied Petroleum Gas (LPG) in West Africa, delivering over 25,000 metric tonnes (MT) monthly across the sub-Sahara Africa, including Nigeria, Republic of Benin and Ghana. With Nigeria still being an emerging market, which consumes above 500,000 metric tonnes annually, MOB Integrated Services has p o s i t i o n e d i t s e l f a s a front runner and leading company to boost the s u p p l y a n d av a i l a b i l i t y of LPG in the country in support and fulfilment of the Presidential Liquefied Petroleum Gas (LPG) expansion initiative. In addition, the company is also sponsoring gas i n i t i at i ve s by No n - G overnmental Organisations (NGOs) promoting the use of LPG in place of other cooking fuels like wood, charcoal and kerosene. The company’s chief executive officer, Gbolahan Obanikoro, who expressed optimism about the adoption of LPG in the country, said: “Nigeria is a sleeping giant with an annual consumption capacity of five

million metric tonnes per annum. “We are currently consuming about 600,000 metric tonnes just a little above 10 per cent of our actual capacity. Our goal is to continue to push for the adoption and penetration of LPG across the country, ensuring that the product i s ava i l ab l e t o c o n s u m ers and of course position ourselves to harness the benefits of when the market takes a corner and the countr y is poised to achieving its consumption potential.” He added that : “In furtherance of the Presidential LPG Expansion Initiative aimed at deepening the usage and fully integrate the product into Nigeria’s energy mix, MT Sahara Gas, the newly built vessel acquired by the West Africa Gas Limited (WAGL), has delivered an unprecedented 11,000 metric tonnes of LPG to Nigeria in order to boost availability and safe access to the commodity.” WAGL, is a Joint Venture of Nigerian National Petroleum Corporation (NNPC) a n d Sa ha ra G ro u p. T h e JV is run by two companies, NNPC LNG Limited, a wholly-owned subsidiary of NNPC and Sahara Energy’s oil and gas trading arm, Ocean Bed Trading Limited (BVI).

WAGL, in January 2017, acquired two new vessels, MT Africa Gas and MT Sahara Gas, in its bid to reduce transportation bottlenecks; add value to the Nigeria economy through exporting the commodity; deepen the LPG market in West Africa as well as enhance access to clean and safe energy. It could be recalled that NNPC group managing director, Maikanti Baru, had said that in keeping with the federal government’s economic growth plan, WAGL remaine d committe d to stabilising the market and ensuring sustainability of the commodity through strategic deliveries within the sub-region. “This is a historic achievement for the NNPC a n d S a h a ra G ro u p t h a t showcases a truly successful partnership by all global standards. The quest is to achieve uninterrupted supply of the commodity and address infrastructural limitations as we continue to implement our zero tolerance policy against adulterated products and their promoters across Nigeria,” he stated. Bar u said the NNP C/ Sahara Group partnership remained a model for successful JVs, adding that both parties were considering various strategies to optimise the delivery of the product across West Africa.

L-R: Guido Stock, commercial counselor, Austrian Embassy; Johann Rieger, chief executive officer, Austrian Technologies Nigeria Limited; Franz Wurz, team leader,Test, and Training International(TTI); Hyginus Omeje, sector commander, FRSC, Lagos State, and Sumeet Singh, general manager, Powergas, during a business networking conference on two new investment and technology transfer opportunities hosted by the Austrian Embassy in partnership of Powergas and ETEFA in Lagos, yesterday. Pic by Olawale Amoo

L-R: Olawale Olasoji, president, Total Coop; Vincent Ezeh MD, Germaine Auto Centre, and Louis Ogeifun, past president of Total Coop during the official opening of the Germaine/Total Coop Lube Bay in Lagos.

PUBLIC INSTITUTIONS

Over 39 000 business names registered in two months-CAC HARRISON EDEH, Abuja

he Corporate Affairs Commission has said that through the implementation of its Business Incentive Strategy, it had been able to register more companies. S o m e 3 9 , 0 7 4 Bu s i n e s s Names were registered between October and November 2018, according to Azuka Azinge, acting Registrar-General, CAC who spoke Tuesday in Lagos during a customers’/stakeholders’ forum. The numbers for previous months were not given. The forum is a periodic interactive session between the management of the commission and its stakeholders to enhance service delivery. The commission had under its Business Incentive Strategy, reduced the cost of Business Name registration from N10,000 to N5,000 for a period of three months covering October 1 to December 31 2018. The BIS is aimed at creating a window for Micro, Small and Medium Enterprises to formalize their businesses so that they can own corporate account with

banks, have access to loans, grants and other government interventions. According to the CAC’s helsman “Only recently, the commission extended the BIS to encourage small businesses formalize their business by registering same with the commission. “During the initial three months of the BIS registration, activities increased tremendously. For the months of October and November 2018, a total of 39,074 business names were registered.” “The commission remains resolute in reviewing it’s processes regularly. “The Commission said in a statement. On the amendment of the Companies and Allied Matters Act, the CAC boss said that the commission is positive that the amendment bill would be passed this month. She added, “Work is at advanced stage to amend the CAMA in collaboration with the National Assembly. The amendment is aimed at enhancing the commission’s supervisory and regulatory powers. “The ultimate goal of the commission is to make CAC a

world class companies’ registry providing excellent registration and regulatory services.” She explained that the commission is working with Presidential Enabling Business Environment Council to improve the business environment and make Nigeria a progressively easier place for business to start and thrive. The CAC boss noted that the deployment of the user-friendly Company Registration Portal has enabled customers to have on-line access to the services of the commission from the comfort of their offices and homes using different electronic payment platforms. She gave other reforms being implemented by the commission to include digitalization of legacy records, full decentralization of operations, and integration of the CRP to stamp duty portal of the Federal Inland Revenue Service among others. She said the objective of these reforms is to support the government’s efforts to encourage small businesses to formalize their businesses by registering them with the commission.

L-R: Andrew Agbo, president, Young Innovators of Nigeria; Tony Ojobo, founder, TECH-X Innovation Hub, and Charles Nnaji, business development manager, TECH-X, during a news conference on the activities of TECH-X in Enugu. NAN

Abimbola Kayode, chairman, Nigerian Bar Association, Abuja Branch; Chijioke Emeka, managing counsel, Auxano Law; Daniel Elombah, general secretary, Online Publishers Association of Nigeria (OPA), and Yemi Osinbajo, vice president, during 3rd Online Publishers Association of Nigeria Conference in Abuja. NAN

BUSINESS DAY

C002D5556

CEO INTERVIEW

Friday 18 January 2019

C002D5556

BUSINESS DAY

Nancy Ampah

CEO, Nationwide Medical Insurance, Ghana.

Interview with Private Sector Leaders

‘Nigeria should not repeat Ghana’s mistakes in health insurance’ Ghana’s health insurance got accolades across the world, and was considered a standard in its early years, giving some hope that with adoption, other African countries would easily achieve Universal Health Coverage. The scheme, which several delegates from Nigeria were sent to understudy, is now struggling to live up to its once lofty reputation. Nancy Ampah, CEO, Nationwide Medical Insurance, a private commercial health insurance company in Ghana, in this interview with Caleb Ojewale, discussed the many challenges confronting the sector, and how Nigeria can avoid similar mistakes.

hat has been your experience so far as a private company operating in the health insurance space in Ghana? I will say that the private health insurance industry is still relatively young and very small. There are about twelve or thirteen private health insurance companies in Ghana. Initially, most of us operated as a private mutual insurance company, so there was no commercial aspect to it. However, we were actually soliciting for clients and all that so in 2014 or 2015, the National Health Insurance Authority (NHIA), which is the regulatory body, brought in new guidelines and so most of the companies converted to private commercials. Prior to that, there were about thirty (health insurance companies), but with the directive to go commercial, a few fell off, so we ended up with just about twelve. If you put all our membership together, we are still under 300,000 possibly even 250, 000 or there about in terms of lives we are covering. We play mostly in the formal sector so we have corporate institutions buying health insurance for their employees, and dependants of their employees. If you take the formal sector in Ghana, it is about a million. So, if private health insurance is covering just about 250,000, that is a very small percentage; considering the figure of coverage also includes dependants. If there are 250,000 lives under private health insurance, about a third of them will be principals, which are the employee. This implies we are covering fewer than 10 percent of the formal sector, so there is room to grow. We have not come into the informal sector yet, which is much larger than the formal sector. To go into the informal sector, we need technology; to register people, to collect the money etc. In the corporate sector, when there is issue with a bank, you can always go back to them, because you know where to find them. But when it comes to individuals, we can’t easily trace. Because we don’t have a proper address system, it becomes a bit difficult, so we need some kind of technology that will protect both the insurer and the

insured. We realized not many of us are going into the informal sector. Nationwide is now trying to go into the informal sector. We had to fine tune our products, go back and forth. Finally, we are ready to go into the informal sector. The NHIA has about 48 percent coverage currently, but it is not as efficient as it should be. We have providers who haven’t been paid for a long time and all that but they are trying, I mean, some of the debts have been paid. It gives us both opportunity and a threat. Opportunity because people are used to it and it is not working well, sensitization is good but it’s not working as it should, so there’s an opportunity for a private person to step into it and make it work well. On the flip side, because it’s not working well, people don’t even want to touch it. It depends on how as a company, one will be able to turns things around. It is obvious there is an opportunity to come in, offer something better and make it worth their while, so, what have you been exploring and looking to do in that line? One major thing we are exploring is using mobile money to pay the premiums. Secondly, we are looking at micro health insurance where people can break their pay-

In the beginning, it seemed right, but it was like a disaster waiting to happen. It was bound that by 2012/2013, if Ghana did not find alternative source of funding, it was not sustainable, and sure enough, it happened. As to whether we really got it right in the beginning, I do not know

ments into monthly, weekly or daily, instead of paying for a whole year upfront. There is also a question people keep asking, which is a bit ridiculous, since in this part of the world, insurance is not a way of life. They ask, if I pay and do not fall sick, what happens to my money? Or they say, I don’t usually fall sick, so I’d be paying and won’t get anything. The insurance culture (in this part of the world) is not the best, so, it takes a lot convincing to get them. And of course, health insurance was introduced almost as a free product because we use the social health insurance in Ghana. People pay the equivalent of $2, up to about $10 as premium for the whole year. So, it is mostly subsidized by the state where we are using taxes. The funding comes from the National Health Insurance Levy; included as 2.5 percent VAT on most of the items we buy, and then 2.5 percent of the Social Security and National Insurance Trust (SSNIT) as well. If you are a worker, you pay 5.5 percent and the employer pays 13 percent, which gives 18.5 percent and out of that, 2.5 percent is deducted to fund NHIS. Tax is how the health insurance is really funded, not the premiums because it is nothing to write home about. So, again, if you have someone who has to pay two to ten dollars a year and then you actuarially determine premiums which are like minimum of $15 a month, then you really have to do some convincing for them to buy into it. That is where the major problem is. On the flipside, exposure helps, because people who have lived abroad and come back often understand the dynamics. If you take the companies that willingly buy health insurance, most of them are the blue chip companies or multinationals. However, we are gradually also getting some local companies coming on board, but the average SME is still sceptical. Apart from that, the way the NHIS is structured because they take 2.5 percent of your SSNIT, if you are working in the formal sector and want to join NHIS, you don’t pay any premiums. If they are already taking 2.5 percent of your SSNIT, why then would a company still take a private policy? Therefore, it is not attractive. Also, the law as we have it now,

we are kind of recycling the same people, not growing the industry per se. That is another problem we are dealing with. Generally, the private sector is more efficient in running health insurance since companies work for profit, and this can only be achieved when they are efficient. What do you think Nigeria learn from Ghana’s health insurance? I used to work at Ghana’s National Health Insurance Agency (NHIA), when teams from Nigeria visited Ghana to understudy what we had. When we started, Ghana was the beacon. We seemed to have gotten it right, but, from 2013 when sustainability issues came, we are no longer the shining star.

says everybody resident in Ghana shall belong to the NHIS. So, the private is nice to have, but it is not a must, rather, the NHIS which is mandatory by law. Health insurance companies in Nigeria complain of NHIS being both regulator and provider, is that same in Ghana? We have the same situation here, because the NHIA is mandated by law to run the NHIS, and at the same time, regulate the private health insurance industry. So, you’ve got a player-referee situation here, but that’s the way the law is. Do you foresee a scenario where it could be made mandatory to pick either government or private? It was like that before it was reviewed, but as for whether we will go back to that, I can’t tell. The ideal situation could be likened to how pension administration is done. At first, there was only

SSNIT taking care of pension, but now we put up the National Pensions Regulatory Authority (NPRA). They have been giving the private sector the chance to operate pension so we now have it in two tiers. The first tier is compulsory government, and all the pension trustees around handle the second tier. Therefore, if we could apply that to health insurance, we could have a government insurance that covers primary healthcare and emergency services, and a second layer which then becomes private (also mandatory), to supplement what the government would do. Because, as it stands now, since I work and pay SSNIT, whether I can afford to pay or not, I would still register free on NHIS and the government is overburdened with the thing. So, if we take the pension approach where we could have the base being government, and then put the private on top of that as the second tier, then it can cover critical areas, this is the way I think will be best. Increasingly, government is finding it difficult to pay the bills. It is overburdened, so they need to find a way out.

It is not working the way we want, and again, the government hospitals have no choice but to do NHIS. But increasingly, the private hospitals are coming out of it. Once you go to a government hospital, or even a private one, yes you would get a consultation, you may not get all your labs done, then they write you a prescription and you get the drugs. Initially, and even till now, there are pharmacies that are supposed to be supplying on NHIS, but also no longer supply due to non-payment, sometimes for as long as 18 months. It creates a bit of problem for the private sector, because now you owe a provider for more than 30 days and he is ready to stop his services. This is because they do not want you to go as far as the government did. There is a lot pressure on us to ensure we are not only paying, but also on time. The industry itself is not growing. We have been at this 200,000 range for a very long time, so what happens is that, you are with Nationwide Insurance now, you utilise services, your premium goes up, and you quit nationwide then move to the next company. So

What do you think you got right at the beginning? I do not know whether we got it right. When we started, - the premiums like I said were nothing to write home about – and we are using tax funding, with the number of enrolees low. But once the numbers increased, the tax could no longer sustain them. People aged 18 below as well as 70 and above get free healthcare, those in between, who work in the formal sector are also still free. Anybody having a baby also got free care, so there was a lot of frees. As for the informal sector in the middle, whether you could afford to pay or not, certain could be gotten for free, like maternal care, yet the premiums being paid were not realistic. They became a bigger chunk since informal is more than the formal sector. Once you got

Nigeria should not make the same mistake as Ghana in thinking it can support health insurance with taxes and very low premiums. I think they should determine the premiums actuarially

I don’t know what Nigeria can learn, but they can at least not make the same mistakes we are making

more people in the informal sector registering for almost nothing, the state could no longer sustain it, and that is what went wrong. You get the taxes from formal sector, the indirect tax from NHIL but it still could not sustain all the freebies in the middle. In the beginning, it seemed right, but it was like a disaster waiting to happen and it was forecasted by a few donor agencies. It was bound that by 2012/2013, if Ghana did not find alternative source of funding, it was not sustainable, and sure enough, it happened. As to whether we really got it right in the beginning, I do not know. Do you think the problem could be tied to low tax revenue? If the NHIS is to be funded by tax, then the tax net needed to be widened. Again, our minimum benefits package is very generous. It covers about 95 percent of health conditions in Ghana, including major things like heart. In the beginning, and at least on paper, it covers a lot of things. Now, people are getting just Panadol because the providers are refusing to supply hospitals. However, if they were being paid, they would have supplied it. For instance, the price of Panadol on the open market is 1GHS, but NHIS is paying 20 Pesewas. Even at the 20 Pesewas, government does not make payments for like 12 months, so they are no longer going to supply. As for consultation, you train the doctor, so he will talk and give you prescription, but as for where you get the medication, that will be your problem. It was not sustainable from the word go, but it looked good. As we went along, the faults started showing and that is where we are now. So, really, I don’t know what Nigeria can learn, but they can at least not make the same mistakes

we are making. I think the government cannot carry everybody; let those that can pay do so. Recent research by IFC/World Bank shows there are about 60 percent of people in Ghana who could actually pay for healthcare, but government was subsidising. So, that money they could have paid, is locked up, not open to private or government. If 60 percent could pay, why pay for them? So, maybe Nigeria should not make the same mistake as Ghana in thinking it can support health insurance with taxes, and very low premiums. I think they should determine the premiums actuarially. Healthcare is expensive, I do not know about Nigeria but in Ghana, everything is imported, which makes healthcare very expensive. This makes it difficult to sustain it. If we are able to get an industry that produces some of the drugs, then it will be a different ball game. But, as long as we are importing everything and we don’t want to pay realistic premiums for

it, there is no way it will work, and the state cannot carry everybody. Our tax system is poor. Since it is not wide enough, we end up taxing the same formal sector people and it does not help much. I think Nigeria should not make the same mistake. For me, I still believe the two-tier approach will be better because, at least it is working with pensions. There is even a third one, which is optional, the Providence Fund. The first two are statutory, while the third is optional. If we put the same approach to health, we will get results. I do not know what Nigeria will learn from this, but at least, do not make the same mistakes. Again, on the healthcare provider side, we need people to control cost from that side it is not easy. We cannot keep increasing premiums, so costs need to be controlled at that side. However, if you look at the NHIS, you do not control the cost so much that you end up compromising quality. That has to be controlled as well.

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Most Nigerian women have poor response to ‘Pap Smear’ - experts ...misconception fuels prevalence of cervical cancer

44 years. Cervical cancer originates from uterine cervix and the neck of the womb, which is located at the lower end of the uterus extending into the upper part of the vagina. In later stages, symptoms include: heavy vaginal bleeding or discharge (more than usual), bleeding after sex, between periods or after a pelvic exam, pain during sex or urination. Bindiya Sadarangani, centre director at Lakeshore Cancer Centre said cervical cancer is largely undetectable because of the location of the cervix which is internal, at the mouth of the womb. “We are encouraging women to undergo screen because it is one of the cancers that can be screened by doing a Pap smear test. It is also easily treated once it is found. The test is done every three years,” Sadarangan said. She explains that cervical

cancer is linked to Human Papilloma Virus (HPV) which is one the main risk factor for developing the disease. The Human papillomavirus (HPV) test detects the cancerous cells and HPV vaccine protects against the types of HVP that most often cause cancer. She added that there is a preventable arm to that which involves getting people between the ages of 9 to 26 to get the vaccine just like the immunisation given to babies, noting that giving the younger people before they become sexually active would help in curtailing the disease. “We want to encourage the parent to make sure their children gets vaccinated before they become sexually active and for women who are not sexually active to go get it as well,” Sadarangani said. However, Runcie Chidebe, executive director, Project PINK BLUE, a Health and Psychological Trust Centre

(HPTC) in Abuja, said any woman can get cervical cancer, but some women are at higher risk because of factors such as having the HPV, not getting screened, smoking, multiple sex partners and age. “The high mortality of the disease in Nigeria is due to late diagnosis, lack of awareness, low utilization of screening services, lack of knowledge and suggestive symptoms. “There is no systematic screenings program in Nigeria. What we have is sporadic screenings, where nongovernmental organisations (NGOs) organise here and there. “There is a need for the Federal Government to mandate that all Public Health Centre( PHC) through the State Levels to ensure that once a woman comes into any PHC, she must go for cervical cancer screening like Visual Inspection with Acetic Acid ”Chidebe further said.

Tips for safe use of apple cider vinegar

esearch says that apple cider vinegar may have several health benefits. However, consuming too much vinegar can cause unwanted effects. Over the last few years, cleansing diets have been growing steadily in popularity. One example of a detox diet involves using apple cider vinegar — an amber-colored vinegar made from cider or apple must. Supporters of the apple cider vinegar (ACV) detox say it helps with weight loss, removal of toxins from the body, and blood sugar regulation. Despite many anecdotal success stories, little scientific evidence exists to support these claims. According to a 2016 report, several studies indicate that vinegars, including apple cider vinegar, have the potential to help treat a range of conditions, including obesity, heart disease, cancer, and bacterial infections. However, there is little research on the most healthful

way to consume vinegar and how much to take. In particular, very few studies have explored the potential side effects or complications of regularly consuming vinegar. In this article is culled from Medical New Today, discuss possible adverse effects of using apple cider vinegar as a remedy and give some tips about how to do it safely. A person is more likely to experience side effects if they regularly consume large quantities of undiluted vinegar or leave it on the skin for long periods. To lower the risk of un-

wanted effects, try: Reduce the quantity of vinegar consumed Reduce the amount of time that vinegar touches the skin Dilute the vinegar with water or using it as an ingredient Limit contact with the teeth, such as by drinking the vinegar through a straw A 2016 report, found that people may be able to achieve many of the potential health benefits by drinking around 15 millilitres of vinegar a day or any quantity that contains around 750 milligrams of acetic acid. However, because of the lack of research into side effects and long-term safety, further moderation may be the best approach. People with digestive issues, low potassium levels, or diabetes should consider speaking

to a doctor before consuming apple cider vinegar. Anyone who experiences severe side effects should consult a medical professional. Consuming apple cider vinegar has become a popular health trend. Some evidence suggests that vinegar may help with a range of health issues, but scientists need to carry out more research to verify and understand these findings. Apple cider vinegar can cause side effects. For example, applying undiluted vinegar to the skin for long periods can lead to burns and irritation. Regularly consuming large quantities of the vinegar, especially in an undiluted form, may cause digestive issues, damage the teeth, and affect potassium levels. Anyone who experiences severe side effects after using apple cider vinegar should seek medical care. People with certain health conditions may wish to speak to a doctor before consuming apple cider vinegar for medicinal purposes.

Friday 18 January 2019

How NIBUCAA is setting the agenda to tackle HIV/AIDS in Nigeria JOSEPHINE OKOJIE

ANTHONIA OBOKOH edical experts have attributed the rising cases of cervical cancer in Nigeria to women poor response of Pap smear – test done to know if they are at risk of cervical cancer. The experts call the government to create more awareness, saying that misconception a fear factor has led to the rise of disease in the country. They added that Nigeria needs adequate funding to combat cancer. “Most women in Nigeria lack the knowledge of how and why they need to do Pap smear test. There is poor response to Pap smear in the country,” said Habeebu Muhammad, head of the department of Oncology at Lagos University Teaching Hospital (LUTH). “There is a whole lot of fear factor in our country because most people do not allow screening due to their religious beliefs. “It is better to come for check-up because early detection increases the chances of survival and there is so much that can be done to prevent or cure it,” Muhammad advised. Yearly, January is set aside for cervical cancer awareness and about 14,089 new cervical cancer cases are diagnosed annually in Nigeria according to the World Health Organisation. This is why the international organisation has ranked the disease as the second leading cause of female cancer in Nigeria and most common in women between ages 15 to

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he Nigerian Business Coalition Against AIDS (NIBUCCA) has been at the fore front in the fight against HIV/AIDS in the country, especially from within the work places. NIBUCAA which currently comprises of 36 leading businesses across the country has committed to fighting the menace at all levels and represents the voice of Nigerian private sector response to HIV/AIDS pandemic. The organisation has been able to provide succour to Nigerians affected with the virus over the years and has continued to galvanise resources and technical expertise from the private sector in addressing the pressing challenges of HIV/ AIDS in the country. Commenting on why it is important for the private sector to partner with NIBUCAA in its drive to eradicate HIV/ AIDS from Nigeria, Gbenga Alabi, executive secretary of NIBUCAA, quoting the International Labour Organization (ILO), said that two out of three people living with HIV or AIDS are employees, making the workplace a vital entry point for tackling the virus. Alabi stated that approximately 150,000 people died from AIDS-related illnesses in Nigeria in 2017, adding that since 2005, the reduction in the number of annual AIDS-related deaths has been minimal, indicating that only 33 per cent of those with the virus have access to Anti-Retroviral Treatment (ART). He noted that priorities to funding innovation in global healthcare have hit an all-time low in the annual investment for HIV prevention, research and development as major donors have reduced their support. He said for years, the treatment for HIV/AIDS has been largely run with funding from the US President’s Emergency Plan for AIDS Relief (PEPFAR), adding that total funding from PEPFAR dropped from $409 million in 2016 to $384 million in 2017. Recently, the National Agency for the Control of HIV/AIDS (NACA) in Nigeria, expressed worry over the rising incidence of HIV/AIDS in Nigeria as latest statistics rated Nigeria as having second highest Human Immunodeficiency Virus (HIV) epidemic profile in the world. In the data, the country

also has the highest number of children contracting HIV in the world and an estimated 1.8 million children became orphans as a result of the scourge in 2017, which experts said could have huge impact on their health, safety and wellbeing. At a recent dinner party organized by NIBUCAA for its key sponsors which comprised of Access Bank, Shell Petroleum development Company, Total Exploration & Production Nigeria Ltd, Julius Berger Nigeria Plc, Dangote Group and many others in Lagos, Herbert Wigwe, group managing director of Access Bank Plc, who is the co-chair of NIBUCAA said operators in the private sector must as a matter of necessity partners with the organisation in other to tackle the virus. “We have to realize that HIV/AIDS is not just a health problem, it is a developmental challenge. Therefore, the private sector cannot afford to be complacent with regards to the scourge. It is eminently desirable that private sector supports all efforts geared towards the realization of the goal of the multi-sectoral response to HIV pandemic in particular under the Sustainable Development Goals,” Wigwe said. “Therefore, we should be able among ourselves raised some funds as the private sector to help agencies like NIBUCAA provide drugs and also help educate and sensitize the public, and in a way it will help curb the spread and end new cases,” he added. He said Access Bank and other partners have created a $168 million emergency fund to be raised among partners and dedicated for achieving NIBUCAA’s objectives. For Nicolas Terras, Managing Director of Total E&P and a Co-chair on NIBUCAA board, it is high time Nigerians create their own response to the scourge, and the private sector must take the initiatives. According to him, the fight against HIV/AIDS is too big for the government to handle alone. “Captains of industries have collective leadership roles to play in the multi- sectoral response to HIV and AIDS” Omobolanle Victor-Laniyan, head of sustainability Access Bank Plc, said since the establishment of NIBUCAA by former president Olusegun Obasanjo in 2003, it has been able to get the private sector participation in the country’s battle against the HIV/AIDS scourge.

Friday 18 January 2019

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Explainer

How to strengthen regulation of Nigeria’s health insurance scheme? t is now twenty years since the establishment of the National Health Insurance Scheme (NHIS) as regulator of a national health insurance scheme. Designed as a Public -Private Partnership, it has as remit providing accessible, affordable and qualitative healthcare for all Nigerians. Health Insurance is a system of advance financing of healthcare expenditure through contributions, premiums or taxes paid into a common pool to pay for all or part of health services specified by a policy or plan. Act 35 of the 1999 Constitution established the National Health Insurance Scheme in Nigeria.

improve the health sector. Fifteen years after the inception of the scheme, the NHIS has managed to enrol about 4 percent of Nigerians which is roughly 7.9million of the 198million population according to the latest estimate by the Nigerian Bureau of Statistics (NBS). This compares poorly with smaller African countries that have ramped up enrolment on their national health insurance schemes leading to sharp decrease in outof-pocket expenditure on health. In Rwanda, out of pocket expenses as a share of health expenditure is only 18 per cent and South Africa with 54million people have covered over 9.1million people. The scheme continues to be bogged down with policy som-

NHIS started operation under the National Health Insurance Scheme Act, Cap N42, Laws of the Federation of Nigeria, 2004 with the broad objective of providing easy access to healthcare for all Nigerians at an affordable cost through various prepayment systems. The body is also set up to regulate private health Insurance operated by HMOs with 60 HMOs currently registered under the scheme. Health Insurance is a social security system that guarantees the provision of needed health services to persons on the payment of token contributions at regular intervals. It is primarily a risk sharing arrangement which can improve resource mobilisation and equity in the healthcare sector. Why set up a regulatory body? A regulatory body for a scheme where participants pay a fixed regular amount for a pre-payment plan is essential to avoid abuse. The funds are pooled, allowing the Health Maintenance Organisations (HMOs) to pay for those needing medical attention hence checks are important to ensure the best value is derived. A struggling scheme Health insurance in Nigeria has had many challenges compared to its peers in Africa including Rwanda and South Africa. Nigeria still struggles to meet the commitment it signed with other members of African Union 18 years ago – the Abuja Declaration – to allocate at least 15 percent of its budget to

ersaults, ineffective operational guidelines, corruption, inefficiency and bureaucratic bottle neck in the registration process. Regrettably, the quality of care received under the scheme is questionable with accusing fingers pointed at major stakeholders including the NHIS, HMOs and the hospitals. This has in turn left out many people who may require these services but lack the necessary awareness and education to get a health care insurance for themselves and their families. The Health and Managed Care Association of Nigeria (HMCAN) said in an interview that the unfavourable developments emanating from the NHIS signals a lack of political will, a need for leadership restructuring, and proper description of the responsibilities of all stakeholders and the regulator . The sustainability and viability of a country’s economic and social growth depend largely on a vibrant healthcare sector hence the need for federal and state governments to make health insurance compulsory and affordable to the citizenry. This can be achieved by improved funding of the sector and subsidising the premiums paid by the citizens. Other steps that can be taken to further strengthen the scheme includes more supervision and sanctioning of erring HMOs and hospitals, increased accountability and advocacy to convince Nigerians that the health insurance scheme can work.

ANTHONIA OBOKOH

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Executive Travel Health Ade Alakija

Alakija, medical director Q-Life Family Clinic, Victoria Island, Lagos.

Risk Assessment: The Manchester United experience in Nigeria -July 2008

ould the virus that struck Wayne Rooney and Michael Carrick one of his fellow players been avoided? Indeed, did it really come from Nigeria, South Africa or even the countries he may have visited before then or even his home country. I am not trying to place the source of the virus on any countries door steps, but I want to show the possibilities of prevention, the possibilities of how and where it could have been transmitted and also with proper lab diagnosis, how the virus can with almost all certainty point to a particular country. I may also rule out certain possibilities taking into consideration incubation period, pre travel medication and vaccination and the possible immunity level of the traveller. The purpose of this article is to do a brief risk assessment of a traveller, who in this case is a Wayne Rooney who is part of an International football team. He is well and in top physical condition and is travelling to various tropical and subtropical destinations. He is on both vaccine and non-vaccine preventive measures. Many diseases including malaria and many viruses are usually defined in terms of likely hood of getting infected, for example the longer your stay, the higher your chances of getting it. In chronological order of the visit to Africa, Manchester United visited thus : 15th July departs for South Africa, 19th July kaizer Chiefs v ManU, 22nd Orlando Pirates v ManU, 26th kaizer chiefs v ManU, 27th ManU v Portsmouth (In Abuja, Rooney did not play), 28th July ManU arrive England from Nigeria(2days total in Nigeria). kaiz. It seems the foreign press had already tagged the visit to Nigeria a controversial one. Some say that, revelation will call into question United’s decision to fly to Nigeria for a money-spinning exhibition game against Portsmouth at the end of their ten day trip to South Africa. Sir, Alex is quoted as saying “It’s a virus he’s picked up in Nigeria, I believe, and it’s not a nice one”. I do not know if he was quoting medical personal or just his own layman statement. They say United took all the necessary precautions ahead of the Nigeria trip. The players took malaria tablets and, for those who had not travelled to central Africa in the last ten years, received the required

Yellow Fever jab. Both illnesses have been ruled out. “We have a laboratory here so we have all the facilities to treat it,” added the boss. “And the players took malaria tablets, so it’s not that.” A comprehensive risk assessment is not a guarantee of 100% protection but drastically reduces your chances of getting into trouble/illness overseas. Your personal life style measures are very important. As a footballer and a young man, he is at high risk of injury, sexually transmitted diseases and insect bites due to outdoor activities and late nights and should have a complete vaccine schedule which should include Tetanus update, Hepatitis B and A and flu shot. He will be covered by vaccinations recommended for living in Britain and may only need boosters in some cases. Risk assessment involves taking a comprehensive history, age and sex, medical history past and present family history current health status including pregnancy actual or planned, medication, food and drug allergies etc, also information on the travellers itinerary like destination departure date, length of stay, purpose of trip etc is necessary for proper advice and care. Risk assessment will be guided by the assessment in terms of; The Host factors: The Health of the traveller and his Expected behaviour abroad. Destination Factors: In assessing the environment he is going to, location, duration of travel and reason for travel will play a key role. Considering risk both to the individual and community, Significance To The Individual Traveller (1 to 5 points), Significance to the Community (1 to 5), Likelihood of Exposure (1 to 5) and Evaluation of Active Intervention for example Vaccines (1 to 5) the nearer you are to 20 which is the highest possible total, the more likely that intervention including anti-malaria’s or vaccines will be necessary. The big question is: “Did Wayne get the virus from Nige-

ria?” I have no doubt that ManU must have had their players consult with some of the best travel health consultants in the world. To briefly analyse the situation, 10 days in South Africa and then 2 days in Nigeria. Did they come into South Africa (Sub tropical) from Asia (tropical and sub tropical), the UK or any third party country? Two nights is a short period especially in good accommodation. That is not to say he cannot get infected. I believe it is premature to put the blame on Nigeria unless a more comprehensive analysis is done including finding out the strain of the virus if indeed it was a virus. Why Wayne not play in Nigeria did, was he already ill? From travel itinerary, incubation period of the bug, the strain of bug amongst other critical analyses, I believe it is easy to determine which country the bug came from, -not that it really matters (It does) -, because travel is fun and risk. Find below for your information only, extracts on the latest British behaviour abroad2014 Report- The Foreign and Commonwealth Office released their annual report on British behaviour abroad. The report provides incidence figures from the Foreign Office records that highlight the key problems British nationals experience when away from home. In the 2013/2014 period, 17,517 Britons needed Total Consular assistance whilst abroad, 717 were arrested for drug offences, Total arrests including drugs 5,418, Deaths4,110, Hospitalisations 3,157, Rapes 106, Sexual assaults 152, other assistance 4,485, Lost and stolen passports/Emergency Travel documents 31,134. If you look through the British Foreign Commonwealth office statistics especially for all countries were records are kept, you will be surprised at what can go wrong when you travel. Don’t forget to always have your fully charged international roaming mobile phone handy and the worldwide emergency number in any country is 112.

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

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Friday 18 January 2019

Company Review

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What to know about telcos mobile money push in Nigeria Stories by FRANK ELEANYA

hould all go according to plan, 2019 is the year mobile network operators (MNOs) provide mobile money services to their millions of customers in Nigeria, and potentially challenging the dominance of banks in the mobile banking landscape. The recent Guidelines for Licensing and Regulation of Payment Service Banks (PSBs) published by the Central Bank of Nigeria (CBN) more than paved the way for the entry of MNOs in mobile money. The objective of the new guideline is to boost financial inclusion through use of financial technology. Nigeria has about 40 million people that are financially excluded. CBN guidelines provide that banking agents, retail chains (supermarkets), mobile money operators; and MNOs (through their subsidiaries) are recognised as eligible promoters. Essentially, an MTN for instance, can through a subsidiary establish a PSB and provide services like accepting deposits from individuals and small businesses, which shall be covered by the deposit in-

surance scheme; carrying out payments and remittances (including inbound cross-border personal remittances) services through various channels within Nigeria; issuing debit and pre-paid cards in its name. African telecommunications giant, MTN and its counterpart Airtel are known to be leading the campaign for non-banking entities to participate in mobile money. MTN also plans to re-launch the service in South Africa in 2019. The service was originally launched in 2012 when the

company partnered with the South African Bank of Athens, Pick n Pay and Boxer stores to offer a mobile money solution that enables the opening of simple banks accounts via phones. MTN had to pull the plug when the market persistently returned weak traction. Rob Shuter, the company’s CEO, said MTN has since learnt its lessons and would be looking to implement the lessons in both Nigeria and South Africa when it launches in the markets latest second quarter. By the end of June, MTN

had 24.1 million active mobile money users in 14 markets. MTN’s active voice subscriber base in Nigeria hit 66,453,314 in the second quarter of 2018, according to data from the National Bureau of Statistics (NBS). The subsidiaries MTN will be expected to operate in the Nigerian space through its subsidiary Mobile Money Limited in partnership with Nigerian banks. Rob Shuter alluded to this in 2018 at the AfricaCom conference

in Cape Town, South Africa. In Ghana where it already provides services to thousands of its customers, the platform collaborates with 10 banks in the country and it operates through authorised agents who facilitate the service on behalf of Mobile Money Limited. Customers can use the MTN Mobile Money to send and receive money, top-up MTN airtime, pay bills (DSTv, ECG Postpaid, MTN Postpaid, School fees and more), buy and pay for insurance, pay employee salaries, pay for airline tickets and other goods and services. Airtel’s subsidiary, Airtel Money has been launched in 13 African countries and would likely be the flagship company to power its ambitions in Nigeria. The service allows users to send and receive money across networks, instantly top up airtime and also send airtime to someone else’s phone; make payments for utility bills, goods and services; link bank accounts to Airtel Money wallet and enable users check bank balances, deposit money from phone to bank account; and make cardless withdrawals from partner ATMs. In 2018, Airtel overtook Globacom to become the

second largest telecommunication company in terms of subscriber base with nearly 40 million subscribers. Expanded role for SANEF Until recently, the Shared Agent Network Expansion Facility (SANEF) was driven by Nigerian banks given that they bankrolled the initiative, but this might likely change and become bigger with the entry of MNOs. SANEF is a project powered by the CBN, Deposit Money Banks (DMBs), Nigeria Inter-Bank Settlement Systems (NIBSS), licensed Mobile Money Operators (MMOs) and Shared Agents with the primary objective of growing financial inclusion in Nigeria. The initiative involves on-boarding 40 million low income and unserved Nigerians into the financial system, increasing financial access points from the current 50,000 to 500,000 by 2020 and deepening access to mobile and digital financial products and services such as savings accounts, micro loans, insurance, pensions by Nigerians. The challenge however for MNOs is the poor state of infrastructure, weak interoperability with partner banks and weak broadband penetration.

How PayAttitude removes middlemen, boost transparency in JAMB

he challenge of dealing with so-called agents and paying extra charges that parents and guardians face while registering their wards for the Joint Admissions Matriculation Board (JAMB) examination may be a thing of the past with the new payment method, PAYATTITUDE. PayAttitude is a chip and

pin enabled tag-type solution that is linked to customers’ prepaid mobile wallet, enabling access to their account(s) for different payment transactions simply. At its launch in 2015, fintech company Unified Payments Systems (UP) had six money deposit banks signup to PayAttitude. Currently the number of

participating banks has increased to ten, including Access Bank, Diamond Bank, First Bank of Nigeria, Fidelity Bank, Heritage Bank, Sterling Bank, United Bank for Africa, Unity Bank, Polaris Bank and Zenith Bank. Collaboration with multiple banks gives users of PayAtttitude the capacity to carry out their transactions within

banks on the mobile application. A statement from UP sent to BusinessDay describes PayAttitue as the first and only multibank USSD and app with Pay-with-Phone-Number for Point of Sales (PoS), ATM, WEB, Mobile, and person-toperson transactions. While making the announcement for the commencement of the sale of

its 2019 application forms on 10 January, JAMB also said it is expanding its payment options to include the Pay-with-Phone-Number on PayAttitude. This enables parents, guardians and sponsors to authorise payments from wherever they are in a simple and convenient manner. During registration for examination

or nay other service provided by JAMB, candidates wishing to make payments will simply enter the phone number of their parent, guardian or sponsor on the PoS, WEB, Mobile or any other payment channel. The sponsor will instantly be prompted to authorise the payment by simply entering a 6-digit PIN on his or her phone.

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Locus Classicus UBA vs. Tejumola and Sons (1988) 2 NWLR pt 79

n this case, the appellant requested for a lease from the respondent. The request was however headed “subject to contract”. Subsequently, there was an agreement between both parties. However, the appellant later withdrew from the agreement. The respondent then sued for breach of contract. The respondent won in the High Court and the Court of appeal. However, the Supreme

Court overturned the judgement. The court held that the presence of the phrase “Subject to contract” meant that subject to the drawing up of a formal contract, the parties are still in the negotiation stage. However, Nnaemeka Agu JSC added that if all the basic terms to the contract have been agreed upon, the insertion of ambiguous words was just mere cosmetic surplussage.

The principle of natural justice 3. Pre-feasibility report must be presented 4. There must be evidence of technical persons that will help in doing the work 5. Land owners or the persons occupying the land must give their irrevocable consent 6. There must be evidence that the person applying is financially capable 7. Certified true copy of certificate of incorporation 8. Evidence showing that processing fee was paid

9. Specific area to be surveyed 10. Notice to owners of the land and a reply with regards to the rate that is to be paid 11. Names of minerals the applicant wants to exploit The Mining Cadastral Office that is in charge of granting the lease is expected to process the application and make a decision within 45 days. For the purpose of emphasis, the person to whom the lease is granted is permitted to only exploit the minerals that are specified in the lease.

Employment of foreign workers in Nigeria t is not uncommon for companies to recruit foreign nationals to work in the country especially in areas where the country lacks trained people who can handle things for them- usually in the technical aspects. Such foreign workers are usually referred to as expatriates. There are steps to take under the law before an expatriate can be allowed to legally work in the country. The first step that must be taken is for the company to first obtain an expatriate quota. The expatriate quota is a document that allows companies within Nigeria to recruit expatriates. There are approved jobs which the expatriate can take up. Therefore, it is not open to all jobs. Furthermore, the expatriate quota also

Odunayo Oyasiji

Procedure for obtaining a quarry lease in Nigeria q u a r r y o rd i na rily means a deep pit meant for the extraction of stones and other materials. The usual excavations done here are stones, sand, granite, chalk, clay, flint, gravel, gypsum, limestone, marble, marl, quartz etc. The law that regulates this area is the Nigerian Minerals and Mining Act 2007. The government agency that is in charge is the Mining Cadastre Office (MCO) – in Abuja, Nigeria. The right the lease confers on the person that obtains it is the right to carry out quarry operations on the land and remove and dispose of the minerals that are stated in the lease. It must be noted that the lease is usually granted over a land that does not exceed five hectares. Also, the duration of the grant is usually for five years. In case the person to whom the lease is granted desires to renew it, he or she must do so within three months before the lease expires. The procedure for obtaining quarry lease is listed below1. An application form that has been duly filled 2. The applicant must give an attestation that he or she hasn’t been convicted of criminal offence before

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specifies the period for which the expatriate is to work. The target is often transfer of knowledge. It is believed that Nigerians should have been trained within the period granted so that they can take up the role. Section 8 of the Immigration Act provides that any foreigner in Nigeria who is seeking employment or work permit must first obtain the consent of Comptroller General of Immigration of Nigeria. The consent of the Comptroller General is usually in form of expatriate quota. The second important step is for the foreigner to obtain a combined expatriates residence permit and aliens card (CERPAC). This is prerequisite for a person to even be offered an employment in

Nigeria. The card usually grants the right for a foreigner to stay and also specifies the activities the person can engage in (it can restrict the kind of job the person can take up). The card is usually valid for two years and can be renewed. The Nigerian immigration working with the Minister of Interiors are the government agency in charge of issuing the card. It must be noted that there are procedures to obtain both expatriate quota and the combined expatriates residence permit and aliens card (CERPAC). The expatriate quota is to be obtained by the company while the CERPAC is for the expatriate. The procedures will be discussed under separate subheads.

atural justice simply means or refers to the proper procedure for doing justice in a matter. This principle is hinged on two latin maxims i.e. audi alteram partem and nemo judex in causa sua. The first one (audi alteram partem) means that parties to a dispute are given the opportunity to express or state their sides of the story. It simply means that you must hear both sides. The second maxim (nemo judex in causa sua) basically means that you are not expected to be a judge in your own case. This is because justice can never be done where a party in a dispute is also responsible (directly or indirectly) for determining the outcome of the

matter. The principle of natural justice is always strictly applied and adhered to in the court of law. A decision or judgement of court that is arrived out without observing the two rules under the principle of natural justice will not stand. A party has the right to be heard- refusal to hear a party will amount to shutting the door against a person whose right is guaranteed by the law. The law presumes that there is no way justice can be done in such a situation. Also, a party who is a judge in his own case is likely going to end up favouring himself. Therefore, the law presumes that justice can never be done in such situation.

Procedure for obtining expatriate quota and combined expatriates residence permit and aliens card (Cerpac) in Nigeria

s discussed in the subh ead ab ove (un d er employment of foreign workers in Nigeria), two things are essential i.e. for the company to get expatriate quota and for the expatriate to get CERPAC. The procedure for obtaining expatriate quota is basically two. The accompanying document is the long aspect of it. The procedure is listed below1. The company is to submit an application to the Fed-

eral Ministry of Interior Affairs. 2. The following documents are to accompany the application- a. latest tax clearance certificate of the company b. certificate of occupancy or lease agreement of the property serving as the business premises of the company. c. licence or permit from government agencies (if any) d. Feasibility study report e. incorporation documents like memorandum and article of association of the company

f. evidence of machineries that are imported g. evidence of a contract that is under execution, its value and duration. h. joint venture agreement between Nigerians and foreigners i. There must be business permit if the company is not totally owned by Nigerians. J. proposal on salaries to be paid to the expatriates. k. for companies operating in the oil and gas sector, there must be a noobjection letter from Nigerian content monitoring board. l.

reference letter from bank. The procedure for obtaining CERPAC card by the expatriate is below1. Application addressed to Nigeria Immigration Service for CERPAC. 2. The application must be accompanied by -Approval of expatriate quota, Properly filled CERPAC statutory form, international passport with a visa endorsement of subject to regularization (STR), an STR package containing STR docu-

mentation received from the Nigerian consulate, a letter of application from the employer that is written on behalf of the expatriate requesting for the regularization of stay and accepting immigration responsibility for the expatriate, resolution of the board of director of the company, Prescribed fees is to be paid and evidence shown, the expatriates letter of appointment must be shown and an evidence of the acceptance of the employment offer.

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Hotels Top BusinessDay Partner Hotels

Four Point Hotels (Oniru Chiefatancy Estate,Lekki)

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

What you should know about hotel star rating OBINNA EMELIKE

s the cost of business and leisure travels keeps increasing, it calls for making the right choice of hotel accommodation, especially in the New Year. Yes! No matter how long you are staying and the number of people you are going on vacation with, choosing a hotel is key to your level of comfort, enjoyment and even security. Hotels are usually rated with a star system, and this generally correlates with the hotelâ&#x20AC;&#x2122;s quality and especially price. When choosing a place to stay, ask yourself the following questions: How much time will I spend in the hotel? What amenities are most important to me? Am I looking for a home away from home or just a place to lay my head for the night? Knowing your

own expectations can make choosing among hotels a lot easier. One-star hotels are best for budget travellers who are not too picky about where they sleep as long as it is cheap. Not usually the cleanest or most updated places, these are meant for those guests who do not plan to spend a whole lot of time in their hotel room. If you are more interested in the sightseeing than the size of your pillow, these hotels might suit you just fine. In the two-star range you will find hotels that serve as a bed for the night but offer little comfort. These hotels are good for driving trips where you only plan to spend a limited amount of time and then hit the road again. Do not expect too much as no fancy sheets or down comforters, probably a stall shower instead of a big bathtub, and definitely no champagne and strawberries. There may be room service, but it is probably

more likely that you will ask the lobby for the local joints. Three-star hotels offer clean and comfortable accommodations but may not offer the same amenities as their pricier cousins. Guest rooms are less elegant, but comfortable nevertheless. Bathrooms are generally pretty standard. But if you are looking for a rain shower, you probably will not find it here. Service is fine, though the staff do not bow at your feet quite the same way. Many guests find this level of service more comfortable; others miss being treated like royalty. Four-star hotels are quite elegant. Usually the difference is slight. Maybe the rooms are a bit smaller, the linens a slightly lower thread count, and the shampoos less expensive. The biggest difference seems to be in the price. Five-star hotels generally are the most expensive. You are paying for luxury. These hotels usually of-

fer butler service, large bathrooms with soaking tubs, spa-inspired bath products, and high-end bed linens. Lobbies in fivestar hotels are laden with marble and fresh flowers. Service is impeccable. But when a hotel offers services and facilities above five-star, it can claim to be six or seven-star. In actual sense, any hotel that claims to be seven-star is just for advertorial as fivestar is still the benchmark and the highest offering in hospitality business across the world. Though the star-rating system created in United States of America by Mobil Travel Guides is a very subjective way of measuring hotel quality, most hospitality experts believe that guests rate hotels better than any agency because they are the ones to say how satisfactory or poor a service or facility is. However, choosing right also means utilising you bargaining power as a customer. When you get to a hotel at night, you can get the room of your choice at half the price if you bargain well. After all, the hotel will lose money if they allow you sleep elsewhere when the room is still empty. If you have chosen to stay in hotels during your travels this year, choose wisely based on your own personal needs. As long as you are willing to pay a price equal to your expectations, you will not be disappointed in your choice of accommodation this year.

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

InterContinental Lagos 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

Best Western Hotel Hotels 12, Allen Avenue C/O Funmi (Front Office Manager)

Protea Hotel (GRA Ikeja) GRA Ikeja

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

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

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In Kwara, abundance of paddy rice but scarce mills CALEB OJEWALE Twiiter: @calebtinolu

housands of farmers cultivating rice in Kwara state are struggling to find market for their paddy rice, even though in some quarters, it would be said that Nigeria is currently undergoing a ‘rice revolution’. Proximity of manufacturing or processing facilities to the source(s) of raw materials has often been described as one of the basic principles in ensuring a seamless production process. However, the opposite appears to be the case in Kwara state during a visit to some rice producing communities. TheRiceFarmersAssociation of Nigeria, Kwara state chapter, says it has about 10,000 registered members, and while the figure of non-members is not known, it could be as much as half the population of registered rice farmers. Interacting with a number of farmers during a trip to Edu and Patigi local government areas - some of the prominent rice producing areas in the state - farmers and bulk traders of paddy rice, complained of an inefficient off take system where they have to rely on rice mills coming from several states away to purchase paddy. This denies the locals of jobs and even for farmers, better revenue from their paddy rice, since aggregators have to take a cut from taking outside the area. Though no official data exists on volume of rice produced in Kwara state, some estimates indicate it could be close to 500,000 metric tonnes. The response from farmers and paddy rice traders, when

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Buhari appoints Isegbe pioneer DG for quarantine service

P Workers manually thresh rice on a farm in Lafiagi.

asked about any available mill in the state is a rice-processing mill said to be located in Offa. For the most part, rice grown on the fields in Kwara, find its way to Labana mills (and others) in Kebbi, and Kano state was also frequently mentioned. For these farmers in Kwara, any investor that situates a rice mill within the rice producing communities, is guaranteed of a steady supply of raw materials. Abubakar Haruna, the village head of Duku-Lade, now in his 60, said in an interview, that he grew up meeting rice cultivation in the village. “Rice production here has been in existence for more than sixty years,” he said. “Even though imported rice is no longer available, still, there isn’t market for our (local) rice as we want it. Till today, people want to sell their (paddy) rice, but no market at Lade,” said Haruna, who also stressed, “Be it private or government that can assist us with a big rice mill here, if there is a rice mill in Lade, it will help us a lot.” “If we can have a rice processing mill here, even the farmers will enjoy because

there will be an improvement price. With a rice mill here in Lafiagi, we believe there will be increase in money going to farmers, and with that, they will increase their production. The price of paddy sometimes discourages farmers,” said Siddik Abdulahi, Kwara’s RIFAN chairman. While the farmers eagerly long for big rice mills, that can absorb the volume of rice produced within the state, aggregators are cashing in on an opportunity to play intermediaries. However, what appeared to be impressive in this is the gradual transition to weight based transactions. In the past, paddy rice like most other agricultural commodities was sold by bags not weight. This meant, two farmers could offer bags of the same commodity and be paid the same amount because the bags looked equal in size. The weight, which is what matters, was not a factor. However, during the visit to Lafiagi, this is gradually changing. Umaru Magaji, one of the paddy rice suppliers in Edu local government, said he

Picture by Caleb Ojewale

supplies to companies in various states, including “Argungu and Labana in Kebbi state”,and some others in Kano state. Magaji explained that the standard to buy based on weight was put in place by the big rice milling companies that he supplies. Every day, at least three trucks, and as many as five trucks, each containing 500 bags of paddy are loaded from Magaji’s depot. Other aggregators gave similar numbers. At the time of visiting the community, paddy rice was sold at N100 per kilo, which for a 75kg bag would translate to N7,500. It was revealed that the rice mills provide these aggregators with cash up front, with which they purchase the rice at stipulated prices based on weight. Other aggregators like MuhammadSaidi,alsopurchase paddy rice from farmers, but using the old method of fixed prices per bag. They simply lift it up, and if considered ‘heavy enough’, the money is paid. For both types of aggregators, an important thing they check is the moisture content, which has to fall within a minimum of 7 and maximum of 13.5.

resident Muhammadu Buhari has approved the appointment of Vincent Isegbe as pioneer director general of the Nigeria Agricultural Quarantine Service (NAQS). Until his appointment, Isegbe held the designation of coordinating director at NAQS. The appointment, as noted in a statement, took effect from December 13, 2018 and is for an initial period of five (5) years. NAQS was established to promote and regulate sanitary and phytosanitary measures with respect to the export a n d i mp o r t o f p l a nt s, veterinar y and aquatic resources in Nigeria. The mandate of the Service is to ensure the conformance of Nigerian agricultural products to international standards –particularly, the requirements of the International Plant Protection Convention (IPPC) and the International Office of Epizootics –and to stimulate international trade in Nigerian agricultural products. During his term as Coordinating Director, Isegbe launched the Export Improvement In i tiati ve, a ba ckwa rd integration intervention designed to increase the volume of export in customary Nigerian agricultural commodities and emerging commodities such as sesame, soya bean, cinnamon, pigeon pea,

sugar cane, honey and snail. As part of the Initiative, NAQS says Nigeria exported 1,983 containers of hibiscus (zobo) flower to Mexico within the first nine months of 2017, earning US$35 million. Under his leadership, the agency also says it recently inked a deal that won Nigeria an export order for US$100 billion worth of pigeon pea from India. NAQS was also ranked the 2nd most improved MDA in Nigeria in the 2018 ranking on efficiency in the Ease of Doing Business Report authored by the P re s i d e n t i a l E n a b l i n g Business Environment Council (PEBEC). I s e g b e ’s e d u c a t i o n a l background includes his Doctor of Veterinary Medicine degree from the Ahmadu Bello University in 1985, and a Master’s degree from the University of Maidugur i in 1990. Over the years, he has also undergone several trainings and courses within Nigeria and overseas.

Grow Africa, NABG plan first national tomato stakeholders’ summit

stakeholders summit being organised by G ro w A f r i c a a n d the Nigeria Agribusiness Group (NABG), is bringing stakeholders together in order for farmers to leverage on the knowledge of experts to boost their production and increase output. This will ultimately impact on private sector investment

in the tomato value chain in Nigeria, which currently lacks required investments, particularly in processing. Tomato farmers and other players in the value chain have over time, complained of inefficiencies in the value chain, particularly high post harvest losses and lack of local processing, which makes the sector realise far

less than it should. T h e o n e d a y To m a t o Stakeholders Summit has been scheduled to hold in Kano on Thursday 24th January 2019. The summit has received the support of other partners working in the Tomato value chain such as, PYXERA Global, Te c h n o S e r v e Ni g e r i a , GAIN Plan Project, AGRA,

OTACCWA and TOGAN, t h e u m b r e l l a To m a t o Association in Nigeria. The summit, organisers say will highlight the new direction of the tomato value chain following the commencement of the implementation of the new tomato production. It will address some key factors limiting investment in the

tomato industry in Nigeria, proffer actionable solutions to pre and postharvest loss problems, while also addressing production challenges faced by farmers. The summit will have in attendance key government officials, industry leaders, stakeholders, policy makers and partners in the tomato sector who share similar

vision of developing and enhancing the tomato value chain in Nigeria and also to forge strategic partnership with local farmers and investors in the 12 largest tomato producing States. This article continues in the digital edition and online at http://www. businessday.ng/

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At last, Biggie’s house is in Nigeria Stories by OBINNA EMELIKE

hen Multichioce Nigeria launched the third season of Big Brother Naija tagged ‘Double Wahala’ on January 28, 2018 on DStv Channel 198, most patriotic Nigerians queried why the Nigerian scripted version of the Big Brother reality show should be held in South Africa. They asked why the organisers did not find a house worthy enough to host Big Brother and the housemates in Nigeria; an acclaimed giant of Africa. Some even tagged the show ‘Big Brother South Africa’ for the failure of the organisers to produce it in Nigeria. But on January 15, 2019, Multichioce Nigeria surprised everyone when it announced auditions for the 2019 edition of the real-

ity show, and most importantly, that the show, which is now in its season 4 would be held in Nigeria. On reading the story online, someone commented on his twitter handle that this is now truly Big Brother Naija, and many others also shared same view noting that it was wrong to have produced a Nigerian content for local consumption in another country. The reasons for hosting the show in South Africa had always been the lack of world class facility to host a show of such magnitude going by the need for 24 hours electricity to run the show, technical and logistic issues. But with the hosting in Nigeria, the country will now boost of a facility that can beyond hosting Big Brother also host worldclass events. Even with the development, some concerned Nigerians are curious to know how the organisers will solve the

epileptic electricity power supply challenge to deliver the 24 hours a day show. Well, the organisers are ready and even promise a bigger show this year. John Ugbe, chief executive officer, MultiChoice Nigeria, said: “This fourth season promises to be even bigger

than previous editions and underscores MultiChoice’s position as the biggest investor and driver of entertainment content on the continent”. Since its maiden edition in 2006, the Big Brother Naija reality TV show has produced some of the

country’s biggest pop culture influencers and celebrities including Ebuka ObiUchendu, Gideon Okeke, Katung Aduwak, Bisola Aiyeola, Efe Ejeba and Uriel Oputa and mostly recently Miracle Ikechukwu, Tobi Bakre and Cynthia “Cee-C” Nwadiora.

As well, the show is now wooing more investors. While Payporte headlined the season 3 edition, Bet9ja; Nigeria’s number one betting website, is the headline sponsors of the new season. Ayo Ojuroye, CEO, Bet9ja, said: “As the leading gaming company in Nigeria, we believe in changing lives. This singular attribute coupled with the zeal and passion attributed to the Big Brother Naija platform aligns with Bet9ja’s core values and we are honoured by the opportunity to headline this year’s edition. Bet9ja will continue to support programmes that will connect more young Nigerians to their dreams”. The auditions will hold from February 1-2, 2019 in eight locations across Nigeria, an increase from previous editions. However, the show is now truly made in Nigeria, so, get set to watch while it lasts.

Film board draws attention to movie content, parental guide

he National Film and Video Censors B oard, NF V CB , has re-echoed the need for stakeholders in the Nigerian film industry to submit their film productions to the board for classification to enable them meet their market targets. The board as well, is drawing attention of parents to monitor the type of films their children watch on television so as to safeguard them from getting corrupted with films that are not in tandem with the traditional norms and values of the Nigerian society. In recent times, the NFVCB had discovered shortfall on standard by filmmakers who defaulted the regulatory authority’s statutory rules, and as well, rose to protect the country from harmful movie contents. It observed that some filmmakers failed to connect with their original film contents and end up producing films that are detrimental to the nation’s cultural values. It wants filmmakers to make films that children can watch in cinemas without exposing them to violence, sexual violence and nudity.

At a training workshop on classification in film production tagged ‘Celebration of Women in the Business of Film and Production, which held recently in Lagos, the board enlightened filmmakers on the essence of classification, which is needed for their film contents to strike economic interest. Speaking at the workshop, Adebayo Thomas, director general of the board, noted that classification of films is necessary to guide viewers appropriately on contents to watch, especially kids and teenagers. Adebayo stressed that the essence of the workshop

was to broaden knowledge, expose filmmakers, and to enable them have critical reviews of their scripts prior to production. The review, according to the director general, would boost productions that meet all regulatory standards, contents that would not be restricted, and also generate income for the filmmakers. Explaining the categories of classification and acronyms, NFVCB said: PG means (Parental Guidance), SPG (Strong Parental Guidance), HS (Hate Speech), M (Matured), and 15 (accompanied by their parents).

The director general said that the board bans films that are not in tune with norms and values of the society and that could also instigate crisis. On capacity development, he said the board was prepared to live up to its statutory obligation as it had sent over one hundred of its staff abroad to hone their knowledge in matters of films through trainings, workshops and seminars. Hilda Dokubo, Nollywood star actress, was the keynote speaker at the workshop. Dokunbo gave insight into classification of films and ratings. She said:

“The goal of classification is to inform the public about the nature of films and also allow filmmakers to express themselves”. Dokunbo explained that classification educates and informs the public about the content of the film before watching it, hence enabling a viewer to make the right decisions based on their age and viewing rights. The Nollywood thespian placed premium on contents as a factor that should be prioritized by the filmmaker to ensure production meets goals, while cultural norms are protected. She advocated for the protection of children from profane films even as the industry globally has been battling with abuse. She proposed classification of films that are gender sensitive to protect the girl-child from inferiority complex, especially from her male counterparts. She suggested the creation of another group (classification) to help parents groom children into adulthood. The Nollywood gender film activist argued that Nigeria strives to be like Hollywood, but not in terms of content and technicalities.

Her reason stemmed from the fact that the traditional norms and values of the Nigerian society vary from that of the United States of America. For instance, in the US, homosexuality and lesbianism are practiced and shown in certain cinemas. But such acts are considered abomination in Nigeria, and attract a legal punishment of 14 years imprisonment. This means that what applies in the American society may be prohibited in Nigeria. The organisers of the workshop urged filmmakers to submit their works to the Censor’s Board for classification in order to define the contents and market of their production. At the workshop, Tunji Azeez, a business consultant with specialisation in mentorship, highlighted that mentorship is necessary for successful career development, accountability, responsibility and discipline. Azeez encouraged people who want to attain to greater heights in their career to seek experts to give them the right guide and counseling to actualize their vision, especially people in the film industry.

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Movie Review of AQUAMAN Linda Ochugbua

f you are searching for a nice action movie to keep you thrilled this period, then search no further because Aquaman has got you covered. I am sure they never thought they would have this much acceptance and love from a lot of people. There were so many things nice about this movie; from the good-looking lead actor to the storyline that made it look so real. So far this movie has raked in a total $888m till date and was only released on the 21st of December 2018. Although it didn’t do so well in the domestic market, the international market however, have loved it so well and making it one of the highest grossing DCEU till date (DC Extended Universe) beating the ‘Wonderwoman” benchmark. The movie industry has seen a lot of tremendous growth and record breaking this last 2018, and seems like it can only get better, as most of the underdog characters are turning out to be superheroes and are cashing out

to the banks. We are seeing growth and changes, also witnessing fantastic records being broken by smaller non famous characters and heroes and I am sure 2019 will be even better. The movie was written by

Will Beall, David Leslie Johnson, and directed by James Wan, a fantastic storyline that looked so real, despite being a fictional tale. I loved the production, cinematography, the storyline, the cast and the breathtaking locations; I adored absolutely everything about the movie. The movie started by taking us down memory lane by showing off the beginning of Aquaman’s life; how his earthly father met his mermaid mother one day on earth, they fell in love with each other and had him. The main issue was that she had to return and when she did, she was banished so Aquaman had to stay on earth with his father, but he grew up with super powers which he could use to control everything on water. He was super strong and also handsome. The movie took a whole new twist when his wicked brother wanted to take over the entire water world and he was called upon to step in and save his people who had all their hope in him. At first he refused but later on he went on to fight for them and he saved the kingdom. I absolutely loved the end of this

movie; it had a typical happy ending. VERDICT: I really can’t help but score this fantastic movie a beautiful 10/10. Yes, you read right; I already stated why

above. Just when we thought the movie was over, they brought us even more excitement. Most of us (in the cinema) didn’t want to leave when the movie was over; it just felt like there were more scenes. If you haven’t still seen Aquaman, please make sure you do before it goes off the cinema. This is a 100% recommendation from me this season. MOVIE CREDIT Cast: Jason Momoa, Amber Heard, Nicole Kidman, Willem Dafoe, Patrick Wilson, Dolph Lundgren and many more Genre: Action and Adventure, Science Fiction & Fantasy Director: James Wan Ratings: PG-13 (for sequences of Sci-Fiction violence and action and some languages) Written by: Will Beall, David Leslie Johnson-McGoldrick Runtime: 143 minutes Studio: Warner Bros. Pictures Feel free to review any movie of your choice in not more than 200 words and send via mail to linda@busi-

nessdayonline.com Also stand a chance to win a free movie ticket if you answer the question of the week correctly on social media. Linda Ochugbua @lindaochugbua

with Janet Adetu

Ready set Go!

t’s time to reflect, two weeks have gone by in the new year already how prepared are you? Sounds like an easy question that requires an easy answer. Are you prepared simply “Yes” or “No.” There is no room for “Sort of “answers as this requires having a positive mental attitude moving forward. A lot has gone on in the past year, for some people businesses went very well, for many business did not go so well as they hoped, and for others things possibly went downhill. Once again through it all it still calls for being thankful and grateful. I ask are you prepared just to give you some perspective into how to approach the New Year with some confidence, inspiration, ideas, a sense of calmness other than confusion. It is so easy to go back to work or business and continue as usual and follow the same routine with no change or no foresight into the future. This is not a leader’s attitude to life and the consequences are big, it can surely set you back. For progress, the next level and self-fulfillment it requires planning, thinking out of the box, doing normal things differently and walking into the next phase with the right frame of mind. As the new Year is now here I am once again wishing all our esteem readers a prosperous 2019 ahead, a better brighter and bigger future. My thoughts on paper have now been reflected into a pack of note cards where I have some of my inspirational quotes. I use them to reflect on each day as I embark on challenging myself each day. Take a look at some of my personal strategies to prepare for the New Year. SETTING for 2019 Declutter Before you do anything now is the time to sit down take a break with a pen and notepad and a cup of tea or coffee. First make a list of those things you want to declutter in your life. Declutter all those excesses in your home that are creating extra baggage, extra rubbish, extra unwanted load. By this I mean your living space, your bedroom, your wardrobe, your kitchen and other areas at home you think could do with cleaning out, tidying up and revamping. It may even be something you might have set your mind on for a

while, but have not created that time. STOP the procrastination, intentionally set out to do a complete clean out. Declutter does not stop at home; declutter your office, your personal desk, your official cupboard, drawers. Don’t forget your car and all your personal effects start the New Year on a clean slate. Goal Set This cannot be over emphasized, as you are thinking about them start writing them down, that is your personal goals. Join me in January to kick start the New Year I encourage you to start our monthly challenge exercise, get our 4P’s journal to track your progress, make your goals life goals all about your future progress and the way forward. Are you ready for the community as we take hold of the future? For more detailed information contact: janet. adetu@jsketiquetteconsurtium.com Resolution Set Do you have any resolutions for the New Year, those that

you sure you will follow through. A bit like setting goals for yourself but it may also mean you are identifying those things you don’t want to continue any more or those things you will purposely accomplish in the New Year regardless of how long. I will point out though that this time promise yourself to take it longer than the first quarter of the year. Do not be side tracked or discouraged, keep it alive by being positive about your attitude and actions. New Year resolutions are common but have the tendency to be abandoned along the way. Try not to have many just a few that you will accomplish. To Do List This to do list should be a practice that if you are doing keep doing, if you have not started your day with it begin this New Year. Start your year with a few to do items that are general and very important and kick start

your month week by week, day by day, with you simple committed to-do list. Make life simple, just put your top five (5) actions for the day to start your list, place a star on the top three (3) then get set to go. Don’t forget to tick off as you accomplish those daily tasks. Reward yourself as you reflect at the end of the day. You may review and reminisce your to do list as you are able to cope with your time management per day. Learn, Unlearn, Re-learn To feel satisfied that you are truly prepared for 2019 take a little time out to boost you knowledge base, educating yourself is the best way to keep up with the constantly changing times. The digital space is here to stay so tap into it right away. You don’t need to go too far to learn new things, just look at everything around you, books, magazines, newspaper, online courses, webinars, coaching calls and lots more. It is more important to drop all the bad habits you have picked up in life. This requires you to unlearn

things you know are not right but have taking to be the norm. Correct your poor manners, re-correct your attitude, take that paradigm shift to be refined and transformed. Cut out rudeness, inconsideration and unkindness. Go back and relearn everything that is good that can make that big difference in your life. Take a break re-learn interpersonal skills that will open the doors of success for you. L et me say that you should take advantage our free lunch and learn corporate sessions for you and your employees to make that required difference. We continue to promote peak performance in people. Contact us @janetadetu, @ jsketiquetteconsortium.com Look forward to accomplishing your goals for the New Year. Compliments of the season!

BUSINESS DAY

Harvard Business Review

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Friday 18 January 2019

ManagementDigest

Why most performance evaluations are biased, and how to fix them Lori Mackenzie

or many companies, performance-review season is kicking off with the new year. Although every organization relies on a different evaluation process, most follow a predictable pattern: First, they invite employees to write about their accomplishments and what they need to improve. Then managers write assessments of their work, offer feedback and rate their performance on a scale of how well they met expectations. Underlying this process is the belief that by reflecting on people’s performance and codifying it in an evaluation form, we will be able to assess their merits objectively, give out rewards fairly and offer useful feedback to help them develop. But while we may strive to be meritocratic, our assessments are imperfect. As innocuous as the typical form may seem, our research has found that it often allows for our implicit biases to creep in. The problem is the “open box.” Most forms ask managers broad questions about their employees — e.g., “Describe the ways the employee’s performance met your expectations” or “What are their significant accomplishments?” — and offer a blank space or open box that managers can fill as they see fit. These questions are general and open-ended because they must apply to everyone in the organization. So when the form refers to “your expectations,” managers are expected to know what the specific expectations were for that particular employee. The trouble is, when the context and criteria for making evaluations are ambiguous, bias is more prevalent. As many studies have shown, without structure, people are more likely to rely on gender, race and other stereotypes when making deci-

sions — instead of thoughtfully constructing assessments using agreed-upon processes and criteria that are consistently applied across all employees. Our research shows that individuals can take actions to reduce ambiguity and be more objective when filling in the open box. Our research team conducted in-depth studies of evaluation processes at three companies based in the U.S. We uncovered patterns of ambiguity in how performance reviews are written that can lead to a disadvantage for women. In analyzing men’s and women’s written performance reviews, we discovered that women were more likely to receive vague feedback that did not offer specific details of what they had done well and what they could do to advance. Men were more likely to receive longer reviews that focused on their technical skills, compared with shorter reviews for women that were more concerned with their communication skills. Next we observed some performance discussions at two companies in what are known as “calibration” or “talent review” meetings. At these

sessions, leaders have a fixed period of time — for example, three minutes — to provide rationale for an employee’s rating, and then they discuss and align their ratings. In some meetings, the conversation focused on the employee’s accomplishments and strengths. In others, a balanced view was given, including opportunities to improve. People varied in what criteria was important or valued, and these patterns of variance often followed gendered expectations. The informal format allowed leaders to override one another’s presentations with simple phrases like, “The style stuff doesn’t matter. He is great, and it is irrelevant.” And lack of structure led to very different reviews that tended to advantage men. This kind of variance in evaluations did not surprise many managers. In one project, only 15% of women and 24% of men managers had confidence in the performance evaluation process, while most viewed it as subjective and highly ambiguous. At one site, we identified a set of actions that managers could take to make their evaluations

fairer and more effective. With the input of the managers, we created a checklist to help them consistently reference specific and predetermined data when filling the open boxes. It asked, “Did you collect the following evidence/data for this employee over the past six months?” and “While writing your evaluations did you consider the following” previously agreed-upon criteria? At the end of our engagement, 90% of the managers told us they felt the process helped them be fairer and more consistent. They also felt more confident. In another site, when managers consistently applied their criteria to employees, there was a reduction in the gender gaps in ratings, eliminating the overrepresentation of men in the top performance category and women in the middle. You can make your performance reviews fairer and more consistent too, even if your organization does not change the review form. Here are three simple, yet effective things you can do to “constrain” the open box: — CREATE A RUBRIC FOR EVALUATIONS: Managers often report that they start writing their evaluations without first reviewing their employees’ original goals or establishing a methodology to ensure the assessments are fair. An effective rubric first defines the criteria against which the employee’s performance will be assessed. Then, it requires taking evidence from the employee’s outcomes to assess whether they did or did not meet expectations. By first creating a rubric, then filling in the open box with your assessment and feedback, you will be less prone to be influenced by your gut reactions. Research shows that when you first agree to the criteria used in the assessment and then you

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

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make the evaluation, you are less likely to rely on stereotypes and your assessments are less biased. — CREATE BETTER PROMPTS: When writing reviews, managers often vary in what they cover, how much they write and even how specific or vague the comments are. It might be tempting to think this variation reflects the employee’s actual performance, when in fact it might be implicit bias in action. Better prompts can help you approach each review in a similar manner, ensuring everyone is evaluated and considered in a consistent and equal way. Take the query: “Describe the ways the employee’s performance met your expectations.” To be fairer and more consistent, you might prompt yourself to identify three specific, measurable outcomes for each of your employees. — RUN A CONSISTENCY CHECK: Get in the habit of rereading all reviews for consistency. Even if you have clarified the criteria and created checklists to guide your assessments, you may still fall into patterns that are more favorable to some employees. By looking for uniformity, or patterns of variation, you may find additional ways to remove bias. It might be tempting to think we can just trust our instincts. But implicit bias is difficult to see and therefore difficult to stop. These strategies are powerful precisely because they help us bypass our imperfect and often compromised impressions — and to deliver on our intention to be fair to everyone.

Lori Mackenzie is a co-founder of Stanford VMware Women’s Leadership Innovation Lab, where JoAnne Wehner is a sociologist and Shelley Correll is director.

Friday 18 January 2019

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BUSINESS DAY

Leading Woman ADENIKE, the audacity of positivity in the midst of peculiar encounters KEMI AJUMOBI

denike Oyetunde’s story is that of a young girl whose life’s trajectory changed one fateful day owing to a fall. It chronicles her journey through denial, strength, resilience, confusion, pain, tears, brokenness, surrender, and finally, freedom. Though a broadcaster and social worker, Adenike is a Lawyer with almost ten years at the Nigerian Bar Association. Though not in active practice, she delved into the world of media (radio) until a few months ago. She had the only legal show on the air taking on topical issues and helping to solve numerous problems while giving free legal counsel alone or with the help of others. Adenike Oyetunde, is the founder of Amputee United Initiative (AUI), she had been nominated for several media awards, winning some and getting others for recognition on the job. Adenike’s passions include driving conversations around the plight of disability in Nigeria. This passion has led her to participate in and organise initiatives and social groups, specifically for amputees and other disabilities. Adenike in 2017 was a speaker at the TedX Gbagada, Lagos speaking on Philanthropy and the role of empathy in the human society. Her work has earned her several platforms, spanning for hosting events, moderating several sessions and been part of many panels. Where it all began I attended primary school was at Command, Bonny Camp and then secondary school was at Queens College, Yaba. QC was a great experience and after that it was off to Olabisi Onabanjo University, Ago Iwoye. During my time in the University, I slithered and fell on my right knee, and I was in excruciating pain that refused to go away. It was after this I was diagnosed with Osteogenic Sarcoma (a malignant bone tumour) which meant I was later to amputate my right leg if I wanted to live. It wasn’t an easy process, it took me a while but I got to a point that all I needed was to live. I was tired. I was sick. I was dying. I had become a shadow of myself, and the nearest and quickest solution was all I longed for. I am still learning the daily journey, to enjoy where God is taking me, learning to trust that He’s in the journey and I shouldn’t bother what the destination is, His plans far outweighs mine, no matter how much thought or planning I put into it. I reminisce and wonder how I pulled through those horrible moments but I am grateful to God for amazing parents and also my friends and members of my campus fellowship. The Book: ADENIKE The book, which chronicles my journey through self-rediscovery, also

contains tales about strength, hope, faith, charity found in the least expected places, the role of parents and finding God through one’s continued process to evolve. Adenike is a real life story based on the Power of Faith, Hope and Love against the odds of life’s circumstances. It is about an intriguing real life story of a young girl whose life’s trajectory completely changed overnight and is still evolving. It’s a story that will take you through my denial, strength, resilience, confusion, pain, tears, brokenness, surrender, and finally my freedom and liberty into true Life. If you ever doubt that you cannot possibly pass through the trials and tribulations of life no matter how harsh it may be, Adenike will inspire you to re-think that though. Amputees United Initiative (AUI) The initiative was birthed from a place of personal journey to provide a safe haven for amputees, fresh and old, where journeys will be shared and experience heard, to strengthen each other, as these special humans continue to clamour for an inclusive society geared towards preparing Lagos and Nigeria towards the United Nations path to achieving an inclusive society in line with SDG 17. It also creates a platform for persons with special needs to discuss matters affecting them specifically; ranging from educational needs, medical needs and infrastructural needs. Amputees United Initiative is an initiative dedicated to enhancing the quality of life for amputees. With the support of the public, we are helping amputees live well with limb loss, raising awareness about management of limb loss and providing a platform to help them live their full and thriving lives. My ultimate goal with the initiative is to create a facility encompassing amenities to promote adaptive lifestyle (learning to use prosthetic limbs), establish recreational centres that are suitable for people with special needs, a gym specifically for PWDs; equipped with cycling and swimming facilities. Where it can be purchased Roving Heights Lagos, Amazon, Kindle, Book Peddlers Ng Lagos, Gift Source Abuja, Terra Kulture, Jazz Hole Ikoyi, Jed Mega Stores The Palms, Lekki, reading chapter one free on adenikeoyetunde.com, Boldoz Book Store Uyo, Bambooks, Patabah Books Surulere, Lagos, Okada Books, BuyBooks in Port Harcourt, Book Sellers in Ibadan. Time on radio I got an internship slot on radio, at that time the only talk radio in Lagos and Nigeria. I had learnt a few things, which propelled me as a suitable candidate for a job when they need arose. I hosted the only legal show on

radio ‘Legal Angle’ and one of the best Sunday morning show ‘The Refresh’. However, my stint on the job, almost five years later came to a somewhat abrupt end when I was fired.

it’s equally beautiful. Life has taught me never to expect anything from anyone, this is a hard one; still learning. Life has taught me to help, give, guide and protect, as many as I can.

What is the greatest lesson life has taught you?

How have you been able to stay strong through it all?

...that life will happen, at some point. It’s fine; try all you can, move on. It’s a very crazy world we’re in, but

I am not strong every time, of course not. I break down, I am weak, I am tired, I am confused, I want more.

But, in all these seasons, I try all I can, where I can’t, God has blessed me with this amazing group of individuals (my HTP family), I reach out for help. Final words Find your peace, through life’s seeming chaos. Guard your joy. Be intentional about living. Be all you were made for.

BUSINESS DAY

NATIONAL DISCOURSE

CHUKA UROKO

he saying is common that the problem with Nigeria is leadership; not the people, because it has the best crop of intellectuals any country could possibly get; not the economy because Mother Earth has been quite generous in bestowing the country with rich natural resources, and not even its governance because the presidential system of government it practices is one of the global best. From independence till date, Nigeria has had a good number of arrogant and lawless leaders at all levels of governance with the federal government making a mince-meat of it in an irritating and absurd manner. It is pretty hard to see a Nigerian leader that

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here are indications that the Federal Government may have resolved to review the revenue allocation sharing formula following persistent pressures from states as a precondition for payment of the new N30,000 Minimum Wage by states. This was one of the major fallout of the National Economic Council (NEC) meeting presided over by Vice President Yemi Osinbajo at the Presidential Villa on Thursday. BusinessDay gathered that the NEC also resolved to take the thorny issues to the Council of State for further deliberations. The decision to consult with the Council of State, which comprises the President, who is the chairman; Vice-President, who is the deputy chairman; all former Presidents of the Federation and all former Heads of the Government of the Federation; all former Chief Justices of Nigeria; President of the Senate, speaker of the House of Representative; all the Governors of the States of the Federation, and Attorney-General of the Federation was arrived at the NEC. A cabinet meeting presided over by President Muhamamdu Buhari was called to fine tune the Bill this

Friday 18 January 2019

Executive arrogance and lawlessness in election season is not arrogant and lawless. Most times, because of their arrogance, these leaders portray disconnection instead of connection, and disaffection or disunity in place of affection and unity; and this goes back in time and history. A combination of arrogance and raw power drove Sani Abacha, Nigeria’s one time maximumruler, to a point where he lost all human feeling and so carried on as though he was a god. His days as a leader marked the darkest moments in Nigerian history. Even in democracy, there is the perception in some quarters that Olusegun Obasanjo was as arrogant as he was lawless. In terms of human rights violation and the rule of law, Obasanjo’s time represented the dark days of Nigeria’s democracy when the constitution was brutally assaulted. That trait is still trending and today, it is in its worst form. Nigeria is just a few days away from general elections that will produce its next crop of leaders. The sitting president who is also a candidate for the election is carrying on as if the election is a fait accompli in his favour. The executive arm of government, which the president epitomizes, has become increasingly

arrogant and lawless even in this season when it should be doing everything possible to sway the electorate to its side in order to win election. Instead of that, the electorate are given the impression that they don’t matter in an election in which they should be the ultimate deciders. These days, electioneering campaigns are done sparsely as a matter of formality, not of necessity. The interpretation seems to be “whether we campaign or not, victory is sure because we know how to get the votes”. But this can only happen in an under-developed democracy like ours, where the electorate are not only docile and fickleminded, but are also ruled by ethno-religious passion that influences their being, thinking, perception and action, all to their own detriment and peril. Adolf Hitler, one time president of Germany, was a very arrogant man who was full of himself like most Nigerian leaders. In his book, ‘I Paid Hitler’, Fritz Thyssen, the German industrialist, wrote, “Hitler had an unprecedented opportunity, such that no man will ever again be offered so easily, to create something entirely new (in his country). “He knew absolutely nothing about economic matters;

NEWS Minimum Wage: FG, states agree on review of revenue sharing formula TONY AILEMEN, Abuja

week, but government shelved making its conclusion public until the outcome of today’s NEC meeting. Information and culture minister, Lai Mohammed, had disclosed after the meeting that the decision of the cabinet would be forwarded to NEC to ensure harmony. This followed insistence by the Governors that they will not be able to pay the N30,000 Minimum Wage demanded by members of the Nigeria Labour Congress (NLC). BusinessDay also gathered that the move to involve the National Council of State was sequel to threats from the organised labour to shut down the economy on January 28. Responding to questions from State House correspondents after the NEC meeting, Minister of Labour and Employment, Chris Ngige, said, “Well there is no outcome as such, it’s a work in progress, the Information Minister told you the other day after the Federal Executive Council meeting that we are taking our deliberations to the National Economic Council and then we close up on the 22nd at the Council of State meeting after that we will be able to say where we are going. “Especially on the figures, frequency of review, those that have

exemption and everything about the bill, so that people will know because by then we will be ready to transmit it to the National Assembly in consonance with our agreement with Labour that we will transmit the new bill on or before the 23rd of January.” Ngige however said discussions on the N30,000 were still ongoing and will terminate on 22nd when we meet with the council of state. BusinessDay recalls that the National Council of State last held their meeting about 11 months ago, on February 22, 2018 to deliberate on Nigeria’s economy, security and 2019 elections. The body advises the incumbent President in the exercise of his powers with respect to the: National population census and compilation, publication and keeping of records and other information concerning the same; Prerogative of mercy; Award of National honours; The Independent National Electoral Commission (including the appointment of members of that Commission); The National Judicial Council (including the appointment of the members, other than ex-officio members of that Council); and The National Population Commission (including the appointment of members of that Commission).

he could not fully understand his economic advisers. Hence, he believed that he alone was a great man and all others were nonentities. He believed only in himself”. This, however, did not pass without consequences. Thyssen surmises that “this self-absorption of Hitler accounted, in large measure, for his defeat like all those who believe only in themselves. Hitler shut himself off from the enrichment of spirit and intellect that come when we are willing to receive what others have to give”. This holds some lessons for Nigerian leaders and more for the hapless citizens who are always at the receiving end of the excesses of people they elect into positions of leadership. In an election season like this, the electorate should see themselves as kings and kingmakers who should be feared and their sensibilities respected by those who seek to lead. When a leader or one who aspires to lead chooses to behave in a manner that presents him as a despot, an arrogant and disdainful leader, the electorate should not hesitate to show him the red flag. But that is not happening here. Some of the actions of the President Muhammad Buhari government in the last few months, a period so delicately

tangential to election, portray the government and its managers as arrogant and lawless and these are enough reason for them to lose the up-coming election. The attempt to remove the Chief Justice of Nigeria, Walter Onnoghen, through a process that was inconsistent with the provisions of the constitution, plus other ill-timed but ulterior-motivated changes in key government institutions and agencies, smack of executive arrogance and lawlessness which the electorate must condemn through the ballot box. It is lamentable that in spite of these shenanigans, the electorate appear to be helpless. One thinks that this helplessness will persist for as long as the electorate remain docile and also for as long as both the electorate and electoral office seekers continue to see elections as a business for short term gain and not long term impact. Undoubtedly, money-forvote weakens the electorate and emboldens leaders, hence the arrogance and lawlessness even in an election season when humility, diplomacy and adherence to the rule of law should define the soul and character of people in government and those who aspire to be there.

Edo, Research Institute mull single platform for tech deployment to drive sustainable development

do State governor, Godwin Obaseki, has expressed his administration’s readiness to collaborate with the Centre for Atmospheric Research of the National Space Research and Development Agency (NASRDA) to accelerate technological innovations and fast track processes to drive sustainable development. Governor Obaseki disclosed this during a courtesy visit by Babatunde Rabiu, CEO, CAR-NASRDA, to Government House in Benin City, Edo State. Obaseki said his administration had invested in technological solutions and established relevant institutions to transform the state’s civil service and create wealth, saying the partnership with NASDRA would allow for synergy among all the institutions implementing technological solutions in the state. Noting that it would be necessary to have a technical partner to coordinate investments in technology, he said, “If we are to accelerate development and achieve goals set for ourselves as a government, technology is a sine qua non. “The state’s Ministry of Science and Technology will serve as an anchor for the partnership while the state’s Ministry of Education and other institutions of

government that are implementing one form of technology solution or the other can be brought together to be on the same page.” Earlier, Rabiu, who presented a proposal on the synergy to the governor, said the proposal was aimed at offering complementary, scientific and technologybased solutions to enhance sustainable development in the state. The objective of the intervention is to identify and evaluate potential science and technological manpower already available in the state, and harness the unique contributions of the different science and technology bodies for the benefit of the state, he said. He said the Centre for Atmospheric Research was ready to work with the state with a view to bringing stakeholders in the state together and communicating contemporary science and technological knowledge and skills to target groups such as schools, institutions of government as well as the private sector. He said his Institute would also develop platforms to train specialists and groups with the aim of transferring technological skills that could enhance their competitiveness.

Friday 18 January 2019

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BUSINESS DAY

Issues facing presidential aspirants as election debate knocks MICHEAL ANI

nce upon a time, aspirants to political offices paid lip service with the word ‘I will’. Now, Nigerians are more interested in ‘how’ and the modalities to be put in place to effect these campaign promises. This is on the back of the presidential debate that is scheduled to hold tomorrow, Saturday, 19th January 2018, when political aspirants vying for the post of president in Africa’s most populous nation will be engaging in a debate on their plans and policies to get the economy on a sustainable path, if elected. However, while it is necessary that Nigerians insist that any presidential aspirant who wants to govern the people must attend the debate, it is important to highlight key issues affecting the life of the common man. This is meant to avoid ambiguous campaign promises. BusinessDay took a survey across analysts, technocrats and experts from all sectors of the economy, who highlighted critical areas of the economy that require urgent attention. Some of these include Education The Nigerian education system has suffered a lot of maladies ranging from poor funding to examination malpractice. Issues such as meeting the United Nations standard of 21 percent, lack of investment, failing infrastructure and poor staff remuneration have intensified brain drain in the sector. Figures from the Demographic Health Survey (DHS) conducted by the United Nations Children Fund (UNICEF) and the Nigerian government show that the number of outof-school children rose from 10.5 million in 2015 to 13.2 million in 2018. For over three months, the Academic Staff Union of Universities has gone on strike vowing not to go back to the class rooms except the government meets its demand. The government, on the other hand, has been nonchalant about the issue as

Muhammadu Buhari

Atiku Abubakar

Oby Ezekwesili

Kingsley Moghalu

several meetings between both parties ended in deadlock. Nigerians have resorted to using the exit door to study in the country’s West African neighbour. Ghana has become a mecca of sorts for Nigerians seeking quality education.Why must this continue? Health Despite warnings from the World Bank and the founder of Microsoft Corp., Bill Gates, that Nigeria needs to invest in human capital development, particularly education and health, health gets paltry sums in annual budgets. The health sector has witnessed numerous challenges, including lack of investment, brain drain and poor investment. Nigeria’s budgetary allocation to the health sector has averaged four percent since 2001,despite hosting the 2001 Abuja Declaration, where it pledged alongside other member states of the African Union to commit at least 15per cent of its national budget to health. Experts say for the health sector to work efficiently, a compulsory health insurance scheme targeted at both the formal and informal sector must function efficiently. Government also needs to create an enabling environment that will see more private investments into the space. This is one issue that should dominate discourse at the debate. Insecurity The problem of insecurity has hampered growth and development of the country, especially in the north eastern region of the country.

A report from Amnesty International, a London-based nongovernmental organisation, focused on human rights, showed that at least 1,813 people have been killed from January to June 2018 across 17 states. This figure almost doubled the entire 894 death toll of 2017. This is excluding the 276 school girls that were kidnapped from the Government Secondary School in the town of Chibok in Borno State, Nigeria, by the Islamist sect group, Boko haram. These incidences have heightened fears in the minds of young female children who seek knowledge in the region. That said, the issue between farmers and herders clash in the Middle Belt region of the country is another worrisome issue that has plummeted growth in the agricultural sector, which in turn has hindered food sufficiency in the country. “The clash between farmers and herders has killed more than 3,600 people since 2016, most of them in 2018”, Amnesty International said in another separate report documenting the upsurge in violence. “Of the 310 attacks recorded between January 2016 and October 2018, 57 percent were in 2018, the rights group said. These attacks were well planned and coordinated, with the use of weapons like machine guns and AK-47 rifles,” said Osai Ojigho, Amnesty’s Nigeria director. Presidential aspirants need to tell the public how the problem of insecurity that has hindered growth and development can be tackled.

Unemployment/job creation Data from the National Bureau of Statistics has put the rate of unemployment at 23.1 percent in Q3 of 2018, from 18.8 percent the same time the previous year. This excludes the number of underemployed Nigerians that currently stands at 20.1 percent. In nominal terms, a total of about 3.1 million people have entered into the unemployment trap in less than a year, pushing the number of unemployed Nigerians to 20.9 million, from 17.8 million in Q4 2017. With the country’s population growing at an average of 2.6 percent, the government needs to open the economy to attract investments, which in turn will create more Jobs for the teeming population, analysts say. This is one issue that should not be glossed over at the debate. Inclusive government Over time, there have been power tussles between the executive arm of government and those in the legislature, which has slowed down economic growth and progress in the country. It took both parties about seven months to get the 2018 budget signed into law. The signing was not even devoid of the usual rancour. This also caused major delays in the appointment of public officials that were sent by the president. One of such case was the Monetary Policy Committee unable to hold a meeting due to delay from the National Assembly in approving some of the new member-names sent. There was also a delay in the

approval of the chairman of the Economic and Financial Crime Commission, Ibrahim Magu. The Petroleum Industry Bill that aims to bring sanity into the oil sector has been covered in dust in the office of the president for over four months. Similarly, the Electoral Bill, which was aimed at giving a levelplaying field and upholding free and fair elections, was rejected by the president. That said, there is also the issue of Niger Delta crisis where pipe lines were vandalised, in addition to crash in global oil prices that sent the country to its first recession in 27 years. Any debate without issues around oil and economic diversification is incomplete. Power Power is one of the basic infrastructures that impact both the elites and the masses. In 2018, the electricity sector received the highest number of complaints, according to data from the Consumers Protection Council. These complaints ranged from poor electricity supply, estimated billings, and illegal disconnections. These issue have hindered the growth of start-ups with little capital to invest in their businesses as many complain of high cost of operations. Energy occupies 40 percent of expenditure for manufacturers and creative enterprises, and presidential aspirants must tell Nigerians what they are bringing on the table in this respect.

Balogun- Fulani-led APC enjoins Buhari to recognise its guber candidate, others SIKIRAT SHEHU, Ilorin

he Ishola Balogun-Fulani led All Progressives Congress (APC) in Kwara State has urged President Muhammadu Buhari and national leaders of the party to hand over the party’s flags to its governorship candidate, Kayode Abdulwahab and other candidates that emerged on its platform. Ishola Balogun-Fulani, the party chairman, who stated this while addressing journalists in Ilorin on Tuesday, pointed out that they expect President Buhari as a man of integrity, who has demonstrated respect for the rule of law on several occa-

sions, to hearken to their call because their positions have been recognized by a court of competent jurisdiction. To do otherwise, he said, would not portray the party in good light before the court and and the general public. The APC chairman added that it is on record that a court of competent jurisdiction had on September 19, 2018 delivered judgement on the controversy that surrounded the status of APC leadership in the state. “In that judgement, which is yet to be set aside by a higher court, the court upheld our position to the effect that the purported dissolution of our executive committee was illegal, and that the only state executive of

APC in the eyes of the law is that one led by my humble self, Alhaji Ishola Balogun-Fulani. “Following from that judgement is also the fact that the only recognised candidates of our party during this coming elections are those who came through our executive . In this regard, the gubernatorial candidate of our party is Alhaji Abdulwahab Kayode and we expect and hereby do humbly ask President Buhari, a man of integrity , who has demonstrated respect for the rule of law severally, to abide by this judicial position. “Therefore, we expect that as the president hands over the party’s flags to candidates, they should be to those who have legal ground to represent

APC in the election, starting with Abdulwahab Kayode and down the line. “To do otherwise will not portray our dear party in good light before the court, which will still look into the matter and the general public who will vote during the elections. The latest decision of the court on the case of Kashamu vs Adebutu and leaders of the PDP is a good example to guide our party in the present circumstance”, he said. The APC chairman, who maintained that the party remains the best for the country, called on Nigerians and especially Kwarans to cast their vote for all the party’s candidates across board, adding that “President Buhari deserves a second term to

consolidate on the giant achievements he has recorded in all sectors of our national life since he assumed office in 2015.” While assuring the president that the party is fully on ground in Kwara to deliver February 16 election for him, Balogun-Fulani declared that, “the APC has enough achievements to campaign in Kwara State and we have daily amplified this and the reception we keep receiving daily assures us that we’re coasting home to victory. “And it is this assured victory that makes us to once again ask president to do the needful in the eye of the law, in the eye of morality and in the interest of our great party.”

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Friday 18 January 2019

Lagos guber: We’ll give the SSG slot to a woman - Sanwo-Olu ... Says, necessary laws to be enacted to protect womenfolk Zebulon Agomuo

he Gubernatorial Candidate of the All Progressives Congress (APC) in Lagos State, Babajide Olusola Sanwo-Olu, says he will appoint a woman as the Secretary to State Government (SSG) if voted into power in March. Sanwo-Olu, who made the pledge at an interactive session in Victoria Island organised by the Office of the Women Leader, Lagos State, themed, ‘Enabling, Empowering and Promoting Women: Our Pact’, said he had successfully worked with many women in his career as a public servant and that with the level of cooperation he received from them, he had no doubt that he would enjoy a more robust working relationship from the womenfolk if voted into power. “I will say to you that our SSG slot should be given to a woman. We want women to take active and prominent roles in our government. It is not just that I am saying it here, I have done it before. It is not that it is going to be something we are going to do for the sake of compensating them; no; it is going to be done on the point of competence. The women are competent and we want to bring them on,” he said. The governorship candidate, who spoke on his plans for infrastructure, security, small and

Sanwo-Olu

medium enterprises (SMEs), education and economy generally, promised to establish a good working relationship with the private sector. “What I need is to empower the sector that controls about 80 percent of the gross domestic product (GDP) and that is the private sector. I have told them that we will work together,” he said. Sanwo-Olu added that he was committed to ensuring that the

social factors that inhibited the chances of the womenfolk in realising their aspirations in business and in the public sector would be addressed, urging the women in the state to speak out and seek counseling whenever they feel weighed down by social issues. “We have to take the conversation to our churches, mosques. We must take the issue of communication very seriously. Once you talk about it, it is a step of getting that

Vote buying is a way of life in Nigeria - Baba-Ahmed Cynthia Egboboh, Abuja

atti Yusuf Baba-Ahmed, a former Presidential aspirant of the People’s Democratic Party (PDP), has said said that vote buying has become an acceptable way of life in the Nigerian society. Baba-Ahmed, speaking at the Daily Trust Dialogue session, themed ‘Youth and Democracy- The Nigerian Challenge’ held in Abuja, said that the youth remain the major players in the business of vote buying and vote selling as it is seen as a normal practice in Nigeria’s electoral process. “We have fraudulently elected leaders who see and encourage vote buying as a way of life in the nation’s electoral process; majority of those who sell their votes are the youth, and they are often overlooked,” he said. According to Baba-Ahmed, “Bad governance has led the average Nigerian youth into modern slavery as they are often robbed of their rights by the leaders; the youth are often the victims of sustained mis-governance, abuse of rule of law and wrong nar-

ratives.” “The Nigerian youths are helpless consumer of the negative garbage from the failed government. Good behaviour is strange to the average Nigerian youths but they have been made to embrace corrupt practices as a normal way of life, the average Nigerian youth believe in amassing wealth through short cuts,” he further said. Maryam Uwais, special adviser to the President on Social Protection Plan, stressed that the Nigerian youths are often treated with disdain by the older generation which has led to destabilisation of democracy in Nigeria, adding that over 60 percent of the Nigerian population are youth which should be given a voice in the nation’s democracy. “We must ensure that our youths are actively involved in the process of selecting our leaders, the narrative that the young people do not understand the election process is not true and can be debated”. She also said that Nigeria today is full of a huge number of marginalised youths who do not have the means to participate in the election process hence has become tools in the hands

of politicians, adding that there is need to develop policies that will impact the youths. Speaking on the challenges faced by youths in politics, she said there is disparity between voting age and eligibility to run, stressing that thegovernment should develop plans to empower youths and increase their participation in politics, and ensure protection of the rights of every Nigeria youth. “The not too young to run bill is indeed a milestone for the youths in Nigeria; we must ensure equitable environment that promotes youth participation in Nigeria politics. Finance and experience are critical for prominent positions in Nigeria’s leadership which may be a challenge to the youth but there is need to continue in the fight,” he said. Samson Itodo, coordinator, ‘NotTooYoungToRun’, said that it is disheartening to note that the Nigeria policy makers still sees the youth as problem that needs fixing rather than assets that should be nourished, stressing that this has had more adverse effect on the Nigerian society in recent years.

problem solved. We must begin to talk to those who can give us right counsel. There is so much pressure in society. People must not pretend that all is well, when indeed they need help,” he said. He also said that part of his programmes would be how to ensure that his administration gets the best out of women. “We need to put our money where our mouth is. If indeed to empower a woman is to empower a nation, we must begin to see how to empower them through laws that would enable them go about their business without harassment; laws on how a girl-child would have a chance in Lagos of tomorrow without having to go through assault, intimidation and harassment, so that anybody who goes against them must be quickly punished. Those are the things that must be on our to-do list,” he said. The gubernatorial candidate also said that enabling laws would be enacted, not only to create more opportunities for women, but to protect them from unnecessary assaults, intimidations and multiple taxes in the course of their drive for survival in society. In response to some questions raised, particularly on infrastructure in Lagos, in relation to some of the on-going projects in the state, Kadri Obafemi Hamzat, the deputy governorship candidate,

said that the Sanwo-Olu administration would continue all the infrastructural projects that the current Ambode administration would be leaving behind, particularly the Lagos-Badagary road project. He explained that Lagos was not shying away from mega projects despite their huge financial demands. E xpressing delight at the promise of zoning the SSG slot to women, Jumoke Okoya-Thomas, women leader, APC Lagos State, and convener of the interactive session, said: “It’s exciting. That’s good news for me. I am sure one of us by the grace of God will get there. Knowing Sanwo-Olu very well, that is what we will get.” Earlier in her opening remarks, Idiat Oluranti Adebule, deputy governor, Lagos State, described Sanwo-Olu and Hamzat as good brands. She urged women in the state to give the candidate and his running mate the necessary support on the Election Day, adding that “Our programme as government is to promote the economic prosperity of Lagos State.” Tunde Balogun, state chairman, APC Lagos State, in his brief remarks, described Sanwo-Olu and Hamzat as level-headed and brilliant individuals, saying that the pair reminds him of the cooperation between former American President Bill Clinton and the vice president Al Gore.

2019: Lagos APC decentralises gubernatorial campaign Iniobong Iwok

n a bid to avert the crisis that trailed the recent flag-off of its gubernatorial campaign for the 2019 general election in the state, the Lagos State chapter of the ruling All Progressives Congress (APC) has said it has decentralised campaigns for the forthcoming general election across the local government areas. Recall that the flag-off of the party’s gubernatorial campaign at Skypower Ground Ikeja, was disrupted by hoodlums suspected to be members of the National Union Road Transport Workers (NURTW), who turned up at the venue with guns, daggers and other dangerous weapons, engaging one another in a bloody factional fight. This was after a leader of the union; MC Oluomo was stabbed in the neck at the rally. But speaking in an interview

with BusinessDay, Thursday, Publicity Secretary of the party in the state, Joe Igbokwe, said the party had decided to adopt new measures to campaign ahead of the general election to avoid a repeat of such ugly occurrence. Igbokwe added that the party may, however, stage some mega rallies, but would strive to avoid incidents that would affect its electoral chances. According to him “We have decided to take the campaigns to each local government area in the state to avoid a repeat of what happened during the flag-off. It would save us money, and also save us the stress, look at the way Ikeja was locked down the other day during the flag-off. “That does not mean we would not hold three or four mega rallies in the state, but the approach would be different. But I can assure you that APC would win the election.”

Friday 18 January 2019

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INTERVIEW

I will attract, deploy resources to improve my people’s welfare - Onu Prince Nweze Onu is the All Progressives Congress (APC) Senatorial Candidate for Ebonyi South Senatorial District. Prince Onu is a veteran journalist, a policy maker and a strategist. In this interview with BusinessDay, he bares his mind on why he seeks to represent his people in Nigeria’s upper legislative chamber, the Nigerian Senate. He also talks about the measures he intends to adopt to ensure the enhancement of the experiences of his constituents. Excerpts. Good afternoon Prince Prince: Good afternoon. How are you people in the media doing? ery well Sir. We learnt you are interested in representing your people, the people of Ebonyi South, in Nigeria’s upper legislative chamber (the Senate) starting from May 2019. That is correct. Can you tell us your motivation for desiring to go to the Nigerian Senate. Before I answer your question, it is important to set the background to make for better understanding. I have been a policy analyst and strategist for over a decade. I have worked with many governments in the past to formulate policies and programmes that will enhance the life of the people. From my experiences working with various governments, I realised the importance of getting involved with the process of policy formulation and implementation to make government work for the people. That is one critical background I have that will enhance the quality of my representation. In addition to my experiences in policy making, I have also worked with a lot of organisations to implement strategies that reshaped and repositioned their operations to enable them achieve targeted results in line with their immediate and longterm objectives. Now this is just a summary of my experiences. Now to your question. My motivation for going seeking to represent my people at the red chambers is fuelled by my desire to continue with the works of Distinguished Senator Sonni Ogbuoji, who has set the ball rolling. He has played his part and now wants to bring his experiences to bear on the affairs of Ebonyi State as the State Governor. So what will be the main focus of your tenure as a representative of your people. As you already know, the main focus will be sponsoring and ensuring the passage of bills that will guarantee the welfare of my people and the generality of Nigerians. Like I have always mentioned at the various for a

Prince Nweze Onu

that I have spoken, education is the critical aspect of any developmental efforts. I’m so much sold on this conviction and because of this, I will prioritize education in delivering the goods of representation. However, I will also strive to attract and deploy resources that will fundamentally improve eight critical areas for the welfare of my people. These areas include health, agriculture, women and youth empowerment, power supply, and integrated skills acquisition. Can you throw more light on

the specific issues you will address in each of these ‘critical’ areas you have identified? Thank you very much for your germane question. In the area of education, I will ensure that the science laboratories of all the secondary schools in my zone are equipped with modern equipment. I will work with my state governor to ensure effective use of the equipment through the recruitment of qualified science teachers to handle the equipment so that the objectives for which they were procured are achieved.

‘ The edge I have over my opponents

is simple – my people have accepted my message of service; they have owned the message; they are propagating the message; and they are already chanting victory songs for me. They are not doing this for any of my opponents

I will also build and furnish libraries in all the clans that make up the senatorial district to ensure that the students have access to the books and other education materials they need at all times. In the area of agriculture, I will set up an agency that will work with agro input suppliers to provide modern farming inputs and improved seed variety at no cost to our farmers. By this I mean that the input, from improved seedlings to pesticides, herbicides, will be given to the farmers freely; they will not pay for it. Can you talk about what you will do in the area of health. Yes! I’m aware of the difficulties that some of our women encounter during pregnancy. Often, some of them are so indigent that they don’t have money for anteor post-natal care. So in addition to identifying strategic hospitals to be equipped with modern facilities, I will set up offices in strategic locations across the zone to ensure that indigent pregnant women are identified and properly assisted. I will provide stock of drugs for the primary healthcare centres across the zone. I have already identified and commenced discussions with a number of organisations that have agreed to provide quality healthcare in these facilities. These are the sorts of service that I will render to my people. And for the youths . . . . Yes, the youths and women. Don’t forget that the youth are the key determinants of the future of any society. I know this, and that is why I will set up two multisector artisanal skills acquisition centres in each of the five local government areas that make up Ebonyi South Senatorial District. Here, the youths (and the women) will be trained in artisan skills such as tiling, furniture making, roofing, electrification, and others. These crafts are presently handled by the Togolese, Beninese, and the Ghanaians. Nigerians lose a lot of money in these areas because while our youths are roaming the streets because they don’t have skills that they could usefully deploy, these foreigners take up the jobs and eventually repatriate

the money to their respective countries. You know the role Small and Medium Enterprises (SMEs) play in the growth and wellbeing of an economy. SME’s are the biggest employers of labour in any economy. Hence, I will work with two microfinance banks that I have already commenced discussions with, for the provision of seed capital to women and beneficiaries of skills acquisition trainings. I am convinced that this measure will accelerate the growth of SMEs in the zone. In addition, I will use my position to explore all avenues to ensure that the hitherto unemployed youths are gainfully employed. That is the mandate we have, and we will deliver on it. Are your people aware of these plans you have for them? Yes, they are. We have been going round the zone, preaching this message of service to them. And the reception has been awesome. They tell us that what we are preaching is the kind of message they have been yearning for. Does that mean they will vote for . . . . (interjects) They will vote for me. The message resonates with them, and many of them have become the evangelists of this message. What edge do you think you have over your opponents The edge I have over my opponents is simple – my people have accepted my message of service; they have owned the message; they are propagating the message; and they are already chanting victory songs for me. They are not doing this for any of my opponents. So you will be correct if you say there are no opponents. Do you have any final words for your people. My final words for my people are simple: I appreciate the love you have already shown to me. Continue to evangelise the message of service that we bring so that our prosperity will increase. Prince Thank you very much for accommodating us in your already busy schedule. We wish you a successful outing at the polls. You are most welcome. And thank you for hosting me.

‘

34 BUSINESS DAY NEWS a resident of Ajao Estate, which is situated along the airport road, the redevelopment of the road “bears a testimony to the commitment of Ambode to changing the ignoble past and making Nigerians proud again”. For decades, the airport road had been left in a state of squalor despite being the entry route into Nigeria for international visitors and investors arriving the country through its busiest airport by far, MMIA. Before the current intervention, the road bore a sad narrative of Nigeria’s shameful infrastructure trajectory. For many years, the airport road elicited concerns from all quarters and provided uncomplimentary headlines for local and international media. Government after government only paid lip service, as promises never got translated into reality. For air transport passengers using the road, it was always a case of getting stuck in traffic congestion and missing their flights in the process. For several others, in the bid to keep appointments around the airport precincts, commercial motorcycles (popularly also known as ‘Okada’) had become the alternative mode of transportation, thus mocking Africa’s biggest economy as perhaps the only country in the world where air passengers ride on motorcycles into the airport. Apart from the fact that the

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How Ambode is changing ugly narrative... Continued from page 1

two-lane road fell short of the standard expected of an international airport road, it was almost perpetually in darkness as the streetlight poles only stood menacingly to remind that government in this part of world cares less about the safety of the citizens and international visitors. The prevailing darkness had also provided the needed hideout for hoodlums to rob unsuspecting airport travellers and residents of the adjourning Mafoluko settle-

L-R: Modupe Philips, corporate communications and external affairs, GTBank; Risikat Yossuf, chairman, Lagos First Generation Heritage College and Association (LAFGHECA); Yakubu Oyinloye, principal, Queens College, and Bisoye Balogun, corporate communications and external affairs, GTBank, during a press conference of the 2019 Masters Cup season 8 in Lagos, yesterday. Pic Olawale Amoo.

This #TenYearChallenge analysis shows Nigeria’s... Continued from page 1

lenges which the nation has not learnt to address, thereby threatening its economy and leadership position in the African continent. To join #TenYearChallenge, a viral harsh word online where social media users combine their present image with another taken ten years earlier to illustrate changes that have occurred to them within this period, BusinessDay reviewed Nigeria’s economy from 2008 to 2018 using data from the Bloomberg Terminal and Nigerian authorities and presents ten (10) key economic variables to show how the nation has fared over time. Inflation The nation’s average inflation rate stood at 11.4 percent in 2018, lower than 15.1 percent recorded in 2008, even though the index surged significantly in 2016 when Nigeria’s economy was in recession to 18.5 percent, the second-highest in nation’s history after an average of 23.8 percent in 2003. Meanwhile, the country recorded its lowest average inflation rate of 0.2 percent in 2003 Inflation is a macroeconomic indicator that measures the rate of general increase in price level of goods and services over a period of time. Gross Domestic Product (GDP) According to the National Bureau of Statistics (NBS), Nigerian economy grew 1.95 percent in the first quarter of 2018, but contracted in the following quarter by 1.50 percent. Growth in the third quarter of 2018 expanded by 1.81 percent, putting the average growth rate of the economy so far at 1.75 percent. This and the International Monetary Fund’s (IMF) annual growth projection of 1.9 percent for 2018

ments. That was the story of the airport road. But with the ongoing expansion of the road and the expected complementary facilities, Abiodun Adelekan, another resident of Ajao Estate, is excited that the robberies and traffic logjams associated with the old road would be a thing of the past. According to Adelekan, the reconstruction of the road also shows that what public office holders need to bring about positive changes at all levels is

political will. He is of the view that the often flaunted excuses of paucity of funds are most of the times not the real reason why governments fail to deliver value to the citizens. Akinsanya, the commissioner for works and infrastructure, who visited the site last week in the company of Governor Ambode, is optimistic that the project will be completed before the end of the first half of 2019. Although initially targeted to be delivered in December 2018 as a ‘Christmas Gift’ to Nigerians, issues bordering on relocation

are lower than 6.27 percent annual growth rate recorded in 2008. Gross Domestic Product (GDP) measures economic growth and the market value of all final goods and services produced in a country in a given period. Unemployment Rate While growth is shrinking in Africa’s largest economy, unemployment rate keeps soaring, reflecting increasing labour force largely driven by high population growth rate of about 3 percent and government’s inability to create enabling environment for job creation to accommodate young school leavers. The national unemployment rate was 14.9 percent in 2008, this rose steadily to 23.1 percent in the third quarter of 2018, according to NBS. Unemployment rate is the percentage of unemployed – those within the working age population aged 15-64 who are unemployed and actively looking for jobs – in the total labour force. Monetary Policy Rate The Monetary Policy Rate (MPR) also known as the benchmark interest rate is one of the key instruments of the Central Bank of Nigeria (CBN). The apex bank primarily uses the monetary policy tool for price stability, it also determines the rate at which banks lend out money, which in most cases affect the growth of the nation’s economy. The MPR has moved from 9.75 percent as at December 2008 to 14 percent as at December 2018, the CBN has kept the rate at recordhigh 14 percent since July 2016 and analysts have projected another retention in the committee’s meeting next week. Crude Oil Prices Nigeria’s economy is volatile as

it largely depends on crude oil. The commodity is the country’s major source of foreign exchange earnings and government revenue. International oil benchmark, Brent crude upon which Nigeria’s crude oil is priced, moved from an average of $98.50 per barrel in 2008 to an average of $71.69 per barrel in 2018. Total External Debt Stock One of the major worries of stakeholders over the Nigerian economy is the country’s high debt profile. Successive governments embarked on borrowings without commensurate development in the nation’s infrastructure. Available data show that Nigeria’s total external debt stock ballooned from $3.72 billion as at December 31, 2008 to $21.59 billion as at September 30, 2018. Stock Market Although the year 2018 was not an impressive one for investors in the Nigeria equities market, this is largely attributable to uncertainties towards the 2019 general elections and interest rates hike by the United States Fed Reserves which triggered outflows of portfolio investment from the country to developed economies. As a result, over 17 percent was

wiped off the market value in 2018. However, this outperforms the 46 percent depreciation recorded at the Lagos bourse in 2008 during the global financial crisis. USD/NGN Exchange Rate The Naira has largely depreciated in the last 10 years despite increases in prices of crude oil in the global market. The currency weakened from an average of N139.70 to a dollar in 2008 to N362.59 per dollar in 2018. The naira has been hovering around N360 to N365 since August 2017 as the CBN continues to intervene in the foreign exchange market. Foreign Exchange Reserves Nigeria’s foreign exchange (FX) reserves amounted to $43.12 billion in 2018 against $53 billion recorded in 2008. This is about a $10 billion difference in the last 10 years. Nigeria external reserves reached a peak of $47.87 billion on May 10, 2018. However, foreign portfolio outflows due to election uncertainty coupled with CBN’s sustained intervention in the interbank foreign exchange market led to the significant decline in Nigeria’s gross dollar reserve. FX reserve is money or other assets held by a central bank or other

Friday 18 January 2019

of utility facilities had pushed forward the projected completion date. The road is designed as a sixlane dual carriage expressway (three major lanes on both directions), plus two-lane service roads on both directions. The reconstruction is with a ramp bridge designed to provide a U-turn from Ajao Estate to the airport. Also incorporated is a flyover at NAHCO/tollgate, and drainage works. The road, which is nearing completion, is also coming with two new pedestrian bridges at Ajao Estate and NAHCO/Hajj Camp, as well as slip road to provide access to Ajao Estate, lay-bys and streetlights to meet required international standards. Governor Ambode, who undertook an inspection tour of the road and other projects in the state, said his administration took the decision to reconstruct the road because it is one of the busiest roads in the state, with average vehicular volume of 50,000 daily. According to him, the poor state of the road was not acceptable for the status of the state as the fifth largest economy in Africa and the nation’s commercial hub. The road will link up with the Oshodi Transport Interchange (OTI), also being constructed by the government, to provide a seamless and stress-free ride for passengers arriving the airport and driving into the commercial city. monetary authority so that it can pay its liabilities if needed, such as the currency issued by the central bank, as well as the various bank reserves deposited with the central bank by the government and other financial institutions. Current Account Ten years ago, the Nigeria current account recorded a surplus of N1.18 trillion as at Q3 2018. However, recent data released by the Central Bank of Nigeria showed that current account dipped into a negative zone with a deficit of N948.74 billion. According to National bureau of statistics report, deficit was driven by a 70.5 percent q/q surge in merchandise imports, which was as the result of imports of drilling platforms for the energy sector. Data generated from the CBN’s latest Quarterly Statistical Bulletin, show sharp increase in freight debit by 78 percent to N293.7 billion (US$960 million) in Q3 from N164.5 billion (US$540 million) the previous quarter. A country’s current account balance (surplus or deficit) reflects balance of trade and earnings on foreign investment. A deficit in current account is due to a country spending more of its currency on importing products than it is earning through exports.

Indicators

$98.50

2018 11.40% 1.75% 23.10% 14% $71.69 per barrel $21.59 billion -17.84% N362.59 $43.12 billion (N948.74 billion)

Friday 18 January 2019

Sokoto Assembly passes N169.652bn 2019 budget

okoto State House of Assembly on Thursday passed the state’s 2019 budget of N169.652 billion as presented by Governor Aminu Tambuwal. The News Agency of Nigeria reports that the Appropriation Bill was passed following a motion moved by the Assembly’s Majority Whip Habibu Modachi (PDP- Isa). The motion came after the consideration of a report by the House Committee on Finance and Appropriation. Presenting the report, the Committee chairman, Malami Ahmed (PDP- Sokoto South II), said the amounts proposed for both recurrent and capital expenditure remained the same as submitted by the governor. “The sum of N70,468,519,058.00 representing 41.53 percent for recurrent expenditure and N99,184,252,425.00 representing 58.47 percent for capital expenditure remain the same as proposed. “That the 2019 budget amounting to N169, 652,771,486.00 is neither added nor reduced by the committee. The figure remains as submitted to the assembly by Governor Tambuwal. “Moreover, based on the genuine request of the SubCommittee, the Committee moved resources inwards to accommodate some important demands and interests of the people,” Ahmed said. He said the committee recommended that the state government should ensure forwarding of the obsolete tax laws to the state House of Assembly for amendment. “This is with a view to making an upward review of the rate to conform with the present economic reality. This would also go a long way in enhancing revenue base of the state. “That henceforth, Ministry of Budget and Economic Planning in collaboration with MDAs should adequately scrutinise and ensure correct figures, project titles, descriptions, location and costs are inserted in the subsequent budget proposal,” he said. Ahmed commended the Board of Internal Revenue for sustaining more efforts in improving the state’s Internally Generated Revenue (IGR) in 2018. “In 2018 we learnt that the board had recorded great improvement in IGR from N9 billion in 2017 to N13.1 billion. “This is a great and encouraging improvement for the state, as such we commend the board’s commitment and urge them to sustain such for better service in the state,” Ahmed said.

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CBN’s new financial inclusion policy to reduce 36.8% exclusion rate HOPE MOSES-ASHIKE

entral Bank of Nig er ia (CBN ), on Thursday unveiled the National Financial Inclusion Strategy (NFIS) designed to ensure that at least 80 percent of Nigerians have access to banking and other financial services. The newly released National Financial Inclusion Strategy proposes roles and responsibilities for key stakeholders in the financial sector to reduce financial exclusion rate from the present 36.8 percent to 20 percent by 2020. In 2016, 58.4% of Nigeria’s 96.4 million adults were financially served leaving 41.6% financially excluded. The proportion of those who were banked was 38.3%, those in the formal other category was

10.3% and those served by informal sector 9.8%. This shows that only 48.6% used formal services compared with 70% that is targeted in 2020. Unveiling the NFIS at the National Financial Literacy Stakeholders’ Conference in Abuja, Aisha Ahmad, CBN deputy governor on Financial System Stability, disclosed that the apex bank had also released new policy frameworks on consumer protection, financial literacy and financial education. “Adequate consumer protection is critical to sustaining the long term viability of the financial sector because consumer protection is a necessary precursor to building and maintaining trust in the formal financial sector. “An essential pillar of any consumer protection regime is

consumer education, which is founded on financial literacy. “The benefits of a financially literate population are immense. Consumers are better equipped to make optimal choices in the use of financial products, pose lower credit and default risk. “In addition constitute a market for sustainable financial services and promote Financial System Stability by increasing market demand and responsible use of financial services,” she said. Ahmad said the CBN recently introduced regulations and guidelines for the licensing and operations of Payment Service Banks in furtherance of its efforts to leverage technology to enhance access to financial services for the unbanked. She said the move was

expected to drive down exclusion rates by leveraging wider variety of multiple channels to enhance access to deposit products, payments and remittance services to small businesses and low-income households. Meanwhile, the director, Consumer Protection Department, CBN, Kofo Salam-Alada, harped on the importance of promoting sound financial system in the country to ensure that consumers continue to have confidence in the sector. “As we seek to boost the number of consumers in the financial industry through the Financial Inclusion Strategy, it is important that we establish policies, structures and programmes that would engender confidence among the general public.

“This is even more imperative considering the fact that we are only just recovering from a financial crisis that brought the financial system on the brink of collapse. “All the efforts at strengthening the financial system would be fruitless if there are no concerted efforts to restore trust and confidence among consumers,” he said. Salam-Alada revealed that since the consumer protection department was set up, it had successfully recovered more than N68 billion in favour of customers who have been short changed by their banks. Also, the managing director, Jaiz Bank, Hassan Usman, said the bank was committed to deepening financial services in the country through its non-interest banking strategy.

Nigeria, South Sudan sign agreement on education, oil, gas, trade, others INNOCENT ODOH with agency report

L-R: Ike Chioke, group managing director, Afrinvest West Africa Limited; Victor Ndukauba, deputy managing director, Afrinvest West Africa Limited; Robert Omotunde, head, Afrinvest Research , and Jolomi Odonghanro, associate, Afrinvest Research, during the Nigerian Economy and Financial Markets 2018 review/2019 outlook in Lagos. Pic by Pius Okeosisi

Dogara: Nigerians will accept nothing short of openness, adherence to rules in 2019 elections KEHINDE AKINTOLA Abuja

equel to the failure of President Muhammadu Buhari to assent to the Electoral Act Amendment Bill passed by the National Assembly three times, Yakubu Dogara, speaker, House of Representatives, on Thursday warnedtheIndependentNational Electoral Commission (INEC) and Police that Nigerians would accept nothing short of complete openness, a level playing ground and strict adherence to extant electoral laws in the conduct of the 2019 elections. Dogaraalsonotedthatthepalpable fears of well-meaning Nigerians and the international community of the possibility of some forces working to manipulate the comingelectionsbyexploitingthe identified loopholesin the current ElectoralActmightbecomeareality if critical stakeholders did not take proactive steps. In a speech to mark the resumption of the House from the Christmas and New Year break deliveredontheflooroftheHouse on Thursday, the Speaker stated, “It should remain a thing of pride for us that the National Assembly

has done its best by taking steps to guarantee the successful and rancour-free conduct of the 2019 general elections by passing the Electoral Act Amendment Bill for the third time after Mr President had declined assent to it twice. “Lack of passage into Law of the amended Bill means that the impending General Elections will not benefit from the innovative mechanisms crafted in its collaboration with international and development partners. “Consequently, the palpable fears of well-meaning Nigerians and the international community of the possibility of some forces working to manipulate the coming elections by exploiting the identifiedloopholesinthecurrent Electoral Act, may become a reality if proactive steps are not taken by critical stakeholders. “Hon. Members, I believe that our intention to improve on the successes of the 2015 General Election through the Amendment Bill, is very clear to all fair-minded Nigerians. The spate of serious allegationsbystakeholders,corroboratedbysomePressreportsagainst INECandtheNigerianPoliceinthe recent elections, which are already

subjects of litigations, are some of the factors that gave rise to public apprehensiononthesuccessofthe coming general elections. “We had intended, through this Bill, to minimise the risk to the survival of our hard-won democracythroughresponsiveandtimely legislation aimed at ensuring free, fair and transparent elections. Nonetheless, as Parliament, we have done our best to guarantee the stability and growth of our fragiledemocracy,andIhavenodoubt that history will be very kind to us. “Under the present circumstance, we have no choice than to take INEC and the Police by their wordsandgivethemthebenefitof doubtintheirrecentassurancesto be impartial, efficient and truthful in the conduct of the coming elections. This is the minimum that the country deserves from them at this auspicious time. Nothing short of complete openness, a level playing ground and strict adherence to extant Laws will be acceptable to Nigerians.” He also called on President Buhari to take a hard look at Nigeria’s national security architecture with a view to securing lives, national pride and prestige and to

fight against unbridled violence. “We are all witnesses to the continuous deteriorating security situation in our country, more especially in the North East, North West and some parts of the North Central. Only three days ago, scores of people were killed in Sokoto State and elsewhere,” he stated, saying hardly does any week passes without reports of mass killings and bloodletting, eitherbyterroristsorarmedbandits. “This calls for drastic, urgent and concerted action and efforts tobringtoaquickend.Ourcitizens arelookinguptousandwecan’taffordtofailthembecausesecurityof lives and properties is the primary purpose of government. “The fight against unbridled violenceisonewecannotaffordto loseaswecan’tdosoandstillkeep our civilisation. The symptoms of the malady afflicting our national security architecture are in plain sight. It is therefore imperative for the President and CommanderIn-Chief of the Armed Forces to take a hard look at our national security architecture with a view to fixing the malady in order to secure lives, national pride and prestige,” he said.

igeria and South Sudan have signed a cooperation agreement on oil and gas, trade, education, health, culture, technical, among others. Nigeria’s foreign affairs minister, Geoffrey Onyeama, signed on behalf of Federal Government while his counterpart from South Sudan, Nhial Deng Nhial, signed for his country. Onyeama said: “It is a general cooperation agreement that involves other areas but not security, the area of cooperation include economic, education, technical, health, sports, culture, among others. “The agreement signed does not involve security and defence, we do not have any boot on ground in the place. It is just a guideline there will be specific agreements between the Ministries, Department and Agencies of the two countries.” The minister, who said that Nigeria had always being committed to peace and stability of South Sudan since its inception, said Nigeria would continue to support the country till permanent peace is installed. “We want to institutionalise our commitment and support to your country and we will be signing a cooperation agreement which we hope will be a framework that will enhance our deep relation. “For us, we believe it will be a `win-win` for the two countries to have meaningful and profitable cooperation between us,” he said. He said Nigeria involvement and engagement in South Sudan was deep because the two countries had a lot thing in common. ‘’Nigeria is part of group of countries IGAD plus showing that with your country and the countries of IGAD are keen to have peace in the country.

BUSINESS DAY

Friday 18 January 2019

BUSINESS DAY

Friday 18 January 2019

BUSINESS DAY

Friday 18 January 2019

BUSINESS DAY

Friday 18 January 2019

BUSINESS DAY

Friday 18 January 2019

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Friday 18 January 2019

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Friday 18 January 2019

Live @ The Exchanges Top Gainers/Losers as at Thursday 17 January 2019 GAINERS Company

Market Statistics as at Thursday 17 January 2019

LOSERS Opening

Closing

Change

MOBIL

N184

N188

DANGCEM

N188

N190

CCNN

N22

N23

N11

N11.85

N78

N78.75

Company

Opening

Closing

Change

NASCON

N18.6

N18

-0.6

STANBIC

N47.5

N47

-0.5

ETRANZACT

N3.95

N3.56

-0.39

0.85

ZENITHBANK

N21.95

N21.7

-0.25

0.75

GUARANTY

N32.6

N32.4

-0.2

ASI (Points) DEALS (Numbers)

VALUE (N billion)

N78.75, adding 75kobo or 0.96percent. NASCON Plc recorded the highest loss, after its share price declined from N18.6 to N18, losing 60kobo or 3.23percent; followed by Stanbic IBTC Plc which was down by 50kobo or 1.05percent, from N47.5 to N47. Etranzact Plc declined from N3.95 to N3.56, losing 39kobo or 9.87percent; Zenith Bank Plc followed after its share price de-

clined from N21.95 to N21.7, losing 25kobo or 1.14percent. GTBank Plc share price dipped from N32.6 to N32.4, losing 20kobo or 0.61percent. In 3,207 deals, equity traders exchanged 231,014,666 units valued at N3.260billion. Diamond Bank Plc, GTBank Plc, Zenith Bank Plc, Access Bank and FBN Holdings were actively traded stocks Thursday on Custom Street.

231,014,666.00 3.260

MARKET CAP (N Trn

Stories by Iheanyi Nwachukwu

to N188, adding N4 or 2.17percent. Dangote Cement Plc followed after its share price gained N2 or 1.06percent, from N188 to N190. Cement Company of Northern Nigeria Plc gained N1 or 4.55percent, from N22 to N23. PZ Cussons Nigeria Plc increased from N11 to N11.85, adding 85kobo or 7.73percent; while the share price of Nigerian Breweries Plc advanced from N78 to

3,207.00

VOLUME (Numbers)

Stocks gain over N280bn in 4 trading days he value of Nigerian listed stocks advanced further at the close of trading session on Thursday at the Lagos Bourse. The latest gain resulted to cumulative gain in excess of N280billion in four trading days this week. The year-to-date (ytd) negative returns moderated further to -2.70percent. Largely capitalised stocks occupied the league of 23 advancers against 15 laggards, pushing the value of listed equities to new highs of N11.404trillion from week-open low of N11.124trillion. The Nigerian Stock Exchange (NSE) All Share Index (ASI) appreciated by 0.40percent on Thursday to close at 30,583.21 points from preceding day low of 30,460.68 points. Mobil Oil Nigeria Plc recorded the highest gain after its share price increased from N184

30,583.21

11.404

IOSCO issues good practices to assist audit committees

he Board of the International O r ga n i s at i o n of Securities Commissions (IOSCO) on Thursday published the IOSCO Report on Good Practices for Audit Committees in Supporting Audit Quality, which seeks to assist audit committees in promoting and supporting audit quality. The quality of a company’s financial report, supported by an independent external audit, is key to market confidence and informed investors, and to the effective functioning of capital markets. While the auditor has primary responsibility for audit quality, the audit committee should promote and support audit quality and thereby contribute to greater confidence in the quality of information in the listed company’s

financial reports. The good practices report can assist audit committees in considering ways in which they may be able to promote and support audit quality. The report provides good practices that audit committees may consider when: recommending the appointment of an auditor; assessing potential and continuing auditors; setting audit fees; facilitating the audit process; assessing auditor independence; communicating with the auditor; and assessing audit quality. The report sets out good practices regarding the features that an audit committee should have to be more effective in its role, including matters such as the qualifications and experience of audit committee members.

risk content, as captured by greater vulnerability to commodity prices, global interest rates, and currency movements. Clearly, policies and reforms that build resilience to these risks and use foreign capital to raise medium-term potential growth are needed. Borrowings from China has undoubtedly played a part in boosting economic growth and indebtedness in

SSA over the past decade and will continue to do so. However, the bigger debt risk comes from Eurobond issuances as we expect China to be more willing to renegotiate debt terms than holders of commercial debt, which are less strategic in their reasons for lending and do not have the loss-absorption capacity of Beijing’s $3.0tn stockpile of foreign exchange reserves.

United Capital Daily insight SSA Fiscal Policy Outlook in 2019: Is rising public debt sustainable?

ver 2018, more countries in SubSaharan Africa (SSA) shifted away from traditional concessional sources of financing toward more market-based ones, increasing public debt vulnerability to currency and global interest rates risks. Notably, aside from the rising spates of Eurobond issuances, inter-

est in cheap and readily available Chinese loans increased considerably as they are usually characterized by less stringent rules, in contrast to loans from the west (including IMF and World Bank). Thus, China became the largest provider of bilateral loans (40.0% exposure) to SSA countries according to the World Bank. In our view, the rising spate of commercial external loans has a higher

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Jack Bogle, index fund pioneer, 1929-2019

Vanguard founder changed investing for millions and built group that became $5tn investment giant Robin Wigglesworth

ack Bogle, founder of Vanguard and creator of the world’s first index mutual fund, has died at the age of 89. He leaves an unassailable legacy as the pioneer and leading advocate of the $10tn index investment universe. Born in New Jersey to a family stricken by the Great Depression, he became one of the greatest men in the history of investing by ripping asunder the “great man” image of supreme, cerebral stockpickers who could beat the market. His insight: on average, stockpickers make average returns. He launched the first-ever index fund for ordinary investors and vociferously championed the merits of cheap, passive investing for decades. It was an astonishing success. Today, Vanguard is a $5tn investment behemoth, and one of the leading players in the global index investing industry that he helped birth. Notably, it was a success where the gains have accrued to Vanguard’s customers and not its founder, as Bogle structured Vanguard to be owned by its investors. In an industry that has tended to enrich its pioneers with vast wealth, this was an unprecedented and still unrivalled move. “Jack Bogle made an impact on not only the entire investment industry, but more importantly, on the lives of countless individuals saving for their futures or their children’s futures,” said Vanguard’s present chief executive Tim Buckley. “He was a tremendously intelligent, driven, and talented visionary whose ideas completely changed the way we invest. We are honoured to continue his legacy of giving every investor ‘a fair shake’.” John Clifton Bogle was born in

Montclair, New Jersey, on May 8, 1929, and his early life was shaped by the Depression. Bogle’s father was a wellto-do businessman with inherited wealth that evaporated in the 1930s, leaving him broken and prone to drinking, and forcing Bogle and brothers to move in with their grandparents in rural New Jersey. However, his academic record was good enough to win a scholarship to the prestigious Blair Academy, and from there he went on to gain a degree in economics from Princeton University. Inspired by a 1949 Fortune article titled “Big Money in Boston” on the swelling mutual fund industry, he wrote a thesis on investing that caught the eye of Walter Morgan, the founder of Wellington, which managed the princely sum of $150m when Bogle joined in 1951. By the time he was 35 he was named executive vice-president and Morgan’s heir-apparent, and soon afterwards took full control. But then the asset management wonder boy made a fateful mistake. Charged by Morgan with reinvigorating Wellington’s fortunes amid the ravenous appetite for racier stock market funds in the 1960s “go-go” boom, Bogle merged Wellington with Thorndike, Doran, Paine and Lewis, an aggressive mutual fund company in Boston. When the bull run collapsed in 1973-74, Wellington found itself on the ropes, and the four new partners brought in 1966 banded together and defenestrated Bogle. However, he staged an audacious countercoup, convincing the independent boards of Wellington’s mutual funds to set up a new independent company that would take on the administrative tasks of running them. And thus, Vanguard was born. At the time, some investment groups like Wells Fargo Investment Advisors, Batterymarch and American

Men cash in more than women after MBA Five years after graduation, males earn 28% more than women Jonathan Moules

or women who want to get ahead, getting an MBA will help. But it will help men far more. A global study into salary levels among 900 business school alumni found that the gender pay gap widened from 3 per cent before candidates started their MBA to 28 per cent five years after graduation. The salary lift among MBA graduates was substantial regardless of gender, according to figures compiled by the Forté Foundation, which campaigns for greater gender balance on MBA courses. Salaries on average rose 63 per cent five years after graduation among the survey’s female respondents to $152,806. Their male counterparts, however, averaged a 76 per cent lift during the same period to $211,800. Men also led larger teams five years after graduation than women, averaging 3.3 direct reports, compared with 1.8 among the female survey respondents. Having an MBA was better news for people from minority groups. The pay divide between white students and those from black, Hispanic or Latin

American backgrounds narrowed from 24 per cent pre-MBA to 12 per cent in current roles. Reducing the gender pay divide required a change in perceptions among students as well as employers, according to Michelle Wieser, acting dean of the business school at St Catherine’s University in Minnesota, who led the research project. “We need coaches and careers advisers to play a role to help women prepare themselves for negotiating pay,” she said. “Men have traditionally done a better job at that.” Apathy among those suffering lower pay was an important issue, Ms Wieser added. Four in ten of those who completed the Forté survey said they were the victim of pay discrimination. Most responded by leaving the company. Gender pay differences were partly a reflection of the industries where MBA graduates worked, the research concluded. For instance, more women than men work in finance but men earn 60 per cent more on average than women. Technology jobs generated one of the smallest gender pay gaps, but far fewer women than men worked in this sector.

National Bank of Chicago has set up a smattering of novel, cheap funds that merely attempted to track stock market indices rather than beat them. But at the time they were only aimed at pension funds and insurers, and when Paul Samuelson, the famed economist, called for something similar for ordinary investors, Mr Bogle saw his opening. It was a product that fit Vanguard — which was at the time prohibited from running active, managed investment funds — and appealed to the headstrong investor, whose Princeton thesis had after all noted that “funds can make no claim to superiority over the market averages”, and should be operated in the most efficient, honest, and economical way possible”. Vanguard’s first fund was initially a miserable failure. The First Index Investment Trust went live with a measly $11m in August 1976, and was quickly dubbed “Bogle’s Folly”. Today, the renamed Vanguard 500 is

a $400bn giant, and Vanguard is the second biggest investment company in the world. Bogle’s famous determination was the driving force behind its growth until he retired as senior chairman in 1999, and he remained a vociferous champion of index funds until he passed away on Wednesday. In a series of interviews with the FT last autumn Bogle said: “It was a crusade. If you really believe in something, you have to become a preacher,” he says. “I believed the numbers would ultimately tell. The superiority of the index is guaranteed. The math will never let you down.” Dennis Kelleher, the head of Better Markets, an advocacy group, said that Mr Bogle’s “enduring legacy will not be a vast fortune, multiple houses, an art collection, a personal plane, his name on university buildings purchased with outsized contributions, or any such tawdry and temporary markers of worth.”

“It will be his innovative index funds and tireless effort to make it easy and low-cost for tens of millions of hardworking Americans to invest in the stock market and achieve the American dream.” Perhaps the greatest endorsement — and for Bogle certainly the most enjoyable one — came from Warren Buffett, the famed Berkshire Hathaway chairman who regularly exhorts would-be investing acolytes to simply buy an index fund, who said that Vanguard’s founder was one of his heroes. “If a statue is ever erected to honour the person who has done the most for American investors, the hands down choice should be Jack Bogle,” he wrote in one of his annual letters. “He has the satisfaction of knowing that he helped millions of investors realise far better returns on their savings than they otherwise would have earned. He is a hero to them and to me.”

Theresa May pushes back date for Brexit ‘plan B’ vote to January 29 UK prime minister is struggling to find common ground with opposition parties Henry Mance and Laura Hughes

heresa May has pushed back the date of the vote on her Brexit plan B. The UK prime minister, who is struggling to find common ground with opposition parties, is obliged to present her proposals by Monday.

Her team had previously suggested a vote would take place that same week. However, Andrea Leadsom, the leader of the House of Commons, said that the debate would now only take place on Tuesday January 29. That is two months before the UK is due to leave the EU. MPs will be able to amend the

government’s plan B, meaning that the January 29 debate is likely to turn into an opportunity for supporters of a general election, a second referendum, and Norway-style membership of the single market to test parliamentary support for their ideas. It is unclear which proposal enjoys most support among MPs.

Huawei solar gear could threaten US grid, warn lawmakers

Chinese group faces increasing scrutiny amid fears of spying or cyber attacks by Beijing Kiran Stacey

uawei’s sales of solar equipment in the US threaten the entire American electricity grid, members of Congress have warned, in the latest rift between US politicians and the Chinese company. Both Democrats and Republicans have said that Huawei solar equipment could be hacked to allow a third party to slow or even interrupt US electricity supplies. Their warnings come just six weeks after Canadian officials arrested Meng Wanzhou, Huawei’s chief financial officer and daughter of founder Ren Zhengfei, in Vancouver on US charges of breaking sanctions against Iran. The move has exacerbated trade tensions

between Beijing and Washington. Tom Marino, a Democratic representative from Pennsylvania, wrote to Rick Perry, US energy secretary, saying he was “concerned that the company’s entrance into large-scale and residential solar markets may pose a threat to our nation’s infrastructure”. Bob Latta, a Republican member of the House committee on energy and commerce, said: “Ensuring our energy infrastructure is safe, secure, and resilient is an issue of critical importance. With documented efforts by state actors to hack our energy infrastructure, it’s essential that we are more vigilant than ever about the technology we use.” Jerry McNerney, a Democratic representative from California, said:

“If we are using equipment that is made by less than trustworthy suppliers, we are setting ourselves up. US intelligence agencies have warned American businesses that Huawei is not to be trusted, so we need to take that seriously.” Mr McNerney called on the Trump administration to compel Huawei to reveal exactly what is in the solar equipment it sells in the US. Their move further increases the heat on Huawei, which has long been viewed with suspicion by US policymakers. Members of Congress and officials within the Trump administration have expressed concern that the company’s technology could be used by the Chinese government for spying or cyber attacks.

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Germany steps up work on potential DeutscheCommerzbank tie-up

Donald Trump is leaning towards car tariffs, says top ally

Finance ministry asks for regulator’s analysis of a merger between major lenders Olaf Storbeck and Guy Chazan

Senator Chuck Grassley says US president wants to put pressure EU over farm products James Politi

huck Grassley, the top US senator on trade policy and a close ally of Donald Trump, said the president was leaning towards slapping tariffs on automotive imports, in the hope of forcing Brussels to further open the EU market to American farm products. In a briefing with reporters in the US Capitol on Wednesday, Mr Grassley said Europe was “very afraid” of US tariffs on cars and car part imports and they could be “the instrument that gets Europe to negotiate” on agriculture. “I think it would not necessarily be the best thing to do but I think the president is inclined to do it,” Mr Grassley, the 85-year-old Iowa Republican who is chairman of the Senate finance committee, said in reference to car tariffs. “I’m not in favour of tariffs but they are a fact of life when Trump is in the White House — they may be an effective tool.” Mr Grassley’s comments came ahead of a February 17 deadline for the US commerce department to publish a report on whether automotive imports constitute a threat to US national security, which could pave the way for Mr Trump to slap tariffs on the products in a big blow to both the EU and Japan. US negotiators are pressing hard for the EU to drop its resistance to the inclusion of agriculture in trade talks that were launched after a summit in July last year between Mr Trump and Jean-Claude Juncker, president of the European Commission. They are taking that position even though the agreement reached at the time only envisaged a narrower package based on regulatory reform and lowering trade barriers related to non-auto industrial goods. While American officials may be tempted to use the car tariffs as leverage to get the EU to make concessions, European officials have warned that automotive levies would halt the negotiations in their tracks and lead to retaliation, unless Brussels was granted an exemption. A US move to slap tariffs on cars and car parts would do great damage to EU and Japanese car manufacturers, including those that have manufacturing facilities in the US but use foreign-made components such as engines. If Mr Trump presses ahead with tariffs after the commerce department issues its report, it may not affect all car and car parts imports. Wilbur Ross, US commerce secretary, told the Financial Times in December that all options were on the table and that Mr Trump would have a lot of “flexibility” in deciding whether and how to impose any levies. Mr Grassley — who has recently met with both Cecilia Malmstrom, the EU trade commissioner, and Robert Lighthizer, the US trade representative — said bringing agriculture into the negotiations was essential to getting any trade deal approved by the US Congress. He said farmers and farm lobby groups were a “locomotive” that brought manufacturing and services groups along as well.

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Foreign governments divided over Congo election fraud African countries call emergency meeting as FT analysis shows Martin Fayulu won poll Tom Wilson, Henry Foy and Michael Peel

evelations about massive electoral fraud in the Democratic Republic of Congo divided foreign governments and regional groups, as African states scheduled an emergency meeting on the deepening political crisis. A Financial Times analysis of leaked voting data on Tuesday showed that opposition leader Martin Fayulu was the clear winner of Congo’s historic election and that rival opposition candidate, Felix Tshisekedi, who was declared the victor last week, should have finished a distant second. Congo’s constitutional court is due to rule on whether to validate Mr Tshisekedi’s announced victory in the coming days and the inauguration is scheduled for Tuesday, leaving little time for foreign governments to take a position. The EU urged Congo’s electoral commission to publish vote tallies from individual local compilation centres. When the electoral commission declared Mr Tshisekedi the winner last week, it announced only the total votes for each candidate and provided no breakdown by province, constituency or vote compilation centre. Maja Kocijancic, an EU spokesperson, said the commission needs to “work in accordance with the electoral law”. Congo’s electoral commission denied its results were fraudulent. Few Western governments issued official statements, as many

were reluctant to wade into a delicate political situation ahead of other African states. Congo’s foreign partners are still “digesting” the revelations, said one Western diplomat in Kinshasa. Bubble chart showing that corroborating data sets (leaked electoral commission data and Catholic Church data) point to massive Congo election fraud. In contrast, Russia — an increasingly important strategic partner for Congo — said it did not support an investigation into the disputed vote. “I heard that the results of the elections in the Congo were doubted, and the French foreign ministry expressed a call for an investigation,” Russia’s foreign minister Sergei Lavrov told the Financial Times on Wednesday. “They have called for Congo to hold another election, but we do not interfere with elections or the results of elections,” he added. The South African Development Community, an inter-governmental group of 16 African countries including Congo, has called an emergency meeting at the African Union on Thursday to discuss the disputed election. “The rest of the international community is waiting for the African response to recent developments and it is vital that SADC and the African Union come up with a common position,” said Stephanie Wolters, a Congo expert at the Institute for Security Studies in Pretoria. She said the outcome of Thursday’s meeting would define how many other governments proceed.

Angola, South Africa and other regional powers had pressured Joseph Kabila, Congo’s outgoing president, to hold the election and leave office, but statements in the past week indicate that these governments are divided on whether to challenge Mr Tshisekedi’s victory. Edgar Lungu, Zambian president, on behalf of SADC, called for a recount on Sunday — only for his government and South Africa to reverse position on Monday. Historically, the African Union and SADC have rarely waded into other country’s election outcomes, so any call for Congo to recount or overturn the result would be largely unprecedented. “The stakes are very high for both the SADC and the African Union”, Ms Wolters said. The UN, which runs the world’s biggest peacekeeping operation in the country, offered a restrained response on Tuesday. The UN Security Council “welcomed the peaceful holding of the elections” and “noted that disputes have been lodged before the Constitutional Court”, it said in a statement. With Russia and China, Congo’s biggest trading partner, likely to oppose stronger action unless African governments call for it, a more assertive move from the Security Council seems unlikely. “The Congolese people can handle this on their own and it is important not to impose this or that agreement as is normally done by France, the US and other former colonial powers”, Mr Lavrov, the Russian foreign minister said.

Morgan Stanley earnings hit by volatile markets US investment bank’s shares fall nearly 5% after results Robert Armstrong

organ Stanley’s fourthquarter results were hit hard by volatile trading at the end of 2018, and the bank missed Wall Street estimates on both its top and bottom lines. The news sent shares in the US investment bank down nearly 5 per cent in pre-market trading. Revenues at Morgan Stanley’s large equity trading unit were flat against the year before, trailing rivals JPMorgan, Citigroup, and Bank of America, which all saw

equity trading growth. In fixed income trading, Morgan Stanley struggled more than its rivals, with revenues falling 30 per cent. Investment banking fees were also down, with a strong quarter for M&A advisory offset by dreary results in equity and FICC underwriting, where revenues fell 22 and 28 per cent, respectively. There was little respite to be found in the wealth management division, which saw a slight decline in sales. “In 2018 we achieved record revenues and earnings, and growth across each of our business

segments — despite a challenging fourth quarter . . . While the global environment remains uncertain, our franchise is strong and we are well positioned to pursue growth” said chief executive James Gorman. Total revenue for the quarter, at $8.5bn, was well below analysts’ target of $9.3bn. Earnings per share was $0.81, down 5 per cent from the prior year. Both compensation expense and total operating expense fell, but it was not enough to offset the decline in revenues.

ermany’s finance ministry has asked banking regulator BaFin to share the results of its scenario analyses that model a potential merger of Deutsche Bank and Commerzbank, people briefed on the matter told the Financial Times. The move underlines how German officials are worried about the continued financial woes and sliding share prices of the country’s two biggest private sector lenders. Those concerns have led to a stepping up their assessment of options for consolidation in the sector. Olaf Scholz, German finance minister and vice-chancellor, has repeatedly called for a revival of the country’s industrial policy aimed at strengthening the financial sector and creating a national banking champion. A person briefed on the government’s thinking told the Financial Times that the finance ministry was “definitely looking” at the option of a merger between the banks, as German industry needed a lender big enough to help it expand globally. Between May and December, senior policymakers had 23 talks with Deutsche Bank’s chairman, its chief executive and other senior managers. They discussed the lenders’ “strategic options” among other issues, according to a reply by the finance ministry to an inquiry filed by a Green party member of the Bundestag. “The federal government is open for economically sensible options,” wrote deputy minister Bettina Hagedorn, adding that the actual decisions would have to be taken by the banks. With close to €2tn in total assets, a merged Deutsche-Commerzbank would be the third-largest European bank after HSBC and BNP Paribas. Over the past year, Deutsche Bank’s share price has fallen by close to 50 per cent, turning the country’s largest lender into one of the worst performing German blue-chip companies. After criminal prosecutors raided the bank’s Frankfurt headquarters in late November as part of an investigation into suspected money laundering, the bank’s share price fell to a new all-time low. G e r ma ny ’s bu s i n e ss d a i l y Handelsblatt on Wednesday reported that the government was arguing in favour of a merger behind the scenes. Four people familiar with the discussions between policymakers and the banks told the FT that while the finance ministry was evaluating the merits of a potential deal, it was not actively pushing for it. “There is no direct pressure from Berlin,” said one of the people. Another said: “No government can make such decisions, only the institutions themselves.” The finance ministry, BaFin, Bundesbank, the European Central Bank, Deutsche Bank and Commerzbank declined to comment. One person briefed on the matter said “the finance ministry clearly has an industry policy agenda with regard to German banks, but this agenda has not been greeted with a lot of enthusiasm by the lenders”. Both banks are busy with internal restructuring efforts, and many believe they currently lack the bandwidth to pull off a merger.

Friday 18 January 2019

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Primark defies wider retail gloom with strong Christmas Low prices continue to draw consumers as chain presses on with overseas expansion

Myles McCormick

K fast-fashion retailer Primark was buoyed by strong trading over the holiday season, defying the general gloom in the sector to post record sales. Primark’s owner Associated British Foods reported on Thursday that UK sales at the retailer had “exceeded our expectations” over the Christmas period, bucking the trend of disappointing results reported by many competitors. Its share price rose 6 per cent in morning trading. “I think Christmas and the run-up to Christmas was under testing conditions for retailers. But these numbers show Primark was a winner,” John Bason, finance director at ABF, told the Financial Times. “Sales over the Christmas period were at a record level.” British retailers have this year reported their worst Christmas trading period since 2008, with heavy price cutting failing to draw the crowds. Mr Bason said Primark’s performance was primarily down to investment in its stores, as well as its low prices. “If you look at some of the high street stores, there is little investment by a number of retailers. That’s not the case for Primark,” he said. UK sales at Primark rose 1 per cent over the last four months of 2018, with increases in September, October and December offset by a challenging November, as Black Friday and Cyber Monday drew customer spending elsewhere.

Overall revenue at Primark was up 4 per cent during the period as the chain continued to expand in Europe and the US. It increased its retail selling space by 0.3m square feet between September and January to 364 stores and 15.1m sq ft of selling space compared with 14.2m sq ft a year previously. ABF said the retailer would open a further 0.9m sq ft of selling space during the current financial year. Robert Waldschmidt, an analyst at Liberum, said Primark was “well positioned to take market share and drive doubledigit sales growth” on the back of its continued expansion. Primark accounts for roughly 60 per cent of operating profit at ABF, whose businesses span retail, groceries and sugar. Overall group revenue was up 1 per cent during the period as sales from continuing operations at its sugar business fell 14 per cent, driven by lower EU sugar prices for contracts negotiated at the end of the last financial year. Prices have since increased, but the impact of this will not be felt until the next financial year. The group does not expect to take a major hit from the UK’s imminent exit from the EU, Mr Bason said, noting that the company does not rely heavily on intra-EU trade. “For the Primark business we sell clothes from south-east Asia or wherever and it goes straight into the UK and doesn’t touch the EU27. Or it goes straight into the EU27 and doesn’t touch the UK,” he said. “In terms of a massive disruption I think ABF is not in that category.”

Microsoft pledges almost $500m for affordable housing loans Funding comes after criticism of technolgy companies driving up property prices Alice Woodhouse

icrosoft has pledged nearly $500m to provide loans to boost affordable housing in its hometown of Seattle, in what would mark one of the biggest moves by a technology company to deal with a sharp rise in home prices that some have blamed on the sector. Brad Smith, the company’s president, told The Seattle Times on Wednesday that the sum would be used to provide below-market interest rate loans to help low- and middleincome workers find housing. The company did not provide a number for how much affordable housing would result from the pledge. Seattle, which is also home to Amazon, was ranked as “severely unaffordable” by Demographia, the public policy group, in its 2018 housing affordability survey and is classed

as less affordable than New York City. The expansion of technology companies in the city has helped push up house prices and caused friction with local residents, a trend that has also hit San Francisco. Half of the total $500m will be used for below-market rate loans to build housing for people who earn up to 60 per cent of the median income of $48,150, according to the Seattle Times. Another $225m will be loaned below market rates to build “workforce housing” and developments for families earning between $62,000 and $124,000 in the Eastside area of the city. The remaining $25m will be donated to community projects directed at homelessness and support for lowincome residents. Microsoft held over $130bn in cash and short-term investments as of June 2018.

Facebook removes hundreds of ‘fake’ accounts linked to Russia Social media group says accounts engaged in ‘co-ordinated inauthentic behaviour’ Sarah Provan

acebook on Thursday removed hundreds of pages of “fake” news content and accounts, in two separate operations originating in Russia, that thesocialmediagroupsaidwas“engaging in co-ordinated inauthentic behaviour”. The 364 Facebook pages and accounts of one formed part of a network that originated in Russia and operated in the Baltics, central Asia, the Caucasus, and central and eastern European countries, said a post on Facebook by Nathaniel Gleicher, head of cyber security policy at the social media group.

Mr Gleicher said the page administrators and account holders represented themselves as independent news pages or general interest pages on topics such as weather, travel, sports or economics in countries that included Russia, Romania and Uzbekistan. Separately, based on a tip from US law enforcement, Facebook removed 107 Facebook pages, groups and accounts, and 41 Instagram accounts, which were part of a network originating in Russia and operating in Ukraine. Those behind these accounts primarily represented themselves as Ukrainian, and operated fake accounts sharing local news, he said.

Stocks to watch: SocGen, Sage, ITV, easyJet, Just Eat, Ubisoft Digital natives will force broadcasters to make big online investments, says Merrill Lynch Bryce Elder

ocieté Générale led Europe’s banks lower on a profit warning. The French lender blamed market conditions for a 20 per cent decline in revenue from its capital markets division, compared with the 10 per cent drop analysts had expected. Management also flagged up one-off hits to its capital buffer from disposals, set the dividend at the minimum level of €2.2 per share, and announced a scrip alternative to help preserve cash. While weak global markets estimates should largely be expected following the US results this week, the dilution from the stock dividend is the largest negative to our estimates. The decision to offer the option to take up the 2018 dividend in shares should also highlight the risk going forward . . . The fact that French retail banking trends in the fourth quarter are in line with guidance is of some comfort RBC Sage rallied after the software maker delivered an unexpectedly strong fiscal first-quarter update. Organic revenues were up 7.6 per cent to £465m, far exceeding the 5.7 per cent analysts had expected for the first half, thanks to an acceleration in subscriptions and recurring revenue. Analysts noted that year-on-year comparisons were much tougher for Sage’s second quarter. We do not expect consensus numbers to materially change on the back of these results. For the stock to work, we believe management needs to deliver consistent execution across multiple quarters, and in this context, the first quarter represents a step in the right direction

Citigroup Sellside stories Merrill Lynch downgraded ITV, Mediaset and ProSieben to “underperform” based on evidence that the shift to online video was accelerating. It forecast TV advertising spend to decline by 2 per cent to 3 per cent by 2025 and argued that terrestrial broadcasters in the UK and Germany were the most vulnerable to the trend. TV consumption is declining by 8 per cent year on year among adults under 35, two-to-three times faster than average, said Merrill. By 2020 these “digital natives” would represent more than 50 per cent of the labour force, up from around 35 per cent in 2015, so would be key targets for advertisers, it said. The cost of TV advertising aimed at this cohort has doubled or trebled in the past five years, whereas online video is now 30 per cent to 40 per cent cheaper, the broker estimated. The unsustainable inflation means the terrestrial broadcasters need to make big investments to recapture online space and, with content costs spiralling, operating margins are likely to compress by 500 basis points by 2025, Merrill forecast. Its note also downgraded both Atresmedia and RTL to “underperform” and moved TF1 down to “neutral”. Barclays downgraded easyJet to “underweight” with a £12 target in a European airline sector review. 2019 looks to . . . be the height of aviation demand uncertainty in recent years. Whilst indications for supply growth are supportive, it is still too early to know if summer capacity growth will be disciplined enough. Meanwhile, whilst oil

has pulled back, given hedging profiles, all airlines still face a fuel headwind in their upcoming financial year that covers summer 2019. Our analysis shows that the unit revenue growth needed to offset this unit fuel headwind is higher than our and consensus current expectations. Therefore other levers, including ancillary growth and ex-fuel unit cost reductions, are needed to support profit growth Barclays EasyJet looks vulnerable due to UK demand uncertainty and a strategy focused on holidays, said Barclays. Its network is focused on constrained airports so organic growth opportunities are limited, and delays caused by operating constrained infrastructure erase the benefit of holding premium landing slots, it said. In brief: Aegon cut to “sell” at Citigroup; Alfa-Laval upgraded to “buy” at Pareto Securities; Axa upgraded to “buy” at Citigroup; Bulten cut to “hold” at Kepler Cheuvreux; BNP Paribas rated “underweight” at Barclays; Crédit Agricole rated “equal-weight” at Barclays; Generali downgraded to “sell” at Citigroup; InterContinental Hotels raised to “buy” at Berenberg; Just Eat upgraded to “overweight” at Morgan Stanley; Munich Re downgraded to “sell” at Citigroup; Natixis rated “overweight” at Barclays; RWE downgraded to “equal-weight” at Morgan Stanley; SocGen rated “equalweight” at Barclays; Sodexo upgraded to “hold” at Berenberg; Stora Enso cut to “hold” at Jefferies; Suedzucker upgraded to “hold” at Berenberg; Takeaway upgraded to “outperform” at RBC; Ubisoft cut to “hold” at Jefferies; William Hill upgraded to “buy” at Berenberg

PG&E shareholder BlueMountain challenges bankruptcy plans Lindsay Fortado

lueMountain Capital, a hedge fund that holds a stake in the California utility group Pacific Gas and Electric Co., is challenging the company’s plan to file for bankruptcy protection following losses from the devastating California wildfires. “There is overwhelming evidence that PG&E is solvent,” the hedge fund said in a letter to the company’s board of directors on Thursday morning. “We simply cannot recall a situation where such a valuable company filed for bankruptcy with such blatant questions about the necessity of

doing so.” P G&E said on Monday it would enter Chapter 11 bankruptcy protection on or around January 29, which it said would allow it to maintain gas and electricity supplies for customers while it works out its liabilities, which it estimates at more than $30bn. BlueMountain said that the utility is actually solvent, and a bankruptcy would be “damaging, avoidable, and unnecessary” and would destroy value for the company and its shareholders. “Before improper and damaging leaks of confidential boardroom information, every Wall

Street analyst found PG&E to have a large capital cushion, and both major ratings agencies found PG&E’s credit to be investmentgrade,” it said. The fund added that it believes PG&E’s estimates of its liabilities were “inflated and premature,” and urged the board to conduct a solvency analysis. BlueMountain, which manages around $19bn, holds around 0.8 per cent of the company, making it one of the 25 largest shareholders. Shares in PG&E, down 85 per cent since November when the California wildfires first broke out, rose 8 per cent in pre-market trading.

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Friday 18 January 2019

ANALYSIS

US real estate: changing the way New York is built Hudson Yards developer Stephen Ross is picking a fight with organised labour that could transform city development Joshua Chaffin

n the realm of New York real estate, Stephen Ross reigns as the developer king Donald Trump could only pretend to be. The son of a failed inventor, Mr Ross grew up in Detroit and worked as a tax lawyer and investment banker until he was fired by Bear Stearns. It turned out that fateful failure allowed him to discover his true calling in property. His crowning glory is now rising on a site on the western edge of Manhattan that is the biggest in North America — the $25bn Hudson Yards development. When completed in 2025, it will total 18m sq ft of state of the art office and residential space — the equivalent of Pittsburgh’s central business district. Yet for Mr Ross, 78, the exacting chairman of The Related Companies, the developer of the project, transforming the city’s skyline is only part of the story. With Hudson Yards, he is aiming to leave what may be a more lasting imprint on New York by changing the way developers build. He is doing so by taking on the city’s most powerful construction union, which has played a storied role in New York’s development. The two sides are now butting heads over a 2m sq ft office tower at 50 Hudson Yards that is rising amid an epic test of wills. Union president Gary LaBarbera, right, with New York governor Andrew Cuomo © Alamy Underlying their clash are questions about equity between bluecollar workers and the masters of the universe that are polarising metropolises everywhere. There is also a uniquely New York wrinkle: a city that prides itself as the world capital of commerce is governed by an expensive and arcane, even clannish, system of building from an earlier era — something Mr Ross is determined to challenge. “Steve Ross sees himself as a transformative figure,” says one real estate executive, seeking to explain why the developer would risk picking a fight during such a complex project. A more prosaic explanation is that Hudson Yards still has years of construction ahead. If it can tame the unions now, Related and its investors stand to make big savings on the remaining work. Mr Ross’s foe is Gary LaBarbera, a one-time forklift driver who heads the Building and Construction Trades Council — an umbrella group that represents the 100,000 or so union workers who put up the city’s skyscrapers and dig its subway tunnels. Mr LaBarbera — who at 59 still has the broad shoulders and build of a longshoreman — boasts close ties to the state governor Andrew Cuomo and a reputation as a canny operator. A day after Amazon chose Long Island City, Queens, in November as the site of its new headquarters , the company’s chief of real estate was in Mr LaBarbera’s Flatiron office, adorned with a hard hat and a shovel, paying homage to the labour boss. One developer who has tangled with Mr LaBarbera marvelled at how he could be bombastic on a picket line and then surprisingly personable — even likeable — when they sat down to negotiate. “He does get it that he’s this caricature of the old era when the unions reigned supreme and broke your legs if you crossed them,” the developer says. For years, Mr Ross dealt cordially

with Mr LaBarbera. To build the first phase of Hudson Yards, Related played by the rules and struck a broad agreement with Mr LaBarbera and the unions he represents. The pact was supposed to lower costs and ease some of the Byzantine work rules that developers blame for making New York one of the most expensive places on earth to build. But after complaining about more than $100m in cost overruns over six years, Related opted to do what was once unthinkable: it cut Mr LaBarbera out of the next phase of Hudson Yards and threw open the bidding — including to non-unionised contractors. It was a declaration of war. Picketers now stage regular protests at Hudson Yards, the one blemish on what is otherwise expected to be a triumphal opening in March of its first wave of shops and public spaces. They accuse Mr Ross of condoning racism and sexism and harbouring extreme rightwing views that have made breaking the unions an obsession. They have hounded the Miami Dolphins owner at a meeting of the National Football League. They are now planning to target investors and the tenants of affordable housing built by Related. “Greed! Greed!” says Mr LaBarbera, when asked what he believes has motivated Mr Ross. “They’re going to have an incalculable amount of profits in this project. They should be a responsible developer — and they’re not.” For Mr LaBarbera there is much more at stake at Hudson Yards than a single office tower. Even in unionfriendly New York, organised labour has been in decline. Statewide membership in the private construction industry has fallen from 48 per cent in 1983 to 24 per cent last year, according to unionstats.com. The 2008 financial crisis appears to have been a pivot point. With the industry in crisis, developers and contractors turned to less expensive, non-union labour for large residential projects in the city. If Mr Ross can now succeed at building a commercial tower — a far more complicated endeavour — without the BCTC, then it could be a death blow for the movement, say observers. “Gary’s worried that this is the beginning of the erosion of his market,” says the executive, expressing sympathy for Mr LaBarbera’s plight. Joshua Freeman, a professor at Queens College who has chronicled the city’s labour history, agrees. “This is not nibbling at the edge of [the unions’] universe any more — this is at the heart of what they do. I think they see it as an existential threat and that’s why the unions are fighting so hard.”

Mr LaBarbera regularly irks Related by claiming construction delays at 50 Hudson Yards are because of a shortage of skilled labour. “I will tell you they’re behind schedule — they will deny it,” Mr LaBarbera says. “There’s no question they’re having problems.” Not so, says Related, which has named Mr LaBarbera in a $100m lawsuit it filed in March, accusing him of stuffing the site with no-show jobs and $42-an-hour “coffee boys”. The company says it is happy to use union labour but it would like to negotiate with each trade directly rather than striking a collective deal through Mr LaBarbera. A key point of contention appears to be labourers who perform lowskilled tasks on worksites, such as hauling goods. They still earn upwards of $70 an hour, thanks to Mr LaBar-

Draft state legislation was leaked in December that would formally designate Hudson Yards and other major developments as public works because of tax breaks and other public benefits they have received, thereby requiring them to use only union labour. The hope among activists is that the governor will endorse the bill. In his “state of the state” speech on Tuesday, Mr Cuomo pledged to expand the list of projects that are considered public — and therefore pay union rates. Doing so, he said, would ensure that they are “built right, built fairly”. The relationship between New York developers and labour has long been fraught. In the 1980s, the unions had become so infiltrated by the Lucchese and Gambino crime families that a state report described

bera’s clout. “That is not sustainable,” a Related executive complains, fuming at the suggestion that a company that has already employed — by its count — 20,000 union workers at Hudson Yards could be portrayed as anti-union. Mr Ross has notched a key victory in his latest fight: in effect splintering the unions by persuading the carpenters to break with Mr LaBarbera and negotiate their own agreement to work at 50 Hudson Yards. But Mr LaBarbera may soon play his trump card — Mr Cuomo. Once a union critic, the New York governor has formed a tight bond with organised labour. He has championed public works projects that may one day secure his legacy as one of the city’s great builders. The unions, in turn, have repaid him with their support, backing him over a more progressive candidate, the former Sex and the City actor Cynthia Nixon, in last year’s Democratic primary. Mr Cuomo will undoubtedly need them if, as many expect, he makes a run for the White House in 2020.

the industry’s workings thus: “Criminally controlled unions shake down contractors who need labour peace to complete jobs on time.” Bribery, it said, was “a way of life”. Such excesses have been reined in, say executives, and the two sides have enjoyed a period of relative harmony in recent years. Since the devastation of the financial crisis, the city has been awash in cheap money that has fuelled a building boom. From 2018 to 2020, the New York Building Congress estimates $177bn will be spent on construction in the city, including new airport terminals, major bridges — and Hudson Yards. It is the greatest building frenzy, some say, since the New Deal, attracting ironworkers and steamfitters from across the region. That is again pushing up construction costs for developers, who are anxiously watching the Hudson Yards battle. They are reluctant to stick their heads above the parapet but eager to see if Mr Ross may soon free them from costly — many say antiquated — regulations.

Chief among them are the city’s 19th century pay rules, which were designed to prevent newly arrived immigrants and cheap labour from southern states from undercutting local tradesmen. For all public works, contractors are obliged to pay the “prevailing wage” — a rate unions have negotiated through collective bargaining agreements — if at least 30 per cent of workers for a particular trade in the area are union members. Critics say the system is opaque and has artificially inflated wages. An electrician in the New York-New Jersey metro area who would earn an average of $94,000 a year in pay and benefits on a non-union contract stands to make $220,000 under the prevailing union wage system, according to calculations from the Real Estate Board of New York, a developers’ group. Those figures may be open to dispute since construction work tends to be seasonal and irregular — making it difficult to extrapolate annual salaries from hourly wages. “The iron worker on the project is not living as well as the executive who thinks he’s too expensive,” says Prof Freeman. The bigger cost, say developers, is not pay but union work rules. An example: New York requires building sites to have separate lifts for personnel and materials. So a worker and his wheelbarrow would have to ride up in separate lifts and then meet on a particular floor. Even though they are automatic, those lifts must be manned by highly paid union operators. “There’s zero reason to do that — except for the union rules,” says Jonathan Rose, a New York developer who specialises in affordable housing. In Denver, where Mr Rose has also built projects, he estimated the gap between union and non-union labour costs at about 5 per cent. In New York, various government and think-tank estimates put it at 20 to 25 per cent — a cost for public works projects that is ultimately borne by taxpayers. A New York Times exposé last year provoked outrage after it revealed that the cost of building a mile of New York’s new Second Avenue subway line was $2.5bn compared with $500m or less in the rest of the world. “The trades are very skilled but they come with a set of constraints that don’t make sense in the 21st century,” says Mr Rose. Mr LaBarbera does not deny that union labour is more expensive. He says his organisation is “evolving” and willing to work with developers to become more competitive. At Hudson Yards, he blames mismanagement by Related’s contractors for cost overruns.

Friday 18 January 2019

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Live @ the Stock exchange Prices for Securities Traded as of Thursday 17 January 2019017 Company

Market cap(nm)

Price (N)

Change

Trades

Volume

Company

Market cap(nm)

Price (N)

Change

Trades

Volume

PRICES FOR MAIN BOARD SECURITIES (Equities) BANKING ACCESS BANK PLC. 166,335.84 5.75 -0.86 205 19,477,026 256,495.66 7.50 0.67 129 4,477,469 UNITED BANK FOR AFRICA PLC ZENITH BANK PLC 681,303.92 21.70 -1.14 404 19,831,603 738 43,786,098 OTHER FINANCIAL INSTITUTIONS FBN HOLDINGS PLC 263,830.40 7.35 -0.68 242 10,806,933 242 10,806,933 980 54,593,031 BUILDING MATERIALS DANGOTE CEMENT PLC 3,237,696.41 190.00 1.06 113 1,124,510 108,851.52 12.55 0.40 93 1,025,129 LAFARGE AFRICA PLC. 206 2,149,639 206 2,149,639 EXPLORATION AND PRODUCTION SEPLAT PETROLEUM DEVELOPMENT COMPANY PLC 338,944.07 576.00 - 9 2,152 9 2,152 9 2,152 1,195 56,744,822 REAL ESTATE INVESTMENT TRUSTS (REITS) SKYE SHELTER FUND PLC 1,900.00 95.00 - 0 0 UNION HOMES REAL ESTATE INVESTMENT TRUST (REIT) 11,300.89 45.20 - 0 0 UPDC REAL ESTATE INVESTMENT TRUST 15,876.20 5.95 - 3 201,515 3 201,515 3 201,515 OTHER FINANCIAL INSTITUTIONS NIGERIA ENERYGY SECTOR FUND 411.91 552.20 - 1 60 VALUEALLIANCE VALUE FUND 3,312.39 103.20 - 0 0 1 60 1 60 4 201,575 CROP PRODUCTION FTN COCOA PROCESSORS PLC 440.00 0.20 - 0 0 78,220.62 82.00 - 8 8,860 OKOMU OIL PALM PLC. PRESCO PLC 62,000.00 62.00 - 8 149,960 16 158,820 FISHING/HUNTING/TRAPPING ELLAH LAKES PLC. 511.20 4.26 - 0 0 0 0 LIVESTOCK/ANIMAL SPECIALTIES LIVESTOCK FEEDS PLC. 1,590.00 0.53 - 4 11,244 4 11,244 20 170,064 DIVERSIFIED INDUSTRIES A.G. LEVENTIS NIGERIA PLC. 767.71 0.29 - 0 0 186.79 0.48 - 0 0 JOHN HOLT PLC. S C O A NIG. PLC. 1,903.99 2.93 - 1 375 TRANSNATIONAL CORPORATION OF NIGERIA PLC 52,435.91 1.29 2.38 42 3,661,592 25,355.41 8.80 -1.14 42 531,023 U A C N PLC. 85 4,192,990 85 4,192,990 BUILDING CONSTRUCTION ARBICO PLC. 711.32 4.79 - 0 0 0 0 INFRASTRUCTURE/HEAVY CONSTRUCTION JULIUS BERGER NIG. PLC. 37,488.00 28.40 - 11 26,115 ROADS NIG PLC. 165.00 6.60 - 0 0 11 26,115 REAL ESTATE DEVELOPMENT UACN PROPERTY DEVELOPMENT COMPANY PLC 4,287.35 1.65 - 10 33,062 10 33,062 21 59,177 AUTOMOBILES/AUTO PARTS DN TYRE & RUBBER PLC 954.53 0.20 - 0 0 0 0 BEVERAGES--BREWERS/DISTILLERS CHAMPION BREW. PLC. 12,135.72 1.55 - 5 58,900 GOLDEN GUINEA BREW. PLC. 242.22 0.89 - 0 0 GUINNESS NIG PLC 155,517.18 71.00 - 27 33,616 INTERNATIONAL BREWERIES PLC. 260,024.82 30.25 - 3 2,035 NIGERIAN BREW. PLC. 629,756.04 78.75 0.96 123 5,957,030 158 6,051,581 FOOD PRODUCTS DANGOTE FLOUR MILLS PLC 32,250.00 6.45 0.78 38 347,402 DANGOTE SUGAR REFINERY PLC 174,600.00 14.55 - 37 202,310 FLOUR MILLS NIG. PLC. 79,752.38 19.45 - 28 83,060 HONEYWELL FLOUR MILL PLC 9,833.45 1.24 -1.59 38 1,317,174 MULTI-TREX INTEGRATED FOODS PLC 1,340.10 0.36 - 0 0 N NIG. FLOUR MILLS PLC. 703.89 3.95 - 0 0 NASCON ALLIED INDUSTRIES PLC 47,689.89 18.00 -3.23 33 346,007 UNION DICON SALT PLC. 3,676.41 13.45 - 0 0 174 2,295,953 FOOD PRODUCTS--DIVERSIFIED CADBURY NIGERIA PLC. 18,782.02 10.00 - 17 65,821 NESTLE NIGERIA PLC. 1,110,590.67 1,401.10 - 36 16,543 53 82,364 HOUSEHOLD DURABLES NIGERIAN ENAMELWARE PLC. 1,680.31 22.10 - 0 0 VITAFOAM NIG PLC. 4,690.67 4.50 - 20 263,841 20 263,841 PERSONAL/HOUSEHOLD PRODUCTS P Z CUSSONS NIGERIA PLC. 47,050.15 11.85 7.73 26 150,317 UNILEVER NIGERIA PLC. 212,565.20 37.00 - 9 40,019 35 190,336 440 8,884,075 BANKING DIAMOND BANK PLC 48,868.42 2.11 0.47 95 59,564,930 ECOBANK TRANSNATIONAL INCORPORATED 253,223.81 13.80 2.22 51 7,887,867 FIDELITY BANK PLC 57,949.59 2.00 -2.44 101 9,565,361 GUARANTY TRUST BANK PLC. 953,570.21 32.40 -0.61 256 45,587,083 JAIZ BANK PLC 15,910.69 0.54 8.00 21 2,630,476 SKYE BANK PLC 10,687.83 0.77 - 0 0 STERLING BANK PLC. 57,580.84 2.00 0.50 13 1,167,189 UNION BANK NIG.PLC. 179,092.63 6.15 - 19 54,599 UNITY BANK PLC 9,702.15 0.83 - 8 561,896 WEMA BANK PLC. 23,530.42 0.61 5.17 27 725,271 591 127,744,672 INSURANCE CARRIERS, BROKERS AND SERVICES AFRICAN ALLIANCE INSURANCE PLC 4,117.00 0.20 - 0 0 AIICO INSURANCE PLC. 4,435.33 0.64 1.59 20 538,760 19,530.00 1.86 -4.62 15 797,860 AXAMANSARD INSURANCE PLC CONSOLIDATED HALLMARK INSURANCE PLC 2,660.00 0.38 - 1 500 CONTINENTAL REINSURANCE PLC 19,811.94 1.91 - 0 0 CORNERSTONE INSURANCE PLC 2,945.90 0.20 -9.09 3 333,295 GOLDLINK INSURANCE PLC 2,411.47 0.53 - 0 0 GREAT NIGERIAN INSURANCE PLC 1,913.74 0.50 - 0 0 GUINEA INSURANCE PLC. 1,412.20 0.23 - 0 0 INTERNATIONAL ENERGY INSURANCE PLC 487.95 0.38 - 0 0 LASACO ASSURANCE PLC. 2,197.03 0.30 - 15 946,770 LAW UNION AND ROCK INS. PLC. 2,277.06 0.53 - 0 0 LINKAGE ASSURANCE PLC 4,720.00 0.59 - 4 150,000 MUTUAL BENEFITS ASSURANCE PLC. 1,680.00 0.21 - 1 10,000 NEM INSURANCE PLC 11,933.94 2.26 9.71 32 1,519,900 NIGER INSURANCE PLC 1,857.48 0.24 - 8 14,561 PRESTIGE ASSURANCE PLC 2,691.28 0.50 - 3 206,181 REGENCY ASSURANCE PLC 1,333.75 0.20 - 2 111,800 SOVEREIGN TRUST INSURANCE PLC 2,001.80 0.24 9.09 23 7,431,239 STACO INSURANCE PLC 4,483.72 0.48 - 0 0 STANDARD ALLIANCE INSURANCE PLC. 2,582.21 0.20 - 0 0 SUNU ASSURANCES NIGERIA PLC. 2,800.00 0.20 - 10 1,931,000 UNIC DIVERSIFIED HOLDINGS PLC. 516.46 0.20 - 0 0 UNIVERSAL INSURANCE PLC 3,200.00 0.20 - 0 0 VERITAS KAPITAL ASSURANCE PLC 3,050.67 0.22 - 0 0 WAPIC INSURANCE PLC 5,620.75 0.42 -2.38 38 2,221,627

175 16,213,493 MICRO-FINANCE BANKS FORTIS MICROFINANCE BANK PLC 11,799.67 2.58 - 0 0 NPF MICROFINANCE BANK PLC 3,338.49 1.46 -8.18 7 233,640 7 233,640 MORTGAGE CARRIERS, BROKERS AND SERVICES ABBEY MORTGAGE BANK PLC 4,116.00 0.98 - 1 1,100 7,370.87 0.50 - 0 0 ASO SAVINGS AND LOANS PLC INFINITY TRUST MORTGAGE BANK PLC 5,922.05 1.42 - 0 0 RESORT SAVINGS & LOANS PLC 3,172.33 0.28 -9.68 2 100,100 2,949.22 3.02 - 0 0 UNION HOMES SAVINGS AND LOANS PLC. 3 101,200 OTHER FINANCIAL INSTITUTIONS AFRICA PRUDENTIAL PLC 8,000.00 4.00 - 58 204,769 CUSTODIAN INVESTMENT PLC 34,703.00 5.90 1.72 13 153,486 660.00 0.44 - 0 0 DEAP CAPITAL MANAGEMENT & TRUST PLC FCMB GROUP PLC. 36,040.93 1.82 -1.09 61 3,203,205 1,337.80 0.26 8.33 12 585,673 ROYAL EXCHANGE PLC. STANBIC IBTC HOLDINGS PLC 481,305.99 47.00 -1.05 12 119,874 UNITED CAPITAL PLC 19,020.00 3.17 0.63 72 1,590,762 228 5,857,769 1,004 150,150,774 HEALTHCARE PROVIDERS EKOCORP PLC. 1,680.29 3.37 - 0 0 UNION DIAGNOSTIC & CLINICAL SERVICES PLC 1,030.41 0.29 7.41 15 1,202,851 15 1,202,851 MEDICAL SUPPLIES MORISON INDUSTRIES PLC. 544.04 0.55 - 0 0 0 0 PHARMACEUTICALS EVANS MEDICAL PLC. 366.17 0.50 - 0 0 FIDSON HEALTHCARE PLC 7,425.00 4.95 - 0 0 14,350.52 12.00 1.69 28 339,945 GLAXO SMITHKLINE CONSUMER NIG. PLC. MAY & BAKER NIGERIA PLC. 2,401.00 2.45 - 6 76,300 NEIMETH INTERNATIONAL PHARMACEUTICALS PLC 1,156.76 0.67 9.84 15 422,928 556.71 3.62 - 0 0 NIGERIA-GERMAN CHEMICALS PLC. PHARMA-DEKO PLC. 325.23 1.50 - 0 0 49 839,173 64 2,042,024 COMPUTER BASED SYSTEMS COURTEVILLE BUSINESS SOLUTIONS PLC 710.40 0.20 - 1 100 1 100 COMPUTERS AND PERIPHERALS OMATEK VENTURES PLC 1,470.89 0.50 - 0 0 0 0 IT SERVICES CWG PLC 6,413.06 2.54 - 0 0 648.00 6.00 - 1 3,527 NCR (NIGERIA) PLC. TRIPPLE GEE AND COMPANY PLC. 381.11 0.77 - 0 0 1 3,527 PROCESSING SYSTEMS CHAMS PLC 939.21 0.20 - 25 44,800 14,952.00 3.56 -9.87 1 120,000 E-TRANZACT INTERNATIONAL PLC 26 164,800 28 168,427 BUILDING MATERIALS BERGER PAINTS PLC 2,492.48 8.60 - 1 1,500 CAP PLC 22,050.00 31.50 - 8 7,995 CEMENT CO. OF NORTH.NIG. PLC 302,300.52 23.00 4.55 33 569,419 654.21 0.31 -6.06 2 184,334 FIRST ALUMINIUM NIGERIA PLC MEYER PLC. 313.43 0.59 - 1 41,432 PORTLAND PAINTS & PRODUCTS NIGERIA PLC 1,999.41 2.52 - 0 0 PREMIER PAINTS PLC. 1,279.20 10.40 - 0 0 45 804,680 ELECTRONIC AND ELECTRICAL PRODUCTS AUSTIN LAZ & COMPANY PLC 2,256.91 2.09 - 0 0 CUTIX PLC. 3,170.38 1.80 - 1 600 1 600 PACKAGING/CONTAINERS BETA GLASS PLC. 30,148.31 60.30 - 4 1,896 GREIF NIGERIA PLC 388.02 9.10 - 0 0 4 1,896 AGRO-ALLIED & CHEMICALS NOTORE CHEMICAL IND PLC 100,754.14 62.50 - 1 10,000 1 10,000 51 817,176 CHEMICALS B.O.C. GASES PLC. 1,577.57 3.79 - 1 10,000 1 10,000 METALS ALUMINIUM EXTRUSION IND. PLC. 1,803.64 8.20 - 0 0 0 0 MINING SERVICES MULTIVERSE MINING AND EXPLORATION PLC 852.39 0.20 - 1 200 1 200 PAPER/FOREST PRODUCTS THOMAS WYATT NIG. PLC. 50.60 0.23 - 0 0 0 0 2 10,200 ENERGY EQUIPMENT AND SERVICES JAPAUL OIL & MARITIME SERVICES PLC 1,252.54 0.20 - 13 422,953 13 422,953 INTEGRATED OIL AND GAS SERVICES OANDO PLC 54,698.21 4.40 2.27 77 4,917,619 77 4,917,619 PETROLEUM AND PETROLEUM PRODUCTS DISTRIBUTORS 11 PLC 67,791.91 188.00 2.17 7 153,005 CONOIL PLC 16,134.39 23.25 - 13 32,666 ETERNA PLC. 5,738.24 4.40 - 20 165,292 FORTE OIL PLC. 39,269.81 30.15 2.55 38 327,839 MRS OIL NIGERIA PLC. 7,055.81 23.15 - 26 5,120 TOTAL NIGERIA PLC. 66,206.76 195.00 - 8 3,110 112 687,032 202 6,027,604 ADVERTISING AFROMEDIA PLC 2,219.52 0.50 - 0 0 0 0 AIRLINES MEDVIEW AIRLINE PLC 19,988.83 2.05 - 1 10 1 10 AUTOMOBILE/AUTO PART RETAILERS R T BRISCOE PLC. 411.72 0.35 - 0 0 0 0 COURIER/FREIGHT/DELIVERY RED STAR EXPRESS PLC 2,593.79 4.40 - 4 11,700 328.19 0.70 - 0 0 TRANS-NATIONWIDE EXPRESS PLC. 4 11,700 HOSPITALITY TANTALIZERS PLC 642.33 0.20 - 0 0 0 0 HOTELS/LODGING CAPITAL HOTEL PLC 4,801.22 3.10 - 0 0 IKEJA HOTEL PLC 3,159.77 1.52 - 3 98,630 TOURIST COMPANY OF NIGERIA PLC. 7,862.53 3.50 - 0 0 TRANSCORP HOTELS PLC 46,362.46 6.10 - 0 0 3 98,630 MEDIA/ENTERTAINMENT DAAR COMMUNICATIONS PLC 4,800.00 0.40 - 0 0 0 0 PRINTING/PUBLISHING ACADEMY PRESS PLC. 302.40 0.50 - 0 0

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Nigeria to save $2.5bn annually under new Powergas, ETEFA gas flare monetisation projects … firms present gas-fired city buses prototype

DANIEL OBI

igeria’s recent initiative to eliminate gas flaring through technically andcommerciallysustainablegasutilisationprojectsdeveloped bycompetentthird-party investorshasstartedtoyieldresult. This is as one of Nigeria’s biggest Compressed Natural Gas (CNG) distributor, Powergas and independent Austrian clean tech company, ETEFA, have introduced gas-fired city buses for public transportation in Nigeria. It is said that the introduction of the gas-fired city buses is expected to save Nigeria over $2.5 billion per year by reducing fuel costs in the transportation and power generation sectors by over 30 percent. Officials of ETEFA and Powergas Nigeria revealed the introduction of the gas-fired buses during a business networking event hosted by the Commercial Counsellor of the Austrian Embassy, Guido Stock, with the support of the Austrian Development Agency (ADA) in Lagos. Natural gas flaring is one of the biggest environmental disasters of Nigeria. Annually, over 7 billion Standard Cubic Meter (SCM1) of Natural Gas is being flared in Nigeria, leading to casualties of up to 2,500 individuals in the Niger Delta region (due to gas flare related pollution and

emissions). Gas flare emissions contribute to 20 percent of the entire Greenhouse Gases (GHG) of the country and are causing a massive waste of energy and financial resources. Speaking at the event, Sumeet Singh, general manager, Powergas, reiterated the company’s commitment to positively contributing to the clean environment of Nigeria. According to Singh, Nigeria’s annual diesel importation is the same as the Natural Gas being flared, saying, “We know that diesel imports are US dollar dependent, hence increasing the cost of fuel and decreasing the country’s scarce forex reserves.” Natural gas on the other hand is one of the most environmentally friendly energy sources, he said. With abundant reserves of 188tcf (Trillion Cubic Feet), Nigeria has the largest gas reserves in Africa. As a domestically available natural resource, effective utilisation is extremely important for import substitution (of liquid fuels) and forex savings. Gas Flare Reduction Programme sponsored projects can clean and process flare gas into Natural Gas, along with other by-products like propane, butane, LPG. Singh further said, as a company, “we believe that if all of Nigeria’s Gas Flare is captured and processed – it can power up to 200,000 city buses (pub-

lic transport) or 200,000 trucks (commercial transport), or even double Nigeria’s power generation capacity, while significantly improving the quality of the air (lower carbon and particulate emissions). Introduction of gas-fired city buses for public transport will significantly lower ticket prices for passengers. This will especially have a positive impact on the lower income populace who spend up to 40 percent of their monthly income on public transport. In his keynote speech, the CEO ETEFA, Johann Rieger, explained that the Clean, Economic and Safe Transportation (CEST) programme under the Gas Flare Monetisation Projects, CEST Programme’s targets include improving environmental and health conditions by reduction of emissions, lowering the cost of public and commercial transportation, while fostering local talent employment with technology transfer and strategic knowledge sharing. According to Johann, in order to show the full potential of the economies of the CNG city buses, ETEFA together with leading European partners developed a high quality 12-meter CNG City Bus prototype for the special needs and infrastructure requirements in Nigeria. The prototype is currently built, and local testing shall start with strategic local partners mid-2019.

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MOMAN calls for urgent review of downstream sector OLUSOLA BELLO

ajor Oil Marketers Association of Nigeria (MOMAN) has called for the immediate review of policy framework of the downstream sector. Adetunji Oyebanji, the new chairman of MOMAN, at a press conference in Lagos on Thursday, said there was need for regulating policy on the future of the downstream sector. Oyebanji, who also doubles as the managing director of 11Plc (formerly Mobil Oil Nigeria), said there must be a policy direction that would put the industry on a sound footing for the future. Oyebanji said the industry’s framework should be reviewed to attract investors in the sector. The chairman said that MOMAN members were really suffering from lack of policy direction for the sector. “The Nigerian National Petroleum Corporation (NNPC) is the sole importer of Premium Motor Spirit (PMS), otherwise called petrol, and the non-payment of fuel subsidy debts. “We are tied to a margin that we cannot adjust. Poor profit margin, low investment in infrastructure like pipelines, tank farms, depots and trucks are factors hindering growth in the sector,’’ he said. He called for the quick passage of the Petroleum Industry Bill (PIB) by the National

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Assembly and sign into law by President Muhammadu Buhari. “Once there is no scarcity, people don’t care about what is going on along the distribution value chain. Jobs are being lost, other companies that provide logistics for the sector are dying. In the long run, it will have a negative impact on the economy as a whole. “The entire value chain needs to be catered for through government policy. Most international oil companies have divested from the downstream sector, others have closed their terminals and this is not good for the industry,’’ Oyebanji said. On the issue of partial payment of subsidy debts by the Federal Government recently, he said, “A promissory note was raised to cover part of the legacy debts. We have issues with the banks on how to liquidate the notes. We are still expecting the payment of the outstanding in near future. Reconciliation between marketers and PPPRA is still ongoing. “In fact, the Central Bank of Nigeria (CBN) has directed commercial banks to fix interest charges on the debts effective from July 1, 2017.’’ Oyebanji added that resumption of petroleum products importation was not being contemplated at the moment, saying that the regulatory environment was not profit-driven.

MMIA experience temporary power outage IFEOMA OKEKE

here was a temporary power outage at the D wing section of the Murtala Muhammed International Airport, Lagos, yesterday. The Federal Airports Authority of Nigeria (FAAN) also confirmed the temporary power outage. Henrietta Yakubu, spokesperson of FAAN, said it was caused by a minor electric fault, saying electricity had however been restored at the terminal, as engineers were already working to rectify the fault and normalcy would be restored soon. She however added that no flight was affected by the outage; as she gave the assurance that FAAN would always live to its responsibilities of safe and secured airports under its control. “The management would like to assure the general public and airport users of their safety and security and comfort at all times,” she said.

EFCC, ICPC will soon give details of recovered funds - Buhari IDRIS UMAR MOMOH & CHURCHILL OKORO, Benin

resident Muhammadu Buhari on Thursday said he would soon order the Economic and Financial Crimes Commission (EFCC) to publish a comprehensive list of amount of stolen funds so far recovered in the country. Buhari made the disclosure at the All Progressives Congress (APC) presidential rally in Benin City. President Buhari, who is seeking re-election for the next four year, said the authorities of the EFCC and ICPC would jointly hold a press conference to address Nigerians of the state of funds recovered so far and what the government intend to do with it. He said his administration was selling assets of convicted corrupt persons while the proceeds were being saved in the Treasury Saving Account (TSA). He also disclosed that through investment in agriculture, the Federal Government had saved hundred of millions of dollars. On the state of insecurity in the country, he said the security in the North-East region and in the Niger Delta had improved more that what it used to be in 2015. He however urged Nigerians to give the party another four years, to be able to fulfil all his electoral promises to the people. He also canvassed vote for all APC national and state legislative candidates during

the next election so that they could all control the legislative leadership of the National Assembly as well as their various states. Earlier, the national chairman of the party, Adams Oshiomhole, who blamed the nation’s economic woes on the People’s Democratic Party’s 16 years of misrule, said four years was not enough for the party to deliver on its electoral mandate. Oshiomhole, who however welcome some defectors from the PDP to the party, told the defectors that their sins had been forgiven. According to Oshiomhole, Tony Iluobe, Henry Duke Tenebe and all that just defected your sins have been forgiven since you have decided to join APC. On his part, Governor Godwin Obaseki, who urged the people to vote en masse for the President, attributed his achievements in the last two years to the support of the Prescient. Obaseki, who promised one million votes for the President in the next election, said the President had promised to address the power challenges in the state. Minister of transportation, Rotimi Amaedhi, who is also the director-general of Buhari campaign organisation, who noted that Edo State was the only APC state in the South-South, urged the people not to disappoint the party during the election.

L-R: Folajimi Akinla, speaker; Bayo Adeyeye, chairman, Chartered Institute of Taxation of Nigeria (CITN), Lagos District Society, and Kunle Quadri, past president, CITN, at a symposium during the 2019 CITN, Lagos District Society, Annual Tax Week in Lagos, yesterday.

Atiku’s US visit seen boosting electoral chances INNOCENT ODOH

fter a 12-year deprivation of visa to a country he once lived and owned properties, former Vice President Atiku Abubakar landed in the United States of America on Thursday in what is seen by many as step to boost his chances ahead of the 2019 elections. A close source to the presidential candidate of the People’s Democratic Party (PDP) confirmed to our cor-

respondent yesterday that Atiku has arrived Washington DC, the US capital. The former vice president was said to have travelled to the US with some associates and friends, including Mustapha Chike Obi, former DG of the Asset Management Company of Nigeria (AMCON). The ruling All Progressives Congress (APC) had challenged the former vice president to travel to the US if he was innocent of an alleged case of money

laundering in the US, with Lai Mohammed, minister of information and culture, even cautioning US authorities against issuing Atiku a visa into the country. This visit is billed to generate much political capital for the Wazirin Adamawa. By this visit to the US, Atiku has crossed one of the most serious political hurdles on his path ahead of the upcoming general elections. Atiku is billed to speak at a forum by the American Chamber of Commerce

in Washington D.C. from 2:30pm to 4pm local time, Friday, and attend other meetings aimed at boosting his presidential election standing, according to campaign sources. Atiku has not visited the US since 2007 when his tenure as Nigeria’s vicepresident ended. His inability to secure a visa fuelled over the years speculations that a secret indictment had been entered against Atiku by US authorities.

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COMPLETE COVERAGE OF SOUTH-SOUTH / SOUTH-EAST

PHCCIMA supports NACCIMA young entrepreneurs in Rivers …says they’re strategic to chamber’s expansion EFEGADIRIM MADU, Port Harcourt

he Port Harcourt Chamber of Commerce (PHCCIMA) says youth entrepreneurs in Rivers State under the aegis of NACCIMA Youth Entrepreneurs (NYE) were a strategic group to expanding the business climate of the oil-rich state, with a $23 billion gross domestic product economy. Nabil Saleh, PHCCIMA president said this in Port Harcourt when he received a delegation of the Rivers State chapter of Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) Youth Entrepreneurs (NYE); adding that PHCCIMA was quite primed to work with the budding young entrepreneurs. The NACCIMA Youth Entrepreneurs Rivers state chapter were at the PHCCIMA secretariat to see the chamber president, as part of effort to consolidate on their successes witnessed last year. They were received by Saleh and members of the PHCCIMA executive committee. Victor Adedamola, coordinator of NACCIMA Youth Entrepreneurs Rivers chapter, commended the new PHCCIMA president and his executive committee members for their emergence at the last annual general meeting of the chambers. He said the youth group was

Nabil Saleh PHCCIMA president (3rd right), receiving greeting card from Victor Adedamola (4th right), coordinator,NACCIMA Youths Entrepreneurship, supported by members of his group poised to work in synergy with the new chamber administration to achieve a robust and unique blueprint. He said the youths were aware of the need for NYE members to fully and officially register as PHCCIMA membership, so as to leverage and benefit from the chamber’s boundless activities. He assured the president that they would ensure that more youths register and get the full complements of member

benefits. He thanked the PHCCIMA president of the continued support; and assured him that the youths were committed to the new synergies of his administration geared towards taking the chamber to another level. The PHCCIMA president welcomed the NACCIMA Youth Entrepreneurs Rivers chapter commitment to working with the chamber; assuring them that his administra-

tion will give wider support to youths. According to him, members of his team have made it a priority to carry the youths along in the scheme of things, especially in recognition of the fact that youths were quite strategic to national development. He said PHCCIMA youths will be given the support they need to position them favourably in the global comity of youths; and urged the NYE to

register fully with the chamber, as demanded by the constitution, to afford them the opportunity to leverage on PHCCIMA’s partnership with strategic institutions, organizations government agencies and international business groups. This would help take their businesses to another level. “I implore you to make effort to ensure your members register as PHCCIMA members. I know this will not come

as easy, as some of you are still going through the transitional stages of your business. Hence, I will direct the directorgeneral to accept some sort of staggered payments from the youths; perhaps in two instalments in the year, to make it easier for you to cope with the registration in the course of the year. The PHCCIMA second deputy president, Chinyere Nwoga, while enquiring about the NYE members’ line of business, implored them to join the chamber, expressing confidence that the chamber will give them more window to explore, widen their business scope and open more frontiers of business opportunities for them. NACCIMA Youth Entrepreneurs Rivers chapter, otherwise known as PHCCIMA Youths, is a group of young entrepreneurs affiliated with the chambers of commerce to inspire entrepreneurship, represent and advocate for the interest of youths in business, encourage youth patronage and investment, participation in decision making, among other objectives. The group also facilitates youth empowerment, skills acquisition for employability and self-actualization. It is best described as “a congregation of youths with knowledge and skills of business and entrepreneurship being mentored to equip them for effective participation in sustainable national development.”

Ogoni clean-up: Ogoni youths burnt down HYPREP bus …but MOSOP says FG failed to listen …accuses HYPREP of spending N1bn on media, with no drinking water in Ogoni EFEGADIRIM MADU, Port Harcourt

goni pressure group, the Movement for the Survival of Ogoni People (MOSOP) has described as a tragedy the January 15 fracas between some youths of Ogoni extraction and representatives of the Hydrocarbon Pollution Remediation Programme (HYPREP) on January 15, in which a HYPREP bus was burnt down. However, MOSOP said the incident though regrettable and condemnable, was avoidable. “It is also a clear indication that the Ogoni people are dissatis-

fied with the Federal Government over the clean-up implementation. If the issues are not properly addressed by involving the people in every phase, there could be stronger resistance from the communities,” the body said. It accused the Federal Government pollution remediation agency of insensitivity, and not carrying along Ogoni locals in the challenging task of Ogoni clean-up. “Although the incident regarding the burning of a bus owned by HYPREP was a tragedy, the Federal Government and HYPREP must realize that, in order

for the (Ogoni) clean-up exercise to be successful, they must engage the Ogoni people from the beginning stages to the end,” said Fegalo Nsuke, newly elected MOSOP president. He warned that HYPREP and the Federal Government “must select a contractor who will not be biased, and who understands the UNEP requirements in full, and the total needs of the Ogoni people.” According to Nsuke, “we must design a comprehensive plan and program that will include oil spill clean-up, infrastructure building, installation of

potable water piping, economic development, healthcare, education.” The MOSOP boss regretted that, “rather than address these fundamental needs, the Federal Government has been desperate to award contracts ahead of the 2019 elections. It is unfortunate that the selection of contractors has been more like political patronages, a situation where some of those selected as contractors, do not even know the road leading to Ogoni.” “The conduct of HYPREP in the implementation of the clean-up process has completely alienated the people, and

focused on private and monetary benefits rather than Ogoni interests. For instance, over N1 billion had been spent on communication, yet the local people do not know what HYPREP is doing in Ogoni. Wouldn’t it have been better to invest such huge amount on water provision for the people,” Nsuke retorted. He accused the Federal Government of failing to heed the advice of MOSOP on the need for integrity and diligence in the clean-up implementation process. “The government/ HYPREP think the Ogoni people do not have access

to the UNEP report or are simply ignorant about their needs, and what should be done about the UNEP recommendations. MOSOP recommended that the UNEP report should be implemented in a way that benefits the Ogoni people rather than for alleged political patronage. “The people must be involved with every stage, including the rights to select contractors acceptable to them, and in line with our Local Content laws. This will require robust engagement to come up with a comprehensive plan on development and cleaning the pollution,” the group said.

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City or Liverpool: Opinions divided over who wins premier league title Stories by Anthony Nlebem

here is no doubt in saying that the English Premier League is one of the most competitive and money spinning leagues in the world. The 2018/19 season is getting exciting with plenty of upsets as league leader Liverpool and Manchester City are the prime contenders for the title. Six weeks back, Manchester City looked quite set to clinch their second consecutive premier league title, but three unprecedented defeats in four games puts their title hopes in balance. Jurgen Klopp led Liverpool side took full advantage of the slump and leapfrogged Man City to claim the top spot in the league. In the home leg, Manchester City defeated Liverpool 2-1. At the moment, only four points separate both sides with 57 points and 53 points from twenty two games played. CIES Football Observatory in its report suggests that Manchester City will beat Liverpool in the race for English Premier League title. Manchester City achieved so

far 5% of points per match less than expected according to its pitch production. Conversely, Liverpool obtained 15% more and its results are supposed to decline in the second part of the season. The over- or under-performance were calculated according to a regression model built on the 2016/17 and 2017/18 seasons including shots on target, ball possession and shots conceded from the box. The data comes from the specialist company InStat. In the other big-5 leagues, the pitch production of three out of

four teams at the top of the table should allow them to lift the trophy: Barcelona in Spain, Juventus in Italy and Paris St-Germain in France. However, in Germany, the analysis suggests that Bayern Munich will outrank the current leader Borussia Dortmund. The data for 27 further European competitions are available on demand. More data is also accessible in the exclusive CIES Football Observatory Performance Atlas. No team has managed a successful defence of the Premier League

title since Manchester United in 2009 - but will this season be different? Manchester City boss Pep Guardiola, a winner of three consecutive league titles in Spain (Barcelona, 2008-11) and Germany (Bayern Munich, 2013-16), who saw his side finish 19 points clear of the pack last season will hoping to do a double. But, the big question is who will challenge them in 2018-19 season? Can Liverpool mount serious title challenge or will Manchester United rejuvenate form narrow the gap? Man City still have an advantage considering the strength and depth in the squad. Football pundits and former Newcastle United striker, Alan Shearer believes City can clinch the premier league title ahead of Liverpool “It has been a long time since anyone won back-to-back titles but I think City will win the Premier League again because of Pep; he won’t want their standards slipping. He will play exactly the same way and they are going to be very hard to stop, although I think Liverpool and United will both be a lot closer to them this time.” A pull conducted by BBC sports, 43% fans voted that Liverpool would

make it into the top four last season, and only 13% thought they would be higher than third - they finished fourth. This year 14% think they will win the title and 96% think they will finish in the top two. Ian Wright shares his own analysis “I want this season’s title race to be more spicy and I think it will be. If Liverpool can get some impetus, then we don’t know how Manchester City will react under pressure if a team can stay close to them at the end of the season. “You also have to consider that Liverpool are City’s Kryptonite. That’s why I am backing Jurgen Klopp’s side to pip them to the title. “When Liverpool are doing well in the league, the league seems better. And, when they have got a good team, with the crowd at Anfield they are literally unstoppable - as we saw against City in the Champions League last season.” Ruud Gullit: “If City have to battle for the league, we don’t know if they can do that. They will be up there at the top but I am backing Liverpool to win it. They are contenders because of the way they play, and how they control games but they also want to entertain and they want to attack - they play the right way.”

Aiteo, other African brands investing in African Football Bonny Kant

n January 08, 2019, the second edition of the Aiteo-CAF Awards, was held in Dakar, Senegal. Liverpool forward, Mohammed Salah and South African playmaker, Thembi Kgatlana emerged African male and female players respectively at the event, sponsored by Aiteo, Nigeria’s largest indigenous oil and gas company. Few things arouse interest and passion more than the round leather game in Africa. Besides the excitement it generates, football presents an alternative reality for Africans. In a continent broken into bits by colonial masters, the people have managed to find a shared identity in the love of football. A critical look at football sponsorship in Africa shows that Aiteo, MTN, and Globacom are some of the few African companies that have invested heavily in football on the continental. Aiteo is taking care of the payment of salaries of the National team coach and other football officials under a deal worth about $7million with the local football

authority, the Nigerian Football Federation (NFF) in May 2017. Aiteo also paid special bonuses to players of the National team, the Super Eagles, during their world cup qualifiers. This has led to a remarkable improvement in the Nigerian National team, which qualified for the FIFA World Cup 2018 and the African Cup of Nations (AFCON) 2019 after a string of failures. Furthermore, Aiteo has invested into local football in Nigeria by taking over the sponsorship of the local FA cup, the oldest football tournament in the country, which was rebranded Aiteo Cup in another monumental deal with the NFF. Before Aiteo, the CAF awards ceremony was sponsored by Nigerian Telecoms giant, Globacom from 2005 to 2016. Globacom is also the official sponsor of the Ghana National team and the Ghanaian Football League. In 2006, the company also sponsored the African Women Championship. Another Telecoms company with a large presence in Nigeria that is investing in African football is MTN. The South African Telecom giant was the title sponsor for the AFCON from 2004 to 2008. According to African Business Review,

MTN’s $12.5mil was the biggest sponsorship deal in African sporting history. MTN also sponsored the 2010 World Cup in South Africa, making history as the first African sponsor of a FIFA World Cup. Some African companies have also invested heavily in the local leagues of their home countries. In South Africa, state-owned telecoms company, Telkom sponsors one of the most important tournaments in the country. The Telkom Knockout is a yearly football competition organized by the Premier Soccer League (PSL). The South-African bank, ABSA has also been heavily involved in the country’s premier league as title sponsors. There is a lot that other African companies can learn from these brands in football financing. How do we hope to develop local leagues without some heavy monetary investments? Perhaps, the reluctance to sponsor football may have risen from the erroneous belief that companies stand little or nothing to gain in terms of returns. However, Aiteo, Globacom and other football sponsors in Africa have proven that investment in football generates significant brand recognition, translating into improved perception and increased market share. These are companies that were relatively new entrants in their industries but have now risen to the top. Football financing is not a zero-sum game where one side gains and the other loses; it is a mutually-beneficial activity where the contributors, the receiver and the public all benefit. Kant writes from Lagos

NIS names new date for silver jubilee, convocation

he National Institute for Sports (NIS), a leading sports training institute in Nigeria has rescheduled the celebration of its Silver Jubilee anniversary and convocation ceremony. The event which had earlier been slated for January this year will now hold on Wednesday 20th and Thursday 21st March, 2019 in Lagos. The combined convocation ceremony will involve no fewer than one thousand five hundred graduates who had completed their training programmes from 2005 – 2017 sessions. Some of the plans to mark the Silver Jubilee celebration of the institute are: Anniversary Lecture, Workshop, Gala Night and NIS Awards for Sporting Excellence, Convocation and Investiture of Honorary Fellows of the Institute as well as Recognition Awards for Sports Journalism. A statement announcing the new dates and signed by the Director/Chief Executive Officer of NIS, Dr. Kingdom Chukwudi Eke

revealed that the Silver Jubilee celebration is being organized in line with NIS vision “to be a first class institute transforming Nigeria and sustaining it as a world leader in sports”, adding that this initiative will no doubt make a clearer and loud statement about NIS resolve before all its stakeholders. The Director added that the date change became imperative in view of the forthcoming elections and the need to give the event the requisite national awareness it deserves. “NIS graduates are prominently engaged in services at National, State and local government levels as well as clubs, sizeable number are in ECOWAS sub-regions and other parts of Africa coaching and managing talents who are breaking barriers in global sports events. “We have produced graduates who have attained their career peak and hauled laurels, awards and medals for their distinguished and outstanding sporting feats”, the Director hinted.

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Opinion Tell freedom

ne time Russian Soviet political prisoner and currently a member of the Israeli Knesset, Natan Sharansky, wrote a lovely book, titled, The Case for Democracy: The Power of Freedom to Overcome Tyranny and Terror (New York, Public Affairs, 2004). In that enlightening discourse Sharansky distinguished between two main types of societies in the world: free societies and fear societies. Free societies are governed by the precepts of individual liberty and the imperatives of the rule of law. Fear societies, on the other hand, are governed by tyranny and terror. In fear societies citizens withdraw into their tribal and ethnic cocoons. People talk in whispers, afraid of their own very shadows. Nigeria today is becoming, sadly, a fear society. From the moment you wake in the morning, take your breakfast and get out of your doorsteps to pursue a livelihood, you are gripped in fear. From the highways to the streets and the marketplace, no one is safe. If it is not kidnappers or ritual killers and armed robbers; it is shadowy agents who abjure any form of libertarian ideals. We are being governed by the rule of fear. The first condition of freedom, as far as I know, is the freedom of speech. There is an atmosphere of fear in this country that is encroaching gradually but relentlessly on the right to free speech. Entire NGOS and questionable international agencies are devoting resources and energy to what they call “campaign against hate speech”. The irony is that those

campaigners are among the most hate-filled and vile human beings you can ever have the misfortune to meet. Even the so-called “Best Television Station in Nigeria” is a deceitful enterprise. Some of the interviewers ask questions intended to browbeat you into towing the official line. They pretend to be playing devil’s advocate, but they have become indirect megaphones for the tyrants. They are tacit co-conspirators in the fear and murderous tyranny that has taken over our country. We are currently under the reign of Global Jihad whose strategic intent is to kill our democracy and bury our freedoms under a morass of demonic oppression. Consider the case of Chief Justice Onnoghen who has been ordered to hand-over the reins of office as he faces trial for allegedly not filling his Assets Declaration form. He is also being accused of operating some dozen bank accounts containing varying amounts of local and international currencies. There has been no precedent for a serving justice being compelled to appear in a lower court to answer charges for a misdemeanour, real or imagined. When Chief Justice Mahmud Mohammed was retiring in November 2016, his successor was supposed to have been announced immediately. This was never done. There were rumours that the government was not comfortable with his presumed successor according to our de facto “seniority rule” for succession in the Supreme Court. There had been a whispering

campaign that he was “corrupt” and unfit for the exalted office of CJN. Walter Onnoghen, the presumed successor, took over in acting capacity so as to avoid a vacuum. He continued acting until 6 March 2017, when he was confirmed as substantive Chief Justice by Acting President Professor Yemi Osinbajo. President Buhari had been away on sick leave. And given that the rules forbade him from acting beyond a certain time limit, Osinbajo chose to confirm him. Apparently, the decision did not go down well with certain powers. Section 21(3) of the Third Schedule of the 1999 Constitution confers on the National Judicial Council (NJC) the powers to recommend to the executive the appointment, discipline and removal of judges. We are

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About a week ago, a contact in the security services found a circular with a new travel ban list from the Presidency, dated 11 December, with my name on it. I was been banned from travelling without any charges ever having been directly levelled at me

HumanAngle FEMI OLUGBILE

Physician, psycho-profiler and essayist

t is election season again, in Nigeria, and political communication is taking up all the space and soaking up all the oxygen everywhere you turn. The intention behind most political communication is invariably to advance the cause of one political camp or other, but how precisely it is to achieve that is often not well spelt out or thought out. The usual method is by arming a bellicose army of ‘word-warriors’ to attack not only the opponent, but all citizens who deign to count him worthy of support. Examples of some of the ratiocinations for such behavior include ‘That’s how the game is played’, ‘Our spokesman is an old warrior in the game’, and even ‘That’s what the people expect’. The purpose of communication is to influence people. The elements of communication include the forming of an intention to pass across a message, the phrasing of the message, and the actual communication process – including the ambience and modality of delivery. The concluding part of the transaction is the message that is received by the intended target. In Nigerian political culture, the intention of political messaging, in so far as it can be put into words, is to win by any means necessary, drawing on what precedents there are concerning what works.

perplexed as to why the Code of Conduct Bureau did not bring these charges earlier on, until now. The timing is patently rather suspect. We are in an electoralpolitical cycle in which the stakes are high. We are under the impression that the government in power is desperate to reposition key personnel in such a manner as would help them rig the elections. Hence the appointment of Amina Zakari as INEC chief collating officer. Even if she was not related to the president, the fact that she comes from his geopolitical zone leaves a rather bitter taste. The prosecution of a serving Chief Justice at this time could similarly be interpreted as a way of hounding him out and repositioning the high judicature to ensure that they have a Chief Justice who can give a favourable judgement should matters end up in court. Onnoghen’s presumed successor is an expert in Sharia law who comes from the President’s “catchment area”. He does not have a great reputation as a common law jurist. At least one of his colleagues confided to me that they used to help him write some of his judgements. Walter Samuel Nkanu Onnoghen CJ may or may not be guilty of the offences he is being charged with. The issue is whether such a public display is the best way to resolve a delicate matter with respect to a serving Chief Justice. The timing and the approach smack of judicial persecution. Of course, nobody is above the law. There are times when judging the judges is an imperative necessity for the up-

holding of the rule of law. But we must do it with equity and justice, not in the manner of barbarian hordes. Removing a Chief Justice is not a small matter. It is a decision that one approaches with fear and trembling. In our own case, there has been only one episode when a serving Chief Justice was summarily relieved of his post. I am referring to the case of Justice Taslim Olawale Elias who was removed by the Murtala/Obasanjo military dictatorship in 1975. Of course, a military regime can sack any public officer who has the misfortune to incur their wrath. But it would be a moral and political catastrophe; for a democratic government, it is worse. Taslim Olawale Elias was the greatest jurist this country has ever produced. The humiliation he received in the hands of the military did not keep him down. He went on to be a judge of the International Court of Justice at The Hague, and eventually, its President. An oracle of great learning and erudition; he was an ornament of the legal world. About a week ago, a contact in the security services found a circular with a new travel ban list from the Presidency, dated 11 December, with my name on it. I was been banned from travelling without any charges ever having been directly levelled at me. I had to go to them myself to verify if the circular was genuine. It was then I was subjected to a whole day of questioning. They also came to my home and seized my passport. They said they were probing some money that CBN gave to banks as far back as Octo-

consequences of past misdeed, such as EFCC investigation, or other affinity.‘Such is the fickle nature of the prevalent logic that ‘loyalty’ counts for nothing, and such ‘defecting’ can take place back and forth several times even within the same electoral cycle. There is no evidence that any significant part of this back and forth traffic across party lines is due to the

caps, t-shirts and take-away food thrown in. Perhaps there would be a few members of the public, driven by curiosity, or out to collect souvenirs and ‘empowerment’. To put it in religious terms, the Nigerian political rally, despite its portrayal as a sine qua non for electoral success, is not a place for winning new souls. So, the rally and the loud, ‘take no prisoner’ spokesmen stirring up the air in the mainstream press and social media, what do they achieve for the cause? Their value can be advertised as follows: •They fire up the base (but ‘the base’in Nigeria is not held together by ideas - whether progressive, retrogressive, or even racist – like Donald Trump’s base. Most often here they are held together by a sense of collective interest which is, unfortunately, often primordial. In reality the mind of ‘the base’ is already made up and it does not require much ‘firing’. •‘In your face’ (‘We are going to win, and there is nothing you can do about it’). The classical example of this mind-set is the story of the Deputy Governor of the old Western Region of Nigeria, who is reputed to have announced to the masses in a radio broadcast ‘Be e se ti a, bee se ti a, Demo o wole’(‘Whether or not you vote for us, we will win’). He was, of course, speaking from inside knowledge that the election would be massively rigged, and his party would ‘win’, which it went on to do, plunging the whole nation into crisis. The triumphalist posture of the rallies of President Jonathan’s ‘TAM’ Ambassadors in Lagos and other places in the 2015 elections, with Police and militiamen swaggering about, flaunting their guns, had a similar flavor, and could have been attended by similar

The psychology of political communication in Nigeria

A core part of the reason for the poor culture in political messaging and marketing, unfortunately, is a common failure to define the ‘target’. Who, truly, is the target in the political message? The politician, pressed, would say – ‘the people’. ‘What do you want to achieve with the people?’ ‘To persuade them that I am the best man for the job.’ Most political communication in Nigeria, especially when done by ‘professionals’ or designated spokesmen, does not make a pretense of being objective. At the very least it

will have done some ‘selective abstraction’ – harping on those parts of the argument that favour the cause and playing down on facts that do not fit. It makes its point with vehemence and conviction that assumes the manifest justification of its position and brooks no contradiction. Almost invariably it is speaking to the already converted. There has been, and continues to be, a great deal of ‘carpet crossing ‘in Nigerian politics. The carpet crosser’s ‘persuader’ is mostly tribe, money, the promise of office or perquisites,the promise, even if unstated, of relief from facing the

political messaging that is so expensively procured and deployed by the players, and that represents a major part of ‘normal’ expenses that make electioneering in Nigeria among the most expensive in the world. Even the ‘political rally’- the staple activity in Nigerian election culture, and one of the highest cost-centres, is of dubious value, if the purpose, as is often stated, is to persuade the electorate or sell the message of the party to them. Who goes to a political rally, in reality? More than ninety percent would be people who are already members of the ‘rallying’ party, or who have been ‘bussed’ in, usually for a fee, with face

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In Nigerian political culture, the intention of political messaging, in so far as it can be put into words, is to win by any means necessary, drawing on what precedents there are concerning what works

THE NEW WEALTH OF NATIONS

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

ber 2006. I explained to them that I was Deputy Governor for Economic Policy. Our department never handled money either for bailouts, forbearance or anything of the sort. Besides, I left in March 2007. I asked them why they were picking on me for this kind of questioning when the people that were directly involved in mainline departments were not being questioned. I asked if this is not political persecution. One of them asked me sheepishly why I do not want to join President Buhari and the APC. I replied that I would like to know why Buhari and the APC do not want to join the African Democratic Congress (ADC). Such is the ominous darkness that is taking over our country. consequences. Itmaystillbearguedthatevenifthey are not great value for money, and even if they don’t help the cause (whatever that is) a great deal, at least the truculent newspaper and social media warriors don’t really do any harm to anyone. Unfortunately, this is most emphatically not true. Sometimes, as it is now, it is all a bit too much. The hot air heats up the polity. For many citizens who just want to get on with their business and their lives without ‘wahala’, the noise of the verbal combat, and the violent emotions it generates, is definitely discombobulating. Beyond that, the ugliness of the exchange can be a turn-off for the undecided, or those looking for a change from the present- precisely the sort of people who should be courted in a normal election situation. The rude, sanctimonious vituperations of a‘Pastor’RenoOmokriorthehowling, fact-challenged outpouring ofan FFK, raining curses and abuse on all who disagree with him, may be just the thing that will persuade many people that while ‘Changi’ may not be working,becoming‘Atiku-lated’maynotbe the answer either. It is noteworthy that these gentlemen certainly achieved similar unintended effects for their principals in the last election. Even where high ideals are not a prime consideration, as is sadly the fact in the state of our political development in Nigeria, and even where money flows and ‘money is not a problem’, as in our cash-and-carry elections, it would still be a useful exerciseforpoliticalprincipals,purelyon a pragmatic, management basis that takes cognizance of what works and what is counterproductive, to take a more active interest in reining in their messengers and controlling the message that is put out on their behalf. Just a thought.

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