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news you can trust I ** FRIDAY 18 september 2020 I vol. 19, no 653
₦ 4,998,039.32 56.82 +1.73
Crude Oil
$42.31
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N300
Foreign Exchange
Market Buy
Sell
I&E FX Window CBN Official Rate as at September 16, 2020
ntb
MTN Nigeria plc CP
386.00 379.00
0.00 1.51
0.00 4.49
3m 2m 28-oct-20 25-nov-20 392.38 395.23
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Edo 2020: Group supports Obaseki’s re-election, produces over 2,000 facemasks for election day P. 2 Covid-19 lockdown ruptures Transcorp P. 27 Hotels’ profit margins ‘Real estate is our oil in Lagos; we are conforming to global best practices to ensure enduring continuity for genuine participants’ P. 16&17
Axxela Nsp-spv Funding 1 (Natural Gas) PowerCorp plc plc
0.20
-0.17
-0.15
-0.05
9.08
7.84
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11.09
6m 12m 24-feb-21 25-Aug-21 403.75
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60m 36m 30-aug-23 27- aug-25 498.32
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L-R: Bashir Hassan Ibrahim, general manager, business development North, BusinessDay Media Limited, with Ahmed Musa Dangiwa, MD/ CEO, Federal Mortgage Bank of Nigeria, after an exclusive meeting on the state of housing sector in Nigeria in Abuja.
Ifeoma Okeke , Anthonia Obokoh & Temitayo Ayetoto
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Dangote Cement plc
*NTB - Nigerian Treasury Bills; *CP - Commercial Paper
Lagos labs scramble for reagents as flight resumption surges demand for COVID-19 test edical laboratories in Lagos, Nigeria’s epicentre of COVID-19 spread, are scrambling for reagents (mixture/chemical for carrying out test) in an impromptu race to feed the demand surged by the
FGN
Spot ($/N) 25-Feb-21 5-Mar-21 23-Jul-30 30-Apr-25 20-May-27 27-Feb-34
$-N 450.00 465.00 1m £-N 580.00 600.00 Currency Futures 30-sept-20 389.54 €-N 515.00 545.00 ($/N)
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Benchmark Sovereign & Corporate Bonds
Pic Tunde Adeniyi.
Hoteliers may abandon franchise, agreement as business declines C OBINNA EMELIKE
onsidering the high exchange rate and persisting lull in business occasioned by the coronavirus (COVID-19) pandemic, many Nigerian hoteliers are now struggling more to pay franchise and management fees, which are
many now self-managed
dollar denominated, to their foreign brand managers. Due to the development, some are already defaulting in fulfilling the management agreements they signed with their foreign managers, and are considering abandoning the brands for self-management.
While their inability to host their managers may be due to the persisting impact of the pandemic on the hospitality industry, which is yet to receive palliatives from the government, some industry experts think the affected hoteliers may be putting up the action to prevent
their managers from increasing franchise and management fees the managers claimed have been lowered by inflation and high risk of working in Nigeria. At present, the least franchise fee goes from $50,000 per year for regional brands, while top brands’ charges are often double Continues on page 30
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news Edo 2020: Group supports Obaseki’s re-election, produces over 2,000 facemasks for election day
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ith less than two days to the governorship election in Edo State, a group, Strategic Outreach Support (SOS), has thrown its weight behind the re-election of Governor Godwin Obaseki, swelling the support base of the candidate of the People’s Democratic Party (PDP). The non-governmental organisation also produced and donated over 2,000 facemasks to the state government to be made available to voters on election day, to enable them access the polling booths in accordance with the directive of the Independent National Electoral Commission (INEC). President of the group, Uzoma Ehikwe, who spoke with journalists in Benin City after delivering the items to the office of the special adviser to the governor on media and communication strategy, urged eligible voters to come out en masse on Saturday to vote for the PDP to enable the governor consolidate on the successes recorded in the first term. Commending the governor’s achievements across all sectors in the state, Ehikwe noted: “As a concerned group
interested in good governance and development of Edo State, we acknowledge the developmental strides recorded by the Obasekiled administration and want continuity of the governor’s people-centric governance; his laudable projects are there for everyone to see. “From the State Secretariat Complex and the 55MW CCETC-Ossiomo Power Plant, which have been completed and ready for use, to the 5500bpd Edo Modular Refinery, the Benin Enterprise and Industrial Park, among other legacy projects, the governor has continued to earn the love and support of majority of Edo people. “Today, we are donating over 2,000 face masks to the government, to be distributed to voters to enable them access their polling booths on election day so as to vote massively for the PDP to ensure the governor’s victory. “We are very sure that Edo people will come out en masse to re-elect the governor because they want this government to continue with the ongoing developmental projects and reforms which have transformed the state into a safe haven for investors.”
Nigerian insurers’ average return on equity tumbled in 2019 Bala Augie
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t’s been clear for a number of years that insurance companies return on equity (ROE) has been waning, with the impact of deteriorating underwriting margins, combined with weak investment performance and spiralling inflation all impacting the profitability of the sector. The added pressure of from weak valuations, unrealised losses on certain assets, premium growth that is failing to keep pace with loss cost trend, weak capital, and economic downturn, have all driven the decline. Consequently, the industry average ROE fell to 14.52 percent as at December 2019 from 16.44 percent the previous year, according to data gathered by BusinessDay. A deteriorating ratio means insurers are not using shareholders money to generate profits, which is why the valuation of Nigerian companies is weak compared with peers in sub-Saharan Africa. Also clear is that a lot of insurers are not managing their investment portfolio to the extent such gains will help compensate for rising claims, underwriting and management expenses. Huge losses have been eroding profitability and a lot of operators in the industry are wary of the risk they un-
President Muhammadu Buhari (r), with visiting President Roch Christian Kabore of Burkina Faso, at the Presidential Villa, Abuja, yesterday. NAN.
High system liquidity pushes investors to turn blind eye to inflation risk …as yields on T-bills move close to negative … investors post N45bn unsuccessful bids Endurance Okafor & David Ibidapo
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ore than N45 billion worth of unsuccessful transactions were recorded at the Nigerian Treasury Bills (T-Bills) auction conducted Wednesday by the Central Bank of Nigeria (CBN) on behalf of the Federal Government of Nigeria (FGN) as excess liquidity chased after limited investments instruments. With the few attractive investment opportunities in Nigeria amid the low yield environment, fixed-income investors who participated in the government short-term instrument were forced by the ‘there is no alternative’ (TINA) pressure to keep rates moderated across tenors. Although, the investors
dertake. Mounting obligations that have resulted in huge underwriting losses have forced operators to be more than ever cautious of the risk they admit into their books. Analysts attribute the protracted slump in returns to shareholders to escalating operating and underwriting expenses in the face of inflationary pressures. They add that firms spend a lot of money in the acquisi- ISAAC ANYAOGU tion of latest technology, staff mid condemnation training and recruitment, and by labour groups diesel costs since electricity and others over the from the grid is unreliable. review of electricNigerian insurers are not ity tariff, data available to making underwriting profit BusinessDay indicate that as average industry combined only about 25 percent of ratio hit 125.89 percent in Nigerians in service bands A December 2019, higher than to C will be impacted by the the 100 percent benchmark, tariff review (or 50% of the according to the data. on-grid population), while Analysts at Coronation the Federal Government Merchant Bank believe that will continue to subsidise low profitability results in lack the electricity tariff for the of investment in technology remaining. necessary to bolster efficient Analysis of the share of and underpin seamless op- consumer band contribuerations. tion to electricity distribuThe key difficulty, we be- tion companies’ (DisCos) lieve, is lack of scale, accord- revenue indicates that sering to the analysts. vice band A consumers “Composite insurers, like will see the highest averall insurers, have a level of age increase of 48 percent fixed costs which can only be across DisCos, but this is justified by levels of business, maximum demand for cusbut most Composite insurers tomers including industrial lack the level of business to zones and highbrow estates absorb these central costs and commercial areas. Customers on band B Continues on page 30 and C will see their share
would have ordinarily demanded more return for Nigeria’s 13.22 percent inflation risk. “There is strong liquidity in the market but not enough investment vehicles,” Ayorinde Akinloye, a research analyst at CSL stockbrokers says. Investors bid at rates as low as 1 percent, 2 percent and 12.80 percent on the 91-day, 182-day and 364-day bills, respectively. Subsequently, the apex bank settled it stop rates at 1.09 percent, 1.5 percent and 3.05 percent on the 91-day, and 182-day maturities, a further drop from the previous stop rates of 1.10 percent, 1.55 percent and 3.05 percent recorded in the previous auction. With a 29-month-high inflation rate at 13.22 percent
in August, return on investment for T-bills plunged to -10.17 for the 364-day instrument and -12.13 percent and -11.72 percent for the 91-day, and 182-day maturities, respectively. “This means a negative real return for investors, which is not good for them, but on the other hand good for the Federal Government as it means they can now finance their deficit at a low cost,” Omotola Abimbola, a macro economist at Chapel Hill Denham, says. The stop rates reported in the auction results from the Nigerian treasury bills primary market for the week, 16-Sep-20, is the least BusinessDay has reported since it started tracking the data in August 2016. “This is the lowest rate
in a long time. I feel the rate of decline will continue to moderate. However, with the high volume expected maturities, we don’t expect rates to improve for the rest of the year except a major policy shift emanates from the CBN to change the current market structure,” Ayodeji Ebo, a Lagos-based investment professional, states. Analysis of the market result seen by BusinessDay shows that investors jostled for the N158.75 billion the CBN sought to raise at the auction with N204.16 billion, meaning investors oversubscribed by a whopping N45.41 billion. “Opportunities to put money into right now are limited,” Obinna Uzoma, chief
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Analysis shows only 25% of Nigerians are impacted by tariff review
… rural dwellers living off-grid pay higher rates from renewable energy sources
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of contribution to DisCos’ revenue increased by 25 percent and 27 percent, respectively, and the bulk of these customers fall in residential classes and are in major city centres in Lagos, Abuja, Port Harcourt. Considering that about half of Nigeria’s 200 million people do not have access to the grid, and a huge chunk of electricity consumers fall under bands D and E who will see their tariff frozen, this means that in real time, barely 25 percent of Nigerians will pay a higher tariff for power under the new service reflective tariff (SRT) plan. The new SRT took effect September 1. It is anchored on the principle of equity demanding that DisCos bill consumers based on the level of service delivered. The DisCos have always pushed for a tariff that is cost-reflective, now they must earn their pay. DisCos were broadly
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consulted in developing the tariff plan and based on allowed recovery and its consumer split, each Disco designed its tariff system applying the service-based methodology to earn revenue not greater than its allowed recovery. DisCos submitted their proposed tariff design for Nigerian Electricity Regulatory Commission (NERC) ratification and conducted a consultation with its consumers on new rates and service commitment. NERC approved the tariff request from DisCos and issued a tariff order to this effect. Therefore, DisCos have been mandated to improve communication and service commitments to consumers or face sanction. In recent times, DisCos have published rates and figures by location for all consumers, so citizens can clearly understand where they stand and who has been impacted. @Businessdayng
Communication has mostly been around rates per tariff band. Band A has 20 to 24 hours, Band B has 16 to 20 hours, Band C has 12 to 16 hours, with Band D and E being lower than 12 hours. Band D and E, which are said to be less wealthy areas of the country are frozen for tariff increase. Therefore, many consumers say they are not clear about where they stand on Service Guarantees by the DIsCos. Many are unaware that if a DisCo consistently fails to meet service guarantees an area will be moved to a lower tariff band. Though labour groups and many Nigerians have condemned the tariff increase, in reality not everyone will be affected. “Regarding the electricity tariff, the majority of Nigerians will not be paying more and that is essentially because if you are currently
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BUSINESS DAY
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NEWS
SUNREF €€ 70m green energy financing will make manufactured goods competitive - MAN ISAAC ANYAOGU
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70 million euro financing for businesses for green energy projects provided by the French Development Agency (AFD) and the European Union Infrastructure Trust Fund (EU-ITF) will aid the competitiveness of products manufactured in Nigeria, some manufacturers have said. At the recent virtual launch of the Sustainable Use of Natural Resources and Energy Finance (SUNREF), the organisers said the Manufacturers Association of Nigeria (MAN) and Winrock International, a US-based non-profit working to improve energy access around the world, would act as custodians of the fund created to assist manufacturers deal with inadequate energy supply. Mansur Ahmed, president of MAN, in a speech read by a representative, said the challenge of inadequate electricity supply was hindering the growth and competitiveness of the manufacturing sector in Nigeria.
“It is the reason why Nigerian manufactured products are not competitively internationally,” Ahmed said. The MAN president said that the SUNREF project would improve access to reliable energy and promote green energy initiatives through financing of diverse kinds of green energy projects in the country. “These will have multiplier effect on the growth and competitiveness of the manufacturing sector in Nigeria,” Ahmed added. The organisation listed the benefits of the project to include access to alternative energy, reduction in energy savings, reduction in negative environmental impact in terms of carbon emission, reduction in cost of production and improved competitiveness. The opportunity to have access to finance through a project of this nature will scale up investments in energy efficiency, renewable energy and deepen the energy mix in the country, the group said. Saleh Mamman, minister of power who was represented by a director in the
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ministry, commended AFD and the European Union Infrastructure Trust Fund (EU-ITF) for the initiative and stressed that financing had been a knotty key issue in the development of the renewable energy sector in the country. It was quite exciting when the donors settled on MAN and Winrock as anchors of the programme as it will go a long way to improve the performance of the Federal Government in fulfilling its obligations under Sustainable Development Goals 7 and 13, which speaks to improved energy access and reducing climate change impacts, the minister said. Through this grant, the SUNREF Nigeria programme will provide technical assistance to MAN, partner banks, and companies in Nigeria towards the development of energy efficiency (EE) and renewable energy (RE) projects. In Nigeria where access to energy is far from universal, limited energy security and rising energy prices will likely continue to challenge the growth of Nigerian businesses in the near future.
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BUSINESS DAY
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NEWS
NNPC contributes 2,421mw to national grid on daily basis in July …records ₦20.36bn trading surplus OLUSOLA BELLO & HARRISON EDEH
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he Nigerian state oil firm, Nigerian National Petroleum Corporation (NNPC) sustained daily equivalent of 2,421MW of electricity on the national grid as its consistently supplied 707mmscfd of natural gas to gas power plants in July, 2020. The corporation recorded an increased trading surplus of ₦20.36 billion in July 2020 compared to the ₦2.12 billion surplus in June 2020 in its operations. Kennie Obateru, group general manager, group public affairs division of the corporation, in a release in Abuja, explained that details of the figures captured in the July 2020 NNPC Monthly Financial and Operations Report (MFOR) indicated that the 858 percent overall up swell in performance was largely due to the 178 percent rise in the surplus posted by the Nigerian Petroleum Development Company (NPDC), NNPC’s flagship upstream en-
tity. The release stated that the NPDC’s impressive result was bolstered by the continuous improvement in global crude oil demand for the third consecutive month. Similarly, the report said the corporation’s fortune was further enhanced by the 739 percent increased profit posted by the Integrated Data Services Limited (IDSL) and a 51 percent growth in performance by Duke Oil Incorporated, both companies of NNPC. Returns from NNPC Retail Limited and Nigerian Gas Marketing Company (NGMC) during the period under review also grew by 28 percent and 24 percent respectively, owing to increased sales and improved debt collection. In the gas sector, gas production in July 2020 increased by 2.19 percent at 236.34 billion cubic feet (BCF) compared to output in June 2020; translating to an average daily production of 7,623.98 million standard cubic feet of gas per day (mmscfd). Likewise, the daily average natural gas supply to gas power plants stood at 707mmscfd, equivalent to
power generation of 2,421MW. For the period July 2019 to July 2020, 3,079.64BCF of gas was produced, representing an average daily production of 7,812.11mmscfd during the period. Period-to-date production from Joint Ventures (JVs), Production Sharing Contracts (PSCs) and NPDC contributed about 70.88 percent, 20.37 per cent and 8.75 percent respectively to the total national gas production. In the downstream sector, to ensure continuous stability in Premium Motor Spirit (PMS) supply and effective distribution across the country, 1.02 billion litres of PMS translating to 32.95mn liters/day were supplied for the month. The July NNPC MFOR stated that the corporation has continued to diligently monitor the daily stock of PMS to achieve smooth distribution of petroleum products and zero fuel queue across the nation. The report noted that during the period under review, 36 pipeline points were vandalised, representing about 9 percent increase from the 33 points recorded in June 2020.
NIRC calls for better company accounts to attract investors KELECHI EWUZIE
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he Nigerian Integrated Reporting Committee (NIRC) has called for better company accounts to attract foreign and Nigerian investors. Chairman of the committee, Innocent Okwuosa, made the call during the committee’s recent programme organised to respond to International Integrated Reporting Council (IIRC) and its framework’s consultation. According to Okwuosa, a better company accounts report does not only address financial performance but also addresses social and environmental performance, which speaks directly to company’s sustainability and should be
embraced by listed companies in Nigeria. Integrated reporting has been made mandatory by Johannesburg Stock Exchange (JSE) and every company listed on the JSE is expected to produce an annual report in form of integrated report, Okwuosa disclosed. This singular action of the JSE has placed South Africa among countries with the best corporate annual reports, he said, but called on the Securities and Exchange Commission (SEC) and the Nigerian Stock Exchange (NSE) to follow the footsteps of the JSE. It is generally agreed that investors invest in companies where their accounts are perceived more transparent, since such transparency helps bridge
information asymmetry in the capital market, he said. When questioned on the sufficiency of the International Financial Reporting Standards (IFRS) adopted by Nigeria to attract foreign investors, he noted that the adoption of IFRS was in the right direction but more needed to be done, pointing out that South Africa even adopted IFRS before Nigeria but, in addition, progressed to integrated reporting. The establishment of the NIRC was carried out by the Institute of Chartered Accountants of Nigeria in 2018. It was formed to advocate for the adoption of integrated reporting in Nigeria, aimed at attracting foreign direct investment and strengthening the capital market.
UNILAG crisis: Visitation panel submits report to FG …as Babalakin resigns
MARK MAYAH, KELECHI EWUZIE & GODSGIFT ONYEDINEFI
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he special visitation panel set up by the Federal Government to investigate the management crisis rocking the University of Lagos (UNILAG), has submitted the report of its findings. This is as the suspended chairman of the governing council of the university, Wale Babalakin has resigned from his position. His resignation was confirmed on Thursday by his media aide, Mikail Mumuni. BusinessDay gathered that his resignation was a pre-emptive action taken to forestall the call for him to be sacked from the council. Though the government is yet to officially come out with its decisions
on the panel’s report, it was learnt that both Babalakin and the embattled vice-chancellor, Toyin Ogundipe, may not come back to the office. The minister of education, Adamu Adamu, received the report on behalf of the Federal Government in Abuja on Thursday. Adamu said the recommendations of the panel would be thoroughly scrutinised with the aim of full implementation. Shortly before presenting the report to the minister, the chairman of the panel, Tukur Sa’ad expressed optimism that the report of the panel would bring an end to the crisis that has festered in the university over the last one year. The submission comes three weeks after the Federal Government inaugurated the panel to resolve the lingering www.businessday.ng
crisis facing the institution. While setting up the panel on August 26, Adamu warned members against interfering in the activities of the university management. He encouraged the stakeholders in the university to fully cooperate with the panel and to allow it to work unhindered. “Councils are to lay down policies while managements are to implement them, but over the past one year, the ministry has been inundated with complaints and correspondences from the management and the governing council of the University of Lagos as well as the National Assembly, on the lingering governance issues in the institution, including allegations of financial infractions and breach of responsibilities,” he said. https://www.facebook.com/businessdayng
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Friday 18 September 2020
BUSINESS DAY
INSIGHT
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Appraising Federal Ministry of Water Resources under Suleiman H. Adamu
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he attention of the Information Unit of Federal Ministry of Water Resources has been drawn to a scorecard evaluation on the work of Engr. Suleiman Adamu FNSE, FAEng who is the Honourable Minister following his reappointment by President Buhari in August 2019 by Premium Times, an online News Medium. In its online publication on the 16th of September, 2020, the news medium scored the Ministry under Adamu as underperforming, stating that the Ministry had been focusing more on advocacy visits to states across the country to campaign against open defecation in the last one year. The narrative opined that it is difficult to point out any achievement by the Ministry in the last one year. The report equally maintained that the Ministry failed because it did not provide potable water for Nigerians. This evaluation is very wrong and appears to be as a result of a poorly researched work in view of the myriad of accomplishments under the dexterous watch of Suleiman Adamu. The Minister who sees Water as having assumed Human right dimension and very important to life had maintained that the relevance of water to Nigeria’s national development is very pivotal to population growth, urbanization and increased efforts at agriculture and industrial development. This relevance he said has increasingly brought to fore very key issues of our existence, thus occasioning the need for increased access to water for Nigerians. Suffice it to note that Water Resources is on the concurrent list and the specific role of the Ministry is policy, administration and regulation of the Water Resources development and Management. “The Water Sector is a pillar for food security, job creation, and water supply, sanitation and hydropower generation” Adamu had said at his most recent Ministerial Press Briefing in August 2020. Achievements in the last 12 months The Minister’s desire for a well repositioned sector in the last one year is borne out of the Next Level Agenda’ of President Muhammadu Buhari focusing on the three cardinal issues of economic diversification, social inclusiveness and security which are succinctly aligned with the vision, mission and mandate of the Ministry. Furthermore, the activities of the Ministry under the leadership of Adamu is guided by three
major strongholds which are The National Water Resources Master plan (2015 – 2030); United Nations Sustainable Development Goals; and the Water Sector Roadmap (2016 – 2030). The Ministry fully implemented the WASH Action Programme in the last 12 months where 34 water supply projects have been completed, 159 rural water supply schemes in the North East, IDP camps and some Federal institutions and establishments were constructed, 895 water supply schemes in 10 States of Imo, Katsina, Jigawa, Plateau, Zamfara, Sokoto, Ondo, Osun, Delta and Bauchi are under construction, rehabilitation and upgrade leading to additional 2.4 million Nigerians gaining access to Water Supply in the last 12 months. The River Basin Development Authorities (RBDAs) have now been strategically placed to facilitate National Food Security and support employment opportunities.The RBDAs are being constantly revitalized to deliver on their mandate, to the extent that core and relevant Professionals are appointed to the headship of the Agencies. For optimal utilization of River Basin Development Agency land and irrigation facilities and to support diversification of the economy, guarantee food security and job creation for Nigerians, the Ministry is expanding hectares for irrigation farming as follows: • • • • • •
Ejule-Ojebe (50 ha); Sector 1 of Gari Irrigation Project (248ha); Bakalori Irrigation Scheme (4,825ha); Kano River Irrigation Scheme (1,600ha); Hadejia Valley Irrigation Scheme (2,250ha); Rehabilitation of DukuLade Irrigation Project
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(800h). • Additional 2000 Ha has been leased out to com mercial farmers bringing the total to 55,000 Ha from 2016 to date.
The Songhai Model, an integrated Agricultural Practice introduced to boost Agricultural production and achieve integrated rural development has been replicated in five RBDAs and till date, 253 farmlands have been leased to the private sector for commercial farming, out of which 181 are fully utilized. Also, the process of partial commercialization of four pilot RBDAs which includes OgunOsun, Niger-Delta, Upper Niger and Sokoto-Rima are underway. Similarly, during the year under review, the Ministry’s efforts on improving Sanitation in the country led to the Flag-off of the “Clean Nigeria: Use The Toilet” Campaign in November, 2019 towards making Nigeria Open Defecation Free by 2025. Likewise, the promulgation of the Executive Order No. 009 in November 2019 by President Muhammadu Buhari to end Open Defecation by 2025 has yielded Certification of additional 14 LGAs being Open Defecation Free (ODF) in the last 12 months while 10 LGAs are awaiting ODF validation. The Partnership for Expanded Water Supply, Sanitation and Hygiene (PEWASH) is another flag-ship initiative of this administration where the Federal Government and the States come in partnership to provide water supply in the country, this initiative has led 22 State Governments to endorse the PEWASH protocols while 11 more States have recently signed up bringing the total to 33 states. In line with Mr. President’s desire to lift 100 million Nigerians out of poverty in the next 10 years, the Ministry has ensured that both direct and indirect jobs are created
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Suleiman Hussein Adamu
in the Implementation of its projects and programmes. A total of 57,261 direct jobs and 111,588 indirect jobs have been created through the various dam, irrigation and water supply projects completed within the reporting period. To combat the Covid-19 pandemic, which has impacted on all aspects of our lives causing untold hardship and stress to the populace, potable water, sanitation and hygiene are critical to the eradication of the virus, the Ministry has taken strategic steps to help fight the pandemic even with budgetary constraints. The Ministry is rehabilitating 185 Water Supply Projects in the 36 States of the Federation and FCT, constructing 185 Solar Powered Water Supply Projects (5 per State and FCT), constructing 370 Public Sanitation Facilities (10 per State and FCT), supporting State Water Agencies for their operations to ensure uninterrupted Water Supply, suppling 370 Contactless Hand washing Facilities with Soap and Sanitizers (10 per State and FCT) and engaging 77,400 Youth Volunteers for Handwashing and Open Defecation Free Campaigns. The determination and unrelenting quest to improve access to potable water, reduce the incidence of water borne diseases, improve sanitation facilities, enhance food security through irrigation agriculture and the implementation of water resources @Businessdayng
projects and programmes according to international best practices has been Engr. Adamu’s cardinal goal since he assumed office as Minister of Water Resources. The Ministry also is in the process of commencing a Management Master Plan Study for Rivers Niger and Benue. The project is designed to improve navigation, flood control, agriculture for enhanced food production and minimize cost of dredging the river channels. It will also engender prosperity accruable from fresh water supply and other economic activities. Although this is a long-term project, the Ministry has kick-started the process of ensuring its implementation. The Agencies and Parastatals under the Ministry include the Nigeria Hydrological Services Agency, Nigeria Integrated Water Resources Management Commission, National Water Resources Institute and the 12 River Basin Development Agencies (RBDAs). These agencies and parastatals are also vehicles through which the Ministry contributes to the socioeconomic activities of the nation: However, even though a lot has been said about the inadequacy of water supply in the States. it is not the responsibility of the Federal Government to provide Water in households or industrial use. The Federal Government however strategically works to provide support to various States on needs basis, up to 30% for urban
and 50% for rural water supply schemes respectively. It is as a result of the lack of investments of the state and local governments in providing potable water to the people that the Ministry under the leadership of the of the Hon Minister introduced the PEWASH programme in 2016 and the National WASH Action Plan which led to the formal declaration of a State Emergency in the Water, Sanitation and Hygiene Sector by President Buhari in November, 2018. It is noteworthy that upon assumption of duty in 2015, the Hon Minister embarked upon Project Prioritization and Completion. A total of 116 Nos on-going and abandoned contracts/projects were inherited in 2015, made up of: Irrigation & Drainage +i. - 38Nos Dams & Reservoir ii. - 37Nos iii. Water Supply - 41Nos Many of the projects were either abandoned or comatose because they required review of scope/cost and/ or lacked consistent funding to complete. Outstanding liabilities on these contracts stood at N 88,848,112,579.77 w ith total contractual commitment to completion projected at N 264,990,081,982.53. 3.2.2 Early in 2016, a Technical Audit was conducted, and all the 116 uncompleted and abandoned projects were
categorized into high, medium and low priorities (Summary of Technical Audit Report is available in the Ministry) Resources were committed towards completing and commissioning some of the high and medium priority projects between 2017-2020. Projects that were ascertained as non-viable by the Technical Audit have been cancelled or determined. So far, the following eleven (11) projects have been completed and commissioned: • Central Ogbia Regional Water Project, Bayelsa State • Northern Ishan Regional Water Supply Project, Edo State • Rehabilitation of Ojirami Dam Water Supply Project, Edo State • Sabke Water Supply Pro ject, Katsina State • Dutsi Water Supply Proj ect, Katsina State • Mashi Water Supply Proj ect, Katsina State • Takum Water Supply Proj ect, Taraba State • Sabke Irrigation Project, Katsina State • Rehabilitation of Kargo Dam, Jaji, Kaduna State • Ekeremor Water Supply Project, Bayelsa, State. • Mangu Water Supply Pro ject, Plateau State • Federal University of Ag riculture, Markudi Water Supply Project, Benue State The following five (5) projects have also been completed and are ready for commissioning. 1. Kashimbila Dam, Taraba State Shagari Irrigation Project, 2. Sokoto State 3. Galma Dam, Kaduna State. 4. Ahmadu Bello University Water Supply Project, Kaduna State. 3.3.4 Many more ongoing water supply, dam and Irrigation projects are scheduled to be completed between now and end of 2020, including the following:
Water Supply Projects Inyishi Water Supply Pro i. ject, Imo State Zobe Water Supply Pro ii. ject, Katsina State iii. Ivo Water Project, Enugu State iv. Rehabilitation and Reticu lation of Fugar Water Works, Edo State Dukku Regional Water v. Supply Project, Gombe State www.businessday.ng
vi. vii. viii.
Ilesha Water Supply Pro ject, Osun State Kazaure Water Supply Project, Jigawa State Otor-Iyede Water Supply Project, Delta State
Dam & Irrigation Projects i. Middle Ogun Irrigation Project, Oyo State ii. Middle Rima Valley Irriga tion Project, Sokoto State iii. Gari Irrigation Project, Kano/Jigawa States iv. Kontagora Auna Dam Project, Niger State v. Bagwai Irrigation Project, Kano State vi. Tada Shonga Irrigation Project, Kwara State vii. Adani Rice Irrigation Pro ject, Anambra State viii. Ekuku Dam Project, Kogi State ix. Lower Anambra Irrigation Project, Anambra State x. Ile – Ife Dam Project, Osun State xi. Otukpo Multipurpose Dam Project, Benue State. Irrigation 3.3.1 Nigeria has about 3.14 million Ha of land suitable for irrigation. However, only 128,097Ha has been developed as at 2015 and about 50,000 Ha of the developed area was lost to failed infrastructure and poor operations and maintenance. The current annual water demand for irrigation in wet and dry seasons including Fadama lands is about 1.926 BCM which translates to about 0.7% of our national internally generated potential. This indicates how much the country has been under utilizing its irrigation potentials. In order to aid diversification of the economy, guarantee food
‘ In order to aid
diversification of the economy, guarantee food security and create employment a National Irrigation Development Programme was initiated in 2016 as part of the Water Sector Road map
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Kenechukwu Offie
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security and create employment a National Irrigation Development Programme was initiated in 2016 as part of the Water Sector Road map. It is aimed to accomplish the following: i. Establish additional 100,000Ha of irrigated farmland by 2020 and achieve a total of 500,000Ha by 2030. ii. An additional 1,000,000Ha of irrigable land to be developed by the private sector and State Governments by 2030. Current efforts will en able delivery of 41,000Ha by end of 2019. Details of the status of ongoing Irrigation Projects is contained in the Department of Irrigation and Drainage Report, Volume 2. 3.3.3 The World Bank is supporting the implementation of Transforming Irrigation Management in Nigeria Project (TRIMING) with a credit facility of US$495million. The Project involves rehabilitation/expansion of about 42,000Ha of irrigation land under the first phase, to be completed by 2022, as follows: Bokolori Irrigation Pro I. ject (Work commenced in 2017) - 13,500 Ha II. Kano River Irrigation Project (Contractor com menced --- in early 2019) - 14,400 Ha III. Hadejia Valley Irrigation Project, Construction commenced following the Flag off by President Muhammadu Buhari on 14th May, 2018) – 6,000 Ha IV. Dadin Kowa Irrigation Project (Procurement @Businessdayng
V.
process has commenced) – 3,000 Ha Middle Rima Irrigation Project (Studies nearing completion) – 5,000 Ha
It is worthy of note to reiterate that the National Water Resources Bill presently at the NASS is not a new law; rather it is an amalgamation of Water Resources Laws that have been in existence as enshrined in LFN 1`2004. These Laws are: a. b. c.
Water Resources Act, Cap W2 LFN 2004, the River Basin Development Authority Act, Cap R9 LFN 2004, the Nigeria Hydrological Services Agency (Estab lishment) Act, Cap N1100A.LFN, 2004 and National Water Resources Institute Act, Cap N83 LFN 2004.
These Laws are being re- enacted with necessary modifications in the new Bill to actualize current global trends and best practices in Integrated Water Resources Management (IWRM). The overall objective is geared towards efficient management of the Water Resources Sector for the economic development of Nigeria and the well-being of its citizens. In conclusion, I would urge Nigerians to join hands with FG and work together to achieve National growth for the benefit of every Nigerian. The Ministry is poised to consolidate on past gains to set the water sector on the path of enviable growth and development in line with global best practices. Kenechukwu Offie is Director of Information, FMWR.
Friday 18 September 2020
comment Why honesty is still a thing Tales from the main road
Eugenia Abu
I
have met grown men who are economical with the truth and when I find out, it pretty much dumbs them down in the area of respect and all other issues of integrity concerning them is gone out of the window. I have met grown women who never open their mouths without telling an untruth. It used to give me many unsolved puzzles because I was brought up in the belief that the truth will always set you free. No human being is perfect but it’s always better to aspire, to try, to do your best. Many years ago, I made the acquaintance of a young woman whose stock in trade was serial lying and recreating herself. It was very difficult to believe anything she said. A quick check will reveal an untruth. To keep up with her compulsive lying, one had to permanently have a string of checking tools. She on the other hand was totally unfazed by her action and would sacrifice anything on her way. One day she turned up in a sleek Mercedes, near brand new and declared it her car. In my heart, I knew she was lying but I had no way of ascertaining. She drove this car for nearly three months and it suddenly disappeared. Upon my hard nose investigation,
I found that she was scamming everyone except me with this new car thing. She was one of the smoothest talkers I know and was always dressed to the nines. The first rule scammers tell me that allows them get away with murder is that they first of all earn your confidence. They study their victim’s habits and routines, likes and dislikes and then they strike. It was in the heady days of the early eighties in Lagos and politics was booming when Ms two goody shoes arrived on the scene in Lagos carrying a bag of lies. She seemed other worldly, too good to be true and everybody’s friend. She seemed to know every influential politician and was a natural flirt. There just was something that did not add up for me. In the middle of all of this scamming and smooth talking she turned up one day with this brandnew car and a new surname. She told anyone who cared to listen that she had married a prominent politician in” a private ceremony”. She could not understand why I did not take her seriously. She looked like a glass silhouette, I could see right through her. Most people could not. The top reasons why scammers get away with it is that they gain our confidence and more often than not we idolise their lives and wish we could be like them. Confident, smooth talking, a cognoscenti of some sorts. And even when we suspect stuff, we excuse them time and again and they grow bigger in their scams. They are nice or they did not really mean it. We wear blinkers for them and cheer them on. In the end, I found that Ms Mercedes was using the politician’s name to garner favours and being adept at influence peddling managed to make a fortune with his name in tow. I found
out in addition that she had been his bed mate but never married her. It was convenient for them both. Friends with benefits. As for the car, she borrowed it off another friend who was generous to let her have it alternate days until her phantom “Jeep” was repaired. There was no such jeep and when the time for her to return the Mercedes was up, she claimed it had been stolen at a car park in a supermarket on the Lagos mainland. As my children would say when a tale is too good to be true. “Lie of the devil” It was all too much for me and I kept a safe distance from her. Drama, lies, stories. There are too many people in the world who are like this ex acquaintance of mine. All running around scamming innocent citizens for the lucre that this would give them in order to live large. But honesty remains the fulcrum of any person, any group of people and any nation’s development. Community clashes would come up and we will all be ogling about who did what, what the problem is and then we wonder who is telling the truth. It is the season of lies and anything that is built on dishonesty will always crumble and fall apart when the truth is told. As a nation turning sixty, we need to interrogate ourselves. How are we lighting the national torch? From politicians to lecturers, from students to civil servants, and Pastors and Imams, have we been honest with Nigeria? Where are we hurting the nation? Or like Ms two goody shoes we are lying to ourselves and to our nation. A lot of times people without integrity will sacrifice anything to get ahead and have no shame. We must all commit to this honesty thing. It’s the only way and we must teach our children that honesty
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Nigeria needs a dose of honest men and women in all the sectors of the nation to pull us through. Now we are often a bag of dishonesty in small and big things. And it’s a shame because Nigeria is the nation to beat on the continent
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meal (correct). Instructively, it is crucial to note that the first-person pronoun, ‘I’, is an exception to this rule, in order to avoid overgeneralisation. Just as the pronoun enjoys the honour of being rendered in upper case, regardless of its position in a sentence, it also attracts plural verbs for the most part. 3. I teaches English every day (incorrect). I teach (plural verb) English every day (correct). 4. I have (plural verb) been to Disneyland several times (correct). In spite of these illustrations, it is imperative to note that we say: I am in love with these English lessons (correct). I are (plural verb) in love with these English lessons (incorrect). Amazingly, too, when two or more nouns are used to refer to a single person or entity, the choice of a singular verb is mandatory for correctness’ sake. The onus is, however, on the general reader to ensure that in such a grammatical context, only the first noun is pre-modified by an article and/or adjectives. 5. The author of Grammar in Discourse Form and BusinessDay columnist like me (incorrect). The author of Grammar in Discourse Form and BusinessDay columnist (one individual) likes me (correct). The author of Grammar in Discourse Form and the BusinessDay columnist (two individuals) like me (correct). 6. The steel magnate and philanthropist travel to the UAE every summer (incorrect). The steel magnate and philanthropist travels to the UAE every summer (correct). The steel magnate and the philanthropist www.businessday.ng
travel to the UAE every summer (correct). Notably, I would rather you kept in mind that the inclusion of the article, ‘the’, before the second entities in the last sentences of contexts five and six, make them stand as different persons from the first entities; hence, the correctness of the plural verb ‘like’ and ‘travel’. What is more, conjunctions or prepositions such as ‘but’, ‘with’, ‘together with’, ‘including’, ‘like’, ‘as well as’, ‘in company/association/collaboration/conjunction with, ‘in the company of’, ‘alongside’ and ‘in addition to’ are deserving of grammatical clarification. When these words or phrases combine nouns, the first noun that is mentioned determines the verb, as instanced below: 7. LASU, in association with other southwest universities, organise the debate yearly (incorrect). LASU, in association with other south-west universities, organises the debate yearly (correct). 8. Kunle, with his friends, is here (correct). 9. Idris, in company with his family, have arrived in Japan (incorrect). Idris, in company with his family, has arrived in Japan (correct). 10. Two men, alongside their friends, was conspicuously absent at the party (incorrect). Two men, alongside their friends, were conspicuously absent at the party (correct). 11. Binge drinking, like philandering, is James’ Achilles’ heel (correct). 12. The donkeys, including the cow, have yet to be examined by the veterinarian (correct). Moreover, when correlative conjunctions like ‘either...or’ and ‘neither...nor’ are infused into statements, the rule of proximity is activated. As a consequence, the verb that will be deployed is
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pays. Dishonesty and corruption go hand in hand because when you lie, you must cover it with the next lie and it is unending. I leave you with the story of a supposed friend of mine who worked very closely with a top government official. I had gone to complain to him about certain unfair treatment meted out to me in the workplace. He promised to tell his boss on my behalf as I could not see her on the day I visited. Fast forward two months later, I asked if he had done the needful. He looked me straight in the eye and told me he did not have that conversation with me. It was a defining moment. Really? We had spoken for two hours and he showed uncommon empathy. Now because it was no longer convenient for me, he suffered amnesia. I was more shocked than I was annoyed. These things destroy trust. Of course, I will never be able to trust him. Nigeria needs a dose of honest men and women in all the sectors of the nation to pull us through. Now we are often a bag of dishonesty in small and big things. And it’s a shame because Nigeria is the nation to beat on the continent. And there are good men and women whose voices are being drowned. if only we understood that honesty is a thing and it fixes all things. When you are dishonest, you are not being smart as many people think today. Dishonesty is a baggage, a scam, a place that destroys all things good and plentiful. Let us carry our honesty flag. Each and every one. Eugenia Abu is a broadcaster, writer, trainer, brand and multimedia strategy expert and media consultant. Email: abu_eugenia@yahoo.com Phone number: 08033109820
The Actor and the Action: Noun-Verb agreement in English espite its spontaneity and naturalness, language is rule-governed. By implication, anyone who desires to attain communicative competence-cumfinesse in any language must strive towards mastery of the essential rules of sentence formation. The grammatical relationship that determines how naming words are combined with action words, which is technically called CONCORD, can be labelled as absolutely fundamental to sentence formation in English. Accordingly, let us get it demystified! First up, it is of paramount importance to know that when a noun admits the plural marker, ‘s’, the verb will not and vice versa. This is technically explained as a singular subject attracting a singular verb and a plural subject admitting a plural verb. This is because a verb is designated singular when it attracts an ‘s’, while a noun is often considered as singular when it is bereft of the ‘s’ marker. This is expressly exemplified in the accompanying sentence structures: 1. GAB (singular subject) likes (singular verb) English grammar. GAB and Femi (plural subject) like (plural verb) English grammar. The exemplification above is the hallmark of grammatical competence in English. Fascinatingly, though, this week’s treatise will focus on some exceptions to this principal rule of usage. For starters, a number of nouns which function in a complementary relationship will attract a singular verb, notwithstanding the fact that they are more than one. The rationale of the foregoing is that they are regarded in unison, as illustrated below: 2. Rice, beans, plantain and egg are my favourite meal (incorrect). Rice, beans, plantain and egg is my favourite
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The Gift of Gab
Ganiu Bamgbose
dependent upon the subject that is close to it. 13. Either the students or their teacher are responsible (incorrect). Either the students or their teacher is responsible (correct). 14. Neither you nor I are ready for the task at hand (incorrect). Neither you nor I am ready for the task at hand (correct). 15. Either the girl or boys clean the whiteboard every morning (correct). Last but not least, when the indefinite pronouns ‘every’ and ‘each’ are used with two singular nouns that are connected by ‘and’, a singular verb succeeds them. 16. Every boy and girl pays the tuition fees before the end of a term (correct). 17. Each chair and table is thoroughly cleaned after the service (correct). Against this backdrop, I admonish the readership to keep striving to become a better communicator. Dr Bamgbose (Dr GAB) has a PhD in English and lectures at the Pan-Atlantic University, Lagos. He is a social commentator who writes on different issues of national concern and the author of daily online English lessons titled “English for Today” with hundreds of lessons available on his website www.englishdietng.com.
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Friday 18 September 2020
BUSINESS DAY
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Building economic resilience in a time of adversity THE NEW WEALTH OF NATIONS
Obadiah Mailafia
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lack swans are rare, unpredictable, large-impact occurrences. The theory of complexity provides a good framework for understanding black swans and for learning how better to cope with uncertainty under the dynamics of open, complex adaptive systems. The paradigm of Complex Adaptive Systems (CAS) draws insights from multiple disciplines, ranging from evolutionary biology to quantum physics, computer science and Nobel laureate Ilya Prigogine’s dissipative structures in non-equilibrium thermodynamics. It marks a departure from the mechanical worldview of Enlightenment science associated with figures such as Isaac Newton, Galileo, Descartes Johannes Kepler and Francis Bacon. The Institute of New Economic Thinking at Oxford and a study circle at the Bank of England led by Chief Economist Andrew Haldane, have been researching the British economy and financial system from the perspective of complexity theory. As a result, concepts such as tipping points, networks, contagion, feedback, and resilience are becoming part of the lexicon of financial and regulatory management systems. It seems clearer by the day that the neoclassical open economy macroeconomics paradigm that has dominated economic thinking and policy over the last couple of decades has been found abjectly wanting. It has turned out to be a sophisticated form of quackery. Neoclassical economics has certainly failed in its predictive capacity to provide a basis for action under conditions of extreme uncertainty. During a visit to the London School of Economics in November 2008, Her Royal Majesty Queen Elizabeth II asked the professors about the financial crisis:
“Why did nobody notice it?” She was not a disinterested observer, having lost £25 million from her estimated fortune of £320 million. The dons were bewildered and embarrassed. No one had an immediate answer. The novel coronavirus pandemic has exposed the fragility and vulnerability of national economies and national health systems. Within the space of a fortnight, nearly 20 million Americans have registered for unemployment. Thousands of firms have sued for bankruptcy. Global airlines have been grounded while industrial supply chains have been ruptured. Stock markets have lost trillions of dollars. Parallels are being drawn with the Wall Street Crash of 1929, the great financial Tsunami that led to the Great Depression. Kristalina Georgieva, a Bulgarian national and Managing Director of the IMF, estimates that all but a few of the 189 member states of the Fund will experience falling standards of living in 2020. A study prepared by Andy Sumner, Professor of International Development at Kings College London, estimates that half a billion people in the developing world could be pushed back into poverty. We understand that the IMF/World Bank Spring Meetings scheduled to start this week will be held through virtual teleconferencing. Having attended several of those jamborees myself, I know this is a big come-down. From my experience, many of the most important deals are made in the corridors and in the coffee rooms. This, alas, will no longer be possible. From what we know from complexity theory, black swans are here to stay. What this calls for is the need to build up capacity for resilience, by which is meant the policy-induced capacity of an economy to overcome exogenous shocks. Nassim Nicholas Taleb has developed the concept of “antifragile” which underpins the capacity of some systems to actually profit from fragility. Some adversities can make peoples and institutions even more resilient than ever. From the lessons of the current COVID-19 pandemic, economic resilience remains a big challenge for rich as well as poor countries. Who would have imagined that America, Britain, Italy and Spain would have fared so badly as they have under the current crisis? Why
has China – the engine and locomotive of world industrial production – made such a remarkable come back? Why are they buying distressed assets all over the world? What are the lessons in terms of fostering economic resilience? First, I believe that having a diversified economy is crucial. For rentier petrodollar states such as Nigeria, the pandemic has created a nightmare scenario. For better or worse, our fortunes are tied to the demand and supply of oil, the vagaries of the dollar and the shenanigans of the cruel sheikhdoms of Arabia. Whatever happens in the coming decade, it is evident that the hydrocarbon industrial civilization that has sustained the world economy for more than a century is on its way out. We must diversify or perish! Secondly, it is clear that countries with robust fiscal buffers will tend to be more resilient. The indicators of fiscal buffers include national savings, external reserves and size of sovereign wealth funds. The UAE sovereign fund is worth $1.298 trillion while that of Singapore is worth $764 billion. Nigeria’s external reserves have fallen to $34 while our sovereign fund is worth a mere $2.9 billion. Our Excess Crude Account, which peaked at an impressive $18 billion, has just $70 million left in it. Thirdly, fiscal discipline is imperative. Spendthrift nations who borrow to throw palm wine parties like Unoka in Achebe’s Things Fall Apart, will sooner or later become beggarly nations. Prudence requires that you exercise utmost discipline in public expenditure, with robust controls for how public monies are spent. When you exercise fiscal discipline, difficult times will find you better prepared to weather the storms. Fourth, most resilient countries are also those countries that have got the fundamentals right – ensuring that the overall macroeconomy is moving at an even keel, without unnecessary bottlenecks, structural imbalances and distortions that hamper long-term sustainable growth. This requires mastering inflation, price stability, the current account balance, the exchange rate, the national debt and financial system stability. Fifth, we need to nurture improvements in the quality of policymaking. The capacity of leaders to design effective policies is crucial, aided by a bureaucracy that is highly professionalised and merit-
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I do not put my hope in government. My hope is in the indomitable courage and generosity of the great Nigerian people. We shall not only overcome; we shall prevail!
based, with traditions of excellence and capacity to deliver. Forward-thinking and long-range planning as advocated by Israeli policy scientist Yehezkel Dror is highly advisable. Dror advocates strengthening “the Central Minds of Government” as a crucial ingredient of success under conditions of “acute adversity”. Inbuilt in this system is also the requirement of creating advance warning indicators and early warning systems that allow leaders to take pre-emptive and precautionary actions. Sixth, there is the imperative of collective preparedness. This requires development of human capital, enhancement of technological capability and creation of elite consensus while expanding the possibility of collective welfare. Times of adversity require communities to fall back on their reservoir of social capital, which is the glue that holds people together in bonds of organic solidarity. Creating this sense of belonging and building hope is vital to overcoming adversity. Finally, leadership is vital. It is times of adversity that provide opportunity for the best leaders to shine. Leaders inspire and lift up the citizens. They hold up the magic lantern that enables people to see beyond the darkness of the moment into a future of hope. It is unfortunate that we in Nigeria are seeing only darkness at the top. When the national assembly demanded recently for a proper account of how N2 trillion off the so-called “conditional social transfers” were dispersed, the Office of the Accountant-General went up in flames a few days later. We are not fooled. This is not an act of God; it is an act of brazen arson. When the defunct Shagari administration was forced to investigate allegations of widespread corruption, flames similarly engulfed buildings such as NITEL and Ministry of External Affairs. It is a red alert on our democracy. I do not put my hope in government. My hope is in the indomitable courage and generosity of the great Nigerian people. We shall not only overcome; we shall prevail! 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)
How Lagos lockdown made work-from-home normal
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here are many benefits to working physically in the office. A few reasons include stable electricity, internet access and office gist during breaks. In Lagos, these perks lure workers to the office daily, even if it takes hours to get to work. But the experience from the lockdown forced a rethink. The lockdown made companies experiment with remote work. Lessons from this experience from Lagos-based managers and its consequences forms the bulk of a recent survey, Remote work: Lessons from the lockdown, conducted by Danne Institute of Research. The research finds that working from home is no longer strange to companies and society. They are accepting this new norm gradually; but there are challenges. In a society that prizes social gatherings, several respondents said they missed the networking, bonding and human interactions that come with working in the office. Corporate and cultural barriers overcome In Nigeria the cultural belief is that work is where one goes, not what one does. The research notes that, “The lockdown showed that work can be done from home and that it is OK to work from home. It challenged the cultural belief that if you have a job, you go to the office to do that job.” The sway of this belief is so strong that those
who occasionally worked from home have to explain to their spouses why they were not at work and were considered a bad example to their children. The lockdown changed that widely held view. For most companies before the lockdown the norm was to be physically present in the office. Most distrusted working from home, and if they allowed it, it was the rare exception. Besides, everything necessary to work productively – electricity, internet service, communication equipment and software, tools, documents, support etc – is available in the office. A respondent said: “I see more of [a] cultural issue here. People believe that when you come to the office then the work is done.” Even more, supervising employees, to ensure they meet their targets, is easier when they are in the office. But not everyone can work from home. The survey finds that it’s easier for some staff, mainly managers, to work from home whereas frontline staff, factory floor workers etc, can’t. Others, non-managers, who find the office a haven, are likely to adapt slowly. During the lockdown many missed the “complete and comfortable workspace, uninterrupted air conditioning, ease of communication with co-workers, access to physical records that had to be left in the of-
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fice.” These are benefits they are unlikely to give up eagerly. It is likely that companies will try to stick to business as usual. They will argue that employees without personal mastery, adequate workspace and no distractions from the family can’t work from home. These factors, the survey finds, aren’t intractable. What companies did for their employees during the lockdown shows how the barriers to working from home can be overcome. It also highlights what to consider when adopting a work-from-home policy. Making work-from-home work: Trust, tools, rules and support With support from their organisation employees can work productively, whether physically or remotely. In addition to a policy and clearly defined objectives for each staff, organisations must trust, support and train their employees. Few companies with a work-from-home policy (or had a plan in place) were prepared for the pandemic. They provided laptops, internet subscriptions, a stipend for fuel and software for collaborating remotely. Apart from giving their staff tools, these organisations trained them to use the technologies and manage their time. To calm their employees
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worries, some paid salaries in advance, arranged for mental health advice and held online gettogethers on Fridays. They also set clear targets and used technology to monitor performance. While the support from the organisation made the novelty of working from home easier, challenges such as access to colleagues, ease of collaboration and social interaction, remained. For instance, a respondent said online collaboration tools made it “hard to feel people’s emotions etc. and this reduces empathy.” But working from home blurs the distinction between work and personal life. Supervisors called their subordinates frequently on weekends during the lockdown; work encroached into employees’ personal lives. Millennials in particular didn’t like this. For them the separation of work from personal life is important. They don’t want to be defined by their work life like their parents. The survey concludes that working from home is a novel experience, it will take time to understand the implications for companies, individuals and cities, and experiences in other cities in Nigeria likely differ from that of Lagos. This publication stemmed from a survey by Danne Institute of Research. Danne Institute for Research conducts studies on strengthening institutions, developing leaders & sustaining change in Africa.
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Friday 18 September 2020
BUSINESS DAY
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The cartoon of the dead monkey HumanAngle
Femi olugbile
(The United States of America is two months away from a crucial election. The election will decide if America will retrace its steps and reconnect with its defining objectives, or continue on the strange and sinister trajectory on which it has been launched by Donald J Trump. Henry Louis Gates, Harvard University professor and notable African American historian, has written, in trying to explain the phenomenon of Trump, that the presence of four good looking, well-educated and decent African Americans in the White House for a period of eight years had the effect of “freaking out” many white Americans, and that Donald Trump and his “base” are the products of that “freaking out”. The early signs of race hate rising to a level of socialised “insanity” were there, even while the Obamas were still on Pennsylvania Avenue. piece in an earlier version of this column, published in February 2 0 0 9 , i s re p ro d u c e d here. The events described, and the role of the Rupert Murdoch press, seen together with present happenings, may leave the reader with a sense of déjà vu.’) Just the other day, the New York
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Post carried a cartoon which had not just ugly, but even dangerous, overtones for Barack Obama, President of the United States of America. Some people were so incensed by the cartoon that they wanted to request the FCC, the regulatory body in charge of all broadcasting, to revoke the publishing licence of Newscorp, the company owned by Rupert Murdoch, publishers of the New York Post and owner of Fox News channel. Murdoch media are famous for their unabashed opposition to anything that runs counter to the “received” order of things, which is an America, and a world, controlled by white male persons, practising their virulent, unforgiving form of “Christianity”. In the course of his campaign to become the first African American President of America, Barack Obama encountered no stronger opposition than from the Rupert Murdoch media. Fox News fought him till their knuckles were bloodied. In the process, every rule of decent engagement in a democratic society was broken by them. Towards the end, when the Obama landslide was becoming inevitable, they became livid, frothing insanely at the mouth. But nothing they could muster could burst Obama’s bubble. A new reality had dawned. If anyone thought these sorts of people were just going to lie down and die, they were sadly mistaken. It is in the context of all this that the cartoon in the New York Post should be seen. It is appropriate here to paint the full picture of what the cartoon says. It shows an urban scene, and two policemen standing. One of
them has his gun drawn, and there is evidence that he has just fired it. Splayed out on the ground before them is the body of a dead monkey. The monkey has been shot dead by the policeman. In the caption, the policeman is saying “Now someone else will have to sign the Second Stimulus Bill”. This was just days after President Obama appended his signature to the First Stimulus Bill, designed to jump-start the American economy. It is difficult to understand the cartoon in any other way than the obvious. The monkey is the President of the United States. The white Policemen are the embodiment of “Law and Order”. The cartoon, in effect, is a denigration of Obama and his race, and an invitation to “law enforcement” to lynch the “uppity black man”. There have been vociferous denials all the way round. The paper has denied racist intent. The author of the cartoon has sworn to highest heaven that such was not his intention. The pattern, and the evidence, sadly, is that there is no mistake here. It is, at the least, an attempt by people who have lost the vote and feel temporarily off balance to reassert themselves, to tell themselves, and others who may be listening, that they are still in charge. It is, unfortunately, an argument that has held powerful, if obnoxious resonance for centuries. But the world has changed, things are not the same, and perhaps will never be the same again. Barack Obama is the leader of America, whether anybody likes it or not. Change has come, not only to those who desire change, but those who
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It is, unfortunately, an argument that has held powerful, if obnoxious resonance for centuries
Olugbile is a writer and psychiatrist. synthesiz@gmail.com
Narcissism and the death of leadership (3)
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s we continue our discussion on this critical subject, we will consider the rudiments of the narcissistic leader’s effective leadership approach in this article; those characteristics will be wholly absent with the narcissistic leader. Narcissistic leaders in managerial or supervisory roles are easier to weed out: all you must do is ask the people that they lead to get an accurate perspective of their leadership style. Since a leader’s job is primarily to influence people, all you need to do is measure their impact on the people they lead, those in the organisation who are directly related to them. These are the more likely people to get the work done, they are closer to reality, the business, and the clients. If these people can share their experiences about the narcissistic leader, which may be difficult, the closest indication you will get is that they are dominated by fear. Those led by a narcissist are always scared of the narcissist, intimidation, manipulation, and anger are their normal day to day experiences. It is pertinent to note that narcissists are typically very skillful at managing up; they’re often good at eye service. So those above them in the organisation’s leadership often regard them as compliant and pleasant and useful to their organisation. As it is almost impossible to build organisations with control groups, the narcissistic leader’s leader has no realistic means of directly assessing how much performance is left on the table due for those being led by the frightened, demoralised feeling of narcissism.
A thorough appraisal of leaders, specifically on their effect on the people they lead, is very likely to generate a substantial improvement in their effectiveness as leaders, and significantly impacting the organisation’s effectiveness as well. And if you don’t want to weed out narcissists, the essential and valuable leadership evaluation will, of course, do the job for you. A successful feedback loop would undoubtedly lead to an improvement in important learnable personal characteristics such as social and emotional maturity for the non-narcissists, maybe for those gingerly living on the autistic continuum.When we talk about effective leadership, I want to point out that it takes a tremendous amount of bravery for a “good” leader to be able even to discover and recognise the degree of instability discussed above. It then takes even more confrontational courage. Engaging narcissists can be frightening since most people can sense the frustration concealed just below the surface. It also takes courage to disengage people from an organisation. Moreover, if the corporate culture is conflictavoiding and most possibly packed with conflict-avoiding leaders, it is vulnerable to narcissistic infiltration and, ultimately, their infestation. Red flags can be overlooked, reduced, and rationalised in these types of organisations. How narcissists flourish in our organisations is when the leadership believes that the narcissists are an outstanding performer who delivers impressive results always, so we can’t weed them out of the organisa-
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The leadership factory with
tion. Further, a study found that narcissistic young adults are more likely to end up in supervisory jobs. Emily Grijalva, an expert in organisational behavior, says the study’s report is “suggesting that selfish, arrogant individuals are rewarded with more powerful organisational roles.” To support this view, Durvasula, a psychology professor at California State University, Los Angeles, says a narcissist can distract you with smartness and charisma. However, there is a lack of empathy and compassion beneath the mask, and a tendency for deception, making them hard to love as a romantic partner. No matter how much of an important figure, contributor, or top player you think the narcissist is, you can be sure to have a net detrimental impact on the organisation and avoiding their actions will not make it go away. For every unit of goodness that they add, they will subtract at least two from those around them, and probably much more. This is one-way narcissistic leaders shine: by puffing up when tearing down their peers or reports. Also, they often claim credit for the efforts of those they lead, while ignoring their contributions and achievements at the same time. The effort and contributions of the people doing the job do not need to be recognised as the object of those who report to them, from the viewpoint of a narcissist, is to make them look acceptable to others and satisfy their narcissistic needs. What’s vital to a narcissist is the image of themselves they want to present to the public.
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oppose it most violently. Bizarrely, an African American, Michael Steele, has just been appointed as Chairman of the Republican Party. Black conservatives in America have tended to be people of middle class who have done well for themselves in business. They are all too often cast in the character of “attack dogs” by the Republicans, much freer to denounce black issues like affirmative action and “black criminality” than whites are. Steele – like other notable black Republicans, is not a popular figure, or held up as a symbol of success among the masses in his community. Ironically, even if the appointment of Michael Steele was a cynical move to get the blacks into the conservative wagon, it comes at a cost for red-faced rednecks. Being GOP Chairman is power of a sort, and a further crack in the glass ceiling that has held black people down. The man elected to staunch black change has himself, without any intention to do so, become an emblem of change. Indeed, both Barack Obama and Michael Steele have become symbols of political change. Rednecks, crowded out of Pennsylvania Avenue, are left to lick their wounds and spread their message through word of mouth, through conspiracy theories, through tendentious talk shows on Fox News and through hate cartoons with criminal innuendoes. It is an admission that they are out of power, at least for a season. But it is not their intention to be out of power for long.
Toye Sobande
The long-term costs of the narcissists’ behavior are exhausting, and the insidiously manipulative acts in terms of scope and complexity are almost untold. How do you even account for the awful experience of inflicting psychological torment on innocent people who want to come to work, do a fantastic job, and feed their families? The result is that talented people learn to hide their innovations or reduce their creativity or productivity or leave the organisation. This is the death of leadership. Do look out for a continuation of this article. However, you can take the Narcissistic Personality Quiz to gauge your narcissistic traits: https://psychcentral.com/quizzes/narcissistic-personality-quiz/ Sobande is a Lawyer and Leadership Consultant. He is a Doctoral Candidate at Regent University, Virginia Beach, USA, for a Ph.D. in Strategic Leadership. He can be contacted by Email: contactme@toyesobande.com
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Friday 18 September 2020
BUSINESS DAY
Editorial Publisher/Editor-in-chief
Do not rig Edo election
Frank Aigbogun editor Patrick Atuanya
The state’s interest is and should always be supreme over an individual’s ambition
DEPUTY EDITORS John Osadolor, Abuja Tayo Fagbule NEWS EDITOR Osa Victor Obayagbona NEWS EDITOR (Online) Chuks Oluigbo MANAGING DIRECTOR Dr. Ogho Okiti EXECUTIVE DIRECTOR, OPERATIONS Fabian Akagha EXECUTIVE DIRECTOR, STRATEGY, INNOVATION & PARTNERSHIPS Oghenevwoke Ighure ADVERT MANAGER Ijeoma Ude MANAGER, CONFERENCES & EVENTS Obiora Onyeaso BUSINESS DEVELOPMENT MANAGER (South East, South South) Patrick Ijegbai COPY SALES MANAGER Florence Kadiri DIGITAL SALES MANAGER Linda Ochugbua GM, BUSINESS DEVELOPMENT (North)
Bashir Ibrahim Hassan
GM, BUSINESS DEVELOPMENT (South) Ignatius Chukwu
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he much awaited Governorship election in Edo state will hold on Saturday 19th September, 2020. We are worried that the election, if not properly managed, would be marred by heavy gun fire, late arrival of voting materials, killings, reports of ballot box snatching, technology failures, results manipulation and even violence as recently witnessed in other states. Nobody should rig the election for whatever reason. State and non-state actors, political parties and youths of Edo state must comply with electoral guidelines. As a democratic principle, elections make a fundamental contribution to good governance. Elections enable voters to select leaders and to hold them accountable for their performance in office. Accountability can be undermined when elected leaders do not care whether they are re-elected or when, for historical or other reasons, one party or coalition is so dominant that there is effectively no choice for voters among alternative candidates, parties, or policies. Nevertheless, the possibility of controlling leaders by requir-
ing them to submit to regular and periodic elections helps to solve the problem of succession in leadership and thus contributes to the continuation of democracy. Moreover, where the electoral process is competitive and forces candidates or parties to expose their records and future intentions to popular scrutiny, elections serve as forums for the discussion of public issues and facilitate the expression of public opinion. It is in the light of the above that electorates look forward to the day of election to exercise their franchise guaranteed by the Nigerian constitution. But this inalienable right cannot be done under a tensed atmosphere. The electorate needs to be assured of his safety before going out to vote. He also must be assured that his vote would count after voting. Experiences from some states such as Imo, Rivers, Kano, Bauchi, and most recently, Kogi do not give much to cheer. Last week, political parties and their candidates signed a peace accord in Benin City with a promise to ensure free and fair election across the State. Before then, the Oba of Benin had a meeting with candidates of the major political parties, Governor Godwin Obaseki of Peoples
Democratic Party (PDP) and Pastor Osagie Ize-Iyamu of the All Progressives Congress (APC). It is common knowledge that previous peace accords at both federal and state levels were not respected. What would make the Edo episode different would be if the contending parties respect and honoured the agreement and caution their supporters. While we have confidence that the electoral umpire, INEC, will conduct a free, fair and credible election, however, the perception with the public is that the election will be manipulated. Sadly, this has become the common rhetoric in the state with insinuations that it doesn’t matter what happens in the polling units, that the federal might would be deployed to ensure the election is rigged. Whether true or false, that perception has been reinforced by both the calibre of people leading the campaign in the state, their utterances as well the huge deployment of soldiers across Edo state. Why would a governor from another state come to Edo with a full complement of soldiers? Many families in Rivers and Kogi States are still mourning their loved ones who died from gunshots during the 2019 general elections. Actions such these instill fear in
the electorates and may if not carefully managed, affect voter turnout on the day of election. INEC must come out very clearly to prove that it is truly independent by addressing these and other contending issues. The campaigns witnessed pockets of violence and attacks. President Muhammadu Buhari must provide adequate security for the citizens and ensure there is no form of violence during and after the election. INEC alone cannot resolve all the challenges facing the electoral and political system. A lot will depend on the collaboration and support of other key stakeholders in the electoral process, including political parties, security agencies, media, and civil society organisations. Rather unfortunately, INEC does not have control over these actors. All those involved in the Saturday governorship election must maintain the peace, respect electoral law and the wishes of the people. While we urge the eventual winner to be magnanimous in victory, the losers should accept the fact that election is not a do or die affair. No person’s blood is worth shedding. The interest of the state and the nation is and should always be supreme over an individual’s ambition.
HEAD, HUMAN RESOURCES Adeola Obisesan
EDITORIAL ADVISORY BOARD Imo Itsueli Mohammed Hayatudeen Afolabi Oladele Vincent Maduka Opeyemi Agbaje Amina Oyagbola Bolanle Onagoruwa Fola Laoye Chuka Mordi Mezuo Nwuneli Charles Anudu Tunji Adegbesan Eyo Ekpo Wiebe Boer Paul Arinze Boye Olusanya Ayo Gbeleyi Haruna Jalo-Waziri Clement Isong Konyin Ajayi
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BUSINESS DAY
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Friday 18 September 2020
BUSINESS DAY
COMPANIES&MARKETS
Business Event
Investors ignore earnings forecast of corporates amid lull in stock market OLUWAFADEKEMI AREO
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ompanies listed on the Nigerian Stock Exchange (NSE) have been releasing their earnings forecast for Q4 2020, but their share prices have remained flat as investors ignore the stock market. Forecasts on earnings by companies are meant to provoke some form of reactions from investors as share prices tend to rise when earnings exceed market expectation or fall when earnings forecasted are not encouraging, according to investment experts. Foreign investors typically are first to react to such information in Nigeria but since they fled the market, there’s been a muted reaction to market moving information like an earnings forecast which helps investors plan their portfolio accordingly. In the most recent trading report by the NSE, activity in the stock market, which is down some 5 percent year to date, is now dominated by domestic investors who make up 66.5 percent of the total transactions with foreign investors occupying the remaining portion of 33.5 percent. For the companies that are guiding towards an improved performance, the lack of movement in their share prices may provide bargain hunting opportunity for local investors as foreigners stay away from the market due to Nigeria’s fx crunch. The accuracy of the forecasts is also crucial in shaping investor behaviour.
L-R: Tayo Adelaja, Corporate Affairs Manager-West, Nigerian Breweries Plc; Tayo Ogundana, brewery manager, Ibadan and Ijebu-Ode, Nigerian Breweries Plc; Adekunle Alao Personal Assitant to the CMD, University College Ibadan; Jesse A. Otegbayo, chief medical director (CMD), University College Ibadan; Emeka Ofulue, medical doctor, Ibadan and Ijebu-Ode, Nigerian Breweries Plc, and Stephen Olubusayo Oladeji, Director of Administration and Secretary to the Board of Management, University College Ibadan, during the presentation of COVID-19 Palliatives to hospital in Ibadan.
Source: NSE, Business Day
MRS Oil Nigeria plc, a downstream oil firm made a positive profit forecast of N775 million for Q4 2020, a 234 percent jump from the N575 million loss earned in Q4 2019. Nonetheless, their share price has remained unchanged at N12.45. In the insurance industry, Guinea Insurance plc has also remained flat at N0.2, despite guiding towards a 131 percent jump in profit to N247 million from a loss of N795 million in the same quarter of 2019 and an improvement from N100 million loss in H1 2020. There have also been some negative forecasts. Okomu oil palm plc, a producer of crude palm oil, reported an impressive halfyear profit of N4.007 billion but has now forecasted a 75.7 percent decline in profit yearon-year for the last quarter of 2020. The company’s share price has however remained flat at N78 irrespective of the expected plunge in profit to N227 million by Q4 2020 from N937 million in Q4 2019.
Total Nigeria plc, another downstream oil firm is projecting a year-on-year decline in profit of 40 percent to N1.6 billion in Q4 2020 from N2.6 billion in Q4 2019. However, this is an improvement from the N537 million loss recorded at the end of the first half of 2020. The share price of Total Nigeria has however remained unchanged at N80, its flat price over the past one month. “The pangs of COVID-19 pandemic and Nigeria’s current economic situation has made both domestic and remaining foreign investors rather unmoved by the forecasts being made by companies”, said Boboye Olaolu, Sub-Saharan African Economist, CSL Stockbrokers. “The illiquidity in the foreign exchange market has chased foreign investors and there are still uncertainties as we cannot exactly say that the monetary authorities have given a clear-cut policy for the unification of exchange rates,” according to Gbolahan Ologunro, Research Analyst at CSL Stockbrokers.
L-R: Franklyn Ginger-Eke, executive director/COO, Re-ignite Public Affairs and Isa Ali Pantami, minister of communication and digital economy, during the presentation of Re-ignite Public Affairs National Dialogue Series Plague to the Minister in appreciation for his role as the keynote speaker at the virtual RPA National Dialogue Series on ‘Rebooting Nigeria’s Economy: The Way Forward’ recently in Abuja.
SKLD Integrated Services deepen customers reach with four strategic business units KELECHI EWUZIE
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etermined to expand multi-sector customer reach, SKLD Integrated Services formerly known as School Kits Limited has added four strategic business units in Retail, Wholesale, Humanitarian Aid Supply and Garment Production. Te m i l o l a A d e p e t u n , managing director of the company stated this at the company’s 20th anniversary celebration in Lagos emphasising that SKLD remains committed to the development and growth of education in Nigeria. Adepetun says the company plans to establish its operations in other states within Nigeria, adding that SKLD Integrated Services plans to make an inroad into West African countries.
Commenting on the future aspiration of the company, the managing director said the company will like to see the textile industry in Nigeria fully revived in order to put its garment production facility to fantastic use by increasing its capacity to have the local textiles available. Adepetun also stated that there is a lot of opportunity for humanitarian aids especially in the Northeast and fortunately, SKLD has started working in that sector and will continue to work in that sector. She further noted that despite the challeng es faced by the company in the last two decades, SKLD remains committed to adding value to all stakeholders. According to Adepetun, “Looking at the deficit in areas like infrastructure, low www.businessday.ng
access to funding, interest rates or taxation, businesses have to constantly look at how these things impact business and strategize to cushion the effects of deficits as well as ensure profitability”. Tayo Osiyemi, deputy managing director of the company added that Nigeria needs more investments not just at the level of providing educational supplies and resources. More investment is needed in providing the tools & technology that will make more young Nigerians educated and exposed to what is going on in the global scene. Behind the new look, SKLD Integrated Services is still the same company and team, dedicated to delivering excellent results and creating value for all stakeholders.
L-R: John Cardinal Onaiyekan, immediate past Catholic Bishop of Abuja; Mahmood Yakoob, national chairman, INEC; Mathew Kukah, co-chair, National Peace Committee (NPC); Sam Amuka, member, NPC, and Samson Itodo, founder, YIAGA, Africa during a meeting on the peaceful conduct of the Edo State Governorship Elections in Abuja. Pic by Tunde Adeniyi
Ade Buraimo, (second l) group managing director of Alpha Morgan Capital Managers Limited flanked by some company’s staff, Yimika Ogunlaja, head private banking, and Terryvin Oguh, head of branding and communications and some of the Lagos teachers, who recently received the company’s support package to cushion effects of Covid-19.
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BUSINESS DAY
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AGRIBUSINESSINSIGHT Market Insights
Analysis
Commentaries
Experts/Industry Views
Commodities watch
Policy Reviews
Send in Commentaries to caleb.ojewale@businessdayonline.com
Has Buhari emptied Nigeria’s food reserves? Stories by CALEB OJEWALE Twiiter: @calebtinolu
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ast month, BusinessDay reported Nigeria only had about 30,000 metric tonnes (MT) of grains left in the strategic grains reserve, a situation that made the country susceptible to hunger crisis in the event of any severe disruptions to the country’s food system. On September 3, President Muhammadu Buhari through his official twitter account, @MBuhari, tweeted “To ease the current high cost of poultry production, I have approved the release of 30,000 tons of maize from the national reserves, to animal feed producers.” This followed 70,000MT of grains ordered for release earlier in the year as palliative during COVID-19 lockdowns across the country. Taking the President’s recent directive at face value, the implication is that the 30,000 metric tonnes of grains left in the country’s food reserves would be depleted. However, there is also a snag, as informed sources say the 30,000MT left is a combination of different grains and not only maize that was seemingly approved for release to poultry farmers. This release itself had followed protests by the poultry farmers over a forex restriction on maize importation that would have hampered availability of the
major raw material in feeding their livestock. Kabir Ibrahim, national president, All Farmers Association of Nigeria (AFAN) said in a phone interview that while the President’s statement may have read 30,000 tonnes, it must have been an honest error instead of 5,000 metric tonnes of maize approved for release to poultry farmers. “The 30,000 tonnes left (in Nigeria’s food reserves) is not only maize, rather a variety of things so he could not have approved 30,000 MT of maize. This is common sense, let us not bother that it is his handle, which someone may be handling for him,” said
Ibrahim who also noted the figures only need to be publicly corrected. However, two weeks after President Buhari’s statement, there has been no indication there was any mistake, as not only has it remained available to the public; no correction has also been done. This could imply depletion of Nigeria’s food reserves at a time farmers are struggling to boost productivity in the face of myriads of challenges limiting their abilities. From the COVID-19 restrictions that affected not only movement of farmers, but also inputs such as fertilisers and seeds, to floods
in the North and dry spells in the South, it has not been the best of years for agricultural output in Nigeria. If indeed the President’s order were accurate as captured in his initial statement, it would not be the first time in Nigeria that the Federal Government had to draw down its grain reserves. A PwC report in June on ‘Responding to the impact of COVID-19 on food security and agriculture in Nigeria noted that in 2009 a total of 78,000MT was distributed out of the available 85,000MT. In 2011, purchases were ordered to replenish the stock while the remainder was
distributed that year, leaving no grains in storage. The situation at present is even direr as 86.4 million people in Nigeria face moderate or severe food insecurity according to this year’s State of Food Security and Nutrition in the World, an annual flagship report jointly prepared by FAO, IFAD, UNICEF and WFP. A source also told Agribusiness Insight “Because he is old, he did not realise that probably in the initial memo they were telling him what they had in the silos, and asking him to approve some quantity for poultry farmers. “In giving approval, he may only then remember the initial total quantity which was given to him,” said the source. Whether or not this is the case, it is yet to be seen if the Presidency would clarify if it meant to release what is left of the country’s food reserves, or if indeed there was an error with the pronouncement. More importantly, how the country’s food reserves would be replenished to prepare against any food crisis. Efforts to get confirmation on the available grains from Sule Haruna, director of the Strategic Grains Reserves were futile when the earlier report by BusinessDay was published as he neither picked calls nor replied a text message sent to him and not even after the story was published.
CBN’s backtracking on Maize import renews fears of policy flipflops as N39bn eludes farmers
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hen the Central Bank of Nigeria (CBN) in July announced it was no longer making foreign exchange available for maize importation, to some who were looking for a window to get into the agric sector, this was the opportunity they were waiting for. What was not publicly known was that the apex bank would secretly work to permit selected companies to import the same commodity and access forex that should not have been made available for that purpose. The decision to permit some companies to import maize was described as “shocking” by Kabir Ibrahim, national president, All Farmers Association of Nigeria (AFAN). “This is just coming immediately after the CBN announced that forex would not be available for anybody to import maize. So we don’t know how this violation of the same thing that is directed by the CBN will be taken by the generality of farmers”. While Bello Dogondaji, national general secretary, Federation of Agricultural Commodity
Associations of Nigeria (FACAN), thinks “any policy against importation is welcome because it means home production is encouraged. At the same time, you are raising hopes of Nigerian farmers,” but backtracking as demonstrated by the CBN, dashes the hopes of the same farmers. A leaked internal memo of the Nigeria Customs Service had indicated four companies; Wacot Limited, Chi Farms Limited, Crown flour mills limited, and Premier feed mills company limited, getting import quotas of 60,000 tons; 60,000 tons; 22, 000 tons; and 120,000 tons respectively between August and October. Written against the name of each company was a financial institution, expected to facilitate the transaction for them, and potentially utilising foreign exchange the CBN said should not be made available. By October when 262,000 metric tonnes of maize would have arrived in Nigeria, farmers would be concluding their maize harvests, especially in the north where www.businessday.ng
the bulk of maize used by industrial consumers is produced. While the quantity may not appear much (relative to annual consumption), it is unclear how many other shipments not publicly known would arrive the country at the same time, and dashing the expectations of local farmers. “Several people are disappointed that it is happening. The farmers are really disturbed that this kind of thing should happen,” said Ibrahim. The initial announcement of forex restriction by the CBN had been met with mixed reactions of support and opposition, with the poultry industry agitating this could lead to a collapse owing to what was described as insufficient maize supply required for animal feed. The maize farmers on their part had insisted the country could produce enough to meet both human and animal feed demand. However, the backtracking by the CBN has indicated the decisionmaking was likely done on flawed data that did not give an accurate assessment of the country’s suf-
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ficiency in maize production and consumption. “When the pronouncement was made, I announced on our radio programme that don’t go and plant corn on this basis or you will fail,” said African Farmer Mogaji, chairman, Agric & Agro-Allied Group, Lagos Chamber of Commerce and Industry (LCCI) in a phone interview. “In terms of confidence, it affects a lot of players in the private sector who take the word of government to rush into the sector”. When the 262,000 tons of maize is multiplied by N150,000 which was the price for a ton of maize at the time of filing this report, it gives N39.3 billion that should have been earned by local farmers. Additional maize, however small the quantity may be perceived, is also likely to reduce the market price when it arrives, owing to the natural principle of demand and supply, implying farmers may not make as much as may have been projected. “When there is policy inconsistency, investors are always very afraid,” said Bolarin Omonona an agricultural economist at the Uni@Businessdayng
versity of Ibadan. “You can imagine people who were already planning to invest for instance based on the forex restriction that would ultimately have led to reduction in the importation of maize into the country.” Omonana further explained that people who were planning to invest in it are already discouraged, if they have started investing by way of planning or committed (funds) to it that would amount to a loss because maize would come in at a cheaper price. Emmanuel Ijewere, vice president, Nigeria Agribusiness Group expressed the view that the situation has “brought to the consciousness of people, the shortage and importance of maize in Nigeria,” and also thinks it would incentivise more people to invest in it. However, the tendency of government to reverse itself either directly or by actions of contradictory actions of its different agencies, makes it difficult for investors to confidently commit funds not just in agriculture, but other sectors of the Nigerian economy.
Managing
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Friday 18 September 2020
BUSINESS DAY
Friday 18 September 2020
BUSINESS DAY
GOVERNMENT
17
the Executive Governor of the Nigeria’s eastern State of Taraba
ADETOKE BENSON-AWOYINKA
BUSINESS
Special Adviser to Lagos State Governor on Housing
Interview with Public Sector Leaders
‘Real estate is our oil in Lagos; we are conforming to global best practices to ensure enduring continuity for genuine participants’ In the quest and vision of the current Governor of Lagos State, Babajide Olusola Sanwo-Olu in making Lagos a 21st Century economy, the Office of the Special Adviser on Housing had the mandate to oversee the erstwhile Lagos State Real Estate Transaction Department in the Ministry of Housing (LASRERA). ADETOKE BENSON-AWOYINKA, the Special Adviser to Lagos State Governor on Housing, in an exclusive interview with KEMI AJUMOBI, Associate Editor, BusinessDay, shares on the vision and implementation plans of LASRERA, identifying fraudulent realtors, Lagos State Agency Regulatory law 2015, among other matters. Excerpt:
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ASRERA: why was it established and how are you curbing increasing cases of fraud in the real estate sector? We started off being the Lagos State Real Estate Transactions Department under Governor Babatunde Raji Fashola and we have an enabling law that was done by Asiwaju Bola Tinubu in 2007. So, it was kick started by Governor Fashola with that department in the ministry of housing, which he put under the responsibility of the Special Adviser to the Governor on Housing. So, when we came in last year, we looked at the laws, we looked at the executive order and we saw that we could actually do much more than what was currently being done. So, we picked up those two documents and we started with a stakeholders’ engagement last year at the Eko Hotel in October, 2019, where we gathered stakeholders in the industry, real estate practitioners, estate agents, estate developers, mortgage bankers association, the Nigerian Bar Association and so on. We brought everybody together to a roundtable where we thought we needed to sanitise the industry, clean up the industry, take the quacks out, and stop fraud in the industry. The conversation started then and by February 2020, Babajide Sanwo-Olu, Governor of Lagos decided that it was right for us to make it an agency under the office of the Special Adviser, Housing. So, we started that journey there. Our mandate is mainly to regulate the real estate industry, which includes; real estate practitioners, developers, real estate agents, estate surveyors, anybody along the value chain of the industry of real estate, we sought to bring them together, we created a platform where we could all come together and also display what we’re doing. We want a platform where anybody all over the world can go in there, pick up a realtor of choice and fly with them knowing that the Lagos State has done due diligence before listing those practitioners there. So, we have lasrera.com, where we have everything that we are doing. Our mandate is right there; we have a question and answer section where you can seek clarifications on questions from us. We also attend to questions from the public, we resolve issues, we have a mini tribunal there that we use, a committee of enquiry that looks into real estate matters or disputes. After that, if we’re unable to resolve those issues, we take them to the office of the DPP in the Ministry of Justice where those matters are charged to court for proper court procedures to begin. So far, we’ve done so much in adjudication. We’ve had cases that we’ve taken to court where we’ve actually gotten judgment on behalf of the people. We didn’t charge the people, it is the responsibility of the state government to protect lives and properties, so, we do all that, making sure that we give such services. Right now, we’re in the process of registering real estate practitioners. The reception has been good among the stakeholders. When we talk about fraudulent practices in the real estate sector in Lagos state, what type has been brought to your attention? It’s ongoing. Every day there is a petition. I just looked at a petition about a landed property in the Awoyaya axis of Lagos which belongs to somebody and which about four property developers have started selling. So, we have
matters that come in. Last week, an old family friend came in, she had the service of a real estate agent who had been looking after the property since her late husband passed away and right now, he has put members of the public into those structures, and has not remitted monies back to the owners of the property. So, we have issues like that. We’ve had issues with developers. About two months ago in Awoyaya, 158 people were defrauded by some certain gentlemen and a lady. They were renting a 10-unit home and collected monies from 158 people. Last year also, we had an issue in Ketu-Alapere where about 250 people were also defrauded of a 15-unit apartment. Monies were collected from members of the public and at the end of the day; there were not enough units to go round. This was clearly an intention to defraud, obtaining monies from them by false pretense. We’ve had such issues. We have a matter in Ajao Estate. That matter has actually gone through the law courts and the courts have forfeited the property to the government of Lagos State and we’re in the process of selling off that property and giving the money back to the owners. In Gbagada, 70 people were defrauded; a couple expecting a baby lost that baby due to that incident. We want real estate in Lagos to be the best all over the world. We want to propagate real estate as an industry that is worth the while of investors, international investors, and if we do not clean up what is currently going on, it would not enhance our dream of real estate, and real estate is our oil in Lagos, we need to make sure that we conform with global best practices to make sure that whoever is involved in real estate in Lagos is in for the long haul and not just people who want to jump on the bandwagon, defraud people and get out immediately. Have there been cases of people who defrauded and justice had its way? Yes. The courts have actually jailed one or two of them and the case in Ajao Estate, the property was forfeited to the state government. We’re doing a certain number of collaborations within the value chain. We have met with the Chief Judge (CJ) of Lagos State, canvassing for designated judges to deal with real estate matters so that we don’t have them in the law courts for endless number of months or years, so we can have quick dispensation of justice because they say justice delayed is justice denied, and in real estate, you need to be on top of what you are doing. The CJ has graciously agreed to give us designated judges so that it will expedite our matters. We’ve also had consultations with the Deputy Commissioner of Police at the state CID in Panti, so all of our processes will go through Panti and we won’t have to go through the normal rigours of having the police to collaborate with us because we already have the collaborative effort with Panti. Therefore, whenever we have matters, we know where to go to. We already have a liaison officer there who is ready to deal with everything that we’re doing. Justice Alogba also promised us a liaison officer that would always deal with our case whenever we have such matters pending before the courts. Yes, we have prosecuted, we have had properties forfeited. We don’t want to be a toothless bull dog we want to be a dog that would bite if and when the need arises. www.businessday.ng
Advise on how to differentiate between genuine and fraudulent realtors We’ve constantly gone on air, on TV, on the pages of newspapers and we’ve gone on social media and we’ve told everybody that if you’re dealing with a real estate practitioner, make sure he is licensed with the Lagos State Real Estate Regulatory Authority. We give permits for people we’ve done due diligence on, the stakeholders are responding positively, they’re glad that we’re here to sanitise the industry. So, I keep telling the members of the public; ‘pause before you pay that money,’ or ‘pause before you play in that real estate sector,’ because when you pause and take a deep breath, you must ask ‘are you registered with the state government?’ the state government has created a platform where you can register and we can also go online to see that you’re registered. Before you have anything to do with that practitioner, make sure that that practitioner is registered with the state government. The rest is caveat emptor, you do so at your own peril. Shed light on the Lagos State Agency Regulatory law 2015? That’s the same law from Asiwaju Bola Ahmed Tinubu’s government. We’re currently in the process of adding that law right now. We’ve gone through the first reading, we’ve gotten exco approval and Mr. Governor’s approval for the amendment of the constitution. We’re currently at the Lagos State House of Assembly and we’ve gone through the first reading and we know that it is the enabling law for the agency and as you know, with everything that government does, there has to be an enabling law. We’ve had an enabling law since 2007 and that’s the one you just quoted of 2015. We’re also amending some sections of it to deal with the current realities of time because a law from 2007 is already archaic and probably would not speak and address some of the issues we have right now. So, right now, that law is before the House of Assembly and it is being amended. Registering as a realtor in Lagos state We encourage people to come in and register, the process is not cumbersome. What we ask for are your trade documents, we want to know where your office is located, we don’t want a briefcase agent, we want agents or developers that we can verify are actually in the business. We do not want people we can’t trace where they operate out of. So, we do our due diligence, we send in our officers from the office to go and check out those locations and verify that what you have put in your form is where you do business out of, so that when you have matters in the industry, we know where to look for you, we know who to call upon. We have all that there, you come into our office or you go on the website, you fill our form, we verify your locations, you verify the papers that you have put in and we do our due diligence and issue you a permit to practice. That permit is what we give to our developers and our agents. It is also barcoded so when you have the permit, you can verify it and see if that person is on the website. In making Lagos an investment hub for those interested in real estate, how close are you to fulfilling that? Mr Governor has an agenda and he always emphasises on the agenda: Traffic management and transportation, Health and Environment, Education and Technology, Making Lagos
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a 21st century Economy, Entertainment & Tourism Industry and Security and Good Governance, (THEMES) So, in making Lagos a 21st century economy, we’ve put a number of things into place. We’re improving on the technology that’s why we’re laying fibre optics all over because we know that for you to get that 21st century economy, technology must be top-notch. We have to put all those things into place. One of the things we’re also doing is this law we’re bringing on board. We also have a law that is coming into place that we have been looking at, the Mortgage foreclosure Law. We’re also coming up with our Condominium Law which would manage affairs of people living together, that also would sanitise what we’re doing and help people know what their limits are when it comes to shared facilities in those shared environments. We have laws that we’re actually putting into place that are supposed to keep those structures working and then show people that in Lagos, everything doesn’t go, everything is guided by our rules and by our laws and the guidelines that we desire. So, with the THEMES agenda of the governor, we’re able to follow those processes and make sure that all those are the things that are uppermost in our minds when we talk and when we look at developmental processes, our processes in the Land Planning Bureau and Physical Planning Bureau, we’re working to upgrade them. We have the EGIS platform in the Lands Bureau, where the survey documents of everything on land in Lagos is also available. So, there are a number of things that we’re putting in place to make Lagos that destination in Africa where real estate should thrive. The Mortgage Foreclosure Law We have a Mortgage foreclosure Law coming up. Right @Businessdayng
now, when you have tenants occupying buildings, unfortunately because that law is not in place now, you have to go through the law courts to go through the process of eviction and all what not. So, once the Mortgage foreclosure becomes law in Lagos, it means that once you default on your payment over a period of months or years, the foreclosure aspect of it kicks in and the process begins and at the end of the day, that property is either auctioned or sold. The process is going to be transparent. We’re supposed to make sure that you’re on time with your payments. Right now, investors are weary of coming into Lagos because they say there is no way we can protect our investments, but with the Mortgage Foreclosure
Law, it’s going to be a thing of history because then, you can actually go into that foreclosure process and get your property back once there are defaults on payments. The Condominium Law This is a law we’re looking at and tinkering with what is supposed to guide and guard relationships between co-tenants or co-occupiers of a property. When we were growing up, we all grew up in mostly single-family homes with our yards. It was just you and your parents and you didn’t have to share facilities with neighbours. But most of the structures that are coming up in Lagos, because of land constraints; we’re going vertical in our development. So, it means that occupiers are going to share spaces and facilities and we see a lot of disputes come out of these shared spaces and facilities. The condominium law is supposed to come in and be put in place in Lagos state where you know where your limitations are, you know what your expectations are from your property developers, facility managers, everything is there and is followed to the latter of the book. That is what is obtainable in the west where people live in shared spaces and you do not see neighbours being aggressors to one another. Here, we don’t have those laws, so we can have little skirmishes or disputes among tenants. We are looking at all those laws and putting in structures in the real estate industry and we are not leaving anything to chance. Addressing the issuing of two separate approved documents of ownership to two different people on same property I’m surprised that Lagos State government would issue a document of ownership to two different people, I doubt that would ever happen. If you have that issue, I would suggest you write to the Lagos State Real Estate Regulatory Authority. Write a petition complaining against such issue and we would look into it. I doubt the Lagos State government would issue two certificates of occupancy for two different people on the same property. I doubt it. It must be some unscrupulous elements in the state government and you know everywhere you go, you have bad eggs, everywhere you have people who are doing things they are not supposed to be doing. But I doubt it. Urban renewal Urban Renewal is not under this agency, but it’s under housing as well. It’s under a government agency called Lagos State Urban Renewal Agency (LASURA).That brings me to the matter that went on last week. The people of Ikoyi and Victoria Island came up against the Lagos State government for felling some trees in order to give way to infrastructural development. These things come up, we have to meet half way, both the people and the government. Those structures have existed for forever, especially in Lagos Island. Those structures are owned by families. Yes, we would have to negotiate with those families. Some of those buildings have given way because of the weak infrastructure and the weakness of the house from being time immemorial. Some of them have collapsed and some of them are awaiting demolition. So, it is an issue where government has to meet with the families, speak with the families and see what we can do about it. It is not government land, it is family land, so we still have to seek the indulgence of the citizens, speak to the families, engage them and see what we can do about renewal. But I know that the issue of urban renewal and the renewal of parts of Lagos is very imminent and it is part of the things the government is looking at. Nevertheless, it has to be with the corporation of the people. We cannot get into people’s properties and say we want to pull them down; people would come up in arms against us. So, it still depends on the families that own those properties. www.businessday.ng
Yes, now we don’t encourage buildings to go on like that, so we have various arms of government that deal with that, the Planning Permit Authority, we have LAPCA that controls building structures, we have so many agencies of government in place that would actually disallow such buildings coming up. But for the ones we already have especially in Lagos Island, we’re gradually getting there. Managing the real omo oniles (land owners) and the land miscreants We all tend to forget that Lagos actually belonged to some people who are supposed to be indigenes (omo onile’s). We have landed properties that Lagos has taken from families that have been excised to government under government excision. We also have those that have been released to those families. Of course, there are sometimes overlaps. We had a gentleman call from the U.S. and he had bought two landed properties in Magodo area from the Baale or from some Omo Oniles and he fenced the property. He still lives in America. Another gentleman encroached on the property and started building. The same Baale called the man and told him somebody has encroached on your property because the Baale knows that they had the legitimate title to that land. So, the man came to the Lagos State government, he went to the lands bureau, physical planning and complained. It was actually realised that he got the C of O, he was the original owner even though he had bought from the Baale. The other man claimed he had bought from the Lagos State government and the government has denied knowing anything about the sale of that property, that they would not sell a property that does not belong to them, the same way that the Omo Oniles are not expected to sell properties that have been excised. It’s all about being aware of the property that you’re buying. It still boils down to due diligence and the slogan I keep saying: “pause before you pay, pause before you play.” If you’re ‘playing’ in the real estate sector, you have to be careful because by the time monies exchange hands, there is no going back on it. On the other hand, the extortionists (you refer to) who come around structures or landed properties, who also refer to themselves as ‘omo onile’s’, I think that’s ridiculous and I think you can avoid that by involving the authorities. Don’t assume that for everything you do in Lagos, government is not going to do anything for you. Involve the authorities, people should know their rights when it comes to things like this and make sure that they’re not pushed around. Involve the authorities if you have such problems. Challenges of marketing Lagos’ real estate sector to the world One of our major challenges is fraud in the industry which is why we have been cleaning and shouting sanitisation and regularisation of the industry. Real estate in Lagos is like no other place in Nigeria. Recently, a colleague of mine who is running a magazine on real estate spoke to me about a real estate show coming up in Dubai in November and he wanted Lagos to be part of it. I told him we would get our developers in Lagos, put them together and showcase them in Dubai as an investment destination in Africa. We’ve also had people calling us from Dubai, private organisations, asking us to give them practitioners they can deal with in Lagos. So, even without launching that program, there is evidence that shows that we want to build a global market for real estate, people are already reaching out to us. Because we’re just starting, we started this agency in February, I can assure you that by next year, we would be that investment destination we want to be. Because by this time next year, we would be able to gather all our developers and our practitioners under the same umbrella. We have a stakeholders’ meeting coming up on the 29th of October. We
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had it last year and the turnout was fantastic, but because of COVID-19 this year, even though we are going to reduce the numbers, we are still going to have the stakeholders meeting where we are going to constantly engage practitioners in the sector, and you know from engagements, you have these ideas come up about what we need to do. So, by next year, for something like that, Dubai 2021 show, we should be having a good showing of real estate developers, practitioners out there where people will actually know that Lagos is the investment destination of Africa. And where else in Africa would you have the kind of real estate turn over that you’re getting in real estate but Lagos? Nowhere else.
PROFILE Adetoke Benson-Awoyinka, a Legal Practitioner, is grounded in different areas of the Law profession ranging from Insurance Law including underwriting policies, Risk and claims management. She also has expertise in Litigation, Probate and Land matters. Born on 12 of June, 1967 she had her education at Marywood Grammar School, Ebute-Metta and the Lagos State University (LASU). She graduated with a Bachelor of Law at Lagos State University (LASU) and was called to the Nigerian Bar in 1990. She started her career at Standard Insurers where she learnt the ropes in Insurance Law, and moved to full time legal practice and litigation with Yemi Peters & Co and then to B.O Benson Law Office working with the best hands in probate and land matters. She further challenged herself forging partnerships with Gbenga Afolabi Benson & Co, Lenox and Blair Estates, venturing into Oil and Gas Law and Consultancy. She worked at Sprint United, a Telecommunication Company in the United States as a Lawyer and Technical Consultant; Head of Corporate Strategy and Policy implementation at Dvyn Inc. also in the United States. On her return to Nigeria, armed with a wealth of experience in policy making and implementation, she was part of the team that crafted the Development Agenda for Western Nigeria (DAWN) seeking Pillars of development for Western Nigeria that fits into the peculiarities as a region. Her vibrancy and concern for the greater development of Nigeria influenced her diverse and political engagements over the years and brings with her years of experience in Law, Business Solutions Management and Corporate Governance. She is currently a Special Adviser to Lagos State Governor on Housing.
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Friday 18 September 2020
BUSINESS DAY
INTERVIEW Nigeria’s food refrigeration industry is big, yet untapped – G.M. Cooling Division, Mandilas Group Nigeria’s food waste amounts to over N12 billion annually, yet the country is in search of food to feed its 200 million population and reduce poverty. The wastages are partly due to poor mobile and stationary refrigeration. In this interview, PAL SINGH who is the General Manager of the Cooling Division of Mandilas Group Ltd told BusinessDay that Mandilas has made huge investment to reduce Nigeria’s wasted food products through mobile refrigeration solution. In this connection, the company has acquired sole franchise of Carrier Transicold business in Nigeria. Singh who has over 30 years’ experience in large air-conditioning and ventilation equipment from different companies across the globe also spoke on needed regulations to enhance the market. Excerpts
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hat motivated Mandilas to go into Transicold business which led to your acquisition of Carrier sole franchise in transport refrigeration solution? For Mandilas, the Transicold franchise is one of the initiatives geared towards sustaining our legacy in the Nigerian market. A legacy that we have continued to uphold for over 70 years. As the sole franchise dealer of the Carrier Brand in Nigeria; this means a lot to us. With this new franchise, our business model and market influence has been expanded to cater to the transportation of temperature-controlled goods with a complete line of equipment and services for refrigerated transport and cold chain visibility. Presently, Nigeria is promoting in-country production of agricultural and all other food related products and this is a huge boost for the cold chain sector. An effective cold chain system would aid reduction in PostHarvest Loss (PHL) and raise the standard of health care delivery in the transportation, distribution, and storage of pharmaceutical products in Nigeria. Demographic dynamics, growth in e-commerce and accelerating urbanisation in the country is also increasing demand for cold chain. This is the right time to provide this service in the market to enable businesses, entrepreneurs, medical personnel, and farmers move their goods at controlled temperatures to avoid spoilage. The ruggedness, durability and innovation of Carrier products are renowned, and the brand is also at the forefront of the Global Initiative on Food Loss and Waste Reduction. The Carrier air-conditioning and refrigeration business is about 40 % of Mandilas Group business. What would you estimate as the value of the cold chain market in Nigeria? It is a big market considering the population and vast opportunities available in the cold chain industry and with adequate support and collaboration the potential for growth is enormous. Market forecast posits that the global cold chain market is estimated to be valued at $ 218 billion in 2020 and it is expected to exceed $ 500 billion by 2026. Which sectors are really the targets of the Transicold business? Our market scope covers the food, health, agricultural, ecommerce and events industries. Good examples are the dairy and beverage companies, fast food chains, frozen food
In this business of moving goods including medicines from one location to another in refrigeration trucks, how do you cope with poor roadnetwork? The equipment is designed to offer optimal cooling performance irrespective of infrastructural challenges. Refrigerated products are normally stored in the insulated cabin installed on transport vehicles. The refrigeration cabins can work on the go with vehicle power and off the road with plugin electricity. With Carrier Transicold, food items can be stored at a maintained temperature without compromising the integrity of transported items. Our after-sales support service and qualified service engineers are also available wherever required throughout the nation.
industry, medical and pharmaceutical companies, event companies to mention a few. We offer a wide range of solutions customized to meet individual customer needs. Our refrigeration systems are environmentally sustainable, affordable, durable, energyefficient with optimal performance. We guarantee value for every naira spent. We will equally provide full support to all our customers, from technical assistance in selection of fit for purpose solution, to supply, installation, and maintenance with genuine spare parts. Could you take us through the process of the operation of the business? There are two type of machines, they can be powered by the vehicle or as plugin on standard electricity. Large equipment’s are powered by inbuilt engine in each Transicold equipment. Units are normally plug and play and thus, very easy to operate. We can install the Transicold Carrier equipment on customers’ vehicles/trucks or lease our cooling vans to individuals and companies. When we lease, our vehicles are insured, and we provide the drivers throughout the period of the lease. We operate pan Nigeria. We have however noticed that investors prefer installing the cooling www.businessday.ng
equipment on their trucks because it is more economical and fits their long-term needs. What is your arrangement on after sales of the cooling equipment installed on the dealers’ vehicles? Service excellence remains a formidable differentiator for the Mandilas brand. We have been able to sustain strong brand equity over the years, which can be traced to our history of excellent after sales and service delivery. We have presence in almost all the geo-political zones in the country with over 200 qualified service engineers to attend to varied customer needs. We have a standard warranty policy from Carrier which is 12 months from date of installation or 18 months from date of shipment of the equipment from the factory. We have a very strong quality check policy at the factory level to avoid equipment failure either during warranty or post warranty. We always recommend preventive maintenance to ensure equipment longevity. We offer annual maintenance contracts everywhere in Nigeria with on-premises personnel of qualified Engineers. Our Clients will also benefit from the global systems standard of Carrier and the depth of knowledge and expertise built by Carrier for close to two centuries.
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You have maintained your forte in air-conditioning business for over 8 decades, what is the secret of such business longevity? At Mandilas, we provide quality products backed by superior after sales service. Carrier is a quality brand known globally for its durability, high performance, and innovative products. The brand continues to set the standard for performance, energy efficiency and sustainability. Mandilas offers customized airconditioning solutions for individuals and businesses with a wide range of residential, light commercial and commercial units that cater to every need and budget. What is your perspective on Nigerian market vis a vis other markets when it comes to refrigeration transport business? In the World Bank’s International Logistics Performance Index (LPI) 2018.2019, Nigeria is ranked 110 with South Africa the top ranked African country at 33. Kenya is ranked 68, Benin 76 and Ghana 106. Nigeria’s cold storage and mobile refrigerated logistics capacity is less than 1% of the world’s capacity according to the Organization for Technology Advancement of Cold Chain in West Africa (OTACCWA). This shows a dearth in logistics and cold chain capacity that must be plugged to improve the profile of the country. I see more investors venturing into the food refrigeration business in large scale either in mobile refrigeration or warehouses. What are the local components in the manufacturing of the cooling equipment for the local market? Our equipment is imported, but there is a lot of work done locally to @Businessdayng
install and maintain the machines. To install, we need a lot of materials such as wood, steel, insulation, etc. These are the local components including the engineering manpower. Could you quantify Mandilas contribution to the economy in its 70 years of operation in Nigeria? There is a lot, specifically on manpower development. Today many of the consultants and technicians operating in the air-conditioning business in Nigeria have worked and sharpened their engineering skills at Mandilas. Apart from that we are paying our taxes, contributing to employment opportunities and other initiatives to keep the economy alive. How would you say the Covid-19 pandemic has affected the foodstuff refrigeration business in Nigeria? The prevailing global health crisis has had an unprecedented impact on businesses across industries. However, with the increased emphasis on e-commerce and demand for direct to consumer or click and collect grocery shopping, the refrigeration business will witness increased opportunities for growth. Though the cold chain sector is presently operating below par, the COVID-19 pandemic is accelerating the trend and demand for cold storage. If you are to advice government on how to achieve massive refrigeration of foodstuff either stationary or Transit to save Nigeria wasted food, what are the advices? Cold chain logistics should be an integral part of agricultural policies and strategy formulation. Government would also need to foster dialogue between public and private value chain stakeholders to develop a common vision for the sector; develop regulations particularly with regards to food safety and environmental sustainability and upgrade key infrastructure for efficient delivery of cold chain systems.
Profile Pal Singh is the General Manager of the Air-conditioning division. Qualified as HVACR engineer, he is a member of the American Society of Heating, Refrigeration and Airconditioning Engineers. Pal has 30 years’ experience in large Air-conditioning and ventilation equipment from different Companies across the globe. He is an expert in latest and advanced technology of HVACR engineering which is a unique service that aligns comfort and technology for Corporates.
Friday 18 September 2020
BUSINESS DAY
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MONEYINSIGHT Autochek, owned by former Cars45 CEO acquires Cheki FRANK ELEANYA
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utoChek, a company set up by Etop Ikpe, the former CEO of Cars45 has acquired Cheki’s holdings in Nigeria and Ghana. Prior to the acquisition, Cheki, a vehicles’ marketplace, was owned by Ringier One Africa Media (ROAM). The new platform is expected to relaunch before the end of the year. The story first reported by AimsGroup and confirmed to BusinessDay by Etop Ikpe, noted that Autochek plans to use technology to transform the automotive buying and selling experience for African consumers, by creating a single marketplace for consumers’ automotive needs, from sourcing and financing to after-sales support and warranties. Ikpe told BusinessDay that the move for Cheki aligns with its vision to address obvious lapses in the automotive industry. One of the lapses comes from the fragmentation of the industry which he says is responsible for the gaps in car owners in Nigeria. By dealing with this fragmentation, countries like India are able to scale and contribute significantly to the country’s economy. In India, the manufacturing of the automotive sector alone contributes 30 million jobs. 35 percent of manufacturing
GDP in India comes from the automotive industry. “If you trace it back, you find out that in the 1970s Nigeria was manufacturing over 300,000 vehicles. We had Range Rover, Leyland, automotive factories were manufacturing batteries, windscreens, and wipers. And you begin to question and say “What happened?” this is a sector that provided a lot of value and technical competence. What has happened?”
For most Nigerians, a big obstacle is an access to car financing. Currently, only one percent of people who bought their car did so through credit for financial institutions. This is not for lack of capacity on the part of the banks to finance vehicles. Ikpe says it is largely because the banks are too busy running every process of the financing. This only complicates the process and makes it even more impossible for many more people
to buy cars. Another obstacle is the lack of maintenance support and not much is achieved without efficient car maintenance. “These are the sectors that we are aiming to solve. If we can bring all these sectors together, then people can have a better buying experience. People cannot finance a car if they do not have a guarantee that the car they are spending money on is going to be maintained not by road-side
mechanics who depreciate the car,” he said. Following the acquisition, ROAM, the parent company of Cheki has since transferred ownership and operational control to Autochek. I the coming weeks, all Cheki Nigeria and Cheki Ghana outlets will be rebranded under the Autochek umbrella. Autochek would also absorb Cheki Nigeria and Cheki Ghana teams, including its current CEO, Chimezie Okonkwo.
Entrepreneurship comes with psychological, social hurdles to scale over STEPHEN ONYEKWELU
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ntrepreneurship, that mode of the spirit which requires being a self-starter, self-motivator and an innovator comes with a fair share of hurdles to leap over, obstacles to overcome and tests to pass. Some of these psychological and social hurdles obstacles are listed below and how to deal with them. Fear Fear heads the list because it is one of the most subtle of all. It is one of the most common obstacles that stand in the way of intending entrepreneurs who want to float a business.
Fact is fear exists because of uncertainty. The less one knows about the outcome of something, the more afraid they are. This is why the fear of failure is the biggest fear of all when it comes to starting a business. The fear of failure is so powerful and domineering that more than 95 percent of people who have brilliant business ideas cannot act on these ideas because they’re too afraid to fail. Truth is successful entrepreneurs get afraid too. The difference: they do not let fear stop them. “I felt that fear when I quit my job and a steady salary to pursue my business dreams. www.businessday.ng
I had a 4-month old baby and my wife wasn’t working at the time. Although I had faith in my business dreams, the fear of failure scared the life out of me” said John-Paul Iwuoha, author of 101 Ways to Make Money in Africa and CEO Smallstarter. com, a business website. Fear can be conquered and one of the best weapons against fear is action. To take bold and positive action in the face of fear helps an intending entrepreneur take control of the situation and fear will almost always take a backseat. Perfection When it comes to business and entrepreneurship, getting start-
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ed is always better than being perfect. Look at it this way. Starting a business is like learning to walk. An apt analogy is a baby learning to walk. It does not wait until a perfect time, and then suddenly starts to walk. No. Most babies start by crawling, and then they learn to stand, and then make several attempts at walking. This is how life, nature and business work. Unfortunately, many people want to check all the boxes before they start a business. They want to raise enough capital to rent an office, hire staff and build a great looking website. They want to start at the perfect time. They want to start big, or not start @Businessdayng
at all. Big mistake! Unworthiness Have you ever felt like you do not have enough talent, education, experience, connections, riskappetite or luck to become an entrepreneur? That is the power of unworthiness at work! Many people buy this big fat lie, and that is why they never come around to becoming entrepreneurs. Successful entrepreneurs come from all kinds of backgrounds. Your level of education, family background and physical qualities do not matter. What matters is your belief in yourself. Only you can decide to be worthy of entrepreneurship.
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Friday 18 September 2020
BUSINESS DAY
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TIMIPRE WOLO, leading honourable initiatives in the Niger Delta, tackling skill crisis in the Nigerian oil and gas industry KEMI AJUMOBI
Associate Editor, BusinessDay
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imipre Wolo is the visionary and CEO of TFN Energy Limited, an indigenous new entrant into the Nigerian energy sector at the forefront of providing innovative eLearning solutions to tackle the skills crisis in the Nigerian oil and gas industry. She is best known nationally and internationally for her commitment to youth development, particularly empowerment of the girl child through education. She is the Founder of the Centre for Gender Equality, Education and Empowerment (CGEEE), a nonprofit she established in 2017 to promote young women representation in leadership and to address the high level of illiteracy, unemployment and poverty, amongst women and girls in rural areas in Nigeria and across sub-Saharan Africa. Growing up in the oil rich but highly impoverished Niger Delta region of Nigeria, Wolo developed an early interest in finding lasting solutions to the development issues in the region. The loss of her mother at a very tender age did not deter her from pursuing her dream of becoming a lawyer against all odds. Sequel to obtaining a Bachelor’s Degree in Law and graduating from the Nigerian Law School in 2007, she proceeded to the University of Aberdeen, Scotland, United Kingdom where she obtained a Masters’ Degree (LL.M.) in Oil & Gas Law in 2009. Timipre began her career in private legal practice, before joining the Legal Department of the Petroleum Technology Development Fund (PTDF); Nigeria’s foremost government agency responsible for capacity development in the oil and gas industry and was subsequently appointed Special Assistant to the Executive Secretary. In September 2011, Timipre was assigned pioneer Head of the Fund’s Industry Collaboration Unit, tasked with the responsibility of fostering closer collaborations between the PTDF and relevant stakeholders in the industry, such as the IOCs, the academia and oil producing communities. Thus, becoming the youngest person to ever serve in the PTDF Management. Driven by her passion and commitment to youth development, she championed several youth empowerment initiatives such as; pioneering PTDF foreign undergraduate scholarship programme, a youth entrepreneurship development scheme, as well as an edu-
cational collaboration with the United Nations Institute for Training and Research (UNITAR), leading to the award of scholarships to about 400 disadvantaged youths from the Niger delta and across Nigeria to study at various institutions overseas including the United States, United Kingdom, Norway and China. Timipre also championed the first ever helicopter pilot training program for the petroleum industry in Nigeria with the training of young Nigerians as internationally certified commercial helicopter pilots. She also played a key role in facilitating the Fund’s pioneer job-creation partnership with the private sector, culminating in employment of the young pilots into positions hitherto held by expatriates in the industry. A finalist in the Professional Achievement category of the British Council Award 2017 and listed as one of 90 personalities who inspire Nigeria, by Those Who Inspire, Timipre has been honoured with many prestigious awards for her service to humanity and leadership excellence. She received; a
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Letter of Recognition from the Commonwealth Youth Council in 2015, the African Woman of Worth Award 2015 from the African Women in Leadership Organisation, Role Model for the Female Child Award 2016, Woman of the Year 2017, and the Woman of Excellence Award from the Coalition of Wives of African Presidents and Vice Presidents for Peace (COWAP) 2018. She was also recognised by Leading Ladies Africa as one of Nigeria’s 100 Most Inspiring Women in 2018. Wolo, who was a youth delegate to the United Nations Youth Assembly in 2005, 2006 and 2008 respectively, now dedicates time and resources to creating opportunities for young women and girls, equipping and inspiring them to maximize their potentials and live purposefully. This she achieves through the various platforms she has created, such as, the CGEEE, the Sisters of Faith and Purpose Ministry, the annual ‘Queen Arise’ Conference, Mission Africa and “One Hour with The King”, a non-denominational Christian Fellowship she founded in 2013. @Businessdayng
Timipre believes that education is a vital tool for sustainable development and that when quality education is combined with faith and hard work, anything is achievable, irrespective of your status at birth. A s c ov e r p e r s o n a l i t y for Women’s Hub today, she shares on her commitment to youth development, promoting young women representation in leadership and addressing the high level of illiteracy, unemployment and poverty, amongst women and girls in rural areas in Nigeria and across sub-Saharan Africa. She also shares on being the former Special Assistant to the E xecutive S e c re t a r y , P T D F, b e i n g pioneer Head of the Fund’s Industr y Collaboration Unit and the youngest person to ever serve in the PTDF Management, her recent recognition as Niger Delta Most Outstanding Humanitarian Personality of the Year, 2020 among other matters.
Please visit our website www. businessday.ng to download and read the entire interview.
BUSINESS DAY
Friday 18 September 2020
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HEALTH BUSINESS&LIFE Handwashing: simple act with far-reaching benefits in fight against COVID-19 Two hundred years ago, IGNAZ SEMMELWEIS, a Hungarian physician suggested handwashing can save lives, but he was ignored. Today, handwashing is proving to be indeed life-saving. ANTHONIA OBOKOH highlights the benefits and challenges of handwashing in Nigeria and around the world.
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hink of some of the world’s greatest disasters like earthquakes and floods which incidentally bring people together, holding each other’s hands through the fear and the pain. However, human history shows pandemics – such as COVID-19 - have driven them apart. In these types of crises, holding hands is not particularly a reflex reaction, what is more vital for survival is ensuring those hands are clean enough to live through the crisis. In February, the Nigerian Government announced the first case of the COVID-19 in Nigeria, triggering a nationwide campaign on frequent hand washing with soap and water for twenty seconds. But what is more surprising is the long history of handwashing which has been a central component of overall health and hygiene. According to the Global Handwashing partnership, the concept of hand washing only gained public recognition in the 1980s when a string of foodborne outbreaks and healthcare related infections raised serious concerns.
With these, the Centre for Disease Control and Prevention (CDC) identified hand hygiene is an important way to prevent the spread of infection. Since then, the world has gone through several guidelines on effective hand hygiene practices. As Nigeria heads cautiously to the new normal, we must remind ourselves of just how important hand washing is to our general health and in the fight against the current pandemic. How effective is handwashing? According to a study published in 2018 by the American Journal of Infection Control (AJIC), a journal of the Association for
Professionals in Infection Control and Epidemiology (APIC), infection prevention practices centred on hand hygiene protocols has the ability of saving lives across all healthcare facilities beyond the hospitals. Findings from this research revealed the impact of implementing hand hygiene programmes among nursing homes; it was found that incorporating consistent measures that prompt staff, residents, and visitors to wash their hands can lower mortality and antibiotic prescription rates, thereby increasing health and hygiene. Additionally, research from leading health publication, Health Affairs found that improving practices of hand
hygiene reduced hospitalacquired infections and decreased mortality rates among children admitted to a large paediatric intensive care unit between 2007 and 2009. Furthermore, the World Health Organisation (WHO) advocates hand hygiene as the primary measure proven to be effective in preventing healthcare-associated infections and the spread of antimicrobial resistance. Lastly, the Centre for Disease Control and Prevention has estimated that handwashing with soap and water could reduce diarrheal disease-associated deaths by up to 50 percent and reduce risk of respiratory infections by 16 percent. The challenge It appears that one of the most effective ways to curb the spread of a disease such as the world is currently battling, is as basic as ‘hand washing’. However, this can never be more critical, yet, several communities lack access to basic hand hygiene. According to data from UNICEF, three billion people – 40 percent of the world’s population – do not have a place in their homes to wash their hands with water and soap.
Experts want inclusion of pregnant women in clinical vaccine trials ANTHONIA OBOKOH
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espite increasing support of maternal immunisation strategies in Nigeria, experts have called for the inclusion of pregnant women in clinical vaccine trials as the majority of new vaccine products are rarely considered with them in mind. The experts say that pregnant women have unmet needs when it comes to the vaccines, however, more efforts should be made to develop vaccines specifically targeted to pregnant women to protect them and their offspring from disease outbreaks. “The problem is that pregnant women are often left behind when it comes to vaccines,
but unfortunately, they are one of the most severely impacted during outbreaks,” said Chizoba Wonodi, Nigeria country director for International Vaccine Access Center (IVAC). “There is a lot of reticence to include pregnant women in research and this has led to a shortfall in data about how they respond to vaccines,” Wonodi said at a webinar organised by the Society of Gynaecology and Obstetrics of Nigeria (SOGON) in partnership with pharmaceutical giant Sanofi Nigeria Limited. “It is a vicious cycle right that is perpetuated; researchers and health care providers tend to exclude pregnant women from trials, vaccinations, and tracking because fears about unknown
fetal harms result in denial of access to vaccines,” she added. Concerns over “theoretical harm” drive decisions to exclude pregnant women from interventions, Wonodi said, noting that there were about 60 to 90 percent case fatality rates concerning Ebola and that led to 100 percent loss. “This just shows that it affects a woman and her child,” she says. “When we think about influenza, hepatitis E, Pregnant women were disproportionately affected and the offspring were also affected by Zika. Then in Lassa fever data from Nigeria, there has three to five times’ greater mortality in pregnant women in the second and third trimester. “If pregnant women are af-
fected disproportionately by epidemic diseases, then why should they not have the benefits of vaccines that protect against these diseases,” she asked. Also Gbadegesin Abidoye, associate professor/ honorary Consultant, Obstetrician and Gynaecologist, Lagos State University College of Medicine/ Teaching hospital said there are safe and effective vaccines that are available and have been used for more than sixty years while speaking on the topic, ‘Influenza Vaccination In pregnancy’ Note: The rest of this article continues in the online edition of Business Day @https:// businessdayonline.com/
National Lottery Trust Fund empowers Edo Healthcare centres with medical equipment IDRIS UMAR MOMOH & CHURCHILL OKORO, Benin
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he National Lottery Trust Fund has distributed medical equipment worth millions of naira to two healthcare centres in Edo State. The healthcare centres located at Usen general hospital in Ovia South-West Local Government Area, and Ogbesse maternity in Ovia North-East LGA were geared towards improving the healthcare delivery in the locality. Bello Maigari, executive secretary/CEO National Lottery Trust Fund, who presented the medical items to the management of both hospitals, said the medical equipment would complement the efforts of the State government to make a
difference in saving lives by providing life-saving interventions to pregnant women and other residents of the communities. Bello listed the equipment to include Phototherapy machine, delivery beds, blood banks, haematocrit centrifuges, defibrillators, infant incubators, baby cots, hospital beds and mattresses, Olympus, bucket cent, sonicaid, cardiotocography, suction machine, autoclave, among others. Bello, who said the intervention is topical when Nigeria is dealing with the devastating www.businessday.ng
effects of COVID-19, noted that the agency is committed to ensuring better healthcare delivery across the country. “The target is to cover the entire 774 Local Government Areas across the nation, including the Federal Capital Territory (FCT). “I am here to re-affirm that our intervention will continue to be pursued in a broad, distinctive, integrative and inclusive manner across the country, whilst also ensuring that good causes offer long-term value to society and give good value for lottery money. “Let me reassure you that NLTF has put in place a robust and comprehensive Monitoring and Evaluation system to help the agency track the progress of its intervention programmes, and in particular, the utilisation of these facilities in this hospital,”
he said. He, however, solicited support from stakeholders in the health sector in raising awareness on the value of lottery funding to modern life and its transformational legacy to the nation. Earlier, Edwin Ajah, zonal coordinator, National Lottery Trust Fund South-South zone, said the intervention would help those who cannot afford to pay for exorbitant fees in private hospitals to access vital services. He noted that the agency is poised to change the lives of Nigerian citizens. Speaking on behalf of the recipients, the medical director of Usen General Hospital, Solomon Aiguobasimwin, commended the agency for the donation, adding that the items would contribute significantly to healthcare delivery.
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Data also shows that the majority of people in the least developed countries have a higher risk of a COVID-19 infection due to a lack of hand hygiene facilities. In the 60 highest-risk countries, 2 out of 3 people – 1 billion people in total – lack basic hand washing facilities with soap and water at home. Around half are children. The same data also show schools, clinics, hospitals and other public spaces lack hand hygiene facilities, putting children, teachers, patients, health workers and the entire public also at risk. The solution for the mix There is no better time to see a mass obsession with hand hygiene; with the wealth of knowledge available on the impact of handwashing practices, actual compliance for this before the outbreak of coronavirus, was disturbingly low. Surging COVID-19 cases across Nigeria no longer question the effectiveness of handwashing; the main focus is on how to establish hand washing as a way of life amongst Nigerians. Procter & Gamble, through its Safeguard® antibacterial soap brand led the handwashing revolution in Nigeria through the installation of contactless hand washing sta-
tions in high-risk areas such as markets and hospitals across a number of states in Nigeria including Lagos, Delta, Kwara, Kebbi, Katsina, Oyo, Ogun States and the Federal Capital Territory Abuja. The scale of P&G’s handwashing stations in Nigeria is an ideal example of a publicprivate partnership which will contribute significantly to driving habit change in Nigeria given the dearth of hand washing or hygiene facilities across the country. P&G has continued to leverage its unique brand to build and maintain a strong culture of health and hygiene. As part of its COVID-19 relief efforts in Nigeria, P&G donated over 100 million Naira worth of hygiene products across the 36 states – which included the launch of a nationwide handwashing campaign to raise awareness and deepen the understanding of the importance of hand washing with soap and water as an effective and affordable way to prevent the spread of diseases. Note: The rest of this article continues in the online edition of Business Day @https:// businessdayonline.com/
Beaconhill Smile Group appoints Odeyemi, UKtrained oral surgeon, group clinical director ANTHONIA OBOKOH
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n furthering its leadership role in the healthcare industry in Nigeria, the board of directors of the Beaconhill Smile Group (Exclusive Smile and Beaconhill Smile Clinics) has approved the appointment of a UKtrained consultant oral surgeon and implantologist, Olakunle Odeyemi, as group clinical director and head of Oral Surgery, with effect from September 15, 2020. The appointment coincides with the fifth anniversary of the Beaconhill Smile Clinics. Odeyemi brings to the Beaconhill Smile Group a wealth of experience gathered from the healthcare space globally and over 27 years of practice experience from the National Health Service (NHS) in the UK. Having graduated from the University of Ibadan College of Medicine in 1984, Odeyemi proceeded to the UK in 1991 where he trained at the Royal College of Surgeons of England, obtaining a Fellowship of Dental Surgery, FDSRC (Eng.) in 1994. He also obtained an LLM (Legal Aspects of Medical Practice) from Cardiff University in 2008. Odeyemi has worked in various hospitals in the UK, including Blackburn Royal Infirmary, Gloucester Royal Infirmary and the Odstock Burns and Plastic Surgery Unit of the Salisbury Dis@Businessdayng
trict Hospital, Salisbury. He specializes in advanced oral surgery procedures including bone augmentations, sinus lift, bone block procedures, conscious sedation, PRF amongst others. He has placed over 1,000 implants successfully in the UK. With his training in conscious sedation and his calm approach to clinical care, Odeyemi was able to attract numerous anxious patients to his practice in the UK thereby making him one of the most sought after and celebrated dental implantologists in the UK. He is a member of various professional bodies including the British Association of Oral surgeons and the Association of Dental Implantology (ADI), UK. Odeyemi would undoubtedly be an invaluable asset in driving a new patient safety and quality improvement focus as Group Clinical Director of the Beaconhill Smile Group.
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Friday 18 September 2020
BUSINESS DAY
Hotels
Why you need to be a cautious guest OBINNA EMELIKE
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s the world is easing restrictions and lifting travel b a n s, p e o p l e are beginning to travel again, but cautiously. As expected, most travellers are reserving and booking hotel accommodations ahead of their stay. However, considering the new normal of doing business in the post Covid-19 era, guests are now more conscious of their health and safety in the hotels they intend to stay in. While priority is given to health and safety now, there are other things hotel guests should be cautious of during their stay. A cautious guest should not pay with cash or a debit card. If a guest pays with cash, the guest will have a much harder time disputing bills. Even paying with a debit card may make it difficult to dispute charges on your bill. Well, you may need to dispute charges on your bill because some hotel guests have often been targets of identity theft. Another reason is that hotel bills often have hidden charges such as destination fee, resort fee for amenities even when guests are not staying at the resort. As well, some charge an obnoxious restocking fee for the nuts and drinks you took from the minibar while enjoying the comfort of the room. To be on the safe side, pay with a credit card and research the hotel’s fees prior to booking your stay. Also, a cautious guest
should not use the hotel Wi-Fi to send sensitive information. Sending sensitive information over a hotel’s Wi-Fi is risky because it is very easy to hack public Wi-Fi hotspots. While using the hotel’s hotspots to send sensitive information, an unsuspecting guest may be exposing his/her passwords and bank details unknowingly to fraudsters. Instead, use encryption to cover your online activity when you are logging into your bank account or sending other sensitive information. But if it is not something of utmost importance, you could wait until you get to a location with a more secure connection. Like professional wrestling promoters would warn TV viewers, “Don’t try this at home, school or anywhere”, guests should not steal anything in the hotel, especially from the room. It is absolutely fine to take certain things from a hotel room, the complimentary soaps, shampoos, lotions, among others. But do not be
tempted to take other things, like the towels and bathrobes. No matter how plush and luxurious they are, it is not worth it. First of all, it is wrong and the hotel will find out about it, and that means that you could be embarrassed and charged extra. Again, a guest could end up getting banned for stealing from the room. Now, most major hotels have a computer database with a no-stay list of patrons who have stolen from them. Those hotels are all too happy to share that information with other hotels. That could mean that even though you stole something from the Marriott, you could also end up getting banned from the Hilton. Moreover, stealing from a hotel is a crime, and a guest could end up getting locked up. Following the do not steal warning; guests should not restock the minibar. Trying to fake the hotel staff out by replacing the liquor with a half-sipped bottle, or a similar brand of the one you drank earlier makes no sense. If you are caught, you
would be charged extra for the embarrassing act. Also, to be a cautious guest, do not use the “Please Clean Room” sign. Sure you want your room cleaned, but do you really want to announce to the whole world–especially to the burglars–that your room full of valuable possessions is empty? No, hanging that sign up does not necessarily mean that the room is empty, but it most likely is–and thieves know that. So, if your room is in need of a good cleaning, call the front desk directly and ask them to send someone to clean your room. For health and hygiene sake, do not use the throw pillows. Some hotel health experts advise that guests should not sleep on the throw pillows, rather, toss them off the bed. According to health experts, hotel throw pillows can harbor some really nasty germs. “If you notice the throw pillows on the bed or the couch have no removable sleeves, you can be sure they are never thoroughly cleaned,” Kashlee Kucheran, seasoned traveler and co-owner of traveloffpath.com,said. The hotel will replace them after the stains and smells get to be too much. But, steer clear of them in the meantime because “you can bet there have been many faces, bottoms, and other things lounging on those pillows,” Kucheran added. To be on a safe side, guests are advised to call ahead and ask that the throw pillows be removed from the room prior to their arrival.
Top BusinessDay Partner Hotels Four Points by Sheraton Hotel (Oniru Chiefatancy Estate,Lekki) Tel: +234 1 448 9444
Transcorp Hilton Abuja 1 Aguiyi Ironsi Street Maitama, Abuja Tel: +234-708-060-3000
The Wheatbaker #4 Onitolo(Lawrence Road), Ikoyi, Lagos. Tel: 01 277 3560
Hawthorn Suites by Wyndham Abuja 1 Uke St, Garki, Abuja. Tel: +234 9 4603900, +234 805 7522500
Lagos Continental Hotel Plot 52, Kofo Abayomi St, Lagos Tel: 01 236 6666
Radisson Blu Hotel Ikeja #38/40 Isaac John St, Ikeja GRA100271, Ikeja Tel: +234-908-780 5555
206 Exclusive Hotel Plot 206 Oladipo Diya Road Opposite Olympia Estate By Games Village Second Gate Durumi2 Abuja
Novotel Port Harcourt Address: 3 Stadium Road Rumuomasi, Port Harcourt Rivers State, Tel: 0809 713 5734
Post-COVID: Home Touch Restaurant set to excite patrons
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ollowing the restart of hospitality business after the easing of the lockdown occasioned by Coronavirus pandemic, Home Touch Restaurant has reassured clients of customer satisfaction. The management of the restaurant, which specialises in Nigerian dishes, served in a decent environment, has urged patrons to visit and savour the calm, comfort and luxury of its relaxed atmosphere. Home Touch Restaurant is busy in the post COVID era for obvious reasons. The beautiful location inspires restaurant-goers to visit, especially those with a sense of culinary adventure. “It is a food affair”, Peter Echela, manager of Home Touch Restaurant, said. “Home Touch Restaurant is a place for Nigerian dishes and we meet our customer
expectations. Diners are coming for authentic Nigerian dishes. They love our dishes and usually come back after the first visit and second time with friends and family to enjoy their meal. This is what gives us joy.” Echela attributed the increased patronage to the unique selling point of the eatery. He said customers can eat indoors and outdoors but some of them choose the out-door option where breeze caresses their faces as they eat. Moreover, they like to comply with COVID-19 guidelines taking advantage of the large compound to maintain social distancing after washing their hands with running taps at strategic locations. The increased meeting spaces also attract business and convention visitors to Home Touch. The manager said that as Home Touch Restaurant is www.businessday.ng
truly a Nigerian kitchen, they celebrate Nigerian cuisine. “Every day is special when we serve ‘Dish of the Day’. Our customers know when we focus on their favourite dish. Mondays we celebrate Afang, Tuesdays is Ofe onugbu ( bitterleaf soup), Wednesdays is Banga soup, Saturdays and Sunday we serve Ofada rice and Fisherman’s soup respectively,” he said. Echela also spoke on their expansion programme. Home Touch Restaurant has expanded on the back of their Ikorodu Road property’s strong offerings to two more outlets including Home Touch Restaurant at Tafawa Balewa Crescent in Surulere. They also have an outlet at the Murtala Muhammadu International Airport, Lagos. The management of the eatery said it is going back to business as international flights resume on September
5, 2020 to continue offering travellers hot spicy peppered rice and Moi Moi before their departure. However, the manager and his team have relied on the advice of Lai Banwo, owner of Home Touch Restaurant, to improve on their offerings. Quoting Banwo, who has retired to private practice as a medical practitioner, the manager said, “Nigerian dishes are good health-wise. We should promote it. Nigerian food is rich in fibre and we should eat a lot of vegetables.” “Do you know why our Peppered Rice is popular? Dr. Banwo said ‘you can practice medicine in Nigeria without any sign of scurvy. Pepper contains Vitamin ‘C’. We are into catering, outdoor and indoor services and we also cater for several school sets. I think Nigerian dishes are just fantastic”.
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Radisson Lagos Ikeja #42-44 Isaac John Street, GRA Ikeja, Lagos
Southern Sun IkoyI Hotel Address: 47 Alfred Rewane Road, Ikoyi, Lagos Tel: +234 1 280 5200 / +234 1 280 0630 Email: ssikoyi.reservations@ tsogosun.com
Radisson Blu Anchorage Hotel 1A,Ozumba Mbadiwe,Victoria Island. @Businessdayng
Friday 18 September 2020
BUSINESS DAY
23
entertainment Nigerian viewers to enjoy more as MultiChoice unveils offerings, new content Stories by Obinna Emelike
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ultiChoice, the leading pay TV service provider in Nigeria, recently held its annual Media Showcase which happened virtually for the first time. The event, which took place on September 9, 2020, was organised to further amplify the company’s promise to continue telling stories that resonate with viewers, while unveiling some of its new offerings and plans for the year. Speaking at the virtual event, John Ugbe, chief executive officer, MultiChoice Nigeria, said: “Putting our valued customers in the forefront has always been our goal at MultiChoice Nigeria. We have continued to invest in the Nigerian economy by creating quality and entertaining content for Africa by Africans and the Media Showcase provides an opportunity to celebrate these investments.” The Media Showcase happened virtually due to the COVID-19 pandemic, and journalists were taken on a journey through the past, present and future of the company’s investments in local content. It was also an opportunity to showcase the company’s advancements in technology, innovation and customer experience as seen on DStv and GOtv. During the event, updates were provided on new programming such as two
Scene from Battlegroung, a premium local content by Africa Magic
new Africa Magic shows ‘Enakhe’ and Riona ‘Fighting Fate’, as well as, a new reality show, ‘Shoot Your Shot’. The company also spoke about other investments such as the N3.5 billion that went into the production of the fifth season of BBNaija and supporting the growth of the film industry through the MultiChoice Talent Factory (MTF). The MTF, according to the leading pay TV service provider, inspires and nurtures talented young people to work in local creative industries, thus generating a pipeline of local content. Additionally, Masterclasses were launched to address the increased interest of industry professionals in learning specialised aspects of film making. “We have been at the forefront of creating and exporting Nigeria’s entertainment, providing a platform
for the country’s talent to be showcased across the continent. The MultiChoice Talent Factory is a testament to that investment and the crop of academy graduates have been equipped to take on the industry,” added Ugbe. In addition to investments, MultiChoice Nigeria also mentioned their newly revamped M-Net Movies and SuperSport channels, which offer DStv and GOtv customers easier access to preferred contents, more choices and better value. Moreover, DStv and GOtv viewers are further going to witness top American leagues such as the English Football League (EFL), Major League Soccer (MLS), Scottish Premier Football League (SPFL) and Dutch Eredivisie on ESPN, which is available to DStv and GOtv Max customers, while DStv
customers get to watch NBA on ESPN 2. Other products and innovations have been created to make the lives of MultiChoice customers easier, such as a new service launched by Showmax to the DStv subscribers called Showmax pro. Following the launch, all active DStv Premium customers will be rewarded with Showmax subscriptions at no cost. The pay TV company also delved into the MyDStv and MyGOtv Self-Service apps, which enable customers take control of their DStv and GOtv accounts from the comfort of their homes, as well as, choose the auto-renewal payment option, which allows them to pay and renew their subscription automatically each month. The apps can be downloaded from the iOS and Android stores.
Dakolo, Drille, Blaqjerzee named jury for Greysage’s songwriting contest
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s its developmental contribution to engender respect for copyrights in the creative industry, Greysage Consulting, a leading law firm, has launched a songwriting contest with mouthwatering prizes for Nigerian music talents. The month-long online based competition will begin on September 12, 2020 and end on October 12, 2020. The organisers have also unveiled the jury panel, which cut across popular Nigerian musicians and songwriters such as Johnny Drille, Blackjerzee, Obinna Agwu, Timi Dakolo, among others. At the end of the competition, the best songwriting talent will walk home with a winner-takes-all reward of N100,000 cash prize, among other freebies including; a photo session, production, music equipment gift and legal consultation with a reputable entertainment lawyer. According to Akinyemi Ayinoluwa, the convener of the competition, who is a top-rated creative industry influencer and lawyer, the competition has a goal to impact positively on the music ecosystem. “We aim to support the empowerment of songwriters across the country with financial resources, education, networking opportunities, mentorship, and advocacy. This competition will draw attention to the importance of songwriting as an art and profession”, he revealed. To qualify, the organisers said that interested participants are expected to share a 90 second video en-
try of a song with chorus and hook on instagram with the hashtag #securedabag #greysagesongwritercontest and also follow @greysagehq, as well as, her partners and sponsors on instagram. The songwriting contest is another installment in a series of creative industry interventions by Greysage Consulting, which establishes itself firmly as one of the critical stakeholders in the music subset of the ecosystem. It recently organised a webinar to discuss the importance of BBC 1 XTRA produced Afrobeats Chat, which was subscribed by more than 30 record producers and songwriters. Similarly, last year Greysage made a modest effort to bridge the knowledge gap on copyrights and royalties among upcoming artistes and creators of music. It held a well-attended event tagged ‘Secure The Bag’, a monetization meet-up at Tenstrings Music Institute, Lekki, Lagos, which had facilitators such as DJ Coublon, Klem, Fiokee, OyindamolaAmeen, Damilola Akinwunmi and Femi Salawu. While reinforcing the commitment of Greysage to the music community and by extension the whole gamut of the entertainment industry, Akinyemi disclosed that it had a lot lined up to help galvanize development in the industry. “We are at a critical period when the demand for Afrobeats by the international audience has spiked. It is critical that all stakeholders get involved especially through knowledge sharing to make the growth sustainable,” he submitted.
educational pursuit of students in public schools who do not have access to online learning that private schools are providing, because of its cost. There is also the fact that it has brought a big relief to families whose children would have remained idle, probably exposed to all manner of vices, if a programme of this nature had not been provided. Tatiana Moussalli Nouri, co-founder and chief executive of Wazobia Media, drove home the value the media group was out to add for the duration of the schools’ closure with the provision of the programme. “The educational broadcast by the Wazobia Media Brand is one driven by the commitment of the organisation in adding value through investments that are incalculable in educating students and members of the
society”, she said. “The daily broadcast has redefined learning for students, especially during a global pandemic as this ingenious engagement has afforded millions of students across Nigeria the opportunity to excel at their forthcoming examinations”. Despite the multi-level government policy on the ease of lockdown and the gradual re-opening of tertiary institutions on September 14, 2020, with the re-opening of primary and secondary schools tentatively fixed for September 21, the daily Lessons on Wazobia Media is one to be benefited from beyond the pandemic by students and parents looking to enjoy the benefits of free remote learning and after school lessons to brush-up on subjects taught in school, as well as, giving them an edge among their peers.
Wazobia Media: Showing leadership amid challenging times
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or 13 years, Wazobia Media has endeared itself to Nigerians as a provider of quality entertainment to all classes of people within the country, with the motto of being a truly indigenous media platform. The media group has carved a niche for itself through its unique delivery of highly entertaining contents and productions that has earned it accolades and respect from various sections of the public across the country. The COVID-19 pandemic provided an opportunity for the media organisation to go a step further in living up to its reputation of an indigenous media brand that exudes the Nigerian spirit of na we own. This, it has been doing, by making itself an enabler of inclusive learning during the period
of school closure that became necessary to avoid the spread of the coronavirus among students. The media group has over the last five months been running a remote learning programme for students in public secondary schools across Nigeria, using its platforms – Wazobia FM, Wazobia Max TV and Wazobia Television. The programme, which started in partnership with the Lagos State Government through the Lagos State Ministry of Education, aims to afford students opportunity to receive learning on all the key subjects – English Language, Mathematics, Physics, Chemistry, Biology, Economics, Financial Accounting, Literature in English and Yoruba – from the comfort of their homes for the duration of the lockdown, such that they would not feel its impact in terms of disruption of their www.businessday.ng
school curriculum. It runs four hours every school day, on Wazobia 95.1 FM, from noon to 2 pm, Wazobia Max TV and Wazobia TV from 2 pm to 4 pm. It also has a WhatsApp segment that provides opportunity for call-in and messaging by students during the remote classes. The programme is one for which Wazobia Media has received a thumbs-up from the Lagos State Government and other stakeholders, because of its uniqueness, which emphasizes the ingenuity of the media group in proffering a solution to a national problem when it is needed most. Folashade Adefisayo, commissioner for education, Lagos State, commended the organisation for aligning with the state government in providing an ingenious learning platform for students during the pandemic.
She said due to lack of accessibility to online learning platforms by most students in the public-school sector, it became imperative to explore other communication channels with large followings and deeply rooted connections across various communities within the state. Adefisayo said Wazobia Media was providing that alternative with the remote learning programme on its platforms. The programme is another way the organisation is adding value to society, apart from provision of quality broadcasting for which it is well known. Indeed, the organisation has gone beyond adding value to demonstrate ability to take charge and lead from the front in time of a national emergency. The contribution is significant because of the huge impact it is making on the
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Friday 18 September 2020
BUSINESS DAY
THE WEST Dangote picks Ogun as Southwest pilot state for 117,000 women empowerment • Expended N4.4bn on various community projects within Ibese cement plant RAZAQ AYINLA, Abeokuta
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s part of the Aliko Dangote Foundation’s outreach to people of various tribes in the country with a dedicated mission to adding value to people’s lives in the core areas of health, education and economic empowerment initiatives, Ogun state has been picked as a pilot state for women empowerment in the Southwest region of the country. Recall that Aliko Dangote, President of Dangote Industries Limited had earmarked N10 billion for empowerment of women in the 774 local government areas of Nigeria and part of economic empowerment to vulnerable women across the country to either start or boost already established businesses for some states, majorly in the North, had benefited from in recent time. But, the move to begin the disbursement of one-off, unconditional cash transfer of N10,000 each to 117,000
women in Ogun, Oyo, Osun, Ondo and Ekiti states started at the Dangote Cement Plant at Ibese in Ogun state on Wednesday when Joseph Alabi, Head, External Relations, Dangote Cement Plant, Ibese announced commencement of Southwest edition
with 1,000 women at Ibese in Egbado North Local Government Area of Ogun state. The choice of Ogun state as pilot state in Southwest, according to Alabi, is borne out of the fact that Dangote Industries Limited has two operational plants, name-
ly, Ibese Dangote Cement Plant in Egbado North Local Government and Dangote Granites Mines Limited at Ajebamidele in Ijebu-Igbo Local Government Area of the state. Reeling out capital projects executed since 2011 by Dan-
L-R: Kayode Adio Kusoro, Olu of Aga Olowo; Daniel Salako, Aboro of Iboro; Azad Nawabuddin, director, Dangote Cement Plant, Ibese Plant; Oluwadare Kehinde, Ogun State commissioner for Youths and Sports and Adeyanju Olusesi, member, Ogun State House of Assembly at the opening ceremony of 2020 Acutherapy training organised by the Dangote Cement Plc, Ibese as part of its Host Community Youth Skill Acquisition and Empowerment Programme in Ibese Plant Ogun state.
FG to build 1,000 low-cost houses in Ibadan, partners Oyo govt REMI FEYISIPO, Ibadan
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he Federal Government through the Fe deral Housing Authority (FHA) is to construct over 1,000 lowand medium- cost houses in Ibadan, the Oyo state capital. The houses will sit on 1,000 hectares of land at Ajoda New Town, along Ibadan-Ife expressway. The Managing Director/ Chief Executive Officer, FHA, Gbenga Ashafa, after a familiarisation tour of the project , said the housing scheme was aimed at providing affordable homes for Nigerians, which is part of the promise of the President Muhammadu Bu-
hari administration. Ashafa, who was accompanied by some FHA directors, said the builders are already doing due diligence before erecting the buildings in line with the standards of FHA. Describing Ajoda New Town project as a “work-inprogress,” pointed out that the estate is open to all Nigerians regardless of wherever they live. According to him, what the Federal Government through the National Housing Scheme (NHS) has done is to get some Nigerian developers to put in their expression of interest. We gave them the land to build. With that, we became partners. And then through the quantities, they determine the terrain of the land. They have said that
there are some portions of the land which used to be dump sites. This shows the thoroughness of our approach. When we are about to undertake a project, we do the needful by looking at the soil type. Our engineers will design. In this case, the houses built so far have reinforced foundation. Ashafa however seized the opportunity to seek the partnership and support of the Oyo State Government in the area of provision of infrastructure, so as to open up the area (new site) for more development opportunities for Public Housing. “We are partnering with the Oyo State Government. We have requested the governor to please intervene in the area
of the major road in the community. If it is expanded and tarred it will open up the estate. The road will also extend to the police formation. All those informed the sense in choosing this location. The security of our people is germane to us. The bottomline as far as President Muhammadu Buhari and minister Babatunde Fashola are concerned is that the final product must be affordable to an average Nigerian. “I have gone through the project and I have seen that the amount being quoted is affordable to the middle and upper low income earners. When you compare that to what you get outside, you will know that this government is trying.”
EKSG hands over 10,000 hectares of land to Odua Investment for farming activities REMI FEYISIPO
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kiti State Government has handed over a 10,000 hectares agricultural land to Odua Investment Company for cassava cultivation in Oke Ako and Iyemero Ekiti. Leading the team of Odua Investment to the farmlands at Oke Ako Ekiti, the Commissioner for Agriculture and Food Security, Olabode Adetoyi said that the state
government’s approach to investment drive under Kayode Fayemi was a total release of land, backed with certificate of occupancy, duly signed and presented to the investor. Adetoyi explained further that the system would guarantee the investor’s taking possession of the land for a period of 99 years, and secure the confidence of the investors at putting in their best and resources for the success of the investment.
The Commissioner said that the Ipao/Oke Ako/Iyemero axis in Ikole and Oye local government areas of the State have been designated as the State’s Agricultural Processing Zone where farming and processing activities were fully encouraged by the government. He said the zone had since been witnessing the influx of agricultural products processing firms such as the ArogBio, FMS, Terra Villam and Promise Point, with their specialty in the process of cassava, while
the axis has also accommodated Nigeria Cassava Growers Association and Cotton Farmers Association. Adetoyi assured the investors that the state would support them to achieve their desired results, adding that their lives and investment are safe because government was determined to overhaul the security network in the axis with the establishment of the Western Nigeria security network (WNSN) code -named Amotekun Security Network.
gote Group, Head of External Relations, disclosed that Dangote Industries Limited had expended N4.381 billion in the last eight years of creation in Ogun state, focusing on construction and repairs of roads, building of blocks of classrooms, construction and repairs of healthcare facilities, provision of boreholes, provision of some electricity transformers, among others. Speaking on empowerment initiatives at Dangote Cement, Ibese skill acquisition and empowerment programme, Alabi noted that a sum of N53.1 million had been spent as scholarship and bursaries on 635 students drawn from all communities under Ibese cement plant in addition to the vocationallytrained technicians from the Dangote Academy in Obajana, Kogi state. He added that Dangote Industries Limited had begun rice out grower programme in Ibese as part of agricultural empowerment for teeming jobless youths which will in returns, create wealth and help government fight food insecurity and deficits in bal-
ance of trade saying several socio-economic interventions were also provided during the state-declared lockdown as a result of the COVID-19 pandemic. Also, Azad Nawabuddin, Plant Director, Dangote Cement Plant, Ibese, Ogun state, corroborated Alabi’s statements on the empowerment initiatives on education and health, saying “education is power, skill is power, that is why we are encouraging our people to be educated. Responding on behalf of the Ogun state government, Commissioner for Youth and Sports, Kehinde Oluwadare, commended Dangote Industries Limited on their efforts to create shared value among all residents of the country irrespective of tribe, religion and political affiliations, saying it’s no news that government can’t do everything alone. “We need to commend Alhaji Aliko Dangote for all these economic interventions, it is crystal clear that government can’t do it alone, hence, we need partnership for good governance”, he said.
Community threatens farmers with eviction over demand for N350m compensation from police Ola John, Osogbo
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la Community in Osun State, has threatened to evict farmers, whose farmlands were taken over by the Nigeria Police Force for the establishment of Mobile Police Training College, who had demanded for a sum of N350 million as compensation. Addressing journalists in his palace, Orangun of Ila, Oba Wahab Adedotun, flanked by Orangun of Oke Ila, Oba Adedokun Abolarin, said the demands for huge compensation by the farmers may force leadership of NPF to relocate the college to another town. The royal father, who said over 600 new claimants had instituted cases before court, seeking compensation for the land the community voluntarily gave them to farm and directed that all pending cases on the matter be withdrawn immediately. Oba Oyedotun also said demands of the farmers would be viewed as delibrate attempt to force Federal Government to relocate its only institution located in the town to another place. To assuage their losses, the farmers, majority of whom are non indigenes, Orangun said the community had on its own raised some money that
would be given to them. But rather than accepting their offer, the monarch said the affected farmers had instituted several suits to demand for outrageous amount from the police authorities. “The entire Ila Orangun people hereby seize this opportunity to inform the government that the land housing the Police College was given to the government as part of our contribution to our state and the federal government. “Nobody should claim any form of monetary compensation from the government either on the land or for the farm produce on the land. All the suit in the state high court or any other courts in the should be withdrawn. “We are aware that the amount of monetary claims quoted by the individual farmer in respect of the farm products are highly inflated and unreasonable. We are also aware of the fact that some people numbering about 600 present themselves as new claimants of additional compensation in court. “We dissociate ourselves from these claims. Ila -orangun indigenes would deem the actions of the farmers as intentionally calculated to forestall the development of the people of the community and scare away potential investors.
Team: RAZAQ AYINLA, Head; Correspondents: REMI FEYISIPO, Oyo; SIKIRAT SHEHU, Kwara; KORETIMI AKINTUNDE, Ondo; OLA JOHN, Osun; Graphic: Fifen Famous www.businessday.ng
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Friday 18 September 2020
BUSINESS DAY
POLITICS & POLICY Edo 2020: PDP, APC, BEDC in verbal war over alleged plans to rig election IDRIS UMAR MOMOH & CHURCHILL OKORO, Benin
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ess than 48 hours to the much-talked about Edo State gubernatorial election, the People’s Democratic Party (PDP), the All Progressives Congress (APC) and the Benin Electricity Distribution Company (BEDC) Plc, Thursday engaged in verbal war over alleged plans to buy voters and disrupt power supply. Chris Nehikhare, Edo State PDP publicity secretary at a press briefing in Benin City, accused the national leader of APC, Ahmed Bola Tinubu of dispatching a Helicopter loaded with money to the state for the purpose of vote buying. Nehikhare also accused BEDC of working in connivance with the leadership of APC to disrupt electricity supply across the state, especially during the various wards, local governments and final collation of results. But reacting, the Edo State Publicity Secretary of APC, Chris Azebamwen described the allegations as baseless and unfounded. Azebamwen said the al-
Godwin Obaseki
legations showed the desperation of PDP to engage in negative propaganda when it has no political manifestos to sell to the people of the state. “PDP started by issuing a statement that Bola Ahmed has given directives to all the 20 local governments as well as all the development area councils in Lagos to contribute certain amount to the election in Edo State. “Tinubu is not the governor of Lagos State; he has no authority over the local govern-
Osagie Ize-Iyamu
ment areas. In any case, local governments now have political autonomy from the state. The allegations should be discountenanced. It is ridiculous and baseless,” he said. Also in its reaction, the management of BEDC described the allegations leveled against it by the PDP as cheap blackmail. Head of Public Affairs of BEDC, Adekunle Tayo, said the electricity company was a business entity and apolitical. “Is a cheap blackmail,
Cross River North: APC aspirants close ranks to defeat PDP James Kwen, Abuja
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he aspirants who contested for the All Progressives Congress (APC) Senatorial ticket for Cross River North District have resolved to support winner of the contest, Joe Agi to defeat other candidates, particularly that of the main opposition People’s Democratic Party (PDP), Stephen Odey. The Independent National Electoral Commission (INEC) had scheduled Cross River North Senatorial by-election on October 31, following the death of Rose Oko who represented the district. Briefing journalists at the end of a meeting between Cross River APC stakeholders and the party’s National Caretaker Committee, one of the aspirants, Harris Odey said their decision to support Agi was based on an earlier agreement by all of them to support whoever that emerged as candidate. Odey acknowledged that the other aspirants have issues with the primary election but following the deci-
sion of the party leadership to adopt Agi after reviewing report of the primary election appeal panel, they have to abide by the party’s decision and work for its victory. “We all have issues but at the end of the day the party hierarchy reviewed the appeal panel report and decided in favour of Barr. Joe Agi, SAN, as the flag bearer. We are now supporting him to win the seat for the APC. This is the bigger picture for us. We were five contestants imminently qualified, there was going to be one winner and we all agreed that we are going to support this winner. “We are also using this opportunity to appeal to other states that are having issues, once they have utilised the party’s machinery for reviewing appeals they need to be able to look forward to stop the intra party and begin to prepare for the interparty contest and if we do that our party can only become stronger,” he said. Another aspirant, Fidel Ogoro declared that the Senatorial election is a ‘must win’ for APC which has everything www.businessday.ng
there is no iota of truth. BEDC is purely a business entity, as such, we remain apolitical. Even the product we distribute is a universal product and we remain neutral. “We don’t have any special interest in any political party or any other activities rather than just pure observer just like other citizens,” he added. In his press briefing, the PDP publicity Secretary had urged the Independent National Electoral Commission (INEC), observers and other
stakeholders in the electoral process to take note of the plots and ensure that necessary actions are taken to avert the sinister plot to subvert the will of Edo people during the election. “We once again bring to the notice of the general public, lovers of democracy and other stakeholders in the forthcoming Edo State governorship election holding on Saturday, September 19, 2020, plots by the All Progressives Congress and the leader of the party in Lagos, Bola Ahmed Tinubu, to deploy private jets and helicopters to move money from Lagos to Edo State to rig the poll in favour of the APC. “We have it on good authority that Tinubu, working in cahoots with the leadership of the APC in Edo State, has gone a step further from the inciting broadcast by sending down helicopters and private jets loaded with money in an attempt to buy our state and annex it as a part of his fiefdom. “We want the electoral umpire, Independent National Electoral Commission (INEC), observers and other stakeholders in the electoral process to take note of this move and ensure necessary
actions are taken to avert the sinister plot to subvert the will of Edo people come Saturday, September, 19. “Edo people are, by this notice, alerted to the plot to trample on their power of choice and lock them in perpetual servitude to the whims and caprices of a godfather in Lagos,” he stated. While noting that all eligible voters are in total support of the state Governor, Godwin Obaseki, who is also the party’s candidate, he appealed to them to come out en-masse to vote as the election would be peaceful. On the allegations against BEDC, he urged the National Electricity Regulatory Company (NERC) to sanction the distribution company if it goes ahead with orders allegedly issued by the management in connivance with the APC, to disrupt power supply to the collation centres across the state at critical times on Saturday with a view to compromising the election. “We are alerting BEDC and its management that we are aware of their plot and Edo people would vehemently resist the role of cooperates in attempting to undermine their will in this election,” he said.
Edo 2020: YIAGA Africa raises alarm over alleged inducement of voters by APC, PDP to win the election, saying: “It is for this reason that some of us even though we are not too pleased with the outcome of the election (primaries) decided that we have to put our differences aside and work together as a party”. He said: “Our colleagues who are not here, whatever grievances they have they should sink them and join us to work together to deliver Joe Agi, the one that the party has given the mandate.” On his part, the APC Chairman in Cross River, Mathew Mbu stressed that the party stakeholders were united to win the Cross River North by-election which would be a prelude to the party’s takeover of the state in the 2023 general election. “APC has come of age in Cross River State. What has been keeping us from winning elections is the fact that we were not working as one. We have all realised that. Majority of real people in Cross River State are in our party. A house divided against itself can’t stand and as a family we realised that we must come together and nothing can stop us,” Mbu said.
Idris Umar Momoh, Benin
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non-governmental organisation, Yiaga Africa on Thursday raised the alarm over alleged incidence of voter inducement with money and gifts in 10 local government areas, ahead of the Saturday gubernatorial election in Edo State. The Citizen-led Organisation at a press conference in Benin City alleged that the inducement was carried out especially by the All Progressives Congress (APC) and the People’s Democratic Party (PDP). Aisha Abdullahi, Yiaga Africa Watching the Vote, 2020 Edo Election Observation Mission listed the 10 local governments to include Igueben, Oredo, Ikpoba/Okha, Etsako Central and Owan West. Others are Ovia SouthWest, Egor, Ovia North-East, Esan West and Esan SouthEast Local Government Areas. Abdullahi alleged that the inducement started during the campaigns by the political parties.
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She however, vowed that the organisation would expose the Independent National Electoral Commission (INEC), if the results announced were manipulated and do not match the polling units’ results. She also said if the official results announced by the INEC reflect the polling units’ voters, it will confirm it. Abdullahi, who noted that voter inducement has taken centre stage at the expense of issue-based politics in the run-up to the election, added that since it commenced the Pre-Election Observation (PREO) in July, 2020, voter inducement has been a recurring decimal. “Political parties, especially the APC and PDP, are investing in the distribution of money and gift items as a strategy to swing voters,” she said. “The pre-election environment revealed violent campaign rhetoric and hate speech, excessive use of force by political parties, especially the APC and the PDP, and unhealthy electoral competition. “All forms of brigandage and violence defined the pre@Businessdayng
election context. Yiaga Africa’s reports show that the incidents of violence were prevalent in 13 of the 18 local government areas. She expressed concern that cases of coronavirus may increase in Edo State, as political parties and their supporters breached the Covid-19 protocols. “Party campaigns were sign-posted with poor crowd management and reckless breach of Covid-19 safety protocols (wearing of face masks, social and physical distancing and hand washing. “Yiaga will provide accurate information on the quality of process and ascertain if the official results announced by INEC reflect the total vote cast,” she added. Also speaking, Yiaga Africa’s Executive Director, Samson Itodo, urged INEC to remain neutral in the conduct of the election. He said the organisation would deploy over 500 of its trained observers to ensure that all results of the election declared by INEC at the 192 wards are monitored and posted to its database.
Friday 18 September 2020
BUSINESS DAY
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NEWS
Qatar creates first-class labour system with new minimum wage ahead 2022 World Cup
L-R: Abel Su, marketing director, Beebeejump Solar International; David Idem, regional sales manager, South-west; Rotimi Adebari, chief executive officer, Power Alternatives Solutions; Charlie Wen, director, EPC Department, Beebeejump Solar International, and Catherine Eloh, sales manager, Power Alternatives Solutions, during the launch of Power Alternatives Solutions Office, official partner of Beebeejump Solar international in Abeokuta, Ogun State, yesterday.
INNOCENT ODOH, Abuja
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Nigeria’s green metals deposits lie fallow despite expanding global market STEPHEN ONYEKWELU
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igeria stands a chance of taking advantage of the race by both developed and developing economies and investors searching for green metals to establish a greener post Covid-19 recovery. Green metals include copper, palladium and platinum. Each plays an important role in current and emerging technologies that may help decarbonisation. The rise of green metals has been of increasing interest in the industry in the last few years. They have already proven to be resilient to economic downturns. At a time when oil prices were crashing, palladium prices increased by 53 percent over the past 12 months and by more than 1,500 percent since 2009. Platinum and copper have bounced by 60 percent and 40 percent respectively from their lows in March. Last year, Abubakar Bawa Bwari, minister of state for mines and steel development said the Federal Government has discovered high-quality platinum
group elements in Kuchiko village, Suleja, in Niger State. However, Nigeria largely lacks the kind of accurate, verifiable data that speaks about both the quality of mineral in the country. No investors would bring their funds into such a foggy geoscience data environment. It also makes it almost impossible for Nigeria to take advantage of the current opportunities in green metals. A preliminary report from Abuja-based AG Vision Mining Limited, on a mining site in Suleja local government area shows a high deposit of platinum and a quality higher than that of South Africa. However, Bwari said the government has voted N15 billion for exploration of minerals in Nigeria to generate detailed geoscience data of the quality and quantity of available minerals in the country. “No investor will take us seriously if we are unable to provide the kind of accurate, verifiable data that speaks about both the quality and quantity of mineral we have in Nigeria.” Platinum seems set to play a vital role in emerg-
ing technologies. Hydrogen has generally been produced with fossil fuels. The carbon footprint of producing hydrogen from natural gas is higher than burning the gas. Platinum is the most effective catalyst in hydrogen-powered fuel cell electric vehicles (FCEVs) using Polymer Electrolyte Membrane electrolysers. The only output from these FCEVs is water; there are zero emissions. Nigeria has a copper ore deposit of over 10,000,000 metric tonnes, making it one of the most coveted places in the world for international buyers to purchase copper ore. This vast deposit creates a great opportunity for people living in Nigeria who have an interest in copper ore mining or export to take advantage of, particularly at a time of boom for green metals. China imports 40 percent of all global copper supply. It has put in place a direct fiscal stimulus of $506 billion, $140 billion issuance of special treasury bonds and approval for local governments to borrow up to an additional $527 billion. Much of that stimulus will be spent on infrastruc-
ture. The biggest use of copper in China is in building and construction. As many economies progress along with their energy transitions, the global economy as a whole will depend on having enough of these materials in its transition towards electrification through lower-carbon energies and away from fossil fuels. Nigeria needs to position its mining sector to attract foreign direct investments. Nigerian mining companies need to look and be investable and welcome the challenge that is yet to come, whilst improving sustainability metrics over time. With the 4th Industrial Revolution and the global push for the energy transition, the need for battery materials is becoming stronger than ever. Also, amid this boom in green metals mining, pressure has been rising to prioritise Environmental, Social and Governance (ESG) metrics from investors, regulators and activists alike, and increasingly mining companies have no choice but to incorporate ESG targets in their operating plans to continue receiving investment.
COVID-19 lockdown ruptures Transcorp Hotels’ profit margins ... as losses hit N1bn a month HOPE MOSES-ASHIKE
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ovid-19 pandemic has hit businesses around the world and Nigeria is not left out. Hospitality giant Transcorp Hotels Plc is not left out and is losing more than a billion naira a month as a result of the coronavirus induced lockdowns imposed by the Federal Government. It may likely also lay off some staff as it is operating at below 30 percent occupancy ratio with a forecast that does not see a rebound to pre-Covid levels of opera-
tions until at least 2024. The company, which owns two hotels including the flagship Transcorp Hilton property in Nigeria’s capital, Abuja, has been paying salaries of employees despite the lockdowns and hit to business, according to managing director/CEO, Dupe Olusola. “We paid 100 percent of salaries for March, April and May and struggled not to let go of any staff, despite the lockdown imposed on the hospitality business by the government,” Olusola said in a press briefing yesterday. www.businessday.ng
“We have however reached a time critically where you cannot continue.” Transcorp has been facing mounting losses of N1 billion a month since March as flights and hotel bookings get cancelled due to the pandemic. The hotel has engaged with the government on possible palliatives to no avail, according to Odusola. “We have engaged on tax rebates and possible support for our employees and are left with no other choice.” Transcorp may lay off up to 40 percent of current staff as a result of the crises.
Its main banquet hall in the Abuja Hotel that could hold up to 1,000 people is now mandated by law to entertain only 250. “The business continuity and survival is what we seek now,” Odusola said. Transcorp is raising N10 billion by way of rights issue to strengthen its balance sheet. It is also seeking interest reduction from the Bank of Industry (BOI) on existing loans to help tide it through the rough patch. “We have put a temporary halt to our hotel expansion plans in Lagos and Port Harcourt,” Odusola said.
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il-rich Gulf State of Qatar is rapidly transforming its workforce with far-reaching reforms that will create a first-class labour system in the country with a very motivating new minimum wage, especially as the nation prepares to host the FIFA World Cup in 2020. This week, the Qatari government announced a nondiscriminatory minimum wage and the removal of the NoObjection Certificate (NOC) requirement to change jobs for all employees in all sectors including domestic workers, combined with the removal of the exit permit requirement earlier this year, according to a statement issued by the Government Communication Office (GCO) of the State of Qatar. “The government has set the minimum wage for all private sector workers, including domestic workers at QAR 1,000 per month as a basic wage as well as QAR 500 per month allocated by the employer to for accommodation expenses and QAR 300 per month for food, unless the employer already provides adequate food or accommodation for the employee or domestic worker,” the statement said. The minimum wage, according to the statement, will be one of the highest in the developing world, far exceeding the equivalent rates in the origin countries of almost all migrant workers in Qatar. “It is the first minimum wage of its kind in the Middle East and will provide extra in-
come to thousands of workers and their overseas dependents at a critically important time for families around the world. Because of the change, we expect billions of additional pounds to be remitted overseas in local currencies or re-invested in Qatar’s economy each year. “This marks the beginning of a new era for Qatar’s labour market. The reforms take place against the backdrop of Qatar’s ongoing preparations to host the 2022 World Cup as a milestone moment of Qatar National Vision 2030. The World Cup aims to create a positive and lasting legacy by supporting Qatar’s efforts to transform the economy, accelerate reforms and provide inspiration to millions of people across our turbulent region,” the statement added. It noted that the new law will come into force six months after its publication in the official gazette, stressing that in the meantime the government is working with local businesses to update their payroll systems and ensure all employment contracts are in line with the new legislation. The minimum wage was decided following extensive consultations with a specialised national committee and consultations with the International Labour Organisation (ILO) foreign governments, NGOs, local businesses and workers committees. A newly formed minimum wage committee will be responsible for reviewing the minimum wage and making any necessary adjustments.
Chrio Creative re-positions brand to reflect offerings across sectors DANIEL OBI
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n a bid to support organisations’ growth, especially small and medium scale enterprises (SMEs), in Nigeria’s challenging environment, Chrio Creative Studios, a start-up creative and communication agency specialising in brand identity design, product design for web and mobile interfaces, amongst others, has re-launched its brand and website to satisfy diverse organisations’ integrated marketing needs. The organisation, passionate about creating unique identities and strategically transforming brands through visual storytelling, said it has evolved its key service offerings to better support SMEs digital marketing needs across all industries in the region. Chrio’s continued digital communications evolution has seen an expansion in its brand identity, product design, creative marketing and brand strategy and engineering portfolio. “We understand the role a strong and unique brand identity plays in projecting an organisation’s narrative and @Businessdayng
informing customer’s perception. We are passionate about being the storytellers and visual creators that elevate brands especially SMEs, having noticed the struggle most SMEs have with their brand identity and customer engagement.” said Chibuikem Atueyi, lead partner, Chrio Creative Studio, in a statement. “We believe that affordable creative marketing doesn’t equate to poor brand identity and positioning. Chrio will bridge the gap between affordability and innovation, amplifying our clients’ brand equity by creating a meaningful visual connection for them and their customers. With a clear focus on developing strategic solutions that helps brands not only meet, but exceed their goals’’ Over its two-year operation, Chrio said it has shown agility in supporting clients’ business needs with timely communications and creative marketing visuals. Chrio’s services have helped clients adapt to their changing environments and execute effective internal and external communications, elevating their brand awareness, perception and engagement.
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BUSINESS DAY
NEWS
Adron Homes offers 40% discount on properties CHUKA UROKO
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L-R: Tobusun Alake, special adviser to the governor of Lagos State on innovation and technology; Olalere Odusote, commissioner for energy and mineral resources, Lagos State, and Ade Bajomo, executive director, information technology and operations, Access Bank Plc, during the 2020 Lagos Smart Meter Hackathon in Lagos, yesterday. Pic by Olawale Amoo
At 13.2%, Nigeria’s 29-month high inflation rate leaves economy with more losers ENDURANCE OKAFOR
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hile Nigeria’s inflation rate has remained above the 2015 set preferred of 6-9 percent, the 13.22 percent reported in August is the highest Africa’s largest economy has witnessed in more than two years. From 9.5 percent in 2015, Nigeria’s Consumer Prices Index (CPI) which measures inflation skyrocketed to 13.22 percent (year-on-year) in August 2020, according to data by the National Bureau of Statistics (NBS). A higher cost of goods and services means additional suffering for many Nigerians whose purchasing power have already been eroded by the country’s current economic realities. An inflation rate above the monetary policy rate (12.5 percent) also means a reduction
in access to finance for small businesses as interest on loans is as high as 25 percent, going against the central bank’s drive to support the economy. The inflation rate is a key determinant in deciding the policy rate – the rate at which commercial banks borrow from the Central Bank of Nigeria. It is also one of the important factors which banks consider in pricing their loans. According to Ayodeji Ebo, MD, Afrinvest Securities Ltd, the high inflation rate in Africa’s most populous country leaves the economy with mostly losers. “Real disposable income and investment returns continue to shrink. The higher cost of living for Nigerians, lower demand for goods & services, higher cost of doing business, negative impact on profitability margin,” Ebo said. With an inflation rate that is higher than South Africa (3.2 percent) and Kenyan (4.36)
2 months after flight resumption, only 25% of fleet currently in use IFEOMA OKEKE
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wo months after domestic flight operations resumed in Nigeria, domestic airline operators have disclosed that only 25 percent of their total fleet are currently flying. The airline operators who linked this to low passenger patronage said government’s support is urgently needed, as the situation is not encouraging. Speaking during the election of new executive members to run the affairs of the Airline Operators of Nigeria (AON), Abdulmunaf Yunusa, new president of the association and founder of Azman Airline said as a result of the Covid-19, members of AON have faced serious problems. Abdulmunaf said now is the time for the government to
support the airlines or else, the commercial aircraft may be reduced and jobs lost. He said the association has heard of the government’s proposed N27 billion intervention funds but at the end of the day, it is only what the association sees, it can work with. He disclosed that since domestic flight operations resumed, the airplanes operating are not more than 25 percent of the total airplanes owned by domestic carriers, adding that this is not encouraging. The AON, a body of domestic airline owners, yesterday elected new executive members to run the affairs of the association. The new president of the association is Abdulmunaf Yunusa, founder of Azman Airline and president of Azman Group, while Allen Onyema, chairman/CEO of Air Peace, is vice president. www.businessday.ng
put together, return on investment in Nigeria is negative in real terms. Exacerbated by the recent directive by the central bank that slashes the minimum interest rate banks pay on savings deposits to 1.25 percent from 3.75 percent, the negative interest earned on deposits by Nigerian savers will widen to -11.5 percent from -8.7 percent when inflation rate of 12 percent is factored. From a record double-digit return on investment in government securities some three years ago, yields on a short instrument like Treasury Bills has crashed to about 4 percent, the lowest record since BusinessDay started tracking the data. “Savers continue to lose considering the current interest rate environment,” Ayo Ayorinde Akinloye, a Research Analyst at CSL Stockbrokers Limited said, adding that “naira investors are losers too.
“The sustained negative real return means USD inflows will remain scarce,” he added. According to Kalu Aja, the CEO of the Abuja-based AfriSwiss Capital Assets Management Ltd when local inflation goes up, “winners are holders of real tradable assets like dollars and gold…and earners of foreign currency. Losers are holders of Naira and earners of Naira.” While food inflation (16 percent in August) has remained the key catalyst responsible for driving Nigeria’s core inflation rate, the new directive by President Muhammadu Buhari’s that instructs the central bank to place a ban on FX for food importation, when enforced will, according to analysts, increase the cost of living in Nigeria. The president on the 10th of September stated that “nobody importing food or fertiliser should be given foreign exchange from the central bank”.
Osinbajo unveils Eko MSMEs Fashion Hub-1 on Friday DESMOND OKON
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ice President Yemi Osinbajo is expected on Friday (today) to virtually unveil the Eko MSMEs Fashion Hub-1, in Ikeja, Lagos. Lola Akande, Lagos State commissioner for commerce, industry and cooperatives, who disclosed this on Thursday, said the Fashion Hub-1, first of its kind located at 5 Ogunsiji Street, off Alade Market, Allen Avenue, Ikeja, would be accessible to skilled and semi-skilled fashion design experts at a ‘token fee of N2,500 per day.’ She noted that the hub was the state government’s effort to further create wealth, boost employment and grow the GDP of Lagos. Akande also announced the 5th edition of Lagos State Micro, Small and Medium Enterprises (MSMEs) exclusive fair, with the theme: “MSMEs in the time of Covid-19: survival strategies to
beat the odds.” According to her, the Eko MSME exclusive fair is an event where entrepreneurs are given stalls free of charge to showcase their products, improve sales, network and make new contacts. “As we are aware that new technologies are springing up faster than we can create and service innovations are taking place at lightning speed, it is imperative that this administration develops, designs and implements services and policies that would benefit MSMEs in the state,” she said. Akande stated that the current administration was leaving nothing to chance in the development and continuous growth of the MSME sector in Lagos, saying that the fashion industry was driven almost by MSMEs and that it was believed to be one of the most promising alternatives to the nation’s dwindling oil fortunes.
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etermined to give more Nigerians opportunity to own homes, Adron Homes and Properties is offering 40 percent discount to subscribers and subsequent buyers from any of its estates nationwide. Adron Homes is one of Nigeria’s leading property investment and development firms with strong footprint etched in 34 estates located in various parts of Nigeria, including Lagos, Abuja, Ogun, Oyo, Osun and Nasarawa. The 40 percent discount on its properties is the kernel of its independence anniversary promo tagged ‘Adron 60-60Empowering Everyonepromo’ which also comes with business start-up kits as well as skills acquisition opportunities. The business start-up gift items to be received with every property or land purchased are grinding machine, sewing machine, tricycles, mini-bus, cars and much more whilst skills acquisition programmes range from ICT, photography, food processing, fishery, catering, fashion designing, hair-dressing, titling. Officials of the company explained at the unveiling of the promo on Thursday in Lagos that, besides celebrating Nigeria at 60, the promo is also aimed to cushion the impact of the global health emergency called coronavirus for which many households have lost their means of livelihoods and some companies are now operating sub-
optimally, laying off staff or cutting their salaries. Though its main target market are the mid-income earners, Adron Homes has, over the years, established itself as a formidable real estate company that has successfully demystified land and property ownership for the mass market. Introducing the ‘60-60empoweringEveryonePromo’ is, therefore, a bid to give its new and existing customers a break in tough times whilst deepening impact. “We are giving back to loyal customers and rewarding new clients by supporting them in upping their business skills and setting them up with diverse small business start-up kits. With our up to 40 percent discount on land and properties bought, customers can enjoy these benefits by subscribing to any of our products with initial deposits as low as N25,000 only,” explained Folashade Oloruntoba, the company’s group chief responsibility officer. According to Oloruntoba, “you necessarily don’t have to choose one or the other. The ‘60-60 Empowering Everyone Promo’ presents a unique opportunity to start and grow your business whilst owning real estate at your own pace.” Ayodeji Ojo-Omoniyi, group executive secretary, added that “at Adron Homes & Properties, we are constantly offering value for money on all our properties. Now, with this promo for celebrating our dear nation, Nigeria, we are deepening impact of the highest level there is.”
Our investments targeted at creating jobs for Nigerians – NUFBTE JOSHUA BASSEY
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ith 80-room hotel operational in Lagos, bottle water production plant, flourishing event centres and rental business, and another three-storey hotel currently at the construction level in Ibadan, Oyo State, the National Union of Food Beverage & Tobacco Employers (NUFBTE) says its target is to create more job opportunities for Nigerians. President of NUFBTE, Lateef Oyelekan, who stated this while speaking with journalists in Lagos, also observed that current economic realities required labour unions to embrace financial literacy. According to the labour leader, the increasing investments by NUFBTE was also to secure the union and its members against high-level disruptions in the economy, and the rising influence of technology and artificial intelligence in workplaces, leading to many companies laying off their workers. The implication of this, he explained, is that statutory check-off dues are nose-diving; meaning that labour must @Businessdayng
become creative and design ways of staying financially relevant to members. “There are uncertainties in the economy; companies are introducing machines, and workers are losing their jobs. We cannot continue to rely on pittance coming in as check-off dues. Also, government alone cannot provide jobs. The various investments we’re making are to create jobs and ensure that we stay relevant in the face of the current economic uncertainties,” said Oyelekan Meanwhile, the union has dismissed an allegation that it is factionalised. According to Oyelekan, NUFBTE is not divided, adding that the union only suspended its members who went against the rules. “The union is not in any way factionalised. The leadership of our union remains intact without any division,” said Oyelekan. He further told newsmen that one of the suspended members- Onoja Peter was found guilty of anti-union conducts, while Bamidele Buhari, its former general secretary, is on suspension due to “gross infraction against the constitution of the union.”
Friday 18 September 2020
BUSINESS DAY
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Friday 18 September 2020
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news Lagos labs scramble for reagents as flight... Distribution of sensitive and non-sensitive electoral materials by INEC for the Edo State gubernatorial election, at Central Bank of Nigeria (CBN), Benin City.
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resumption of international flights.
Hoteliers may abandon franchise,... Continued from page 1
that amount. Aside paying the exorbitant fees, some hoteliers decry that most foreign brands who undertake management agreement insist on sourcing key management staff, which are often paid excessive expatriate fees.
“The allowances I am asked to pay are often more than the salaries of a bulk of my Nigerian staff who are doing the job,” an aggrieved hotelier who pleaded anonymity, says. He further discloses that some hotels that are selfmanaged are doing well in terms of maintenance, revenue per available room (REVPAR) and gross operating profit (GOP), which are usually the brand proposition and deliveries of foreign brands. However, the self-management style seems to be trending in the Nigerian hospitality industry now as many once foreign-branded hotels are now independent brands. Recently, the Akwa Ibom State government refused to renew the franchise and management agreement with Le Meridien brand, which left afterwards. Since then, Le Meridien Ibom Hotel and Golf Resort became self-managed and rebranded as Ibom Hotel and Golf Resort. As well, Golden Tulip Hotel in Amuwo Odofin is now Festival Hotel and independently managed.
The 88-room Golden Tulip Enugu is now operating as Golden Royale Hotel, as well as, the once Golden Tulip brand in Ajao Estate Lagos, is now Woodridge Hotel Lagos, while Continental Hotel Lagos, which has capacity to attract bigger international brands since it stopped operating as Intercontinental Hotel Lagos, still prefers to be self-managed. It would be recalled that when Marriott International acquired Protea Hotel Group in 2014, only two of the 12 hotels in Nigeria (Protea Kuramo Waters and Protea Select Ikeja) met its standards, the rest rebranded and became independent hotels. Speaking on the development, Bode Oyeneyi, a former rooms’ division manager of Protea Oakwood Park, notes that other foreign brands approached some of the former Protea hotels but they refused because of the cost of franchise and trouble with fulfilling management agreements. “The likes of then Protea Leadway Hotel, which is now Leadway Hotel Maryland, Protea Hotel Oakwood Park Lagos, which is now Oakwood Park Hotel, among others, had quality standards other international brands were looking for, but they prefer self-management, which I think has worked because they are still in business,” Oyeneyi states. Oyeneyi also decries that some foreign brands do not live up to their promises, especially overflowing vol-
High system liquidity pushes investors... Continued from page 2
economist at EUA Intelligence, says, adding that more money is therefore parked in treasury bills. While investors were willing to subscribe to the 91-day instrument with N3.98 billion the CBN only allotted N2 billion, meaning N1.89 billion was recorded as unsuccessful bids. Further analysis of auction result reveals that the
182-day medium-term paper was oversubscribed by N7.08 billion. While the central bank raised N8.39 billion, investors were ready to put in N15.47 billion in the instrument. Also, the apex bank sold N148.36 billion worth of bills for the 364-day paper, but investors jostled with a subscription worth N184.71 billion and thus, recorded N36.35 billion unsuccessful bids. www.businessday.ng
ume of business and maintenance, noting, “There was a time Best Western Hotel was trending for hoteliers and every new hotel wants to wear the Best Western logo. “But when the brand felt it has arrived and started neglecting its side of the agreement, virtually all the hotels abandoned the brands, amid paying severance fees.” Following same line, Mike Ochimana, an Abujabased hotelier, notes that most hoteliers are not fronts for politicians, and they often build their projects with bank loans. “A lot of us are under pressure to repay bank loans, adding management and franchise fees now will put us under more pressure. I will rather run my hotel with indigenous hands now than pay expatriate fees to someone who will jump to a juicy offer next door,” he says. Considering the reality of our time, Preye Hart, an economist and hotel director, notes that it is better to suspend anything that will bring additional burden to hoteliers now, including franchise, which can always be re-engaged when things get better. “I am a hotel director, and we are struggling to stay afloat because of the persisting impact of the pandemic. The board has decided to stop our foreign managers until the economy gets better. It is a management and business decision, which I think is wise for now,” Hart says. But Olumide Fakaye, another hotelier, thinks foreign brands have a lot of mileage
to offer and should not be abandoned, rather scale down operation including their services and fees and still retain them. “Foreign brands come with a lot of mileage for hotels. Imagine removing Hilton logo or Transcorp and Sheraton logos on properties in Lagos and Abuja, they will be faceless and value for offerings will drop. So, we still need them, but have to renegotiate with them in accordance with the economic reality of our time because hotel business has been down since February this year,” Fakaye advises. But many foreign brands anticipated the development not only in Nigeria, but in other markets because of the global economic crisis occasioned by the pandemic. “About 80 percent of our hotels were shutdown globally for four months at the peak of the pandemic. Over 20 percent of the hotels are not going to engage us back because of the impact of the pandemic on their business. But we hope to engage more hotels in coming years. The pandemic will not stop our expansion plans,” Jose Andre, Starwood senior manager, expresses hope. Meanwhile, an anonymous source at Marriott International Nigeria notes that most Nigerian hoteliers want all the profit without investing back in maintenance and also renege on management agreement, hence a brand like Marriott will not compromise its standard or fees because of what the hoteliers want.
Analysis shows only 25% of Nigerians... Continued from page 2
receiving anything below 12 hours of electricity a day, your tariff will not go up,” said Laolu Akande, spokesman for Vice President Yemi Osinbajo on Channels TV’s ‘Sunrise Daily’ programme on Wednesday. Yet, the current tariff review still pales into insignificance when compared with what some very poor Nigerians living off-grid are
paying for energy generated from solar or other renewable energy sources. For example, beneficiaries of the 85kw solar hybrid mini-grid at Gbamu-Gbamu village, in Ijebu-East Central Local Council of Ogun State, have been paying between N60 and N100/per kWh for electricity since the past two years and those in more remote parts of Nigeria, without grid connection, pay even more.
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The demand has spurred the expansion of sample collection capacity across the state and encouraged labs to take initiatives like logistics support for passengers worrying about bookings and turnaround time (TAT) of results. Reagent is currently being sought in addition to clinical laboratory scientists for optimisation of operations. Some of the accredited labs such as Vcare Diagnostics have seen demand rise as much as 70 percent and are leveraging a TAT as short as 24 to 30 hours to drive influx. The gap created by a long wait of 48 to 70 hours to obtain COVID-19 test result at chargefree government-run labs constitutes an advantage for the private sector players despite a N50,400 fee considered high by some Nigerians. Unlike private centres, sample collection sites organised by the state at various local government areas have been greeted with low turnout, according to BusinessDay finding. At main Apapa, for instance, Kehinde Ososanya, the medical officer of health, Apapa Local Government, only saw eight people on Wednesday. Whereas, Vcare Diagnostics now gives considerations to corporates interested in mass testing for their staff. Reddington ZaineLab has opened more sample collection centres mostly in Ikeja, the Lagos State capital, and has eased the schedule for inbound passengers, even prior to their departure from Nigeria. Those who unexpectedly find they are positive also get treatment and case management services. “The challenge has been good and keeps getting better by the day. Because of the increase in number, we have to scramble for reagent and make
readjustments to our plans,” VCare Diagnostics source informs BusinessDay. “Because we did not anticipate the numbers that we eventually got, it has put some strain on us that we are getting burnt out,” according to the source. Before the opening of the international airspace, laboratories were basically testing groups of people including expatriates scheduled for evacuation or emergency travels. But with the Presidential Task Force (PTF) on COVID-19 stipulating that all travellers to Nigeria must be tested seven days after return and three days earlier for outbound travellers, the implications are pressure on the state’s capacity and bumper harvest for private labs. There are now 10 private laboratories accredited for COVID-19 test in Lagos -including Synlab, 54 Gene, Medbury Medical, ClinaLancet, Biologix Medicals, 02 Diagnostic, Vcare Diagnostics, Clinix Healthcare, Afriglobal Medicare, and Reddington Zaine Laboratories. BusinessDay’s findings reveal that based on a daily passenger limit of 1,280 in Lagos and a N50,400 test fee per head, not less than N64.5 million will flow into the coffers of Lagos labs daily, N451.5 million weekly. The PTF on COVID-19 had reduced the number of airlines operating daily at the Murtala Muhammed International Airport, Lagos, to seven in its bid to prevent a spike in infection likely to follow international travel. But as pleasant as the bubble seems, players are not lost in the euphoria of the present, as they expect a bubble burst will follow the discard of the PTF directive eventually. “As long as the regulation stands that the test is required for travel, the surge will be sustained. But a massive dip will certainly come later,” the source at Vcare says.
Nigerian insurers’ average return... Continued from page 2
sufficiently,” they say. African Alliance Insurance recorded a loss of N7.26 billion as at December 2019, while a negative total equity of N11.34 billion means it total liability exceeds total assets. Niger Insurance plc posted a loss of N1.65 billion in the period under review, and its management expenses are 1.37 times net premium income of N1.84 billion. Guinea Insurance recorded a loss of N795.04 billion as at December 2019, and it combined ratio stood at 1.27 percent as it continues to grapple with receding revenue. However, some companies were reliant on investment returns to shore up profit and deliver returns to shareholders. For instance, Leadway Assurance Limited, the largest @Businessdayng
insurer by assets, revenue and total equity, saw return on equity increased to 18.35 percent in December 2019 from 14.27 percent as at December 2018. Leadway Assurance’s net income spiked by 26.53 percent to N9.19 billion as at December 2019, thanks to income from investment income and foreign exchange gains of N64.76 billion that helped compensate for underwriting loss of N47.05 billion. AIICO Insurance’s ROE rose to 27.11 percent in the period under review as against 24.41 percent the previous year. AIICO’s net income surged by 86.24 percent to N5.86 billion in the period under review, thanks to contribution from investment income and other income to a tune of N10.53 billion that wiped out N6.8 billion underwriting loss.
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Sports
NBBF, Total E&P move to reposition Nigeria’s basketball, sign MoU Anthony Nlebem & Desmond Okon
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n a significant move to support sports development, the Nigerian Basketball Federation (NBBF) has signed a Memorandum of Understanding (MoU) with Total E&P Nigeria Limited, in order to reposition Basketball game in Nigeria. The signing of the MoU is expected to contribute to the transformation of sports business in the country and demonstrates the goodwill and corporate social responsibility of the oil and gas firm in identifying with basketball development in Nigeria. Speaking at a press conference where the document was signed, the minister of Youth and Sports Sunday Dare, said the ministry places premium on grassroots sports programmes and development, adding that it was a sure way of providing a nursery for elite podium performance.
Ahmadu Musa Kida, President of Nigerian Basketball Federation and Mike Sangster, Managing Director, Total Nigeria E&P at the signing of Memorandum of Understanding (MoU) held in Lagos.
“I urge everyone to support the effort of the government in repositioning sports in Nigeria,” Dare exhorts. The federal government recently reclassified sports from being mere recreation to business. This means that sports driv-
en around a business model will create jobs, generate revenue, add value to the talents of the athletes and also attract private investments. With that, the sports minister said it was evident that the government is more deter-
Mourinho speaks on Bale transfer speculation … Spurs to pay Bale’s full wages, Real Madrid to cover his bonuses Anthony Nlebem
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ottenham manager, Jose Mourinho, remained tight-lipped on the club’s attempts to re-sign Gareth Bale from Real Madrid, but revealed he has tried to recruit the Wales international in two of his previous jobs. Mourinho claimed he had not only tried to buy Bale during his time in charge of Manchester United, but that he had wanted to sign the forward for
Real Madrid in 2012 – a year before Los Blancos agreed a then world-record £85million deal with Tottenham. Spurs are in talks with Real Madrid over a sensational move to re-sign the 31-yearold , most likely on a loan deal with the Spanish giants subsidising at least half of his £600,000-a-week salary. Asked for the latest, Mourinho said: “Gareth Bale is a Real Madrid player. I don’t comment on players from other clubs. “It’s not my job to have contact with agents, I don’t
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want to comment on that, especially on players at other clubs.” Pushed on his attempts to sign Bale for United, however, Mourinho said: “Even before that, I tried to sign him for Real Madrid, which was not possible to do during my time there but the president followed my instinct and my knowledge and the season I left he brought Gareth to the club. “There’s no secret to that. Even Gareth knows that but I’m not going to speak on him any more because he’s a Real Madrid player.”
mined to provide a conducive atmosphere to stimulate corporate involvement in sports development in the country. “We are on our way to deliver a revised policy on sports that will turn sports into an industry,” he told stakeholders.
While commending Total E&P Nigeria Limited for sponsoring the National Division 1&2 Men’s Basketball League—a gesture he described as a reflection of their commitment to the development of youths in sports— he evinced hopes that other corporate organisations and philanthropists would copy Total E&P’s gesture. NBF itself has attained numerous victories and accolades at both Africa and world levels. The Nigerian Men’s Team (D’Tigers) is ranked as first in Africa and 23rd in the world, while the Women’s Team (D’Tigress) is ranked as first in Africa and 14th in the world. These achievements have been linked to the effectiveness and proactiveness of the Board of Nigerian Basketball Federation under the leadership of Ahmadu Musa Kida since the inauguration in 2017. “I’m quite proud of what we have done in the last two years,” Kida said with a smirk of satisfaction. On what fans and Nigerian
should expect from the team in the next Olympics, Kida averred that Nigerians represent the country with strength and motivation than he has ever seen in any other athlete in the world. However, while he could not guarantee that the team would always come first, he assured Nigerians that the team will always make an excellent show no matter where it is. “This is what I am expecting from that team,” he said. Regarding the Afro Basket Qualifiers for 2021 which is coming up in November, NBBF’s president said preparations are going on to ensure performance and team’s participation in Rwanda. “We’re hoping that at that time the federal government on the advice of the PTF on the federal ministry of health, will allow us to undertake basketball which is a contact sport. We’re relenting; we’re resting on our oars. We are in full preparation in case the green light is given to us to go and participate in Rwanda,” Kida said.
MultiChoice unveils new sport channels, content line-up Anthony Nlebem
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ultiChoice Nigeria has unveiled its new sport channels and content line-up for the remainder of the year 2020. The unveiling, which also featured the announcement of local and international entertainment, documentaries, reality and kiddies’ programming to be aired in 2020, occurred at the virtual MultiChoice Nigeria Showcase 2020 on Wednesday, 9 September. Martin Mabutho, Chief Customer Officer of MultiChoice Nigeria, said the pay-TV company is pleased to broadcast to Nigerians the very best of football from international football leagues such as the Premier League, LaLiga, Serie A, UEFA Champions League, Emirates FA Cup and others for the upcoming 2020/2021 season to both DStv and GOtv customers. He also noted that American sport channel, ESPN, has returned to DStv after some years’ hiatus, adding
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that the channel will also be on GOtv Max and will showcase the best of the NBA (National Basketball Association), NFL (National Football League), Major League Baseball (MLB), MLS (Major League Soccer) and other sports to subscribers. Also on ESPN, sport fans will also have access to the English Football League (EFL), Major League Soccer (MLS), Scottish Premier Football League (SPFL) and Dutch Eredivisie, which are available to DStv and GOtv Max customers, while DStv customers have access to NBA games on ESPN 2. @Businessdayng
“Nobody has more sport content than us,” Mabutho said. Also speaking via a prerecorded message, Gideon Khobane, Chief Executive Officer of SuperSport, explained the reason behind the recent change of channel system on the various SuperSport channels. Khobane said the change from the numbering channel system to a thematic channel system is to enable subscribers easily access and watch their preferred sporting events via specific channels dedicated to different sports.
Friday 18 September 2020
BUSINESS DAY
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Crypto players adopt sit-down-look on Nigerian SEC’s regulatory document FRANK ELEANYA
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he buzz around the regulatory document on crypto assets released by the Securities and Exchange Commission (SEC) is yet to rest and may likely not until the final legal framework is released. As it stands, Nigeria now has the most clearer picture of its approach to the cryptocurrency market compared to other African markets. South Africa is the only country on the continent that comes close. But players in the industry are hesitant to give a pass mark to the commission despite wild accolades from the public. “One can possibly interpret this as a good development as it welcomes the regulated use of crypto assets,” tweeted Adetola Onayemi, Assistant Chief Negotiator for Nigeria & Head, Trade Remedies and Investigating Authority at the Nigerian Office for Trade Negotiations (NOTN). Nathaniel Luz, lead for Dash Nigeria, told BusinessDay that it was a welcome development. Dash, an open source cryptocurrency, from the SEC classification falls under the ‘Crypto Asset - non-fiat virtual currency. “This is a welcome development since Dash as a virtual currency does not classify as a commodity or security and the existence of Dash since 2014 pre-dates the ICO days,” Luz said. “We at Dash Nigeria are open to working with the
regulators should they require any clarifications regarding the classification of Dash.” In the document released on Monday, the SEC classified cryptocurrencies as “securities.” A security is a term used for describing certain financial assets that can be traded. It can refer to any form of financial instrument, in the case of SEC, cryptocurrencies, and associated tokens. The commission claims it is empowered by Section 13 of the Investment and Securities Act, 2007. The section confers powers on the Commission as the apex regulator of the Nigerian capital market to regulate investments and securities business in Nigeria. However, some exchange operators told BusinessDay that the classification is not very clear and hence would be taking their time to study the material. They are also expecting a more detailed regulatory
material. While the SEC has different classifications for the various cryptocurrencies, it is not clear about how it intends to regulate them individually. Another sore point for exchanges would likely be who gets regulated. According to the document “any person, (individual or corporate) whose activities involve any aspect of Blockchain-related and virtual digital asset services, must be registered by the Commission and as such, will be subject to the regulatory guidelines. Such services include, but are not limited to reception, transmission and execution of orders on behalf of other persons, dealers on own account, portfolio management, investment advice, custodian or nominee services.” The concerns are that if the provision is not well-specified cryptocurrency customers
would get the wrong message since the regulation says “Any person, (individual or corporate).” Operators would want to know whether individual customers are expected to register with the SEC first before making any trade on cryptocurrency exchanges? Also, given the uniqueness of cryptocurrencies which is far different from equities on the stock market, the SEC would do well to explain what constitutes a security in the context of cryptocurrencies? The Chairman of the US Securities and Exchange Commission, Jay Clayton, in 2018 while responding to similar concerns, said that considering a digital asset as a security depends on the circumstances and facts surrounding the original investment. Clayton gave an example: when investors (who have “pooled” assets to contribute to funding a project) no longer expect a de-
veloper (or group of developers) to carry out managerial or entrepreneurial efforts, their investment may no longer be considered a security. Clarity around how it decides what is a security would likely aid the process of providing burden of proof about a cryptocurrency project being one or not. Importantly would cryptocurrency exchanges be allowed to trade independently? Luz suggests that the classification is an attempt to reroute crypto activities via the SEC. “I don’t see it doing much,” said Gauis Chibueze, founder and CEO of Abit Mobile Applications, the sponsors of Tatcoin, the utility token that powers the Abitnetwork. “I believe it (cryptocurrency market) will continue being a free market. I don’t see them doing anything differently.” Stakeholders are also concerned that the SEC may be
going over the head of the Central Bank of Nigeria which has in the past taken a hard stance on cryptocurrencies, at one point warning financial institutions do not have any business to do in the space. In a January 2017 guideline, the apex bank had noted that pending substantive regulation or decision by the CBN, no financial institution was permitted to use, hold, trade, or transact in any way in cryptocurrencies. Banks were also required to ensure that existing customers that are virtual currencies exchanges comply with all necessary controls and KYC. In the case where the bank is assured the customer isn’t cooperating, the relationship should be terminated immediately. “The question becomes does a substantive regulation by the SEC qualify as a “substantive regulation” to satisfy the CBN’s Jan 2017 circular or does the substantive regulation have to be one issued by the CBN? Is a financial institution’s registration with the SEC satisfactory?” Onayemi asked. Rume Ophi, Partner and Brand Strategist of Vorem Nigeria, a blockchain company transacting digital assets to fiat, also known as over the counter (OTC) trade market, says despite what the obvious flaws are, the document is a good start. “Before now a lot of doubting Thomases are always coming up with this narrative that it is not recognized by SEC so they cannot get themselves involved,” Ophi told BusinessDay.
Digital ID can enhance access to financial services in Nigeria - Mitchell Elegbe FRANK ELEANYA
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igeria can tackle the challenge of improving access to financial services by ensuring that every citizen has a digital identification number, says Mitchell Elegbe, co-founder and CEO of Interswitch. The payment company CEO was speaking on Wednesday at the Digital Identity Matters program organised by TechCabal in collaboration with VerifyMe
to mark International IDday on September 16. The Nigerian government had on Tuesday declared September 16 as the National Identity Day, a signal that the government was accelerating its drive to provide digital identities to all Nigerians. Nigeria is the first country to make the declaration. The federal government of Nigeria plans to provide approximately 150 million people with National Identity Numbers (NIN) over the next 3 to 5 years. This www.businessday.ng
Mitchell Elegbe
is already included in the country’s Economic Recovery and Growth Plan (ERGP) This however would become reality, Elegbe says, if the government creates incentives that will make the everyday Nigerian take part in national identity capturing program. Esigie Aguele, CEO of VerifyMe said part of the incentives could be to limit access to government programs thereby creating a system whereby Nigerians have to get their NIN to be
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able to access the government programs. “Emerging nations like Nigeria could unlock 50 to 70 percent of its full economic potential if we achieve a 70 percent adoption of basic digital ID alone,” Elegbe said. Digital identity can also contr ibute to economic value by improving access to and use of financial services. Due to lack of national identities mostly in the unbanked communities, mobile money agents face challenges in trying to verify @Businessdayng
the identity of the people who pay or receive money through them. In creating digital identities however, Elegbe said the government has to go beyond recording phone numbers. It should include known residential addresses. “We need to get KYC sorted out in a way that when you want to verify someone it happens immediately. When verifying people becomes automated, then speed to do transactions is almost immediate,” Elegbe said.
Friday 18 September 2020
BUSINESS DAY
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Live @ The Exchanges Market Statistics as at Thursday 17 September 2020
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Closing
Change
N11.9
N11.2
-0.7
CUSTODIAN
N4.8
N4.55
-0.25
CAVERTON
N1.86
N1.7
-0.16
N4.05
N3.95
-0.1
N2.35
N2.3
-0.05
DANGSUGAR
OANDO
ASI (Points) DEALS (Numbers) VOLUME (Numbers) VALUE (N billion) MARKET CAP (N Trn)
25,532.74 3,360.00 231,201,739.00 2.095 13.343
Nigeria’s stock investors lose N8bn as market falls further Iheanyi Nwachukwu
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he stock market of Africa’s largest economy failed to close in green on Thursday September 17 as the benchmark performance indicator decreased by -0.07percent. This week alone, the market has decreased by 0.23percent, which moderated the month-to-date gain to +0.81percent. The market’s negative return year to date has increased to -4.88percent. Market watchers see the possibility of recent losses ushering in bargain hunting activities in the next few sessions, though a cautious trading strategy is still recommended. On Thursday, investors took profit on equities like
Dangote Sugar Refinery Plc, Custodian Investment Plc, Caverton Plc, Ecobank Transnational Incorporated Plc, and Oando Plc. At the close of trading session, the Nigerian Stock Exchange (NSE) AllShare Index (ASI) which tracks the performance
of the Bourse decreased to 25,533.35 points from preceding day high of 25,558.81 points. Also, the value of listed stocks (market capitalisation) decreased by N8billion to N13.344trillion as against preceding trading day high of
N13.352trillion. In 3,360 deals, investors exchanged 231,201,739 units valued at N2.095billion. Banking stocks were actively traded on the Bourse led by FBN Holdings, Access Bank, Zenith Bank, FCMB Group and GTBank. Dangote Sugar Refinery Plc led others laggards after its share price moved from N11.9 to N11.2, losing 70kobo or 5.88percent. Custodian Investment dropped from N4.8 to N4.55, shedding 25kobo or 5.21 percent. Caverton moved from N1.86 to N1.7, losing 16kobo or 8.60 percent. Ecobank Transnational Incorporated was down from N4.05 to N3.95, losing 10kobo or 2.47 percent, while Oando dipped from N2.35 to N2.3, down by 5kobo or 2.13percent.
Lafarge Africa says donated over N500m towards fight against Covid-19 ...will continue to focus on business resilience to maintain healthy balance ... commits to improving shares free float Iheanyi Nwachukwu
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afarge Africa Plc said it has donated about N500million towards various initiatives aimed at fighting Covid-19 pandemic. Khaled El Dokani, managing director/ Country CEO of Lafarge Africa Plc disclosed this on Thursday September 17 during Lafarge Africa Plc Facts Behind the Figures (FBF) held virtually on the Nigerian Stock Exchange. The Facts Behind the Figures is a platform created by The Nigerian Stock Exchange (NSE) to provide stockbrokers, investors, analysts, funds manager and capital market correspondents with market information about companies listed
on the NSE. Responding to questions, the cement maker said it is commited to increasingly free float of its shares on the NSE. It said it has very positive medium and long term view of the business in a competitive market. “We maintain a healthy utilisation rate”. The most profitable segment of the business in H1 remains the cement business. Cement industry is an important and key sector in the development of the economy. Economy is expected to shrink by 5.4 percent in 2020 according to IMF due to Covid-19 pandemic. This is coupled with impact of drop in crude oil price and current FX liquidity challenges. The expectations of www.businessday.ng
stockbrokers is that Lafarge Africa Plc retains its position as a leader in its business and return to shareholders who bought the shares of the company. The share price stood at N13 on Thursday. Lafarge Africa Plc leveraged the platform to make a presentation on its 2019 financials to capital market stakeholders and the company was honoured with NSE Digital Closing Gong ceremony. Lafarge Africa net sales had dipped by 5 percent in H1’20 to N55.8billion as against N59.8billion
in H1’19. Though net income rose by 60 percent to N15.2billion in H1’20 from N9.5billion in H1’19 “The current debt position is not a problem for us”, Dokani noted. “Despite the impact of Covid-19 pandemic in H1 2020, medium to long term outlook remains positive”, he said. “With the gradual easing of the lockdown by Federal Government, we will continue to focus on business resilience to maintain a healthy balance sheet while prioritising the health of our people, communities and other stakeholders”, the CCEO said. “The implementation of our healthy, cash and cost initiatives has and would continue to deliver improvement in our performance”, Dokani said.
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Global market indicators FTSE 100 Index 6,049.92GBP -28.56-0.47%
Nikkei 225 23,319.37JPY -156.16-0.67%
S&P 500 Index 3,356.99USD -28.50-0.84%
Deutsche Boerse AG German Stock Index DAX 13,208.12EUR -47.25-0.36%
Generic 1st ‘DM’ Future 27,832.00USD -105.00-0.38%
Shanghai Stock Exchange Composite Index 3,270.44CNY -13.49-0.41%
Julius Berger’s AFP creates interactive virtual furniture showroom for customers
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he AFP, the furniture production facility of Julius Berger Nigeria Plc, besides its exotic physical showroom at Gana and Sanusi Fafunwa streets in Abuja and Lagos respectively, has created a virtual showroom also for its customers The head of Media Relations for the Julius Berger Nigeria Plc Group, Moses Duku, disclosed this development to newsmen in a telephone conference from Abuja. The AFP, he said, invites all its customers to visit its stateof-the-art virtual showrooms to discover and experience an unrivalled display of furniture and interior solutions. The showrooms feature fully- operational kitchens equipped with top-end appliances, modern relaxation lounges, refined executive offices, impressive fine dining table settings, lavish bathroom vanity units and cozy bedroom solutions. AFP now displays its portfolio in a new light with an interactive VR experience tailored to meet client’s needs. Additionally, the AFP Virtual showroom offers an exquisite showcase of modern interior design and innovative home technology concepts, a fully functional five star hotel suite and a luxury home cinema. The entire concept allows AFP the opportunity to showcase our portfolio in virtual reality giving customers the ability to discover and engage with AFP’s entire product range in the AFP’s actual showroom space. Clients can now from anywhere in the world intuitively browse AFP’s offerings, as well as explore and compare different material selections, variations and technical details. AFP Virtual showrooms now demonstrate actual spaces in real time, which prospective customers are able to experiment with using various designs choices in a lifelike context. By actually
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shifting them into a room that reflects the space customers desire to design, one can get a better idea as to how certain furniture options and designs might look when applied to their own properties. The Julius Berger spokesman invited AFP customers to simply go online and click: AFP Showroom Virtual Tour. The AFP showrooms, Duku said, will remain open during the 2020 calendar year, fully assuring customers that all their furniture and interior needs will be comprehensively, highly catered for. He further outlined necessary and respectful AFP Showroom hygiene and social distancing guidelines that have been responsibly and properly put in place. Duku assured that all customers and staff while in the AFP showrooms are required to maintain a distance of two metres from all other persons, and wash hands with soap and water as well as use hand sanitizer before entering the showrooms. Everyone is also to wear a facemask at all times whilst in the showroom, avoid touching their nose, mouth and eyes; and generally comply with all Government guidance on social distancing and curfew requirements. Speaking further to the Julius Berger offerings, Duku said, from architectural review and conceptualization to production and to installation on site, the AFP ensures that its well-designed furniture pieces are highly functional, durable and flawless in detail. Julius Berger invites clients to follow the AFP on Instagram for special discounts and updates on AFP’s latest products and services.
A4
Friday 18 September 2020
BUSINESS DAY
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BUSINESS DAY Friday 18 September 2020
By Kemi Ajumobi
www.businessday.ng
Kemi@businessdayonline.com
Women in Business
Pearlena Igbokwe Chairman, Universal Studio Group
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earlena Igbokwe is the Chairman of Universal Studio Group, a division of NBC Universal. She is responsible for all aspects of creative affairs and production for NBC Universal’s three powerhouse studios: Universal Television, Universal Content Productions (UCP), and NBCUniversal International Studios. Currently, Pearlena oversees the production of over 2500 hours of programming currently airing or streaming around the globe and manages a slate of ambitious storytellers including Tina Fey, Seth MacFarlane, Amy Poehler, Dick Wolf, Lorne Michaels, Michael Schur, Nahnatchka Khan, Sam Esmail, Julie Plec, Larry Wilmore, Debra Martin Chase, Gareth Neame, Alan Yang, David Heyman, Sean Hayes, and Tanya Saracho, among numerous others.
She is the first woman of African descent to head a major U.S. television studio, as she comes from the Igbo tribe of Nigeria. Igbokwe was born in Lagos, Nigeria in the 1960s. She lived with her family in a village which was affected by bomber planes while they depended on airlifted food during the Nigerian Civil War. She moved to the United States at the age of six. She earned a Bachelor of Arts degree from Yale University and an MBA from Columbia University. From June 2016 to September 2020, Igbokwe was President of Universal Television, where she oversaw creative development, casting and production for one of the country’s largest and most successful studios. She led the division to new heights with record volume, commercial success and critical acclaim. Some of her programming highlights include Russian Doll, The Good Place, New Amsterdam, The Bold Type, Good Girls, and Dick Wolf’s successful new franchise, FBI and FBI: Most Wanted, among numerous other notable projects. In a highly competitive landscape, Igbokwe was able to secure pickups for her projects on every major streaming service, a variety of premium cable outlets and every broadcast network. Before her studio role, Igbokwe served as Executive Vice President, Drama Programming, for NBC Entertainment, where she developed the top-rated new broadcast dramas for three out of her four years in the role (Blacklist, Blindspot and This Is Us). Igbokwe worked at Showtime for 20 years where she was involved in developing the pilot and overseeing the first five seasons of Dexter, Showtime’s most popular series ever. She also developed the pilot for Masters of Sex, starring Michael Sheen, and supervised the Emmy Award-winning and critically acclaimed original series Nurse Jackie. In addition, she shepherded Tracey Ullman’s State of the Union, Damon Wayans’ The Underground, Kirstie Alley’s Fat Actress and the television adaptation of the hit feature film Barbershop. She was also instrumental in the five-season run of the hit Showtime series Soul Food, a two-time NAACP Image Award winner for Best Drama Series. Igbokwe has mined success from a number of original movies she developed for Showtime, including the Humanitas Award-nominated Jasper, Texas, starring Academy Award winners Jon Voight and Louis Gossett Jr.; the Emmy-nominated Bojangles, starring the late Gregory Hines; and the Peabody Awardwinning Strange Justice.
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imi Fajemirokun is a distinguished visionary offering a diverse career in driving significant and profitable growth through high volume projects in the management-consulting sector. She stands at the forefront of policy advocacy having spent the last decade supporting various arms of government and MDA’s in Nigeria. She serves as the Managing Partner of Acropolis consulting. Simi managed the National Situation Room of the 2019 APC Presidential Campaign Council where they effectively coordinated over 170,000 agents, coordinated 37 situation rooms across the country while implementing strategy that led to the victory of the Party. In addition, she was appointed to serve as the Secretary of the FCT Campaign Council. She also served as the Director General of Welfare for her Ward Campaign Council. She previously ran for office for the House of Representatives in FCT under the APC. She sits on several boards of profit and non-profit organisations and is committed to building smart communities. She has spoken at several international and local events such as the World Economic Forum at Davos and Africa, Africa Union, United Nations Conference on Trade and Development (UNCTAD), The Presidential Advisory Committee Against Corruption (PACAC), British Council and Architecture and Design Conferences. ESFAJ & Partners is an advisory firm that provides innovative and creative solutions to the increasing need for research, data analysis and visualisation in business development. As Senior Partner, ESFAJ & Partners from 2011 till date, she built and refined business operations from ground-up to a large team of consultants (over 50) and core operations team of 10. Her operational leadership roles including million dollar management and strategic planning for the Office of the Presidency, State Governments, Federal Ministries and Small/ medium corporate firms across West Africa. Simi guides initiatives involving process improvement, staff development, and operational efficiency. She also managed and led research team to develop internationally acclaimed award winning concept on Mobile Learning in Ondo State, Nigeria. Also, Fajemirokun consistently delivered mission-critical results for high level revenue building strategies and tactics. Read2Succeed Africa (R2S) is committed to improving the state of public schools in Nigeria by constantly questioning the status quo. They believe that education should provide tomor-
Simi Fajemirokun Senior Partner at Acropolis Consulting
row’s solutions and so they use design thinking to build inspired learning communities where the classroom itself is a learning tool. They are intentional about infusing the African culture to boost confidence and create a sense of belonging in their learning spaces. Simi is the Founder of R2S. They launched the first modern African classroom, ‘The Showroom’ in Utako public primary school using design thinking and recycled materials. They built prototype and developed the curriculum for primary school students in neglected public schools to improve literacy levels. Also, they adopted 5 schools and delivered programs that equipped over 1,200 students with adaptive education and skills for future employment while highlighting alternative paths to future world of work.
Published by BusinessDAY Media Ltd., The Brook, 6 Point Road, GRA, Apapa, Lagos. Advert Hotline: 08033225506. Subscriptions 01-2950687, 07045792677. Newsroom: 08169609331 Editor: Patrick Atuanya. All correspondence to BusinessDAY Media Ltd., Box 1002, Festac Lagos. ISSN 1595 - 8590.