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Despair drives search for cheap high as youths’ tongues go blue O TEMITAYO AYETOTO

New N30,000 minimum wage comes with mixed bag of job loss, growth

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TREASURY BILLS

luwadamilare, a 19-year-old pickpocket, has just woken up to another Tuesday of highness in the notorious community of Akala, in the Mushin area of Lagos, Nigeria’s bustling commercial capital. His tongue is dyed blue from

licking five tablets of Rophypnol, a brand of Flunitrazepam. That is a good morning gesture to prepare his system for the daily pattern of intoxication it goes through. Damilare, as he is fondly called, is one of the ghetto stars who command a sufficient degree of street credibility within an army of very young people who have become masters at

concocting various drugs with drinks since Codeine became an expensive and scarce contraband in Nigeria. A small bottle of Codeine syrup now goes for about N4,000 but Rophypnol, which has 30 tablets in a pack, currently sells for between N2,500 and N3,000. Retailers within the ghetto offer it at N150 per tablet, profiting between N1,500 and N2,000.

Wearing a black T-shirt, shorts printed in royal-house design, a cluster of star- and arrow-shaped tattoos around both arms and an energetic cheer dancing through his veins, a host of blue-tongued allies fenced him as he pounded three tablets of Swinol, another brand of Flunitrazepam, with the bottom of his small phone into a

Continues on page 4

TONY AILEMEN, Abuja, & OLUWASEGUN OLAKOYENIKAN, Lagos

fter 18 years, Nigeria now has a new national minimum wage of N30,000 for its least paid worker, but that comes with a mixture of an increased possibility of job loss and potential economic growth for the country. President Muhammadu BuContinues on page 4

Inside P. 32

CULINARY DELIGHTS

L-R: Adegbola Abudu, CEO, Capricorn Digital; Salami Abolore, CEO, Riby; Segun Akerele, EFInA board chairman; Laure Beaufils, deputy British high commissioner; Fehintolu Olaogun, CEO, Credpal; Esaie Diei, CEO, EFInA; Oluwole Ogunwande, CEO, Smart Teller, and Faith Adesemowo, CEO, Social Lender, at the EFInA $2m Fintech Grant presentation in Lagos.

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NEWS Private sector looks to diaspora dollar to boost tourism inflow OBINNA EMELIKE & IFEOMA OKEKE

he growing remittances from Nigerians abroad in the past few years are raising a new consciousness in the organised private sector that these inflows can be turned into tourist dollars. Remittances by Nigerians in Diaspora into the country have been increasing progressively in the last couple of years, hitting $25 billion (about N9 trillion) in 2018, up from $22 billion in 2017. The remittances averaged $20 billion for 2015, 2016 and 2017, but a substantial part of the money is spent on building houses in the village, taking care of aged parents or other sundry issues. But members of the organised private sector are now looking to squeeze tourist dollars from these remittances through homegroomed tours targeted at Diaspora Nigerians and African-Americans desirous of visiting to explore nature,

culture, connect with their roots or seek investment opportunities. The Nigerian Chambers of Commerce USA (NICOCUSA) appears to be in the lead, offering great homecoming opportunity to Nigerians in North America through its tours. NICOCUSA is providing documents to expedite visa and passport services to members of the Chambers, thereby giving them opportunity to seek business exchange and promote trade between the United States and Nigeria. The NICOCUSA tour project has the capacity to boost foreign exchange if well explored as it will attract huge holiday spending from Nigerians in Diaspora instead of impacting already developed economies of Europe and North America, said Charles Atufe, a tour operator. Rabo Saleh, president, Federation of Tourism Associations of Nigeria (FTAN),

Justice Water Onnoghen (m), suspended chief justice of Nigeria, arriving at the Code of Conduct Tribunal for delivery of judgment on his case of non-declaration of assets, in Abuja, yesterday. The tribunal removed Onnoghen from office as chief justice and chairman of National Judicial Council, his undeclared account forfeited, and he was banned from holding public office for 10 years. NAN

Banks’ risk management strategy yields fruit as exposure to power sector slumps BALA AUGIE & ISAAC ANYAOGU

N Jumia’s NYSE listing points way Continues on page 4

for other African tech firms JUMOKE AKIYODE-LAWANSON

umia’s listing on the New York Stock Exchange (NYSE) will create more awareness to foreign investors on Africa’s technology ecosystem and wake up other players to see the benefits of listing internationally or locally to raise substantial capital for business growth, experts say. The African tech and ecommerce company with operations in 14 different African countries, including Nigeria, which now trades as JMIA on the NYSE, is now valued at over $3.76 billion, after recording a trading price of $40.07 by close of business on Wednesday and opened at $38.15 on Thursday morning. With potentials of raising over $216 million fresh investments from going public, Jumia is leading the way for other African tech companies looking to raise funds for expansion. “The Jumia IPO shows that Africa is innovative in terms of technology and this will spur other tech companies to also look into being listed,” said Tolulope George-Yanwah, country manager, Jumia Services. George-Yanwah, who spoke with journalists at a

press briefing on the latest IPO listing in Lagos yesterday, said the company had always been an example for others as a result of its forward-thinking decisions. “We have made sure that other companies have been able to rise up and say we want to also be a part of e-commerce, we want to do retail online. There are a lot of people doing social commerce now, and all of this is because Jumia started in this market seven years ago,” she said. On whether there are plans to list on the Nigerian Stock Exchange (NSE), Ernest Eguasa, chief financial officer, Jumia Nigeria, said there were no plans yet for the company to list its Nigerian unit, adding, however, that it was not an impossibility. “At this point, there is no ongoing secondary offer that the company is considering. However, when a company goes to a stock exchange, there is no rule that it has to do a single listing. It really depends on what the company is trying to achieve; so, there is nothing stopping us from listing in a secondary market. However, there are no plans for us to list yet in Nigeria,”

Continues on page 4 www.businessday.ng

igerian banks are beginning to reap the fruit of an excellent risk management strategy and efficient portfolio allocation as exposure to the power sector slumps. Only one out of Nigeria’s five biggest lenders recorded a gross loan of 10 percent to the power sector, an analysis of the banks’ audited accounts last year shows, as they are reluctant to extend further financing to the electricity distribution (DisCos) and generating companies (GenCos). For the top banks’ books reviewed for this story including Access, UBA, GTBank and

First Bank, power sector loans constitute their lowest nonperforming loans. The United Bank of Africa (UBA) gave the highest loans to the power sector last year totalling N172 billion, which is 10 percent of the total gross loans of N1.72 trillion. Out of total non-performing loans of N110 billion, a paltry N2.2 billion was recorded in the power sector. The exposure of First Bank and Access Bank was so insignificant the banks didn’t put it on a spreadsheet. Gross loans to the power sector were N73.4 billion and N852 million, respectively, for First Bank and Access Bank. “The tough policy environment of these companies

where there is no market tariff and transmission is inefficient means that more power companies will face difficulties,” said Taiwo Oyedele, head of tax at PwC Nigeria. While the banks’ report did not detail which value chain in the power sector (generation, distribution or gas producers) was responsible for the loans, the liquidity crisis in the power is a shared pain across all value chains. Between October and December last year, Nigeria’s 11 DisCos collected from consumers only 65 percent of the value of electricity sold but remitted back to other operators only 33 percent of what they collected, according to the third quarter report

of the regulator, the Nigerian Electricity Regulatory Commission (NERC). In monetary terms, total billing to electricity consumers by the 11 DisCos was N172.9 billion but only a total collection of N106.7 billion representing 65.5 percent of billing was recorded. “The collection efficiency indices indicate that a sum of N3.45 out of every N10 worth of electricity sold during the third quarter remains uncollected as and when due,” NERC said. Thirty-three percent of the remittance indicates a value of N2.1 of every N7 worth of electricity sold.

•Continues online at www.businessday.ng

FG finalises plans to recapitalise BoA, reduce equity to 40% ONYINYE NWACHUKWU

he Federal Government will shed its majority stake in Bank of Agriculture (BoA) to just 40 percent, as it finalises plans to recapitalise the bank. This comes many years after the restructuring plan to substantially improve its operating framework and enhance governance structure and efficiency was announced. “The process will lead to the privatisation of equity of the bank. We envisage that the Central Bank equity will be reduced to 20 per cent, Federal Ministry of Finance (incorporated) will be reduced to 20 per cent,” Alex Okoh, director-general, Bureau of Public Enterprises (BPE), said. “The government agencies equity in the new bank will be a minority of 40 percent. We will then invite private sector investors who will own 20

percent and the remaining 40 percent equity will be owned by farmers and farmers’ cooperatives,” Okoh said. Okoh, who spoke at the kick-off meeting for the recapitalisation of the bank in Abuja, said the bank had performed sub-optimally due to the myriad of challenges it faced since inception in 1972. According to him, the new strategy envisages that BoA will be transformed into a truly agriculture finance bank modelled along the lines of Agriculture Bank of China and Rabobank of the Netherlands, adding that upon its establishment. Set up in 1972 to serve as an agricultural and cooperative bank to provide services of a development finance institution, BoA was vested with the responsibility of providing low cost credit to smallholder and commercial farmers. He, however, lamented that the Bank had been unable

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to realise its responsibilities due to its current structure, stressing that the proposed restructuring and recapitalisation of the Bank seek to transform it strictly into an agricultural finance bank with functional branches in all the local government areas and major towns in Nigeria. The director-general said the model was sure to encourage farmers to form clusters of cooperatives and thrift societies throughout the six geo-political zones for the purpose of participating in the ownership of the bank. He added that the model would fundamentally ensure that the BoA became farmers’ bank owned by the farmers. On the sustainability of the strategy and attracting new investments, he explained that measures would be put in place to take non-performing credit facilities off the balance sheet and books of the Bank and pos@Businessdayng

sibly sold off to a factor agent. “The measure is to make the Bank attractive to investors and also attract cheap funding from multilateral development institutions and other institutional investors with a focus on agricultural financing,” he said. Audu Ogbeh, Minister of Agriculture & Rural Development, doubles as the Chairman of the Steering Committee for the Project, and according to Okoh, has shown passion and commitment to the development of agriculture in Nigeria. Okoh was also grateful that the Lead Consortium - the Adviser for transaction had played an efficient role so far, and was optimistic that upon conclusion, BoA would be placed on a platform to optimise its potential to make positive impacts on the nation’s natural endowments for arable farming.

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NEWS Despair drives search for cheap high as... Continued from page 1

carton of orange fruit juice.

Flunitrazepam is a powerful hypnotic drug that depresses the central nervous system (CNS). It is in a class of drugs called benzodiazepines – which are sedatives used to treat anxiety, insomnia and sleep disorders, seizure ailments or used as skeletal-muscle relaxants. When mixed with alcohol, another CNS depressant, suppression, stupor, respiratory depression, and death are more likely to occur. The exhilaration heightened when he shook the carton vigorously to achieve an even blend of the mixture.

And just before the bride in his hand landed, an army of tiny disposable cups jostled for a spot on the wooden bench he sat, waiting to be filled. A brief moment of relief it was for they were now addicted. The Ekiti State-born Damilare requires highness for a number of reasons, chief among which is his pick-pocket job. The highness, according to him, elevates his spirit to a realm that makes his sensibility dead to the financial, resource or emotional trouble he inflicts on the victims of his thievery. All he sees through the lens of Rophypnol alongside other anaesthetic mixture is a careless commuter struggling for

a seat in a haste to the workplace or a forgetful resident failing to secure his gates and even an over-careful driver who has the doors all locked up in a traffic, dismissing his ability to shatter the glass to cart his possession. But Damilare was neither born nor bred in this crassness. In fact, he once nursed the dream of litigating clients’ cases before judges as a young boy before dropping out in JSS2. His father’s death worsened his prospects and like children with limited opportunities, he has found a home in Akala in the last 10 years. Lion, unlike Damilare, was not deprived of tertiary education. But despite a degree from the University of Lagos,

he has also found a home in Akala – the difference being that he often sleeps in his biological family house and resumes to highness every other day. At a crowded tent where heated arguments seamlessly flowed under the influence of Rophypnol, Swinol, 502, Shisha, Goscolo and wraps of varying grades of weed, Lion told BusinessDay he and his friends would not stoop low to pick-pocket or cart-pushing when they can afford a phone and a laptop for internet fraud. Their typical style was similar to marathon race. Drinking and smoking never end. The drench in their system desperately finds escape in the stench that oozes from them the moment they open their

mouths. The chain smoking, drinking and licking also thrust them in a struggle with their thoughts and expressive capacity. They get dizzy, yet actively snap against any impression that they might not be in control of themselves. Lion, however, appeared better in charge of his articulating faculty and in response to the inquiry on the endless craving for highness among youths, he simply admits, like Damilare, that the ill-means they explore to escape the hardship and frustration of unemployment requires drug intoxication. “This country does not have a good leadership. They are criminals, thieves and liars. Due to this frustration, we get high,” Lion soberly

New N30,000 minimum wage comes with... Continued from page 1

hari on Thursday signed the National Minimum Wage Bill into law, Ita Enang, senior special assistant to the president on National Assembly (Senate) matters, said in Abuja while briefing newsmen. The presidential assent on the new National Minimum Wage Bill came after the approval of the House of Representatives on January 29 and the Senate on March 11, 2019. With this development, which makes it compulsory for organisations employing more than 25 workers to pay workers a minimum of N30,000 monthly wage, focus now shifts to the implication of the 67 percent national wage hike on the Nigerian economy. The Federal Government wage bill is expected to increase by N160 billion. This is a fringe of the Federal Government revenue, which has averaged N2 trillion in the past three years, even as concerns abound on the need for government to cut down its bloated civil service. “The federal and state governments should critically assess whether they really

need as many workers as they currently employ,” said Rafiq Raji, chief economist at Macroafricaintel Investment LLC. Already, the Federal Government budgeted N4.04 trillion as recurrent expenditure in the proposed 2019 budget as against N2.03 trillion apportioned for capital expenditure, while debt servicing would take N2.14 trillion. Increase in government personnel costs would translate to more pressures on revenue for the Nigerian economy, leaving the government with little or no choice than borrowing to meet its obligations and further widen its fiscal deficit. To further improve the fiscal health of the country, the Federal Government might consider taking some revenue actions like reducing petroleum subsidy, or could probably increase VAT rate from the current 5 percent to spur some improvement in the fiscal account and to fund the minimum wage, according to Abimbola Omotola, a macro and fixed-income analyst at Chapel Hill Denham. If the new law is enforced

Private sector looks to diaspora dollar... Continued from page 2

said the idea of bringing Diasporans to explore and patronise tourism offerings across the country was a noble one, adding that he looks forward to FTAN collaborating with the organisers for wider reach and consolidation of the expected gains. NICOCUSA is also en-

couraging religious tourism to Nigeria through the facilitation of Shiloh Pastoral Conference for interested Americans at the Winners International Chapel in Ota, Ogun State. The tours, which hope to expose the visitors to the best of the country’s tourism, also offer business and in-

Jumia’s NYSE listing points way for... Continued from page 2

Eguasa said. Although market analysts say Jumia shares are overvalued for a loss making business, but Olamide Amosun, head, engagement marketing, Jumia Nigeria, told BusinessDay, “At this

point in time, we are not able to comment on whether or not the Jumia shares are fairly priced, at $14.50 per ordinary share.” On its current loss and plans to turn profitable to satisfy investors, Jumia said it was growing rapidly, refwww.businessday.ng

explained. “Internet fraud is not a job you can do without drugs. With highness, if you want to ask a client for $100, you can boldly ask for $1,000 and he might be pleading with you to accept $700 or $500. That is why we are getting highness. Highness is the reason some of our governors and senators steal N500 billion instead of N500 million,” he said. Ugo, another addict, managed to squeeze out of his dizziness and said in a staggering and croaky tone, “Nothing can change us. We are pressing onward and going deeper.” Lion and his graduate friends, Damilola and Ugo, are outside the circle of 69.54

Continues on page 33

unlike before, the private-sector players would also be required to pay at least N30,000 to their workers, a move that would mount more pressure on companies already snivelling over the country’s harsh operating environment evident in companies’ full-year 2018 financials. That could force some of

the private firms, who are the major employers of labour in the country, to cut down on the number of employees in a bid to comply with the new law. This could worsen the nation’s unemployment rate which rose to 23.1 percent as at the third quarter of 2018. However, compliance done without necessarily re-

ducing staff strength among these firms would mean an increase in aggregate demand and a boost to consumption in the economy which would ultimately spur economic growth. “Having a higher minimum wage would be helpful in driving aggregate demand in the economy and that could

translate to economic growth at least in the mean term,” Omotola said. “Higher consumption expenditure will provide a boost to near term growth.” In dollar terms, Nigeria’s minimum wage is $98 (N306/ USD) compared to Ghana’s $27, Egypt’s $41, Senegal’s $62, Kenya’s $133, and South Africa’s $176. This implies Nigeria would become less competitive among peers in Africa. Speaking during the briefing, Enang said the new law also authorises the “minister of Labour and Employment or any person nominated by the minister or any person designated by the minister in any ministry, department or agency to on your behalf take action in your name against such employer to recover the balance of your wages”. “It also ensures and mandates National Salaries, Income and Wages Commission and the Minister or Labour, to be the chief and principal enforcers of the provisions of this law,” Enang said. The law, he said, “applies to all agencies, persons and bodies throughout the Federal Republic of Nigeria”.

vestment platform for those looking for such opportunity but have been held back by issues of trust. Nigeria has great tourist destinations that are yet to be explored, according to travel experts. They add that anything that will help get more people to identify with Nigeria and its tourism potential and business is

a welcome development. “Nigeria has amazing tour destinations that can be explored,” said Ikechi Uko, a travel business consultant and founder, Akwaaba Travel Tourism Market. “There are a lot of things in Nigeria that you can’t see elsewhere. We have one of the biggest slave histories. There are places that tell stories about history of slaves. I

just hope the people doing this know tour destinations for people to visit within Nigeria,” he said. Joyce Akpata, directorgeneral, Nigerian-American Chamber of Commerce (NACC), told BusinessDay that although the chamber was not part of NICOCUSA’s tour initiative, it was always open to opportunities that would boost Nigeria’s image

and income. “We get our member companies to meet with trade missions of US businesses that are coming to Nigeria and engage with them to explore whatever business possibilities they could share. For this year, we have not had much business investors because of the elections which created so many uncertainties,” Akpata said.

erencing the registration statement that showed that in 2018, Jumia delivered Gross Merchandise Volume (GMV) growth of 63.3 percent and its revenue from third party sales grew by 121.5 percent, for the last two years. Jumia has also delivered positive platform contribution at group level, and for Nigeria, which is the

company’s biggest market, it has recorded positive contribution after all fulfilment expenses during the second half of 2018. The company however says it cannot give any assurances that the business will yield return on investments for shareholders. “We can’t make any forward projections, but Jumia

is growing quite fast and we would continue to expand operations, but in terms of a definite assurance or forward statement on future performances, we can’t do that as a public company,” Orumwese said. G e o r g e -Ya n w a h d e bunked claims that MTN, which is a major shareholder in the company, might be

looking to divest. According to her, the IPO is all primary, which means that its point is to attract new investors, our current shareholders are not looking to divest. “The whole point of the IPO is to help raise more resources and capital, and funds raised will be used as the company deems fit,” she said.

L-R: Segun Agbaje, MD/CEO, Guaranty Trust Bank plc; Osaretin Demuren, chairman, and Erhi Obebeduo, company secretary, during the bank’s 29th annual general meeting in Lagos, yesterday. Pic by Olawale Amoo

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NEWS Public hearing on N9trn pension fraud suffers setback as Committee chair resigns James Kwen, Abuja

ublic hearing initiated by the House of Representatives to investigate the utilisation of the N9 trillion accrued into the pension fund suffered major setback on Thursday as Johnson Agbonayinma, chairman of the Ad-hoc Committee investigating the matter, stepped aside. Agbonayinma announced his resignation at the resumed investigative hearing held in Abuja in his farewell speech titled: ‘The hand of Esau but the voice of Jacob (Cabal).’ Sequel to his self-disqualification over what he described as ‘unnecessary pressures and an attempt to bribe him to scuttle the investigative hearing,’ his deputy, Iboro Ekanem (PDPAkwa Ibom) took over as he presided over the investigation hearing that was attended by representatives of Pension Fund Administrators (PFAs).

Agbonnayinma also indicted a fellow lawmaker who allegedly collaborated with the regulatory body to offer him a bribe to ‘kill’ the probe. “Ab-initio, these responsibilities bestowed on the Committee by the House met stiffer oppositions and challenges immediately after its inaugural meeting with various motions for the rescission of the motion setting up the Ad-hoc Committee to subvert the directives or the honourable House, and derail the activities of the Ad-hoc Committee. “These motions were at variance with the Standing Orders of the House, particularly Order 8 Rule ‘Notice of Motions’. “But for the parliamentary gallantry of Mr. Speaker, there were various uncomplimentary and savaged tactics to give the Ad-hoc Committee a still birth. “Please note that Hon. Oluwole Oke, a member of this Parliament and a ranking member threw decorum to the wind when

he took it upon himself and through his deliberate actions to derail the activities of the Ad-hoc Committee, his conduct is morally and parliamentary unacceptable. “From inception of the investigations, his actions were infamous and uncomplimentary befittingly of a lawmaker, which is to walk in the path of justice. “From inception of the investigations his actions were infamous and uncomplimentary befitting a lawmaker which is to walk in the path of Justice. He made overtures in subverting the mandate of the Ad-hoc Committee, which was disregarded. “From our findings the body language of the Honourable Member is that of a commissioned agent and with a directive to stifle the investigations and subvert the report of the Ad-hoc Committee. It is very sad that a ranking parliamentarian is involved in these unwholesome acts.

Fashola charges FHA to drive nationwide mass housing to grow employment opportunities HARRISON EDEH, Abuja

inister of Power, Works and Housing, Babatunde Fashola, has received the Annual Report of the Board of the Federal Housing Authority (FHA) with a charge to the Authority to invest massively in housing development nationwide as a means of further addressing the challenge of unemployment in the country. Fashola, who spoke on in Abuja after receiving the Annual Report of the FHA Board, particularly urged the Authority to replicate nationwide, its ongoing 700 units, 10,000 employees’ Abuja Mass Housing project in Zuba. The minister noted that such an investment, if replicated in the 36 states of the Federation and Abuja, would create an ecosystem of oppor-

tunities for jobs and industrialisation. The minister pointed out that through the project FHA had identified appropriately the critical role that housing development could play in responding to and solving some of the problems and challenges currently faced in the country. He said, “If you go to a site where over 700 housing units are being built and 10,000 people are benefiting and getting employment there, you are really then beginning to attack the social issues of exclusion, unemployment, joblessness and restoring the dignity of the human being.” According to Fashola, “If we can have 10,000 people employed in each of the 36 states and the FCT, clearly we will be pushing the needle in a significant way. With SMEs making paints, wires, roofing

sheets and all of the building materials, we will really be creating opportunities for labourers who use them, transporters, food vendors and others; it is a huge ecosystem of activities”, Fashola in his further remarks that the one bedroom and two bedroom apartment housing units not only conform to the policies set out in the Ministry regarding building for the low and middle income “and the young generation of Nigerians who are really on the go, so to speak”, adding that the Banking Sector would also benefit when houses would be sold and bought. He further pledged that his Ministry would continue to complement the efforts of the FHA with what it was doing presently and what the Federal Mortgage Bank was doing to open up opportunities to allow for mortgage lending.

International food, drinks festival lights up Ibadan this Easter TEMITAYO AYETOTO

ll is now set for the International Food and Drinks Festival season 2 in the city of Ibadan, the Oyo State capital, to celebrate this year’s Easter. The festival, conceived to be a gathering of fun-lovers especially families with special interest in food and drinks, will run from Friday, 19th and to Monday, April 22, 2019 at the popular Ibadan Recreation Club, Adamasigba, Ibadan. Over 20,000 participants and reputable big brands in the food and drink sector are expected

to grace the event which is modelled after successful similar festivals all over the world, said Clemence Eki, the project coordinator. “Specifically, we are putting this event together to further create value for big players (brands) and SMEs in the food and drink sector of our economy by bringing them together under one roof of unlimited sales opportunities,” Eki said. “More importantly also is to create a very good ambience for fun-loving Nigerians especially families to enjoy the season of Easter which stretches through the duration of the event,” he said. Eki said the International

Food and Drinks Festival season 2 is coming bigger and bolder than the maiden edition held this same period last year. “Families and fun-lovers are in for lots of fun-filled surprises in terms of entertainment to complement good food and drinks from reputable brands to make this year’s edition a memorable family event,” he said. Confirmed line-up of popular entertainers to grace the four-day event to deliver a total entertainment this Easter season includes crowd-pullers like Woli Agba, Aroleowo, Skibii, amongst other popular disc jockeys.

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NEWS Port security: STOAN says Nigerian port terminals now ISPS Code compliant AMAKA ANAGOR-EWUZIE

eaport Terminal Operators Association of Nigeria (STOAN) says all concessioned port terminals in Nigeria are now in full compliance with the provisions of the International Ships & Ports Facility Security Code (ISPS) Code. The ISPS Code, which is being implemented under the auspices of the International Maritime Organisation (IMO), is an amendment to the Safety of Life at Sea (SOLAS) Convention (1974/1988) on minimum security arrangements for ships, ports and government agencies. It came into force in 2004 with specific responsibilities to governments, shipping companies, shipboard personnel, and port/ facility personnel to detect security threats and take preventative measures against security incidents capable of affecting ships or port facilities used for international trade. Bolaji Akinola, STOAN spokesman, said in a statement on Wednesday that private terminal operators had made significant investment in ensuring adequate security measures in their operational areas in full compliance with the ISPS Code. “The ISPS Code is an essential maritime regulation for the safety and security of ships, ports, cargo and crew. For this reason, all private terminal operators at the six

major port complexes across the country do not take the responsibilities of ensuring adequate compliance to the provisions of the code lightly,” Akinola said. Continuing, he assured, “We have made, and will continue to make, significant financial investments towards ensuring that every operational area assigned to us in the ports are well secured. He said terminal operators had invested significantly in technology, patrol vehicles, perimeter fencing and adequate security personnel in ensuring that only authorised persons gain access to concessioned terminals. He also said all the concessioned port terminals across the country have adequate Closed Circuit Television (CCTV) coverage to monitor activities, and also maintain strict access control to human and vehicular movements. He commended the Nigerian Ports Authority (NPA) and the Nigerian Maritime Administration and Safety Agency (NIMASA), which is the Designated Authority (DA) for the implementation of the ISPS Code in Nigeria, for working with the terminal operators in ensuring that Nigerian ports remain complaint to the international port security measures. He however appealed to the Federal Government to strengthen the Marine Police to effectively patrol the port waterfronts in order to keep intruders at bay.

EIRS commences aggressive tax enforcement exercise

do State Internal Revenue Service (EIRS) has commenced aggressive tax enforcement exercise to collect revenue owed the state government. In a statement in Benin City, Igbinidu Inneh, its executive chairman/CEO, said the tax agency advised members of the public to take note of the commencement of the exercise and make sure to settle all their tax liabilities to avoid sanctions.

According to Inneh, “This is to notify the general public that the Edo State Internal Revenue Service has embarked on an aggressive Tax Enforcement exercise of all Revenue owed Edo State Government, particularly Income Taxes, Consumption Tax as well as Road Taxes.” “By this notice, the general public is advised to take note and settle all their tax liabilities to avoid sanctions.”

President Muhammadu Buhari signing the New National Minimum Wage Bill into Law at the Presidential Villa in Abuja

Apapa-Oshodi Expressway: FG, contractor urge cooperation as reconstruction commences CHUKA UROKO

he Federal Government and Hitech Construction Company, the contractor handling Apapa-Oshodi Expressway reconstruction project, have urged for the cooperation of motorists, Apapa residents, business owners, port users, security agencies, and sundry stakeholders as reconstruction work commences on the road. Barring unforeseen circumstances, the contractor will be mobilising fully to site on Monday next week for full-scale reconstruction work on the 32-kilometre expressway, which was constructed between 1975 and 1978 but has not received a comprehensive maintenance despite its dilapidated condition. The reconstruction work, flagged off last year by the Federal Government, is being undertaken by the Dangote Group, which will be spending an estimated N72 billion it would have paid as tax to the

Mantrac Nigeria, NAMEL partner to cultivate 500,000 hectares of land

ope of boosting agriculture and guaranteeing food security and export in Nigeria has brightened as Mantrac Nigeria and the Nigerian Agricultural Mechanisation & Equipment Leasing Company (NAMEL) signed a memorandum of understanding(MoU)tolaunchanIntegratedNationwideAgriculturalLand Development Scheme (INALDS). The project is a private-sector initiative designed to open up an initial 500,000 hectares of unused arable land using the appropriate agricultural land development technology;thepaymentisstructuredona flexible deferred system over a period of one to three years. The project also accommodates farm management and global best practices along the agricultural value chain to optimise the use of the developed lands. It is structured to complement and optimise government’s efforts and resources in land development

using a cost-split mechanism to support small-holder farmers and youth empowerment programmes, while creatingaflexibleinvestmentwindow for medium and large-scale primary production investors to open more land at reduced initial cost. Speaking at the MoU signing event, Mohammed Ibrahim, general manager, machine sales, Mantrac Nigeria, described the joint effort with NAMEL as one that would yield good results to the benefit of the agric sector and the nation at large. Ibrahim, who represented the managing director of Mantrac Nigeria, said the company was totally committed to empowering farmers for them to realise higher yields. Some crops of interest for cultivation include rice, wheat, cassava, sugar cane and yam, among others. Earlier in his remarks, the representative of the agric minister, Victor Mayomi, assured the parties www.businessday.ng

of robust government support, especially in the urgent task of making agriculture a major non-oil revenue earner. Also commenting on the partnership, the managing director of NAMEL, Ahmed Adekunle, said the deal and partnership was first of its kind. “It is the first private sector companies partnering strongly with the Federal government to manage public sector funding for agriculture and economic development in general. Now, we have another private sector partner for land development for agriculture. What we are signing today was discussed several years ago. However, we developed the MoU over a year ago to open up 500,000 hectares of farmlands to provide market for our mechanisation programme. We’re not opening land alone, we are also looking at inputs application, packaging, standardisation, etc,” he said.

Federal Government on the road reconstruction. Adedamola Kuti, Federal Controller of Works in Lagos, noted at a stakeholders meeting Wednesday, that there would be discomfort and inconveniences, particularly on motorists and residents during the reconstruction work, hence the call for cooperation and understanding of all concerned. The contractor disclosed that the entire expressway had been segmented into four sections and work will be going on simultaneously on all the sections, adding that there would be diversions of traffic from the main carriage way to the service lanes and vice versa. “The road will be reconstructed in four sections and each section will also be done in phases. In some cases, the entire road will be closed; there will also be cases where the main carriageway will be closed and traffic diverted to the service lanes and vice versa,” Ivan Bekker, Hitech’s managing director, stated at the

stakeholder’s meeting. Bekker noted that the only way to ensure completion of the reconstruction work on schedule was the cooperation of motorists by following diversions, obeying traffic signs and avoiding driving against traffic, which would lead to gridlock and congestion. The Federal Roads Safety Corps (FRSC) and other stakeholders including truck owners, Nigeria Ports Authority (NPA), the army, LASTMA, etc, however assured the contractor and the motoring public that there would be free flow of traffic on all the routes to Apapa during the reconstruction period. Hygenius Omeje, the FRSC Sector Commander in Lagos, assured that just like what happened during elections, all the trucks currently parked on roads and bridges would be made to return to their respective parks. He added that the little hitches that led to the collapse of the manual call up system for truckers would be addressed so

that trucks that did not have any business at the ports would not be seen in Apapa and environs. Emmanuel Akporherhe, port manager, Tin Can Island Port, NPA, also assured that they would improve port operations to ensure that there would be no congestion at the ports. He disclosed that plans were already underway to digitalise and automate the call up system in order to free it from manipulation and compromise. Truck owners also disclosed a grand plan they had to ensure that the trucks were taken off the expressway to allow for free movement of construction vehicles and materials. “We have been meeting and will be meeting again tomorrow (Thursday) to ensure that before work starts on the expressway by Monday next week, all trucks must have been taken off the roads and bridges,” assured Olaleye Thompson, who represented Amalgamation of Container Truck Owners at the meeting.

LBS SMP69 organises inaugural business conference

enior Management Programme 69 Alumni (#SMP69Alumni) of the Lagos Business School (LBS) organised its inaugural business conference that brought together industry experts and other notable personalities to discuss the theme, ‘Making Lemonades - Creating Opportunities in a Challenging Economy’. The event, which took place at the institution’s campus, had business professionals, captains of industry, and other stakeholders in attendance to ideate, share experiences, and proffer possible solutions to the challenges facing the business environment and mitigating the economic development of Africa. Moderated by finance professional, Martins Arogie, the alumni event featured keynote addresses and engaging panel sessions with speakers including Ademola Odey-

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emi, executive director, International Banking, GTBank; Imrane Barry, managing director, Total Nigeria; Yusuf Kazaure, MD/CEO, Galaxy Backbone Limited, and Olivier Angot, chief financial officer, IHS Towers. While speaking, Kazaure made a case for process digitisation, saying it was important in creating an efficient governance system. “Government parastatals must leverage technology to streamline their processes. This is the only way to be nimble and efficient to create an enabling environment for citizens. Bureaucracy stifles growth in any country thus a need for digitisation, which requires you to go back in and re-engineer the entire process of government. Digitisation will aid in driving transparency and accountability in government,” he said. “Complexity is everywhere and it @Businessdayng

is important to constantly review your processes. The environment constantly changes forcing you to either adapt or fade away,” Kazaure said. Ademola Odeyemi highlighted values derived from investing in training and capacity development in the quest to build sustainable businesses, which has the capacity to profitably exist beyond the lifespan of their founders. “Training and development of staff is an investment and must be seen as such. Your staff provides the source of ideas that can expand your firm. Building a culture of excellence will provide an atmosphere for growth,” Odeyemi said. “Sustainability is essential for African businesses. It must be an instilled value during your daily activities. African companies must envision surviving beyond the life of the founders.”

Friday 19 April 2019

BUSINESS DAY

NEWS

50,000 Nigerians benefit from GIZ $28m skill empowerment programme Gbemi Faminu

he Deutche Gesellschaft fur Internationale Zusammenarbeit (GIZ), a German government’s skills development programme for youths, has invested $28 million on youth empowerment across Nigeria. This was disclosed by Tobias Wolfgarten, advisor for Vocational Education and Training, GIZ Nigeria, at the graduation ceremony of the first batch of the beneficiaries of the GIZ empowerment programme in partnershipwiththeFieldofSkillsand Dreams academy (FSD). According to Wolfgarten, GIZ projectaimsatequippingyouthswith skillsandabilitiesthatenablethemget employedinthelabourmarket,asthe empowerment programme is also targeted at growing the agriculture and construction sectors. Tobiassaid,“$28millionhasbeen set aside for 50 thousand Nigerian youths across the country over a 4 year period. While in Lagos, the focus is more on construction, work is presentlyongoinginOgunstate,andplans arebeenimplementedtoreplicatethe action in Edo and Kaduna where the focus will be more on agriculture.” The GIZ partnership with FSD is the first collaboration that has produced the first batch of beneficiaries, he said, adding that going forward by the second half of the year, there will be more batches and collaborations with other private partners including Dangote Academy, which will offer more courses adding that the different courses

will span for different durations like 3 months, 6 months, 12 months depending on the course. Omowale Ogunrinde, executive director of the FSD, disclosed that the empowerment programme in partnership with GIZ had equipped 300 beneficiaries in the first batch of its program adding that FSD, which started officially in 2005, had trained over 10,000 people in Nigeria. Ogunrinde disclosed that the training, which spanned for three months started with the screening of 598 applicants, in which 302 applicants were accepted and started the training program, although only 300 people were trained and 295 were able to graduate. She said, “Most of the trainings are practical based after which the students were examined by an external body which grants them valid and qualified positions so they learn, access and become certified to practise what they learn.” ShefurtherdisclosedthatFSDhas worked in states across Nigeria while partnering with other international organizations including the United States consulate Folusho Samuel, deputy director at Industrial Training Fund, Nigeria who was the guest speaker commended the institute and GIZ, speaking to the beneficiaries, she commended their zeal to work and advised that there is need to further develop themselves on the skill they have learnt. She also stated that extra efforts in their work would attract progress and success.

We will commence plans to re-open New York route in 18 months – Arik Air … as ICAN commends airline for having large membership IFEOMA OKEKE

rik Air, one of Nigeria’s major domestic carriers, says it will commence plans to re-open its New-York route in 12 to 18 months. Speaking at the visit of Razak Adeleke Jaiyeola, the 54th president of Institute of Chartered Accountants of Nigeria (ICAN) to its office in Lagos, Roy Ilegbodu, CEO of Arik Air, explained that to commence the process of reopening the New-York route was quite complex, especially having to settle debts left behind by the past management.

“The past management left a lot of debts internationally and those are part of the issues we have to address before going to other routes abroad,” Ilegbodu said. He said, “We plan to recommence modalities for our New York and other international operations sooner or later. Sometime next year we will commence the process, we will look at the critically because the process is complex. This process is not easy, it would take at least a year or 18 months to get back to that stage. “It will happen, but it will not happen soon as the past management left a lot of debt and they need to be addressed

before we fly to other routes internationally.” The Arik boss however said the current management was on the threshold of taking the airline to greater glory as it had stabilised the ship. “We’ve had our ups and downs but we have stabilised and are consolidating. In the near future, you will see an airline that is better than before,” he said. He expressed hope that the relationship it shares with ICAN would wax stronger, adding that Arik as an airline had employed over five chartered accountants and was not hesitant to employ such top notch professionals into its service.

Osagie Ogunbor, the group executive director, corporate service of Nosak Group, says the donation is in tandem with the corporate social responsibility policy of the company, which is tied to its slogan, ‘touching lives everyday’. Represented by Kenneth Adejumoh, the corporate communications manager of the Group, states that the organisation will continue to support the government and the people through its CSR initiatives in reaching out to various com-

munities especially in their time of need. “We are here to demonstrate what we stand for and to show our support in your time of need. The government alone cannot carry on the task of providing shelter, provision of foodstuff and other items for your daily upkeep that is why we have come to contribute our quotaand to encourage you to remain strong as things get better for every one of you again,” Ogunbor says. Tiamiyu Adesina, the general

Speaking earlier, Jaiyeola, the ICAN president, appreciated the great strides in Arik and the renewed vigour that had championed the airline’s turn around. “We appreciate the great strides of Arik, the renewed vigour and the consolidation in the airline that has kept it. We also want to thank you for engaging our members of the institute and tell you it is a good development and also enjoin you to employ many more.” It will leverage technology at its conference coming up April 29 and 30, appealing to the airline to give its members sponsorship.

Nosak Group donates relief materials to victims of Lagos building collapse

s part of its social responsibility to the society, Nosak Group has donated food items and other relief materials to the victims of Ita-Faaji collapsed building and others from the demolished distressed buildings in Lagos Island. The presentation was held at the Lagos State Resettlement Centre, Igando. Relieve items donated included cartons of Nosak Famili Pure Vegetable Oil, bags of rice, cartons of noodles, toiletries, among others.

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manager, Lagos State Emergency Management Agency (LASEMA), receiving the items on behalf of the victims, says it will go a long way to alleviate the predicament of the people. He uses the opportunity to call on other corporate organisations and well-meaning Nigerians to do likewise in rendering support to communities and people in need. Speaking on behalf of the over 400 inhabitants at the centre, Adekunle Ajiba and Daniel Ikpefuran laud Nosak Group for the kind gesture.

Friday 19 April 2019

BUSINESS DAY

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Why CEOs should elevate strategic thinking in their organizations FRESH INSIGHT FOR CHALLENGING TIMES

‘Uju Onwuzulike’

ften times, CEOs are unaware of how their managers and those that lead teams encourage or discourage their people from thinking about the right approach for better performance. In my early days of employment, a very senior person whom every one respects has said to me before: “Uju you are not paid to think, you are paid to carry out instructions, those that are paid to think sit up there in the executive management floor. Sadly, this erroneous belief still exists today in organizations. I was more than surprised when during a session for 18 mid level managers, about 15 of them mentioned that their managers at one time or the other (directly or indirectly) have said the same to them. If CEOs do not act fast to counter this erroneous belief it will continue to fester. The truth is that everyone is paid to think for his or her organization! On the side of the CEOs and organizations that encourage their people to always wear their thinking cap at work (encouraging them to think), most of their people are at lost when they are told to be strategic or think strategically. The truth is that most people do not know how they can think strategically or become strategic. And because they don’t understand what strategic means, they will not be able to relate the strategic issues their organizations are facing let alone thinking strategically in solving those issues. Based on my interactions working with CEOs, every one of them would like to have people who are strategic, innovative, who can lead and manage change especially in difficult

times, and who has the organization’s growth in mind – and all these are embodied in the capability of strategic thinking. So, as the CEO, it is more than necessary for you to champion strategic thinking in your organization as no one else can do it better. More than ever, the turbulent times businesses are facing in Nigeria and globally call for organizations to be more strategic in all facets of their business operations. It is no more enough to achieve medium to long term growth in this fierce economical situation by only offering good products or services (your competitors are doing same like you). Often times, executives that are close to me and also my MBA students have asked: how can they determine when what they or their organizations are doing is strategic? Well, determining what is strategic is about deciding whether something matters to your organization’s success and demands being addressed with insight and innovation – and the key skill required is strategic thinking. Let me also add that what could be strategic to your organization might not be to others, that is why it will be good for your company to “run your own race.” According to The Wall Street Journal “the number one ranked and most valued skill in leaders today is strategic thinking”. But sadly, only 3 out of every 10 managers are strategic. This explains why we have strategic plan documents abandoned on the shelves; we have lots of missed strategic opportunities in organizations, lack of clear cut strategies, poor implementations, low profitability and misalignment of goals. As a CEO, one of the urgent rewarding actions you can take is to bridge the gap and get everyone to think strategically about the growth of your company. Gone are the days when only the executives and managers are expected to think strategically, now everyone in the company that breathes is also expected to think strategically – the same way they can’t do without breathing, the company can’t do without them thinking strategically. Interestingly, when your people

are not thinking strategically, they are only short changing the company’s performance. They would not be able to see things differently, act differently or be able to see opportunities that others have not seen yet. To buttress my point, I carried out an experiment during an in- house strategic thinking session I conducted for a company. The participants were asked to conduct the usual SWOT analysis of their company during the program. One thing was obvious they carried it out as if it was an academic exercise, and because they have not learnt to think strategically (remember only 3 out of 10 managers are strategic), they did not have basis to relate each letter of the SWOT. The SWOT analysis ended up becoming a blind list of items without serious thoughts on how to achieve the objectives. This is why some people will argue the usefulness of SWOT analysis. Please note, in your strategic planning process, Future Environmental Scanning should be carried out before your SWOT analysis. But by thinking strategically, your people can add depth and breadth to that same SWOT that everyone does. Not only that, they can also generate useful ideas that will end up pushing their thinking into areas they would have overlooked or ignored. By so doing your company would have touched some key areas that can deliver remarkable results. So how did we carry out the SWOT exercise to reflect our thinking during the session? We did the following, instead of just asking, what are our strengths, weaknesses etc, we took a different approach still using the same SWOT: What are our STRENGTHS relative to the following? • How we deliver value for customers? • Creating lasting relationships with stakeholders? • Moving with greater agility than competitors? • Creating engagement with our employees? What are our WEAKNESSES relative to the following?

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Interestingly, when your people are not thinking strategically, they are only short changing the company’s performance

• Delivering the product attributes and performance most important to customers? • Staying ahead of competitors’ strategic moves? • Instigating market disruptions? • Cultivating a workforce with the greatest potential to create an amazing customer experience What are our OPPORTUNITIES relative to the following? • Market needs we have yet to address? • Delivering a more incredible brand experience? • Entering markets providing underdog advantages? • Converting attractive prospects not currently doing business with us? What are our THREATS relative to the following? • Emerging competitors playing by different rules? • External forces redefining competitiveness? • Customer perceived gaps in how your brand delivers its promise and experience? • Basic systems whose failure would jeopardize success? When you group your people to carry out the above exercise, IMAGINE the kind of amazing results they will deliver to your company. Interestingly, you may not even need an external consultant to drive this SWOT process. As a leader, CEO or manager, getting everyone to think and act strategically on a daily basis for your organization’s overall performance is a capability that can be built and is required now more than ever. As always, I welcome your comments, questions or requests. A very trusted advisor, Uju Onwuzulike is Nigeria’s leading authority on Systems Thinking and Strategic Management. He was a Steve Haines trained strategy and systems thinking expert and a former global partner of Haines Centre for Strategic Management, California, USA. He is the founder and Chief Results Officer of MCL – a strategy and outstanding performance specialist firm. He can be reached on 09091142093 or uju.onwuzulike@mclgroup.net.

Itafaji and the politicizing of national tragedy Adesegun Ogundeji

he penchant to politicize national tragedies has reached alarming proportion in our dear nation. Could it be a hangover of the 2019 election or a build up to the 2023 change of baton? Does the ambition of anyone really worth the life of any other person? I ask these pertinent questions because I cannot bring myself to reconcile with some comments on social and print media, of late. I wonder where morality, empathy and sympathy have gone. Humanity has given way to bestiality. Compassion has taken flight and hatred firm rooted in its place. Recently, some Facebook friends carpeted victims, survivors and relations of the senseless bandit attacks in Zamfara, Katsina, Yobe and Borno States as reaping the consequences of their indiscretion and uninformed decision to vote the President after they had been warned. It was their dividend of the “next level”, they enthused. However, the same people have maintained stoic silence about the Tiv/Jukun war and the wanton killings that followed. When there was any infraction bothering on resource control and

access between the farmers and herders, they are quick to allege that it was the President that was out to decimate the Christian population. Having gone through some of these stories, one is not really supposed to be bordered by the piece titled Ita Faji and the Legacy of “Progressivism” by Feyi Fawehinmi which was published in the Guardian of Tuesday, April 9, 2019 because it falls in the category of what I term politicizing tragedy. For crying out loud, the Ita Faji building collapse tragedy which claimed lives, especially of young school children, deserves to be treated with caution and empathy. It is expected that those passing commentaries on the incidence should be strictly concerned with seeking solutions, and not peddling of falsehood all in an attempt to disparage perceived political foes. It is, therefore, against this background that one finds it compelling to correct some impressions that the said piece sought to create in the minds of the people. While it is true that Private Schools have a substantial number of pupils and students in their care, it is not correct to say that only 451,000 were in State Schools when the real figures are 497,318 in Primary Schools, 316,419 in Junior Secondary Schools and 248,339 in Senior Secondary Schools. Also, it is not fair to state that a State like Lagos, which in 2016 Budgeted N113.3bn representing 17.11% of the State’s budget and about

one-third of the N369bn budgeted by the Federal Government for education in the entire country, is not sensitive to education development. There are about 18,000 Private Schools in Lagos State both registered and unregistered and there are more than 5million buildings in the State. Simple logic will inform discerning minds that the school buildings represent a paltry 0.0036 of all buildings in the State. How does this translate to the assertion that “if a building collapses anywhere in Lagos today, it is likely to involve a school”? Furthermore, it is either ignorance or sheer mischief that would make anyone assert that the Ministry of Education in Lagos State has been under the supervision of Deputy Governors since 1999 and that the Deputy Governors also superintended the Ministry of Local Government and Chieftaincy Matters and Chair the Committee on boundary disputes. For the avoidance of doubt, a check on the appointments in the State in the last 20 years will put the record straight. One, none of the three Deputy Governors who served the Asiwaju Bola Tinubu administration namely Mrs. Kofoworola Bucknor-Akerele, Mr. Femi Pedro and Prince Biodun Ogunleye was in charge of Education. During the tenure of the immediate past governor, Mr. Babatunde Fashola, SAN, Mrs. Sarah Sosan, an educationist oversaw the Ministry of Education but did not double as Commissioner

for Local Government and Chieftaincy Matters. Barrister Ademorin Kuye was in charge of that portfolio. Mrs. Adejoke Orelope-Adefulire who was the Deputy Governor during the second term of Mr. Fashola was in charge of the Ministry of Women Affairs and Poverty Alleviation not Education. Today, the Deputy Governor, Dr. Idiat Oluranti Adebule, a seasoned educationist is in charge of Education while the Local Government and Chieftaincy Matters is handled by Mr. Muslim Folami. To pretend not to see what successive governments in Lagos State have done in the area of regulating private schools is a disservice. Without a doubt, there is no contesting the fact that a lot still needed to be done to sanitize the system, but asserting that private schools in the State was a disaster waiting to happen and “this is the legacy of 2 decades of progressivism in Lagos” is simply taking hypocrisy to a ridiculous height. One doesn’t, therefore, need to be a prophet to discern that the writer was only doing a hatchet job for some pay masters.

Note: The rest of this article continues in the online edition of Business Day @https:// businessday.ng Ogundeji is Deputy Director, Public Affairs, Ministry of Education, Alausa, Ikeja

Friday 19 April 2019

BUSINESS DAY

comment How we work is changing

Temitayo Fagbule

he driver I hailed one Wednesday morning (his second ride since he hit the road at 5:30am), works in a state polytechnic. This is not a side hustle; he needs the money for “family upkeep”. A 78-month squabble over salary arrears, after the state government approved promotions across board, is being contested in court. The union is on strike. “Every kobo that is due to us is being used to fight us,” he laments. In the meantime he’s driving to make ends meet. The car is one of a fleet of 10 owned by a lady who rents them out for N30,000 weekly. If he’s lucky he earns N5,000. “My legs ache,” he says. “But I like to walk. Every Saturday morning I take a walk before I set out to work.” Humans are the only beings who make a living from their basic needs: food, shelter, clothing, mobility, and interrelationship. The work of our hands has invented and performed life-saving medicines and procedures, cooked mouth-watering, finger-licking-bot-

tom-pot delicacies; built infrastructure, designed clothing, engineered cars, written software and discovered new ways to teach and communicate. The prelapsarian command to work, to till the earth and subdue it, is as new as when it was first uttered. Our basic needs haven’t changed but how we meet them, how we work, is changing. Technologically-driven changes like automation are delivering economic efficiency, disrupting industries and causing social disharmony. Smartphones are said to be the new means of production. “Pressing phone”, that very Nigerian expression, aptly captures this reality. With a few presses on my phone I check the time and distance to my destination, hail a taxi, make a bank transfer, and give instant feedback. #ThisIsMyHustle trended last month when young Nigerian entrepreneurs posted pictures and talked about their work on social media. We may not work the way we used to but our hands keep working. “God gave us 10 styluses. Let’s not invent another”, says Steve Jobs in his official biography about the touchscreen design of the first iPhone. Jobs’ fascination for calligraphy, the art of decorative handwriting, influenced the design of the first Mac. The iPhone and Mac have changed how we work. Coders love Macs. Whether they’re engrossed writing or patiently debugging lines of code, they prefer to use their hands, not a mouse. With their hands coders build the tools of social networks; they are the architects of the operating system of the world we

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live in today. Coders dislike inefficiency; they don’t hesitate to automate any process to optimise it. They want to optimise and scale how we communicate, produce goods and services, make payments, buy and sell online. Thus the rise of automation, robotics, and artificial intelligence (AI,) that enhances efficiency for millions of people. When personal computers were invented there were fears typists would lose their jobs. Likewise in the 21st century, individuals, countries and companies worry about how automation will change how we work. Headlines, reports and conferences about the future of work and how machines will replace human beings are as regular as a Lagos go-slow. Add to the advent of these new technologies the challenges of our times – illiteracy, unemployment and insecurity – and it’s easy to succumb to the inevitability of a dystopian future where machines run the world like in The Matrix. Last week, at UNIV, an international annual forum held in Rome, university students from all over the world gathered to discuss the theme “Getting Down to Business: The Transformative Power of Work”. A similar event took place at the Pan-Atlantic University in Lagos with students from over eight Nigerian universities. “UNIV conferences broaden horizons, exchange ideas and reflect constructively on the most important issues for today’s youth and society,” says Ike Onuoma, a lawyer and convener of UNIV Nigeria.

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The prelapsarian command to work, to till the earth and subdue it, is as new as when it was first uttered. Our basic needs haven’t changed but how we meet them, how we work, is changing

It makes sense to get Nigeria’s youth involved in the discussion about the human capital required in the fastchanging world we live. It’s their future after all. And besides, as university students such events are what should occupy their time rather than drugs and parties. On the contrary, in Europe, China and the US, , companies, entrepreneurs, NGOs, academics and researchers at think tanks and universities are thinking about the momentous transformation we are facing. What are the jobs of the future? What skills are needed? How far and fast can these skills be taught? How can the opportunities that these new means of production create be put in more hands so that one is left behind? Imagining the world will end up like The Matrix is naive; our imagination, our ingenuity, our hands are the sources of the infinite possibilities of human work. But we must get down to business. We need to think, beyond the scope of AI, beyond the limits of a robotic arm, about things our hands can do. Fortune, they say, favours the prepared. Like the driver, and the lady with her fleet of cars, resilience, problemsolving, diligence, creativity and service to others are some of the personal capacities the 21st century professional requires to convert needs into opportunities and vulnerabilities into strengths. Fagbule is Chairman, Editorial Board

Banks as collecting agents for FIRS – A conundrum Ifeatu Medidem

he Federal Inland Revenue Service has intensified its drive to recover outstanding tax liabilities from taxpayers in default of tax obligations. To this end, FIRS has been writing to taxpayers’ bankers, appointing the banks’ agent of the banks’ customer, to collect outstanding tax liabilities from the taxpayers’ bank account balance. This is referred to as tax substitution. FIRS bases its appointment of the banks as collecting agents on the provisions of Section 49 of the Companies Income Tax Act 2004, and Section 31 of the Federal Inland Revenue Service (Establishment) Act 2007. Section 31 of the Federal Inland Revenue Service (Establishment) Act 2007 provides: • The Service may by notice in writing appoint any person to be the agent of a taxable person if the circumstances provided in sub-section (2) of this section makes it expedient to do so. • The agent appointed under sub-section (1) of this section may be required to pay any tax payable by the taxable person from any money which may be held by the agent of the taxable person • Where the agent referred to in subsection (2) of this section defaults, the tax shall be recoverable from him. • For the purposes of this section, the Service may require any person to give information as to any money, fund or other assets which may be held by him for, or of any money due from him to, any person. • The provisions of this Act with respect to objections and appeals shall apply to any notice given under this section as if such notice were an assessment.” Section 49 of the Companies and Income Tax Act, 2007 also empowers the FIRS to collect tax due

from companies and appoint agents to collect tax due from companies, thus: “The Board may by notice in writing appoint any person to be the agent of any company and the person so declared the agent shall be the agent of such company for the purposes of this Act, and may be required to pay any tax which is or will be payable by the company from any monies which may be held by him for or due by or to become due by him to the company whose agent he has been declared to be, and in default of such payment, the tax shall be recovered from him”. Typically, FIRS instructs the bank to set aside an amount equivalent to the tax payer’s outstanding tax liability and remit same to FIRS. FIRS also directs that the bank place a restriction on the tax payer’s accounts and inform FIRS of any transaction on the tax payer’s account prior to execution on the accounts. The bank is also expected to release the tax payer’s bank statements and other financial records to FIRS. The banks, probably concerned about compliance and cooperation with government agencies are quite swift to comply with the directives. Some valued customers are lucky to receive some notification, prior to the bank’s execution of FIRS’ directives; others, not so much. Understandably, given how difficult it often is to recover outstanding debts from recalcitrant debtors, it may not be so surprising that FIRS devised this strategy. But the appointment of banks as collecting agents has stoked several fundamental issues in relation to the propriety or otherwise of the action. Chief of which, is the constitutionality of FIRS’ appointment of banks as collecting agents to collect and remit outstanding tax liabilities of taxpayers, without court orders. This is beside the conversation around the hardship that may be occasioned the taxpayer who has had its bank account restricted, particularly where it turns out that the restriction is unjustifiable. However, a salient issue that seems to have eluded discussion is the query, “Is a bank legally enabled to act as collecting agent to collect outstand-

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ing tax liabilities from its customers’ bank account(s) on behalf of the FIRS?” FIRS’ appointment of a bank as a collecting agent imposes a mandatory responsibility On a cursory reading of the provisions of Section 31(3) FIRS Establishment Act and Section 49 of theCompanies Income Tax Act, it may appear that the provisions create an ordinary principal/ agent relationship between FIRS and the appointed collecting agent. By principles of law, an agency relationship presumes a payment obligation between the principal and the agent. This is not the case with tax substitution, because the appointed/declared agent is the agent of the taxpayer and not FIRS. The provisions of Section 31(3) of the Federal Inland Revenue Service (Establishment) Act 2007 and Section 49 of the Companies and Income Tax Act, 2007 impose a mandatory responsibility on the Bank appointed as collecting agent, rather than a commission earning activity. By these provisions, where the FIRS appointed bank fails to remit the outstanding tax liability from the taxpayers’ funds in its custody, such bank would be personally liable to FIRS for the tax payer’s outstanding liability. This certainly places the banks between the devil and the deep blue sea. Banks owe a duty of confidentiality/secrecy to their customers with some exceptions A pressing issue for concern, as to the propriety of the banks’ appointment as collecting agents for FIRS, is the unavoidable breach of a bank’s fiduciary duty to its customer. This issue has raised a lot of hue and cry, over FIRS’ appointment of banks as collecting agents over their customers’ outstanding tax liabilities. A bank and its staff are obliged to keep secret, information regarding the business and account(s) of its customers. In Tournier v National Provincial and Union Bank of England, (1924) 1KB 461, Bankes LJ of the Court of Appeal of England held that confidentiality was an implied term in the customer’s contract and that any breach could give rise to liability in

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damages if loss results. As with every general rule, there are exceptions to the duty of the bank to keep secret, every information regarding the customer’s account(s). These exceptions are: 1. Where the bank has a duty to the public to do so. 2. Where the bank’s own interest requires disclosure: – This occurs for example, where legal proceedings are required to enforce the repayment of an overdraft or where a surety has to be told the extent to which his guarantee is being relied upon. 3. Where the bank has the express or implied consent of its customer to do so: – where he supplies a reference to its customer or where it replies to a status inquiry from another bank. 4. Where disclosure is required by law. FIRS’ appointment of banks as collecting agents in respect of the bank’s customer’s outstanding tax liability, ostensibly falls under the exception (d) above; given the provisions of Section 31(3) FIRS Establishment Actand Section 49 of the Companies Income Tax Act. Yet, the manner in which the banks typically respond, with swift compliance, undeniably raises issues of conflict of interest and breach of the bank’s fiduciary duty to its customer. The banks’ compliance with the directives imposed by the FIRS, against ‘tax defaulters’ (customers of the banks) involves a glaring breach of the duty. A bank cannot perform the obligations of tax substitution, without impairing the confidential obligation it owes its customers. This confidentiality obligation is the pillar of banking. Clearly, the banks, as collecting agents for FIRS, are conflicted, in that they are torn between complying with directives of FIRS, a government agency; and fulfilling their obligations to their customers.

Note: The rest of this article continues in the online edition of Business Day @https:// businessday.ng Medidem is Senior Associate, Olisa Agbokoba & Co

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Friday 19 April 2019

BUSINESS DAY

comment The box and cedar person

Olamide Balogun

e all know that the job description document is very important. It is a profile document that should enable you hire the appropriate person you require. The JD is a profile of the job duties, the expected experience and skills required from the prospective employee. What many people don’t know and therefore don’t do is the importance of creating a personality profile for the person in the job. Understanding people is an essential skill when recruiting, managing and team building. Having a comprehensive and objective view of how a personality works is a major advantage in the workplace and can give you the competitive edge you’re looking for. DISC is one of the most popular personality profiling techniques available today; simple to use, but as detailed and adaptable as your business needs, with powerful and insightful results. This is what I use. In recruitment many never consider their behaviour. In recruitment we say we usually recruit for skills but fire for attitude. What this means is that we concentrate on what the person can do and totally ignore their behaviour. However skills can be taught but behaviour is inherent and can’t be easily changed. It is much better to start with behaviour and end with skills because you can always teach the person with the right behaviour the right skills while it is much harder

to teach the person with the right skills good behaviour. I remember about twenty years ago when I did my first personality profile analysis, I came to understand myself for the first time. It was so accurate and even revealed some blind spots I did not know I had. It is important to start off with profiling the behaviour required for the particular job. So for example take sales and marketing jobs. Many people think they are the same thing and recruit people with the same personality profile into these jobs. Sales is the process of selling while marketing is the profiling of the buyers and matching them to the products. So sales people go after the people that marketing have identified as potential buyers. Marketing is a science while sales is an art and the same type of people can’t do both. A marketer should be someone who can do analysis and has the patience to experiment and must be happy to write reports. A sales person on the other hand should be someone who likes people and is not intimidated at talking with total strangers. This person has to be someone who likes to get up and go out even though it is pouring with rain and there is gridlock traffic. If you get a get up and go person in the marketing job they will not thrive and if you get the person who likes to be in the office doing analysis and writing reports in the sales job they will not thrive. However when you put each personality profile in the correct job for their profiles to thrive, you can teach them the skills required for the job and you will get an A class employee. Many companies say they want bubbly people who dress well and speak well. The truth is that all employees in a company cannot be alike because the jobs are diverse in the profiles and personalities. So my personality profile gave a hint on how to manage me in the workplace.

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It said you should give me a job, explain what you want and leave me to get on with it. I will not thrive with having a micro manager managing me. I will not thrive in an environment where I am not given room to express myself. However when left on my own I work so well to achieve the goals set. This means not only do you get the profiles of the job right you have to get the profile of the supervisor of that job right also in relation to the job. Another example is in hiring a front desk person. You have to balance someone who likes people with someone who is compliant and will demand certain things before people are let in the front door. Just for your information, those people who like people may not be able to keep still and so may not always be found at their duty post therefore leaving the job very badly done. DISC uses four profiles the Dominant Compliant Steady one Influential So take those who have a high dominance personality they are Self-reliant, relying on their own independent resources, rarely looking for help or support from those around them. They are Competitive and are motivated by success, especially tangible success in competition with others. They are ambitious, and relate to a clear set of goals or ultimate aims, and have the determination to work towards these goals. Being decisive they have little patience, and will prefer to make a rapid decision, even if that involves a degree of risk. They are Leaders and their preference for independence and forthright attitude means they will tend to work towards leadership roles. Influential people are conspicuously confident in the company of others, and find it easy to form friendly relationships. They have a positive attitude towards people and the confidence to demonstrate it. They are sociable with strong influence and go out of their way to build warm and positive relations. Being outgoing they tend to say what’s on their

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In recruitment many never consider their behaviour. In recruitment we say we usually recruit for skills but fire for attitude

mind in an open way. They are so informal, prefering to communicate on a personal and relaxed level rather than be bound by formality. So enthusiastic that when engaged by an idea or topic, the naturally positive attitude of an influential person is often highly motivating for those around them. On the other hand Steady people are patient, they tend to wait for events to unfold and respond as needed, rather than take direct action of their own. Determined, they tend to focus intently on tasks and can be remarkably resolute in concentrating on a project. Once embarked on a course of action, they will focus on their task and work persistently towards its conclusion. Steady people also has a social side, and are open to building positive relations with other people. Very open and considerate, they tend to think about the consequences of their actions, especially on those around them. Finally the compliant personality are very rule-orientated and like to work within an established and well-planned structure, rather than relying on their own resources. They are practical and detailed and well organised. Always wanting to feel that they understand the details of their situation and how they fit into it. Precise, they are concerned with getting things right, and will take time to ensure their work is accurate. They tend to avoid risks, preferring to be cautious in all they do. They tend to be rather reserved in communication, using diplomacy and tact and focusing on matters of fact. No one profile is the best. Each organisation needs all profiles to function. Next time we will see how to combine the organogram, the job descriptions and the personality profile analysis? Balogun is the founder of Box & Cedar Ltd a boutique Recruitment and HR Consulting firm Www.boxandcedar.com

Power, business and generational shift

EIZU UWAOMA

cientifically, a generation is an average of 25.5 years. And depending on how you choose to calculate it, we’ve headed to the 4th in the last 100 years. You know 25 years ago, Dangote would have looked at Abiola and aspired to be like him. Oyedepo would have looked up to Idahosa in the same light that Jeff Bezos would have looked at Bill Gates too. When generations shifts, economic and power tables are shook and new leaders emerge. According to the Pareto’s 80:20 Principle, 80 percent of the wealth and power of any generation will always be owned by less than 20 percent of that generation. The rest 80 percent will work for and be controlled by the minority 20 percent. The good news is, the people and trend are reshuffled every 25.5 years. This is due to technology and business model shift as. I also believe that it’s how the universe resets

the distribution of wealth and resources to drive interdependence and balance. It is natural. Now than ever, Nigeria seeks a new generation of business executives and leaders to trap the new model. So every 25.5 years business models, societal and political needs in terms of technological advancement changes; this way new opportunities emerge for new guys to take advantage of. In a Century, there are about 4 to 5 almost overlapping generations. Let’ take a look at the last 5 from the newest to the oldest in the last 100years: 1.Gen Z, iGen, or Centennials: Born 1996 and later. 2. Millennials or Gen Y: Born 1977 to 1995. 3. Generation X: Born 1965 to 1976 ( They are the ones still in political power in Nigeria though a fast dying age grade) 4. Baby Boomers: Born 1946 to 1964 (born after the 2nd World War, back then were highly populated hence the name) 5. Traditionalists or Silent Generation: Born 1945 and before. The three key trends that shape and differentiates generations are parenting, technology, and economics. Millennials refers to members of the generation born between 1975 to 1996 (I’d like to call them The MTV Generation). Just to better have a graphical image, let’s say that they are those who watched Michael Jackson do the moon

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walk on TV while MJ was still alive. They birth Hip Hop. To them we owe a lot swag. They were super cool! We also have the centennials or called the I-Generations or Generation Z. These centennials are the digital natives. They are those born after 1996. They really don’t have to use most technologies or gadgets with a manual. Rocket science isn’t that hard, it’s not rocket science to them for it has been automated. They rarely visit FAQ page of sites. They are very intuitive. It feels as if they had programming implanted during birth. They are super smart and very fast paced. According to psychology, the three key trends that shape and differentiates generations are parenting, technology, and economics. For example, many Baby Boomers have the parenting philosophy, “We want it to be easier for our kids than it was for us.” This philosophy, in turn, helped create and reinforce Millennials’ sense of entitlement, which is now a hotly debated topic. How these generation kinetics does affects business models, the nation and their businesses and our role in leading the next 25.5years? This current generation mainly of centennials and millennials are the ones that took a deep dive into the internet. They literally live there. The effect has become the disruption of mainstream distribution and marketing. Anyone with good content and following can create their own platform and community.

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Anyone can propagate and drive in an ideology too. This is made easier with social media. Data and information has been democratized. But also on the rise is the information immunity syndrome. Now the information overload is creating excessive advertising, attempts on mind control, consumerism driven by capitalism, corporate fake news, and generic mass education. Back to the boardroom, unknown to a lot of people, big budget for campaigns, and ads are failing. Content marketing, online influencers and contagiousness is replacing mainstream marketing. We are seeing more of smart algorithm driven by Artificial Intelligence. We have to build more intelligent houses through smart homes, and even more intelligent businesses. Geo tagging using Meta tags linked to your location to track people to deliver solutions, predict actions and drive decisions has become mainstream, how well are you applying them? These are changing times. Currently, there is an app that can use your facial expressions when recording to know if you are lying. Imagine a political debate or job interview where it’s being used. That’s data in motion.

Note: The rest of this article continues in the online edition of Business Day @https:// businessday.ng Uwaoma is a start-up, corporate restructuring and strategy consultant. He writes via contacteizu@gmail.com

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Friday 19 April 2019

BUSINESS DAY

Editorial Publisher/CEO

Frank Aigbogun editor Patrick Atuanya DEPUTY EDITORS John Osadolor, Abuja Bill Okonedo NEWS EDITOR Chuks Oluigbo EXECUTIVE DIRECTOR, OPERATIONS Fabian Akagha EXECUTIVE DIRECTOR, STRATEGY, INNOVATION & PARTNERSHIPS Oghenevwoke Ighure GENERAL MANAGER, ADVERT Adeola Ajewole ADVERT MANAGER Ijeoma Ude FINANCE MANAGER Emeka Ifeanyi MANAGER, CONFERENCES & EVENTS Obiora Onyeaso BUSINESS DEVELOPMENT MANAGER (South East, South South) Patrick Ijegbai CIRCULATION MANAGER John Okpaire DIGITAL SALES MANAGER Linda Ochugbua ASSIST. SUBSCRIPTIONS MANAGER Florence Kadiri

Apapa ports and economic carnage

lthough the access roads to Apapa and Tin Can ports were originally projected to give access to 1,500 trucks, now about 5,000 trucks seek access to the ports every day, according to reports by the Lagos Chamber of Commerce and Industry (LCCI). The report says Nigeria loses N600 billion in customs revenue, $10 billion (N3.6trn) in non-oil export sector and N2.5 trillion in corporate earnings across various sectors on annual basis due to the poor state of Nigerian ports. The Nigerian ports are also being listed as one of the most inefficient and expensive ports in the world by global reports. One of such reports is the moverdb.com 2018 Overseas Cargo and Freight Costs template that shows that freight costs from the United States (Los Angeles & New York) to different port destinations of the world. The rates shows that

the Apapa port from New York is the most expensive destination among the countries included in the template. For instance, it costs about $4, 982 to ship a 20 feet container from New York to Apapa, which is about twice the amount to ship a container of the same size to Cape Town, South Africa (at $2, 542). This is despite the fact that New York to Lagos is just 6,516 nautical miles and takes approximately 27 days for a ship to sail the distance while New York to Cape Town is 9,097 nautical miles and takes approximately 38 days to sail. Also, the average turnaround time for ships at Apapa is estimated in excess of 30 days as against just two days for the most efficient ports globally. The LCCI report also reveals that 25 percent of cashew nuts exported from Lagos to Vietnam in 2017 either went bad or were downgraded because of delays at Lagos ports. From exporting up to 1,700 tons per day, an exporter now exports between 100 to 250 tons.

On the import circle, only 10 percent of cargoes are cleared within the set timeline of 48 hours while the majority of cargoes take between five to 20 days to clear. A clear sign of how inefficient and expensive the ports are, the number of government agencies at the ports has risen to twelve instead of eight, with each demanding inspection and associated fees. Sadly the solution to the problem of inefficiency and congestion in the ports is well known – the complete revitalisation of the sea, air and land ports in eastern Nigeria. These were viable ports in preindependence Nigeria. However, post-independence Nigeria governments and subsequently government agencies discouraged the use of the eastern ports and concentrated virtually all shipments into and outside Nigeria at the Apapa port forcing all Nigerian importers and exporters into the Apapa port. When pressures began to build

up at the Apapa ports, the government later developed the Tin Can Island port, still within the Apapa axis to cope with the pressure on Apapa. Of course, the pressures increased and the Lagos ports could no longer cope. To make matters worse, the eastern ports, due to abandonment, had silted and become shallow and unable to admit big ship increasing the dependency on the Apapa ports. Therefore, any solution to the ports that does not include the complete revitalisation and repositioning of the eastern ports will amount to shadow boxing. Thankfully, the Lagos state government has also made this point to the federal government and Nigerian Ports Authority (NPA). Once that is done, the NPA and the federal government can now concentrate on efforts to streamline ports operations to drastically cut down turnaround time to position Nigeria as a global business destination.

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Friday 19 April 2019

BUSINESS DAY

CITYfile After years in darkness, Delta communities connected to national grid IDRIS UMAR MOMOH, Benin

L-R: Tiamiyu Adesina, general manager, Lagos State Emergency Management Agency (LASEMA); Daniel Ikpefunran, victim of demolished building; Kenneth Adejumoh, corporate communications manager, Nosak Group, and Adekunle Ajiba, victim of demolished building, during the donation of foodstuff and relief materials to victims of Ita-faaji collapsed building and demolished distressed buildings in Lagos recently.

Kano destroys N5m expired products ... as suspects arrested, convicted

ano State government has destroyed assorted expired products worth over N5 million confiscated from traders. Senior special assistant, Sanitation Vanguards, Jafaru Ahmed-Gwarzo supervised the burning of the expired items conducted along Gezawa road. He said that the items comprised soft drinks, cos-

metics, beverages and other essential commodities confiscated from Singer market and some super markets in Kano. Section 14 of the Kano State Public Health Edict mandates sanitary health workers to seize expired items and report the suspects for prosecution. Some of the suspects arrested in connection with seizures have been convicted and serving jail terms in various prisons in the state.

“We destroyed the expired items on the directive of the court that convicted the suspects, “Ahmed-Gwarzo said. He urged members of the public to always look for the expiry date of any product they want to buy to avoid consuming fake and unwholesome products. The official said the government would not allow unpatriotic traders to continue selling expired goods to unsuspecting individuals,

assuring that necessary steps are being taken to check the ugly trend. “The state government found it necessary to take measures to check the illegal activities of some of the traders to safeguard the health of the people,” he said. Ahmed-Gwarzo urged people of the state to report such unpatriotic traders to appropriate law enforcement agency for necessary action against them.

Police nab notorious kidnapper in A’Ibom ANIEFIOK UDONQUAK, Uyo kwa Ibom command of the Nigeria Police Force (NPF) has arrested one Edidiong Bill, (male) believed to be the most wanted kidnap kingpin in the state. The suspect reportedly confessed to being the leader of Vikings, a secret cult confraternity in Akwa Ibom. Zaki Ahmed, the Commissioner of Police in Akwa Ibom, who paraded the suspect and other alleged criminals, in Uyo, the state capital, said Bill had been involved in several heinous crimes in the state, including kidnapping and robberies before he was nabbed on April 4. “Based on a credible intelligence, operatives of anti kidnapping squad, on April 4, 2019 at about 01:00am, stormed a kidnapping hide-

out at Afaha Efiat village in Etinan local government area, and arrested the most wanted kidnap kingpin, Edidiong Uduak Bill, alias Barrister, aged 28. “During investigation, the suspect also confessed that sometime in 2017, he masterminded the kidnap of a lady at Akpan Essien Street, Uyo and kept her in an uncompleted building at Obio Etoi in Uyo and collected a ransom of N4.5 million before she regained her freedom. “The suspect has been on the run for long and only resurfaced to carry out another evil act before he was arrested, Ahmed said. Speaking to journalists, Bill blamed his father for not giving him proper upbringing, saying it was the second time he was involved in kidnapping having been www.businessday.ng

imprisoned in 2014. “I am Edidiong Uduak Bill, I am 28-year-old from Etinan local government area. I went to prison in 2014 but was freed. “This is the second time I am arrested for the same kidnapping case, in which I kidnapped three people. I collected N4.5 million as ransom from them but lost N3.8 million to my father. “I blame my father for my actions because I was not brought up by my father, but when I went to live with him after I had the money, he stole part of the money from me and ran away with it. It is now four years since he stole the money,” Bill said. The CP said that the command also arrested one David Asuquo (male) and Gabriel Udofia (male) for robbing one Uwem Chemist (male) of N500, 000 at

gunpoint on April 15 in Ikot Ambang in Ibiono Ibom. He said that during investigation, the suspects allegedly confessed to the crime and mentioned other gang members who were now at large. According to him, the command on April 4 arrested a notorious cultist; John Effiong (m) aged 29, who also specialised in armed robbery at Etim Ekpo. “On April 4, Operation Purge in Etim Ekpo local government area, arrested a notorious cultist/armed robbery suspect, one John Emmanuel Effiong (m) aged 29. “During investigation, suspect confessed his involvement in five armed robbery operations before his arrest, also admitted that he is member of Iceland confraternity cult group,” he said.

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fter several years in darkness, two communities in Delta State, Illah and Idumuju-Unor in Oshimili North and Aniocha North local government areas respectively, can look to regular power supply from the Benin Distribution Company (BEDC). The communities were cut off from supply by the defunct Power Holdings Company of Nigeria (PHCN). Adekunle Tayo, head of corporate affairs, BEDC, told newsmen in Benin, the Edo State capital, that the long outage was occasioned by the defunct PHCN’s dilapidated electrical infrastructure. According to Tayo, the restoration of power to the communities is the climax of the community relations initiative aimed at connecting many communities to national grid across BEDC’s franchise states. “The commissioning in Illah took place at the

Ogbelani palace of the paramount ruler of Illah community with the palace chiefs, representatives of the various quarters and BEDC officials in attendance,” he said. Recall that BEDC had on December 25, 2018, restored power supply to the ‘Eka Meta” communities of Ekiti. The communities include Ikogosi-Ekiti, host of the Ikogosi Warm Spring Resort, Ipole-Iloro, base of Ariata Waterfalls and Erinijiyan Ekiti- Erinijiyan, Ipoleloro, Ikogosi. The inauguration of five distribution sub-stations and restoration of power to Idumuju-Unor community was graced by the traditional ruler of the community, Obi Charles Chukwuwuike Anyasi (111) and his cabinet members and residents. The Obi of IdumujuUnor thanked BEDC for rehabilitating the lines and restoration of power to the community. He called on the residents to reciprocate the gesture by paying their bills promptly.

Easter: FRSC deploy 200 mobile courts, 35,000 officials

he Federal Road Safety Corps (FRSC) has deployed 35,000 personnel and put in place 200 mobile courts nationwide, as part of activities to curb crashes during the Easter celebrations. Bisi Kazeem, the corps public education officer, said in a statement on Wednesday that the FRSC had approved the massive deployment of personnel, both regular and special marshals, to address wrong road usage by motorists. According to him, the corps will embark on proactive patrol and rescue operations from Thursday, April 18, to Tuesday, April 23, covering 52 Corridors across the federation. “The patrol will ensure free flow of traffic on all major highways across the country. “Total number of regular and special marshals deployed is 35,000 while over 200 mobile courts are also put in place,” Kazeem said. He said that there was increasing wave of movement of vehicles and passengers travelling during festive periods in the country. @Businessdayng

According to him, the corps marshal, Boboye Oyeyemi, has directed that there should be immediate commencement of aggressive public enlightenment campaigns across motor parks and terminals. He said that it would help in sensitising the motoring public on the basic safe road use practices expected from drivers in the season. Kazeem said that Oyeyemi had also warned the general public that the Corps would not hesitate to bring any erring offender to book. “The Corps will focus its Easter Special Patrol on all offences, particularly overloading violations, driver’s licence violation and lane indiscipline. “Others are driving with expired or worn out tyres, without a spare tyre and failure to install Speed Limit Device,” he said. According to him, mobile court operations will hold across the country. “Motorists need to imbibe safe road use attributes, particularly, avoid excessive speed, overloading, driving under influence of drugs or alcohol,” he said.

Friday 19 April 2019

BUSINESS DAY

MoneyInsight The making of New Access Bank Brand FRANK ELEANYA

he Nigerian financial services industry is a stellar example of how Nigerians competitive nature can bear positive and negative consequences. Focused on growth and financial bottom lines, the second generation of Nigerian banks engaged in reckless business practices that eventually led to the forced closure of a number of banks and the intervention of the Central Bank of Nigeria (CBN). A team led by Aigboje AigImoukhuede and Herbert Wigwe impressed by the growth Access Bank Nigeria had achieved by 2002, took on the management of the Bank. Their new mandate was driven by the idea that competition and consumerism had brought the bank moderate success, but it was time to diversify the Bank’s portfolio and truly make it a continental player. For Wigwe and Aig-Imoukhuede, the motivation was simple. Access Bank had to evolve beyond banking if it was going to find success within the country and across the globe. The Bank had spent the first 14 years since its establishment building the framework it needed to compete within the industry, but it was time to take on the continent. That meant understanding who that customer was; African businesses looking for financial gateway into world markets, families looking for a bank that was interested in their long term financial well-being, individuals looking for a financial partner that was just as concerned with ecological responsibility as they were financial bottom lines. Just three years after the new manage-

ment took the reins at the Bank, it closed its first mergers, acquiring Marina Bank and Capital Bank (formerly known as Credit Lyonnais Nigeria). This merger expanded the bank’s reach and providing it necessary footing in the credit subindustry. In 2012, the bank would grow again, this time through a celebrated merger with the former Intercontinental Bank which had created an impressive network of customers in Northern Nigeria. Inspired by its new reach, Access Bank would announce a 5-year transformation plan the very next year, outlining its projections for the next half decade and shifting its focus to cashless banking, sustainability and technology. The Bank’s merger with Diamond bank in 2018 was a confirmation of its resolve to reach its goals, even as the country experienced a debilitating economic recession caused by a drop in oil prices. By working towards sustainability, Access Bank succeeded in transforming itself into the country’s first truly sustain-

able bank. Diamond Bank was also contemplating these growing pains as it built its business in Nigeria. Faced with the challenge of competing against prestige banks with several decades of business behind them and established pedigrees, Diamond chose to innovate rather than compete. The future seemed poised to embrace the cosmopolitan nature of the internet and the unique opportunities it presented for retail, especially for financial institutions. If the Bank could relinquish control of its processes and offer the customer some level of autonomy over their finances, they could teach them to see their relationship with their bank as an extension of their values and lifestyle. By positioning itself as a retail and payments partner for millions of Nigerian businesses and taking on the challenge of convincing a sceptical client base to embrace the ease and convenience of internet banking, Diamond Bank would grow to become

Visa, Branch collaborate to expand financial access across Sub-Saharan Africa CALEB OJEWALE

isa, a global payments technology company and Branch, one of the most downloaded finance apps in Africa, have announced a partnership that will see virtual Visa prepaid debit cards offered to over 2 million consumers in Sub-Saharan Africa. This partnership in a statement sent to BusinessDay, represents Visa’s broader strategy to collaborate with and invest in rapidly growing FinTech companies that are reaching consumers and merchants not previously addressed by traditional financial services. As a part of the agreement, Branch will also implement Visa payment services into its platform, to give consumers the ability to make payments using a card or a mobile phone. The move is part of Visa’s strategy to leverage mobile to

digitize payments and is expected to pave the way for cash-free payments. Branch plans to offer preferential loan terms to Visa merchants who accept Visa on mobile QR codes in Kenya. Branch will extend this service to additional geographies in Sub-Saharan Africa, specifically Tanzania and Nigeria. The loans will provide merchants with funds to grow their business through supplemental stock, infrastructure investment, and other key operational needs. Loans will be disbursed to Visa virtual credentials attached to merchants’ phones. “With this partnership we seek to offer value beyond just transactions. We would like to help merchants grow their business and drive financial inclusion among the small merchant segments that are often unable to access quick www.businessday.ng

loans,” said Otto Williams, Visa’s vice president, Strategic Partnerships, Fintech and Ventures. Mathew Flannery, Branch CEO said, “At Branch, we think our innovative mobile financial app will be able to provide consumers and merchants access to financial services thereby creating a larger and more robust open loop payments ecosystem for all participants. It only makes sense to be working together with Visa to bring worldclass financial services to merchants here in Kenya and beyond.” Branch, which says it has helped unlock financial access for thousands of people around Africa, is currently among the most popular loan application channels. With smartphone growth usage at an all-time high, Branch has taken a unique opportunity to build customer-first financial products for people worldwide.

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the continent’s premier retail bank, beloved among Nigeria’s millennial youth looking for a vibrant partner. In hindsight, the niches both banks had dominated as a corporate titan and a retail powerhouse were truly complementary and would have eventually led to a merger, but it was positively surprising to see a merger of this nature happen so early for both banks. With a combined 29 million customers, and a reach that spans the continent, it’s hard to argue with the giant that has emerged from this merger. Marrying organizations of this magnitude require finesse and both banks have retreated into privacy and carefully worked out their identity as a new Bank. To achieve this, motivations had to be merged and the Bank’s expectations re-evaluated to reflect the new scale of the job at hand. And the best way to telegraph this new identity was through the bank’s new logo, the cresting moment in a union that has taken nearly a year of quiet negotiations and tireless work to solemnify. The new Access Bank is built on three ideals; broader societal purpose, superior service, and financial strength. These three ideals, implemented to the best of the Bank’s efficiency is the way the Bank will gain its place as the ‘World’s Most Respected Bank’. This is reflected in the new logo, which takes Diamond Bank’s distinctive multihued diamond and Access Bank’s inimitable saffron chevron and merges them, retaining Access Bank’s typeface and font. The new logo’s chevrons point in all 4 directions, referencing the Bank’s new global identity and client base. It also acknowledges the storied history of both banks while asserting its future, paying

homage to the access they provide for their loyal customers and asserting that those customers will be centred in all the Bank’s actions. Ethical banking remains at the heart of the new bank. A plethora of financial facilities have been made available to marginalized communities like women’s rights movements and business incubators to interrogate and better the business ideas of young tech entrepreneurs looking to enter the financial service markets. It also reflects in the bank’s decision to retain its staff from both banks and cushion the load from the merger, ensuring that all its relationships between customers and financial officers were maintained and employees are able to transition smoothly into the next phase of the bank’s growth. It also intends to continue its push to limit and eradicate where possible, the dependence on fossil fuels and other practices harmful to the environment. The new bank will also honour its commitments to the arts and entertainment and will continue to champion technology as a viable alternative to many of the country’s persistent problems and a trusted pipeline for young people looking to escape poverty through personal achievement. Access Bank’s new merger is a victory for everyone in the financial services market, and by extension, truly every Nigerian. It is an indigenous bank which has focused its efforts on serving local and diasporic African clients, respected for its innovation and enthusiasm to push for new, sustainable ideas. Its growth over the decades and its merger with Diamond Bank has forced the world to seek beyond casual scrutiny and reintroduced Nigeria as a true contender for progressive, sustainable banking.

Olam extends free health screening to cocoa farmers

lam Nigeria’s Cocoa Sustainability team, in collaboration with Action Health Incorporated says no fewer than 250 women Cocoa farmers in Ogun state recently benefited from free health screening as part of the company’s efforts to give back to its constituents. Olam in a statement, noted this was done in a rural area of Ijebu-East Local Government Area in Ogun state, where several activities were lined up to cater to the wellbeing of the community. Apart from the health checks, there was also an Inter -Schools Debate on “Education for the Girl Child is a Waste of Valuable Resources”, with teams arguing for and against the motion. For Jennifer Abuah, head, Cocoa Sustainability at Olam Nigeria, the activities are in line with Olam’s strategic purpose of Re-imagining Global Agriculture and Food Systems. “We are choosing to grow responsibly within the geographies we operate in so that we can directly influence the economic life of farmers – women and men – farming communities and farming systems,” Abuah said. Omisanya Fatai, representing @Businessdayng

the Zonal Education Officer, IjebuEast Local Government Area, said the programme was very beneficial for the women and farmer enclaves living in the rural areas, noting that it was imperative for women to be oriented in order to know the value of good living. “This programme is not only about the screening of breast cancer and other routine check-ups, but also to let them know how to maintain good personal hygiene, as it can help them from falling sick and prevent the spread of infectious diseases,” Fatai said. Funso Bukoye, a representative of Action Health noted that the NGO was delighted to have collaborated with Olam Nigeria to bring much needed health care services to the cocoa growing communities of Ore Agbe Ijebu farmers group.

Friday 19 April 2019

BUSINESS DAY

COMPANIES & MARKETS

COMPANY NEWS ANALYSIS INSIGHT

GTBank records N49b profit despite lower net interest income Pg. 16

BANKING

Access Bank gains most in over 3 years as profit surges 86% DAVID IBIDAPO & OLUFIKAYO OWOEYE

ccess Bank, a tier one commercial bank fresh off a merger with Diamond bank, saw its share price jump by the most in over three years after the lender released consolidated financial results that showed a 86 percent surge in profit. This is the first result to be published by the new entity to emerge from the merger with Diamond bank. Shares of Access bank rose 9.92 percent to its highest level in the last 17 trading days in 2019 to close at N6.65 on Wednesday from N6.05 the previous trading day. Wednesday’s performance increased shareholders’ wealth by N21.33 billion as the bank’s market value closed at N236.376 billion. “Investors perceived their earnings to be strong and inpressive, hence taking positions,” Gbolahan Ologunro, equity research analyst, CSL stockbrokers. “I believe the bank should have started in its conference call that the income statement is not a combined report since entries doesn’t reflect a combined financial,” Ologunro added. “A combined result would

have reflected a dilution in earnings but we didn’t see that, hence I anticipate a reversal in Access stock performance tomorrow.” Access bank kick started the year on a solid note after

recording a surge by 86 percent in its profit after tax (PAT) for the period ended Q1 2019, being the first deposit money bank on the exchange to release its first quarter report for the year 2019. The financial report of the

bank is said to reflect the result of the combined entity after merger with Diamond Bank plc which was concluded in the first quarter of the year 2019. As reported by the bank on Nigeria stock exchange (NSE) market, PAT jumped to N41.14 billion in Q1 2019 against N22.11 billion recorded in the previous corresponding year. Our analysis showed that the bank’s PAT in Q1 2019 is about 43 percent of total net income realised in full year 2018 of N94 billion, depicting the resultant effect of a consolidation with diamond bank. Other key indices in the income statement showed an increased by 16 percent in interest income to N110.77 billion from N95.59 billion in corresponding period in 2018. Component of interest income during the periods reflected the combination of income from financial assets not at and at fair value through profit or loss (FVTPL). Also, the bank reported a non-performing loans (NPL) ratio of 10 percent for Q1 2019 compared to 4.7 percent as at Q1 2018 due to acquired NPLs from the merger as implied by the bank. Capital adequacy ratio (Bank) also stood at of 17.2 percent as reported by the bank. “We believe this is inclusive of the debt raise of US$162.5 million,” analysts at CSL opined.

“We have a buy rating on Access Bank with a target price of N10.32/s,” analyst further stated in a report released on Tuesday. Also, fee and commission income during the period declined marginally by about 2 percent, despite consolidation with Diamond Bank. In a conference call with Access Bank on Wednesday, the management explained that the drop in fee income was as a result of reduced economic activity as a result of election activities, free w i t h d raw a l o n D i a m o n d bank ATMs, reduction in liquidity related fees also cautious and sceptical about lending, cut down on overall loan growth. Speaking on achieving apex bank’s benchmark on non-performing loan ratio (NPL) of 5 percent, Access bank remained optimistic. “Bringing the NPL to 5 percent is doable, by getting additional rights offs, take off provision on some assets for example on Geometric Power, it will bring them down significantly. This will be brought down within the next two years,” management assured. Our analysis shows that equity investments in Geometric power limited of the combined entity accounts for 70 percent of total investment value of N10.7 billion.

CONSUMER GOODS

FMCGs suffer shrinking revenues as consumer spending remains weak IFEANYI JOHN

he declining revenue growth in the FMCG industry buttresses the low demand for consumables in the country as industry participants failed to grow revenues faster than inflation. Five of eight FMCG companies listed on Nigeria Stock Exchange released financial statements for the year 2018 and analysts observed that the industry revenue shrunk by an average of 4 percent while costs soared due to double digit inflation in the country. Cadbury, Dangote Flour, Dangote Sugar, Nestle and Nascon performed better in the year 2017 compared to the 2018 financial calendar as the combined revenues of these five companies declined from N600.364 million to N590.73 million at the end of 2018 accounting period. Costs grew by 7.09 percent if the 27.86 percent fall in Dangote Sugar costs of sales which tracked the corresponding

fall in revenues. Total combine profits dropped by 26.74 percent from 2017 figures of N94.28 million to N69.07 million. Among the FCMG companies, only Nestle managed to grow revenues faster than costs of production as other producers either failed to improve revenues or grew costs faster than revenues. Nestle posted the highest growth in revenues of 9.06 percent from N244.15 billion in 2017 to N266.27 billion in 2018. This growth is the lowest revenue growth in the last five years, as the industry giant has averaged a top-line growth of 28.79 percent in that period. Nestle Plc, the largest firm in FMCG by size, posted a profit after tax of N43.01 billion compared to N33.72 billion prior year, which represents a 27.53 percent improvement in FY profits. The firm net profit margin improved by 200 basis points from 13.81 percent in 2017 to 16.15 percent in 2018 FY. Cadbury Nigeria grew revenues

the second fastest in 2018 as sales improved by 8.75 percent from N33.07 billion to N35.97 billion. This improvement trickled down all the way to profit margins as the net profit margin improved from a less than one percent to 2.29 percent at the end of 2018 financial year. Dangote Industries Limited is the holds three firms in the FCMG industry; Dangote sugar refinery Plc, Dangote Flour Mill Plc and NASCON Allied Plc. Dangote Sugar Refinery Plc reported a decline in earnings of 44.76 percent year on year from N39.78 million to N21.97 million, losing N17.81 billion of it preceding year profit. Revenues of the sugar producing giant declined by 26.44 percent from N204.42 billion in 2017 to N150.37 billion at the close of the accounting period in 2018. The firms’ cost of production matched the reduction in revenues as costs fell by 27.86 percent from N153.43 billion in 2017 to N110.68 billion in 2018. This took a corresponding

bite off its gross profit but gross profitability ratio maintained previous levels as it grew by 100 basis points. A 6.98 percent growth in operating expenses hurt the profitability of the firm as net profit margin declined to 14.61 percent from 2017 levels of 19.46. ROA shrunk to 12.55 percent from 20.39 percent and ROE from 42.90 percent in 2017 to 22.20 percent. Dangote Flour Mills Plc recorded losses as against its prior year’s net income flow of N15.32 billion compared to a N1.15 billion loss in 2018 FY, this loss was on the back of an excessive fall in operating profit of the firm by 97.87 percent from N18.72 billion to N398 million, as revenue decreased and cost of sales grew by 7.40 percent from N95.08 billion to N102.09 billion. NASCON reported a decrease in profit of 17.28 percent from N5.34 billion in 2017 to N4.42 billion in 2018, a N923.38 million reduction in net income further

buttressed the need for better economic policies to tackle production bottlenecks and grow the economy at a faster pace. year on year. Flour mills Plc and Honeywell Flour Plc haven’t released their 2018 FY results but their Q3 report gives an insight to what their 2018 financial year might convey. Flour mill Plc reported a PAT of N13.24 billion for the third quarter of 2017 and struggled to report up to 50 percent of Q3 2017 performance as they delivered only N7.89 billion was reported in Q3 2018. Honeywell Plc stated a decline of 94.86 percent in income for Q3 2018, as PAT declined from N2.78 billion in Q3 2017 to only N143 million in Q3 2018. Northern Nigeria Flour Mills has recorded losses for four consecutive financial years, its losses grew by 69.44 percent from 2014 to the annualized 2018 FY performance and as we await results from the company the economic outlook remains bleak for FMCG

Editor: LOLADE AKINMURELE (lolade.akinmurele@businessdayonline.com) Graphics: David Ogar

Friday 19 April 2019

BUSINESS DAY

COMPANIES&MARKETS BANKING

GTBank records N49b profit despite lower net interest income OLUWASEGUN OLAKOYENIKAN

he decline in net interest income witnessed by Nigeria’s largest bank by market capitalisation, Guaranty Trust Bank Plc, in 2018 has extended to the first three months of 2019, but that was not enough to weigh on the lender’s bottom line having grown profit by 10.4 percent in the period. The impact of Guaranty Trust Bank’s total net income, which fell 7.8 percent in the first quarter (Q1) of 2019 to N74.48 billion compared to N80.77 billion achieved in the same period a year earlier, triggered a 2.5 percent drop in net interest income to N58.22 billion from N59.69 billion. This is despite shaving interest expense by 22.85 percent to N16.26 billion from N21.08

billion. Guaranty Trust Bank (GTBank) grew after-tax profit to N49.30 billion between January and March 2019 compared to N44.67 billion gained in the same period in 2018. Thanks to lower loan impairment charges coupled with increased income on net fee and commission, gains on trading investments, mark-up exchange and recoveries that made that happen. Loan impairment charges of the tier-one lender plunged 60.3 percent to N651 million in Q1 2019 as against N1.64 billion in the same period in 2018. That was complemented by a 21.9 percent increase in the bank’s net fee and commission income to N18.01 billion from N14.49 billion. GTBank gained N2.22 billion on its trading investments and mark to market value in the review quarter after los-

ing N17.31 million in the first three months of 2018. Mark-up exchange income rose to N895 million from N368.9 million, while it realised N6.12 billion from recoveries. That drove the pre-tax profit of the country’s most capitalised lender to N56.98 billion, this represents about 8.3 percent increase from N52.62 billion recorded in the review period in 2018. Also, its income tax expense dropped 3.42 percent to N7.68 billion from N7.96 billion. Meanwhile, shares of GTBank shed 2.39 percent to N34.75 on the Nigerian Stock Exchange (NSE) on Wednesday following the stock’s four-session winning streak. That brings GTBank’s return since the beginning of the year to 0.87 percent, outperforming the market at -4.64 percent and the NSE banking index at -3.9 percent.

L-R: Love Idoko, founder, Activate Success International Foundation (ASIF); Samson Itodo, executive director, YIAGA Africa, and Liola Kienka, representative of Nestle, at the Nestle Sponsored Youth Entrepreneurship and Empowerment programme (YEEP) put together by ASIF.

MORTGAGE

NAHCO profit falls to 13-year low as income tax expense hit earnings OLUWASEGUN OLAKOYENIKAN

he Nigerian Aviation Handling Company Plc (nahco aviance), a leading aviation ground handling service provider in the country, saw its full-year 2018 profit hit its lowest level thirteen (13) years despite growing sales by almost a quarter. The after-tax profit of the aviation services firm fell by 75 percent in fullyear 2018 to N196.79 million from N775.77 million recorded in the previous year, making it the company’s worst financial performance since 2005 when the Federal Government of Nigeria sold its 60 percent stakes in the firm through privatisation. NAHCO’s 2018 financial performance was largely driven by a N306 million it paid on income tax, which robbed off its N503 million pre-tax profit, as against N175.76 million income tax credit it enjoyed a year earlier. A look at the aviation ground handling company’s top line reveals that sales rose by 24 percent N9.83 billion in 2018 from N7.93 billion recorded in

the previous year, but a 19 percent increase operational costs to N6.66 billion impeded its gross profit growth, causing it to record N3.17 billion compared to N2.31 billion. In spite of this, the company’s gross margin improved from 29 percent in 2017 to 32 percent in 2018. Operating profit slumped 20 percent to N502 million from N631 million achieved in the previous year. The significant drop in NAHCO profit pulled its net income margin down to 2 percent in the year as against 9.78 percent recorded in 2017, implying the company could only retain N2 as profit out of every N100 it generated from sales in the year. Cons e quently, the earnings per share of the aviation firm, a profitability metric that shows the portion of a company’s profit allocated to each unit of its stock, declined to N12 from N48. Total assets rose marginally by a percentage point to N12.35 billion in the year compared to N12.26 billion recorded a year earlier. Also, total liabilities soared 10 percent

to N6.02 billion from N5.49 billion, causing shareholders’ fund to take haircut by 7 percent to N6.32 billion from N6.77 billion. A further analysis into the company’s financials reveals the firm is not using its assets and also shareholders’ equity to generate enough return. Return on assets was down to 1.59 percent in 2018 as against 6.32 percent recorded in 2017, while return on equity plunged to 3.1 percent from 11.45 percent. Meanwhile, after the close of business on the Nigerian Stock Exchange on Wednesday, NAHCO’s shares remained unchanged at N3.35, making its year-to-date loss to settle at 8.22 percent. E a r l i e r t h i s y e a r, Godsmart Nigeria Limited, the single majority shareholder of NAHCO expanded its shareholding in the aviation services firm to 26.95 percent. This followed a transfer of all 97.45 million ordinary shares of Lufthansa Commercial Holding GmbH, which represents 6 percent shareholding in NAHCO, to Godsmart Nigeria Limited.

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L-R: Marketing Director, Reckitt Benckiser (RB) West Africa, Aliza Leferink; Dettol Brand Ambassador, Funke AkindeleBello; General Manager, RB West Africa, Dayanand Sriram; during the Clean Naija Initiative official launch and Dettol brand ambassador

MORTGAGE

Abbey Mortgage Bank’s losses hits 3-year high on interest income dip, credit loss ISRAEL ODUBOLA

he woes of Abbey Mortgage Bank compounded in 2018 as the Lagosbased provider of housing products, ended last year in red, just like it did two years back, but at worsened state. The Bank recorded its biggest losses since 2016, driven by decline in interest income and provision for credit loss. The Bank’s interest income, which comprises interest on loans & advances, cash & short-term funds and financial investments, slumped by 8.7 percent to N1.15 billion in full year 2018, compared with N1.26 billion realized in the preceding year. This tangibly weighed on net interest income as the decline in interest income (-8.7%) outpaced the 1.02 percent drop recorded in interest expenses. Net interest income

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dip 13 percent to N664.9 million in 2018 compared with N764.9 million in the previous year, and total operating income fell marginally by 1.7 percent to N903.6 million in 2018. The Bank made N566.7 million provision for credit losses in the review period in line with International Financial Reporting Standard 9. Break-down of the charges on expected credit losses on financial instruments revealed that the Bank provisioned N72.8 million at stage 1 (where credit risk has not risen significantly since initial recognition); N18.7 million at stage 2 (where credit risk has increased significantly since initial recognition), and N476.7 million at stage 3(credit impairment). As a result, net operating income decelerated significantly to N336.84 million in full year 2018, masking a whopping 55.4 percent de@Businessdayng

cline over N751.3 million posted in the previous year, consequently leading to sharp depreciation in losses before and after taxation. Losses before taxation of the Lagos-based mortgage bank fell some N459 million in the review period to N636 million, and after-tax losses plunged more than 200 percent to N665 million. Earnings per share, which represents the profit (losses) allocated to each unit of common stock, worsened by N10.85 from N5.06 in 2017 to N15.85 in 2018. The Bank’s total assets lost 2.46 percent in value in the review period, total liabilities up 8 percent to N6.5 billion on the back of increased due to customers. Demand, savings and term deposits made by customers grew 51 percent, 18 percent and 3 percent respectively, and shareholders’ fund shed 12 percent to N5.4 billion.

Friday 19 April 2019

COMPANIES&MARKETS

BUSINESS DAY

Business Event

INDUSTRIAL GOODS

Lafarge reaffirms commitment to HSE practices ISRAEL ODUBOLA

n a reaffirmed stance for care and deliberate effort towards the wellbeing of stakeholders within its operations, Nigerian cement maker, Lafarge Africa Plc has reinstated commitment to ensure health and safety of stakeholders within its operations and to consistently abiding by the laws and regulations guiding its operations. This is in line with the objectives of Lafarge’s Sustainability Strategy 2030 and the United Nations Sustainable Development Goals. This commitment was part of the resolutions from experts at the 2019 Health, Safety and Environment (HSE) Summit organized by the National Industrial Safety Council of Nigeria (NISCN) in Lagos. The summit, which was the first of its kind, brought together safety and health experts, captains of industries and members of the public to discuss the theme “HSE in our DNA: The

Billionaire Lifestyle”. During the panel discussion, the Head, Health Safety and Environment of Lafarge Africa Plc, Folake Odegbami, stated that as part of its core values, the company has made significant investment to ensure a safe workplace, healthy lifestyle and environment for its employees and stakeholders. “We have quality systems in place to ensure a safe environment in all our plants and we also make significant investments in training. For instance, we have a Safety Training Center set up in one of our plants in Sagamu. “We also have a Drivers’ Training Institute in Calabar among others. Our Cement Professionals Training Programme also has health and safety elements included in the curriculum. The objective is to ensure that everybody within our space is safe and knows how to help others stay safe too.” Odegbami stated. Odegbami also added that focus on health and safety

is part of Lafarge’s corporate social responsibility activities. “We believe that investing in health and safety is very essential to the wellbeing of people within our ecosystem and we are focusing on that with the highest sense of priority. For example, we have invested in Community Health Centers for our host communities in Ewekoro and Sagamu Ogun State, as well as in Ashaka, Gombe State” she said. In his remarks, the Director General of Lagos Safety Commission, Honourable Hakeem Dickson advocated for safety consciousness across all sectors in Nigeria in the form of deliberate safety practices. According to Dickson, the benefits that come from safe and healthy practices cannot be over emphasized. For this reason, he encouraged all stakeholders to take deliberate steps towards adopting safe and healthy practices while driving organisational obligations towards operational safety and excellence.

L-R: Evon Idahosa, Founder and Executive Director of Pathfinders Justice Initiative; Tim Singleton, Director of Communications, Department for International Development (DFID) Nigeria; Yinka Omorogbe Attorney General & Justice Minister for Edo State; Dame Julie Okah-Donli, Director General, National Agency for the Prohibition of Trafficking in Persons (NAPTIP); John Primrose, Deputy Head of Office, Department for International Development (DFID), Nigeria; Abike Dabiri-Erewa, Senior Special Assistant to the President on Foreign Affairs and Diaspora, and Rufus Idris, Portfolio Manager, Market Development Programme in the Niger Delta, at the launch of the Not for sale campaign in Abuja.

REAL ESTATE

OPIC generates N1.3bn from sales of MTR gardens housing stocks RAZAQ AYINLA, ABEOKUTA

abajide Odusolu, Managing Director, Ogun State Property and Investment Corporation (OPIC) has declared that massive sales of housing stocks located within highbrow MTR Gardens at Isheri end of LagosIbadan expressway, among other returns, has fetched the State government N1.32 billion revenue in the first quarter (Q1) of 2019. BusinessDay reports that the MTR Gardens is an organic community located at Isheri, a 10- minute drive from the Alausa Secretariat, and 30 minutes away from Murtala Mohammed International Airport, both in Ikeja which provides over 600 apartments consisting of 460 units of premium 3-bedroom apartments with BQ and 120 units

of 2-bedroom apartments. MTR Gardens is one of the flagship housing estates apart from Maku residential and industrial estates tagged “New Makun City situated at Sagamu interchange end of Lagos-Ibadan expressway which is designed to bridge housing deficit for three Southwest states, namely, Ogun, Oyo and Lagos with a view to domesticating more workers working in those states mentioned in Ogun state as part of effort to shore up revenue through Pay-As-You-Earn tax (PAYE). Speaking at Q1 evaluation of 2019 budget by Ogun State House of Assembly on Wednesday, Odusolu, who was represented by Adeniyi Adenekan, Director of Finance at OPIC, gave the breakdown of revenue generated within three months of this year, to have included con-

tractor and deed registration fees, change of ownership fee, sales of building, rent on government assets and properties among others. He said, “The massive sales of housing units at MTR Gardens, Isheri brought the largest percentage of revenue made with the first three months of the year and we have made such a huge revenue from that housing project based on world standard structure and offerings embedded in the entire housing estate. “We have made MTR Gardens in such a way that central services within the estate offers a recreation facility with a neighbourhood store, swimming pool and multipurpose gym, dedicated power supply, paved road and walkways, packaged sewage facilities, potable water and security services.

L-R: Ido Verhangen, executive director, Access to Seeds Foundation; John Ehiguse, CEO, Media Craft Associates, and Timothee Pasqualini, data analyst, Access to Seeds Foundation, at the launch of the Access to Seeds Index 2019 Report for Western and Central Africa in Lagos. Pic by Pius Okeosisi

L-R: Amalia Sebakunzi, marketing director, Eat ‘N’ Go; Patrick McMichael, CEO, and Otto Orondaam, CEO/founder, Slum2School, at the unveiling of a painting purchased by Eat ‘N’ Go to showcase it’s commitment to enriching undeserved children in Lagos, yesterday. Pic by Olawale Amoo

COMPANY RELEASE

How MultiChoice is transforming TV entertainment experience with Step Up, Top Up campaign offers

ultiChoice Nigeria recently embarked on a campaign offer tagged ‘DStv Step Up’ and ‘GOtv Top Up’, geared towards heightening the TV entertainment experience of its consumers by giving access to higher package than what was paid for. The offer is open to both active and disconnected DStv customers on access, family and compact bouquet while Top Up is open to all active and disconnected customers on GOtv Lite, Value and Plus. Essentially, DStv customers on the Access package who pay for Family package get a boost to view programmes on the Compact package, while customers on the Family package

who pay for Compact package get rewarded with Compact Plus package programming. Likewise, Compact customers who pay for Compact Plus package, in turn, get Premium package programming. Similarly, existing and potential customers on GOtv; including GOtv Plus, Value and Lite get upgraded to GOtv Max at a reduced-price of 2500 Naira while GOtv tops up with 700 Naira, giving customers access to exciting content on GOtv Max package. “It’s our desire to make great content more accessible and this desire drives all our offerings. With the DStv Step Up and GOtv Top Up offers, we are giving our customers the www.businessday.ng

opportunity to experience the exciting programming available across higher packages, at the price of a lower package,” said Martin Mabutho, the chief customer officer of MultiChoice Nigeria. According to MultiChoice Nigeria, this was a never-beendone campaign offer in over 25 years of operation birthed by its commitment to continually seek new ways of improving customers’ experience on its platforms. Already, many Nigerians have keyed into this offer to enjoy a whole new different viewing experience with more exciting programming ranging from sports, entertainment, lifestyle, movies, to mention a few.

KELECHI EWUZIE

L-R: Jamie Pearson, marketing director, Afrocet Montgomery; George Pearson, regional director, West Africa, Afrocet Montgomery, and Ediri Ose-Ediale, executive secretary, Advertisers Association of Nigeria, at a press conference on the inauguration of The Nigerian Food Event in Lagos… Pic by Pius Okeosisi

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Friday 19 April 2019

BUSINESS DAY

FINTECH News

Products Review

Technology Review

Personality Review

Company Review

Products Review

Digital ID seen taking Nigeria’s GDP to 7 per cent …Open access to financial services to 64.5 million Nigerians …Individuals could receive 74 per cent of overall value Stories by FRANK ELEANYA

mplementation of digital identification systems in Nigeria could potentially catapult the country’s gross domestic product (GDP) to 5 to 7 per cent in 2030, according to the latest McKinsey’s report ‘Digital Identification: A key to inclusive growth’. The GDP grew 1.9 per cent in 2018 compared to 2017 when it was at 0.8 per cent. In the same vein, the country’s informal sector dominance of the economy could mean individuals will receive 74 per cent of the overall value of an effective Digital ID system. Among the individuals, consumers and commercial providers of goods and services would account for 24 per cent. On the other hand, microenterprises will account for 28 per cent. Digital identification (Digital ID) describes a foundational set of enabling technologies that can be pivotal in a wide range of interactions between individuals and institutions, especially with financial services. It enables individuals to unlock value and benefit as

they interact with firms, governments, and other individuals in six roles: as consumers, workers, microenterprises, taxpayers and beneficiaries. In Nigeria, Digital IDs have been identified as a critical factor for citizens to access social benefits such as subsidies and entitlements. Nigeria has had a long history of knowing the importance of identification and has repeatedly failed to capitalise. In 1978, the Department of National Civil

Registration (DNCR) was set up within the Federal Ministry of Interior (FMI). DNCR was tasked with issuing national identity cards. The program lasted 18 months. In 2001, DNCR contracted a private partner to enrol people, and issue national identity cards, at a fiscal cost of $236.8 million. The program ran for five years, issued national identity cards to 37.3 million people, and was shelved. The system developed was not reused. In

2007, the government passed a law, the National Identity Management Commission (NIMC) Act, and set up NIMC as the government agency responsible for identification in Nigeria. The Nigerian national ID card which was launched on 28 August 2014 by former President Jonathan Goodluck was created to among many functions to facilitate ease of payment for millions of Nigerians living in areas that tra-

ditional financial institutions are not able to reach. With the national ID card many Nigerians can access financial services using their USSD codes, thereby eliminating the burden imposed by lack of internet access. However, years after with billions of naira expended, the national ID card is yet to become a reality. The consequence is that identities of millions of Nigerians are unaccounted for. The World Bank reports that less than 50 per cent of Nigerians have any ID card at all, whilst only 9 per cent of individuals have a national ID number (NIN). Based on the Global Findex Survey results of 2018, 33 per cent of those who do not have ID cite that it is too difficult to obtain, whilst approximately 20 per cent blame lack of supporting documentation. The McKinsey’s report notes that digital ID could contribute to providing access to financial services for over 1.7 billion people in the world who are currently financially excluded. For Nigeria, that means enabling about 64.5 million people to access financial services; reducing fraud and errors in tax filing

to generate more than $13 billion in additional tax revenue; and saving 1.8 billion hours through stream-lined e-government services. Interestingly, the Nigeria government has said it may consider imposing higher taxes on a class of consumer goods. But some private sector leaders have said that what is needed is to widen the tax net to ensure many more Nigerians pay their tax. It may prove a herculean task without accurate data and proper identification of the taxable population in the country. “Globally, governments and businesses are implementing digital identification programs with mixed results and adoption levels,” authors of the results at McKinsey noted. “But when carefully designed, digital ID programs can help people participating more fully in their economy and society as consumers, workers, and citizens. As a result, digital ID not only enables civic and social empowerment, especially in emerging economies but also makes possible real and inclusive economic gains – a less well understood aspect of the technology.”

another cryptocurrency. For instance, following it’s nearly four months run to $5000 at the beginning of April 2019, Bitcoin hit 350,000 transactions per day at around 15,000 transactions every hour, which was about four a second according to a Forbes report. Meanwhile the average number of bitcoin transactions per block hit an all-time high of over 2,700 transactions late last month, meaning the bitcoin network is processing more transactions each time a new block is mined.

cryptocurrencies, however not every crypto has the same level of decentralisation. Some have more than others, and many crypto experts are critical of coins like Ripple and JPM Coin that have a more centralised approach. It is believed that the lack of a single authority makes the system fairer and considerably more secure.

4 things to know before adding any cryptocurrency

oday’s cryptocurrency world is getting bigger, wider and weirder; it is almost becoming confusing for ordinary users to navigate. There are about 2168 cryptocurrencies listed on the Coinmarketcap exchange, including familiar names like Bitcoin, Ethereum, Litecoin as well as unfamiliar and sometimes weird ones like Lambda, Elastos, Fetch, and PLATINCOIN among many others. There is also no shortage of exchanges offering different cryptocurrencies at various attractive rates. In Nigeria and Africa the number of exchanges is growing rapidly. There are about twelve cryptocurrency exchanges in Nigeria as at 2018 that offer services in buying and selling of different cryptocurrencies. Whilst some exchanges al-

low their users trade in up to 6 cryptocurrencies, an exchange like Luno, for instance, only give access to two namely Bitcoin and Ethereum. With the high level of volatility in the cryptocurrency market it is critical to consider four things before making the decision to start transacting with any new coin. Clear and unique cases Almost every newbie in the market start off with Bitcoin and depending on how serious they get with trading, could decide he or she want to venture into other coins. When you do, one of the first things to bear in mind is whether the coin has a clear and unique use case, in other words does a working solution already exist? One of the ways to find out is by searching and going through the Whitepaper – www.businessday.ng

an informational document, usually issued by a company or not-for-profit organisation, to promote and highlight the features of a solution, product, or service. Use case and value propositions show the different problems or market opportunities a coin is addressing. Similarly, the level of success of a cryptocurrency project’s use case is dependent on its uniqueness, which is a function of how innovative and efficient (in terms of transaction fees and speed of execution of transaction) it is able to solve the problem it was created to address. For instance, although Bitcoin had the ‘first movers’ advantage, it has a clear and unique use case nonetheless that continue to encourage people to adopt it into their daily lives. In the same vein,

Ethereum enables the verification of data in an open and transparent way, which means it could be used to pioneer the creation of a digital identification system among other things. Large community willing to adopt solution A coin’s value is often determined by the number of people willing to adopt it. While having a great use case is important, you need to ask yourself “Is the world ready for it?” As long as there are many people willing to use it in their day-to-day transaction the value of the coin is bound to grow. This is the reason Bitcoin and Ethereum has remained the biggest cryptocurrencies in terms of valuation and volume trading. It is also why exchanges like Luno are careful about rushing to add

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Is it decentralised? The decentralisation of cryptocurrencies means they do not rely on a central point of control which removes the need for powerful central authorities and instead gives control back to the individual user. It is one of the critical features of @Businessdayng

Know the People behind the cryptocurrency A cryptocurrency backed by people that have no identity or with little or no experience is often a red flag. All the 2168 altcoins listed on the Coinmarketcap have great ambitions to solve a societal problem or improve an already existing solution but without the right developers and administrative team, the success of that cryptocurrency becomes doubtful.

Friday 19 April 2019

BUSINESS DAY

LEADINGWOMAN

Meet the 7 female senators elected into the national assembly, 2019 KEMI AJUMOBI Aisha Dahiru Ahmed Adamawa Central (APC) Aisha is the only female senator Northern Nigeria, Binta Masi, lost her bid to return to the upper legislative chamber. Adamawa Central Senatorial zone consists of Yola South, Yola North as well as Girei, Fufore, Song and Gombi Local Government Areas of the state. Aisha won Adamawa central senatorial seat, making her the only female senator-elect so far in Northern Nigeria. She scored 188,526 votes, winning Murtala Chibado of the People’s Democratic Party (PDP) who scored 96,530 votes, while Mustafa Madawaki of the African Democratic Congress (ADC) had 36,030 votes and placed third. Aisha is the Managing Director/CEO of Bimani group of companies. She was a former member of the house of representative.

Betty-Apiafi

Tinubu

Oluremi Tinubu Lagos central (APC) Senator Oluremi Tinubu represents Lagos central senatorial district on the platform of the all Progressives congress (APC). An educationist, administrator, philanthropist and officer of the order of the Niger, she was the exemplary First Lady of Lagos state between 1999 and 2007, during which period she founded the new era foundation; a non-profit organisation, dedicated to youth development, girl-child education, women empowerment and inspiring young persons to excellence. Over the years, this forthright role model has made tremendous impact in the lives of several people and institutions within and outside Nigeria. As senator, she hosts a quarterly town hall meeting with her constituents, to render accounts of her stewardship and obtain feed-backs on their developmental needs. To date, she has sponsored three bills: to provide social security for elderly citizens; seek the amendment of the labour act, to enhance employment opportunities for women, and; a bill to provide special economic assistance to Lagos state in view of its status as a former capital city and the commercial capital of Nigeria. She is the convener of the annual musical youth fiesta initiative to promote godly lifestyle among the youths, senator Oluremi Tinubu also co-sponsors the Muniru Muse under-15 football competition for boys and girls. She is also convener of daughters of Zelophehad ministry which ministers to the generation ‘next’ woman, preparing women for leadership roles, and raising godly families. She is happily married with children to his Excellency, Asiwaju Bola Ahmed Tinubu, past Governor of Lagos State. Akon Eyakenyi Akwa-Ibom South (PDP) Akon Etim Eyakenyi was born on 24th February 1960 into the family of chief & Mrs. Uweh Isangedihi of the Oro-Ukpabang in Mbokpu eyo-akan village, Urue-offong/Oruko local government area of Akwa-Ibom state. She attended government primary school, Uko-Uyukim, Oron, where she obtained her first school leaving certificate in 1974 and later proceeded to Methodist teacher’s training college, Oron from 1974 to 1979 for her teacher’s grade ii certificate. In her quest for higher education, Akon Eyakenyi enrolled at the then university of Cross River state between 1983 and 1986, she obtained a Bachelor of Education (B. Ed) Degree from the University of Calabar in 1990, as well as a master of education and Doctor of Philosophy (Ph.d) in curriculum education, which she obtained from the same institution in 2000 and 2014 respectively.

Aisha-Dahiru

Rose Oko

Stella Oduah

Akon In 2013, she was appointed as chairman, Akwa Ibom state technical schools board, by Governor Godswill Akpabio. In this capacity, Eyakenyi introduced laudable initiatives to restore the dignity of technical schools in Akwa Ibom state. She served in this capacity until her appointment as minster of lands, housing and urban development in 2014 by President Goodluck Jonathan. Her sterling performance in career and government remains a strong point of reference for women in Akwa Ibom state. Stella Oduah Anambra north (PDP) Stella Oduah-Ogiemwonyi was born to Igwe Oduah of Akili-Ozizor, L.G.A. in Anambra state on January 5, 1962. Oduah-ogiemwonyi received her bachelors and Masters degree (in accounting and business administration respectively) in the United States. She returned to Nigeria in 1983 and she joined the Nigerian National Petroleum Corporation. In 1992, she left the NNPC to establish the Sea Petroleum & Gas Company limited (SPG), an independent marketer of petroleum products in Nigeria. She was married to the former minister for works, Chris Ogiemwonyi and has children. Stella is a senator and former minister of aviation. In 2013, she was one of the delegates chosen by the president to attend the papal inauguration of Pope Francis together with David Mark, the former president of the senate and Viola Onwuliri. In 2015, she was one of 109 senators elected to the 8th assembly. Only seven of these were women. The others were Rose Okoji Oko, Uche Ekwunife, Fatimat Raji Rasaki, Oluremi Tinubu, www.businessday.ng

Biodun Olujimi and Binta Garba. Uche Lilian Ekwunife Anambra Central (PDP) Uche Ekwunife (born 1970) is a Nigerian politician and member of the 8th Nigerian senate. Ekwunife was born in 1970 in Nri in Anaocha when her surname was Ogudebe. Her first degree was in business and accounting which she earned at the University of Calabar. She then took an MBA at Nnamdi Azikiwe University. Ekwunife had a career in banking where she rose to be an area manager. She married a businessperson from her home community. She and chief Larry Ekwunife have children. Ekwunife stood for election twice unsuccessfully. She was elected as a senator in 2015 for Anambra. There were over 100 senators elected in the 8th national assembly, but only six of these were women. Ekwunife had won the 2015 election but only by switching from one political party to the other. Because of this, her election was challenged and in December 2015 her seat was declared vacant. Ekwanife was unable to get her former political party to back her for the bi-election for her former seat. In 2019, she won senatorial seat representing Anambra central area, Nigeria. Rose Oko Cross-River North (PDP) Rose Okoji Oko (born 27 September 1956) is a Nigerian politician and senator. She was a member of the federal House of Representatives from the ruling People’s Democratic Party (PDP), representing Yala/Ogoja federal constituency in Nigeria’s 7th class of the national assembly. She was elected into office

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as the first female representative from her constituency in June 2011 and sat as deputy chairman house committee on education. She is the current senator representing the people of cross river north senatorial district. She was elected into office as the first female representative from her senatorial district in June 2015, which is remarkable. In 2003, When Nigeria held her first democratic election since the handover of power from military to civilian rule; Okoji Oko contested as a senate candidate, cross river state north senatorial district under the NDP banner, a contest she lost to the PDP candidate at the time. She continued to serve as chairman of the board of trustees for the NDP party up until 2007, when she ran in the country’s second official democratic election as a gubernatorial candidate for cross river state, a contest she lost to the PDP candidate. She was elected as a senator and she represents the north of the state where she was born. Betty Apiafi Rivers West (PDP) Jocelyne Betty Okagua Apiafi (born 19 February 1962) is a Nigerian economist, retired banker, school teacher and politician. In the 2007 general elections, she was elected to the Nigerian house of representatives as a candidate of the People’s Democratic Party in the federal constituency of Abua—Odual—Ahoada East. She was subsequently re-elected in the 2011 and 2015 general elections. Apiafi is also a co-owner of Brookstone Schools Port Harcourt. It is a school that has both primary and secondary extensions with international ties.

@Businessdayng

Friday 19 April 2019

BUSINESS DAY

HEALTH BUSINESS&LIFE

Birth registration: Nigeria records largest number of unregistered children

Data on the distribution and trends in birth registration have shown Nigeria has the highest number of unregistered children under five, this has prevented effective planning. OBOKOH ANTHONIA writes on the urgent need to tackle related challenges with regards to improving awareness and government commitment.

igeria has the largest population of unregistered children in subSahara Africa. This deprives such children of their right to an identity, name and nationality. It also denies them access to basic social services, such as healthcare. The burden of unregistered children under the age 5 each year remains heavy in many African countries. Birth registration is the first step towards recognising a child’s inalienable right as a human being. Globally the births of more than 50 million children - which represent more than 40 per cent of total births worldwide - go unregistered each year. In Nigeria, about 70 percent of the 5 million children born annually in Nigeria is not being registered at birth. This is according to a United Nations Children’s Fund (UNICEF) study based on its assessment of ten nations in Africa. The absence of birth records has hindered proper education and socio-economic planning by the government. These challenges relate to limited financial support for registration processes, lack of awareness regarding the importance of birth registration as a human right and ignorance and illiteracy of the rural men and women about the importance of birth registration. The unregistered children are oftenmembersofparticularindigenous, religious or ethnic groups. However, some factors responsible for this development in Nigeria include decline of women’s access to maternity

centres because of increased poverty and high medical costs. Other factors are distance to birth registration centres due to bad roads or non-availability of public transport for those in rural areas, lack of effective registration infrastructure and low level of awareness of current legislation. However, in Nigeria, there are provisions in the current legislation for birth registration. The Federal Government’s decree No. 69 of 1992 on vital registration states that registration shall be carried out free of charge, within a period of 60 days from the date of birth. Sharon Oladiji, the UNICEF Child Protection Specialist, at Birth Evaluation Report dissemination event April 15, in Abuja said the number of children under five in Nigeria is projected to increase from 32 million in 2015 to 58 million by 2050. “The federal government must ensure the birth registration of children in the coun-

try to properly plan for their education, healthcare and other services. We need birth records for them because this is critical for their education, health and other social initiatives,” she said. Oladiji, said between now and 2030, 136 million babies will be born in Nigeria at 9 million births per year and from 2031 until mid-century there will be 224 million more. “Assuming the current trends persist, a Nigerian will be born 1 in every 11 global births by 2050. A special attention is required for the underfive children in Nigeria. Investing in girls and women, especially in reproductive health, education and preventing child marriage is key to Africa’s demographic transition,” she said. However, in Nigeria, there are provisions in the current legislation for birth registration. The 2003 Child Rights Act in its Section 5 states that:

‘Every child has the right to a name and the birth of every child shall be registered’. According to Pernille Ironside, deputy representative UNICEF, for Nigeria to achieve Birth Registration for all children, “we have been addressing bottlenecks that impede Registration. We have been doing this with the fantastic support of EU in Nigeria.” “From 2012 to 2016, we increased the number of births registered in Nigeria from 3 million to 5 million.” “However, only half of the children under 5 in Nigeria have their births registered. This is not enough. I hope we can take this opportunity to commit to a quantum leap to increase birth registration in the country because every single child counts and that counting starts at the moment of birth registration,” she said. Doyin Odubanjo, chairman, Association of Public Health Physicians of Nigeria, Lagos Chapter, said for Nigeria to progress in birth registration, there should be connection with the local government, health systems and services to ensure every new born child is counted and information are documented. “Engaging the religious bodies to encourage members on the need to register their child at birth is also strategy to help, the country merge collation of birth registration; I urge that citizens should embrace respiration for easy identification and policy making,” said Odubanjo.

Health challenges: Don advocates interdisciplinary collaboration among stakeholders SIKIRAT SHEHU, Ilorin

uke Ekundayo Edungbola, a professor of Medical Sciences has said that finding solutions to human challenges particularly health problems requires synergetic efforts of every stakeholder. Edungbola, who was a former deputy vice-chancellor of University of Ilorin, stated this in an interview with journalists in Ilorin, the Kwara State capital. He stressed that without such concerted interactions, it will be extremely difficult, if not impossible, to eradicate diseases and associated challenges hindering human development. The foremost medical and public health parasitologist, who pioneered various efforts that eventually consigned Guinea-worm disease into the dustbin of history in tropical Africa, recalled that without the cooperation of major stakeholders the dreaded disease would have remained an enduring scourge to Nigerian. He however, implored Nigerian academics to always ensure meaningful interdisciplinary collaborations, efficient cross-fertilization of ideas and ceaseless cooperation among one another with a view to swiftly facilitating enduring solutions to human challenges. Speaking on his forthcoming book to be launched this year, Edungbola disclosed that he decided to author the book titled “The Eradication of Dracunculiasis (Guinea Worm) in Nigeria: An Eyewitness Account”, to preserve his over two decades of stressful, fruitful and impactful experiences in the control of Guinea

worm in Nigeria for posterity. On what propelled him to initiate the war against Guinea-worm, he added: “I hate people suffering. I have seen so many cases and the day I was coming back from America, I saw a woman at OrileIgbon Village near Ogbomoso, suffering from the disease, who told me that everybody in her community was afflicted by Guinea-worm”. He pointed out that it was that pathetic situation that compelled him to initiate the struggle against the debilitating cankerworm that eventually attracted global attention through consistent advocacy and unimaginable support from those who mattered. Edungbola, who was nicknamed “Mr. Guinea-worm” by stakeholders and colleagues because of his apparent passion for the termination of the spread of the disease, said that so many factors accounted for its hitherto unchecked diffusion. According to him, ignorance, taboos, insecurity, poor access to clean water and the remote locations of some human settlement, particularly in the North-Western part of the country, extensively aided the spread of the ailment before his intervention. The Don further explained that as at the time the war against the disease started, Nigeria was undoubtedly the most infested in Sub-Saharan Africa with about a million confirmed cases in several locations across all its regions saint, “I want to thank the University of Ilorin for giving me the impetus, the encouragement, the support, the good will to pursue Guinea-worm to eradication status”.

WHO recommend 10 ways countries can use digital health technology ANTHONIA OBOKOH

orld Health Organisation (WHO) has released new recommendations on 10 ways that countries can use digital health technology, accessible via mobile phones, tablets and computers, to improve people’s health and essential services. “Harnessing the power of digital technologies is essential for achieving universal health coverage,” says Tedros Adhanom Ghebreyesus WHO DirectorGeneral “Ultimately, digital technologies are not ends in themselves; they are vital tools to promote health, keep the world safe, and serve the vulnerable.” Over the past two years, WHO systematically reviewed evidence on digital technologies and consulted with experts from around the world to produce recommendations on some key ways such tools may be used for maximum impact on health systems and

people’s health. One digital intervention already having positive effects in some areas is sending reminders to pregnant women to attend antenatal care appointments and having children return for vaccinations. Other digital approaches reviewed include decision-support tools to guide health workers as they provide care; and enabling individuals and health workers to communicate and consult on health issues from across different locations. “The use of digital technologies offers new opportunities to improve people’s health,” says Soumya Swaminathan, Chief Scientist at WHO. “But the evidence also highlights challenges in the impact of some interventions.” She adds: “If digital technologies are to be sustained and integrated into health systems, they must be able to demonstrate long-term improvements over the traditional ways of delivering health services.” www.businessday.ng

For example, the guideline points to the potential to improve stock management. Digital technologies enable health workers to communicate more efficiently on the status of commodity stocks and gaps. However, notification alone is not enough to improve commodity management; health systems also must respond and take action in a timely manner for replenishing needed commodities. “Digital interventions, depend heavily on the context and ensuring appropriate design,” warns Dr Garrett Mehl, WHO scientist in digital innovations and research. “This includes structural issues in the settings where they are being used, available infrastructure, the health needs they are trying to address, and the ease of use of the technology itself.” Digital health interventions are not sufficient on their own The guideline demonstrates that health systems need to respond to the increased vis-

ibility and availability of information. People also must be assured that their own data is safe and that they are not being put at risk because they have accessed information on sensitive health topics, such as sexual and reproductive health issues. Health workers need adequate training to boost their motivation to transition to this new way of working and need to use technology easily. The guideline stresses the importance of providing supportive environments for training, dealing with unstable infrastructure, as well as policies to protect the privacy of individuals, and governance and coordination to ensure these tools are not fragmented across the health system. The guideline encourages policy-makers and implementers to review and adapt to these conditions if they want digital tools to drive tangible changes and provides guidance on taking privacy considerations on access to patient data.

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“Digital health is not a silver bullet,” says Bernardo Mariano, WHO’s Chief Information Officer. “WHO is working to make sure it’s used as effectively as possible. This means ensuring that it adds value to the health workers and individuals using these technologies, takes into account the infrastructural limitations and that there is proper coordination.” The guideline also makes recommendations about telemedicine, which allows people living in remote locations to obtain health services by using mobile phones, web portals, or other digital tools. WHO points out that this is a valuable complement to face-to-face-interactions, but it cannot replace them entirely. It is also important that consultations are conducted by qualified health workers and that the privacy of individuals’ health information is maintained. The guideline emphasizes the importance of reaching vulnerable populations and @Businessdayng

ensuring that digital health does not endanger them in any way. WHO’s work on digital health This guideline represents the first of many explorations into the use of digital technologies and has only covered a fraction of the many aspects of digital health. In 2018, governments unanimously adopted a World Health Assembly resolution calling on WHO to develop a global strategy on digital health to support national efforts to achieve universal health coverage. That strategy is scheduled to be considered at the World Health Assembly in 2020. Although WHO is expanding its focus on digital health, the Organization has been working in this area for years, for example, through the development of the eHealth Strategy Toolkit in 2012, published in collaboration with International Telecommunications Union (ITU).

Friday 19 April 2019

BUSINESS DAY

HEALTH BUSINESS&LIFE Easter Break 2019- Dealing with fears, stomach upsets, diarrhoea, Sun burn

Q-LIFE FAMILY CLINIC

ADE ALAKIJA Continued from last week

uring Trip: Maintain a regular routine where possible thus ensuring a sense of control over a new environment and compliance with any medication. Ensure adequate rest, hydration and calorie intake, especially if a busy schedule is expected. Travellers should ensure adequate exercise and non-work related activities are maintained. Pre-arrange contact via telephone, Skype, email with close friends and family at home, especially when travelling alone. Avoid excess alcohol and illicit drug. The risk of travellers’ diarrhoea: can be reduced, although not eliminated, by practising good food, water and hand hygiene. Fundamental points to highlight to travellers. Personal hygiene when eating and drinking is very important. Where possible, hands should be washed thoroughly using soap and clean water, prior to handling food, eating and always after using the toilet. Hand washing facilities may be poor or not available when travelling, therefore it is advisable to carry sanitising gel or hand wipes at all times. Clean dishes, cups and utensils should be used; alcohol

wipes can be used to clean them if necessary. Food Hygiene: Food should be freshly cooked to a high temperature and served immediately while still hot. Harmful micro-organisms are killed over 700C, it is important that this temperature is reached throughout the food. Meat should be thoroughly cooked and eaten hot. Leftovers and reheated meat should be avoided. Fish and shellfish can be hazardous even if well cooked. Local advice about seafood should be sought, but when in doubt it is best avoided. Only consume pasteurised milk/milk products. Unpasteurised milk should be boiled. Cheeses and ice cream may be made from unpasteurised milk. These should only be consumed where quality can be assured. Only eat thoroughly cooked vegetables. Salads and fresh herbs (including in drinks) should be avoided. Peel fruit, including tomatoes. Berries, in particular raspberries, maybe sources of Cyclospora They are difficult to wash and best avoided. Water Hygiene: Water can contain not only particulate matter and pathogenic micro-organisms, but also chemical pollutants. Water should only be drunk if its purity is known. This also applies to water used for making ice cubes and cleaning teeth. It should not be drunk unless it is bottled with an intact seal, boiled, chemically disinfected or passed through a reliable filter. Hot tea and coffee are usually safe as are beer and wine.

Water Purification: Boiling: This is the most reliable method, It is generally accepted that bringing to a rolling boil achieves adequate purification. Water should be boiled for 3 minutes at altitudes above 2000m (6562ft) where water boils at a lower temperature. This may be the most acceptable method for travellers going to visit friends and relatives where access to equipment is possible. Water purified in this way should be cooled and covered to avoid contamination after boiling. If water is not boiled, a combination of techniques to disinfect water should be used, and can include the use of filters (ceramic, carbon, and membrane), halogens, chemical disinfectants and/or UV radiation. Some sun exposure: below the level of sunburn can be beneficial through helping our bodies create vitamin D and promoting feelings of general well-being. However, excessive sun exposure is associated with: sunburn, skin cancer, photosensitive rashes, aggravation of existing conditions such as rosaceous and eczema, premature skin aging. The risk of sunburn is increased when, in addition to direct exposure from the sun, Ultra Violet (UV) radiation is also reflected. For example, the sun is reflected from water when swimming, and from white sand or snow. The risk is also greater at higher altitudes when there is less protection from the earth’s atmosphere. Sunscreens may be needed SPF 15 to 25 and UVA rating of 3 may be adequate for most

Coca-Cola donates N3.8 billion medical equipment to Federal Medical Centre ANTHONIA OBOKOH

oca-Cola Nigeria Limited has donated N3.8 billion worth of new maternal and neo-natal care equipment to the Federal Medical Centre, Ebute-Metta, as part of The Safe Birth Initiative to strengthen Nigeria’s healthcare systems. According to the National Demographics and Health Survey (NDHS, 2013), Nigeria loses as many as 576 women per 100,000 childbirths and 37 new born deaths per 1,000 live births, placing the country among the worst ratios for both maternal and new born deaths globally. The Safe Birth Initiative, a Coca-Cola partnership with the Federal Ministry of Health, the Office of the Senior Special Assistant to the President on Sustainable Development Goals and an non-governmental organisation, Medshare International Incorporation is a critical intervention that aims to tackle the high rate of maternal and new born deaths in Nigeria. Clem Ugorji, the CocaCola West Africa Public Affairs and communications director said Federal Medical Centre Ebute-Metta is the second out of the 15 hospitals set to receive a set of medical equipment provided under

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the Safe Birth Initiative. “During the first phase, 15 major public hospitals across Nigeria recommended by the Federal Ministry of Health, will receive hospital equipment, kits and supplies worth a total conservative value of about $10.8 million that is over N3.8 billion,” he said. Adedamola Dada, the chief medical director, Federal Medical Centre, EbuteMetta, said, we are grateful to Coca-Cola, the OSSAP-SDGs, Medshare International and the Federal Government for this initiative. “Already, since receiving the SBI equipment early this year, we have saved just a little under N10 million in medical and administrative costs. We have recorded and supported 21 premature births with the newly-installed incubators; 321 mothers and babies have been brought home alive; and 46,000 other patients have benefitted in some way from the SBI initiative”. “Coca-Cola has also ensured the sustainability of the programme and equipment, making sure we have adequate engineering capacity on ground, through the training of our engineers, for preventive maintenance,” he added. The Safe Birth Initiative is focused on supporting doctors and nurses to achieve

successful birth outcomes by strengthening the capacity of target public hospitals in three critical areas including: the procurement of vital maternal and neonatal medical equipment and supplies to enable safe deliveries and post-delivery emergency care; training biomedical engineering technicians to improve equipment maintenance and uptime; and reactivating a large stock of abandoned medical equipment wasting away in public hospitals. Ugorji added that active and intentional collaboration between members of the private and public sector is important for transforming healthcare in Nigeria. “We commend the good work our doctors and nurses are doing but recognise that there is a limit to what they can do without the critical equipment required for effective diagnosis, testing and treatment.” “Through the Safe Birth Initiative, we are pleased to be able to donate vital equipment to aid the work currently being done to safeguard the lives of mothers and babies here at Federal medical Centre, Ebute-Metta and the 14 other hospitals that will receive donations as part of the first phase of the Safe Birth Initiative,” he said.

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The safest way to enjoy the sun and protect skin from sunburn is to use a combination of shade, clothing and sunscreen: seek shelter and avoid sun exposure between 11am and 3pm when the sun is typically stronger or expose for short periods 10-20mins to get your Vitamin D

Nigerians. Sun Safety: The safest way to enjoy the sun and protect skin from sunburn is to use a combination of shade, clothing and sunscreen: seek shelter and avoid sun exposure between 11am and 3pm when the sun is typically stronger or expose for short periods 10-20mins to get your Vitamin D, cover up using clothing such as wide brimmed hat and long sleeved tops, closed weaved fabrics may offer better sun protection, use sunscreen properly , wear sunglasses with wraparound lenses or wide arms with the CE Mark and European Standard EN 1836:2005. Babies under 6 months of age should be kept out of direct strong sunlight, infants and children should be well protected at all times, extra care is required for those with fair skin. First Aid Kits: It is wise to carry along a properly stocked first aid kit for small emergencies. Small tips:-Pack light, always carry a mobile phone with your ICE (In case of emergency) numbers on it. Sanitizers, tissue paper, google maps may be useful. Always have a functional fully roaming and topped up mobile phone that can roam at the destination country. Remember the worldwide emergency number even if your phone has no credit is 112. It is free of charge and it works. Have a pleasant and safe trip and a pleasant family Easter Holiday. Don’t spoil a great holiday. Boil it, cook it, peel it or forget it.

Don’t maltreat the mentally challenged patients, Yaya-Kolade counsels AKINREMI FEYISIPO

e o p l e w h o h av e mentally challenged persons as family members have been urged not to maltreat or discriminate against them because of their mental state of health. Moji Yaya-Kolade, Ekiti State commissioner for Health and Human Services, gave this advice during her visit to the Psychiatric Department of the Ekiti State University Teaching Hospital, EKSUTH Ado-Ekiti where a psychiatric patient (name withheld) who was delivered of a baby girl is undergoing intensive care. Yaya- Kolade said family members should not see their challenged mental condition

as something embarrassing, adding that mental illness can happen to anybody for various reasons. The commissioner said the government of kayode Fayemi has come to listen and attend to the concerns of Ekiti people, especially now that Human Services is now added to the Ministry of Health. “Our attention was drawn to a psychiatric patient that put to bed on the street of Ayede-Ekiti, she could have had the baby in the hospital but because she didn’t know, she had her baby on the street. It is our responsibility to take care of such people and that is exactly what we have done as a government” The Doctor handling the case, Esther Akinsoto said

the Commissioner for Health informed her of the incident through a phone call and she swung into action by moving her to the Psychiatric Department of the EKSUTH where she would be giving proper medical and psychiatric management. She commended the state government for not discriminating against anybody irrespective of their state of health. “The woman is very intelligent because I have interacted with her, I am sure if she is well treated she will get better and fit to take good care of the baby”, she explained. Akinsoto however said people of Ekiti should be happy to have voted Fayemi who showed genuine concerns for the people’s welfare.

L-R: Dr Yahaya Hamza, Head Sectors, Office of the Senior Special Assistant on Sustainable Development Goals; representing Princess Adejoke, Senior Special Assistant to The President on SDGs; Dr Adedamola Dada, Chief Medical Director, Federal Medical Centre, Ebute-Metta; Clem Ugorji, Public Affairs and Communications Director, Coca-Cola West Africa and Alhaji Ishola Balogun Fulani, Chairman, Board of Management, Federal Medical Centre, Ebute-Metta during the commissioning of the newly installed medical equipment, at the Federal Medical Centre, Ebute-Metta under Coca-Cola’s Safe Birth Initiative, Monday, April 15, 2019

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

Friday 19 April 2019

BUSINESS DAY

Harvard Business Review

MANAGEMENTDIGEST

Case study: Sell direct-to-consumer or through Amazon.com? THALES TEIXEIRA AN E-BIKE MAKER WEIGHS THE TRADE-OFFS. itting in his office, Mark Ellinas frowned at his computer screen. It was filled with row after row of electric bikes, from expensive models to cheap knockoffs that seemed held together by spit and a prayer. Though they varied in style and price, the bikes did have one thing in common: where they were being sold. The website he was looking at, flush with options, was Amazon.com. As the CMO of PedalSpark, a small maker of high-end electric bicycles, Mark was considering strategies for selling the company’s new ride. The market for electric bikes had exploded in the past few years, especially in China, and it showed no signs of slowing down. PedalSpark’s signature bike, a $4,000 luxury model available only through the company’s website, was selling well and had been named to a few “best e-bike” lists. Now PedalSpark was about to introduce a cheaper, entry-level model, which it hoped would have broader appeal. The bike was targeted at price-sensitive riders, people who were willing to trade higher battery life and motor power for a lower price tag. Two years ago PedalSpark had hired Mark away from his marketing position at a children’s bicycle maker. That company had sold exclusively on its own site, and Mark’s expertise had served PedalSpark well with its first product. He was excited by the challenge of selling the new bike in an increasingly crowded market, but the question was how to do it. His two direct reports were split. Gideon Bear, the sales manager, tended to favor aggressive approaches. He wanted to sell the new model on Amazon, which had, as he’d put it, “a few more customers than our site.” But Tamar Nourse, the product manager who’d recently come on board, was worried about whether the bike would stand out on Amazon. She thought that keeping the new model on PedalSpark’s site, where their team could control the entire sales process, would be better over the long term. Bzzt. Mark glanced at his phone and saw a text from the CEO: “Where are we on the online channel strategy? Looking forward to your presentation.” The new model was almost ready, and the CEO wanted a decision soon. With the presentation scheduled in two days, Mark still had some time to

think — but not much. GIVING INFORMATION TO THE ENEMY Mark closed his laptop and walked down the hall to Tamar’s office. He knocked on the open door. “Hey, got a minute?” Tamar looked up and adjusted her thick-rimmed glasses. “Hi, Mark. What’s up?” He sat down across from her. “So, about the bike. In the meetings with Gideon it feels like you’ve been holding something back. We have to make a decision, so I need you to tell me what you aren’t telling me.” She took a deep breath. “Mark, I’m still new here, and I don’t want to rock the boat. But I really think selling on Amazon would be a terrible move for us.” “Why, though?” “The day we put the bike on sale, Amazon will start vacuuming up information about our customers, our margins and the market’s potential. If it ever decides to get into the e-bike business, we’ll have hand-delivered all the data it needs to squash us.” “I know that worrying is part of your job, but is it possible you’re being a little paranoid here?” “You should ask my B-school classmate Marta.” “Who is she?” “A few years ago she was the founder and CEO of a successful startup. She’d had an idea for a new kind of tablet stand. She spent a year developing a prototype and finding a manufacturer in China that would work with her. Then she started selling on Amazon. Now she’s the former CEO of a company that doesn’t exist anymore.” “Wow. What happened?” “For about a year the tablet stand got great reviews and sold well at $40 each. During the backto-school season, she was moving a few thousand a month. Then a bunch of copycat products started

popping up. She had to fight them off as best she could. She complained to Amazon, but it didn’t do anything, of course. Then AmazonBasics debuted its new tablet stand. It was a lot like hers, though different enough to avoid a lawsuit. It was also half the price.” “E-bikes are a lot more complex than tablet stands, though. What are the chances Amazon will make one of its own?” Tamar’s lips curled into a small smile. “I don’t know, but if we went head-to-head against Jeff Bezos, would you put your money on us? Amazon’s private-label products are projected to hit $25 billion in sales by 2022.” Mark shuddered. “A dark thought to have before lunch. How do you figure our chances against the existing competition?” “We do have great bikes, but quality isn’t enough on Amazon. Whatever your product is, there’s always a cheaper version, and usually that’s the one people buy. It’s a never-ending, anything-goes price war there. I’m guessing that isn’t what we want people to associate with our brand.” Nodding slowly, the CMO rubbed his chin. “Good point, and I don’t disagree. Gideon is pretty keen on the Amazon idea, though.” Tamar adjusted her glasses again. “I get why — more customers and more visibility. That may help us sell bikes in the short term, but what about the long term? If people buy the new model on Amazon, will they be loyal to the maker or to where they bought it? We built the PedalSpark brand by selling the luxury bike on our website. Why try to fix what’s already working?” TRYING SOMETHING NEW That afternoon, Mark asked Gideon to meet him in the cafeteria for coffee. The sales manager poured milk into his steaming cup and swirled it around with a straw. “Amazon, Mark. You know what I think. What are you thinking?” “Undecided. There’s a lot of risk in selling the bike there, but a lot of upside, too.” “Yes! I’m glad you see that. Amazon Prime has over 100 million members, and it’s growing. Imagine the sales if a fraction of them ordered the new bike — and imagine how many of them will if two-day delivery is available. Someone gets excited about e-bikes on a Wednesday, and by Friday she has one of her own to ride. The possibilities are endless.” “It’s fun to daydream about, Gideon, but are we set up to handle higher volume and a shorter fulfillment window? Orders that come

through our site have a shipping time of two weeks. I’m nervous about promising something we can’t deliver — and to a bunch of new customers, no less.” “But that’s the beauty of Amazon,” Gideon said, his voice rising in excitement. “We have options. I know I’m telling you your job right now, but we can sell product to Amazon for it to resell, or sell the bikes ourselves and let Amazon handle the warehousing and shipping, or list them on Amazon and ship them on our own. You’re always talking about the value of running small, controlled experiments, so let’s try one and see what happens. If it doesn’t work, we’ll switch tactics and adapt as we learn.” He grinned. “Everyone in this company agrees we have a great new product. All I want is to get it to as many people as possible.” “There are three options, yes, but they don’t give us a lot of wiggle room if things go badly. We may be able to play with the bike’s price a bit, but we can’t lower it that much or we won’t make any money — and it could make us look cheap, too. I do think a higher price point is fair for the bike we’re selling. Even luxury brands that sell on Amazon today hesitated about it for a long time, and it would be a good idea for us to think about why that is. The jury is still out on whether they benefit by being on Amazon.” “You know who sells on Amazon? Apple. Versace. Rolex. Jimmy Choo, Mark — Jimmy Choo. And more will follow. Whichever companies don’t will be on the wrong side of retail history.” “We aren’t Versace, Gideon. Besides, a lot of those brands sell a very small subset of their products on Amazon — and usually not their flagship ones. They save those for their own sites or stores, where they can control the buying experience. We’re trying to raise our profile as a high-end brand, right? How would we look if we were one of dozens of e-bikes in Amazon’s listings?” “Sure, but we already have the luxury bike selling well on our site. I agree, we shouldn’t change anything there. But the new bike is for everyone. And everyone is on Amazon.” Mark took a sip of coffee, thinking. “Look, I get it, you have some concerns,” Gideon continued, “so let’s talk numbers. Based on what our competition is doing, I figure if we put the new bike on Amazon, we can reasonably expect to sell 10,000 units a year.” “At what price point?” “$899. That’s a little higher than we’ve been talking about, but it

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gives us some room to go lower if we need to.” “And what are the latest numbers for luxury bike sales on our site?” “Last year we sold 2,000 units at $4,000 apiece. Remember, the new bike won’t be only on Amazon. We’ll sell it on our site, too.” Mark scratched his head. “What we really need is a way to quantify the risk that Amazon will enter the e-bike market. It would make this so much easier.” “That’s the big mystery. Amazon will have all the consumer data, and we’ll have very little of it. But look at it this way — there are already a lot of e-bikes on Amazon, so they’re already watching the market. Even if they do make their own bike, that could be years away. We might as well find new customers while we can. People can’t buy our bikes if they don’t know about them.” Mark stared at Gideon for a long moment. “Let me ask you something. How are you so sure about all this?” Gideon laughed. “In my moments of doubt, I think of Instant Pot. It’s a quality appliance — not quite luxury, but good — that has a cult following and that made its name on Amazon. At one point, 90% of its sales were from there. Do you know how many Instant Pots were sold on Prime Day this year?” “No, but I’m a little surprised you do.”“I cook a lot. The number, Mark, is 300,000. In just 36 hours. I think we could be the Instant Pot of e-bikes.” The CMO stirred his coffee. “You may be excitable, but I’ll admit it’s kind of contagious. I just can’t shake the feeling that once we open the door to Amazon, there will be no closing it.” Gideon held up his coffee for a toast. “To opening the door — just a crack — and seeing what’s behind it.” SEARCHING FOR ANSWERS Back in his office at the end of the day, Mark was staring at his computer again. Tamar and Gideon seemed so sure of what to do, but the CMO was struggling to make up his mind. The screen of his laptop still showed the Amazon site, with its rows of e-bikes. Sighing, Mark opened Google and typed “What are the dangers of selling on Amazon?” into the search bar. The query returned almost 250 million results. “Hard to tell whether there are more horror stories or more success stories,” he muttered. “Well, this bike isn’t going to sell itself. I have to decide something, one way or another.”

Friday 19 April 2019

BUSINESS DAY

AGRIBUSINESSINSIGHT Market Insights

Analysis

Commentaries

Experts/Industry Views

Commodities watch

Policy Reviews

What Nigeria can learn as Sudan leverages technology to overcome wheat deficit . . . As farmers target 7t/ha yield CALEB OJEWALE Twiiter: @calebtinolu

ecent successes by some wheat farmers in Sudan courtesy of new heat-resistant wheat varieties that could transform the country’s food landscape, can also offer Nigeria some hints on how to improve sufficiency in the crop. While Nigeria’s yield in wheat has hovered around 2 tonnes per hectare, and having a 4.64 million metric tonne deficit according to the Agricultural Promotion Policy (2016 – 2020), Sudanese farmers on the other hand are now expecting yields of up to 7 tonnes per hectare based on the new varieties. With the deployment of new varieties such as Imam, Zakia and Bohain, Sudan’s wheat-growing areas have reported a rise in production to around 303,000 hectares up from 230,000 hectares in 2017. The high productivity and wheat area expansion witnessed during this season is expected to lead to a record high production expectation of around 0.85 million tons of wheat, covering up to 45 per cent of the national demand, according to Nahar Osman Nahar, Sudan’s Minister of Agriculture and Forestry. The achievements of the wheat project have been attributed to the Technologies for African Agricultural Transformation (TAAT) programme of the African Development Bank (AfDB). It has led to the roll out of technologically enhanced wheat varieties, in line

with one of the Bank’s top High Five Priorities - Feed Africa. At a field day event, technologyadopting farmers expressed their happiness with the impressive performance of heat-tolerant wheat varieties, and said they were expecting to realize yields of 4-6 tonnes per hectare this season, compared to 2tonnes per hectare before joining the Project. At Wadelneim village, a group of innovative farmers who adopted the heat-tolerant varieties Zakia and Imam, said they expected to achieve yields of 6-7 t/ha. They attributed their success to the hands-on training they received at the TAAT farm school. Between 2012 and 2016, Sudan only produced 24% of the country’s national wheat demand, leaving it heavily reliant on imports of over 1.5 million tons of wheat each year. In Nigeria, wheat importation accounted for N362.4 billion in

2018, representing 42.5 percent of the N852 billion officially captured to have been spent importing agricultural goods, according to the National Bureau of Statistics. “If you look at the derivatives of wheat, it is top line food for the younger, (upper and lower) middle income class, and that population is growing,” Ayodeji Balogun, country manager, AFEX Commodities Exchange Limited, told BusinessDay. “The population of people eating pasta will continue to increase, and every sachet of Noodles is a part of wheat. That number will keep growing and wheat is not a crop we have any efficiency in producing,” he added. High yielding, heat-tolerant wheat varieties such as those being tried in Sudan may help Nigeria boost local wheat production, particularly in the northern parts of the country where it has been traditionally cultivated.

Why Nigeria needs to rethink hard stance on Cannabis (1) CALEB OJEWALE

nNigeria,Cannabis orMarijuana as it is more popular called is for all intent, an illegal item. This has been driven more from a moral standpoint where the plant is considered the source of a social vice that could impair the reasoning of individuals who abuse it. However, Cannabis is fast becoming the bedrock of what is now becoming a multibillion dollar industry. It serves various uses from healthcare to nutrition, of course legislated in different ways across the world. As some countries take steps to put the plant to economic, health and other non-harmful human needs, it appears there is a need for re-orientation and policy direction for a utilitarian purpose in Nigeria. Constellation Brands, a Fortune 500 company and global alcohol giant, announced in

August 2018, that it was investing a further $4 billion in publicly traded Canadian marijuana grower Canopy Growth. Founded in 2013 and traded in Toronto under the ticker WEED, Canopy is the largest publicly traded cannabis company in the world. A month earlier in July 2018, New York-based, multi-state cannabis company Acreage Holdings announced it had raised $119 million through a Series E round of funding. At the time, it represented the largest private round in the history of the U.S. cannabis industry, surpassing the $100 million raised by Privateer Holdings in January of the same year. These are few among several instances of investments in the cannabis industry, when companies have been emboldened to take such steps in societies the law has been adjusted to accommodate the www.businessday.ng

budding industry. Controversies exist nonetheless, but the benefits as it appears are getting an edge to trump moral reservations. Both sides of the debate are of course important. Cannabis is generally described as a family of plants with two primary classifications — Indica and Sativa. While marijuana can be considered a member of either the Indica or Sativa families, Hemp is a member of the Cannabis Sativa family. According to the “Global State of Hemp: 2019 Industry Outlook ”, Hemp has been making headlines for its impact on several mature markets – from food and textiles, to building construction and nutraceuticals. Hemp is emerging as a potential commodity ripe to not only influence but possibly revolutionize major economic sectors around the world Continues next week...

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A Short Guide to Agri-Entrepreneurship HANNAH EDIA

he term, agripreneur, was not as popular ten years ago as it is now. It is now becoming a cliche for anyone that is involved in agriculture in one way or another, and, boy are we glad for that! The potential for growth in agriculture is incredible and we need young people to get involved if we are to maximize the opportunities that are created daily in this industry. The opportunities include but are not limited to creating a structured marketplace, automation, logistics, and growing quality, industr y-standard products. To harness these opportunities and produce results that will significantly contribute to the growth of the economy, agrientrepreneurs or agripreneurs must approach agriculture as a proper business, not a hunt for quick bucks. Upcoming agripreneurs must embrace:

1. Innovation Agripreneurs must look for ways to improve on existing ideas or processes, proffer solutions and pioneer new products. Instead of viewing agriculture as a standalone industry, you can come up with more innovative ideas if you view it as a part of a whole. Research all the industries and see how you can connect or integrate agriculture to create something new and useful. A cursory analysis of Farmcrowdy for instance, shows an integration of agriculture, technology, and finance. Also, the ability to predict trends and foresee problems is as important as coming up with the solutions themselves. Areas that are yet to be fully explored include organic crop cultivation, processing crops into organic body/health products, growing climate resistant crops, curbing food waste, and more. Instead of thinking in a vacuum or guessing what people want, innovators pore through data and spend time monitoring trends, listening to the news and getting feedback from people to know exactly what they want. Innovators also validate their ideas first to see if its credible. Agriculture can be an expensive business and as much as you should leave space for errors, it is also important that you minimize error as much as possible. 2. After-sales Support For too long, farmers have only been concerned about growing food, and supplying their distributors or finding a third-party @Businessdayng

to do so. However, it is important that entrepreneurs in agriculture start providing premium after sales support to ensure that distributors are satisfied with their products. It is also important to get feedback from suppliers and distributors as this will not only encourage growth and loyalty, it may also be important to expanding your network. 3. Education Agripreneurs should acquire both formal and informal education to improve their skills as business owners. Agribusiness is for those who actively pursue self-development as there are a number of new technologies deployed per time and you have to stay up to date. There are several courses that can be conveniently taken online, for free, from your mobile phone, so there is literally no excuse to not get educated. Although you still have to pay for components of your school fees, you can definitely take advantage of the Tuition free Agriculture courses from Landmark University. Courses include Crop Science, Animal Science, Agric Extension & Rural Development, Agric Economics, Agribusiness Management, Environmental & Natural Resource Economics, Aquaculture and Fisheries Management, Tourism and Recreation, Horticulture and Landscape management You can also take free courses from sites like Udemy, Coursera, edX, etc. It’s important to mention at this point that there are agripreneurs that are still technology-averse and very rigid to change. The quicker you realize that the modus operandi for businesses of the future will be powered by technology, the quicker you can restructure your business model and set up your agribusiness for success. 4. Business Acumen These days agripreneurs are not just producers growing food, they also have to play management, administrative, and leadership role, while improving financial performance. Over and above that, agripreneurs must have a keen sense of direction for their business and be able to communicate properly throughout the whole organization. The ability to leverage the network of every member of the team, make the right decisions that will impact the company’s bottomline, and resolve conflict is crucial in running a successful business. Hannah is the Lead SEO/Content Development at Farmcrowdy. Continues online at ww.businessday.ng

Friday 19 April 2019

BUSINESS DAY

INSIGHT

How $500m Crown Refinery will reposition Ondo’s economy MICHAEL ANI

ith a $500 million modular refinery coming into the limelight by 2023, Ondo state will experience an improvement in its key macroeconomic indicators. On 3rd April 2019, Crown Refinery and Petrochemical Limited’s—a privately owned company whose core business is into refining of crude oil into premium petroleum products, entered a Memorandum of Understanding (MOU) with the Ondo state government to build a refining facility in the state. The proposed project, due for completion in 36 months, will have an initial capacity to refine about 30,000 BPSD but would be scaled up to 60,000 BPSD within the next five years, according to Kassim Adeleke, CEO of the company in a statement. The state’s free trade zone in Eruna Ogboti village, Ilaje local government area will be the refinery’s abode. The facility will be doing more than just crude refining to churning out 120,000 tons of base oil and 25,000 tons’ lubrication oil yearly, helping to bridge the supply gap of petroleum products in Africa’s largest economy. Just like the major benefits arising from infrastructural developments in a country, the modular refinery is expected to rub positively on the developments of the state by giving a boost in economic activities of the state. It will also empower the citizenry of the state by creating employment opportunities which will, in turn, increase their ability to command more goods and services. Furthermore, it will open up the state to further domestics and foreign inflows which will help in increasing the states revenue buffers for the south-western states in Nigeria. The state borders Ekiti state to the north, Kogi state to the northeast, Edo state to the east, Delta state to the southeast, Ogun state to the southwest, and Osun state to the northwest. In 2017, the state boasted a gross state product (GSP) of N1.6 trillion which is about 1.4 per cent of Nigeria’s GDP, according to data compiled by BusinessDay. With the completion of the refinery, analysts say they expect a sporadic increase in the state’s economic activities since crude oil happens to be the country’s bread and butter. “The establishment of the modular refinery is a positive development for the state given its attendant effects in stimulating economic activities, creating job opportunities, attracting private sector investments, all of which are expected to enhance the productive capacity of the state and improve its GDP”. Gbolahan Ologunro, an equity research analyst at Lagos-based CSL stockbrokers said. In the monetary term, Ondo state is the 3rd largest state in the south-west, 7th in the South and 16th economy in Nigeria. Home to some 4.9 million people, the population of the state represents about 2.4 per cent of the national population, most of whom are agriculturalist. Being the 4th most populated state

L-R Kassim Adeleke, Chief Executive Officer; Oluwarotimi Akeredolu, Ondo state Governor

in the South-West, 9th in the south and 18th in the country, Ondo state raked in total revenue of N65.5 billion which accounts for about 2.2 per cent of all states’ total revenue in 2017. Ologunro explained that given the size of the state, the modular refinery should further consolidate the efforts of the state governments in improving its internally generated revenue as the economic activities rev up and clustering of industries gather momentum in the state. “Over the long term, this should reduce the dependency of the state on FAAC allocation and place it on a better footing in mobilizing resources internally to finance its overheads and accelerate the standard of living of its populace”, he added. Ondo state has a Land Area of 15,800 per kilometre square, representing about 1.7 per cent of Nigeria’s land mass, 3rd in the South west, 6th in the

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The investment is a much-needed one for the state to create jobs and open us the eco

south as well as 25th in the country. In terms of sector’s contribution to the states GDP in 2017, the services sector accounted for the largest with 47 per cent, followed by oil accounting for 36 per cent. The agricultural and the non-oil industry occupied the third and the fourth spots accounting for about 11 and 6 per cent of the GSP respectively. The Manufacturing (mainly food, beverages and tobacco, but also textile, apparel and footwear) was 66 per cent of the state’s non-oil output while construction was 32 per cent. In monetary terms, the state’s N174.7 billion agricultural output was 0.73 per cent of Nigeria’s agricultural sector. It was also the 3rd in the south-west, 5th in the south and 21st in the country while its N96.7 billion non-oil industrial output was 0.6 per cent of Nigeria’s nonindustrial output, coming 4th in the south-west, 9th in the south and 17th in the country. Service output of N786.3 billion in Ondo state accounted for 1.2 per cent of Nigeria’s service output, 4th in the south-West, 8th in the south and 11th in the country. On the benefit that the project will have on the states, Kazeem explained that the company will be providing several infrastructural projects in the states and would turn around unemployment for the state’s indigenes. “The project host communities would benefit from infrastructural developments as we are partnering with Simens company to provide over 40 megawatts of power for the state. We are also going to be awarding scholarships program, entrepreneurial opportunities as well as 2000 direct and indirect employment opportunities”, he noted. The Nigerian and the West African market’s demand for petroleum products have been on the increase, but this demand is largely underserviced by the

existing supply capacities of refineries across the region. Amid a much higher demand for the product relative to supply is the fact that the West African sub-region still imports most of her refined petroleum product due to poor political will to develop a functional refinery. Nigeria, Africa’s biggest oil producer has four refineries that have long sat idle. BusinessDay in a report noted that Nigeria’s state-owned oil firm and sole importer of crude oil into the country recorded a loss in the full year 2018, despite Brent crude averaging above $70 in the larger part of the year. This poor performance is seen as a show of shame when compared with its counterparts from Brazil, China, Norway and Russia. Despite this loss overtime, Nigeria has continued to maintain a status quo that is seen as unsustainable and detrimental to its economy. In 2018 alone, the country spent N730.9 on subsidy which it has stylishly called under-recover, BusinessDay reported. In light of these shortfalls in supply, private players have increasingly intervened to bridge that gap. Africa’s richest man and chairman of Dangote refinery will be flagging of his refinery with a production capacity of 650,000 bpd in 2021. “The market is deep enough! For us, it is more of contributing to an industry output that will meet the demand,” Kazeem noted. Also, a note should be taken of the wider West African market, which provides additional opportunity for export. On his part, the governor of the state, Rotimi Akeredolu said the state will continue to render utmost support in seeing that the firm achieve success in line with its vision and mission statement. According to him, the investment is a much-needed one for the state to create jobs and open us the eco.

Friday 19 April 2019

BUSINESS DAY

INTERVIEW ‘We endeavour to retain Sarsoli Industries’ presence on the global map for its quality’ Jaiprakash Changrani is the Managing Director, Founder and Chairman of Sarsoli Industries, a plastic master batch producer. In an interview with Ifeoma Okeke, he speaks about Sarsoli and its strategic position and role in the upcoming K event, the largest trade fair for the plastics and rubber industry, which will hold in Dusseldorf, Germany, from 16th-23rd October 2019. Can we meet the brain behind Sarsoli Industries? y name is Jaiprakash Changrani, the managing director, Founder and Chairman of Sarsoli Industries. Before starting Sarsoli Industries in 2011, I played a key role in setting up Performs and Cap manufacturing for Prima Corporation in 2005. In the span of five years, Prima Corporation became the largest producers of performs and caps in Nigeria. I was also the Director of Classic Beverages, the producers of “La Casera”, and my inputs helped make La Casera number one in PET bottle drinks. In 2013, Sarsoli was the first company from West Africa to exhibit at the K Fair, Dusseldorf. This was repeated again in 2016 and 2019. Sarsoli Industries, Nigeria’s representative at the world plastic fair in Germany, has reiterated its commitment towards boosting investment in the industry. No doubt, its participation positioned the country for bigger economic benefits from prospective investors. The company being the first exhibitor from whole of West Africa further confirms Nigeria’s dominance in that sector of manufacturing. What is the Sarsoli Industries all about and what do you stand for? Sarsoli Industries is a plastic master batch manufacturing company that started operations in 2011, and is the first master batch manufacturing company in Nigeria. Plastic master batches are the granules mixed with plastic raw material in the percentage of 2-4 percent to bring out the colours in the finished products. To produce master batches, there are nearly 20 different ingredients used to get different coloured master batches. Nearly 40 percent of these ingredients are imported from different parts of the Globe like, India, China, Egypt, Germany, US, Belgium, Korea, etc. What companies does Sarsoli Industries supply its products to? Sarsoli Industries supplies companies such as Forte Nig. Ltd; PZ, BAGCO, Dangote Agro Sacks; KGM, and Ammasco, with different coloured master batches. Before we started Sarsoli Industries, we were importing master batches from Korea. Now, we manufacture plastic colour master batches locally and have more than 1,000 different colours and shades for our customers. How does Sarsoli Industries ensure it meets demand for quality and quantity in the market place? We have state-of-the art machines at our disposal to help us improve the quality and quantity of master batches that we produce. We have employed a team of experts who are routinely participating in training programmes to keep themselves informed with the current climate of the plastic industry.

Jaiprakash Changrani

What is your role as a managing director at Sarsoli Industries? As the Managing Director of Sarsoli Industries, my role involves making sure customers are satisfied with our quality of services at competitive prices. Even though we produce in Lagos, we have distribution centres across Nigeria. Our focus is to encourage local production and compete with imports from Korea, Turkey, Egypt, China and India. K is one of the largest trade fairs for the plastics and rubber industry, which is organised by Messe Dusseldorf, and will host from the 16th-23rd October 2019. Why did Sarsoli choose to exhibit at the fair this year? K is the largest plastic industry fair in the world and we will not miss this exciting opportunity to showcase our products on this platform. This is our third time exhibiting at K, and we will continue to look forward to the innovation the fair continues to bring. Exhibiting at K proves that we are conscious of producing quality products that are at par with some of the leaders in the plastics and rubber industry. We also get first-hand information about new technology at the K fair. It is a beacon of technological advancements and we are excited to be a part of the culture of innovation. What benefits do Sarsoli hope to see by exhibiting at K 2019? When we first exhibited at K 2013, we were not exporting our master batches be-

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cause there was no demand for it yet. However, after our exhibition, neighbouring countries of Nigeria in West Africa started to show interest in our products. Due to this high demand, we started exporting in 2014 and we have now expanded Sarsoli Industries to Ghana and currently have an office there. As an Exhibitor at K, you have a wide range of people visiting your booth from all over the world, and you are always

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We hope to bring quality made-inNigeria products, and show the world that we are competitive with international companies. Visitors to the stall can anticipate a wide selection of master batches in different colours and shades

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surprised with the sheer volume of people that express a genuine interest in your company. After K 2019, we hope to see an even greater demand from West African countries for our products. Exhibiting at K has been instrumental in helping us expand to our target demographics across West Africa and we only want more of that. Why is it important that companies such as Sarsoli engage in international trade fairs such as K? K fair attracts visitors who are qualityconscious from all over the world. When you engage with fairs that are of high calibre like K, you place yourself within a context that is to be respected because you are among leaders in the plastics and rubber industry. K presents an excellent networking opportunity for us and it is important for companies who are in the industry to network with each other because it expands your reach and target demographics. Our presence at K shows our commitment towards constant improvement. We are dedicated to deepening our knowledge about our industry so that we can give our customers the best. What is Sarsoli looking forward to the most at K 2019? We are looking forward to meeting people who will come to our booth, which is located at K, Hall 8A booth number B41. It is always a pleasure to talk to people from around the world and to introduce them to things we are doing in Nigeria. We hope to continue to put Sarsoli Industries on the global map as a company that is qualityconscious, and to be able to strengthen our presence in Nigeria and West Africa. What does Sarsoli hope to bring to the table at K 2019? What can potential visitors to the stall anticipate? We hope to bring quality made-in- Nigeria products, and show the world that we are competitive with international companies. Visitors to the stall can anticipate a wide selection of master batches in different colours and shades. We have many varieties of CaCO3 filler master batches and additive master batches. What support does Sarsoli Industries need from the government to continue to grow? There are huge quantities of substandard plastic master batches being imported from China and India. These products are cheap due to lower quality and incentives they receive from their respective governments on exports. We request the government to make import duties on these products, which comes under H.S. code 32.06, from 10 percent to be 20 percent, so that these products become expensive to clear. This will in turn increase import duty income for the government, and will make locally manufactured products more competitive.

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Friday 19 April 2019

BUSINESS DAY

entertainment

Gidi Culture Festival spices Easter offerings in Lagos tomorrow Stories by Obinna Emelike

f you are in Lagos this Easter holiday, there are many exciting activities to enjoy; from music, theatrical performances, sports, tourism, social engagements among others. Top among the many exciting activities expected to thrill discerning public this Easter is Gidi Culture Fest; the biggest one-day music festival in West Africa. The music festival offers an unrivalled opportunity to discover the culture and energy behind the music blowing up around the world right now - a place to experience the urban youth movement through the new school. Now in its 6th year, this is set to be the biggest yet, offering platforms to share the future of African music with even more international visitors than ever before. This year ’s e dition, which holds tomorrow April 20, 2019 at Landmark Beachfront along Water Corporation Drive, Victoria Island, is promising to be different and more exciting for the visitors. There are many reasons to visit the beachfront to enjoy the music festival. There will be high tempo tunes and endless energy at the next generation and main stages of Gidi Fest

tomorrow, making the festival the biggest music show this first quarter. Moreover, this year’s edition hopes to surpass the past edition as 10,000 attendees are expected to grace the event and leaving with unforgettable experience. Of course, the venue is by the ocean shore and beachfront, which further exposes visitors to nature amid good music. As well, the organisers have grown expertise in event management after hosting five successful editions of the festival, and this year, which is the sixth edition, is riding on the success of the past five editions. Again the lineup of artistes expected to perform at the festival is rich and across different music genres. From the home base, Wande Coal, DJ Cuppy and Sarz will all be joining the likes of Patoranking, Niniola, Teni the entertainer, Moonchild Sanelly, DJ Neptune and more on the main stage. It will be exciting to see Wande Coal dominate with his debut at Gidi Fest this Easter. He offers a distinctive sound and a track record of releasing huge international hits. His collaborations include everyone from Wizkid, Burna Boy, and Patoranking - who also share the stage at Gidi Culture Fest tomorrow. DJ Cuppy, the Nigerian DJ and producer, also joins

the bill tomorrow. Representing a new generation of African women with truly global reach, she launched her music career in 2014 as the resident DJ for MTV Africa Music Awards and has since made a name for herself in the scene. Sarz, Nigerian beat maker, is another leader in the industry, whose unique and inventive approach has seen him produce tracks for the likes of Drake and Wizkid, as well as, a host of street anthems for Tekno, Wande Coal and Burna Boy. Being the man behind Come Closer and One Dance - the first song ever to rack up over a billion

streams on Spotify - his credentials speak for him. Sarz is always working behind the scene on breaking new talent and is currently pushing Niniola forward for big things in 2019. The pair will be joining forces on the Gidi Culture Fest stage in 2019. Leading the movement for the progression of urban youth culture in Africa, Gidi Fest boasts a history of booking the biggest global stars including Wizkid, Davido, Diplo and Burna Boy - while providing a platform for the most exciting Next Gen artistes for 2019 including: LAX, Zlatan, Boogey, Mich Straaw, Organya, Famous Bobson, Andre Music,

Oladapo, and Mo Believe. Others are; Flash, Barelyanyhook, Blaqbonez, Tems, Dunnie, Dami Oniru, DJ TMSKD, Goodgirl LA, Wani, Oma Mahmud, Psycho YP, DJ Krowd Krontroller, and DJ Nana. Gidi Fest and Eclipse Live, the organisers, are excited by the sheer diversity of the acts gracing the stage this year, assuring that it is going to be a big show. For them, the another reason to attend the festival is that 2019 will see a return to the organisers’ roots of promoting the future of African music with many returning artistes who have grown in leaps and bounds since the

last time they graced the Gidi Fest stage. “Expect a beautifully curated experience with a big focus on the culture around the music”, the assured. The Gidi Tribe reaches beyond the shores of Nigeria, from Africans to diaspora in Europe, Caribbean and American with African heritage. Gidi Fest aims to promote Lagos as a destination and expose the stories that captivate music fans and explorers from everywhere. The festival intends to capture the tourism experience of the visitors through #migidi, which is a journey into the Lagos experience. The project will document the experiences of some travellers from all over the world while they are immersed in Gidi Culture during their visit. As well, the Lagos State Government is happy to endorse and be associated with the Gidi Culture Festival for six consecutive years because the festival, according to the government, has been consistent with aligning with the mandate of the state’s Ministry of Tourism, Arts and Culture to use the musical arts and the creative energy of the teeming youths to further promote the image of the state as a prime destination and powerhouse of creative economy.

Facebook restates commitment to boosting Nigerian creatives, startups … As it rounds off It’s Your Facebook Lagos

acebook, leading social network, has restated its commitment to continuously supporting and investing in the development of various Nigerian communities on its platform, including startups, small and medium businesses, creators, and youths through its various empowerment programmes. The company said it is already doing this by equipping future creatives, communities, SMBs and youths with the tools to grow their network on its various platforms, namely Facebook, Instagram, and WhatsApp. It also pledged to continue its partnerships with local expert organisations to help people and businesses through its suite of expert training pro-

grammess and events. The company made the pledge on April 12, 2019 when it hosted Nigerian creatives to an informal evening of food and drinks as part of activities marking its two-day pop-up event for Nigerian entrepreneurs, tagged ‘It’s Your Facebook,’ an exclusive preview event aimed at educating users in a fun, interactive space, while also showcasing some of Facebook’s most loved products including Stories, Communities and Watch. The event which was held at the African Artists Foundation, Victoria Island, Lagos featured multiple training workshops for Nigerian entrepreneurs on how to boost their businesses, use Facebook’s platforms to generate more followers and customers, as www.businessday.ng

well as how to maximize their brands, among others. The event also featured a creators panel made up of popular comedian Bright Okpocha, aka Basketmouth,

Nkechi ‘Ink’ Eze of Asoebi Bella, and Hadiza Lawal founder of Woven Blends, a food and style blog. Giving reasons for the hosting of It’s Your Facebook

L-R: Hadiza Lawal, founder/CEO, Woven Blends; Nkechi ‘Ink’ Eze, CEO, Asoebi Bella Ltd; Jocelyne Muhutu-Remy, strategic media partnerships manager, Africa, Facebook, and Bright Okpocha, popular comedian, at the ‘It’s Your Facebook’ pop-up event held in Lagos on April 12, 2019. https://www.facebook.com/businessdayng

event in Lagos, Kezia AnimAddo, Facebook’s communications manager for Sub Saharan Africa, said Nigeria is important to Facebook, prompting it to bring its first ever pop-up in Africa to the city of Lagos. “We know that in Nigeria, we see different communities using our platform, for example small businesses that are thriving on Facebook, Instagram and WhatsApp. For our users, the event was really a chance to come down and have our experts give them advice and take them through global best practices, and help to answer their questions, whilst interacting directly. Like all of our ongoing investments, this event was about making a further stamp in Nigeria to say we are here, @Businessdayng

and we want to have a longterm impact,” she said. She further added: “Facebook’s mission is clear: To give people the power to build community and bring the world closer together, and our mission in Nigeria and Africa is no different. Nigeria is full of amazing talents and entrepreneurs, and for us, it is all about looking at opportunities and building on that using the platforms that we have.” The event was also an opportunity for the company to take users through the some of the services Facebook provides, including how to personalise their newsfeeds, carry out their security settings and lots more. The event had previously been held in Dublin, Cologne and Dubai.

Friday 19 April 2019

BUSINESS DAY

entertainment

Holiday time wasters Business etiquette

Janet Adetu

ishing you all a happy Easter and a very relaxing break too! It’s time to take a break, a well-deserved one at that. When you are over worked you long for this holiday, the thing is when it comes how well do you make use of the holiday especially a long weekend. The Easter weekend is easily one long weekend that many times is quite welcoming. The surprising thing though is that just as the holiday begins before you know it’s over, you then start to wonder what you really did with your time and finally realize that all the things you planned to do are all still pending. It does not matter how busy you are you will need to make time out of no time to reassess your position at least a quick self -audit or business audit too. Time never seems to be enough for anything, it is all about how well you use it. What are those things that have the tendency to waste our time. I have put my thoughts together and come up with some findings: Procrastination There is always so much to do and so little time to do it. There is that tendency to postpone that activity to a more convenient time where there is the belief that a longer time will be available to

succeed in it. The real issues is when that time comes you find yourself shifting the goal post to yet again another time. This can go on from one week to five years and still mission unaccomplished. The holiday period can create that atmosphere where from the start it appears that there is so much time but in reality there is no time. You ma mean to do things, plan a time but allow other things to get in the way or probably take precedence thereby never getting anything done eventually, This is easily a serious time waster sometimes difficult to tackle. The holidays always appears to be the window to set aside for pending important action plans but the same holiday may be the stubbling block just because we desire more things once the holiday is on. One visitor during the holiday time can erase any plans you may have set aside. You may decide to shift the day and time still within the holiday time frame another but once again the holiday packs in so much or too little that events begin to overtake themselves. Personally I feel better when I am under pressure to get it done that’s when I will get it didoneyou take

it seriously. Over Relaxing It is a public holiday I guess and yes you are supposed to be relaxing, totally allowed. You may decide to laze about

the house, do online shopping, watch a movie or many, be on your phone either on a very long social call or catching up with your numerous media messages, before you know it is time for lunch, then dinner and the day is gone. Without planning your day the time will surely fly by superfast. It is also fine to take a day or too just for relaxing and the remaining day or too for something more productive, but this still needs a good sense of time management. Too much relaxing will waste your valuable time and day leaving you quite unaccomplished and miserable.

‘

Time never seems to be enough for anything, it is all about how well you use it

Over Sleeping Sleeping is essential, though too much sleeping is worrying too. This is easily a time waster if you know things are pending. Even while on a short destination holiday spend some productive time being adventurous learning new things. A holiday for sleeping alone will leave you quite clueless of your environs, you may just miss out on happenings around you. Party Hopping Socials are best during the holidays for networking, mingling, keeping up with friends and family. The time spent at these parties is the concern, even when you have all the time in the world. Spending five to eight hours at one event will mean that you are that close to the celebrant. Timing your stay especially if you have others to attend the same space of time is necessary. There are occasions you may need to change outfits also on the same day to fit into the choice colour coding of the day, this will eat into you and consume so much energy if you must attend.

goal? What are your tasks for this short period both socially and formally. This does not require too much serious structure but a simple plan. It may involve a brief meeting that would have taken place had it not been a public declared holiday, make it short and sharp. In planning remember to spend time with family. Spending the entire period with work colleagues or clients shows the lack of regards for others in your life. Avoid wasting holiday time on business time. Social Media Yes social media a sure time waster when abused and overused. This simply implies being glued to your phone, Ipad, laptop for several hours on end with no reserve to stop and take a break.As much as it is a valuable tool it can impede progress in other areas. Structuring your social media time will help you be more resourceful and useful for other things. Avoid being addicted to social media that clearly stops you from being inclusive in other things. The downside is the impact on anti-socialism and the fact that it takes away from your image and total professional presence, Be very mindful and objective in your actions. Holiday IDEAS: 1. Spa Time Health Treatment 2. Read a Book 3. Write a Blog 4. Complete an Online Course 5. Try a New recipe 6. Visit Friends 7. Through a Small Get Together 8. Explore new Places 9. Short Travel Trip 10. Appreciate Loved Ones Please be kind to share your experience. Follow me on all social media platforms @Janetadetu. Send me an email at janet.adetu@jsketiquetteconsortium.com

No Planning Taking each day as it comes is a simple way of de stressing, however what is the

Movie Review – HOTEL MUMBAI

Linda Ochugbua

aving done a bit of research about the movie and what it would be about, I found out that I might like Hotel Mumbai. It was based on a true life incidence of the popular 200 siege in Mumbai; India. It was a 12 hours terrorist attack that left thousands of people wounded and hundreds dead. This attack was so serious that even the police force in Mumbai couldn’t match up, leaving everyone to fate while waiting for the special agents to arrive from Deli; the state capital. There was something really nice and touchy about this story, it was the way the story was told and relived that it looked so real, you couldn’t even tell it was just a movie. The movie brought loads of thoughts to the minds of the most people in the cinema that night, it made us scared, but also thankful for the peace we have now. The hall was packed that night with loads of people shouting and screaming all through, one would think that something was wrong in the cinema hall that night. I liked the production and the cinematography, sincerely the producer and director put in a lot of work to relive the movie and make it

so convincing. There were a few things cool about the movie like seeing the popular actor “Dev Patel” from Slim Dog millionaire, put out a perfect show and award winning Chef Hemant Oberoi “Anupam Patel” showing us exactly what it meant to serve your customers with your entire life and even if it meant giving it to up to save them. They really got me on this one and have left me thinking for days, the importance of peace in our land and how to fight to save your loved ones. The locations chosen were good and the actions scenes looked so real, the sound track also did justice to the movie, I guess my only concerns were more of wishes than complaints, I actually wanted the movie to end better with less lives being lost, but I guess I was wrong again as this was based on a true life story, and in reality loved ones end up losing their lives. So I liked how the first scene started with about 12 guys getting off a boat from outside the city of Deli, each with a small phone, ear piece and a big sack bag on their backs. We had no clue what they all had in their bags, till much later into the movie, we understood that those guys were not in town to joke around, they came for war. Each set of 3 to 4 guys all went in different directions to popular crowded areas to start the mission of the day. They went to malls, busy train stations, busy tourist sites, luxury restaurants and hotels, wherever you had loads of people they were stationed there to strike and attack at the same time to cause panic and unrest in the entire city. Once it was time each guy brought out his fully loaded AK47 ammunition and started spraying everyone in sight. It was an operation of show no mercy and spare no one in the process, and if you have to

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die, die with pleasure and honor. That night was terrible, the site was heartbreaking, as the city was flooded with blood, dead bodies on streets and everyone still alive running for shelter from the bad guys who also threw bombs at them. Some people even ran from one attack point to the next, they spared no one in sight that day and even killed the police officers. The most talked of attack was that of the famous ‘Hotel Taj”, it was the biggest hotel in Mumbai, they housed the wealthiest in the society, that night when they got it they went from room to room, killing all those who were lounged in the hotel and sparing no living thing in sight, their plan was to shoot all and then burn down the entire hotel, making sure that the city wailed and cried that night. The terrorist claimed they were fighting for their “God”, causing pain and terror in the land. You would

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need to see the movie to see how families were separated and how loved ones lost their spouses or kids; it was a terrible night and a tragedy in India, one they will never forget. Cast: Armie Hammer, Jason Isaacs, Nazanin Boniadi, Dev Patel, Angus McLaren, Tilda Cobham-Hervey Genre: Drama Director by: Anthony Maras Written by: John Collee, Anthony Mara Ratings: R (For disturbing violence throughout, bloody images and language) Runtime: 123minutes Release Date: March 29th 2019 Studio: Bleecker Street To my verdict I would score the movie an 8/10, it was a beautiful movie that told a story that helped us to relive the terrible siege occurrence of 2008. It allowed the viewers to get a better understanding and picture of what transpired that night. I loved the simplicity of the movie and the fact that the city was able to gain back what they lost and rebuild their hotels and malls again; they were strong in overcoming their fear and restored peace back to their land. It’s already obvious that I would be recommending this movie. It is definitely one to enjoy and leave the hall appreciating what peace really means to you. Feel free to review any movie of your choice in not more than 200 words, please send us a mail to linda@businessdayonline.com , also please do answer the question of the week on social media and stand a chance to win a free movie ticket. Linda Ochugbua @lindaochugbua

@Businessdayng

Friday 19 April 2019

BUSINESS DAY

Hotels

Easter beckons at some exciting domestic destinations Top BusinessDay Partner Hotels OBINNA EMELIKE

t is Easter once again and time to unwind with your loved ones or give oneself a special treat, especially after the stress and tensions of the elongated elections in Nigeria. Going by the realities of our time, visiting overseas destinations for the Easter holiday is very expensive and also points to the need to look inwards and patronize domestic destinations, which abound in the country. For once, leave the sentiments that local offerings are poor, facilities bad, service culture lacking and try a destination this Easter. As long as your expectations are moderate, you will get the most experience while being hosted in some of these destinations. Below are some of the resorts and hotels to make the most of your lodging experience this Easter: Smokin Hills Golf Resort, an emerging destination for golf enthusiasts and nature lovers in Ilara Mokin, Ondo State is a nice place to visit this Easter. On a visit, guests discover beyond the reasons the resort is ‘smoking’ with leisure. Set on 140 acres of virgin land carved out of surrounding jungle and rolling hills that emit smoke early in the morning and also at dawn, the resort offers various accommodation options, amid other leisure facilities that boost family outing and augment the premium golf offering. As well, the Fifth Chukker in the outskirt of Kaduna awaits your visit this Easter. It is an upscale lifestyle oasis of family fun, recreation, polo and culture that spread across 2000 hectares of land. On offer in the resort are 100 rooms, comprising of 3-bedroom

Four Point Hotels (Oniru Chiefatancy Estate,Lekki)

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

duplexes, 2- bedroom villas and 1- bedroom lodges. The locally themed rooms amid modern leisure facilities are among the highlights of the resort. Of course, Ibom Hotel and Golf Resort, which was awarded Best Resort in Nigeria 2017 and has the acclaimed best golf course in West Africa, is one of the few destinations that have consistently been operating at a world class level. Aside the word-class golfcourse, its spacious lay-out in a beautiful undisturbed natural environment, wellappointed rooms and chalets, swimming pool, gym, restaurants and bars will combine to provide an unforgettable experience for those who live in densely populated cities like Lagos or Port Harcourt. Families with children can enjoy around the poolside, discover nature by foot or on bike, see the golf course, relax at the riverside Marina restaurant among other attractions. But if love spa, the Amani Spa at Radisson Blu Ikeja and Clear Essence California Spa and Wellness Resort on Alexander Street, Ikoyi, Lagos, are worth visiting.

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At Clear Essence, the Balinese trained therapists use their talents to send you into a journey away from reality, and that may just be a perfect gift for your loved one this Easter. But the Amani Spa, the newest and branded spa in town, is truly indulging. Aside complementing the 94 tastefully furnished rooms at Radisson Blu Ikeja, the spa glows the skin with natural ingredients, leaving guests to wake up to goodness and stay healthy afterwards. You can also consider a visit to Nike Lake Resort in Enugu. The resort is one place that is evergreen because of the pristine environment and therapeutic impact of the natural lake resort. A few metres to the resort, you will behold with great awe the natural lake stretching over three kilometres with its incredible and rare aquatic population. On offer are 210 well-appointed and tastefully furnished rooms and suites, suitable for all taste and budgets. You can enjoy a ride on the lake with trained boat riders, or if you are more daring, you can join the local fishermen. Pictures taken afterwards will tell the story of how much you

enjoyed the Easter escape. If you are considering spending your holiday in the north eastern part of the country, then HBC Resort is a place to visit. Located in a serene and undulating area of Vom, an outskirt of Jos, the Plateau State capital, the resort is a delight to behold. It is simply leisure nestled at the top of nature’s splendour on the plateau. Its emphasis on healthy lodging ensures the air is pure while guests are attracted by the natural pull and freshness. On entering the resort, you are sure to experience a total change of scenery and a homily feel. On offer at the resort are 40 rooms among other leisure and health facilities. If you love water, then visit Inagbe Grand Resort and Leisure. It is relatively new, sparkling, inviting and exclusive. Set in-between the Lagos Lagoon and the Atlantic Ocean, the resort offers a rustic living in a lush island haven, resonating air of simple luxury and refined elegance that makes it an ideal family escape this Easter. There, you are in your own world, do things your own way, with Mother Nature as the only witness. There are many accommodation options, games, facilities and most importantly, nature to enjoy-all at pocket-friendly rates. Still in Lagos, La Campagne Tropicana Beach Resort, Ilashe, and Epe Resort also have exclusive offerings. But Ikogosi Warm Spring, Obudu Mountain Resort, Abraka Turf are among places to also visit. But if you cannot afford any of these places or you are too far from any of these choice places, then try some hotels and resorts within. Beyond seeking an escape, the hotels are cheaper during Easter because corporate activities that support hotel bookings are on hold till later the short holiday.

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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

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

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

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

Friday 19 April 2019

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BUSINESS DAY

Live @ The Exchanges Market Statistics as at Thursday 18 April 2019

Top Gainers/Losers as at Thursday 18 April 2019 LOSERS

GAINERS Company

Opening

Closing

Change

DANGCEM

N188

N189

CCNN

N16.3

N17

0.7

UNILEVER

N33.5

N34

DANGFLOUR

N10.4

N10.7

N33.75

N34

0.25

Company

Opening

Closing

Change

N177.9

N175

-2.9

JBERGER

N27.5

N25

-2.5

0.5

BETAGLAS

N58.35

N56

-2.35

VOLUME (Numbers)

0.3

BERGER

N9.25

N8.4

-0.85

VALUE (N billion)

N7.99

N7.2

-0.79

MOBIL

CILEASING CAP

ASI (Points)

30,086.31

DEALS (Numbers)

3,399.00 226,979,352.00

MARKET CAP (N Trn

1.738 11.300

Investors gain N44bn as stock market rises further Stories by Iheanyi Nwachukwu

he Nigerian Stock Exchange (NSE) All Share Index (ASI) increased further by 0.39 percent at the close of trading on Thursday April 18 as bargain hunting activities continued on the 9th floor of the Exchange. As more investors moved to Custom Street with the aim of buying into recent dip, twenty-six (26) stocks gained as against thirteen (13) losers. The All Share Index closed at 30,086.31points against the preceding day close of 29,970.86 points while Market Capitalisation closed at N11.301 trillion as against preceding day close of N11.257 trillion, indicating an increase of about N44billion. The Year-to-Date (ytd) return stood at -4.28percent.

Dangote Cement Plc led the advancers list after its share price moved from N188 to N189, adding N1 or 0.53percent; while Unilever Nigeria Plc followed, rising from N33.5 to N34, up by 50kobo or 1.49percent. Mobil Oil Nigeria Plc de-

clined most, from N177.9 to N175, losing N2.9 or 1.63percent, while Julius Berger Nigeria Plc followed after its share price declined from N27.5 to N25, losing N2.5 or 9.09percent. “As the ASI continues to recover lost ground, we

foresee a positive open to the next trading session. With the expectation of the release of positive earnings and as investors begin to regain confidence in the market; we should see market players continue to take position. In our opinion, prices at current level still present opportunities for medium to long term investors”, equity research analysts at Vetiva Capital Management said in their April 18 note. The volume of stocks traded increased by 5.08percent, from 216.01million to 226.97million, while the total value of stocks traded decreased by 46.12percent, from N3.22billion to N1.73 billion in 3,399 deals. The Financial Services sector led the activity chart with 168.69 million shares exchanged for N1.291 billion; followed by ICT with 13.94 million shares traded for N5million.

Network International lists on London Stock Exchange

ondon Stock Exchange welcomes Network International, a leading enabler of digital commerce across the Middle East & Africa (MEA), to the premium listing segment of its Main Market. The company has raised £1.1 billion ($1.4 billion), valuing the company at £2.2 billion ($2.8 billion) and is the largest MEA IPO listed on any exchange globally since 2014. The listing is also the largest ever technology IPO from a MEA-based firm globally and the largest technology company to list on London Stock Exchange since 2015. Simon Haslam, Chief Executive Officer, Network International said: “I am delighted that Network International will join London Stock Exchange through a Premium Listing on the Main Market, marking an exciting new stage in our journey. Over the

past few weeks we have seen significant support from the investment community and I would like to take this opportunity to welcome our new shareholders, including Mastercard, onboard. I would also like to thank all our employees, whose hard work and dedication have got us to this point. I am confident that Network International is extremely well positioned for future growth with unique scale in the world’s most underpenetrated payments markets. The Middle East and Africa are at an early

stage in the shift from cash to digital payments and our new listing on London Stock Exchange will enable all new shareholders to benefit from this structural growth opportunity.” Robert Barnes, Global Head of Primary Markets and CEO Turquoise, London Stock Exchange Group: “We warmly congratulate Network International on its listing and are proud to welcome the largest MEA tech IPO on record to London Stock Exchange. With more than 140 companies

from the region raising a combined $36 billion in equity capital on our markets, London continues to be a strong funding partner to dynamic MEA companies seeking to attract international investment. Network International’s IPO also adds to a fast-growing community of tech companies choosing our markets to support their growth journey, reinforcing London’s ability to provide access to sources of liquid, long-term international investor capital.” William Vereker, Prime Minister’s Business Envoy: “I’m delighted that Network International has chosen London for its landmark listing. London is a thriving hub for the tech community who benefit from joining an ecosystem of entrepreneurs, advisers and investors, enabling leading companies across the globe to secure funding, scale-up and grow.”

Global market indicators FTSE 100 Index 7,459.88GBP -11.44-0.15% S&P 500 Index 2,901.39USD +0.94+0.03% Generic 1st ‘DM’ Future 26,539.00USD +111.00+0.42%

Deutsche Boerse AG German Stock Index DAX 12,222.39EUR +69.32+0.57% Nikkei 225 22,090.12JPY -187.85-0.84% Shanghai Stock Exchange Composite Index 3,250.20CNY -12.92-0.40%

GTBank gets shareholders’ nod to pay final dividend

he shareholders of Guaranty Trust Bank Plc at its 29th annual general meeting (AGM) held on Thursday April 18, 2019 in Lagos authorized the bank’s directors to pay final dividend of N2.45kobo per share. It had paid interim dividend of 30kobo per share, bringing the total dividend paid for the year 2018 financial year to N2.75kobo. Also at the meeting, the shareholders received and adopted the bank’s audited financial statements for the year ended December 31, 2018 and the report of the directors, auditors and statutory audit committee thereon. The bank’s results in the review financial year show positive performance across all financial metrics and im-

In addition, coverage ratio for NPL stood at 105.1percent and Capital adequacy ratio remained very strong, closing at 23.4percent despite the implementation of IFRS 9. On the backdrop of this result, Post Tax Return on Equity (ROAE) and Return on Assets (ROAA) closed at 30.9percent and 5.6percent respectively. “We are firmly on track towards executing our strategy, achieving our vision and fulfilling our purpose. Given the outlook of improving macroeconomic conditions, the bank remains resolute in taking advantage of these opportunities to growing earnings, improving profitability and delivering returns to our esteemed

proved strategic positioning of the brand. Gross earnings for the year grew by 3.7percent to N434.7billion from N419.2billion reported in the December 2017. Profit before tax stood at N215.6billion, representing a growth of 9.1percent over N197.7billion recorded in the corresponding year ended December 2017. The Bank’s customer deposits increased by 10.3percent to N2.274trillion from N2.062trillion in December 2017, however, loan book dipped by 12.9percent from N1.449trillion recorded as at December 2017 to N1.262trillion in December 2018. In view of the above, the Bank closed the 2018 financial year with Total Assets of N3.287trillion and Shareholders’ Funds of N575.6billion. In terms of Assets quality, non-performing loans (NPL) ratio and Cost of Risk improved to 7.3percent and 0.3percent in December 2018 from 7.7percent and 0.8percent in December 2017 respectively.

shareholders,” said Osaretin Demuren, chairman, GTBank Plc. She noted that as the bank continues to consolidate its leading position in Nigeria’s financial services sector, “we are also making progress in growing our business across select, high growth Africa markets. We believe that our commercial success depends on the prospects of Africa and we, in turn, play a significant role as a catalyst for her growth.” Segun Agbaje, Managing Director/CEO of Guaranty Trust Bank Plc said, “In 2018, our focus on staying nimble, strengthening customer relationships and driving our digitalfirst strategy paid off. We successfully navigated the pressures of our challenging and radically changing business environment, recorded growth across key financial indices and reaffirmed our position as one of the best performing and well managed financial institutions in Africa.”

Friday 19 April 2019

BUSINESS DAY

BOOK SERIALISATION

W H Y N OT Citizenship, State Capture, Creeping Fascism, and Criminal Hijack of Politics in Nigeria

Continued from Thursday

Chapter VI The Gideon §project Finding Grass and its Roots ‘area boys.’ I needed to adapt to it without losing sight of what was important and minimising the risk inherent in going afield; inevitable in my governorship campaign to carry out reconstructive surgery that delivered my people from the misery of a badly governed state. This needed to be done and to raise the quality of public conversation so the people could profit from the education and from there be motivated to make superior choices in electing people who can better help advance the common good. I already experienced the challenge of being grassroots and applying knowledge to solving problems. In January of 2012, the Federal Government announced what was ostensibly the deregulation of petroleum product prices. Though, from conduct in the preceding year, it was really an opportunity for rent seekers acting as petroleum marketers, to build up more humongous margins which they typically shared with public officials in the petroleum sector. Even though I had always argued that the so-called petrol subsidy only put cash in the pockets of an urban elite – who used their cars with little care for the value of where they go to, simply because petrol was cheaply priced in a countr y that could hardly manage the discipline to keep its refineries operational – I knew that to term the government’s disingenuous reduction of subsidies ‘reform’ would be unhelpful. It was obviously a move designed to raise money for an “election war chest” by the party in power. I opted to be part of ‘Occupy Falomo’ as part of the protest movement against the deregulation knowing that some would see it as abandoning deregulation and others will celebrate it as liberating neoliberal me, Pat Utomi. The many middle-class people in the camp that say the politicians steal all the money and this so-called subsidy is all we guess will say ‘now you see the light.’ So how do you take on a very nuanced issue like that to the grassroots without being seen as a ‘grammar speaker’ in an environment that seems to despise

rigour in thinking as ‘theory’ or ‘grammar ’ to the grassroots. In other words, how to mingle and show connectedness to the people without losing touch of what optimises the well-being of the less privileged and educating them on how to make improved choices. This is done with reasoned explanation in a way that those limited in endowment and exposure can understand and take ownership of a preferred policy. My preparations to enter the race began with trying to establish if this combination of touching and at the same time elevating the grassroots was possible. The path I chose was consulting with stakeholders. I chose to do it at three levels; at one level with the community and opinion leaders inside and outside of the party; touching the bottom of the pyramid in markets, schools and on the streets; and establishing what the party chieftains working patron-client networks often called “Party structure.” To my mind a Rescue Delta Project had to be about elite consensus on the apparently obvious desperate need to change how politics affected the wellbeing of the people. That thinking was quickly corroborated by one of my early calls on noted pharmacist, Chief P Enebeli. We had both served on a committee set up by former Governor Emmanuel Uduaghan on the flooding that wreaked havoc on many

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I braced myself for what could be stomach churning discoveries as I consulted in Abuja. To stay focused on my goal of creating a new path of service that is people centred rather than one that uses the people as excuse for pursuit of power for other uses, the apologetics of power quest I knew I had to navigate with care www.businessday.ng

ordinar y p e o ple eking out an existence along the banks of the River Niger. When I confided in him that I was digesting pressures to run, he suggested a good approach would be to recognise the PDPdominance of Delta State politics and tone down the partisanship with a special reaching out to some PDP leaders, many of whom were frustrated with how poorly things had worked out. Nonetheless, I had to start w ith the AP C leade rship. I quickly made a list of those I should reach out to in the APC at both the national and state levels. They included the national leader, Bola Ahmed Tinubu; founding Party Chairman, Chief Bisi Akande; Edo State Governor, Godwin Obaseki; APC governors from the southwest (keeping up the old west solidarity); the Secretary to the Government of the Federation, Boss Mustapha; and Party founding fathers like Audu Ogbeh as well as even the President with whom I had shared platforms in the struggle. At the state level of

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the Party I set myself to engaging with the State Executive of the Party, the Gubernatorial candidate in the 2015 elections, O’tega Emerhor, Party chieftains; the late Spanner Okpozo, Frank Kokori, Hyacinth Enuha and new joiners Great Ogboru and Victor Ochei who had just migrated from Labour Party and Accord Party via PDP respectively. I would commit more to the men on ground in Delta State in order to reach out to, feel and touch those people whose pain became mine after I had visited the camps for internally displaced people whilst serving on a flood committee assignment for the state government. I knew I was selected to serve onthat flood-displaced people’s intervention committee chaired by a Supreme Court Judge because there was a need to communicate integrity in the use of the resources deployed for flood relief in affected states, but when I visited IDP camps, I was so pained by what I saw that I committed the Centre for Values in Leadership which I founded, to an initiative for flood relief. I

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would set up collaboration with several private sector players to provide relief to three states, Delta, Adamawa and Anambra. In pushing several companies on whose boards I served on (such as Nagode Industries) to make significant contribution of products to relieve the displaced, I identified constructive interventions that could be more valuable if they were proactive but realised that they could not be implemented without policy support. So, when I began to accept the idea of running for office, in my clear rear-view mirror was the helpless sense I saw in many of the women in those camps I had visited and the sense of gratitude for the little that was given to them. So, who were the c o m mu n i t y l e a d e r s that connected to these gifts that looked like the wretched of this earth? It was consulting with them that would mark the core of my thrust towards the grassroots; but I had to start at the top. This play-byplay chronicling of the evolution of mind and action is offered to present an account of how sheer will, fused with emotions in a struggle to do right and good when the easy choices may make it nice and easy but history is left to hold a person in contempt for dereliction of duty. It is not easy reporting but may serve well for our unfolding order. Starting from Abuja At the time of my decision to explore running I was burdened by a number of things which consulting would help me put in better context. One such concern was a sense that many profess love for Nigeria but in my experience the patriots were few, very few. In some ways, Nigeria was like the kindly mother who gave so much to many unworthy children and for reward they gang raped her to a slow painful death whilst mocking her. I braced myself for what could be stomach churning discoveries as I consulted in Abuja. To stay focused on my goal of creating a new path of service that is people centred rather than one that uses the people as excuse for pursuit of power for other uses, the apologetics of power quest I knew I had to navigate with care. That focus I realised may require that i cover my nostrils to pick up the cherry that has fallen close to a mountain of faeces. So why do this? If

Friday 19 April 2019

BUSINESS DAY

BOOK SERIALISATION it involves so much trouble, why take the trouble? As already indicated, most people around me, top of which was my wife, did not like the idea. She has always jealously guarded our peace and privacy. As a dutiful spouse, she endured my forays into public life and stood by me, but I learnt years before that she would rather live a quiet life away from public attention. When we lived in a sprawling company house during my years in industry, our home had been a Grand Central Station. Every group I was associated with from alumni groups to church groups and fellowships met regularly at our home. She was always on her toes, counselling the many who brought their problems to the house and praying with those who desired such, always with a smile. I thought she loved it until I decided to leave my position in industry and we had to move house. We had built a considerable sized house as our new destination of domicile, but security was challenged in the then sparsely populated Lekki corridor. We, therefore, chose to avoid moving there even though our friend and mentor, the Director-General of the Nigerian Stock exchange, Hayford Alile, had moved there with his family. Instead, we moved to more modest accommodation in Dolphin Estate. The smaller space meant much less traffic. She became so happy in the new place that as Lekki became more secure and my senior “old boy”, Alile, asked when we would move in, she nicely resisted. So, we lived in Dolphin for nearly 15 years while the eight-bedroom house in Lekki was unoccupied. I knew she would not want a return to public life after my 2007 run for President. She would also have support from my siblings who insisted that if our mother had not passed away two years before the 2007 run, I would not have put her through the stress of the terrain of Nigerian politics. Nonetheless, I knew that my wife had a barometer for the pain that I felt for the Nigerian condition. She understood the guilt I felt about the elite culture that looked to building the individual even if at the expense of others who share in a problem. Here, very common problems are being resolved in the me, myself and I, way which was, ‘If the roads are not motor-able then buy an SUV; if security is poor build your personal army to guard your home,’ etc. My wife’s final position would invariably be; have you asked God if this is what you should be doing? And I always made the effort to reply, but how clearly I hear, is another matter. I had faith strong enough to act in a direction conscience would suggest was a path God would desire, but certainly I am not

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Do you think this effort is worth the trouble? Is it not easy to see that the powers that be do not really care and that the Nigeria project is beyond salvage?” Before I could respond he concluded. “If I were you, I would just focus on making as much money as possible to take care of myself and my dear ones one of those God speaks to the way I hear some people report it. One question I often raised in prayer is would God who is so just, who has assured His creatures that His thoughts for them were for good and peaceful existence be at home with the self-inflicted misery in most of Nigeria and particularly a highly endowed state like Delta? Why then would it not be in His will that concerned and honest people tackle this misery? One that was clearly the result of poor capacity and greed on the part of a few determined to dominate in order for them to abuse the commonwealth. What faith and reason pointed me to in listening to God was that he would want men who love him to show the light to a path different. They should salt their space of His earth as part of the rent they pay for the certificate of occupancy He issued for that space in creation. Then there were the friends and relations who were frightened to death of the risk to life and limb posed by opposition to the cabals, cult men and criminal elements that dominate Nigerian politics. They would ask, ‘So how does this God, whose voice you are listening out for not recognise the danger you are susceptible to whilst trying to do what you think is His will?’ I politely respond that God did not guarantee you will escape physical harm from the violent of the earth. Did He not urge that you fear not those who can harm the body but can do nothing to the soul? Surely that God was alive and saw when Thomas Moore was guillotined. What mattered more was the fruit of his martyrdom. All true civilisation has been built on the blood of Martyrs! While faith and conscience which provide the vision to see www.businessday.ng

and feel the suffering of people other than oneself are gifts to be cherished, reason dictated consulting and understanding the mind of the cabals, godfathers and institutional kingpins helps to assess the cost of this strategy. This strategy is as against, for example, the path chosen by Paul Kagame, to lead a bush war of liberation in Rwanda. Reason brings forward the unusual worry that there is not enough of an active constituency willing to bring about a better society. The general impression I got talking to peers is that most had given up on Nigeria. They were either part of the mother rape, thought that the country was beyond salvage, or feigned neutrality in the hope that they could survive and maybe even thrive in their comfort zone. Nigeria’s state was good evidence of how a country looks and feels when its best and brightest have given up on it. Is it not possible to rekindle the hope of people who had hitherto given up? My thinking on this track took a beating on my way to Abuja to formally begin consultations. I ran into a gentleman who had reminded me several times before that Nigeria was gone and beyond salvage. In 2007, Victor Ogagwu met me on a flight as I did my rounds of campaigning. With a very sarcastic smile he commended my patriotism and the vision of Nigeria I was putting forward. Then he rather slyly posed a question. “Do you think this effort is worth the trouble? Is it not easy to see that the powers that be do not really care and that the Nigeria project is beyond salvage?” Before I could respond he concluded. “If I were you, I would just focus on making as much money as possible to take care of myself and my dear ones.” From time to time our paths would cross and he would point to a few examples of how Nigeria was proving his point. After the APC primaries of September 30, 2018, I came to Abuja to submit my protest to the Party. I decided on having breakfast at Protea Hotel Asokoro and there in the restaurant was Victor. He let out a triumphant chuckle and exclaimed, “I warned you 12 years ago that Nigeria was not worth the trouble! Had you concentrated on making money instead of all the trouble you give yourself in the hope for a better Nigeria, imagine how wealthy you would be today.” I usually had a sharp retort to such comments, but Victor had successfully exhausted me. Even though I did not agree with him I was too tired to be logical. He had his point that it was hard to see logic in how the so-called powers that be act in Nigeria. This was why faith and reason had to come together in a peculiar way in exploring this project of running for Governor. In many ways, it did not make

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sense to go into what was a combination of a lion and devil’s den because the generally accepted principle is that it is a zone where indecency and willingness to pass the ‘Adedibu’ test were assurances of success. The strong man of Ibadan politics was reputed to ask: “Can you lie and swear on the Holy Bible that the statement was true…” That was the litmus test of readiness for politics. Then follows the question of whether you could pull off your shirt and get into a fight in the marketplace. The ultimate – can you kill another person on account of an election contest? I was sure I would do none of those. The question then is; so why run? I would have flunked the Adedibu test for fitness to be a politician. They say why bother to run if you cannot pass the Adedibu test, but I say, why not! So, why not contest to save others from having to respond to tomorrows Adedibus in the affirmative? I had spent most of my adult life preaching about the sacrifices necessary to change things and advance the common good. So, why not? I chose then to model the run on the effort of one of the judges of Biblical Israel and called the project the Gideon Project. It was simple and straightforward for me. If God wanted to save Nigeria from the slippery slope down into the abyss and he wanted me to be part of the instruments he would use then He should show that it was Him and not the instrument making things happen as He did with Gideon. To bring some reason to this duty of faith, it was important to get a sense of how the powerful would be disposed, now that the Adedibu test was flunked with swag. It may be strange that when you look at the Sustainable Development Goals (SDGs) you find that Nigeria is always close to the bottom, you check out the ease of doing business indicators and Nigeria is falling further behind, just as it is doing with the index of human freedom, the Transparency International

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I warned you 12 years ago that Nigeria was not worth the trouble! Had you concentrated on making money instead of all the trouble you give yourself in the hope for a better Nigeria, imagine how wealthy you would be today.

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Index that measures corruption, and the UNDPs Human Development Index (HDI). One then wonders why the big men of the country seeing such performance indexes should hold up their heads walking about with chips on their shoulders and cruising in their motorcades to yet another praise receiving event. I long concluded that in Nigeria shamelessness and sycophancy had embraced each other and were now doing the tango. How can this exist in a democracy? Well it is simple for me; the public sphere is mush. Quality public conversation hovers around hauiling ethnic epithets across WhatsApp groups and Facebook pages and airing critical comments about a reality considered disgraceful to anyone not afflicted by “Groupthink”. The classic we versus them groupthink scenario being how Irving Janis identified smart people falling into collective error in the Bay of pigs crisis in Cuba during the Kennedy era because all agreed with someone who was usually right. Not to run afoul of the accepted norm that you should be cheerleader for everyone in power, many who should know better but who choose not to speak truth to power elevate the culture of silence to a high Art. I met one of my friends, an executive in banking on one of my journeys to Abuja who had taken this path. When I told him in the protocol lounge of the airport in Lagos that I was considering a run for office, he immediately appeared uncomfortable to be seen in my company. I could not resist asking him if he did not feel ashamed of the Nigerian condition and the fact that many of his well-paid general managers in the bank where he was chief executive were quitting their jobs and emigrating to Canada. He looked right, then left and in hushed tone said “I don’t know what these people are doing to Nigeria.” I am not sure he expected what came next from me. I said, not speaking to him personally, but obviously including him, with no apologies : when you live with no shame in a house of shame because you think you got some fame, the laugh is on you, but you do not know. They may humour you out there in the world but behind you they ridicule your “shithole” countr y. It takes a Trump to speak it as they s e e i t, bu t p r i m e m i n i s t e r s and monarchs will laugh at your “fantastically corrupt” countr y. And if you are not man enough to try and change things, the burden will weigh d ow n you r ch i l d re n . I f you cannot assure your children that their lifetime will be better than yours, your swag ain’t worth shit, shithole or no shithole. Continues on Monday

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Friday 19 April 2019

BUSINESS DAY

CULINARY DELIGHTS The Warehouse Kitchen – The Best seafood pasta in Lagos?

he Warehouse Kitchen is a new restaurant conveniently located in on Admiralty Way in Lekki, near Fidelity bank. Upon entry at The Warehouse Kitchen, I immediately noticed the sparkling modern lighting that enhances the bright open, yet the cosmopolitan design and feel on the inside. Everything about this space is unique from the cow head door and the wooden floors which really makes you feel like

restaurant. Bada has the seafood pasta and he says that it is the best seafood pasta he hs has in Lagos… and for someone who eats out regularly, that is a big statement to make… I was intrigued to know what made this the ‘Best seafood pasta in Lagos’. I mean that a very bold statement… He says this bold statement is because of how blended and balanced the ingredients and flavor’s mixed together. @lehlelalumiere Lehle works at BusinessDay in Strategy Innovation and Partnerships, she is also a financial inclusion advocate and radio anchor. Originally from Senegal Lehle has a passion for food and culinary experiences and enjoys discovering new restaurants in Lagos.

you are in a modern warehouse. I must say I was apprehensive about the name of the restaurant because it leaves a lot to the imagination…. but was pleasantly surprised by what I saw inside. On this occasion, I went with my friend Akintunde Bada who is the Country director of VIACOM in Nigeria. He suggested this new place as a location for a mid-week catch-up, and I was more than happy to try it out. The Warehouse Kitchen has beautiful floor to ceiling windows which I find very visually appealing, especially in modern buildings. Everything about this space is unique from the cow head door and the wooden floors which really makes you feel like you are in a modern warehouse where you can really relax, eat and have a good time. The Warehouse Kitchen has two floors both with outdoor sitting areas. The outdoor sitting area on the ground floor comes with a large screen for those days when you want to catch your favorite football game as you eat and drink. There is also an area to play pool for those who enjoy the game. We wanted to sit outside but it has been very humid in Lagos, so we decided to stay cool in the air-conditioned cozy

Bada is a stand- up gentleman so if he says it’s the best seafood pasta in Lagos, I believe him. On this day, I had what some food lovers call “breakfast for dinner”. It was one of those days where work got the best of me and I skipped breakfast, which is the most important meal of the day. So, I ended up having a traditional English breakfast with a sunny side up egg with a side of beef sausages, toast, beans, and tomatoes at 6.3o pm. I was thoroughly satisfied with my meal, although my dinner companion did not comprehend the “breakfast for dinner’ concept…. Not many people do but it’s a common practice. The menu at the Warehouse Kitchen is rich and while the feel of the restaurant is very Western, the menu incorporates various African delicacies such as the African breakfast which comprises of either yam or plantain with egg sauce. You can get this for N4500. There is also grilled tilapia, fish, peppered snail, lamb chops, Akara and pap and much much more. There is also a great variety of drinks for those interested. I recommend this restaurant for a hang out with friends, family, sports nights or fun dinner with loved ones.

RATING 4 English breakfast N4500 Seafood pasta N7500 2 Pina Colada Mocktail N7000 Total N 19 000

Contact: https://www.thewarehousekitchen.com

To make recommendations or for collaborations please send an email to lehle.balde@businessday.ng www.businessday.ng

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Friday 19 April 2019

BUSINESS DAY

NEWS Despair drives search for cheap high as... Continued from page 4

million of the population who the National Bureau of Statistics (NBS) categorises as employed Nigerians in 2018. Effortlessly, they chair the league of over 20.9 million unemployed Nigerians and over 14 million Nigerians who abused drugs in the last one year, according to the National Survey on Drug Use in Nigeria. Drug abuse was most prevalent in the Southwest from the activities of highness-craving 4.3 million people, marking 22.4 percent of the population. Cannabis, the most abused substance, recorded about 10.6 million abusers in 2018; opioids 4.6 million, cough syrups 2.4 million, and cocaine 92,000. According to the report, tranquilisers and sedatives, prescription, stimulants, inhalers and amphetamines are other drugs commonly abused in 2018.

Accessibility under ban a big business for underground dealers If there is something the government’s clampdown on anesthesia has achieved, it is that Nigerians without doctor’s prescription cannot access these drugs over the counter. But that does not apply to the real abusers who are fed by a thriving cartel of under-dealers who make access possible with the least restriction. When BusinessDay visited some pharmacies into both wholesale and retail sale of pharmaceuticals to purchase any available brand of Flunitrazepam, they denied selling, saying it was against the law to sell. Health Plus, a leading pharmacy, required a doctor’s prescription before access. But Chijioke, a member of the Lagos State Association of Medicine Dealers, who gave only his first name for security reasons, confided

in BusinessDay that the sale is run in a coded manner between recognised dealers and retailers to avoid blowing their cover. “We sold before but we are usually disturbed by both our association and NAFDAC. They have asked us to stop selling anaesthesia. But some people still sell secretly only when they know the person buying,” Chijioke said. “They have coded dealers who they sell to. Even if the dealer sends somebody, they will not sell to that person. You can only get it with a prescription. So, the connection is uptight in order not blow their cover,” he said. On the streets of Akala, these drugs fly in the open with unimaginable speed of accessibility. There are outlets that purely source them in addition to several other drugs. The dealers within the area operate with freehand and are in fact protected from harm in the event of faceoff with regulatory officials and crime control patrol.

Slim hope of cure Terribly, Nigeria has a shortfall in the capacity to rescue its drowning youths. In Lagos, for instance, the Drug Addiction Unit of the Federal Neuro-Psychiatric Hospital, Yaba, can only treat 400 core cases of in-patients and at least 20,800 out-patients yearly. Half of these patients suffer drug-related problems, meaning that the hospital can only manage 0.5 percent of the Southwest need to address psychiatric disorders. The challenge before Olajumoke Koyejo, a consultant addiction psychiatrist at the hospital, remains the exponential increase in number of patients presenting, 90 percent of them youths. “Right now the drug unit has a very long waiting list of patients waiting to enter for treatment and we can’t even cope with the number of people that have problems anymore,” Koyejo explained. “Our male ward takes 70 patients and our female ward

A young lady in Mushin shows her tongue after taking Rophypnol. It’s the fad among some youths to mix Rophypnol with fruit juice.

of tax incentives for firms. Although the Fund recommends a focus on “priority” expenditures, they do not clearly spell out what these are. We are only left to infer that they are referring to health, education, energy, infrastructures and human capital. The Fund also recommends a tight monetary policy so as to fight inflation and keep prices on a more even keel. The IMF also recommends policies to enhance resilience by banking institutions through recapitalisation, revaluation of asset quality and phasing out of forbearance by the central monetary authority. They also recommend addressing structural challenges and bottlenecks impeding diversification of the economy, including addressing issues of governance, institutional performance and enhancing efficiencies in services delivery and improving performance of sectors such as education, health and financial inclusion.

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I agree with them on the urgent need for government to implement institutional reforms to remove the bottlenecks impeding economic freedom and the operation of a free market economy The latest IMF report casts a searchlight on the dynamics of Nigerian demographics. Given current trends, by 2050, our population will attain the 400 million mark, overtaking the United States for the number three position behind China and India. The biggest worry is that, given current macroeconomic path-dependencies, we are in no position to sustain such www.businessday.ng

over 3,000 drug-dependent people. Jonah Achema, NDLEA’s principal staff officer on public affairs, said the abuse grows difficult to contain as rise in population sets the tone for a corresponding rise in other components of social behaviour such as in deviance and criminal activities. “We are aware that all manner of concoction is going on and we have embarked on massive awareness campaign targeted at all categories of people including students, out-of-school and in worship places,” he told BusinessDay. “New forms of drugs keep unfolding. There are some drugs that have not been classified by the United Nations. They include Tramadol, Codeine, Zakami harvested in the bush, nail remover and Goscolo. In fact, people go to the toilet to sniff faeces,” he said. But Koyejo said for effective drug control, the macro economy has to be corrected. This, she said, has to do with the culture and the bigger environment. Micro environment which is the immediate environment of that person has to change. The school, family, faith-based organisation and peers have to have things that will manipulate those things to have an effective outcome. Policies on drug distribution in Nigeria also must be uptight. “The borders are so porous that we have heard of 30 containers in the port with only eight got to NAFDAC. If containers can fly from the port and those containers have Tramadol, of course they will get to the market,” she said.

The Pope and the warlords from ...

The IMF report on Nigeria: Critique of ... Continued from back page

takes 30. We are full to the brim at all times. We receive an average of 100 patients every Tuesday in our out-patient clinic and some patients even go to other clinics. Out of like over 500 patients we see in outpatients, 150 to 200 are drug-related. So there is a big problem,” she said. Koyejo said there has not been a study linking Rophypnol to mental disorder the way Indian Hemp has been established. But she noted that since drug abusers tend to explore several options simultaneously, there is a propensity to develop disorders, especially psychosis. “A time comes when they don’t get the high they are getting from Rophypnol, so they add some other drugs and that’s where the problem is. People who have family history of disorder usually come down faster. Those who are psychotic have very bad complications and people that don’t have at all might develop psychosis with the use of Indian hemp,” she added. Regulation There is a general belief that regulatory laxity is among factors fuelling drug abuse in Nigeria. But the National Drug Law Enforcement Agency (NDLEA), saddled with the responsibility of eliminating the growing, processing, manufacturing, selling, exporting, and trafficking of hard drugs, thinks otherwise. The agency said it relies on a combination of aggressive campaign, punitive measures and psychotherapy counselling to reduce the menace. In 2018, it arrested about 10,000 suspected drug dealers. There is hardly any year it does not face the task of counselling

Continued from back page

a large population. For one thing, the budget deficit has been on the rise, from 1.5% of GDP in 2016 to 3.6% in 2018, and continuing to rise. The incidence of poverty continues to rise, placing Nigeria in the unenviable position of being the current poverty capital of the world. I agree with them on the urgent need for government to implement institutional reforms to remove the bottlenecks impeding economic freedom and the operation of a free market economy. But I do not believe a tighter monetary policy should be pursued during a fragile recovery because it goes against received wisdom in monetary theory. I also believe that instead of focusing on increasing taxes and squeezing businesses further, the taxman can gain more mileage by widening the tax base and capturing many of those who remain outside the loop. From available evidence, the current tax net captures a mere 30 percent of the taxable population. We can do better.

vide the region and impose Islamic law. In 2005 a comprehensive peace agreement was signed between North and South, promising independence for South Sudan within six years, and promising not to impose Islamic Law on the territory. Then in 2011 there was a referendum, in which the people of South Sudan chose to secede from a ‘unified’ Sudan. Barack Obama, President of the United States, affirmed Washington’s intention to recognize South Sudan as an independent state. And so, on 9thJuly 2011, South Sudan became an independent nation, with Salva Kiir Mayardit as President, and Riek Machar as Vice President. A few days later, it became the 193rd member of the United Nations, and was admitted to the African Union. Sadly, a typically African scenario would play out shortly. In July 2013, President Kiir

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suddenly sacked his whole cabinet, including his Vice President. Predictably, within a few months, deadly clashes erupted – principally between the ethnic supporters of President and Vice President. South Sudan has known no peace since. Thousands of citizens, mostly civilians, many of them women and children, have been killed. A million people have been displaced from their homes and dislocated from their normal lives. The African Union and other well-meaning people have tried to mediate. A peace accord was signed in 2014. The ensuing peace did not last one month. Under the threat of UN sanctions, President Kiir signed another peace accord with Machar in 2015. Soon there were reports of massacres both by ‘government troops’ and ‘rebels’. Kiir issued a decree dissolving the country’s ten states and creating twenty-eight new states. The ‘rebels’ accused him @Businessdayng

of violating the peace accord. 2 0 1 6 . K i i r re i n s t a t e d Machar as Vice President. A week later, he removed him again, and replaced him with another man. Nothing was working for the hapless people of South Sudan. Almost half of the population were in need of food assistance. The latest arrangement is that Kiir is still President, and Riek Machar is back as his Vice President, along with a lady Rebecca Nyandeng de Mabior. The AU, the UN and several world leaders have threatened and cajoled the leaders to bring peace to South Sudan. Nothing has worked so far. Perhaps the Pastor of St Peter groveling at their feet, kissing their shoes and invoking the name of the Christian God they purport to worship will finally touch the hearts of these hard-hearted, unyielding people, and finally motivate them irrevocably to bring peace to the long-suffering masses of South Sudan, as only they can do. Perhaps!

Friday 19 April 2019

BUSINESS DAY

NEWS Nigeria’s domestic debt stock growth slows to 1% on DMO’s externalisation policy David Ibidapo

ear-on-year growth in Nigeria’s domestic debt stock slowed to one percent in 2018, its lowest rate in the last five years, totalling N12.77 trillion ($41.6bn) in value, government data show. This follows the government’s policy of reducing its borrowing from the highcost domestic debt market in preference for low-interest Eurobond market. Data obtained from Nigeria’s Debt Management Office (DMO) indicated that in Q4 2018, domestic debt stock increased marginally by 4 percent from N12.28 trillion in Q3 2018. This raised Nigeria’s current debt stock to about 10 percent of 2018 GDP. The increase by N487 billion in the fourth quarter was dominated by N331.27 billion issue of promissory notes to settle arrears due to oil marketers and sub-nationals. According to a report by FbnQuest, the investment arm of First Bank of Nigeria, “subject to verification by the National Assembly, pro-notes and bonds totalling a further N2.4trn will be issued to clear late payments to contractors, non-oil exporters and other creditors.”

During the period, the rise in total debt stock also came from a 100 percent increase in the issuance of FGN Sukuk instrument, which amounted to N200 billion against N100 billion in the previous quarter. Current trend in the debt stock profile of Nigeria has revealed a slowdown in the demand for fund sourcing by the Federal government of Nigeria (FGN). While domestic debt stock growth slowed year on year to one percent, external debt stock slowed to 34 percent from 66 percent in 2017. It is evident from chart that the burden increased substantially in both 2016 and 2017. The growth has since slowed as a result of the FGN/ DMO policy of externalisation (deploying Eurobond sale proceeds to pay down Treasury bills). It is said that the debt stock/GDP ratio, while popular with the ratings agencies and financial media, is of limited relevance because debt obligations are serviced by the government and not the broader economy. “A more challenging ratio would be the proportion of FGN revenues required to service the debt (currently around 60%),” FbnQuest stated.

Professionals see machine learning becoming reality in near-future CHUKA UROKO

ncreasingly, machine learning or artificial intelligence (AI) is becoming a reality such that over 60 percent of those in the accounting profession see it offering huge opportunities for better business intelligence across a range of activities carried out by accountants. Research reveals that machine learning is becoming more relevant for many organisations as the hype increasingly becomes reality, though some professionals caution that adopting machine learning needs to be based on legitimate business need rather than just wanting to be seen as using AI. Association of Chartered Certified Accountants (ACCA), however, sees ethical challenges ahead, explaining that accountants need to align professional competence

and due care with AI and machine learning. A global research amongst nearly 2,000 ACCA members in 111 countries reveals that a third of accountants currently see AI as all or mostly hype, while nearly 60 percent believe that, in three years’ time, it will become a reality. The association in a new report sees machine learning as being more science than fiction which highlights how new tech developments have a massive potential for the accountancy profession. The report focuses on machine learning, which is the ability of computers to ‘learn’ and make decisions or predictions based on analysis of large sets of data. “Machine learning is a critical area of development for accountants. Looking ahead, it will be crucial to understand its value and benefits, as well as the ethical

challenges it presents. In all this, the starting point has to be a legitimate business need with a clear understanding of what it can bring to the organization”, Narayanan Vaidyanathan, the report’s author and head of business insights at ACCA says. Vaidyanathan points out that AI and machine learning can add value to the work accountants do, starting from generating valuable insights for business decision to making, fraud detection, risk assessment, understanding complexities in taxation and also with more effective non-financial reporting. He believes that the accountancy profession needs to understand how AI and machine learning works, especially given its role in influencing the trust we have in the decisions of these systems. “As with any technology, with power comes responsibility. In the

case of machine learning, ethical considerations are never far away. Accountants need to consider and manage potential ethical compromise from decision-making by algorithm, such as the risk of bias in the data set that feeds them and the issue of accountability for decisions made,” Vaidyanathan points out. The report emphasizes that, at a minimum, all finance professionals should know how AI is evolving and be alert to how the developing capabilities could overlap with their impact on their roles. To prepare for the digital future, ACCA already examines a range of digital topics within its Masters level ACCA qualification. It has also enhanced the digital content across many of the exams for students, while also ensuring digital is weaved into members’ continuous professional development.

Leadership critical in tackling security issues in Nigeria, other nations - US Consul General Daniel Obi

nited States’ Consul General in Lagos, John Bray, says leadership is critical for Nigeria and other nations to tackle the present threatening security challenges and other socio-economic issues. These challenges, he says, are characterised by volatile, unpredictable, complex and ambiguous (VUCA) issues. Bray, who spoke at the ongoing ninth edition of Securex West Africa, a dedicated security and public safety event in Lagos, identified some factors that contribute to instability to include: corruption; violent ethnic conflict; population movements; exploitation of natural resources; proliferation of small arms and light weapons; state-sponsored denial of political and legal rights; economic and political instability, among others. To deal with the issues, he put it succinctly that “the critical skills set to accomplish any strategic objective is leadership. Leadership is critical.” He recalled an acronym he learnt in the military that helped to remember important actions, which is . J.J. DID TIE BUCKLE. This stands for: Justice, Judgement, Dependability, Initiative, Decisiveness, Tact, Integrity, Enthusiasm, Bearing, Unselfishness, Courage, Knowledge, Loyalty and

Endurance.), saying, “I continue to use that acronym to help guide me in my position of leadership.” He also identified other tools such as Patience, Persistence and Perseverance in dealing with security and other socio-economic challenges. Under patience he said things do not change quickly; “we will not achieve our objectives overnight ; we cannot rush success or we risk impeding our own progress; and small steps forward will lead us to our ultimate goal.” With persistence, he said leadership must keep moving the ball forward down the field, because even the smallest step forward would help achieve goals. Under perseverance, he said, “We cannot allow slow progress to get us down; we must persevere even when our progress is difficult.” He also said in dealing with security issues, all aspects of culture must be brought to bear. “If minds need to be changed in order to stem the tide of instability, if there is a culture of violence, or apathy, or corruption, the situation must change. We can effect these cultural aspects through education programs, information programs, direct contact with thought leaders and political leaders and indirect content through them with the broader population at large.” www.businessday.ng

L-R: Maureen Klovers, director of social impact, MPOWER; Oluwadare Owolabi, MD/CEO, Xpress Payment Solutions Limited; Ami Dalal, managing director, FINCA Ventures and vice president, FINCA International, and Damilola Ayorinde, chief operating officer/co-founder, Crowdforce, at the Africa Fintech Summit inn Washington USA.

Xpress Payments MD canvasses democratisation of finance at Fintech Summit

anaging director of Xpress Payments, Oluwadare Owolabi, has suggested ways to ensure financial democratisation in Nigeria. He spoke at the African Fintech Summit 2019 held in Washington, where array of technological and business experts were also present. The second edition of The African Fintech Summit (AFTS) saw business experts engaging in riveting and insightful discourse on Financial Inclusion and the future of financial technology in Africa. Owolabi, who spoke on the theme ’Democratisation of Financial Services,’ said there was a need in the financial sector, and called for “fundamental and wholesale changes in the financial service experiences of users and customers in Africa.” According to Owolabi, the change will “promote the existence of financial inclusion programs as well as increase accessibility to credits and finances.”

On how to enable Democratization of Finance in Nigeria, he outlined the need for technological orientation, security and trust, digitisation as well as native innovations that are relatable to customers. Other key personalities at the summit included: Jim Ovia of Zenith Bank, who gave the opening address; Worku Gachou, managing director for Africa at OPIC; Olugbenga Agboola, cofounder/CEO of Flutterwave; Bunmi Akinyemiju, CEO of Venture Garden Group, among a host of others. “AFTS is a global initiative founded on the idea that Fintech can unleash unprecedented economic firepower in Africa and encourages collaboration between ecosystem stakeholders,” organisers of the programme said. The event, which had its maiden edition in Lagos last year was attended by tech and finance leaders, policy makers and investors from across Africa and the United States.

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NPA, works ministry working to cushion pressure on Apapa roads - Board AMAKA ANAGOR-EWUZIE

ollowing the negative impact of persistent gridlocks on roads leading to Apapa, the Board of Directors of the Nigerian Ports Authority (NPA), has assured ports users including terminal operators of the authority’s commitment in addressing the gridlock. According to them, the NPA is synergising with other government agencies such as the Federal Ministry of Power, Work and Housing (FMWH) to cushion the pressure on the roads leading to the ports. Emmanuel Olajide Adesoye, chairman of the Board, gave the assurance after the tour of terminals in the Western zone, consisting of Lagos Port Complex (LPC) and Tin-Can Island Port at the weekend. The management of the NPA is very much aware of the challenges faced by terminal operators and other port users in assessing the ports due to the persistent gridlock, he said. According to Adesoye, the authority is keen on rejuvenating the rail lines in the port, intro@Businessdayng

ducing call-up system as well as expanding the port access roads, “We are conscious that badges are currently being used to transfer cargoes from Tin-Can and Apapa ports to Ikorodu and Kirikiri Lighter Terminals.” This, he said, has drastically reduced the clog on the wheel of progress on the lane to greater service delivery at the nation’s seaports. “The completion of the Lekki Deep Seaport, which is a product of Private Public Partnership, and great collaboration, would help in the efficient movement of cargo. We believe that the port would be a reference point within the Gulf of Guinea. However, we are committed to providing modern port infrastructure in all seaports in the country, in order to encourage efficiency in the system,” he assured. Earlier, Emmanuel Akporherhe, port manager, Tin-Can Island Port Complex (TCIP), who said some existing infrastructure in the port was over 40 years old, solicited for the rehabilitation of the infrastructure round the port to facilitate greater customer satisfaction.

Friday 19 April 2019

BUSINESS DAY

FEATURE FCMB Easy Account is the Acceleration of CBN’s Financial Inclusion EMEFU IBEAYOKA

t is gratifying that over the years, the Central Bank of Nigeria (CBN), in its various initiatives, has made a lot of progress in creating a robust financial system framework through several reforms. The apex institution, in its bolstering policies, has focused on fostering stability, sensitizing the gains in serious governance and restoring confidence in the nation’s financial system. In 2007, it floated the Payment System Vision (PSV 2020) initiative and in 2013, CBN revisited the idea of providing mechanisms for making and receiving payments. With the minimum risk to the central bank, the payment service providers and end users, the operation aimed at accommodating the banked, underbanked and the unbanked. This was structured to conform to regulatory, technical and operational standards across all economic activities, geographies and accepted across all international boundaries. Not long ago, the CBN berthed the National Financial Inclusion Strategy (NFIS) which seeks to ensure over 80% bankable adults in Nigeria have access to financial service by 2020. In addition to what the deposit money Banks and other financial institutions have been doing, the CBN has cleared the way to license a new set of operators referred to as Payment Service Banks (PSBs). It has also spelt out the requirements, the structure, what will be allowed and what will be considered illegalities. The key objective is to accelerate financial inclusion in rural areas. By so doing, there will be increased access to deposit products, payments and remittance services to small businesses, low income households as well as entities through high-volume low-value transaction in a secured technology-driven environment. Commendations are now rolling in to First City Monument Bank (FCMB) for a recent feat it achieved. The 40year old financial institution is said to be the first that jumped onto the driver’s seat with FCMB Easy Account offering. It launched the product to give full translations to the CBN’s vision of truly taking banking to the nooks and crannies of the nation’s towns and villages, particularly to everyone who has never owned a Bank account. Commonly associated with, “Your Phone Number is Your Account Number” and ”The Last Ten Digits of Your Phone Number are Your Account Number”, investigations reveal that FCMB has invested heavily in state-of-the-art technology and is perfecting a world class infrastructure that conforms to the best practices on data, storage, security and integrity, to continue to give its customers sustainable positive experience in quality and satisfactory service. George Ogudu of the apex Bank’s Financial Inclusion and Strategy Secretariat commended FCMB for taking the lead in developing the product. While endorsing FCMB Easy Account, he stated, “FCMB has taken a giant stride to prove its commitment to bringing more Nigerians into formal Banking. The fact it targets those who have never owned bank accounts and serves as a convenient opportunity for this category of Nigerians to do so, is very laudable. We consider this as further strategic support towards the full realisation of the CBN’s finan-

cial inclusion initiative. We appreciate FCMB for consistently being very innovative and a partner in progress”. FCMB Easy Account is said to have been designed to make banking accessible to all Nigerians and help to achieve the laudable goal of financial inclusion for most Nigerians as set by the Central Bank of Nigeria (CBN). The product has been made open to all, particularly to meet the needs of low-income earners and the unbanked segment of the society. It allows the account holders have access to convenient and secured financial services, irrespective of their locations. The Bank stated the self-service, stress-free and secured offering, available on all the Global System for Mobile (GSM) networks in Nigeria, (Globacom, MTN, 9Mobile and Airtel), enables everyone anywhere in Nigeria open an account from his or her location, by dialling *329# from a mobile phone and following the instructions. The development now enables Nigerians who wish to open accounts and carry out banking transactions on any type of mobile phones do so from any location-rural, urban and remote, even if there are no banks physically located at the area. Internet service availability or data is not required for FCMB Easy Account as the account operates on the USSD platform. Its customers can send and receive money to and from friends, families and business partners across all banks in Nigeria. Customers can also deposit funds into their accounts at more than 100,000 agent and banking locations of FCMB and other banks and mobile money operators in Nigeria. FCMB Easy account customers can also use their accounts for airtime purchase, bill payments and other payments. FCMB’s Managing Director, Mr. Adam Nuru said what the Bank unveiled in FCMB Easy Account is a part of its long-term strategic plan to embark on a digital transformation initiative where it aspires to scale business operations, www.businessday.ng

build capabilities and find the best way to simplify banking for customers, using technology. Nuru said, “Every day we are developing digital innovations and ideas that will make our relationship with our customers seamless in so many areas including Channels Management among others. FCMB Easy Account is one of such innovative offerings that make Banking services available across all informal segments, particularly the unbanked. It is banking made easy. All you need is to own any type of mobile phone, and you do not even necessarily need to buy data”. African Development Bank (AFDB) has said, for sustained inclusive development to thrive, a great deal of innovation and thinking are needed to ensure appropriate financial services and instruments should be deliberately put in place for the benefit of the poor and other vulnerable groups. The Bank said there must be provision of appropriate service that is both accessible and affordable to low-income and vulnerable households. This is what the Bank has targeted with the FCMB Easy Account. Its Executive Director, Retail Banking, Mr. Olu Akanmu said, “ With the launch of FCMB Easy Account, we make a bold statement on our commitment in FCMB to the greater social purpose of banking, that banking should be socially relevant not only to the privileged but to all people. That the benefit of financial intermediation, particularly the ability to have a bank account, should be more inclusive for all Nigerians. That every Nigerian should be able to own a bank account no matter their geographic or social location, whether they are in urban or rural areas, whether they are in cities or villages or whether they are rich or poor”. Uche Uzoebo who heads Agency and Merchant Services in one of the new generation Banks, while responding to a media inquiry on the challenges facing financial inclusion

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in Nigeria said, “Bangladesh for instance has a bank-led model of financial inclusion, Kenya has Telco-led; Brazil has a combination of both bank and Telcos. I see Nigeria having a combination of banks and Telcos. The truth is that Nigerian government and the governments of other countries are not the same, so we don’t also have the same basis for judgement”. She said most of the time, when people discuss financial inclusion, they often compare Nigeria with Kenya. Uzoebo would not make such a comparison because they consistently got a lot of strategy right in Kenya, a scenario that is different in Nigeria. “In Kenya, there are people in remote areas carrying out transactions through mobile money and several agents are championing those transactions, but in Nigeria, there are some locations one cannot get to because of security issues”. But the FCMB’s Executive Director, Retail Banking, Mr. Olu Akanmu, said FCMB Easy Account is a part of the Bank’s core strategy to innovate and expand its service channels by promoting and deepening financial inclusion and the cashless policies of the Central Bank of Nigeria (CBN) across regions in Nigeria. The differentiating factor Akanmu said is, “FCMB Easy account helps to achieve the goal of national, financial and social inclusion where all Nigerians have access to formal financial services and their benefits, no matter their situation or location. In FCMB, we are determined to be a critical part of the effort to create a more inclusive society of shared prosperity, where all Nigerians, informal traders, micro SMEs and small holder farmers in agriculture are connected to the shared prosperity that formal financial services engender”.

Emefu Ibeayoka, a financial and public opinion analyst, writes in from Abuja.

@Businessdayng

BUSINESS DAY

Friday 19 April 2019

BUSINESS DAY

FINANCIAL TIMES

World Business Newspaper

North Korea says it has tested new weapon

Pyongyang says it no longer wants to deal with Pompeo after failed Hanoi summit DEMETRI SEVASTOPULO , ROBIN HARDING AND SONG JUNG-A

orth Korea no longer wants to deal with US secretary of state Mike Pompeo as a nuclear negotiator, the country’s state media has said, less than 24 hours after announcing that North Korean dictator Kim Jong Un had overseen the test of a new tactical weapon. The official KCNA news agency said on Thursday that Pyongyang wanted to work with someone “more careful and mature in communicating” than Mr Pompeo. While North Korea last year rebuked the US diplomat for making “gangster-like” demands, the fresh attack highlighted the gulf between the countries since the collapse of the February summit in Hanoi between Donald Trump and Mr Kim. The criticism came shortly after KCNA said Mr Kim had overseen the test of a tactical guided weapon that was designed to carry a “powerful warhead” and that the completion of the test was of “very weighty significance in increasing the combat power of the [Korean] People’s Army”. The White House and Pentagon said they were aware of the North Korean claim but declined to comment. It was unclear what kind of weapon Pyongyang had tested, but experts said it was almost certainly not a mediumor long-range missile, which the US would easily detect. Also on Thursday, the Kremlin

announced that Mr Kim will travel to Russia for a summit with president Vladimir Putin this month, as Moscow seeks more influence over international talks regarding North Korea’s future, after being sidelined by China, South Korea and the US over the past year. Moscow, which shares a border with North Korea and was a key partner during the Soviet Union, has long sought a summit with Mr Kim as it looks to present itself as a regional Asian power. Pyongyang has declared a selfimposed moratorium on testing longrange ballistic missiles in an effort to persuade the US to ease sanctions. It tested dozens of missiles and conducted nuclear tests before imposing a moratorium that paved the way for a first summit with Mr Trump in Singapore in 2018. If confirmed, however, the latest move would mark the first weapons test since the collapse of the second nuclear summit, which Mr Trump and Mr Kim held in the Vietnamese capital at the end of February. The North Korean claim also follows a similar statement from Pyongyang in November that was never publicly confirmed. “Experts still don’t know what tactical system was tested,” said Bruce Klingner, a former CIA North Korea expert at the Heritage Foundation. “However, the US did not detect a missile launch either time, so it must be a short-range system, perhaps an artillery system such as a multiplerocket launcher or an anti-tank guided missile.” Takeshi Iwaya, Japan’s defence

Trump’s tax code changes and property market nerves leave landlords with the upper hand

ental prices for apartments in Manhattan, Brooklyn and Queens hit an all-time high in the first quarter as higher taxes and concerns about an overheated property market made buying less appealing. New Yorkers have been hit by changes to the tax code made by President Donald Trump, which set a $10,000 limit on the amount of state and local taxes that households could deduct from their federal taxes. They also capped the amount of mortgage debt for which residents could deduct interest, lowering the financial incentive for wealthy New Yorkers to buy homes. Rents in Manhattan rose at the fastest pace since 2016, according to StreetEasy, an online real estate aggregator. At the same time, sales prices for Manhattan apartments fell at the fastest pace since 2010, it found. “This spring, landlords will have the upper hand,” said Grant Long, the site’s senior economist. “We’re coming out of an unusually competitive winter rental season in which many renters found themselves in a weaker negotiating position than in years past.” Manhattan condominium and co-op sales have stalled amid a glut of luxury new-build apartments

that have come on the market and are slow to sell. Many potential buyers have gone back to renting, reversing a yearslong period when rental prices in New York stabilised and landlords offered price cuts and free months of rent in order to entice prospective tenants. According to Douglas Elliman, a New York real estate brokers, the median rental price for apartments in Manhattan was up 3.3 per cent in the first quarter, to $3,400. The number of new leases was up 21.4 per cent, while inventory was down 10.3 per cent and both the vacancy rate and the amount of time apartments sat on the market also declined slightly. In Brooklyn, the median rental price was up 5.5 per cent to $2,900, and in Queens, it rose 4.8 per cent to $2,800, according to the broker. But it was a different story for sales. In Manhattan, a quarter of all sellers cut their price in the first quarter, according to StreetEasy. Sale prices fared better in the outer boroughs. They were up slightly in Brooklyn, by 0.4 per cent, and by 3 per cent in Queens. Still, the number of properties listed for sale in Queens was up by 26.1 per cent and price cuts spiked from 5 to 17 per cent, indicating that the rosy sales figures from the first quarter may not continue. www.businessday.ng

minister, said the government was “closely watching the military actions of North Korea” as always, but declined to comment on the claim from Pyongyang. “In any case, in close collaboration with the United States and others, the government is using all efforts to collect and analyse the necessary data and maintain a close watch.” Pyongyang and Washington have failed to make any discernible progress towards denuclearising the Korean peninsula since the Hanoi summit. At the meeting in Vietnam, Mr Trump presented Mr Kim with an offer to remove crippling sanctions if Pyongyang destroyed its nuclear programme and handed over its nuclear weapons. But

Mr Kim, who presented his own more limited offer to Mr Trump, balked at the US demands. Last week Mr Kim said his relationship with Mr Trump was good but that he would not hold a third summit unless the US changed its attitude. Speaking to the Supreme People’s Assembly, Mr Kim said he would “wait for a bold decision from the US with patience ’til the end of this year”, while adding that Washington must “quit its current calculation method and approach us with a new one”. KCNA on Thursday also warned that “no one can predict” what would happen on the Korean peninsula if the US failed to get rid of the “root cause” of its nuclear development.

At the weekend, Mr Trump said he was committed to diplomacy. He said the denuclearisation talks did not have to proceed quickly, and said he would be interested in holding a third summit with Mr Kim. On Wednesday, however, John Bolton, the US national security adviser, told Bloomberg that Washington had to see real evidence that North Korea had made a decision to abandon its nuclear programme before another summit could be held. Despite holding two high-profile summits, the US and North Korea have been unable to reach agreement over the definition of the “denuclearisation” that Mr Kim pledged to undertake in the Singapore meeting last year.

Samsung’s new Galaxy Fold breaking within days, say reviewers

New York rents hit all-time high as ownership loses appeal LINDSAY FORTADO

South Korean company to investigate cracking and flickering in phones sent to reporters SONG JUNG-A

ome of Samsung’s new folding phones priced at almost $2,000 appear to be breaking only after a couple of days of use, according to several reporters who received the phones for review before the public launch next week. The South Korean technology giant said on Thursday that it had received “a few” reports of damage to the main display on the samples of the Galaxy Fold provided to journalists. “We will thoroughly inspect these units in person to determine the cause of the matter,” the company said. Reporters from Bloomberg, the Verge and CNBC who received the new smartphone this week for review said the unit’s screen cracked or flickered. A Financial Times reporter did not experience similar problems during a short test session. The highly anticipated folding phone, one of the first of its kind, is a pocketable smartphone but opens into a widescreen tablet. Samsung, which unveiled the product in February ahead of rivals, had hoped that the new phone would help it stand out as an innovator and reignite

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slowing smartphone sales as it becomes harder to discern key differences among handset designs. The $1,980 phone, one of the most expensive in the world, will go on sale in the US on April 26. Samsung said its pre-orders for the phone were closed due to high demand. Unfolding Samsung’s Galaxy Fold smartphone Samsung has highlighted the durability of the device, saying the screen can withstand being opened and folded 200,000 times, or 100 times a day for five years. It plans to produce at least 1m foldable phones globally. Although foldable phones such as the Galaxy Fold and the upcoming Mate X of Huawei Technologies are unlikely to sell in huge numbers, they have been hailed as the biggest experiment in handset design since Apple’s iPhone launch 12 years ago. Some of the tech reviewers reported the problems with the foldable screen after removing a protective covering, but others said their screens still broke although they left it intact. The phone was “completely unusable” after two days, CNBC reporter Todd Haselton wrote, with his video showing the left side of the inside screen intermittently flashing and the right @Businessdayng

side being unresponsive. Dieter Bohn at The Verge said a “small bulge” appeared on the crease of the phone screen. “The outward plastic screen is susceptible to heat and relatively weak so it could easily break if users get rid of the protective layer,” said Kim Young-woo, an analyst at SK Securities, saying that presales of the product could be affected by the issue. Samsung said the top layer of clear plastic film on the foldable screen was designed to protect it from scratches. “Removing the protective layer or adding adhesives to the main display may cause damage. We will ensure this information is clearly delivered to our customers,” the company said. It remains unclear how the reported problems would affect the pricey phone sales. But this runs the risk of hurting the company’s brand image again if Samsung fails to find the exact cause of the problems and fix them immediately. Samsung suffered billions of dollars of losses in 2016 after it was forced to end production of its Galaxy Note 7 smartphone after some of the large-screen device’s batteries caught fire. The company had to recall millions of the fire-prone phones and struggled to fix the problem.

38 BUSINESS DAY

Friday 19 April 2019

NATIONAL NEWS

Deutsche Bank and Commerzbank at odds over client losses Some companies expected to move parts of business to rival lenders in case of a merger

OLAF STORBECK

eutsche Bank and Commerzbank are at odds over how many clients would ditch the Frankfurt-based rivals if they merged, highlighting one of the many obstacles to a deal that could transform the face of German banking. Many companies in Germany are clients of both Deutsche and Commerzbank. Some of them are expected to move parts of their business to rival lenders if the merger happens to avoid becoming overly dependent on a single lender. Deutsche’s internal estimates suggest that this would result in lost revenue of slightly more than €1bn a year, or about 3.5 per cent of the two lenders’ combined pro forma revenue of €33.5bn. Commerzbank’s view is much more benign, however. It expects that the merged group will suffer only about half of the revenue losses its larger rival is predicting, people familiar with the matter told the Financial Times. The more optimistic view by the smaller partner is in line with the perception among Frankfurt financiers that Commerzbank — one of the largest lenders to Germany’s so-called Mittelstand of family-owned small and medium-sized companies — is keener to strike a deal than Deutsche. The German government — which with a 15 per cent stake in

Commerzbank is its single largest shareholder — would also prefer a domestic deal rather than a cross-border one, according to people briefed on the views of Berlin officials. Deutsche’s prediction of a large drop in revenue may feed investor scepticism about a complex deal that is likely to involve raising up to €10bn in fresh equity and is facing stiff employee resistance. Kian Abouhossein, analyst at JPMorgan, estimated earlier this year that about 2.5 per cent of joint revenue — or just under €900m by 2021 — would disappear “due to [an] overlap in clients and businesses”. He estimated the merged group would have its “biggest overlap in Mittelstand, followed by international corporates, financial institutions and small business customers”. Recommended Christa Remme, a Commerzbank worker council member in Stuttgart who deals with large corporate clients, said at a union rally against the deal this month that “many large customers tell us that their risk exposure [to a merged group] would be too big, and that they don’t want to be dependent on just one bank”. Deutsche is already suffering from falling revenue and analysts expect that this year’s top line will be almost a fifth lower than in 2016. Commerzbank earlier this year ditched its 2020 growth target.

Blackstone to shift from partnership to a corporation Private equity group finds complex structure no longer worth the trouble following US tax cuts MARK VANDEVELDE

lackstone said on Thursday that it would convert to a corporation, ditching a partnership status that has shielded much of its income from corporate taxation after concluding that tax cuts meant the complex structure was no longer worth the trouble. The world’s biggest private equity fund is following the lead of rival KKR, which enjoyed a share price pop and saw its stock added to a dozen index funds after making a similar move last year. Blackstone shares rose more than 8 per cent in pre-market trade on Thursday to $39.05 as investors, cheered by the restructuring, brushed off earnings numbers that came in below analysts’ expectations. Stephen Schwarzman, Blackstone’s billionaire founder, said that opting to become a corporation rather than a partnership would free shareholders from “irksome” tax filing requirements, at the cost of adding to the group’s tax bill. “The reason we’re accepting [the higher taxes] is we think that the value for our shareholders of our stock appreciating should be much higher than that loss of current income,” said Mr Schwarzman. Like its major private equity peers, Blackstone was structured as a partnership when it listed on the stock market in 2007. That

meant tax authorities treated much of the firm’s income as if stockholders had earned it themselves. The structure has been falling out of favour since Republican tax reforms reduced the corporate income tax rate from 35 per cent to 21 per cent, prompting some analysts to conclude that it was better to pay the levy than deal with the hassle of avoiding it. Stephen Schwarzman, Blackstone’s founder © Bloomberg Blackstone estimates that the restructuring will ultimately dilute its earnings by about 13 per cent, although the impact will be limited to between 2 and 5 per cent for the first five years. Index trackers and other mutual funds have shunned listed private equity firms in part to avoid saddling retail investors with the complicated tax consequences. Passive funds account for about $10tn of market capitalisation, analysts say, giving them enough clout to make a significant difference to share prices. Vanguard, one of the world’s largest asset managers, became the second-biggest owner of KKR in the months after that firm made its own conversion, adding the stock to a dozen tracking funds. KKR shares hit an all-time high in the weeks after the move, rising as much as 50 per cent. However, the company’s valuation suffered in the December market rout, and KKR shares are now roughly where they were before the move. www.businessday.ng

Mueller identifies multiple episodes of potential Trump obstruction Redacted document released after attorney-general said president had ‘non-corrupt motives’ DEMETRI SEVASTOPULO AND KADHIM SHUBBER

he Mueller report into Russia’s election meddling has been published, shortly after William Barr, the US attorney-general, revealed that it discusses “10 episodes” involving possible obstruction of justice by Donald Trump. The attorney-general said Robert Mueller had found “no collusion” between Mr Trump or his presidential campaign and Russia, echoing the defence Mr Trump has frequently made against a probe that he called a “witch hunt”. The report revealed how Mr Trump viewed the appointment of Mr Mueller as special counsel. When then attorney-general Jeff Sessions told him during an Oval Office meeting in May 2017 that Rod Rosenstein, the deputy attorney-general, had appointed Mr Mueller as a special counsel, Mr Trump responded: “Oh my God. This is terrible. This is the end of my presidency. I’m fucked”. Mr Trump also lashed out at Mr Sessions for recusing himself from the Russia investigation, saying, “How could you let this happen, Jeff?” Mr Barr said at a press conference that the Mueller report examines the 10 instances of potential obstruction and “discusses potential legal theories for connecting these actions to elements of an obstruction offence”. As he had last month in a four-page outline of the report, Mr Barr said the special counsel made no determination about whether Mr Trump had tried to obstruct justice. The attor-

ney-general concluded that Mr Trump had not obstructed justice based on his reading of the report. In defending Mr Trump, Mr Barr said the president had “non-corrupt motives” for any acts that could be construed as obstruction of justice, adding that Mr Trump had faced “an unprecedented situation” when he entered office. “As the special counsel’s report acknowledges, there is substantial evidence to show that the president was frustrated and angered by a sincere belief that the investigation was undermining his presidency, propelled by his political opponents, and fuelled by illegal leaks,” said Mr Barr. Mr Barr said the special counsel’s investigation had established that the Russian interference in the 2016 election “did not have the co-operation of President Trump or the Trump campaign”. On the question of the hacked Democratic emails that were published through WikiLeaks, the attorney-general said Mr Mueller did not find that any associates of the Trump campaign “illegally participated” in the dissemination of the material. Democrats criticised Mr Barr for holding a press conference before the release, saying that it was an attempt to provide spin, instead of substance, in relation to the nearly 400-page document. After the press conference, Mr Trump tweeted an image of himself looking into the distance, with the words “No Collusion. No Obstruction. For the Haters and the Radical Left Democrats — GAME

OVER” spread across the image. The president’s legal team released a statement after the report’s publication, saying that the results of the investigation were a “total victory” for Mr Trump. “The report underscores what we have argued from the very beginning — there was no collusion — there was no obstruction.” Mr Barr also revealed the nature of contacts with the White House and Mr Trump’s personal lawyers regarding the report in recent weeks. He said the president’s personal counsel had been allowed to read the redacted report, though he added they did not request, and were not permitted to make, redactions. He added that the White House had been permitted to review the report so Mr Trump could make claims of executive privilege, which protects the privacy of presidential communications with their staff. No such claim was ultimately made, he said. Mr Barr had previously told Congress he had “no plans” to submit the report to the White House for such a review. Jerrold Nadler, the New York Democrat who chairs the House judiciary committee, also criticised Mr Barr over reports that the justice department had discussed the report with the White House before providing it to Congress. The public release of the Mueller report document comes less than a month after Mr Barr issued a four-page summary. In his letter, he said Mr Mueller was unable to establish a conspiracy between Mr Trump and Russia, but did not reach a conclusion on whether the president obstructed justice.

Zoom grabs $19bn valuation as shares debut at $65 Shares in video conferencing group rise 80 per cent RICHARD WATERS

hares in video conferencing service Zoom opened at $65 on their first day of trading on Friday, an 81 per cent jump from the level the shares were priced at the night before. The euphoric Wall Street reception echoed the 64 per cent first-day jump in shares of PagerDuty, a much smaller business tech company that went public last week. Zoom’s rapid growth in a market dominated by giants like

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Cisco, Microsoft and Google has made it one of the most closely watched IPOs so far this year, and its IPO highlights the current investor enthusiasm for workplace apps that show signs of catching on with a large audience. At its opening share price, Zoom is worth $19bn based on a fully-diluted share count. That tops the current $15bn market cap of Snap, the messaging service whose IPO two years ago was seen as a highlight for the consumer internet. @Businessdayng

Silicon Valley-based Zoom had originally set an indicated price range on its shares at $2830, before raising the range and eventually pricing the offering at $35. The deal leaves Eric Yuan, the company’s co-founder and chief executive officer, with a stake worth $3bn. That is nearly as much as the $3.2bn Cisco paid 12 years ago to buy Webex, one of the biggest business video conferencing companies, where Mr Yuan was also one of the original engineers.

Friday 19 April 2019

BUSINESS DAY

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Interrogator of politicians, officials and bankers turns on auditors Andrew Tyrie, a vocal and high-profile CMA chair, tries to extend the ringfence CAT RUTTER POOLEY

or Andrew Tyrie, the former Conservative backbencher behind the competition watchdog’s proposals to shake up the accounting industry, ringfencing has a familiar ring. As an MP, Lord Tyrie toughened the government’s proposals to separate high street banking from institutions’ riskier investment bank operations from his seats as chair of the influential Treasury select committee and the Parliamentary Committee on Banking Standards. A fierce interrogator of politicians, public officials and bank bosses alike, Lord Tyrie objected vociferously that George Osborne’s bank proposals as chancellor did not go far enough. While he supported a ringfence, it needed to be “electrified” to ensure that banks did not continually test its limits, he argued. “All history tells us that banks will be at the ringfence like foxes to a chicken coop unless they are incentivised not to do so,” Lord Tyrie wrote in the FT in January 2013. Quitting as an MP in 2017, Lord Tyrie took up his role at the Competition and Markets Authority last year and has been a vocal and high-profile chair of the regulator. He has pushed for greater independence from government as the watchdog ramps up its preparations for a bigger role after

Brexit, when it would take over antitrust powers from Brussels, and repositioned the organisation as a consumer champion. Lord Tyrie has warned accountants that he would not give up. “If it turns out that the proposals are not far-reaching enough, the CMA will persist until the problems are addressed,” he said. As with the banks, the threat of a structural separation lingers over accountancy firms if they do not shape up. But once again, Lord Tyrie has stopped short of recommending the toughest measures to shake up an industry he has the job of scrutinising. John Mann, a Labour MP and former colleague of Lord Tyrie on the Treasury select committee, said: “He’s not up for a radical overhaul of anything . . . The government will be very happy.” One former banker also questioned why operational separation should be the answer for industries as different as banking and accountancy. To a politician, ringfencing might feel like a good compromise: splitting up organisations without taking the risks over financial stability that a structural separation could bring, the person said. To endorse it as the solution for both banks and auditors could reflect the technocratic instincts of Lord Tyrie. “I expect very few people sadly do much more than just carry round their bag of tricks,” they said.

Dollar jumps after weak economic data knocks euro PETER WELLS , MICHAEL HUNTER AND ALICE WOODHOUSE

he dollar jumped the most in a month after weaker than expected data from Germany and France took their toll on the euro. Purchasing managers’ indices from the manufacturing sectors of the eurozone’s two biggest economies narrowly missed forecasts, and pointed to further contraction. After the numbers, the euro fell to its lowest level of the session, down 0.5 per cent to $1.1244, a level last touched six days ago. That, in turn, saw the dollar index rise 0.5 per cent to 97.459, its biggest one-day jump since March 21, and its highest level in six weeks. US stocks had a sluggish start to the day despite retail sales posting their biggest rise since 2017. The S&P 500 overcame an early drop to be 0.2 per cent higher in lunchtime trade. The Dow Jones Industrial Average added 0.4 per cent, however the Nasdaq Composite edged

0.1 per cent lower. Showing some stronger form were social media site Pinterest and video conferencing company Zoom, which both saw their shares open sharply higher as they made their Wall Street debuts. Nonetheless, there was a lingering sense of caution in government bond markets, where the outlook for economic growth drew investors into the relative safety of sovereign debt, pushing their yields lower. US 10-year Treasuries were yielding 2.5614 per cent, down 3.1 basis points. The German 10-year Bund yield fell almost 5 basis points to 0.035 per cent. Despite the weak data, European stocks moved back toward their recent multi-month highs. The Europe-wide Stoxx 600 ticked up 0.2 per cent. Frankfurt’s Xetra Dax 30 rose 0.6 per cent, but London’s FTSE 100 dropped 0.2 per cent. Japan’s Topix fell 1 per cent, following another weak reading for the country’s manufacturing sector as export demand faltered. www.businessday.ng

Ex-speaker of US House stands to pot near $20m from cannabis deal Boehner-backed weed play Acreage agrees to $3.4bn Canopy takeover JAMES FONTANELLA-KHAN, ANDREW EDGECLIFFE-JOHNSON AND ALISTAIR GRAY

ohn Boehner, the former US House speaker who was once “unalterably opposed to the legalisation of marijuana”, could collect almost $20m from a $3.4bn deal between two of the largest companies in the fast-growing cannabis market. For that to happen, the Republican will need the support of his former colleagues in Washington, as Canada’s Canopy Growth agreed to buy the New York-based Acreage Holdings on condition that the production and sale of weed becomes federally legal across all US states. Such a deal would unite Mr Boehner, Speaker of the US House of Representatives from 2011 to 2015, former Canadian prime minister Brian Mulroney and William Weld, the former governor of Massachusetts, with Canopy business partners including Snoop Dogg, the rapper, and Martha Stewart, the lifestyle guru. Investment in marijuana-related companies has hit an all-time high,

with more than $20bn spent in the sector over the past 15 months, according to Dealogic data, as a wave of countries legalise the use of pot for medical and recreational use. Mainstream consumer companies such as brewer Constellation Brands and Marlboro-maker Altria as well as Wall Street investors of the calibre of Nelson Peltz have been making big bets on cannabis as they expect the industry to expand rapidly in the years to come as legislators across the world decriminalise the drug. In a 2011 letter, John Boehner said he was worried legalising pot would ‘result in increased abuse of all varieties of drugs’. Since joining Acreage he has said his thinking on cannabis had evolved © Getty Under the terms of the agreement, shareholders in Acreage will receive an immediate payment of $300m in cash. They will then receive 0.5818 shares in Canopy, the world’s largest weed company, for every Acreage share they own. The offer represents a 41.7 per cent premium over the 30-day volumeweighted average price of Acreage, the company said in a statement. Mr Boehner holds 625,000 units

of an Acreage subsidiary, which would grant him a $1.66m upfront payment and, if the deal completes, Canopy stock worth a further $17.3m at Thursday’s trading price. In a 2011 letter, Mr Boehner said he was worried that legalising pot would “result in increased abuse of all varieties of drugs”. Since joining the board of Acreage in April 2018, however, the former Congressman said his thinking about cannabis had evolved. Bruce Linton, Canopy’s chief executive, said in a statement: “Our right to acquire Acreage secures our entrance strategy into the United States as soon as a federally-permissible pathway exists.” He promised “tremendous value creation for both companies’ shareholders”. Shares in Canopy were up 6 per cent by early afternoon in New York. Acreage was up 2.4 per cent. Canopy has reported rapid topline growth but remains lossmaking. In February it reported that net revenues for the first nine months of its latest fiscal year jumped from C$56m to C$132m, but it slipped from net income of C$227,000 to a net loss of C$347m in the same period.

Railroad stocks set record highs as price increases boost earnings MATTHEW ROCCO

hares in US railroads are trading near all-time highs after a trio of America’s largest train operators steamrollered earnings forecasts this week, backed by higher shipping rates. Union Pacific, CSX and Kansas City Southern cheered investors with first-quarter results that benefited from price hikes and cost efficiencies, which offset the financial impact of disruptive winter storms and record Midwest flooding that caused billions of dollars in damage in the region. Omaha, Nebraska-based Union Pacific kept the rally train moving on Thursday, revealing net income grew 6 per cent year-over-year to $1.39bn as rate increases helped the company overcome weaker volume. On an adjusted basis, earnings of $1.93 a share topped analysts’ average estimate by four cents, even as revenue of $5.4bn, down from $5.5bn, fell short. The company’s stock surged

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4.5 per cent to $176.90 in intraday trade, higher than its previous closing high of $171.33 set on February 19. The Dow Jones US Railroads Index, up 2.6 per cent on Thursday, was also trading at an all-time high. Meanwhile, the Dow Jones Transportation Average — a closely watched index seen as a gauge of the US economy — was tracking toward its highest close in more than 6 months with a gain of 1.7 per cent to 11,007.09. CFRA analyst Jim Corridore, who raised his price targets for all three companies this week, said CSX and Kansas City Southern have improved profitability with a shift to scheduled railroading — when trains depart at a set time as opposed to waiting for a certain number of cars. “CSX’s shift to scheduled railroading has driven declines in headcount, fuel costs and most other cost categories, and these benefits are likely to continue @Businessdayng

through 2019,” he wrote to clients. Mr Corridore remained concerned about carload declines at Union Pacific, saying it would likely lag behind other railroads on its operating ratio while it rolls out an improvement plan. The company’s operating ratio, a key industry measure of profitability, improved 1 percentage point to 63.6 per cent last quarter. CSX’s operating ratio was a first-quarter record for the group at 59.5 per cent. A lower number indicates stronger profitability. CSX booked revenue growth of 5 per cent in the March quarter on “broad-based pricing gains” and increased shipping volume in merchandise. Its net earnings expanded by 20 per cent. First-quarter revenues at Kansas City Southern rose 6 per cent amid strong gains in chemicals and petroleum shipments, while net earnings, which fell 29 per cent, were knocked by restructuring charges. Excluding one-time costs, adjusted earnings per share rose 18 per cent.

Friday 19 April 2019

BUSINESS DAY

ANALYSIS Why Tiger Woods is a hard act to follow

Where sport has knowable, written-down rules, life does not JANAN GANESH

n happy news, a world that used to regard Tiger Woods as a tragicomic case of fallen celebrity, citing his broken marriage and major-less decade, now regards him as an inspirational tale of endurance, citing his broken marriage and major-less decade. The narrative change occurred last Sunday between 2.28pm and 2.29pm local time in Augusta, Georgia, when the golfer sank a decisive putt at the second attempt. A centimetre wide and he would have had to do without our upward revision of his moral worth. Woods reclaimed two titles that day. One comes with a green jacket; the other promises the highest decorations of state. One comes with a cheque; the other will earn him millions of dollars in a more roundabout way. As well

there are the discrepant stakes. An error in sport can result in defeat. An error in life can result in death or jail time. The blandest advice in one field (“Be brave”) is often folly in the other. It is possible to enumerate all these little differences and still miss the important one. Sport is a meritocracy. A person of enough talent and application will — body permitting — achieve success. As sporting performance is measurable, there is little room for interpretation, much less fashion, nepotism, whim, bigotry, personal dislike and other human vagaries to get in the way. There are no klutzes charming their way through a basketball career and no undiscovered geniuses in football. If an uncontacted tribe in Borneo has a promising nine-year-old midfielder, an Ajax scout will know about it. In real life, it is entirely possible

Brazil’s rainforest warriors ready to battle Bolsonaro Indigenous people fear new president plans to encroach on their land ANDRES SCHIPANI

as Masters Champion 2019, then, he is, once again, a Role Model. When parents want to teach their children about the importance of resolve, of never giving up, they will now cite Woods as surely as they cite Churchill’s wilderness years. Even sports writers of the highest class have over the past week succumbed to purple slush about “redemption” and the “incalculable power of self-belief”. If my scepticism is showing here, it is not about Woods — a great athlete who overcame dire injuries, not just personal flaws — but about sport as a parable or allegory. Sport is captivating on its own terms. It is, as Pope John Paul II said of football, the most important unimportant thing in the world. Long-suffering readers will know of my taste for the stuff. But because I follow it so closely, I also know what sport is not. Sport is not a guide to life. It is too different in too many ways. If we understand a role model to be someone whose methods are applicable to our own lives, with a reasonable expectation of similar results, there are no role models in sport. Sport has knowable, writtendown rules. Life does not. Sport is mono-generational: the participants range from their late teens to (and here golf is exceptional) their mid-thirties. Life tests you across an average of 80-ish years. Then

for a person to possess talent, work hard and get nowhere. This might be due to lack of opportunity. Looking back, I grew up with several cases in point. Or it might be an accident of timing. The Van Gogh exhibitions that are decorating the world this spring honour a man whose own era failed to honour. Art, with its element of randomness as to who prospers, is a truer parable for real life than sport ever will be. None of which is to suggest that life should emulate sport. Only a sadist would want to live in a pure meritocracy. But as long as we don’t, we have to entertain the possibility that a great winner in sport has absolutely nothing to teach the rest of us. Even as sponsors disowned him and fans maligned him and policemen arrested him, the terms of Woods’s chosen profession never changed: complete a major course in fewer strokes than anyone else, and he would be a champion again. That he kept at it was impressive. But it holds few lessons for a world where the relationship between merit and reward is so much messier. In that world, ours, there are times when giving up, or not even trying in the first place, might be more sensible. To pretend that determination pays off, always and everywhere, is a good way to inspire the young. And to con them. www.businessday.ng

he Kayapó war cry resounded deep in the Amazon, the world’s largest rainforest. Four dozen warriors, their headdresses made of yellow and red macaw feathers, stood in the village clearing, carrying shot guns and war clubs. Warrior women, the crowns of their heads shaven, sang high-pitched war cries and waved machetes in the air. Kruwyt, the elderly male chief in the A’Ukre village, then led them in the pry’ongrere — a battle dance for “chasing after the enemy”. Their declared enemy is none other than Brazil’s new president, Jair Bolsonaro. The rightwing former captain, who took office in January, has slammed what he sees as the excessive legal protection afforded to Brazil’s 305 ethnic groups and the “enormity” of their constitutionallymandated land reserves. “We are ready to go to war against any mis-step from President Bolsonaro,” Kruwyt told the group, their bodies patterned with black fruit dye, a sign of war. “He wants to reduce our land, he wants to end our traditions, and we are warriors defending our rainforest, our river, our culture,” he said. The 3.2m hectares of Kayapó land in the Xingú river basin, in the heart of Brazil, form part of one of the largest mosaics of contiguous indigenous lands in the country. Over the past several hundred years, the Kayapó have fought Portuguese colonisers, their tribal neighbours as well as Brazilian loggers and gold diggers. Now they are standing up to a government that is keen to open indigenous lands to commercial activity. The struggle of indigenous peoples to maintain their way of life, famously documented by French anthropologist Claude Lévi-Strauss, is not new. But now Mr Bolsonaro has made access to this land a central part of his development policy, triggering an outcry at home and abroad. This week, the American Museum of Natural History scrapped an event to honour the president, citing concern about the

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Amazon rainforest. In recent weeks, Mr Bolsonaro has slammed what he called “an industry of demarcation of indigenous lands” which “makes any development project in the Amazon unviable”. The president, who prides himself on his relationship with US leader Donald Trump, added he would like to explore the rainforest for riches “in partnership” with the US. Shortly after taking office, he stripped Brazil’s indigenous agency of its authority in demarcating indigenous lands, transferring it to the agriculture ministry, which critics say is dominated by agribusiness interests. Federal prosecutors warn that the measure is illegal, as the Brazilian constitution guarantees ethnic groups’ rights to their ancestral lands. “Today, we are seeing the biggest attack on our rights in Brazilian history,” said Joênia Wapichana, a lawyer and indigenous lawmaker. “To subvert indigenous policy to agricultural interests is absurd,” she said. Mr Bolsonaro’s critics accuse him of pandering to the conservative farming constituency that brought him to power. Brazil is one of the world’s largest soya producers and environmentalists see the crop as a driver of deforestation. The heart of the matter, indigenous chiefs, anthropologists, and environmentalists say, is access to land. Indeed, 12.5 per cent of Brazil’s vast territory — an area the size of Venezuela — is home to more than half a million indigenous people, mainly in the Amazon rainforest, according to the national statistics institute (IGBE). Overall, indigenous people make up less than 1 per cent of Brazil’s 210m population. “This is our land, we were here before the kubên,” said Pat-i, A’Ukre’s young chief-in-waiting, referring to white people. “If we let them in they will destroy the rainforest and everything in it under the excuse we need ‘their’ development,” he added. Such development has not helped other Kayapó villages, he said, referring to nearby settlements that have fallen into the hands of illegal gold miners and been wrecked by deforestation, drinking, @Businessdayng

and prostitution. There are frequent conflicts with miners, loggers and ranchers, said the Indigenous Missionary Council, an advocacy group. Opening indigenous lands for development will ease such tensions by improving living standards, the government believes. “Are the Indians of Brazil all fine? They live in a poverty that is indigent. A country like ours, where the Indians have some 13 per cent of the national territory, and leave them in the poverty that they live? There’s something wrong,” agriculture minister Tereza Cristina Corrêa said. The roughly 350 people in A’Ukre hunt wild boars for food and harvest Brazil nuts for sale. They have electricity from generators and clean water from a well. While there is a school in the village, literacy rates are lower in indigenous communities than in other parts of Brazil, IGBE said, and child mortality rates are higher, a 2017 study shows. The Kayapó would like access to better healthcare, but otherwise, said Pat-i “I don’t think we are poor. In the cities, the white man lives with money. Here we don’t, we farm, we hunt, we fish, we dance. With all of that, we are rich.” Nearby, children swim in the river draped in yellow butterflies. “This is their land, they owe nothing to anybody,” added Glenn Shepard, an anthropologist and ethnobotanist with the Museum Emílio Goeldi in Belém, who studies the Kayapó. Crucially, he said, “without them holding the fort, deforestation would advance rapidly”. Indigenous lands act as “gigantic barriers to the encroachment of deforestation,” said IPAM, a research institute. Environmentalists warn that any attempt by the government to reduce the size of conservation reserves, ease environmental licensing and weaken indigenous rights, would pose further threats to the Amazon. Already in the first two months of 2019, 8,500 hectares of rainforest was cut down in the Xingu river basin. This represents a 54 per cent spike from the same period last year, said Instituto Socioambiental, an advocacy and research group, amid pressure from farmers and land grabbers.

Friday 19 April 2019

BUSINESS DAY

Tiger Woods’ Masters win sees Nike stock up by $2bn Stories by Anthony Nlebem

ike’s stock price jumped by $2 billion after Tiger Woods’ remarkable 2019 Master victory. Nike has sponsored Woods since 1996 and has stuck with the golfer after his career ran aground amid a sex scandal, DUI arrest and multiple injuries. Nike quickly released an ad to celebrate Woods’ 15th major championship win on Sunday. Tiger Woods’ stunning win at the 2019 Masters Championship is paying dividends for his longtime sponsor, Nike. The sporting gear company’s stock price rose 2 percent after the golf tournament’s kickoff on April 11 and continued to edge up Monday following his victory, adding more than $2 billion to Nike’s market value. Sales of some Woods-branded items sold by Nike are also jumping. Woods’ first at the Masters in 14 years and his fifth “green jacket” — has captured public attention in the way few sporting events do, marking the epic professional comeback of one of the world’s most famous athletes. Advertisers including AT&T, Gillette and Gatorade cut ties with Woods after a 2009 sex scandal and an arrest for driving under the influence. But Nike, which has sponsored Woods since the start of his career more than 20 years ago, largely stuck with him even after his personal and professional life went into a tailspin. The “Tiger effect” from the tournament win was also enough to boost the stock prices of other golf brands. Callaway Golf spiked as much as 4 percent from the start of the Masters

Championship through Monday. Acushnet Holdings, which owns Titleist, jumped nearly 5 percent in the same period. Nike seemed prepared for Woods’ victory, unlikely, as it seemed. The company was able to trot out a tribute to the golfer the same hour as his Masters win — the message: persevering through adversity. The company said it has had the ad ready to release for years. “It’s crazy to think a 43-year-old who has experienced every high and every low and has just won his 15th major is chasing the same dream as a 3-year-old,” the spot said. Yet while Americans love a comeback, some experts question whether hoisting another Masters trophy will lead to more endorsement deals for Woods. “In the #MeToo era, it will be difficult for Woods to come back as

the mega-endorser he once was,” said Ronn Torossian, CEO of public relations firm 5WPR. “Nike stood by him, and obviously they’re going to capitalize on his win, but I don’t think many Fortune 500 companies will come back to work with him.” And while the win may reflect well on Nike, the company in 2016 dumped its line of golf equipment due to weak sales. It still sells Woodsbranded apparel, but it no longer sells golf clubs, balls or bags. “It won’t materially move the revenue number for Nike,” Wedbush Securities analyst Christopher Svezia said. Nike’s stock has often reflected the ups and downs of its clients. In February, the shares fell after college basketball star Zion Williamson busted his Nike shoe during a game, resulting in a mild knee injury for and taking $1.1 billion off Nike’s market value.

Sports WABU president urges more corporate support for Nigerian boxing ... Praises GOtv for sponsoring GOtv Boxing Night

resident of the West African Boxing Union (WABU), Remi Aboderin, has called on corporate organisations to emulate pay television service provider, GOtv’s support for Nigerian boxing. Aboderin, who is also the Secretary-General of the Nigerian Boxing Board of Control (NBB of C) made the call in Lagos at the offices of Flykite Promotions, organisers of GOtv Boxing Night, which has been sponsored by GOtv since 2014. He noted that the intervention of GOtv in Nigerian boxing has revived the sport, adding that there is a need for many more organisations to support boxing to ensure a speedier return to health. “Nobody connected to Nigerian boxing can fail to see the strides being made by the sport since GOtv intervened in 2014. Their intervention, which has seen them invest huge sums, time, organization, logistics, especially the live broadcast of the event by SuperSport, has rescued our beloved sport from irrelevance. I can tell you that we at the NBB of C are happy, boxers are happy, sub-regional and continental boxing bodies such as the African Boxing Union are also happy for GOtv’s support. The fans, who are crucial to the sport, are similarly delighted,” he said. To sustain the momentum, the WABU President urged other corporate organisations to take a leaf out of GOtv’s book, as doing so will ensure Nigerian boxing’s return to full health will be quicker.

“I want to use this opportunity to plead with corporate organisations to join in the efforts to take Nigerian boxing back into the big time. With more corporate support, it will happen faster. The fact is under five years of sponsoring GOtv Boxing Night and GOtv Boxing NextGen Search; Nigerian boxing has regained prominence on the African and Commonwealth scenes. Our boxers are sought after, as many champions have been made. We need to go a few notches higher and that will happen if others show similar commitment,” he stated. GOtv Boxing Night is approaching its 18th edition, which is scheduled to hold at the Indoor Sports Hall of the Obafemi Awolowo Stadium (formerly Liberty), Ibadan, on Sunday. The eight-fight show will feature two international duels, the ABU lightweight title clash between Oto “Joe Boy” Joseph of Nigeria and Ghana’s Success “Brave Warrior” Tetteh and an international light middleweight clash between Akeem “Dodo” Sadiku of Nigeria and Ekpresso Djamihou of the Republic of Benin. Also on the card is the national super featherweight title bout between Ridwan ‘Scorpion” Oyekola and the champion, Taofeek “Taozon” Bisuga. Other boxers in action include Rilwan “Baby Face” Babatunde, WABU welterweight champion; Ganiyu “Energy” Kolawole, Tope “Esepo” Agbaje, Michael “Holy Mike” Jacobs, Opeyemi “Sense” Adeyemi and Isaac “I Star” Chukwudi.

Juventus shares decline by 22% on back of Champions League exit

talian giant football side, Juventus’ shares fell by nearly 22% on Wednesday after being knocked out of the Champions League by Ajax. The shares recovered slightly on the Milan stock market but were still down by 17% during the early trading. Matthijs de Ligt scored with just

over 20 minutes to go as the Dutch side came from 1-0 behind to win 2-1 at the Allianz Stadium - which meant they won the quarter-final tie 3-2 on aggregate. This will not be good news for the Agnelli family, who are the founders of motor company Fiat and have been running the Serie A

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side since 1923. Ajax’s shares were up by 7.58% after their victory and this has now valued the club at £272million. Cristiano Ronaldo had given his side the lead in the 28th minute when he was unmarked from a corner. Then five minutes later Erik ten Hag’s side were level as Hakim Ziyech’s shot deflected into the path of Donny van de Beek who put the ball home. De Ligt then powered a header past Wojciech Szczesny to give Ajax a shock semi-final place. The Dutch side will play the winner of Manchester City and Tottenham’s quarter-final who play their second leg on Wednesday night. Barcelona knocked out Manchester United on Tuesday to book their semi-final place and will play either Liverpool or Porto in the next round.

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PUMA signs technical sponsorship deal with LaLiga

ports company PUMA has entered into a longterm agreement with the Spanish football league, LaLiga, to become the league’s official technical partner. Starting from the 2019/20 season, PUMA will produce the official match ball and other products for all games in Spain’s top-flight leagues; LaLiga Santander and La Liga 1|2|3. Nike had been the official ball supplier since 1996/97, but this two-decade-plus partnership with the American company has come to an end. With a total audience of 2.7 billion viewers in more than 183 coun@Businessdayng

tries annually and more than 80 million followers on social media, LaLiga is one of the world’s leading sport leagues. This sponsorship will significantly expand PUMA’s on pitch visibility and strengthen its position as a leading global football brand. Both companies share a long history but also a youthful spirit and a vision for growth that will be boosted by this alliance. PUMA is adding LaLiga to a strong roster of PUMA football players, including some of the best players in LaLiga: Luis Suárez, Antoine Griezmann, Jan Oblak, Samuel Umtiti, Santi Cazorla, Marc Bartra, and Giovani Lo Celso.

Friday 19 April 2019

BUSINESS DAY

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Friday 19 April 2019

BUSINESS DAY

Live @ The STOCK Exchanges Prices for Securities Traded as of Thursday 18 April 2019 Company

Market cap(nm)

Price (N)

Change

Trades

Volume

Company

Market cap(nm)

Price (N)

Change

Trades

Volume

PRICES FOR MAIN BOARD SECURITIES (Equities) BANKING ACCESS BANK PLC. 243,484.80 6.85 3.01 537 58,396,894 UNITED BANK FOR AFRICA PLC 227,426.15 6.65 2.31 261 15,980,012 ZENITH BANK PLC 656,186.72 20.90 0.24 285 27,421,194 1,083 101,798,100 OTHER FINANCIAL INSTITUTIONS FBN HOLDINGS PLC 274,598.99 7.65 1.32 177 5,768,933 177 5,768,933 1,260 107,567,033 BUILDING MATERIALS DANGOTE CEMENT PLC 3,220,655.90 189.00 0.53 37 291,559 LAFARGE AFRICA PLC. 185,239.65 11.50 -4.17 99 3,334,988 136 3,626,547 136 3,626,547 EXPLORATION AND PRODUCTION SEPLAT PETROLEUM DEVELOPMENT COMPANY PLC 335,413.40 570.00 - 9 6,789 9 6,789 9 6,789 1,405 111,200,369 REAL ESTATE INVESTMENT TRUSTS (REITS) SKYE SHELTER FUND PLC 1,710.00 85.50 - 1 1,000 UNION HOMES REAL ESTATE INVESTMENT TRUST (REIT) 10,175.81 40.70 - 0 0 UPDC REAL ESTATE INVESTMENT TRUST 14,408.66 5.40 - 0 0 1 1,000 1 1,000 OTHER FINANCIAL INSTITUTIONS NIGERIA ENERYGY SECTOR FUND 411.91 552.20 - 0 0 VALUEALLIANCE VALUE FUND 3,312.39 103.20 - 0 0 0 0 0 0 1 1,000 CROP PRODUCTION FTN COCOA PROCESSORS PLC 440.00 0.20 - 0 0 76,312.80 80.00 - 6 8,085 OKOMU OIL PALM PLC. PRESCO PLC 62,750.00 62.75 - 7 4,116 13 12,201 FISHING/HUNTING/TRAPPING ELLAH LAKES PLC. 511.20 4.26 - 0 0 0 0 LIVESTOCK/ANIMAL SPECIALTIES LIVESTOCK FEEDS PLC. 1,800.00 0.60 9.09 6 211,768 6 211,768 19 223,969 DIVERSIFIED INDUSTRIES A.G. LEVENTIS NIGERIA PLC. 741.24 0.28 -7.14 6 395,093 JOHN HOLT PLC. 182.90 0.47 - 0 0 S C O A NIG. PLC. 1,903.99 2.93 - 2 3,600 TRANSNATIONAL CORPORATION OF NIGERIA PLC 48,371.11 1.19 0.85 94 12,272,406 20,025.01 6.95 0.72 50 1,076,889 U A C N PLC. 152 13,747,988 152 13,747,988 BUILDING CONSTRUCTION ARBICO PLC. 711.32 4.79 - 3 35 3 35 INFRASTRUCTURE/HEAVY CONSTRUCTION JULIUS BERGER NIG. PLC. 33,000.00 25.00 -9.09 23 143,112 ROADS NIG PLC. 165.00 6.60 - 0 0 23 143,112 REAL ESTATE DEVELOPMENT UACN PROPERTY DEVELOPMENT COMPANY PLC 3,897.59 1.50 - 5 18,463 5 18,463 31 161,610 AUTOMOBILES/AUTO PARTS DN TYRE & RUBBER PLC 954.53 0.20 - 0 0 0 0 BEVERAGES--BREWERS/DISTILLERS CHAMPION BREW. PLC. 10,334.94 1.32 - 3 27,530 GOLDEN GUINEA BREW. PLC. 242.22 0.89 - 0 0 GUINNESS NIG PLC 131,422.97 60.00 - 32 79,894 INTERNATIONAL BREWERIES PLC. 197,704.82 23.00 - 9 1,352,139 NIGERIAN BREW. PLC. 519,798.63 65.00 0.23 115 1,210,233 159 2,669,796 FOOD PRODUCTS DANGOTE FLOUR MILLS PLC 53,500.00 10.70 2.88 102 2,579,969 DANGOTE SUGAR REFINERY PLC 171,000.00 14.25 1.79 44 568,367 FLOUR MILLS NIG. PLC. 67,246.23 16.40 - 39 827,264 HONEYWELL FLOUR MILL PLC 9,278.33 1.17 - 13 122,150 MULTI-TREX INTEGRATED FOODS PLC 1,340.10 0.36 - 0 0 N NIG. FLOUR MILLS PLC. 766.26 4.30 - 3 6,062 NASCON ALLIED INDUSTRIES PLC 51,001.69 19.25 - 10 24,813 UNION DICON SALT PLC. 3,676.41 13.45 - 0 0 211 4,128,625 FOOD PRODUCTS--DIVERSIFIED CADBURY NIGERIA PLC. 20,660.22 11.00 - 9 12,602 NESTLE NIGERIA PLC. 1,252,396.88 1,580.00 - 28 6,926 37 19,528 HOUSEHOLD DURABLES NIGERIAN ENAMELWARE PLC. 1,680.31 22.10 - 0 0 VITAFOAM NIG PLC. 4,377.95 3.50 -9.09 11 273,432 11 273,432 PERSONAL/HOUSEHOLD PRODUCTS P Z CUSSONS NIGERIA PLC. 37,521.01 9.45 - 13 93,563 UNILEVER NIGERIA PLC. 195,330.18 34.00 1.49 28 346,520 41 440,083 459 7,531,464 BANKING ECOBANK TRANSNATIONAL INCORPORATED 197,257.68 10.75 2.38 27 260,269 FIDELITY BANK PLC 56,211.11 1.94 3.19 98 6,284,201 GUARANTY TRUST BANK PLC. 1,024,205.04 34.80 0.14 114 1,594,789 JAIZ BANK PLC 14,437.48 0.49 2.08 9 670,300 SKYE BANK PLC 10,687.83 0.77 - 0 0 STERLING BANK PLC. 78,885.75 2.74 -1.46 113 8,127,616 UNION BANK NIG.PLC. 198,021.12 6.80 - 31 175,635 UNITY BANK PLC 9,351.47 0.80 1.27 8 354,000 WEMA BANK PLC. 26,616.38 0.69 1.47 26 1,358,304 426 18,825,114 INSURANCE CARRIERS, BROKERS AND SERVICES AFRICAN ALLIANCE INSURANCE PLC 4,117.00 0.20 - 0 0 AIICO INSURANCE PLC. 5,197.65 0.75 2.74 22 561,354 AXAMANSARD INSURANCE PLC 21,000.00 2.00 5.26 4 8,003,000 CONSOLIDATED HALLMARK INSURANCE PLC 2,113.80 0.26 - 1 2,046 CONTINENTAL REINSURANCE PLC 19,811.94 1.91 - 0 0 CORNERSTONE INSURANCE PLC 2,945.90 0.20 - 2 21,000 GOLDLINK INSURANCE PLC 2,001.98 0.44 - 0 0 GUINEA INSURANCE PLC. 1,228.00 0.20 - 0 0 INTERNATIONAL ENERGY INSURANCE PLC 487.95 0.38 - 0 0 LASACO ASSURANCE PLC. 2,197.03 0.30 - 4 316,000 LAW UNION AND ROCK INS. PLC. 2,320.02 0.54 - 1 40,000 LINKAGE ASSURANCE PLC 4,160.00 0.52 - 0 0 MUTUAL BENEFITS ASSURANCE PLC. 1,760.00 0.22 - 7 6,715,270 NEM INSURANCE PLC 10,613.81 2.01 - 5 210,000 NIGER INSURANCE PLC 1,547.90 0.20 - 3 510,847 PRESTIGE ASSURANCE PLC 2,960.40 0.55 - 3 4,627 1,600.50 0.24 -7.69 16 1,981,102 REGENCY ASSURANCE PLC SOVEREIGN TRUST INSURANCE PLC 2,001.80 0.24 - 5 1,284,500 STACO INSURANCE PLC 4,483.72 0.48 - 0 0 STANDARD ALLIANCE INSURANCE PLC. 2,582.21 0.20 - 0 0 SUNU ASSURANCES NIGERIA PLC. 2,800.00 0.20 - 1 20 UNIC DIVERSIFIED HOLDINGS PLC. 516.46 0.20 - 0 0 UNIVERSAL INSURANCE PLC 3,200.00 0.20 - 0 0 VERITAS KAPITAL ASSURANCE PLC 2,912.00 0.21 -8.70 5 2,000,100 WAPIC INSURANCE PLC 5,353.10 0.40 2.50 20 880,476 99 22,530,342 MICRO-FINANCE BANKS FORTIS MICROFINANCE BANK PLC 11,799.67 2.58 - 0 0 NPF MICROFINANCE BANK PLC 3,361.36 1.47 - 7 51,700

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7 51,700 MORTGAGE CARRIERS, BROKERS AND SERVICES ABBEY MORTGAGE BANK PLC 3,780.00 0.90 - 0 0 ASO SAVINGS AND LOANS PLC 7,370.87 0.50 - 0 0 INFINITY TRUST MORTGAGE BANK PLC 5,922.05 1.42 - 0 0 RESORT SAVINGS & LOANS PLC 2,265.95 0.20 - 0 0 2,949.22 3.02 - 0 0 UNION HOMES SAVINGS AND LOANS PLC. 0 0 OTHER FINANCIAL INSTITUTIONS AFRICA PRUDENTIAL PLC 8,000.00 4.00 - 56 494,226 CUSTODIAN INVESTMENT PLC 37,349.84 6.35 - 3 200,100 660.00 0.44 - 0 0 DEAP CAPITAL MANAGEMENT & TRUST PLC FCMB GROUP PLC. 37,625.15 1.90 -0.52 77 5,229,159 ROYAL EXCHANGE PLC. 1,131.98 0.22 10.00 5 730,025 STANBIC IBTC HOLDINGS PLC 473,113.55 46.20 - 9 70,152 UNITED CAPITAL PLC 14,880.00 2.48 -9.82 235 12,993,928 385 19,717,590 917 61,124,746 HEALTHCARE PROVIDERS EKOCORP PLC. 1,680.29 3.37 - 1 15 817.22 0.23 - 7 861,667 UNION DIAGNOSTIC & CLINICAL SERVICES PLC 8 861,682 MEDICAL SUPPLIES MORISON INDUSTRIES PLC. 544.04 0.55 - 0 0 0 0 PHARMACEUTICALS EVANS MEDICAL PLC. 366.17 0.50 - 0 0 FIDSON HEALTHCARE PLC 6,225.00 4.15 - 8 26,712 GLAXO SMITHKLINE CONSUMER NIG. PLC. 11,002.06 9.20 - 30 123,400 MAY & BAKER NIGERIA PLC. 4,485.61 2.60 1.92 29 924,083 1,063.53 0.56 - 9 268,312 NEIMETH INTERNATIONAL PHARMACEUTICALS PLC NIGERIA-GERMAN CHEMICALS PLC. 556.71 3.62 - 0 0 PHARMA-DEKO PLC. 325.23 1.50 - 1 100 77 1,342,607 85 2,204,289 COMPUTER BASED SYSTEMS COURTEVILLE BUSINESS SOLUTIONS PLC 710.40 0.20 - 3 105,100 3 105,100 COMPUTERS AND PERIPHERALS OMATEK VENTURES PLC 1,470.89 0.50 - 0 0 0 0 IT SERVICES CWG PLC 6,413.06 2.54 - 0 0 NCR (NIGERIA) PLC. 648.00 6.00 - 1 2,000 346.47 0.70 - 0 0 TRIPPLE GEE AND COMPANY PLC. 1 2,000 PROCESSING SYSTEMS CHAMS PLC 1,690.58 0.36 9.09 25 13,838,666 E-TRANZACT INTERNATIONAL PLC 11,088.00 2.64 - 0 0 25 13,838,666 29 13,945,766 BUILDING MATERIALS BERGER PAINTS PLC 2,434.52 8.40 -9.19 14 94,577 CAP PLC 23,800.00 34.00 0.74 4 162,897 CEMENT CO. OF NORTH.NIG. PLC 223,439.52 17.00 4.29 47 837,082 FIRST ALUMINIUM NIGERIA PLC 865.25 0.41 7.89 4 400,000 MEYER PLC. 313.43 0.59 - 0 0 PORTLAND PAINTS & PRODUCTS NIGERIA PLC 1,999.41 2.52 - 2 2,000 PREMIER PAINTS PLC. 1,279.20 10.40 - 1 50 72 1,496,606 ELECTRONIC AND ELECTRICAL PRODUCTS AUSTIN LAZ & COMPANY PLC 2,256.91 2.09 - 0 0 CUTIX PLC. 2,818.12 1.60 3.23 17 907,142 17 907,142 PACKAGING/CONTAINERS BETA GLASS PLC. 27,998.43 56.00 -4.03 1 123,078 GREIF NIGERIA PLC 388.02 9.10 - 0 0 1 123,078 AGRO-ALLIED & CHEMICALS NOTORE CHEMICAL IND PLC 100,754.14 62.50 - 0 0 0 0 90 2,526,826 CHEMICALS B.O.C. GASES PLC. 1,577.57 3.79 - 0 0 0 0 METALS ALUMINIUM EXTRUSION IND. PLC. 1,803.64 8.20 - 3 189 3 189 MINING SERVICES MULTIVERSE MINING AND EXPLORATION PLC 852.39 0.20 - 0 0 0 0 PAPER/FOREST PRODUCTS THOMAS WYATT NIG. PLC. 55.00 0.25 - 0 0 0 0 3 189 ENERGY EQUIPMENT AND SERVICES JAPAUL OIL & MARITIME SERVICES PLC 1,252.54 0.20 - 11 42,030 11 42,030 INTEGRATED OIL AND GAS SERVICES OANDO PLC 59,670.78 4.80 -2.04 51 381,009 51 381,009 PETROLEUM AND PETROLEUM PRODUCTS DISTRIBUTORS 11 PLC 63,104.17 175.00 -1.63 9 21,624 CONOIL PLC 15,960.90 23.00 - 11 5,372 ETERNA PLC. 5,607.82 4.30 - 11 192,477 FORTE OIL PLC. 35,101.87 26.95 - 17 46,943 MRS OIL NIGERIA PLC. 6,354.80 20.85 - 1 300 TOTAL NIGERIA PLC. 66,546.28 196.00 - 20 20,722 69 287,438 131 710,477 ADVERTISING AFROMEDIA PLC 2,219.52 0.50 - 2 60 2 60 AIRLINES MEDVIEW AIRLINE PLC 17,551.17 1.80 - 0 0 0 0 AUTOMOBILE/AUTO PART RETAILERS R T BRISCOE PLC. 376.43 0.32 - 0 0 0 0 COURIER/FREIGHT/DELIVERY RED STAR EXPRESS PLC 3,242.23 5.50 - 0 0 TRANS-NATIONWIDE EXPRESS PLC. 346.95 0.74 - 0 0 0 0 HOSPITALITY TANTALIZERS PLC 642.33 0.20 - 0 0 0 0 HOTELS/LODGING CAPITAL HOTEL PLC 4,801.22 3.10 - 0 0 IKEJA HOTEL PLC 3,637.89 1.75 4.79 3 149,236 TOURIST COMPANY OF NIGERIA PLC. 7,862.53 3.50 - 2 210 TRANSCORP HOTELS PLC 41,042.18 5.40 - 2 10,271 7 159,717 MEDIA/ENTERTAINMENT DAAR COMMUNICATIONS PLC 4,800.00 0.40 - 1 2,400 1 2,400 PRINTING/PUBLISHING ACADEMY PRESS PLC. 199.58 0.33 - 3 2,480 LEARN AFRICA PLC 1,033.74 1.34 - 0 0 STUDIO PRESS (NIG) PLC. 1,183.82 1.99 - 0 0 UNIVERSITY PRESS PLC. 798.11 1.85 - 5 73,268 8 75,748 ROAD TRANSPORTATION ASSOCIATED BUS COMPANY PLC 547.04 0.33 - 1 1,500 1 1,500

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BUSINESS DAY

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Opinion The IMF report on Nigeria: Critique of practical reason THE NEW WEALTH OF NATIONS

Obadiah Mailafia

fortnight ago the IMF board officially released their Article IV Report on Nigeria. As always, it makes interesting reading. Under the statutes of the International Monetary Fund as agreed at the Bretton Woods world economic conference of 1944, the Fund is mandated to midwife the stability of the global economic and financial system. Under Article IV, visitation teams are sent to all member countries to undertake due diligence on the economic and financial health of the member countries and to present a report to the Board. Visitation teams are often sent every January and they spend weeks discussing with high authorities ranging from the minister of finance to the governor of the central bank, banking and finance executives and members of parliament. The dialogues that ensue are often a high intellectual exercise – a battle of wits on economic science, public finance and monetary theory. God help you if you turn up to meet them ill-prepared! The draft is subjected to rigorous debate with the host country and within the Board of the Fund before it is finally released. Whatever emerges has the potential to shape the judgements stakeholders make regarding

an economy. It also determines how local and international investors hedge their bets regarding a country’s prospects. This year’s report comes with a mixture of good and bad news. First, the good news. The Nigerian economy is gradually recovering from recession. According to available data, our economy grew by 1.9% in 2018, up from a mere 0.8% during 2017. The improvement so far has been due to rallying global oil prices and recovery in the manufacturing and services sector. Equally salutary has been improvement in economic fundamentals such as inflation. Headline inflation fell to 11.4% towards year’s end 2018, from a high of 18% in the previous year. Unfortunately, inflation is still a long shot from the CBN’s own target of single digit 6 – 9 percent range. Growth is also unfortunately way to low to make a real dent on poverty. Given that our population grows at an annual average of 3.2%, a growth of 1.8% remains negative in real terms. It really does mean that per capita incomes are likely to remain low. The Fund rightly identifies some of the bottlenecks as being: the yawning infrastructures gap; low revenue mobilisation; governance and institutional challenges; banking sector vulnerabilities; and foreign exchange restrictions. It forecasts growth to reach 2.5% in 2019. The Fund also welcomes the fact that foreign reserves buffers have increased to US$47.4 billion. But there are real concerns about the growing debt, which currently exceeds N24 trillion. The external debt in particular currently hovers around US$67billion and is projected to exceed US$70 billion in 2020. Although the Fund welcomes the fact that the banking and financial system has been in better health than hitherto, they

expressed worry about non-performing loans (NPLS) which mostly come from the power and energy sector. There is also concern that the drive towards structural diversification of the economy has largely been stalled. Other economic fundamentals leave a lot to be desired. Gross national savings, for example, appear to be regressing rather than progressing. They have fallen from 16.00% in 2017 to 13.8% in 2019. The current account balance remains equally shaky. It has fallen from 2.8% in 2017 to -0.4% in 2019 and forecast to fall even farther to -0.2% in 2020. All considered, however, the picture that emerges, on the whole, is a positive one, although critical risks remain in terms of volatility of global oil prices, potential of governance and policy slippages and the menace of grand larceny which defines the path-dependence of the national political economy. Several important policy recommendations have been placed on the table. First, the Fund recommends a revenue-based consolidation to boost public finances and to lower the ratio of interest payments to revenue and to enhance the policy space for priority expenditure. In this connection the Fund welcomes the prospects of tax reforms. They also strongly recommend improvements in excise duties and upward revision of VAT in addition to elimination Continues on page 33

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)

The Pope and the warlords from South Sudan HumanAngle

Femi olugbile

ecently a curious meeting took place at the Vatican, the official home of the Pope. Two men and one woman from South Sudan came calling. Their hands were dripping with the blood of their countrymen. No, they were not there as refugees from the International Criminal Justice system. They are the country’s political leaders, there on the invitation of the Pope. The meeting took place in the course of a two-day spiritual retreat suggested to the Pope by the Archbishop of Canterbury, head of the Anglican Church. It was, in reality, a last throw of the dice by a world that had watched with horror as Africa’s newest nation degenerated into tribal carnage. The Pope’s visitors were President Salva Kiir Mayardit, and his two vice presidents - Riek Machar and Rebecca Nyandeng de Mabior The population of South Sudan is 13 million. Of these, 35.8% are of the Dinka ethnic group. 15.6% are Nuer. The rest are ‘minorities’ such as the Shiluk, the Azande, the Bari, the Kakwa and several other groups. The President is Dinka, and his principal opposition – Vice President

Riek Machar, is Nuer. It was easy to see why the Pope felt a need to make an effort to redeem the South Sudanese people from their selfinflicted hell. South Sudan is a country populated by predominantly Christian black Africans who had been ruled and oppressed over several decades by predominantly Arab and Muslim people from the north. One of the bitterest relics of their long war to free themselves was the reported statement from a Sudanese General, after one of the all too common war incidents when the north’s army had rolled over captured territory in the South ‘You see that Church over there – it will soon be a mosque’. For some passionate Pan-Africanists, the divide between the Republic of Sudan and the independent state of South Sudan was a line in the sand where the long history of Arab conquest, slave trade and discrimination against the African would be halted and reversed. You could recollect sitting in an audience at the National Theatre in Lagos several years ago listening to Chinweizu – the literary critic and Soyinka-gadfly, whose abiding theory, paranoid in the eyes of some, was that Africans was facing imminent extermination from the West, but even more from the Arab, and that the outcome of the then-nascent struggle of the South Sudanese would determine the future survival of the African. People of the school of thought of Chinweizu would be aghast at what has happened since South Sudan’s independence has been achieved, and how the oppression and blood-letting from fellow South Sudanese has been more, in some cases,

than what they endured under the Arabs. In the midst of the meeting at the Vatican, an extraordinary event took place. The Pope knelt down, and one by one, kissed the shoes of the Sudanese leaders. The significance of the motion would need to be grasped in its awesome fullness. This arthritic 82-year-old man was the successor of Apostle Peter, appointed by Jesus Christ himself to build his Church. Despite the fractures and schisms in the Christian Church, he was, in everything but name, the spiritual head of Christians, worldwide. The Pope implored the South Sudanese leaders, in the name of Christ, to stop the killing, and let their people have peace. South Sudan is a country with a median age of 17 years and a GDP per capita $600. The country is poverty stricken, with poor health indices, as a result of endless civil strife, but it is a country with vast reserves of oil that could make it very rich indeed. One in five of its youths is unemployed. In 1956 Sudan became an independent nation. Soon there was civil war between the Khartoum forces and Anya-Nya rebels from the south. In 1977 oil was discovered, mostly located in the Southwest. But the ongoing civil war made it hard for the resource to be explored or developed. In 1983 John Garang formed the Sudan People’s Liberation Army (SPLA) as the arrowhead of a southern rebellion against the Khartoum government’s plan to diContinues on page 33

Femi Olugbile is a Writer and Psychiatrist. Comments to synthesiz@gmail.com’

Good Friday moments Tales from the main road

Eugenia Abu

or as long as I can remember, Good Friday was a day when we went to church, went on a fast and cut out red meat in our diet. So there was fish, which I love, in our family diet on good Friday. Grilled, sautéed in a nice peppery tomato stew or served with frijol, a special bean meal with fish, famous with the Brazilian quarters in Lagos. This tradition has been kept in my own family coming down from my Parents. I am catholic you see and it is a special tradition among Catholic and Christian brethren to fast and pray more and get more charitable during the Lenten season. But Good Friday is beyond the food we eat. In fact, it is an important day in Christendom, signifying the day Jesus was crucified and died, rising from the dead three days after at Easter. Nothing is more humbling than to understand the meaning of sacrifice in the holy week, as Jesus died for all our sins and taking the ultimate sacrifice for all of humankind. The key word here is sacrifice and the second key word is triumph. Within Christendom, that Jesus rose from the dead is victory over sin and death A triumph that should be a lesson to all mankind. The ultimate sacrifice that should tell us a thing or two about selflessness. In a world increasingly slanted towards selfishness, a silos mentality and unkindness’s, good Friday moments must be taken seriously by all. The Lenten period with all its sobriety of fasting from food and bad habits, charity and prayerfulness culminating in Good Friday and Easter must remain a reflective period for all of mankind. As we participate in the good Friday observances of deep prayer and deep mourning for the crucifixion of Jesus Christ, we must remain steadfast that the sacrifice that Jesus made cannot be meaningful if we continue in our old ways and refuse to do good. What is it that we indulge in for money today that is illegal? From the human suffering in human trafficking and sex slavery, to kidnapping and needless killings, from the politics of blood and lies and self-entitlement that is beginning to define us around the world, to sloth, greed, and barefaced pen robbery in offices and armed robbery. Nigeria is made up of us all, all of us who dare call ourselves Nigerians, each and every one must have a good Friday moment knowing that your wife is not your slave, your husband is not your houseboy and your children are not your minions. What about persons who maltreat their domestic staff, their subordinates in their offices and any small person who work for them? Mechanics, drivers etcetera. Man is called through the world but once and after death we are told in all the holy books comes judgement. So where are you standing even as a human being whose duty is to make another person’s life better? How much sacrifice are you willing to make in traffic, to be decent and full of integrity? As the bible tells us, Jesus sacrificed for humanity and triumphed. But who have you ever sacrificed for even in the smallest things in life. Your food, let another have, a bottle of water, allowing a very sick person go ahead of you in a hospital queue, leaving your seat for an older person in church, helping a dying man/woman, paying someone else’s school fees other than your children, bearing the slightest pain for another person’s comfort. Like Judas Iscariot who betrayed Jesus, how many persons have you spoken ill of and buried alive? Is gossiping your new Olympic sport? How kind are you to your daughter in law, sister in-law, son in law, mother in law, father in law? When last did you make a sacrifice for your parents or do you consider them those old people? When last did you go and visit with them? Did you give food to street children this Lenten period or give out your old clothes and I do not mean torn, cockroach infested clothes. Our Good Friday moments must give rise to the importance and symbolism of sacrifice and reflection, no matter your religious inclination, so we know that there is no gain without some pain. Let us warehouse our thoughts today for our nation in the direction of sacrifice while understanding the ultimate triumph.

Eugenia Abu is a broadcaster, writer, trainer, band and multimedia strategy expert and media consultant. Contact. abu_eugenia@yahoo.com

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