BusinessDay 19 Jun 2020

businessday market monitor

Biggest Gainer MTNN 0.43 pc

N115

FMDQ Close

Everdon Bureau De Change

Bitcoin

NSE

Foreign Exchange

Biggest Loser NB N42

24,933.41

Foreign Reserve - $36.3bn Cross Rates GBP-$:1.29 YUANY - 54.66

Commodities -9.52 pc Cocoa US$2,257.00

Gold $1,724.27

news you can trust I ** FriDAY 19 june 2020 I vol. 19, no 588

Development financing offers path to metering all electricity customers … multilateral institutions can provide long-term, naira financing for energy projects – experts … FG says working out solution on meters stuck at ports over duty concerns ISAAC ANYAOGU (Lagos) & HARRISON EDEH (Abuja)

W

ith over N40 billion monthly loss due to poor collections by power distribution companies (DisCos), mass metering of every electricity user can cut down losses and multilateral institutions are best positioned to provide financing, experts say.

With the right conditions, multilateral organisations like development banks can provide long-term, naira financing

₦4,173,337.58

N300

Sell

$-N 443.00 454.00 £-N 540.00 555.00 €-N 475.00 493.00

+0.07

Crude Oil $ 41.37

I

Buy

g

www.

Market

Spot ($/N)

3M 0.00 4.15

I&E FX Window CBN Official Rate

386.00 361.00

Currency Futures

NGUS may 26 2021 419.73

($/N)

fgn bonds

Treasury bills

g

6M

5Y -0.95

0.00 2.32

8.40

NGUS may 31 2023 492.84

@

10 Y 0.00

30 Y -0.16

10.97

12.08

NGUS may 28 2025 578.69

g

How Edo sustains learning despite school closures E STEPHEN ONYEKWELU

do State in Nigeria’s South-South region is reaping the fruits of two years of purposeful investment to transform basic education through the application of electronic technology to teaching

Shows purposeful investment in education technology via EdoBest@Home With World Bank technical assistance, results-based financial resources

and learning as learning has been sustained in the state despite COVID-19.

The outbreak of COVID-19 has led to school closures which have affected an estimated 253

million learners who live in 47 sub-Saharan African countries.

Continues on page 30

Continues on page 30

Inside

NIMASA targets N1bn monthly revenue from operating floating P. 4 dockyard BusinessDay National Conversation: What Panellists Said Ps. 26,27

Lagos flood: Vehicles stuck in gridlock around Ladipo Bus-Stop, Apapa-Oshodi Expressway, caused by heavy flooding, yesterday. The rain/flood crippled economic activities in Nigeria’s commercial capital.

2

Thursday 19 June 2020

BUSINESS DAY

www.businessday.ng

https://www.facebook.com/businessdayng

@Businessdayng

Thursday 19 June 2020

BUSINESS DAY

www.businessday.ng

https://www.facebook.com/businessdayng

@Businessdayng

3

4

Friday 19 June 2020

BUSINESS DAY

news NIMASA targets N1bn monthly revenue from operating floating dockyard ...Opens talks with NPA, managing partner to begin full operation AMAKA ANAGOR-EWUZIE

T

he Nigerian Maritime Administration and Safety Agency (NIMASA) says it is projecting to generate nothing less than N1 billion in revenue per month from the operations of its newly acquired multimillion-dollar floating dockyard.

Speaking with newsmen in Lagos on Thursday to mark the first 100 days in office of the new management of NIMASA, Bashir Jamoh, director general of NIMASA, said to actualise this, the agency has opened discussions with the Nigerian Ports Authority (NPA) and the intending managing partner to begin operation of the dockyard.

He said NIMASA is also expecting job creation for about 350 Nigerians under

five segments of the operation. The operation is expected to provide employment to about 75 workers per department.

“We have been discussing with the managing director of the NPA to move our floating dock from its present location at the Naval Shipyard to the Continental Shipyard owned by the NPA,” Jamoh said.

“Though, we found out that there is an existing joint venture partnership between NPA and another company managing the Authority’s dockyard but because of our own floating dock, the NPA decided to move its dockyard to somewhere in Snake Island, and the NPA is also winding up its joint venture agreement with the company as we speak, “ he said.

According to him, NIMASA has also signed a memorandum of understanding

with International Oil Companies (IOCs) that are doing business with the Nigerian National Petroleum Corporation (NNPC) to take their ships to NIMASA’s dockyard for dry-docking when the dockyard begins full operations.

He assured that the agency would begin full operation of the floating dockyard any moment from now, adding that the agency intends to have managing partner to do the technical management of the dockyard.

He stated that the NIMASA would be filing in an application with the Infrastructure Concession Regulatory Commission (ICRC) to approve the public private partnership (PPP) arrangement for the management of the floating dockyard.

Jamoh said the NPA would come in as the owner

of the Continental Shipyard, NIMASA as the owner of the floating dockyard, while an independent player would be the technical managing partner.

On maritime security especially as regards Deep Blue project, Jamoh stated that NIMASA is presently at 75 percent stage in the acquisition of the platforms required for the complete take-off the project, adding that it is only the local content aspect of the project that is remaining, which was delayed by the outbreak of COVID-19 pandemic.

He noted that the agency in the last three months of the management has been receiving several commendations for its strict fight against piracy, sea robbery and other illegalities on the waterways as well as the entire Gulf of Guinea region.

Insecurity: Buhari blows hot, says service chiefs have failed

... Seeks synergy amongst security agencies Tony Ailemen, Abuja

P

resident Muhammadu Buhari on Thursday ordered service chiefs to do more than they are currently doing to tackle insecurity in the country, adding that their best was not good enough.

The president also warned that henceforth, excuses would no longer be tolerated, saying he expected everyone to live up to expectations going forward.

This was disclosed by BabaganaMonguno,nationalsecurity adviser (NSA), while addressing State House Correspondents at theendofthepresident’smeeting with the service chiefs.

Monguno said Buhari also ordered him to meet with governors of the North-West states, including that of Niger State, in order to know what the problems were and find solution.

He said the president also raised concerns over issues of unregistered SIM cards.

“Another area which raises concernistheuseofunregistered SIM cards. In my own brief, I

dwelt on that issue and I raised concernthatwhateverweintend to achieve, we will not be able to get to the promised land unless we wrestle this issue of unrestrained acquisition of unregistered SIM cards,” Monguno said.

“Mr. President has directed that I, as the national security adviser, link up with the minister of communications and digital economy to work out a blueprint to ensure the end of the irresponsible use of any SIM card. Of course, I urged my colleagues, the Inspector General of Police and director general of Department of State Services, to help in this issue.

“Again, my office is going to call on certain governors starting with the governors of the North-West zone including the governor of Niger State, to come over into Abuja, so that I meet with them and my colleagues in intelligence and security.”

The meeting held inside the Presidential Villa, Abuja, where Buhari was briefed on how the increasing security challenges across the country were being tackled.

FG to add dexamethasone to list of drugs for COVID-19 treatment

... signs bilateral agreement with Korea to grow cooperation on public, primary health … June 21 domestic flights resumption date not feasible – DG NCAA

President Muhammadu Buhari (r) with Babagana Monguno, national security adviser, during a security meeting at the Presidential Villa in Abuja, yesterday.

TONY AILEMEN, INNOCENT ODOH & HARRISON EDEH, Abuja

T

CBN to fund 9 commodities value chain with N432bn ... unveils plans for non-interest facility in ABP, others Hope Moses-Ashike

T

he Central Bank of Nigeria (CBN) has unveiled plans to release a framework for the integration of noninterest window in all its intervention programmes, particularly the Anchor Borrowers’ Programme (ABP) and the Targeted Credit Facility (TCF) to support households and Micro, Small and Medium Enterprises (MSMEs) affected by the COVID-19 pandemic.

The bank also plans to fund the value chains of nine commodities to the tune of N432 billion in the 2020 wet

season.

Isaac Okorafor, CBN’s director of corporate communications, and Yila Yusuf, director of development finance department, disclosed this at a stakeholder meeting on Thursday to review the successes recorded under the ABP and the strategies for the 2020 agricultural wet season. The duo jointly represented Godwin Emefiele, the CBN governor, at the meeting.

According to Okorafor, the creation of a non-interest window followed appeals by concerned stakeholders for farmers across the country to also be considered for fundwww.businessday.ng

ing under the non-interest window.

While revealing that work had been concluded on the funding document, he said the policy would be issued shortly outlining how farmers under the category could apply and benefit from the agricultural programmes of the CBN. Okorafor said the bank, in the 2020 agricultural wet season, was committed to aggressively fund its agricultural programmes and spur farmers along select crop value chains to prevent the country from sliding into a recession, as is currently being experienced in some ma-

jor economies of the world.

Speaking on the Targeted Credit Facility (TCF) of the bank aimed at alleviating the impact of the coronavirus on individuals and small businesses, Okorafor noted that the bank was determined to push the economy to ensure Nigeria does not experience consecutive quarters of negative growth. Accordingly, he said that Emefiele had directed the CBN’s development finance department as well as the NIRSAL Micro-Finance Bank (NMFB) to fast-track the approval process of loans, which he stressed were to help restore businesses and livelihoods.

https://www.facebook.com/businessdayng

heFederalGovernment on Thursday said it was working to add dexamethasone amongst the drugs used for the treatment of coronavirus patients.

“We are going to ask our clinicians to consider it in their trial,” Osagie Ehanire, minister of health, said at the daily briefing of the Presidential Task Force on COVID-19 in Abuja.

“These are not medicines that we should be using, these are medicines that doctors use and luckily, this medicine is not new. It is used for other purposes. It is a steroid that is used for general purpose and is found to be useful in this case,” Ehanire said.

“It is easy to try, it does not havesideeffect,theusualdosage iswellknownanditisnotterribly expensive or terrible unavailable. So we are going to ask our clinicianstoconsideraddingitto the trial to see the results in our circumstance,” he said.

Dexamethasone has been approved by the World Health Organisation WHO as “cure” drug for the treatment of critically-ill coronavirus patients.

Thedrugwhoseinitialtrialshave @Businessdayng

been proved successful, according to the health minister, will now be approved by Nigeria for the treatment the disease.

Ehanire said the Ministry of Health would also be prioritising the procurement of oxygen generators alongside ventilators, adding that “experience so far shows that oxygen supplementation is in high demand in treatment”.

He announced the signing of a bilateral agreement between Nigeria and the Democratic People’s Republic of Korea on cooperation in the area of public health and medical sciences.

The agreement, he said, is to start cooperation between both countries in these areas of exchanging experience in public health and health sciences, as well as the facilitation of visits by scientists and exchanging information in research.

The minister, while also speaking on the current strike by members the National Association of Resident Doctors, acknowledged that the doctors “have issues that they are frustrated about” but stated that government was engaging with them with a view to halting the strike they embarked upon since Monday.

Thursday 19 June 2020

BUSINESS DAY

www.businessday.ng

https://www.facebook.com/businessdayng

@Businessdayng

5

6

Thursday 18 June 2020

BUSINESS DAY

news

Money market rates to rise on anticipated FX, OMO bills auction by CBN ... as Forex turnover rises by 314.76% on I&E window June 2020 was oversubscribed significantly by 263 percent due to ample liquidity in the market. The auction witnessed healthy demand across all the tenors with bid-to-cover ratios settling at 3.44x (5-year), 2.47x (15-year), and 4.73x (30-year).

The DMO allotted bonds worth N100 billion across the 5-year (N32.99bn), 15year (N16.22bn), and 30-year (N50.79bn) tenors at marginal rates of 8 percent (-120bps), 11 (-70bps), and 12.15 percent (-45bps), respectively.

At the foreign exchange market, the naira gained N0.30k as the dollar was quoted at N385.70k on Thursday compared with N386.00k quoted on Wednesday at the Investors and Exporters (I&E) forex window, data from FMDQ showed.

The daily FX turnover rose by 314.76 percent to $66.61 million on Thursday from $16.06 million recorded on Wednesday at the I&E window.

igeria’s money market rates are expected to rise marginally today - Friday following anticipated foreign exchange (FX) retail auction and Open Market Operation (OMO) bills auction by the Central Bank of Nigeria (CBN), according to FSDH Research.

Money market rates declined by an average of 530bps as the system liquidity improved following OMO bills maturities worth N337.94 billion on Thursday.

The Nigerian Treasury bills (NT-bills) market closed on a positive note on Thursday, with average yield across the curve declining by 9bps to close at 3.30 percent.

A report by FSDH research reveals that at the Primary Market Auction held on June 17, the CBN sold NT-Bills worth N14.61 billion across the 91-day (N2bn),

182-day (N2bn), and 364day (N10.61bn) tenors. The stop rates across the 91-day, 182-day, and 364-day tenors cleared lower at 1.8000 percent (-20bps), 2.0400 percent (-16bps), and 3.7460 percent (-27bps), respectively. The auction was oversubscribed by 509 percent with bid-tocover ratios settling at 6.80x (91-day), 7.62x (182-day), and 5.67x (364-day).

The Overnight (O/N) rate declined by 5.22 percent to close at 3.70 percent. The Open Buy Back (OBB) rate declined by 5.37 percent to close at 2.80 percent.

In the OMO bills market, average yield across the curve remained unchanged at 4.86 percent, the report states.

The FGN bond market closed on a positive note yesterday, as the average bond yield across the curve cleared lower by 30bps to close at 5.96 percent.

FGN Bond Auction for

Nigeria, a symbol of hope - Oladele

AXA Mansard drives USSD code usage as alternative channel for service consumption

T

XA Mansard, a member of the AXA Group, has announced its plans to deepen insurance and pensions penetration while improving the investment culture in the country by driving its USSD code usage as an alternative channel for service consumption.

The USSD code *987# tagged the ‘one code for life’s big issues’, is designed to give users a more convenient way to purchase and manage their AXA Mansard product plans. Users will have an easy, quick and convenient channel to buy new products and policies, renew existing policies and make payments for Value Added Services. The USSD code is intended to improve customer experience and reduce turnaround time for all transactions.

Speaking on this initiative, Bayo Adesanya, chief digital officer at AXA Mansard, notes, “The digital world is advancing at a very fast pace. Organizations thus need to match the

Hope Moses-Ashike

N

he last is yet to be heard as Nigeria remembers heroes of democracy, as a member of the All Progressives Congress (APC) and former aspirant to the Oyo State House of Assembly, Yekini Olawuwo Oladele, calls Nigeria, a symbol of hope as he wished Nigerians, ‘Happy Democracy Day’.

As Nigeria celebrated this year’s Democracy Day, according to Oladele, it is not just a day comprising 24 hours like the rest of the days in the calendar, “It is a symbol - a symbol that signifies Hope.” The APC chieftain however stated that the whole process might looked slow, he however laud the system, saying it is very applaudable.

He however berated Nigerians trying to sabotage the efforts of the Nigerian government, telling such to be careful not to create wrong impression in the minds of other well-meaning Nigerians, applauding President Muhammadu Buhari for honouring the memory of the late Bashorun Moshood Kashimawo Abiola (MKO), and what the late MKO stood for.

According to Oladele, it is a day we need to pause and ask ourselves if we have achieved the ideals of democracy several years down the line. He however agreed that we have had challenges and drawbacks but we have made progress too.

In his final remark, he urged Nigerians to remain positive and optimistic that collectively we would pull through as a nation, using the opportunity to felicitate with the former governor of Lagos State, Akinwumi Ambode, as he clocks 57 years, President Muhammadu Buhari, Senate president, Lawan, IGP - Idris), the APC national leader, Bola Tinubu, House of Representatives speaker, Femi Gbajabiamila, and others wishing all Nigerians a Happy Democracy Day.

A

www.businessday.ng

pace of this dynamic world by designing initiatives and creating platforms that allow their consumers to remain at the cutting edge of global digital transformation.”

The USSD code also enables subscribers to perform various activities which include purchase airtime, payment of utility bills, account opening and account balance check.

Also speaking about the initiative, Deji Tunde-Anjous, the CEO at AXA Mansard Investments, states, “The world is rapidly accepting the realities of a remote lifestyle and the onus is on every service provider to ensure customers are met at the point of their needs. For us at AXA Mansard Investments, our customers have found the USSD code at these times extremely useful and convenient in making liquidations requests and monitoring their accounts.

We will continually seek for ways to create a delightful client experience that enables people better manage their finances.”

https://www.facebook.com/businessdayng

@Businessdayng

Friday 19 June 2020

BUSINESS DAY

news Samsung’s Galaxy A series offers flagship features, affordability to Nigerian users FRANK ELEANYA

W

ith the ne gative impact of the COVID-19 pandemic on the purchasing power of many consumers in Nigeria coupled with flooding of the smartphone market with multiple brands, Samsung says it is confident that its latest Galaxy A series satisfies the desire for premium quality and affordability in one place.

The Samsung Galaxy A Series line-up is inexpensive compared with the company’s flashy Galaxy S and Galaxy Note devices.

“We are committed to bridging the gap between flagship and affordability,” Adetunji Taiwo, Samsung’s Hod Information and Technology Department, says in a statement.

At the basics, the Galaxy A series consists of about six smartphones successfully combine premium experience usually seen in Galaxy S-series and Note-series devices. The A71 and A51 both have a Quad camera set up and an AMOLED display.

AMOLED is a type of OLED display and an acronym for Active Matrix Organic LightEmitting Diodes.

The A31 especially combines these premium features, a 128 GB memory, as well as a power battery of 5000mAh, priced at N100,000.

The A21 brand comes with a Quad camera, a 6.5” display with a 5000mAh battery, and the A11 equally priced as low with a 6.4” Infinity O display screen. Overall, the Galaxy A smartphone is available for as low as N30,000 and as steep as N166,000.

itel Mobile, Olamide unveil P36, P36 PRO smartphone series LUCKY NWANEKWU

i

tel Mobile has introduced its flagship power series itel P36 and P36 Pro LTE at its first virtual product launch in Lagos.

The company also unveiled famous Nigerian musician, Olamide, as its brand ambassador.

In a statement issued by the company, the P36 series consolidates the smartphone for everyone brand’s investments in mobile communication offerings that are budget-friendly, durable and reliable.

The statement also notes that the series advances the legacy of long-lasting battery performance with a 72-hour battery life and internet connectivity upgrades.

Through detailed under-

standing of the consumer, the brand says it has satisfied mobile communication needs and earned significant recognition over the years. In 2019, the International Data Corporation (IDC) ranked itel Mobile as one of the top 4 smartphone players in the Middle East and Africa. It is also the global number one feature phone player, according to another 2019 report from the IDC. “The introduction of itel P36 and P36 Pro LTE affirms itel Mobile’s sustained push towards innovative and stylish smartphone offerings at a budget-friendly price. It’s also about value creation for the consumer with major improvement on features and specifications that surpass what is obtainable in the market”.

Zimvest set to host inaugural economy conversations series BUNMI BAILEY

Z

edcrest Investment Managers (Zimvest), a digital private wealth and investment management firm, will hold its maiden thought-leadership series named “Zimvest Economy Conversations” on Saturday, June 20, 2020.

Zimvest, the newly launched investment management subsidiary of Zedcrest, plans to be at the nexus of a continuing conversation series around investment management and economic policy landscapes.

According to the company, the leadership series was designed to improve investment management competencies on the part of both investors and financial services providers.

The maiden edition of the virtual event, themed, “The Economic Landscape and Investor Preferences in Post-pandemic Africa,” seeks to explore the changing dynamics of the fiduciary relationship between the investor and the financial institution. Today’s investors want to take a more active approach to money man-

agement, evidenced by the massive shift to self-investing in Fixed-Income instruments and Alternative assets.

Speaking on Zimvest’s launch and the Economy Conversations series, Adedayo Saheed Amzat, the group managing director of Zedcrest, said, “This episode will also look at the immediate economic environment and suggest practical actions that businesses and investors can take as the economy resumes from the lockdowns effected in the wake of the COVID-19 health crises, and the attendant economic woes the virus leaves in its wake. It is hoped that businesses/investors will get more clarity as to the required next steps to steer their Businesses & Investments back to growth.

“We are in a strong position to lead this dialogue as we have a strong reputation as financial market experts with recognition coming from the likes of the FMDQ and BusinessDay. Our global markets subsidiary, Zedcap Partners, won the “best brokerage service provider” award at the 2019 FMDQ Gold awards. www.businessday.ng

7

Flooding: Economic activities paralysed as nature empties its bowel in Lagos CHUKA UROKO & Joshua Bassey

E

conomic activities were paralysed on Thursday in Lagos, Nigeria’s commercial capital, as nature in its fury emptied its bowel in what was clearly a torrential down-pour, causing massive flooding in many parts of the sprawling city.

The early morning rain that continued till late afternoon left many homes and roads flooded, making movement difficult and impossible in some locations.

The rain, which started from the previous day, Wednesday, brought untold hardship to Lagos residents.

Though both the Mainland and Island neighbourhoods in the state were affected, the Island was worse off. In Lekki, for instance, almost the entire length of Admiralty Way was heavily flooded causing a serious slow vehicular movement. It was the same story in other streets. VGC was also flooded.

The Thursday morning experience belies claims by the Lagos State government that much was being done to contain the expected flooding that would result from

the predicted 240 days of rainfall in the state.

“The forecast is 240 days of rainfall for Lagos; we are aware of it and we are working very hard on that. As the Special Adviser to the Governor on Drainage and Water Resource, I can assure you that we have been dealing with the canals. As I speak to you now, we have been dealing with the tertiary drains, primary drains and secondary drains,” said Joe Igbokwe in Lagos recently.

Igbokwe, who was a guest speaker at a Webinar on the impact of the predicted 240 days of rainfall on real estate hosted by Nigerian Institution of Estate Surveyors and Valuers (NIESV), Lagos branch, admitted that it was the duty of government to take water away from the environment.

“But don’t forget that Lagos is a coastal area; we are having issues and some people are building on the channel, some people have made these channels where they dump their dirt. They have built so close to the setbacks that you cannot make way for water to go away,” he lamented

In Ikoyi, there was very slow movement of vehicles along Orsbone Road which was heavily flooded. It was the same story on Kingsway Road up to Falomo Bridge. Awolowo Road was also flooded, causing slow movement.

On the mainland, Ikeja was a sad story, especially from Ikeja Under Bridge down to Anifowose area. It was the same sad experience in Agege, Apapa GRA, Surulere, Amuwo Odofin, and other locations.

“It took me nearly three hours to come to Alausa, Ikeja for a stakeholders meeting on Lekki Regional Roads,” a resident who lives in Lekki Phase 1 told BusinessDay on phone, noting that it has always been bad in that axis whenever it rained, but it had never been as bad as it was this Thursday.

Many transporters abandoned their vehicles and remained at home to avoid breakdowns under the rain. This worsened the experiences of commuters, especially office workers who had to be in office.

The flood water also swept some debris in its path, causing some drains and drainage chan-

nels to become blocked. Residents of Ijesha in Surulere were seen dealing with this even as the flood continued to frustrate their efforts on the street connecting the area to Cele Bridge on Apapa-Oshodi Expressway.

Meanwhile, motorists and commuters were thrown into difficulty navigating their way through town as the long hours of heavy rainfall triggered unprecedented flooding across the sprawling city, leaving many access roads in the state flooded with resultant traffic jams.

While no parts of the city was really spared the ordeal, areas like Eti-Osa-Lekki Expressway, Ahmadu Bello Way, and part of Awolowo Road, all on the Island were worse off.

A similar scenario was noticed at Mile 2 on Apapa-Oshodi Expressway, as well as on Mile 2, inward Suru-Alaba on LagosBadagry Expressway.

Also not spared were parts of Ikeja, the state capital, including Awolowo Way, Oba Akran and Ikeja-Along on Lagos-Abeokuta Expressway.

Sadiya Umar-Farouq (r), minister of humanitarian affairs, disaster management and social development, receives Abubakar Bagudu, governor, Kebbi State, who was on a courtesy visit to the minister in Abuja, yesterday.

NAN

N700m fraud: Court validates corruption Not less than $20bn investment lost annually charges against Ize-Iyamu, four others on delayed oil sector reforms - NNRC

A

Federal High Court sitting in Benin City, on Thursday, June 18, 2020, ruled that the charges bordering on a N700 million money laundry case against former candidate of the People’s Democratic Party (PDP) in the 2016 Edo State governorship election and four others by the Economic and Financial Crimes Commission (EFCC), are ‘not defective.’

The other four defendants in the suit are former Deputy Governor of Edo State, Lucky Imasuen, PDP chairman in Edo State, Dan Orbih; Tony Aziegbemi and Efe Erimuoghae.

The presiding Judge, Justice M. G. Umar ruled that the charges filed by the Commission against the Defendants were not defective.

The prosecution counsel, Francis Jibro, told the court that the matter was for ruling on the competence of the eight-count charges preferred against the defendants, who had at the

court’s last sitting challenged the charges because they contained the name of Chief Tony Anenih, who is now deceased.

After the ruling, counsel to the first defendant, Charles Edosomwan, told the court that he had filed a motion challenging the jurisdiction of the court.

“In spite of the ruling, we have a motion dated June 1, 2020, challenging the jurisdiction of this honourable court to entertain proceedings,” he said. The same position was canvassed by counsels to the other defendants.

However, Jibro told the court that based on the ruling of the court which found the charges not defective, the next thing was for the defendants to take their pleas.

Ferdinand Orbih, counsel to Dan Orbih said he was not challenging the ruling of the court but the jurisdiction of the Federal High Court to hear the matter. Justice Umar adjourned the case to July 2.

https://www.facebook.com/businessdayng

HARRISON EDEH, Abuja

T

he continued delay in the reform of the Nigerian Petroleum Industry has resulted in the loss of not less than $20 billion in direct investments annually, Nigeria Natural Resource Charter (NNRC) has said.

This information was given during a webinar conference held by NNRC and monitored by BusinessDay in Abuja.

While calling for capacity development in the oil and gas industr y, Tengi George-Ikoli, project coordinator of NNRC, states that improving the competence of staff through training and providing incentives can safeguard against narrow rent seeking and promote overall organisational effectiveness. @Businessdayng

“Despite the disclosure of information by NNPC in recent times, it is important to examine the implications and unintended consequences of increased information disclosure. Specifically, shining light on some information may leave other issues in darkness.

“Furthermore, transparency or information disclosure is not an end in itself. It is instrumental for seeking accountability.

“Too much emphasis on information disclosure is misplaced, especially when the assumption that the availability of information incentivises good behaviour among decision makers fails,” he says.

Other speakers maintain that information disclosed by the NNPC has to be useful, and civil society and the public have to be able to understand and use it.

8

Thursday 19 June 2020

BUSINESS DAY

www.businessday.ng

https://www.facebook.com/businessdayng

@Businessdayng

Friday 19 June 2020

BUSINESS DAY

comment

9

comment is free

Send 800word comments to comment@businessday.ng

Our man in Suleja and twelve tips to protect your children from rape Tales from the main road

Eugenia Abu

I

am starting this column with 50-year-old Peter Ayemoba who has been having an incestuous relationship with his two daughters for six years after his wife died. While this is heart-breaking, it is not new. I looked at the picture of the man searching for his reasons and I shuddered. This piece of trash actually slept with both his daughters now 20 and 22 years old and I am shattered.

He threatened to kill them and commit suicide if they denied him as if he was asking for sweets. He defiled them, threatened them and destroyed them.

How are they now to function in the real world? “You slept with your father” is a comment that will trail them for the rest of their lives. The shame. The stigma… He wanted to feel warm, he said, as he had missed his late wife, the mother of the said daughters.

My mind is unable to fathom what kind of punishment to reserve for an evil man like this. Peter Ayemoba has destroyed his family. His current wife did not know and his sons did not know. Sometimes a girl has nowhere to turn when facing abuse. And when it’s your father, a man you trust, a man who is expected to protect you, how do you look at him, where should you go? I have met many women who have been guillotined by their father since they were children, by an uncle, by a brother, because really when you rape a girl, you have decapitated her and when it’s a family member, its double tragedy. Ask Oprah Winfrey. She has

succeeded irrespective of that abuse by a family member when she was young.

But many young girls never go past their pain. They end up doing drugs to deaden the pain, they run away from home or they become women of easy virtue. It’s a hard road.

We are surrounded by so many broken women whose journeys we do not know. Some women resort to food to forget their sorrow, too much talk or even fundamental religiosity.

Today with the spike in rape cases, the nation should worry. What’s going on with our men? It’s time for national psychotherapy. What is going on?

What are the underlying issues? Why are toddlers being raped? What is the psychological evaluation of these men?

Also remember that within our semiculture are herbalists and spiritualists who advise men to commit incest and it will make them rich or as they do in South Africa, take a toddler to cure HIV Aids or as they say in other climes, be the first to sleep with your daughter.

Utter garbage. Sick, sick, sick! What about law enforcement who re-victimise the rape victim by raping her in custody? Our issues are numerous and all stakeholders must come together to address this disaster gripping us by the jugular. Who has been punished appropriately with regard to all of the above? This is the big question that is yearning for answers. While we are pondering and thinking through who should act on all of this, let us now look at tips to help your children. I have five birth daughters so I am like an eagle and some of these tips I have applied them in my home. Hope they work for you.

Educate your daughters and sons about inappropriate touching whether its uncle, daddy or even Mummy. Sons have been known to be destroyed by stepmothers as girls have been known to be destroyed by stepfathers even by their fathers as in Ayemoba’s case.

Tell them what part of their body no one should touch even as a joke and they should tell the person to stop it in no uncertain terms and report it.

It is harder when that person is your father. Who do you report to? Your mother who may not believe you and if your mother is late in the case of the Ayemoba sisters, a relation.

How are you with your driver?

Drivers tend to be unduly familiar with your daughters as they go to school and when it is an only daughter can take advantage of your daughter. Do the needful. Let the help go with them.

Follow your daughter to school at least once a week and pick them from school yourself at least twice a week. Allow them to be free with you, so they can tell you anything.

Let your male workers stay outside your home. Always give them money to go and eat rather than allow them eat from your Pot. Except it’s a festivity, that’s how it has always been in my house.

None of my daughters were allowed to answer the door alone. When they were growing up. You go to the door in pairs. Children have been groomed by friends of their father or an Uncle at the door especially when they are alone.

When its late, only an older person should answer the door.

Teach your daughters to be familiar with their environment and be suspicious of even their best friends who can set them up for gang rape. Their boyfriends can also be culpable. Caution should always be the key.

I am anti-rape, anti-sexual abuse whether it’s a boy or a girl and antiemotional abuse. There is no excuse.

And I do not subscribe to it is the fault of the girl either because of how she is dressed or what she said. But I am a decent dressing protagonist. Point to be clearly made is there are very sick persons out there and it may even include your father. Please do not give

‘

We are surrounded by so many broken women whose journeys we do not know.

Some women resort to food to forget their sorrow, too much talk or even fundamental religiosity.

Today with the spike in rape cases, the nation should worry. What’s going on with our men?

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

The use of some English words in Nigeria

T

he English language has become a global asset which is localised, domesticated and nativised in different nations where it serves as a second/ official language and, consequentially, a foreign language. Notwithstanding these long years of domesticating the English language in Nigeria, suffice it to say that everyone who boasts an affinity with standard English should be aware that the meanings attributed to an admixture of English words in Nigeria can only be understood by our compatriots.

Amazingly enough, while the verb “dupe” involves defrauding someone and, in effect, making him/her do something against his/ her wishes, it is interesting to observe that, as a noun — contrary to the assumption of many Nigerians — a dupe is an individual who has been tricked; not the fraudster. Consequent upon this, I presume that you didn’t give anyone a sucker punch for calling you “an unsuspecting dupe,” the last time you were duped by a trickster. That aside, it is emphatically pertinent to note that a beverage is a drink of any type (aside from water).

Buoyed by this evidence, a beverage doesn’t compulsorily have to be a cocoa-based drink such as Milo or Bournvita. Perhaps, in times past, you have referred to your talkative or garrulous friend as a “lousy” person. If that is the case, you should, henceforth, refrain from qualifying your friend as such because a lousy person amounts to a terrible or awful one. In a similar act of misrepresenting words, innu-

merable people refer to university lecturers as academicians, in a bid to accord reverence to them. Whereas an academician is a member of an academy, university lecturers are appropriately called “academics.”

To a large extent — and astoundingly so — it has come to my notice that a preponderant percentage of Nigerians often use the verb “chanced” to indicate that they (don’t) have the time to do something. To set the record straight, “chanced” (past tense) could be used in two basic senses. For one, it is synonymous with “risked,” as in, “Peter chanced riding a motorbike without a helmet.” Secondly, it could mean “happened by chance,” as in, “John chanced to know the whereabouts of my daughter, and he informed me promptly.”

Based on this eye-opener, it is grammatically spurious to say/write: “I wasn’t chanced to visit my grandmother last week.” In striking contrast, suffice it to say/write: “I didn’t have spare time/free time to visit my grandmother last week.” Alternatively, you could say: “I didn’t have ‘the chance’ (a noun) to visit my grandmother last week.” What is more, “ramifications” is synonymous with “consequences,” “repercussions” or “implications” — not “dimensions,” “aspects,” “facets,” “spectra” or “spheres.” Hence, you should cease to say, “May God bless Ngozi in all ramifications!”

On these lines, has it ever occurred to you that some Nigerians would want to say something like: “I was ‘opportuned’ to study at Oxford University,” when, in point of fact, they www.businessday.ng

The Gift of Gab

intend to say: “I was ‘privileged’ to study at Oxford University”? Against this background, let the general reader keep in mind that “opportuned” is literally non-existent in English.

By extension, “opportune” (an adjective) means “suitable” or “right.” For this reason, “The police arrived on the crime scene at an ‘opportune’ time.” Further to this, it is about time you quitted writing, “The reason for Joanna’s absence is not far-fetched.” This is diametrically opposite to saying, “The reason for Joanna’s absence is not hard/difficult to find” or “The reason for Joanna’s absence is obvious.” For the record, “far-fetched” means “unbelievable” or “improbable,” and it hardly fits into the foregoing context.

Instructively, too, the readership should internalise the fact that the part of a car or any other machine that supports another moving part is designated as a “bearing,” and not “boris.” Similarly, the carburettor of a vehicle could experience “flooding,” and not “overfloating,” as often expressed erroneously by some mechanics and their teeming customers.

Strikingly, as well, the vocabulary of many Nigerians is characterised by redundant repetitions. For instance, the clothes that end above or at exactly knee level are either shorts or knickers (especially worn by females); not “short knickers.” In similar style, those people you work within an organisation are your “colleagues” or “fellows;” not your “fellow colleagues.” Also, it is safe to refer to that handheld lamp, which is usually powered by

https://www.facebook.com/businessdayng

reason to them to hurt you. Let decency be your children’s hallmark.

Tell your daughters not to put themselves at risk by going to dingy places or meeting people up surreptitiously. Rapists are afraid of shame and therefore if they know that people know where you are going, they then are less led. Tell someone. Do not be alone with strangers in a dark alley.

Let your sons and daughters know that someone who gives too many gifts wants something in return. Not all gifts are worth it. Remember that boys are also victims.

Do not place cousins of different sexes, or brothers and sisters in the same room to stay the night when one has hit puberty. Children experiment.

They are watching TV and seeing porn on the internet. Don’t make them do stuff you can’t see in the night.

For men, not all your friends are not so stellar. Send your kids from your presence when they are visiting. Some of them are serial lechers. You will be shocked what they can get up to.

Tell your children to tell you what happened in church as much as you can. Do not donate your daughters at fifteen to go and help a Pastor. Not all Pastors are pastors. Beware of lesson teachers, houseboys and house girls.

Beware of teachers. House girls can take advantage of your girls and many a man lost his virginity to a house girl and vice versa. I never kept a houseboy.

I have five daughters. Be careful.

In the end, always listen to your children. Hey are innocent. They are open. Watch out for unusual behaviour and change in character. Please know that a child can be destroyed by rape.

Let them speak up. Let us shame the rapist and predators. Be vigilant!

Ganiu Bamgbose

batteries, as a “torch” or a “flashlight.” “Torchlight,” by comparison, is the light that emanates from the torch.

Last but not least, a number of nouns are made to attract superfluous suffixes, particularly among second language speakers of English. For context, “sponsor,” “gossip” and “assassin” should not be elongated as “sponsorer,” “gossiper” and “assassinator.” Furthermore, “visionaries” should not be incorrectly branded as “visioneers,” just like the death of Jesus Christ is aptly labelled “the Crucifixion” (take note that the “C” is in upper case); not “the Crucification.”

Finally, in the interest of global intelligibility, we cannot hastily admit every instance of misuse as Nigerian English.

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

@Businessdayng

10

Friday 19 June 2020

BUSINESS DAY

comment

comment is free

Send 800word comments to comment@businessday.ng

Democracy and the economic statecraft of Bashorun Abiola THE NEW WEALTH OF NATIONS

Obadiah Mailafia

F

riday 12 June was Democracy Day. It provided occasion for sober reflection on where we are as a country; whence we came and where we are heading. Aso Villa made all the right noises. The chattering classes did their part. I was part of a National Democracy Dialogue that was hosted by an organisation known as The Consultative Front and jointly anchored by my friends Professor Antony Kila and Veteran Che Olawale Ogunniyi.

Several distinguished personalities participated in the dialogue, including Hafsat Abiola-Costello. The programme was broadcast live on NTA, Channels and Ben TV. At the heart of the debate was the person of the late Bashorun M. K. O. Abiola, presumed winner of the 1993 presidential elections. We all shared the sentiments that, in truncating his mandate, Abiola and the Yoruba West were treated unfairly and unjustly by the military junta headed at the time by General Ibrahim Badamasi Babangida.

We all agreed that it was probably the freest election in our tortuous political history. And the electorate were united enough not to care that the two principal gladiators were both Muslims – Bashir Tofa and Moshood Abiola. They were also not bothered by the fact that Abiola’s running mate was also another Muslim, Babagana Kingibe.

Politeness, however, prevented us from digging deeper and being more critical. For the records, I was in the process of finalising my doctoral dissertation in England. I was therefore a

merely distant observer of those events.

I also joined, rather unconvincingly, the June 12 crowd. However, I attended some of the meetings with the likes of Kayode Fayemi and Tajudeen Abdulraheem of blessed memory. I was a participant in the various brainstorming sessions that led to the creation of the Centre for Democracy and Development (CDD), a policy think tank envisioned as the intellectual wing of the June 12 struggle.

But to be perfectly honest, I was a lacklustre member. I suspect also that my colleagues maintained some residual doubt as to my absolute loyalty. They were right. I belong to the traditions of Obafemi Awolowo and Aminu Kano. I found nothing in Abiola that resonated with my political consciousness.

Bashorun Abiola was no doubt a populist, but he did not have a clear economic programme for Nigeria. Beyond certain vague welfarist ideas, he did not have a programme for the economic transformation of our country.

I reviled General Sani Abacha from the bottom of my heart. I was a young Research Fellow at the National Institute for Policy and Strategic Studies, Kuru. From my very early twenties, I found myself interacting with these gladiators. I had dinners with IBB, Abacha and Abiola. We used to play snooker with a gallant officer who was General Commanding Officer of the Third Division of the Nigerian Army, in the person of Major-General Muhammadu Buhari. Forgive my arrogance, but none impressed me intellectually.

Whenever a man opens his mouth, I want to learn something from him.

Babangida was probably the most intelligent of the lot, but his intelligence was pledged to Lucifer. Day or night, Abacha was always perpetually in dark glasses. He obviously had a lot to hide.

He said very little, to give the impression that he was smarter than he truly was. Of the lot, he was the one that least impressed me. As for Muhammadu Buhari, he was the type of persona that one easily warmed up to. Gentle, smart and serious, he oozed leadership,

patriotism and command. He was not much of a talker. We wrongly presumed that behind that quiet exterior lurked something surprisingly great. Alas, there was, and there is, nothing.

Abiola flew in straight from New York once by private jet to speak to us in Kuru. We later had dinner together.

He was a great raconteur. During the after-dinner tete-a-tete, he got rather emotional. He pulled off his cap and, rubbing his balding head, lamented how, as a young man in the streets of Abeokuta, he had to go to the bushes and bring back palm kernels on his head to sell in the market. He had to fend for himself to find the fees to go to school. He was stupendously wealthy. And unlike the wealthy, he was extremely generous with his wealth.

He had the heart and compassion of a humanist.

The political philosopher Sir Isaiah Berlin once remarked that the fox knows many things but the hedgehog knows one big thing. These people were foxes who knew many things but had no single big idea for the country, beyond, that is, capturing and keeping power.

Moshood Abiola, in my opinion, should never have thrown his hat into the political arena in the first place. The ancient Hindu philosophers believe in the concept of “Dharma”. It refers to the essence of duty – of vocation and destiny. When a man derails from his dharma then it leads to confusion and even tragedy. Abiola’s dharma, in my view, was wealth-making. He made enormous wealth. He used that wealth for charitable causes and to promote good causes such as youth and sports, reparations and even African liberation. Many do not know that without Abiola’s help to Yoweri Museveni and his guerrilla fighters, the National Resistance Movement (NRM) would never have overthrown the evil dictatorship in Uganda.

Abiola should have remained in the zone of his greatest influence. In detouring into politics, he went into territory for which he was ill-prepared and for which the gods never intended

‘

If he had been sworn in, MKO would have still been beholden to the military and the Americans.

There is no evidence that he had an elaborate programme for economic development and industrialisation.

If he did, Ojetunji Aboyade, Sam Aluko, Adedotun Philips and other renowned economists would have been part of it

for him.

Abiola, if truth be told, was a part and parcel of the corrupt rent-seeking cabal that governed Nigeria during the military era. The bulk of his stupendous wealth was made through mouthwatering contracts given to him by his military friends. He even married the widow of one of them – Ajoke Murtala Mohammed.

Some of my younger readers might not know that the late Moshood Abiola was at one time Chairman of the American conglomerate of the International Telegraph and Telephone (ITT) for the entire Africa and the Middle East. He was smart enough to buy major shares in the conglomerate. He was minting endless money. We take some judicial notice that ITT was intimately connected with the American CIA; playing a major role in the overthrow of the socialist and progressive government of Salvador Allende Gossens in Chile in 1973. Nobody could have risen to the topmost hierarchy of this multinational corporation without directly or indirectly being implicated with the CIA. Abiola’s enemies would go so far as to say that he was a CIA agent. Even if this were true, he would not be the first.

It has been a known fact that some of the high echelons in the Nigerian military were CIA agents. Some of them, even in retirement, are still working for the Americans. This is why our country has found it impossible to become an inner-directed and inner-propelled flourishing democracy.

And lest I am misunderstood: I am not anti-American and never have been. But I believe that if I am to be a leader of my country, my primary loyalty shall be to my country and to Africa.

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

Ethics, the beginning of culture

W

elcome to today’s column. in line with “Culture”, we had a zoom meeting in the “Box And Cedar Breakfast Series” last Tuesday. We talked a lot about what makes up culture and how to go about building it. Last week we had looked at a few ideas on how to build culture.

There was a question during the meeting about what kind of culture we should be building also whether or not culture is easily changed or should we just have one static culture. The conclusion drawn was culture must really be divided into two. One half that never changes and the other half that has to be easily adaptable to the change around it.

Today I will be looking into culture that all organisations should have that forms the bedrock and must remain the same. One of the conclusions from our meeting is the importance of the CEO or the owner of the business being the one who initiates culture building. Culture actually starts with the organisational Mission, Vision and Values.

Ethics should form the bedrock of culture.

The definition of ethics is the standards of conduct that indicate how one should behave based on moral duties and values which themselves have been derived from the principles of right and wrong.

Ethics is important because it forms the basis of how we relate and react with each other,

both internally at work, in our families and externally with all the stakeholders in our lives.

From all the Black Lives Matter riots and protests it is clear that we must get our ethics right because they actually form the lenses through which we see things and therefore reasons for how we act and react.

Having ethics is doing the right or moral thing when no one is looking. Making choices that may not always feel good and seem like a benefit to you, but are the right choices in the end. We have all heard the golden rule “do unto others as you would have them do unto you”.

This dovetails into your recruitment because ethics starts from when one is young and it is possible but difficult to teach good ethics to somebody who has grown up in life with poor ethical training.

Personal ethics is the foundation of a moral compass, the internal guide that tells us what is right and wrong. They drive our actions and emotions on a daily basis. Research has shown strong evidence that people everywhere articulate some version of the same five core values.

Trustworthiness, which includes truthfulness, sincerity, loyalty and integrity. Respect which includes courtesy, Responsibility which includes diligence, continuous improvement and self- restraint. Justice, that includes fairness, impartiality and equity. Finally Caring that includes kindness and compassion.

www.businessday.ng

Workplace ethics are a set of rules based on the moral virtues of hard work and diligence.

This holds the belief in the fact that work has the ability to enhance character. These are characteristics such as trustworthiness, respect for others, personal responsibility, a caring, compassionate attitude and good citizenship which includes a respect for the rights of others as well as a positive and enthusiastic attitude to work.

There are examples of bad work ethic but we will not go into that. As they say the banks do, they teach their tellers to recognise real currency such that when they see fake currency, they recognise it immediately. Examples of good work ethics that must be sustained are, prompt and regular attendance, good character in each individual that encompasses the five values mentioned above, productivity which means ensuring deadlines are met on time and projects are completed on time and within budget.

Teamwork, the ability to work in a team where everybody is sold out to the same vision and work together to ensure that the vision is carried out in the best possible way. Communication skills, verbal, non-verbal and written.

Respect for self and each other. and good clean dressing and on the offensive appearance for self and each other and good clean dressing and on the offensive appearance.

Good work ethics like fine wine takes years to develop, however as they say the journey of

https://www.facebook.com/businessdayng

Olamide Balogun a thousand miles starts with the first step. If you have this already in place well done, if not don’t be daunted just start with one step. Begin today because organisations that develop high levels of ethics function more efficiently and more effectively.

Good ethics embedded in your culture gives your organisation a great reputation, fosters trust and unity within staff and gives employee commitment.

I know that I said initially that culture and ethics starts with the founder or CEO of the organisation, however it is the responsibility of management, to inform staff, that the responsibility for ethical behaviour lies not only at the top of the chain but wherever decisions need to be made.

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

@Businessdayng

Friday 19 June 2020

BUSINESS DAY

comment

11

comment is free

Send 800word comments to comment@businessday.ng

Why leadership theories fail in Sub-Saharan Africa

Toye Sobande

L

eadership is a complex issue, with so many definitions and theories that have been developed over the years mainly by Western scholars and academic elites. Some of these western leadership thoughts include servant leadership theory, influence/ relationship, distributed leadership theories, skills/competency approach, behavioural school, the situational model of leadership and charismatic, transformational models.

Why have these principles failed to work in Africa though?

First, we need to take a good look at the history of the western world’s interaction with Africa, because this sets the stage for everything that has transpired since then. Between 1881 and 1914, the great European powers made a big dash for the African continent. It started with the scramble and finally the partitioning of the continent by the different European powers at the Berlin Conference in 1884. All eyes were on the vast riches to be mined and exploited.

This period was known as the scramble for Africa. They carved and sliced pieces of land like it was some precious and rare dessert that would disappear if they failed to get their share. They were more concerned about all they could acquire.

Not much care and foresight were given to the welfare of the inhabitants of the land they conquered. So, they divided and pitted neighbour against neighbour. There was “lasting occupation of land, exploitation of human and material resources, and quelling resistance required the erosion of social bonding, indigenous beliefs, values, identities and indigenous knowledge.”

For colonialism in Africa to succeed, it needed powerful agents to propagate the agenda of the colonialist. Over the years, the colonial powers got a lot of different people to serve as agents from anthropologists, missionaries, doctors, journalists, and the civil servants.

However, there was a specific class of people that have continued to have a more profound impact and long-term effect on the African political and leadership landscape. This group of people were educated in colonial schools or Europe, or they were in service under the colonial system.

It wouldn’t be until the 1960’s when most of Africa would finally get their independence from the various European powers. However, after the few years of euphoria at the newfound freedom, those who fought for independence and had risen to power discovered that maybe they hadn’t been prepared adequately for the responsibility of leading new nations. Confronted with massive issues and lack of infrastructure in many places, it wasn’t long before disillusionment arose. To keep the people under control, leaders either chose to solidify their power by turning to one party leadership and ruling for years or military regimes ousted them. This would last for decades until the wave for democracy swept the continent in the late ’90s and beyond. Yet, despite all these changes, it appears that western leadership development principles have simply failed to work on the continent.

The failure of the leadership principles is due to the dismantling of long-held traditions that had groomed generations of leaders before the colonial era.

The reality is that the leadership structure currently being used in the political and business arena across the African continent is built on structures that were put in place during the colonial era. Some of these structures are bureaucratic and place the leader far above the affairs of the common man. The result in the political realm is older men fighting to stay in power.

Africa has always been diverse, so even in the past there were different styles of leadership. Leadership was at every stage of life. There were the elders, and there were the young warriors, each

respecting the other and knowing each sector needed the other to survive. But what colonialism did was to dismantle age-old traditions for one that suited the imperial powers. Take, for example, the Igbos of Nigeria; they were more democratic in the sense that kingship was rotated among the clans, and not limited to one’s family or lineage. When the British came, however, they turned things around, intent on finding rulers that could be loyal to them, and do their bidding, often without the concern of the locals. These types of leaders, behaviour and sentiments have continued and even gotten worse as the years have passed.

I might infer that Africa is less developed because of the impact of colonialism. In most cases, when the Europeans left at the era of independence, they left a fragile nation and continent. Many African countries were vulnerable since all the pillars of society that had stood for centuries had been dismantled bit by bit and they had to learn to administer their nations with the imported colonial system of administration. Indeed, after independence and the honeymoon phase was over, many African countries suffered either from economic hardship or political instability.

Thus, leadership has become something only a few manage to acquire, and once you have a taste of it, there is a reluctance to let go. Hence leadership as it works currently meets the needs of the leaders and not the citizens, employees, etc.

When the western world intersected and then invaded Africa, they did not bother to take stock of what was already working when it came to leadership.

Often, they were quick to impose strategies that work in their own cultures, without realising all communities are not the same.

In Africa, there is often a different mindset at play. As citizens and leaders, we forget that there were principles that worked for us in the past. Within our unique cultures were solutions to our problems. While it is true that Africa has become more complicated since colonialism, and that new solutions need to be created when thinking longterm, the best answer lies with those

‘

For Africa to succeed, Africans themselves need to get back to the drawing board and come up with principles that align with who we are as a people.

There is the need to create new policies that incorporate truths from our ancestral past

Note: The rest of this article continues in the online edition of Business Day @https://businessday.ng Toye Sobande is a Lawyer and Leadership Consultant. He is a Doctoral Candidate at Regent University, Virginia Beach, USA, for a Ph.D. in Strategic Leadership. Email: contactme@toyesobande.com

The 4 pillars of financial mastery

F

inancial mastery will require a fair amount of deferred gratification and self-discipline. It is not easy, but you know it is fully worth it. The journey can be lonely unless you surround yourself with a community that motivates you and keeps you focused.

I paid for most of my undergraduate education. I was 17 when I started. I got a job on campus - first on the cleaning team, and then as tech support. My cleaning job paid $6.50 or so an hour but then I hustled and landed the most coveted job on campus, earning $11.11 an hour. I really should tell you how I hustled that job, but let’s save it for a future column.

For now, you need to know that I made about $3,000 every semester. After taxes, the actual money that came into my account was about $2500. But at the end of every semester, $2100 to $2400 of that money was used to cover my school fees and tuition.

None of my friends at the time knew that I was paying for school myself. Many of them had heard about my amazing on-campus job. They had heard of the posting, but hadn’t hustled the hustle I hustled to land the job. The pay was clearly advertised, so they also knew the sort of paycheck I was making. Many of these friends also worked on-campus as well as received sti-

pends from their parents. I did not. As is normal for young people at that age, my friends and I wanted to enjoy life. They regularly organised trips to the movies, road trips to nearby cities, and nights at the club.

Because of my goal to pay my way through school, I regularly needed to turn down their invitations to hang out on the town. One day, my then closest friend turned to me and said, “You’re a miser.”

This was a guy who regularly boasted about the fact that a rich friend of his father’s was paying his tuition, leaving his dad free to send him over to the US with loads of pocket money.

As you can imagine, that friendship did not last long. It took about a year to fully extricate myself from that friendship, but I quietly switched groups and became friends with a different group of guys whose goals were very similar to mine. They sought scholarships to help with tuition, they discussed ways to earn money during holidays, they were my tribe.

In fact, I was just on a Zoom call last Saturday with all eight of them. Over a decade later, we are still friends.

This story shows the active and passive ways your group of friends can help you on track.

Some of those active ways include: Shared goals: Your group of friends regu-

www.businessday.ng

who feel the pinch of wearing the shoes.

Our solution has to come from us. Africa is often treated like it is a country, not a continent that has always been diverse in terms of culture and beliefs. So just preaching and bringing in western principles without first adjusting to the unique situations across the continent, does nothing. It only creates more confusion as time passes.

One of the leadership principles that have been in existence in Africa before the invasion of western culture is the concept of Ubuntu. Ubuntu is seen as an African philosophy that emphasises collective action—that an individual’s success comes through others, and there is no place for me, myself and I. Together, we win and make a difference.

It is these types of principles Africans need to recapture and bring back into the spotlight.

Africa needs principles that guide African leaders to be more empathetic while also allowing citizens to be more collectively involved in the leadership process. Responsibility for the commonwealth of the nation lies jointly in both the leadership and citizens.

Think of a country like Rwanda that is building itself up after the devastating genocide of 1994. They are working on changing the narrative, and its success lies with everyone getting involved, from the young entrepreneurs, the high number of women in the legislative to the President.

For Africa to succeed, Africans themselves need to get back to the drawing board and come up with principles that align with who we are as a people. There is the need to create new policies that incorporate truths from our ancestral past—such as the Ubuntu principle that existed before western influence—while applying them in creative and dynamic ways to the modern reality that is Africa today.

Money Brain with JR larly discusses and is aware of the fact that you are all pursuing similar life destinations.

Shared activities: As a group, you spend your time doing things in service of that shared destination.

Motivating conversations: Hearing others talking about their goals motivates you to take yours even more seriously.

Healthy competition: Because you see your peers figuring this out, you realise that you don’t want to be left out. As Nigerians say, “I cannot come and carry last!”

But sometimes, the passive motivation is even more powerful. For instance in my group: Positive peer pressure: There was an unspoken expectation that all of us would be frugal with our money. Splurging simply wasn’t and still isn’t the group’s culture.

Infectious motivation: When I might have been tempted to abandon my goals, I was motivated to keep going because I was surrounded by others who were holding themselves to high standards.

Self-actualisation: And finally, each time I hit my goal, I felt great about myself. I was that much stronger when dealing with the next financial goal. My confidence grew unshakeable.

So, how do you build this community? If you’re in your 20s and 30s, it is very likely that

https://www.facebook.com/businessdayng

JR Kanu

you have a core set of friends, people that are closest to you. Take a look at the list above.

Does your current group of friends help you in those ways? If the answer is no, you need new friends. Or, you may need to pull closer to the right friends already in your circle and put some distance between you and those that are not helping you be great.

Surround yourself with the right people; you can and will grow together.

Kanu is the creator of the app, REACH: Expense & Money Manager - www.reach.africa. He is also the author of the book, Money Brain: Career & Money Management in Your 20s and 30s - moneybrain.reach.africa. jrkanu on Instagram or email stories@reach.africa

@Businessdayng

12

Friday 19 June 2020

BUSINESS DAY

Editorial Frank Aigbogun

Unlocking growth with private capital

editor Patrick Atuanya

Better regulation and strong legal frameworks matter

Publisher/Editor-in-chief

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

Bashir Ibrahim Hassan

GM, BUSINESS DEVELOPMENT (South) Ignatius Chukwu

T

he COVID-19 pandemic may have caused negative demand shock and disruptions in supply chains across economies of the world, lowering growth forecasts, but it has revealed the importance of private and foreign capital in the recovery and sustained growth of an economy.

Beyond COVID-19 induced concerns, stimulating, attracting and boosting private and foreign capital must take the front seat in whatever economic sustainability strategy the Nigerian authorities are considering.

Sequel to the 2014 oil price crash from above $100 levels to $40 which ended the boom days for Nigeria, the economy had barely recovered but grown at an average of 0.94 percent in the last four years. The current pandemic foreshadows a bleaker economic growth outlook for Africa’s biggest economy.

Over the years, the Nigeria federal government had followed passionately a government-based expenditure model while the “defend the naira at all cost” obses-

sion of the Central Bank of Nigeria (CBN) has only encouraged hot money investments, with little or no incentive to a more sustainable form of investment (patient capital).

This hasn’t amounted to much in closing up investment gaps in almost all sectors of the economy. For example, Nigeria’s government expenditure to GDP is approximately 12 percent and very negligible in driving growth.

However, the federal government in synchronisation with the private sector, can agree on the right economic philosophy and put in regulations that perfectly align with this philosophy. This mutual motive can and will produce a combined effect greater than the sum of their separate effects.

Before now, we didn’t have such synergy and have suffered a less competitive capital market when compared to other markets in the global space in terms of attracting private capital. Although Nigeria recorded a surge by 77 percent in capital importation year-on-year in 2019, according to data released by the National Bureau of Statistics (NBS), portfolio investment accounted for 68 percent of $23.9

billion recorded that year. Foreign Direct Investment (FDI), which remains a vital component for economic development, accounted for a miserable 3 percent at $934 million the same year.

Though foreign investors do not doubt opportunities in the Nigerian capital market, they will not take long-term chances due to Nigeria’s weak legal frameworks, unfavourable market philosophies and unprofitable government regulations on the private sector. And that, in our view, is the crux of the matter.

The Nigerian non-sovereign bond market hit N1 trillion mark after listing Dangote Cement’s N100 billion bond in June. Yet, there is enough room for this market to increase its capacity and present companies a market to raise cash from.

Similarly, the Nigerian pension sector provides a good base given its ever-growing contributions from employers and employees. But, regrettably, pensioners keep losing value on their investments, earning negative real returns on the back of high inflation levels and low yield on government’s T-bills and bonds.

It is pertinent to point out that very important to Nigeria’s capital

market deepening is its foreign exchange market. The CBN’s reluctance to collapse all exchange rates to a market determined rate is a matter to worry about as it amounts to Nigeria destroying its own economy with its own hands.

We note with deep concern that as long as there is no certainty and clarity in the FX market, investment opportunities will remain impeded.

Arguably, COVID-19 pandemic has necessitated a need to diversify the Nigerian economy. But we advise that diversification, which means new investments in other sectors of the economy away from the oil sector, must have the private sector at the forefront. This is because, most often, these investments are capital intensive and will have to be sourced from the capital market.

We advise further that, to achieve this, the federal government must understand that running a private sectordriven economy is a philosophy that must attract frictionless regulations and strong legal frameworks.

This, we believe, does not in any way take power off the hands of the FG but signifies an alignment of forces to drive the desired economic growth.

HEAD, HUMAN RESOURCES Adeola Obisesan

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

Enquiries NEWS ROOM 08169609331 08116759816 08033160837

} Lagos Abuja

ADVERTISING 01-2799110 08033225506 SUBSCRIPTIONS 01-2799101 07032496069 07054563299 DIGITAL SERVICES 08026011296 www.businessday.ng The Brook, 6 Point Road, GRA, Apapa, Lagos, Nigeria.

01-2799100 Legal Advisers The Law Union

OUR Core Values

Mission Statement To be a diversified provider of superior business, financial and management intelligence across platforms accessible to our customers anywhere in the world.

BusinessDay avidly thrives on the mainstay of our core values of being The Fourth Estate, Credible, Independent, Entrepreneurial and Purpose-Driven.

• The Fourth Estate: We take pride in being guarantors of liberal economic thought • Credible: We believe in the principle of being objective, fair and fact-based • Independent: Our quest for liberal economic thought means that we are independent of private and public interests.

• Entrepreneurial: We constantly search for new opportunities, maintaining the highest ethical standards in all we do • Purpose-Driven: We are committed to assembling a team of highly talented and motivated people that share our vision, while treating them with respect and fairness. www.businessday.ng

www.businessday.ng

https://www.facebook.com/businessdayng

@Businessdayng

Thursday 19 June 2020

BUSINESS DAY

www.businessday.ng

https://www.facebook.com/businessdayng

@Businessdayng

13

14

Friday 19 June 2020

BUSINESS DAY

Live @ The Exchanges

Stocks fail to sustain gains …NSE ASI down by 0.16%, investors lose N21bn Iheanyi Nwachukwu

N

igeria stock m a r k e t on Thursday June 18 failed to sustain previous day’s gains as investors continued to price-in the risk of increasing cases of Covid-19. Investors lost N21billion following sell pressure on mid-to-large cap stocks led by Nigerian Breweries Plc. Vetiva analysts believe the stock market still offers growth opportunity for investors willing to take position for medium to long term.

The Nigerian Stock Exchange (NSE) All Share Index (ASI) decreased by 0.16 percent to 24,933.41 points at the close of trading session from preced-

ing day high of 24,972.89 points.

The value of listed stocks on the Nigerian Bourse decreased from N13.027trillion to N13.006trillion.

Yearto-date (Ytd), the market has decreased by -7.11percent; while this month it has decreased by -1.32percent.

Nigerian Breweries Plc led the decliners after its share price dropped from N42 to N38, losing N4 or 9.52percent.

Fidson Healthcare also dropped from N3.4 to N3.07, losing 33kobo or 9.71percent; while Neimeth was down from N1.89 to N1.71, shedding 18kobo or 9.52percent.

In 3,315 deals, investors exchanged 171,208,471 units valued at N2.210billion.

“We believe that the stock market will remain

www.businessday.ng

highly volatile in the interim as the realities of COVID-19 remain prevalent”, said United Capital analysts in their June 18 note.

Oil prices ticked up on Thursday after U.S. oil product stocks shrank, providing bulls with ammunition ahead of a meeting between OPEC producers and their allies to discuss their future output strategy.

Brent crude futures were up 34 cents at $41.05 a barrel at 1144 GMT. U.S. West Texas Intermediate (WTI) crude futures rose 15 cents to $38.11 a barrel.

“We expect the bullish streak to be sustained as investors position in attractive stocks and sentiment improves due to a rebound in global oil prices”, Afrinvest research analysts said in their June 15 note.

NEM posts N2.4bn profit in 2019, pay 15k dividend Modestus Anaesoronye

N

EM Insurance Plc on Thursday June 18 in Lagos held its Annual General Meeting (AGM) in line with the social distancing guideline, paying its shareholder a 15 kobo dividend from its business activities in 2019.

The Group in the 2019 financial year recorded a Gross Premium of N19.8 billion as against N15.04 billion generated in 2018, an increase of 31.3 percent.

Fidelis Ayebae, chairman of the Company who disclosed this during the AGM, said profit after tax for the year was N2.4 billion, as against N2.04 billion in 2018, an increase of of 17.6 percent.

Ayebae said as a result of the crash in interest rate during the reporting period, the income earned on investment came down to N878.2 million as against the previous year’s N952.8 million. This resulted

https://www.facebook.com/businessdayng

in a reduction of 7.8 percent.

Keeping to its terms of the contract and meeting customer obligations to policy holders, the insurer paid claims amounting to N7.4 billion, as against N6.01 billion paid in 2018.

Ayebae said there was also increase of N1.08 billion, N3.25 billion and N1.67 billion in the Group’s Financial Assets, Total Assets and Total Equity respectively, while earnings per share (EPS) for the year under review was 45 kobo, against previous year’s 39 kobo, an increase of 17.6 percent.

On the Company’s response to Covid-19 pandemic which has taken a huge toll on businesses, Ayabe noted that the focus has been on the safety of her personnel, ensuring the continuity of access to the firm products by clients and also efficient service delivery.

“As the situation continues to be very dynamic, the Company has been working diligently to assess the potential risks posed by COVID-19 to its

@Businessdayng

business on an ongoing basis and to realign its strategies accordingly.”

According to him, the Company has adopted policies which are prudent at this time to grow its market share by leveraging extensively on its robust technology infrastructure and maintain a healthy balance sheet.

Tope Smart, GMD of the Company said despite the difficult operating environment, coupled with increased claims profile due to some very big claims paid during the period under review, the Company was still able to record some modest achievements in most of the indices.

These claims he noted was a lot of pressure on bottom line, stating that efforts were being made to ensure the numbers are improved.

“With a very strong foundation and brand reputation, we are well positioned to move to the next level even as we continue to delight all our stakeholders, Smart said.

Friday 19 June 2020

News

BUSINESS DAY

Products Review

Technology Review

Personality Review

15

FINTECH

Company Review

Five takeaways from Luno’s virtual bitcoin trading session in Nigeria FRANK ELEANYA

T

he bitcoin market is best known for its volatility and despite the growing information sources now available, many people still find it difficult to fully grasp.

In April, J.K Rowling, the author of the famous Harry Potter children’s book series, asked her followers on Twitter for help understanding bitcoin to which she got responses from top bitcoin experts and stakeholders including Elon Musk, CEO of Tesla.

E d u c at i o n a b o u t t h e space is the first critical step for beginners, according to Owenize Odia, Country Manager of Luno Nigeria, speaking at a virtual bitcoin trading session the global cryptocurrency exchange hosted.

The webinar which offered a very useful trading guide for prospective Bitcoin traders was facilitated by Olaleye Awe, a bitcoin trader popularly known as Prof Awe. There were several takeaways for beginners.

Trade with a goal Many people who want to get into Bitcoin trading often do so because they heard

there were huge profits to be made. Hence, without doing their due diligence they invest money and often end up regretting their decision. On several occasions, their loss would turn to the cynicism of the entire market.

It helps to sit down and mull over why you want to become a bitcoin trader.

“Always know what your aim is as a trader,” Awe said.

He recommends starting out small and evaluating the outcome.

While your end game as a trader is to make a profit,

you require a strategy to help attain your goal.

For instance, a strategy would teach a trader to avoid the Instant Buy option, says Awe. Traders can incur a 2 percent fee by using the Instant Buy option for their bitcoin purchase.

A better strategy would be to exchange and place an order, wait for a seller and buy.

Trade local but conscious of global price Awe says it is important to always keep an eye on global price movement when trad-

ing or selling bitcoin. The global price would always control traders’ behavior on the local scene.

A trader who doesn’t pay attention to what the global price of bitcoin is would likely lose money while attempting to buy or sell.

Never jump the queue This usually happens when people are in a hurry to lay their fingers on bitcoin especially during price jumps.

Fear of Missing Out (FOMO) would drive many to press the Instant Buy option or go on

the exchange to buy ahead of people who have been waiting for their turn.

The order book on Luno, for instance, is ‘first come first serve’. On the exchange, this is clearly indicated by the red and green lines. According to Awe, when a trader jumps a queue he or she would not only pay a premium price for the bitcoin, there is also a fee that goes to the exchange.

Buy during price dips When driven by FOMO many traders lose a lot of money, because they always fail to

acknowledge that the market is unstable and is not controlled by anything. This is partly the reason for the mass losses many experienced from 2018 after the massive runs in 2017.

Awe says it comes down to strategy when attempting to make money in a highly volatile market.

The best time to buy bitcoin is when the price is going down “because you have a chance to make a profit when the price moves up,” he said.

While this is not full proof for profit-making, he recommends the one-over-three formula especially when the bears in the market drag for long. That means to buy at first dip, second and third dips instead of staking all the money on one price range.

Don’t stockpile profits Many people would want to wait for bigger profits before they collect, but Awe says this is very risky in an unstable market like bitcoin. A price movement could hurt your profit while you are busy stockpiling.

Given the prices are always going up and down without controls, the best time to take your profits is as soon as you make it. You can then go ahead and stake for another trade.

Opeke, Bukar, five others join board of FintechNGR FRANK ELEANYA

T

he Fintech Association of Nigeria (FintechNGR) has announced the appointment of Funke Opeke, CEO of MainOne, Kyari Bukar, co-founder of Trans Sahara Investment Corporation; and five others as board members of the advocacy platform.

In a statement BusinessDay received, FintechNGR said the appointments were in line with the association’s three-year strategic plan (2019-2020) aimed at strengthening the capacity to become more relevant in the financial services industry.

Among the strategies are the restructuring of its secretariat and establishing new and sustainable funding sources for the association and for the

fintech industry.

Other members of the board include Segun Aina, currently the President of FintechNGR and African Fintech Network, as well as chairman of Odua Investment Co.; Tunde Lemo, chairman Flutterwave, Lambert Capital and former Deputy Governor of the Central Bank of Nigeria; Mary Uduak, acting Director-General, Securities & Exchange Commission; John Obaro, CEO SystemSpecs Remita Limited; and Bola Adesola, Snr Vice Chairman, Africa, Standard Chartered Bank, and co-Vice Chair, United Nations Global Compact.

Founded in 2017, FintechNGR was established to foster an ecosystem that supports all stakeholders to achieve a thriving and growwww.businessday.ng

ing Nigerian fintech industry and to make Nigeria one of the world’s leading markets for fintech innovation and investment. The new members of the board are expected to provide necessary oversight,

guidance, and support and work with the Governing Council towards the attainment of the objectives of the association.

“The addition of these eminent and accomplished

https://www.facebook.com/businessdayng

personalities and industry leaders will no doubt propel the growth and increased relevance of the association,” said Segun Aina in a statement.

The development also

@Businessdayng

means that Aina and John Obaro would vacate their previous positions as President of the Association and member of the Governing Council respectively.

“I am honoured to serve as a member of the Board of Trustees of the Fintech Association of Nigeria and look forward to the opportunity to add value to the organisation along with other distinguished professionals of high repute,” Opeke said.

The Fintech Association of Nigeria currently has 130 corporate members including several incumbent and startup fintech companies; 15 deposit money banks (DMBs); tech-focused private equity firms; other professional bodies, universities, and associations; major law firms and media houses.

16

Friday 19 June 2020

BUSINESS DAY

INSIGHT Trust - the foundational principle for building financial inclusion Akintunde Oyebode

N

it is a design failure to design interest-earning products to promote savings in a culture dominated by people with religious and/or ethical aversion to interest-earning products. There is also a need to align products to existing norms and behaviour patterns to increase adoption.

Thirdly, cost is a critical trust factor. If the cost of financial services is prohibitive, or interest rates are exorbitant to the people within the informal sector, they are less likely to patronise your services. These costs increase their belief that formal financial products are a “one size fits all” catering to the formal sector only.

These challenges have contributed in various ways to the limited success of Nigeria’s financial in-

clusion strategies. For example, in a baseline study conducted by the Central Bank of Nigeria (CBN) and International Finance Corporation (IFC) on National Collateral Registry which involved 1,500 respondents from various states, only 31% of MSMEs have accessed credit through the formal banking system. Given the inadequacy of formal financial services to meet their needs, these low-income earners have become very reliant on informal banking methods such as traditional practices like Esusu - an informal form of rotational savings and credit provision between small groups of people, which is a framework that is built around trust.

To address their exclusion, the CBN adopted the National Financial Inclusion Strategy (2012)

“

The hardship of this pandemic has provided a unique opportunity to revisit the framework of our National Financial Inclusion Strategy and ensure that we design a multi-party solution that allows various sectors collaborate to reduce poverty and create prosperity

“

igeria is fully committed to financial inclusion, especially as a proven requirement for first reducing, and eventually eliminating extreme poverty. This is especially important in Nigeria where 40.1% of the total population were classified as poor, which is not surprising since 73.2 million adults within our population are also financially excluded. Most of these financially excluded adults work within the informal sector, are without financial records and are distrustful of formal financial services (FFS). If we want to rectify this, trust must be established.

Trust is a fundamental sociological behaviour and the foundation of every personal and business relationship. It plays a significant role within the financial services industry according to the Ernst and Young 2016 Global Consumer Banking Survey which proved that a strong correlation exists between levels of trust and customer advocacy. Nontraditional banks who provided unbiased advice to customers had higher trust and recommendation levels than traditional banks.

Without trust, any efforts to formalize this sector will be futile, and lead to more people falling below the poverty line every day.

Micro enterprises contribute 65% to the nation’s GDP yet the segment remains informal, and 80% of its workers are the most marginalized members of society, without access to key financial services. Again, at the centre of this marginalisation is a lack of trust, which requires a multidimensional evaluation. Firstly, low levels of literacy affect many of the people within this segment’s ability to understand the value proposition of formal banking (In a 2015 baseline survey on financial inclusion, the CBN found that 50.7% adults had no formal education). Simply put, you are less likely to trust what you do not understand. To address this, we need to deepen financial literacy by using languages and channels that people understand and use freely.

Secondly, solutions must reflect cultural and religious nuances. If providers deliver fit-forpurpose solutions, it will only increase the use of such solutions by the target market. For example,

www.businessday.ng

https://www.facebook.com/businessdayng

which aimed to reduce the exclusion rate to 20% by 2020 through tools like agency banking. In 2016, it achieved 58.4% inclusion and plans to have 70% of its adult population in the formal financial services sector in 2020. So far, the strategy is yet to reach the desired effect, with the unbanked population currently standing at 41.6%.

It is clear from the results, that the current approach needs to be tweaked.

The continual financial exclusion of those at the bottom of the pyramid is one of the reasons that a staggering 40.1% of Nigerians live below the poverty line of $2.

What is more worrisome is the massive youth bulge - with over 70% of all Nigerians now younger than 40 years. This youthful population have an entrepreneurial spirit, digital savviness, and energy, which are incredibly productive, if enabled by very specific tools, including access to formal financial services.

During my tenure as Executive Secretary of LSETF, I was privileged to meet 23-year-old Ibrahim Shuaib, a final year student in the department of dentistry and dental surgery at LASUTH. He received a N250,000 loan from the Fund for his dry-cleaning business, called Dr. Clean, which he used to buy laundry equipment and employ over 15 people. He not only expanded Dr. Clean to other campuses, Ibrahim also started a beverage business which is managed by his sister, and repaid his loan within 4 months. These @Businessdayng

achievements illustrate that access to financial services improves economic outcomes and small loans can have a positive multiplier effect in society.

Ensuring low income earners are connected to formal financial services which cater to their needs has become more crucial today with the COVID-19 pandemic. To curtail the virus, the Federal and State Governments imposed lockdowns to restrict movement which hindered the income-generating activity of those who rely on daily/ weekly wages for sustenance.

While some of the restrictions have now been eased, there are still restrictions to movement and curfews to contend with, against a backdrop of increased costs of products and service. This has highlighted the need to support the informal sector, especially to protect household consumption.

While the Government has approved a three-month repayment moratorium for SMEs registered in programmes like Tradermoni, which is a step in the right direction, there is still much more to be done. As more people experience hardship given the rising food prices, disrupted supply chain and other COVID-19 related effects, it is likely that we will see an exponential increase to the number of people who fall below poverty in the coming months.

Governments at all levels must not waste the opportunity to use this crisis as a springboard for integrating more people with financial services. For example, financial services and telecommunications can collaborate to use anonymized data to identify poor and vulnerable people who should receive grants or food supplies. In addition to this, future cash grants can also be distributed electronically, creating an incentive for both the user and provider of financial services, and deepening inclusion.

The hardship of this pandemic has provided a unique opportunity to revisit the framework of our National Financial Inclusion Strategy and ensure that we design a multi-party solution that allows various sectors collaborate to reduce poverty and create prosperity. There is no better time than now- the past is behind us - and the future, much too late.

Akintunde Oyebode (Special Adviser: Investment, Trade and Innovation, Ekiti State)

Thursday 19 June 2020

BUSINESS DAY

www.businessday.ng

https://www.facebook.com/businessdayng

@Businessdayng

17

18 BUSINESS DAY

FT

Friday 19 June 2020

FINANCIAL TIMES

World Business Newspaper

Banks rush to borrow record €1.3tn at negative rates from ECB Central bank offers ultra-cheap loans to prevent pandemic becoming credit crunch MARTIN ARNOLD

B

anks have rushed to borrow a record €1.3tn from the European Central Bank at deeply negative interest rates, in the latest monetary policy drive to boost liquidity in the eurozone’s coronavirus-stricken economy.

It is the first time that a major central bank has offered multiyear loans to banks at an interest rate below its main deposit rate, introducing a so-called dual-rate system.

The ECB said on Thursday that 742 banks had applied to borrow €1.31tn under its main refinancing scheme, which will lend them money over three years at rates as low as minus 1 per cent, providing they meet certain lending thresholds.

Given the ECB’s main deposit rate is minus 0.5 per cent, the ultra-cheap lending is effectively a subsidy for the banking system and provides further evidence of how the ECB is pulling out all the stops to try to prevent the pandemic causing a credit crunch.

Frederik Ducrozet, strategist at Pictet Wealth Management, said the stronger than expected take-up “suggests that peripheral banks likely took a very large share of their extra allowances while core banks may have used about a third of their additional borrowing capacity”.

The banks are due to use about €760bn of the ultra-cheap loans to repay earlier ECB loans that are about to mature. But they are expected to use much of the remaining €549bn to buy bonds issued by

By offering multiyear loans to banks at an interest rate below its main deposit rate, the ECB is effectively providing a subsidy for the banking system © REUTERS

their own governments — earning them an instant profit on the “carry trade” between the negative rate from the ECB and the higher yield on government bonds.

While this will support the €1tn to €1.5tn of extra debt expected to be issued by eurozone governments to fund their pandemic responses this year, analysts say it will add to the “doom loop” tying the fate of the banks more closely to that of their national governments. Italian banks, for instance, already own more than €425bn of their own country’s debt — more than 10 per cent of their total assets.

“Increased sovereign exposure

by banks has typically been seen as a negative in recent years,” Jefferies banking analysts said in a note. “However, the policy stance is shifting and with government debt levels set to rise, it may make sense for banks to channel excess liquidity in this direction.”

The increase in the ECB’s bank lending programme from just over €1tn to almost €1.6tn will inflate the central bank’s balance sheet to above €6tn — rising to more than half the bloc’s gross domestic product for the first time.

To secure the lowest rate of minus 1 per cent on the new loans, banks must maintain their lending

to households and businesses — excluding residential mortgages — at the same level as the previous year.

Otherwise the interest rate rises to minus 0.5 per cent.

In the first few weeks after the pandemic swept across Europe, banks sharply increased their loans to companies — encouraged by significant government guarantees — while lending to households fell.

But analysts are sceptical that the fresh ECB loans will lead to a major boost in overall lending.

“The ECB is happy to provide the liquidity to the banks which pass it on to businesses and households,” said Florian Hense, economist at

Berenberg. “Whether the banks will ultimately need the money — and lend it out — remains to be seen.”

In response to the pandemic, the ECB beefed up its main lending scheme for banks by reducing the interest rate, lowering the lending threshold required to get the lowest rate, boosting the total banks can borrow and loosening the rules on what collateral they can use.

The latest round of lending is more than double the previous record amount for the ECB’s longerterm refinancing operation at the height of the eurozone sovereign debt crisis in March 2012 when it distributed €530bn of cheap loans to banks.

The central bank has already provided a major backstop for eurozone debt markets by committing to buy €1.35tn of bonds over the next 12 months. This has helped to lower the borrowing costs for the southern European countries hit hardest by the pandemic, but it has also prompted critics to accuse the ECB of bailing out profligate governments.

The ECB’s existing €2.2tn sovereign debt-buying programme already faces a threat from an explosive ruling last month by Germany’s constitutional court, which judged that the central bank had not properly assessed the economic and fiscal policy effects of its policy.

On Thursday, the anti-immigration Alternative for Germany party said in the country’s parliament that it planned to bring a fresh legal challenge against the ECB’s recent €1.35bn emergency bond-buying programme.

New US jobless claims edge lower to 1.51m

More than 45m Americans have now filed first-time claims but pace slows as states ease lockdowns

MATTHEW ROCCO

T

he number of Americans applying for first-time unemployment benefits edged lower again to 1.51m last week, as employers continued to call back workers amid the phasing out of coronavirusrelated shutdowns.

Seasonally adjusted new jobless claims for the week ending June 13 were down from a revised 1.57m the week before, the US labour department said on Thursday. The report was slightly worse than economists’ forecast of 1.3m new applications and marked a slower decline than in previous weeks.

More than 45m Americans have sought unemployment cheques since the beginning of the pandemic, sending the jobless rate above levels seen during the depths of the 2008 financial crisis.

Jobless claims have dipped from their peak as states slowly reopen, but remain at historically high levels © Bryan Woolston/Reuters

The labour market has recently been on the mend, aided by the reopening of the US economy and $3tn in fiscal stimulus from Washington, including loans to small businesses. New jobless claims have fallen in each of the last 11 weeks, and May brought an www.businessday.ng

unexpected surge in hiring, with some of the worst-hit sectors — including hospitality and retail — contributing to the job gains.

The small drop in claims last week — the slowest pace of decline since they began to recede from their recent heights — “reminds us that significant stress remains in the labour

https://www.facebook.com/businessdayng

market”, economists at Oxford Economics said.

Continuing claims, which tally the number of people actively receiving benefits, eased to 20.5m in the first week of June from 20.6m, equivalent to 14.1 per cent of the workforce. The so-called insured unemployment rate, which remained unchanged versus a week earlier, is considered an alternative measure of joblessness.

Pandemic Unemployment Assistance, a federal pro gramme that extends aid to the self-employed or other individuals who would not qualify for regular unemployment compensation, drew an unadjusted 760,526 first-time claims. The pace of PUA claims has fallen from 1.3m over the span of three weeks.

State programmes counted nearly 6.9m weekly claims at their peak in March, although that has fallen to fewer than 2m @Businessdayng

claims for the past three weeks.

US stocks were down on Thursday, as investors measured the latest jobs data against further evidence of a rebound in domestic manufacturing. The S&P 500 fell 0.4 per cent, while the tech-heavy Nasdaq ticked fractionally lower.

The Federal Reserve Bank of Philadelphia survey of manufacturing conditions in the region on Thursday showed growth for the first time since February. The index for current activity was up 27.5 in June, compared with minus 43.1 in May and better than economists’ expectations for another contraction of minus 23. Manufacturers were upbeat about future activity, with that gauge reaching its highest level in nearly 30 years.

Other data this week provided signs that the US economy has begun to regain its footing after the lockdowns.

Friday 19 June 2020

BUSINESS DAY

19

FINANCIAL TIMES

COMPANIES & MARKETS

@ FINANCIAL TIMES LIMITED

The fall of currencies under the spell of stocks worries strategists Analysts note that exchange rates have become detached from the usual drivers EVA SZALAY

C

urrency analysts are lamenting an avalanche of cheap money from the US Federal Reserve, which they say has created bizarre conditions in which exchange rates track stocks rather than economic fundamentals.

For decades, strategists have analysed exchange rates on the basis of the outlook for growth and interest rates in the countries concerned. Generally, the better the prospects, the better the currency can be expected to perform.

But that relationship has broken down since March’s market rout, analysts say. As the global economy moves towards one of its worst recessions in history, currencies that are usually most sensitive to growth have become the best performers against the US dollar.

The Australian dollar, for example, which usually weakens when demand drops, has gained about 18 per cent against its US counterpart over that period — despite Covid-19 disruption to global trade hitting the exportdependent economy hard. Sterling, meanwhile, has climbed about 9 per cent despite difficult Brexit negotiations, mounting UK unemployment and a collapse in economic output.

The OECD predicts the UK will suffer the largest contraction this year among advanced economies.

Ben Randol, a currency strategist at Bank of America, said fundamental economic indicators have not mattered for currencies since the Fed’s

Despite local economic turmoil, the Australian dollar is up about 18% against its US counterpart since March’s market rout, while the pound has gained 9% © FT montage

series of interventions in March. Instead, US equity markets have become the significant driver of the value of the dollar, which has weakened as stocks have soared.

The situation was “antithetical to the way FX markets are supposed to work,” said Mr Randol.

“FX trading has been reduced to a leap of faith in the Fed ‘put’,” he added, alluding to the belief that the central bank will always be on hand with measures to alleviate shocks to asset prices. “Macro factors . . . and terms of trade have simply not been relevant.”

According to the bank’s analysis, the correlation between equity prices and major currencies is at its strongest for 15 years, turning currency pairs

into a “blatant reflection” of US stock markets.

Dominic Bunning, a currency strategist at HSBC, agrees that the relationship between the two has been unusually close since March, meaning that “as the S&P 500 falls, the dollar rallies . . . as the S&P 500 recovers, the dollar sells off”.

Analysts say it is very rare for stocks and currencies to move in near-lockstep for a sustained period.

Mr Randol said the last time equity prices appeared to drive exchange rates was during a two-week period in August 2014, and before then, in September 2009, when the dollar weakened and equity markets rebounded. But the global economy

had already shown signs of a recovery by that point in the last financial crisis. Today, the economic data is still deteriorating.

Strategists attribute the recent moves to the radical actions of central banks and governments to fend off the worst effects of the pandemic.

Since the start of the Covid-19 crisis, interest rates in major economies have been slashed to near zero, wiping out an important metric for assessing currencies. At the same time, governments around the world implemented lockdowns, creating huge uncertainty about the path of the global economy that has forced analysts to scrap their previous projections.

At the height of the volatility, and as analysts lacked a lot of their usual valuation inputs, central banks’ vast bond-buying programmes gave investors something to fix on. Ugo Lancioni, head of global currency at Neuberger Berman, said: “After 11 years of [quantitative easing] we know that it lifts asset prices even if fundamentals are not there yet.”

The combination of rate cuts, asset-purchasing programmes and massive fiscal stimulus sparked a dramatic rally in share prices — which dragged foreign exchange markets along too. HSBC’s Mr Bunning said: “With too much to digest and vast lingering uncertainty, FX fell into the welcoming arms of [risk sentiment].”

Normal market relationships may be starting to re-establish themselves. Analysts say interest rate differentials are starting to play a bigger role again, with investors distinguishing between currencies as the various relief programmes from central banks sink in.

But without a clearer understanding of the economic impact of Covid-19, or a resolution of tensions between the US and China, broader sentiment will continue to drive the currency market, said Neil Williams, a senior economic adviser at asset manager Federated Hermes.

“I find there is a lack of consensus and everyone is confused about the world,” said Neuberger Berman’s Mr Lancioni. “The big challenge is figuring out the right value for the dollar and I don’t think the market has got there yet.”

US retail recovery delivers $28bn blow to short sellers Pandemic bets against consumer-focused stocks wrongfooted by uplift for DIY and homeware ALISTAIR GRAY

A

pandemic boom for homewares, ecommerce and discount stores has wrongfooted hedge funds and other speculators who bet against US retailers before a historic rally, according to an analysis of $27.8bn in losses that the bearish positions have racked up since the start of April.

An index of 88 listed US retail stocks has surged 57 per cent over the period, more than double the rally in the wider market, causing heavy paper losses for short sellers who expected the sector to be at the sharp end of the coronavirus crisis.

Shorts, which profit when share prices decline and had gambled on a broad-based sell-off in US retail, were caught out again this week after economic data pointed to a return of discretionary consumer spending. US retail sales rebounded 17.7 per cent in May from a slump in April, more than twice the rate of recovery that economists had forecast.

According to data provider S3 Partners, those who anticipated a squeeze in household finances to dent spending on furniture and home improvement have been hit

Share rises for Home Depot and fellow DIY chain Lowe’s have led to a combined $1.2bn loss for short sellers © AFP via Getty Images

particularly hard. Americans under lockdown have splashed out on upgrading their living spaces, driving up shares in companies with homewares exposure.

Shorts have lost $3bn on Wayfair, the online retailer, whose shares have quadrupled since March. “We’ve had a tsunami of new customers come in,” Niraj Shah, co-founder, told an industry conference this week.

The shorts’ mark-to-market loss on Wayfair is greater than 100 per cent of the value of their interest in the stock. In dollar terms, it is almost as large as their loss www.businessday.ng

on Amazon over the period, even though Wayfair’s $19bn market capitalisation is little more than 1 per cent of Amazon’s.

Despite the recent losses, shorts still have an aggressive position against Wayfair, equivalent to 30 per cent of its floated stock. Bears remain sceptical about the group’s expenses, particularly marketing costs, which pushed it to a $286m first-quarter loss despite a 20 per cent year-on-year jump in sales.

Losses on shorts in furnishings company RH, formerly known as Restoration Hardware, and the duvets-to-dinnerware chain Bed

https://www.facebook.com/businessdayng

Bath & Beyond are also equivalent to almost 100 per cent of the value of the positions over the period.

Shorts also lost $490m, on Williams-Sonoma, an upscale kitchenware brand. “We’ve had great success during this time,” Laura Alber, Williams-Sonoma’s chief executive, told the conference this week.

The resurgence of DIY during lockdown has pushed up shares in Home Depot and Lowe’s, resulting in a combined $1.2bn loss for short sellers.

In a handful of cases, negative positions against retailers have paid off. Shorts have turned a $96m profit over the period on Tiffany, as concerns have grown that the crisis threatens the jeweller’s planned acquisition by LVMH, and eked out a $2m gain on the department store group JCPenney, which filed for bankruptcy last month.

However, shorts have incurred heavy paper losses on ecommerce groups including eBay and Etsy, the used car dealer CarMax, and the discount retailer Ollie’s Bargain Outlet.

Indeed, despite widespread store closures and the onset of a global recession, only three out @Businessdayng

of 88 listed US retail stocks have declined since the start of April.

“Shorts in the retail sector have taken a big hit,” said Ihor Dusaniwsky, managing director at S3 Partners. “People jumped into those names thinking retail spending was going to drop. But the online services really did well, and it really caught the short sellers unaware that there was going to be a very quick recovery in a lot of these stock prices.”

Discretionary bricks-and-mortar retailers are recovering only gradually as restrictions on movement are loosened, however, and shorts are betting equity prices will eventually reflect intense financial pressures in the sector. Clothing chains J Jill and Francesca’s have warned in recent days about their ability to continue as going concerns.

As of this week, short interest in US retail totalled $70.4bn, up from $46.7bn at the end of March, according to S3.

The biggest position is against Bed Bath & Beyond, where shorts have accumulated positions equivalent to 62 per cent of the company’s floated stock.

Friday 19 June 2020

BUSINESS DAY

29

INTERVIEW Nigeria must learn from past experiences in contending with pandemics – Prof. A. Nasidi Prof. Abdussalam Nasidi a chief epidemiologist for Nigeria, Federal Ministry of Health a position he held for 16 years, before he was appointed director public health in the ministry 2008. On retirement, he was recalled in 2011 by the Federal Ministry of Health to establish and serve as pioneer Director-General and CEO of the National Centre for Disease Control (NCDC). He was recently appointed by the Federal Government to serve as secretary of a taskforce to rescue the government of Kano State from the pangs of COVID-19. In this interview with BASHIR HASSAN, he tells the story of the unique dimensions of the outbreak of Corona virus in the state and what the team did to assist the state interrupt, reduce and mitigate the spread and impact of the virus.

W

no more any healthcare worker in Kano was infected till we left Kano.

This helped to stabilize and build the confidence of the health care workers and made most of them to return to their duties.

We also fast helped to ramp up laboratory test capacity and this involved the activation of laboratories that were not functional and raised their capacity to test from 40 – 50 per day increased to 660 tests per day. This contributed to decrease in laboratory result turn around and reduced the amount of time that people were kept in isolation centers. Many were discharged as their results were now coming fast from Kano laboratories.

What can you say about the mysterious deaths that happened in Kano?

The MTT set out to unravel the socalled mysterious deaths that were occurring in areas of active transmission of corona virus and also those who died mostly in low incidence areas. Majority of the deads were people above the age of 60. Most of those who died had other underlying diseases like diabetes, asthma, high blood pressure. The investigation was also designed to provide relationship, if any between the mortalities and COVID19.

Most of the deaths occurred during the month of April which coincided with the fasting period. For cultural reasons, those who died during this period were immediately buried. So we could not reach any of them for the conventional autopsy, and had to resort to verbal autopsy by interviewing relatives and following up to the grave yards to see what happened to them before they died and the disease they had before. Secondly, we tested those that died while we were there to determine what they have died of, including those that did not see obvious symptoms of Covid-9 through minimally invasive autopsy. Of course, we took samples from relatives of the dead also and recommended better methods for effective and safe burials in accordance to WHO and NCDC protocols with due consideration to local cultural sensitivities.

In effect, deaths were occurring at the time the corona virus was being transmitted and up to 65-68 percent of those that died actually complained of corona symptoms like coughing, difficulty in breathing, headaches, loss sense of smell, some abdominal pain diabetes related complains, just what you see in Covid-9 patients before they die.

Meaning they had one comorbidity www.businessday.ng

Prof. Abdussalam Nasidi

or the other. Additionally, and 25% of corpse sampled tested positive for the corona virus. This circumstantial evidence strongly support the opinion that COVID19 might have triggered these deaths. The analysis of the data is still on going and shall be released to the Minister of Health and Kano State Government on competition.

As we begin to open up to daily activities, are you concerned about a second wave of this virus?

I am most concerned about the second wave, not just because we are opening up for trade and worship and so on, but because the lockdown so far has not been very effective.

It worked in some places but in the peripheries and many other places, it actually did not work. This is because you cannot do a lockdown as per the way the WHO and NCDC is recommending. They are not taking into consideration some local or socio-cultural factors. Of course, there is also the issue of hunger, but it is not only hunger that affected our lockdown. There is also the ability to convince the people that this is real danger and that the benefit of having patience can save lives.

What I’m saying is that risk communication is very weak. The masses were not really convinced that the disease was real with the way it was

https://www.facebook.com/businessdayng

described. Therefore, many didn’t take it seriously -- they just played the hunger game to violate the lockdown.

The next is strategy. You say you lock down for three days; then the fourth day you reopen, people come out mix up again, some without face masks and not observing the social distancing, and then you say lockdown again. So these are things that really made it ineffective. With this in mind we are going to face a possible second wave and we pray it is not as severe as the first wave.

Do you see this country pre-

‘

We have gained experiences during this fight, but when another outbreak comes, we’ll forget about them and start all over again

‘

What is the achievement /primary objective of the team? e have been able to work with the state, establish good working relationships strengthen the response team and also put up a response structure with ten pillars that we believe is most effective to face the outbreak in case of an upsurge.

The pillars are about how to organize the response team to focus on things that needs immediate attention to give a more defined response with target and clear command structure starting with the Chairman of the Task Force, who also is the deputy governor; and it has a deputy chairman on technical and deputy chairman on administration. Under them, you have the incident manager, who is the coordinator.

Each of the ten pillars has been fortified. Before we came, they had 6 pillars but we foresaw that if action is not taken quickly in weeks the outbreak could get worse, so we added additional 4 pillars to deal with points of entry, monitoring, evaluation and research, as well as the pillars to deal with logistics such as transport and ambulance services. We also introduced a pillar for safety and security.

When you went to Kano what was the level of infections and deaths, and what is it now after the intervention?

As I said, before we came, there were many things put in place but while some were functioning, others were not doing well. Some of the things that were functioning well, to some extent were the handling of patients in the case management section and the issue of doing epidemiology and surveillance, following up to see where the disease is, and also the issue of establishing more treatment centers.

But, unfortunately, there was poor coordinated approach to all these because some of the key task force members became infected and about 5 or 6 of them were admitted in isolation and treatment centres thereby rendering the taskforce virtually paralyzed.

So this meant that the virus was traveling wide in communities. As soon as we came, we quickly organized training in groups -- the doctors, the nurses, the laboratory workers, immediately on how to prevent transmission of the virus, which is infection prevention and control.

We did practical demonstrations at the centers and with these trainings

@Businessdayng

pared in case of a second wave?

I don’t think we are so prepared but definitely we are more prepared than the first time. However, if it becomes severe, I don’t think we can cope easily.

In your years in public health, what are the lessons you would want to share with the public?

One of the lessons learnt is that, unfortunately, we keep jumping from one health emergency to the other without being fully prepared and also virtually ignoring the experience we had gained before. This happens mostly in Africa. For instance, we jumped from yellow fever to meningitis; from that to Ebola; from Ebola now to this.

We have gained experiences during this fight, but when another outbreak comes, we’ll forget about them and start all over again. We used polio preparedness, to an extent, to reduce the impact of Ebola and other diseases recently, but, to the surprise of most people, those who really worked successfully to control all those outbreaks like the Ebola, were never carried along or recruited to join in fighting the new outbreak so that they can share their experience and mitigate the impact of the virus. It was like starting all over again.

The next thing I would like to share is what we have done. Establishing the Nigeria Center for Disease Control had played a key role in actually removing the bureaucratic aspect that caused delays in response in the past. It was easy for NCDC to use the WHO guidelines and to adapt it to the Nigerian situation, and it is working.

So I would encourage other African countries to established their own centers for disease control or national public health institutes.

Now, almost all west Africa countries have theirs and a regional regional one for ECOWAS countries has been established.

Lastly the government should not be slow in mobilizing the masses and funding the activities that can mitigate the impact of the outbreak quickly. For instance, it took us almost one month to really get the country to know that this is a problem. Even after the virus came we were still not active in communicating to and mobilizing the Nigerian people to see that it is here and everybody must take precaution. I wish to recommend strongly that the Federal Government should support all states to strengthen their response, particularly states with large populations like Lagos, Kano, FCT and Rivers.

Friday 19 June 2020

BUSINESS DAY

21

AGRIBUSINESSINSIGHT Market Insights

Analysis

Commentaries

Experts/Industry Views

Commodities watch

Policy Reviews

Send in Commentaries to caleb.ojewale@businessdayonline.com

What Nigeria can do to avert post-COVID19 food crisis – Experts small. It is not nearly sufficient for what we require in agriculture. I think that the federal government would be better, focusing on a few things. One of them is the overall enabling environment for business. Second one is a particular issue around the ports, import and export of goods because for most of the imports of things like machinery for agricultural processing and then the export of commodities like the cashews and cocoa, we need a well-functioning port system, well-functioning physical infrastructure to do that. That is the role of the Federal Government.

The other thing I think that’s critical to all of this is agricultural technology.

We need to have more agtech and more farmers enabled so that they can take advantage of the opportunities available, such as ensuring they are growing the right crops, applying the right inputs at the right time, and have the required off takers.

It is essential that this next planting season works. I do not have words for my concern if we do not get the inputs in time into the hands of the farmers dealing with rain fed agricultural crops. If the seeds and the fertilizers are not there on time it is the recipe for catastrophe in Nigeria.

CALEB OJEWALE Twiiter: @calebtinolu

I

n a plethora of sessions over the last few weeks, experts in different parts of the agricultural value chain have expressed fears over food security in Nigeria due to the coronavirus pandemic. In a webinar session by the Guild of Nigerian Agriculture Journalists (GNAJ) on the “ The Imperative for Strategic Policy Direction” in limiting negative impacts of COVID-19 in Nigeria, panellists highlighted areas the country should give more attention.

These included Alhassan Cisse, FAO representative ad interim in Nigeria; Andrew Nevin, chief economist, PwC West Africa; Manzo Maigari, director general, Nigeria Agribusiness Group (NABG) and; Samuel Ogallah, senior climate specialist for Africa, Solidaridad.

Nigeria is not short of policies, but mostly falls short in implementation, they noted, highlighting areas that should get priority and those that may be evolved into other forms. There are also policy gaps, even with those currently existing, thereby limiting their effectiveness.

Andrew Nevin, chief economist, PwC West Africa here have been concerns on the complexity of the Federal Government’s agricultural policies, and what we would like to see in the medium term is a simplification of the role the FG plays. States need to take a leading role in charting agricultural policies and development, rather than a central led approach with limited impacts.

Nigeria needs to have a program that has small-scale farmers, extension, and outgrower programs, feeding into agricultural processing or export in every commodity. But, who is currently building those systems?

The only investment that is available for Nigeria has to come from the private sector and for this to happen, the private sector has to be confident they are operating in an environment that is going to work for everyone in the chain. And, of course, in agriculture, what is grown, the conditions of growing things and harvesting, processing vary very much by state.

Therefore, we would like to see it much more driven at the state level.

There is a need to see State governors talking directly to large international investors, bringing them into the states and getting them to work with the farmers to get the food production system going.

If that is going to happen then there is a need to rethink the federal government’s role and I think in many ways the complexity of the federal government’s involvement is a barrier to what has to happen.

What do we need from the federal government? From the federal government we’ve all heard of Anchor Borrowers Program, etc. But the truth is that the total quantum of money they have is so

T

Alhassan Cisse, FAO representative ad interim utting agriculture information and early warning systems in place is key in informing decision-making when it comes to agriculture. At FAO, we are exploring (more) ways that smallholder farmers can be supported. We are thinking of taking some fiscal models to support the private business people in the agricultural sector.

All these require having regular, systematic and reliable data and information to support the decision-making. Another thing that we do not know yet is the impact, but if you look at the statistic over the last few years you’ll see that Nigeria has made tremendous effort.

However, the effects of COVID-19 could make things worse if Nigeria does not pay attention to the disruption to the food system, including the transport, input supply, and hiring of seasonal works.

If we don’t pay attention, we could have a decrease of production meaning that the balance will increase the deficit of import and export and it can have a huge impact in the economy of the country. We have to make sure that in terms of policy recommendation, Nigeria endeavours to keep international trade open in West Africa. Nigeria can play a great role in making sure that there is intra-trade in agriculture.

While intra trade in West Africa is 10 to 12 percent, in Europe and Asia, it is about more than 70 percent. Therefore, this is one opportunity that we can we can leverage on. Nigeria has potentials, with soil and climate that are suitable for the great deal of the food the county and even West Africa need.

P

www.businessday.ng

Keeping the domestic food supply chain alive and functioning is key. Focus on the needs of the most vulnerable and scale social protection programs.

Manzo Maigari, director general, Nigeria Agribusiness Group (NABG) e are advocates that Nigeria as a country should create a business in agriculture. Any policy that does not agree with this is only going to be an effort in futility. The simple reason why nobody takes farming serious (in Nigeria) is because it remains a black hole; no standards, no regulation. No serious businessperson would put their funds in an uncertain venture.

We have advocated the issue of clusterization that is based on the understanding that over 70 percent of the agricultural landscape is dominated by smallholder farmers who on their own cannot do anything, and not even viable. Therefore, if a farmer has been clustered with an offtaker it becomes easy to direct funds and channel them into productive ventures for them.

While there have been developments such as the Anchor Borrowers program and NIRSAL Agro geo cooperatives, there should be a deliberate policy to back this and in crafting a policy like that, we expect the government takes a critical look at the status of agriculture as being in the concurrent list of the constitution.

What that simply means is that local governments, state governments and the federal government can each pursue their own agricultural agenda independently.

The current approach has so far proven counterproductive.

If we find it inconvenient to drop agriculture from the concurrent list, then we should make it in such a manner that efforts are concerted. If for instance, a region has soil and climatic conditions that are best for a kind of crop, the federal government should take the States along and take the local governments along so that they work together, pull resources together to achieve that.

There is also the need for a National Agricultural Development Corporation akin to the Nigerian National Petroleum Corporation (NNPC) because agriculture is even bigger than the oil economy. We must approach agriculture from that perspective in a manner that we have a national development company, to which states can zone certain percentages of their land mass and we give them seed money to clear these lands, develop these lands and then go into joint ventures. JVs with multinationals, JVs with Sovereigns because we are aware that there are a lot of countries that are looking for land to produce food and we can develop this with an integrated approach with percentage derivation paid back to host communities. With this, Nigeria will see agriculture developing in no time to drive

W

https://www.facebook.com/businessdayng

the economy of this country.

Samuel Ogallah, senior climate specialist for Africa, Solidaridad here is an urgent need for institutional review of policies and realignment. In the wake of covid-19, it has exposed how our policies are not aligned at the federal down to the state level to the local government level. Some of the policies are made at the federal level, but where are the farmers based?

The farmers are based in the grassroots at the local government level so the trickling down of those policies has become a challenge. And so there is urgent need, in the wake of covid-19, for policy realignment.

Ministries, departments and agencies need to begin to speak to each other. Let policies begin to speak to each other and become practical. There is also need for digitalization of Nigerian agriculture. The covid-19 has exposed how vulnerable we are in terms of digital agriculture. So what do we do to move forward? We need to digitalize the agricultural sector.

Can we make a technology that will locate where the farmers are? Do we have a database where you click on the farmer, where when you click on the farmers, you will know the number of hectares of land, type of crops, the type of facility the farmer needs in operating if you want to provide those services.

We also need to go forward to see if in terms of a lockdown like this, where do we find what and how do farmers access required inputs? These are some of the things that we need to do moving forward, especially digitalization. Can we use drones to distribute some of the input we are talking about? Do we know what a particular crop needs in Nigeria at a particular time especially in the light of climate change that the farmers are being faced with? Are we giving overdose of fertilizer or we are giving less?

The aspect of research and development is key for innovations and technologies. We have various agricultural research institutions but are they bringing out technology that are in sync with the local need? This is important because we cannot be importing technology from abroad that will not suit what our farmers need in Nigeria. Therefore, there is the need for indigenous research and development that suits the context and terrain our farmers are operating.

The policies we have cannot stand the test of time during crisis such as the one we have found ourselves in. And, God forbid, what if we have COVID 20 or 21? We don’t pray for that and that will not happen.

But the lessons that we have learned from COVID-19 should make us to become proactive in addressing our policy gaps and everybody must be on board. The way to go is by prioritising implementation, because we have some of these policies in place and they are lacking implementation. New ones that need to come on board also need to be implemented.

T

@Businessdayng

22

Friday 19 June 2020

BUSINESS DAY

LEADINGWOMAN Monica now heads Nigeria’s court of appeal Stories by DESMOND OKON

T

he Court of Appeal will have a woman behind the wheel of its affair for the next four years following the confirmation of Monica DongbanMensem’s by the Senate.

The new appointment of Dongban-Mensem’s as President and head of the court of appeal in Nigeria will be the second time a woman is leading at the highest level of the Appeal Court.

Dongban-Mensem was confirmed after a presidential nomination. On June 8, president Muhammadu Buhari sent the name of Dongban-Mensem to the Senate for confirmation as the substantive President of the Court of Appeal.

“President Muhammadu Buhari, in-line with his constitutional responsibility has sent the nomination of Her Lordship, Justice Monica Dongban-Mensem, Acting President, Court of Appeal to the Senate for confirmation as President, Court of Appeal.

“Justice Dongban-Mensem is

D

eath has a way of sending implicit messages and lessons about life and living. It has been doing so, doling out life lessons, from the beginning of time and on Sunday, 14 June 2020, it did again.

While Nigerians were having a time in church virtually, the news of Ibidun Ighodalo’s death shook everyone who knew her personally, and those who did not, but knew her work.

The tributes were heart-warning and emotive, but more importantly, they spoke more about the life she led, her devotion to women and her willingness to support women in their journey through life.

“I get very anxious and concerned about two topics, motherhood, and mental health. I always looked up to Ibidun Ighodalo on the whole motherhood journey, and now, she’s gone,” laments a mental health advocate, Lawal Dolapo.

The deceased founded Ibidunni Ighodalo Foundation (IIF), a non-profit organisation to raise awareness about infertility and to provide grants for couples that require fertility treatments such as in In Vitro Fertilization (IVF) and Intrauterine Insemination.

She started the foundation after being told by doctors that she would not be able to get pregnant

a serving Justice of the Court of Appeal and was recommended, as is the practice, by the National Judicial Council for the nomination by the President,” wrote Garba Shehu, spokesperson for the president.

Dongban-Mensem is the daughter of Douglas-Mensem, a retired Appeal Court judge. She was educated at Ahmadu Bello University, where she gained an LL.B and LL.M (Bachelors and Masters of Law) and then went for a postgraduate diploma at the Institute of Advanced Legal Studies in London.

Dongban-Mensem established the Kwapda’as Road Safety Demand (KRSD), a road safety organisation, after her first son, Samson Kwapda’as Dongban, died in a road accident.

On 5 March 2020 President Muhammadu Buhari appointed Dongban-Mensem as acting president of the Court of Appeal, after the retirement of Zainab Bulkachuwa. She was sworn in

by Tanko Muhammad, Chief Justice of Nigeria, on 6 March 2020. In April 2020, the National Judicial Council recommend-

ed her to President Buhari for confirmation as Appeal Court President.

The President then extended the appointment of DongbanMemsem as the acting President

of the Appeal Court further for a period of three months from June 3, 2020.

Ibidun Ighodalo lives on in hearts of many women

without being assisted.

In a note shared on the foundation’s website, she wrote: “I made a covenant with God and told Him that I would leave it completely in His hands. In the interim, as we wait for our miracle, I would help couples going through the same challenges by providing spiritual, financial, and psychological supwww.businessday.ng

port.

“I was ready to do my part to get rid of the stigma attached to childlessness. I wanted people to instead see couples-in-waiting as blessed mothers and fathers of nations!”

Many women like Dolapo, whether those looking to having children or inspiration for similar

https://www.facebook.com/businessdayng

projects, learnt from her exemplary life and benefited from her benevolence. Despite eleven failed IVFs, Ibidun was determined to help other couples experience and enjoy the gift of parenthood and fighting the stigma that accompanies the challenges of having children. And she did.

“I can’t believe this beautiful soul is gone. This woman is the reason many couples heard the cries of babies in their homes through her foundation. May God rest her soul...,” Ifeoma Stella, a social media user, wrote.

Although she adopted her children, she believed that “parenthood is a reality that should not be denied to any couple that desires it.”

Away from her commitment to couples, she was one of the few women who placed a premium in being a pillar to other women.

Celebrities like Nollywood comedian, Funke Akindele-Bello, aka Jenifa, spoke of how supportive she was. “(I’m) so confused! Don’t know what to write! Ibidun, you were a good friend, you supported my @Businessdayng

brand when I was very low. You helped position the Jenifa brand, you taught me how to be classy and decent. You were always there for me…,” actress, Jenifa, said.

The deaths of both Dr. Arene, another woman who was passionate about the paucity of women in leadership positions, and dedicated many years to changing the narrative; and Ighodalo, have shown that life and living are about impact.

We truly live by living for others. The relevance of our lives will be marked by the number of people who were inspired, impacted, and changed by your actions or inactions both directly and indirectly.

They will tell your story when you’re no more here to tell it yourself. Ighodalo did it. Through her service, she lives on in the hearts of Nigerians.

“I would like to take the time to say a big thank you to your foundation for funding my IVF treatment last year…. Your intervention gave us, my husband and I hope,” a grateful Nigerian and beneficiary wrote.

Friday 19 June 2020

Harvard Business Review

BUSINESS DAY

23

MANAGEMENTDIGEST

Case Study: Should you fight to keep a star?

BORIS GROYSBERG A LEADER AT AN INVESTMENT BANK WEIGHS HOW TO RESPOND WHEN HIS PRIZE EMPLOYEE RESIGNS. o you have a few minutes to talk?

The Slack message from Alysha Stark made Connor Stephenson uneasy. He was the managing director of equity capital markets at Paulson & Harper, a Chicago-​ based boutique investment bank, and Alysha was one of the directors on his team. She’d been leading the upcoming deal with MicroBase, and things had been going well.

But Connor knew that urgent meeting requests were often bad news.

Sure, he typed.

I’m free now.

When Alysha stepped into his office, she closed the door and sat down across from him.

“I might as well come right out with it,” she said. “I’m resigning.”

Connor’s heart sank. He didn’t know how the firm could handle MicroBase without Alysha; she was the only person at P&H who knew the intricacies of the semiconductor industry.

“Where are you going?” he asked. He tried to keep his voice calm, though he felt something between panic and anger.

“I’m taking a job at Randall,” she replied. Connor visibly winced. Randall was one of P&H’s competitors.

“They’re offering me 20% more base pay, plus a higher bonus range,” she explained.

Just two months earlier, Connor had asked Alysha about the rumors that she was thinking of leaving. She had reassured him: “We all get calls, of course, but nothing I would consider.” Connor had believed her. After all, her recent bonus had been generous, and she was on track for a promotion to managing director.

“Who else knows?” he asked.

“Right now, just my family.

And Trent, of course.”

Trent Tucker was an up-and-​ coming associate who worked closely with Alysha, and they made a powerhouse team. Connor instantly realized that Trent might follow her — such moves were common in their industry.

But it was good that Alysha had been discreet so far. If others knew that one of the firm’s best bankers was about to leave for Randall, it could hurt morale, not to mention the MicroBase deal.

At least now he — and human resources — would have more leeway to negotiate. At a previous firm, he’d made the mistake of extending a counteroffer to a

D

vice president being wooed by a rival, and then he’d spent the next six months fielding raise requests from the rest of his team.

Connor knew that many firms had a no-counteroffer policy; their attitude was “If you want to quit, quit.” But P&H took it case by case. Leaders would discuss deals with people they truly wanted to retain, while letting less valuable employees go. Alysha most certainly fell into the first category.

“I know the timing isn’t ideal,” she said now.

“It’s not,” he replied. They were set to start raising a new round of funding for the semiconductor company in the coming quarter.

“But I’m not only worried about MicroBase; I’m concerned about you and your future. We’re one of the top boutique firms in the country. Why do you want to leave? Is it really about the money?”

“That’s only part of it. I’m just ready for a change — or I will be, after the mandatory few months off. I’m getting stale here, and I’m really intrigued by the culture at Randall.”

Connor tried to read between the lines. Did Alysha feel uncomfortable at P&H? Was she implying that as a black woman, she’d be treated better at Randall?

“Alysha,” he said, “you know how much you’re valued here.

We all see you as a future leader of this firm. Can you give us a shot at keeping you?”

Alysha started to shake her head, but Connor kept going: “Just give me the rest of the day to see what we can come up with. I don’t want you to make this decision lightly. And I can’t tell you how sad I’d be to lose you as a colleague.” With that, Alysha’s expression softened.

She promised to wait the day out in the conference room and consider a counteroffer. www.businessday.ng

NOT THAT MANY ALYSHAS As soon as Alysha left his office, Connor texted Malik Turner and arranged to meet him in the downstairs café. Malik, a fellow managing director who focused on mergers and acquisitions, was his closest friend at the firm.

While filling him in, Connor felt his resentment rising.

“Maybe I shouldn’t fight to keep her. I mean, maybe it’s more like ‘good riddance,’” he said.

“Good riddance to Alysha?

We’re still talking about your favorite team member, right?” Malik asked, confused.

“Yes, I know. But two months ago she said she wasn’t looking to make a switch. Then clearly she interviewed behind my back.”

“OK, so you feel betrayed. But did you really expect her to tell you that Randall was trying to poach her? No one does that.”

And think about it,” Malik continued. “She’s an incredibly talented black female investment banker focused on tech. Of course she’s going to get offers.”

Connor had to admit that he knew how much in demand talent like Alysha was. But he’d let his conversation with her too easily assuage his concerns.

“Have you talked to Joshua yet?” Malik asked. Joshua Schafer was the president and cofounder of the firm.

“We had a quick text conversation. He said that he trusts me to figure out what’s best and that he’ll have my back.”

“Good. Now what about Trent? Does he know enough about MicroBase to jump in?”

“He’s smart, and he knows a lot. But he’s more junior than Alysha is, and the client is not going to see him the same way they see her. I’ll have to step in myself, and I’m already spread thin. Plus, I’m sure he’s got an of-

https://www.facebook.com/businessdayng

fer from Randall as well.”

“OK, here’s your game plan.

Talk to Trent and find out what he’s thinking. Then have HR get on the phone with some recruiters to see who else might be out there.”

Connor rolled his eyes. Of course he needed to consider external candidates, but given P&H’s hiring protocols, there was no way he’d have someone in the role soon enough to get moving on MicroBase.

“If I were you, Con, I’d put together a counteroffer. There aren’t that many Alyshas in this business. Losing her — and perhaps Trent — would be bad for you and the whole firm.”

WE NEED CONTINUITY Connor asked Trent to meet him in his office. “I hear Alysha’s already told you about her offer.”

“She has. It seems like a great opportunity.”

“For her?” Connor probed.

“Of course,” Trent replied, “and for me too.”

“You’re thinking about going with her?”

“Well, Randall’s made me an offer, and it’s more money. But I haven’t accepted yet.”

Connor knew that pay was often the primary motivator for bankers, but other things also mattered: firm culture, reputation, opportunities, a good team leader. He believed that Trent had to care about P&H’s cachet, management’s support and the possibility of an early promotion.

Ordinarily, such rapid advancement for an associate would have been out of the question.

But if Alysha were really walking today, elevating Trent was probably Connor’s most time- and cost-efficient option.

Some experts argue that counteroffers are more cost-effective than internal promotions or outside hires. @Businessdayng

“I can’t promise anything yet, Trent, but I’m wondering if a promotion could entice you to stay.”

“That would definitely make me think twice,” Trent said, looking pleased.

“I’ll be straight with you. If Alysha leaves — and I’m still hoping she’ll reconsider — I’d prefer to bring in an established banker with the same level of experience that she has. But I might not be able to do that for a variety of reasons.”

Trent nodded.

“So this could be a great opportunity for you. I’d like to do whatever it takes to keep you.

We need continuity on MicroBase. You helped construct all the models, and you’re well acquainted with the players there.”

“I’m certainly interested,” Trent replied. “Of course, I’d need specifics.”

Connor stood up and shook his hand. “OK. Let me get back to you.” Inside, he felt queasy. Now he was looking at preparing two counteroffers.

CONSIDER THE RISKS Early that afternoon, Connor sat down with Liana, an HR manager.

“I’m kicking myself for ignoring all the signs,” he said. “This shouldn’t be a crisis. I should have had a pipeline, been more proactive about succession planning, retention — all of it.”

Liana didn’t respond immediately, and he suspected she agreed with him but didn’t want to rub salt in his wounds.

“Let’s go over your options,” she said, jotting down “Counter,” “Promote” and “External” on a notepad.

“I guess ‘Go back in time’ isn’t really one of my choices, is it?”

“Afraid not,” Liana said. “Now, I talked to two of our recruiters earlier, and they didn’t sound hopeful about finding someone with Alysha’s expertise in semiconductors. There are people out there, as you know, but most of them have made moves recently, and none of them have her profile.”

“She’s one of the few women in this field — I realize that.”

“And one of fewer women of color, which may be why she’s considering Randall. They’re known for their inclusion initiatives, and they’ve got great diversity on their executive committee.”

“And we don’t,” Connor acknowledged.

“No, not yet. But we’re working on it, and we should be sure to communicate that to Alysha.”

“Are those recruiters looking only at the big firms?” Connor asked. “We should check the smaller, regional firms too. That’s where Alysha came from.”

24

Friday 19 June 2020

BUSINESS DAY

Hotels

Hoteliers still skeptical on reopening as regulation, safety concerns mount OBINNA EMELIKE

D

espite the easing of the lockdown and lifting of restriction on the operation of hotels and restaurants within hotels, by the federal government on June 1, 2020, most hotels, especially in Lagos and Abuja are still shutdown Many hoteliers in Abuja are held back because the safety protocol on reopening their hotels are not clear yet, while they still expect palliatives from government to enable them bounce back to business. In Lagos, reopening is not feasible now as hoteliers have been calling on the Lagos State Government to work out palliatives for operators that would help cushion the impact of the lockdown on their business.

Before reopening, Hotel Owners and Managers Association of Lagos (HOMAL) and other tourism and hospitality associations in Lagos are insisting that the hospitality sector deserves special interventions following the lockdown that kept all hotels and tourism outfits under lock and key.

Speaking at a recent briefing in Lagos, Samuel Alabi, chairman, HOMAL, decried that since March the hospitality sector has been shutdown in compliance with government directives with huge losses, wears and tires that are big constrains to reopening.

Aside no palliatives yet from government, Lagos ho-

teliers are frowning at government’s proposed ‘Register to Reopen’ policy, noting that it would amount to subjecting hoteliers to rigorous and costladen reopening exercise.

Instead of the registration, Lagos hoteliers advised government to release a unified safety and health protocol to guide their operations.

Speaking on the registration issue, Alabi said, “We propose that government should release reopening protocols as done for manufacturing, retail shops, banks and other sectors that were allowed even under the relaxed restriction regime for compliance by our members.

Going by the large numbers of

hotels in Lagos, many of our members feared that it will not come to their turn weeks after being granted permission to reopen their business”.

However, it seems the Lagos State government is insisting on the register to reopen policy.

Explaining the rationale for the registration, Uzamat Akinbile-Yusuf, Commissioner for Tourism, Arts and Culture, Lagos State, said, “I want to use this medium to call on owners of hotels and entertainment businesses to regularise their facilities with the government for proper planning, documentation and provision of palliatives.”

Speaking at a recent min-

isterial briefing, the commissioner said that the state government is not in hurry to reopen the hospitality sector, as well as, entertainment businesses going by the ravaging COVID-19 pandemic in the state.

In order to restart the state’s economy and most importantly, protect the citizens at all times, the commissioner said, “We have issued guidelines to operators of hotels and restaurants and some other tourism establishments.

“Facilities that were seen not to have complied with these new directives were sealed off during enforcement exercise by officials of the Ministry.

“Now that the state government is considering full opening of the state’s economy, additional, detailed and extensive guidelines would still be given by the government once plans are concluded to open the sector for full operations”.

In line with the commissioner, Bode Ademola, a hotel regulator, noted that, “Businesses must not exist to the detriment of the lives of the people. But if there are modalities that can make you operate at no risk to the populace, then hoteliers should be ready to adopt such modalities or strategies”.

Hoteliers are now waiting for the extensive guidelines to reopen as the palliatives may not get to them. But small hotels are opening to guests, while the big brands are still shutdown, waiting for the extensive guidelines.

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

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

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

Tel: 01 277 3560

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

Tel: +234 9 4603900, +234 805 7522500

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

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

206 Exclusive Hotel Plot 206 Oladipo Diya Road Opposite Olympia Estate

By Games Village Second Gate Durumi2 Abuja

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

COVID-19 threatens record year for Africa’s hotel developers OBINNA EMELIKE

A

frican hotel development had returned to growth at the start of 2020, with more than 78,000 rooms in 408 hotels in the pipeline, according to the 12thannual survey by W Hospitality Group, acknowledged as the industry’s most authoritative source.

However, the COVID-19 outbreak is now shattering the dreams of Africa’s hotel industry.

According to Trevor Ward, managing director, W Hospitality Group, “The growth of the chains’ presence in Africa has been a very positive story since we started this analysis in 2009.

It is quite clear from the numbers that the chains, the developers, the investors –

and all of us at W Hospitality Group – continue to believe in the opportunities that Africa presents in the hotel and tourism industry. However, our industry has been devastated by the impact of COVID-19, possibly more so than most other economic sectors, mainly because of the almost total shutdown of borders and of the aviation sector – no flights means no guests.”

Wards foresees slowdown in growth. “With that background, we see a slowdown in pipeline growth in 2020, as we all get to grips with the new reality. With so many of the players locked down, fewer deals will be signed, and it is inevitable that some of the planned openings in 2020 will be delayed, due to closed or slower-paced construction sites, restrictions on fundwww.businessday.ng

ing and a lack of market demand. According to our latest data, there are 90 hotels with 17,000 rooms scheduled to open in 2020, but we estimate that at least half of these will be delayed, bringing the actualisation rate down to no more than 40 percent”, he says.

This year’s African Hotel Chain Development Pipeline survey covers 35 international and regional hotel contributors across the 54 countries in north and subSaharan Africa, and in the Indian Ocean islands. It reveals a 3.6 percent increase on the 2019 pipeline. Most encouraging, according to the survey, was a record 68 chain hotels opening last year, fully 75 percent of those, which were scheduled to open, with 11,000 rooms. That performance was substantially up from

the 39 percent of those scheduled to open in 2018 actually doing so.

Accor performed particularly well; it opened 18 hotels last year with almost 3,500 rooms in its various brands, ranging from Ibis to Fairmont.

As expected, Marriott, the world’s largest hotel chain, has the largest pipeline in Africa, 22 percent more hotels and 6 percent more rooms than second-placed Accor, but Accor has been catching up fast, signing 25 new deals last year, compared to Marriott’s 17 new projects.

Speaking on the expectations for the second half of the year, Trevor Ward says,“We have to wait and see what will happen in the second half of 2020, and in 2021, as we emerge from lockdown and other restrictions.

https://www.facebook.com/businessdayng

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

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

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

Friday 19 June 2020

BUSINESS DAY

25

NEWSFEATURE

Lessons from Edo State’s basic education transformation drive STEPHEN ONYEKWELU

E

do State’s achievements in transforming basic education delivery are showing that scaling innovation and change across any critical sector is quicker when led by strong political leadership.

Two years ago, under the strong political leadership of Godwin Obaseki, governor of Edo State, the five million people strong state embarked on a long journey to upskill teachers in the basic education space and invest heavily in education technologies.

This makes more sense given that experts have said for Nigeria to build an education system that is relevant in the twenty-first century; it needs to apply digital tools, which personalise the learning process for each individual.

Nigeria largely operates an education system that was built in the nineteenth century for the industrial revolution in a twenty-first century that is driven by innovation. Such an education system has outlived its relevance.

“The market of learners is ready for new ways of learning our experience has shown. What we see is that digital technology comprising smartphones and hyper-fast internet connections, faster processors and cheaper computing are forcing us to rethink our approach to education.

Government officials and entrepreneurs may have the vision, the challenge is the willingness to apply this vision, Sim Shagaya, founder uLesson said during at BusinessDay’s Digital Dialogues titled “A National Conversation: Mapping Nigeria’s Response to COVID-19.”

In April 2018, Edo State launched a programme to retrain and support all 15,000 government teachers— novice and experienced. This was to transform the learning outcomes for the 300,000 children across 1,500 public primary and junior secondary schools in Edo State.

In June 2019, Obaseki said the Edo State government would ensure that the gains in education technologies enabled teaching and learning recorded in primary schools through the Edo Basic Education Sector Transformation (EdoBest) programme are sustained at the secondary school level by designating special junior secondary schools for technology transfer.

Rather than conduct slow pilots and trials over many years, EdoBEST boosted education capacity in the State in a single stroke. During April and May 2018 over 6,000 government teachers and more than 800 head-

Godwin Obaseki

teachers were trained as EdoBEST teachers across five, ten-day training sessions. Exactly a year later an additional 6,000 government teachers and 600 head teachers were added to the EdoBEST programme.

All headteachers are given additional training to enhance the management of their schools and cultivate a mindset geared towards excellence of both teacher and pupil.

Much of the traditional administrative ‘burden’ associated with managing a school is streamlined through the use of technology, giving more time to monitor classrooms and develop good relationships with parents/guardians and the wider community in which they work.

In additions all schools in the EdoBEST programme are using a school-wide pupil placement an approach known as across-grade ability grouping; which sees pupils grouped according to their ability and not their age, to strengthen their literacy and mathematics skills. This seems like an ‘obvious’ approach but it rarely happens.

Public primary schools in Edo State have witnessed a high influx of pupils from private schools across the 18 Local Government Areas of the state, due to the total transformation of the Basic Education Sector in the state. EdoBEST is changing lives and pupils in public primary schools across the state are at the centre stage.

The COVID-19 pandemic, which made the Federal Government of Niwww.businessday.ng

geria shut down schools, has resulted in the termination of learning for many states. But Edo State, through the EdoBEST@Home has sustained learning.

Schools have been closed for more than two months, in more than 190 countries affecting 1.57 billion children, but EdoBEST@Home has deployed measures for learning to continue through platforms, television and radio.

At the launch of Edo-BEST@ Home the governor emphasised it is an extension of the EdoBEST programme, which is now to be supported with mobile tutors to provide daily lessons on the State Universal

‘ Any politics that doesn’t develop people is bad. Politics that doesn’t take from our collective good to support the weakest in the society is bad politics and that is what we are changing in Edo State

https://www.facebook.com/businessdayng

Basic Education Board (SUBEB) website for parents across the state to keep their children occupied during the holidays.

“I remain committed to the provision of quality education for all as the new academic calendar begins during this period of partial lockdown; it is my pleasure to announce that we have provided an alternative source of schooling for our children and it is called Edo-BEST@Home,” the governor said.

Obaseki noted that his administration introduced the use of technology in the primary school system with the launch of Edo BEST two years ago, “we have acquainted over 280,000 children with technologybased learning model and trained 11,000 teachers and education managers on model digital teaching and learning methods.

According to him, over 40,000 users have accessed the lessons on SUBEB website. EdoBEST@Home comprises interactive audio lessons with customised messaging, digital self-study activity packs, mobile-phone-based interactive quizzes, digital storybooks and virtually moderated teacher and student classroom interactions.

The programme offers four hours of learning content daily, and the mobile technology company, MTN Nigeria, is a partner on the e-lesson programme, to provide zero-data access and two-way SMS at no cost to parents.

Experts have contended that the @Businessdayng

longer the school interruption, the larger the learning loss. This means the earlier schools can reopen the less risk of long-term damage to the learning journeys and well-being of millions of children. Prolonged school closures will exacerbate inequalities, deepen the learning crisis and expose the most vulnerable children to a heightened risk of exploitation.

“Over 30 percent of learners will not resume when the schools reopen after COVID-19 lockdown is lifted.

Young girls are getting pregnant as a result,” Otto Orondaam, founder, Slum2School said.

Finding innovative solutions is an urgent priority, not only to mitigate the learning loss but also to avoid flattening the education curve. While most of the solutions typically discussed are from highor middle-income countries, there the EdoBest@Home programme is helping the state’s education systems adapt to the schooling and learning crisis amid the COVID-19 lockdown.

The case of Edo state is paradigmatic.

The programme may not be perfect, and learning losses will be inevitable, but the current situation demands “harm-reduction” education policies that can mitigate the risks and minimise inequalities.

Thus, investing in education through innovative approaches that can reach everyone is imperative to avoid one of the most silent but potentially devastating consequences of COVID-19: the increase in the learning gap.

Some of the achievements of the EdoBEST programme include over 11, 356 teachers and headteachers trained on the use of modern technology to enhance teaching delivery and learning outcomes. About 234 public primary schools renovated with playground and over 12,000 pupils’ furniture (desks and chairs) distributed.

Under the programme, the state has also distributed over 1 million free textbooks distributed to over 270,000 pupils of public primary schools. It has also established an active trained School Basic Management Committee (SBMC) in communities across the state.

Other milestones achievements of EdoBEST include a total number of 3,781 children admitted into public primary schools across the 18 LGAs on the first week of school resumption last year. Approximately 2,057 out of the 3,781 pupils were from private schools.

“Any politics that doesn’t develop people is bad. Politics that doesn’t take from our collective good to support the weakest in the society is bad politics and that is what we are changing in Edo State,” Obaseki once said.

26

Fridsay 19 June 2020

BUSINESS DAY

BUSINESSDAY’S NATIONAL CONVERSATION: WHAT PANELLISTS SAID PANEL 1

PANEL 3

PANEL 2 Maurice Iwu, president, Bioresources Development Group (BDG) “We should move out from being just a consumer nation to a nation that produces. We should be part of the solutions. It should be made mandatory for the big pharmaceutical companies to have base units in-country, not just the tertiary stage of the industry.”

Kunle Oyelana, MD, GSK Nigeria

“The failed government seen in Nigeria today is as a result of the cumulative effect of leadership failure over the years. No matter the kind of plans one puts or has in Nigeria, with the kind of leaders Nigeria has, nothing good will come out of it.”

Mansur Ahmed, president, Manufacturers Association of Nigeria

Ofoviwe Aig-Imoukuede, director, Africa Initiative for Governance “All the processes in Nigeria’s civil service are weak, from recruitment to remuneration, among others.

Until we start to invest in our public and civil service, we will not get the needed results we require.”

Fola Laoye, founder and chief executive officer, Health Market Africa “When Covid came calling, the private sector realised the need to have a joint resource with the government. Large private sector response is an opportunity for us to think on how to merge all our resources which we know we have not just in terms of capital, but in terms of expertise and supply chains.”

“It is impossible to get good leadership in Nigeria if we do not get the right people into public positions.”

PANEL 4

“O v e r t h e p a s t t h r e e months, passenger travel reduced by about 90 percent, leading to a loss of GDP of about $28.5 billion for Africa. For Nigeria’s aviation industry, it was about $7 billion loss and about 90,000 jobs across the entire chain.”

Ibukun Awosika, chairman, First Bank of Nigeria “The banks are not national institutions, they are not government-owned. Banks are business institutions and the responsibility of the financial institutions is to make sure that they run efficiently and generate profit for their shareholders and create value for their stakeholders.”

“A major problem with leadership in Nigeria is the inability of the citizens to access public officer holders across the country.

Because of this, the leaders have lost touch with the people.”

Oby Ezekwesili,

Funke Adeyemi, regional director, Africa, International Air transport Association (IATA)

“First reaction from members of the manufacturing sector is anxiety, because we are in a situation where we do not have all the answers, and cannot predict where we are heading. The pandemic is introducing new limitations.”

JK Randle

Akin Abayomi, Lagos State commissioner for health “The underlying principle of managing COVID-19 is test and isolate to deter the opportunity for the virus to be transmitted from one person to the other.

In the case where we find majority asymptomatic but do not have significant features and are not in any perceived danger of deteriorating, we have to review our policies.”

“The pandemic has helped us to look at reforms that needed to be implemented.

Currently, we are looking at how to right-size government by doing some alignment of some government agencies and departments.

We are able to further deregulate the exchange rate moving from official rate of N305 to N360. We are also on the journey to merging to a single exchange rate. It is a process, we made a commitment and we are going to get there.”

Aliyu Mo dib o o Umar, chairman Raviya Media Services Limited “There is a void in governance in Nigeria, and to solve it, the country needs to look critically at the recruitment process in the civil service. There needs to be a bridge in the gap between political authority and central bureaucracy in the country, a situation where the political elite is influencing the processes in the civil service.”

“One of the things that will enable the full reopening of all the economies will be the availability of vaccines. We should now promote and encourage collaboration between the global pharmaceutical multinationals and local manufacturers in terms of manufacturing that will encourage technology transfer from global companies to local manufacturers. This will further strengthen our drug supply system and of course our ability to prepare for the next pandemic.”

Zainab Ahmed, minister of finance, budget and national planning

Peter Obi, a former governor of Anambra State

“It is really damaging when the central bank starts to allocate foreign exchange through multiple exchange rates. Unifying the exchange rate around a level that works for everybody is both urgent and important now.”

Yemi Kale, statistician-general, Nigerian Bureau of Statistics (NBS) “A recession in the third quarter is likely but will depend on a lot of things we do (fiscal policies) between now and the third quarter.”

Aisha Bello, PPP component lead, UK Nigeria Infrastructure Advisory Facility “If there was ever a will to make any changes or to push through the reforms that we need to push through, this is the time.”

www.businessday.ng

Prof. Paul Collier, professor Economics and Public Policy at Blavantnik School of Government

Acha Leke, Africa chairman, McKinsey & Co. “As we reopen our domestic economies, how much of the international economy will be willing to trade with us when we have not reached our peak yet? I think that is the challenge we are going to face.”

Charlie Robertson, global chief economist, Renaissance Capital “The government needs to get education right, get electricity right and if it gets those right, then it can get investment right.” https://www.facebook.com/businessdayng

@Businessdayng

Friday 19 June 2020

BUSINESS DAY

BUSINESSDAY’S NATIONAL CONVERSATION: WHAT PANELLISTS SAID PANEL 5 Austin Avuru, CEO, SEPLAT Petroleum “For the economy, unfortunately as you could see with higher costs and lower revenue from oil and gas, if you look at the 2019 budget performance, the oil revenues accounted for only 45 percent of the whole budget revenues. This year with the crisis at hand, oil and gas revenue will be probably less than 40 percent revenues.”

PANEL 6

PANEL 7

Otto Orondaam, founder, Slum2school

Ndidi Nwuneli, co-founder, Sahel Consulting

“It is important to look at the roots of the problems in education and not the resultant effects. Why are we educating? Our education system needs to be tied to a national vision.”

“Covid-19 presents us with a wonderful opportunity to re-imagine, retool and rebuild. It is painful, but we have to create an ecosystem that is strong and Nigeria has to commit to feeding itself and the rest of Africa.”

Patrick Nwagogo, country director/CEO Dale Carnegie Nigeria

Kifasi Onyeche Tifase, CEO, Siemens Nigeria

Abayomi Owubokun, CEO, Enyo Retail and Supply

Sanni Dangote, vice president, Dangote Group

“I question a system of education where after six years primary school, six of secondary school and four of university and if someone does not give you a job you could not do anything with your life. We need to build initiative and entrepreneurship into the content of our curriculum.”

“Projects are being shifted directly and businesses that are heavily dependent on the oil and gas sector are asking for massive discounts and shifting projects to further years because of cost pressures arising for the Covid pandemic.”

27

“The CBN is doing all it can to provide funds, but funding is not the only solution. There must be a cohesive and joint effort that everybody works – the private, public sectors and stakeholders – to be able to have a national plan in approaching agriculture.”

Tunji Adegbesan, founder, Gidimobile

“The government as both a participator and regulator needs to be more engaging to investors and private sectors to prepare the industry for the expected changes.”

Rolake Akinkigbea-Filani, MD, Energy Inc Advisors

“The effects of the crisis in education and joblessness among Nigerian youths are evident already: terrorism in the North East, banditry in the North West and Central and militancy in the South-South.”

Suleiman Elias Bogoro, executive secretary, TETFUND

“There is a global push into a low cabin future, so most of the global traditional sources of finance are passing their gaze deliberately on transition fuels such as gas and renewable.”

“There is the need for structured and developed ecosystem that supports the entire agric value chain.

We have been putting a lot of people to farm, but making them poorer, which is the biggest disincentive for anyone going into farming.”

“Over last 10 to 15 years, entrepreneurship was considered very important and introduced to ensure our graduates are relevant in solving local problems. It constituted an embarrassment that graduates left school and were stranded.”

Eyo Ekpo, Excredite Consulting Limited “The absence of a credible market is our challenge in the power sector.”

Boye Olusanya, COO, Flour Mills of Nigeria plc

Aliyu Abdulhameed, managing director, NIRSAL PLC “We cannot afford to have a corporate agriculture model in Nigeria. That will be a social disaster. The thinking is that the smallholder must be included.”

Sim Shagaya, founder, uLesson “We are using a 19thcentury education system for a 21st-century system and it just doesn’t work.”

Henry Ademola Adigun, team lead, Facility for Oil Sector Transformation “We must ensure that our fiscal systems allow investors to come in to put their money in gas infrastructure.”

PANEL 8 Lucy Newman, an independent director, governance & performance improvement advisor “Until the country is able to address the skills gap, it won’t make headway in tackling unemployment.” www.businessday.ng

Kola Masha, managing director, Babban Gona Nigeria Adekunle Sonola, executive director, commercial banking, Union Bank “There is a need for organisations and those who are capable to make the decision to weigh in on a critical sector that can transform the country.”

“In 1980, Thailand and Nigeria had the same per capita GDP, but today Thailand has a GDP four times that of Nigeria and has one of the lowest unemployment rates on the planet, about 0.7 percent unemployment rate, while Nigeria is on track to have 25-57 percent unemployment rate.”

Debola Williams, CEO, Red Media Africa

Haruna Jalo-Waziri, CEO, Central Securities Clearing System

“We need to pay more attention to technology and human resources to develop, taking cue from China. As a country, Nigeria needs to invest in technology and policy.

We need to be more deliberate about creating and utilising opportunities. 2020 is a year of dismantling stereotypes and birthing new ideas as well as collective action.”

“What makes a good education system is the context of what is taught.

If we don’t look into the country’s academic curriculum, we are wasting our time.” https://www.facebook.com/businessdayng

@Businessdayng

28

Fridsay 19 June 2020

BUSINESS DAY

BUSINESSDAY’S NATIONAL CONVERSATION: WHAT PANELLISTS SAID PANEL 9

PANEL 8 Efosa Ojomo, Global Prosperity research group leader, Clayton Christensen Institute for Disruptive Innovation “COVID-19 is unprecedented and has called for reorganisation. It is time to change the paradigm and employ new forms of doing things, it is necessary to leverage technology and engage in innovative activities.”

Baba Gana, pioneer deputy managing director, Nigeria LNG

Dave Uduanu, Chief Executive Officer, Sigma Pensions Limited..

“The government did two things right to make NLNG a success. First, they had a decree that guaranteed certain privileges to investors. The second thing was the political will of the government of that time to implement the project.”

“One of the lessons of history is that your regulators and your rule setters should be the smartest people in the room because essentially they write the rules and superintend over them.”

Teju Abisoye, acting executive secretary, Lagos State Employment Trust Fund

E d w i n D e v a ku m a r, group executive director, Dangote Industries Limited

“One of the ways we are solving the unemployment issue is by creating funds and supporting businesses that are resilient and warehouse a large number of the population.”

“We have to encourage local investors. If local investors are not encouraged to invest, no foreign investor will come in.”

Salamatu Hussaini Suleiman, former minister of state for foreign affairs “Unless and until we change our mindset, look inwards and imbibe principles that will propel us comprehensively as a country forward, we are still going to be out of the league of those countries that have made it.”

COMPANY NEWS Sigma Pensions MD harps on how success in pension industry could be replicated in other sectors MODESTUS ANAESORONYE

T

he Pension industry has been described as success story that could be replicated in other sectors to widen growth in many sectors of the economy. Today total pension assets is $30 billion with 8.5 million contributors, and more importantly about 256,000 retirees now receive their pensions regularly, Dave Uduanu, managing director/CEO of Sigma Pensions Limited said.

Ud u a n u , w h o m a d e the disclosure at the Digital Dialogue organised by BusinessDay in Lagos said the reforms that brought the successes in pensions include adequate capitalisation, good corporate governance, the right policies, and a renewed interest in

enhancing domestic investment.

He said one sector that is struggling is the power sector, which According to him needs adequate capitalisation. He said: “On the power sector, I think one of the things we have seen is that we have players who are not well capitalised and therefore overleveraged so they are struggling.”

“One of the things regulators must do beyond the technical assessment is also the commercial assessment, but more importantly is to encourage players and companies who are already successful to either come into this sector or to back entrepreneurs coming to this sector with capital. I think well capitalized operators would be very important and we have seen that happen in banking and in pensions.”

On what would prompt

growth in other sectors across the spectrum, he said: “The other area I want to emphasise on is domestic investors. We need to encourage our companies to achieve scale and it is important because we have a lot of fragmentation in some of these industries and we have companies that have achieved scale and they can become national and regional leaders. We can see what Dangote is doing in the area of cement and also what Nigerian banks are doing.

We can also have Nigerian insurance and pension companies’ dominant the local environment and then go regional.”

So, it is important to encourage domestic investors.

We always talk about foreign investors and we don’t give incentives for domestic investors to come in, Uduanu said.

The last point is again on boards with strong corporate governance standards, pointing that what is needed is a combination of well capitalised operators, domestic operators who are building businesses of scale and also, we need to encourage companies to build strong corporate governance standards.”

Indeed, it is a success story to be celebrated and I don’t think we should take it for granted because our national savings has increased from practically zero to five percent of GDP and it could be more. And our bond market is one of the deepest bond markets in Africa after South Africa, our equity market has struggled a bit and private equity market in Nigeria is now the second largest in Africa, he further noted.

Regenesys Foundation boosts online education in lockdown with N2.3bn funding MODESTUS ANAESORONYE

R

egenesys Foundation has announced a 100 million Rand, equal to N2.3 billion funding to help online students of Regenesys Business Schools across Africa meet tuition fees during the period of lockdown over covid-19 pandemic.

The funding will reduce student’s tuition fees by 60 percent, and have the capacity to accommodate 500 new students enrolling between now and 1st August 2020.

Regenesys Business

School in a statement said: “We are thrilled to announce a R100m lockdown education initiative pledge from the Regenesys Foundation to reduce Regenesys Business School’s tuition fees by 60 percent for 500 new students who wish to register for online qualifications between now and 1 August 2020.”

The institution according to the statement, wishes to help those affected by pay cuts and job losses to develop a competitive edge, or to start their own new ventures, so that they bounce back from the pandemic. www.businessday.ng

“Students from anywhere in Africa who qualify to enter our MBA, bachelors, postgraduate diplomas, and certificate programmes will be allocated places on a first-come, firstserved basis.”

The institution also said it is humbled by the generous spirit of the Regenesys community of alumni, students, faculty, and friends of Regenesys from 20 countries who made this initiative possible, by pledging support ranging from financial contributions and salary sacrifices to contribu-

tions in kind through lecturing, tutoring, assessment, research supervision, and mentoring and coaching.

Re g e ne sys Busine ss School is a global institution with footprints in India, South Africa & Nigeria.

Regenesys, recognised for excellence in academics, high quality management programmes and valuable contributions to the Individual, Society and Professionals operates in the management education and executive education space influencing students and corporates alike.

https://www.facebook.com/businessdayng

APM Terminals appoints Laursen as new Nigeria Country Manager AMAKA ANAGOR-EWUZIE

K

laus Holm Laursen has been appointed as the new Country Manager for APM Terminals Nigeria. In his new capacity, he will oversee the company’s operations in Apapa, Onne and Kano.

Until his appointment, Laursen was the Managing Director of APM Terminals, Poti Seaport - the largest port in Georgia, handling liquids, dry bulk, passenger ferries and 85 percent of Georgia’s container traffic. Laursen has worked with the Maersk Group since 1998 in various capacities and has served in various countries including Denmark, Malaysia, South Korea, Netherlands, Jordan and Egypt.

“I am happy to work in Nigeria. I believe Nigeria has a lot of potentials and our company is happy to contribute to the economic development of the country and the well being of the people. We will work with the Nigerian Ports Authority, Nigerian Shippers’ Council, Nigeria Customs Service and other relevant agencies of government at all levels to actualise the Ease of Doing Business policy of the Federal Government and make the ports more efficient,” he said.

According to him, APM Terminals in Nigeria will offer reliable, safe and efficient operations with a continuous improvement focus.

“We also assure our customers of flexible and solutions-oriented approach @Businessdayng

to address their needs, in addition to deploying innovative, digital solutions that enable customers to order their services quickly and easily,” Laursen said.

This year, APM Terminals Apapa has acquired seven additional Mobile Harbour Cranes as part of a fresh investment of USD80 million for the year 2020-2021, bringing the total investment by the company at the Apapa Port since 2006 to USD438 million, which is the highest by any private terminal operator in Nigeria, resulting in significant improvements in productivity.

APM Terminals has also restored a regular rail service for evacuation of cargo by rail to reduce pressure on the roads.

Last week, the terminal introduced two daily rail connections to Alagomeji Terminal in Yaba and Ijoko Terminal in Ogun State. With the connections, trucks can be deployed to both locations to collect containers and return empties, which the Nigeria Railway Corporation (NRC) will convey back to the port.

Friday 19 June 2020

BUSINESS DAY

news COVID-19: ECOWAS Ministerial C’ttee recommends gradual, coordinated opening of borders Innocent Odoh, Abuja

T

he ECOWAS Ministerial Coordination Committee on Transport, Logistics and Trade has made recommendations on the harmonised and gradual re-opening of land, air and sea borders for restoring cross-border economic activities, especially for movement of humanitarian personnel, medical supplies and equipment and essential goods in the fight against the COVID-19 pandemic.

The Communications Division of the ECOWAS Commission in Abuja said in a statement on Thursday that the recommendations were adopted for submission to the co-chairpersons of the ad-hoc Ministerial Committee, Nigeria’s minister of aviation, Hadi Sirika, and president of the ECOWAS Commission H.E Jean-Claude Kassi Brou, for onward submission to President of the Federal Republic of Nigeria and champion of the regional COVID-19 response, Muhammadu Buhari, for the subsequent presentation to the Summit of the ECOWAS Authority of Heads of State and Government.

The Ministerial Coordinating Committee, chaired by Sirika, made a plea for “strong and determined support for the ownership and implementation of the guidelines,” once adopted by the ECOWAS Authority of Heads of State and Government.

The ministers discussed and agreed on practical modalities based on the report of the regional experts meeting held virtually on June 8 and 10, 2020, as well as the draft Guidelines for the Harmonisation and Facilitation of

Cross Border Trade and Transport in the ECOWAS Region on the Covid-19 Pandemic and Related Post-Recovery Actions.

After their deliberations that took place June 12 and 16, 2020, the ministers recommended a gradual and coordinated opening of land borders and airports of ECOWAS Member States based on health data on the evolution of the pandemic and called for the appropriate fiscal measures by governments to support the effective implementation of the guidelines.

According to the meeting’s report, the opening of the borders is to be hinged on the proposed Guidelines for the mitigation of health risks and the harmonization and facilitation of cross-border trade and transport in the ECOWAS region in the context of the fight against the COVID-19 pandemic, amounting to a coordinated and progressive opening of air, land and maritime borders.

They also held that the reopening has become imperative in view of the need to revive the economies of ECOWAS member countries.

“The Ministers recommended a three-phased approach to the opening of land and air borders beginning with local internal domestic air and land transport within ECOWAS Member States, then a second phase which involves the opening of land and air borders between ECOWAS Member States, to allow the free movement of goods and persons on the basis of strict application of the proposed guidelines for the harmonization and facilitation of cross-border trade and transport in the ECOWAS region,” the statement said.

29

Property market quiet as investors hold back on COVID-19 uncertainty, fears CHUKA UROKO

U

nlike the food market that has been very active amid the ravaging impact of coronavirus pandemic, the property market globally has remained largely quiet as investors hold back investment over uncertainties and fears surrounding the deadly virus.

In Nigeria, though lay-offs and pay-cuts are forcing some people to downgrade their accommodation needs, market transactions have dropped significantly for reasons of social distancing rules and also because people are now more concerned about their health needs.

“I think for now the worry about the virus is still paramount in people’s heads and not about investment,” notes Chudi Ubosi, principal partner, Ubosi Eleh+Co, hoping

however that, “as we go back to work and the economy reopens fully, there will be need for discussion about investment and landlord/ tenant relationships.”

“Healthcare investment has been brought to the forefront in Nigeria with pharmaceutical and redevelopments leading the way,” notes Ayo Ibaru, chief operating officer at Northcourt, a real estate investment solution company.

Ibaru, who spoke in an interview with BusinessDay, points out that the hospitality segment of the market is the hardest hit as business travel and conferences have been cancelled, adding that hotel chains are now remodelling their businesses.

According to Ibaru, “The office market is yet to get back on its feet from the 2018 recession and co-working will have to readjust its operations

to succeed. Many homes will continue to double as offices.”

Nigeria is not alone in this lull. Even mature markets like UK and the US are also feeling the pinch. PropertyWire, an online residential property platform, reports that there is uncertainty in the UK regarding whether property is a safe and secure asset during the pandemic.

It notes that some 20 percent of property investors were planning to buy one or more properties in 2020 but will no longer be doing so due to COVID-19, citing research from FJP Investment.

“Today’s research demonstrates just how COVID-19 has affected people’s property investment plans,” says Jamie Johnson, chief executive of FJP Investment, adding, “there is a clear reluctance to engage with the market right now from both buyers and

sellers, despite the fact that real estate is still regarded as a safe investment avenue in this volatile period.

“Far from being business as normal, I believe prospective buyers and sellers will still tread with caution in the coming month.”

Johnson hopes however that “once there is more certainty about the future, it seems likely there will be a rush of activity in the property market.”

He notes further that fewer people want to buy a house at the moment, recalling that in December 2019, 68 percent of non-homeowners hoped to buy in the future, but that has now fallen to 52 percent.

Ibaru recalls too that when the pandemic started in December last year, everyone went into panic and different people were saying different things about the real estate market.

Experts advocate why there is need to focus on caring for sickle cell carriers in Nigeria ANTHONIA OBOKOH

E

xperts have called for the need to focus on caring for sickle cell carriers, saying the lack of proper sensitisation on the importance of genotype testing has led to what could have been prevented by the increasing numbers of children born with Sickle Cell Disorder (SCD) in Nigeria They say that the government should support haematology wards in the country and made provision for the treatment of the disease to some extent with the National Health Insurance Scheme (NHIS).

These experts discuss ahead as Nigeria joins the rest of the world to celebrate World SickleCell Day, every June 19, as they were engaged in a chat on twitter by the Nigeria Health Watch (NHW) focusing on caring for sickle cell warriors in Nigeria.

Sickle Cell Disease is a global health problem affecting millions of people. It is estimated that approximately 150,000 children are born with sickle cell disease in Nigeria every year, while about 40 million Nigerians are healthy carriers of the sickle cell gene.

Recently, the oldest Nigerian sickle-cell disorder woman, Ashata Onikoyi-Laguda, passed on February at the age of 94.

“Sickle cell warriors already have a lowered immune system.

They should be protected by ensuring they shield accurately.

To support them, we should provide palliatives (medicine and groceries) that will make shielding and isolation easier on them,” says Oyesola Oni, public relation officer, Sickle Cell Aid Foundation (SCAF), According to Oni, there is a myth/misconception; many people in Nigeria believe people living with sickle cell disease can’t amount to anything. We have lawyers, doctors and captains of industries all doing well despite having the condition.

“There is a misconception that people with sickle cell are always in the hospital on a mission. We have had warriors who didn’t have to go into hospital for a crisis for 2 years and in some cases 7 years,” Oni says.

David Ajibade, executive director, Brain and Body Foundation, also notes that many still believe there’s some sort of evil diabolical activity or force at work that causes sickle cell disease, which is why many parents still take their children to native medicine healers for treatment.

This is usually among the poorer members of society.

Sickle cell diseases are the conditions caused by the abnormal shape and low flexibility of red blood cells, which are otherwise flexible and round, and the reduction of blood and oxygen caused as these irregularly shaped red blood cells cannot easily pass through blood vessels. www.businessday.ng

L-R: Stella Jamgbadi, managing consultant, Stelco Agriconsult and Services; Joe Okojie, special adviser to Edo State governor on agriculture, forestry and food security programme, and Peter Uibia Aikhuomobhogbe, programme manager, Edo Agricultural Development Programme, during a training session for farmers in Benin City.

OPEXA lauds FG’s non-oil diversification Some provisions in new NBC code policy, seeks clearance of EEG backlog are unenforceable - Okoroji, others HARRISON EDEH, ABUJA

E

xecutive secretary, the Organised Private Sector Exporters Association (OPEXA), Jayeola Olarewaju, has lauded the Federal Government for its policies to diversify the economy, especially for its commitment to sustain the Export Expansion Grant (EEG) scheme since 2017.

Olarewaju states that the scheme had helped to foster transparency and formalise the export channels as goods undergo pre-shipment inspection by agencies appointed by the government, and the forex proceeds were being repatriated through banks and verified by CBN. “`Everything is documented and even the names of Top 100 exporters are published in the CBN’s annual report. This is a case study for industry best practices, representing the non-oil export sector,’’ he

says in a statement obtained

by BusinessDay. On the kind of stimulus that will spur the non-oil sector, he notes that it was imperative for the government to intervene and save the economy from a total collapse caused by coronavirus pandemic. ``Governments all over the world have come up with relief packages to balance the lives and livelihoods. However, it does not have to be grandiose plans; simple, practical things can help. ``Look at China’s example. Their trade ministry increased the export tax rebate on 1500 products in March and reduced the processing time of disbursement of rebate from 10 days to one week to ease the working capital funding. No wonder, China is the No.1 exporter in the world,’’ he states, citing an official circular issued by Chinese government.

https://www.facebook.com/businessdayng

Obinna Emelike

C

hairman, Copyright Society of Nigeria (COSON), Tony Okoroji, and other intellectual property stakeholders have described as unenforceable some of the provisions in the broadcast code recently released by the National Broadcasting Commission (NBC). Okoroji made his view known on his Twitter handle, @Tonyokoroji.

In the tweet, the copyright activist said some of the provisions of the new code are good, but some are unworkable while others are unconstitutional. He states that the NBC is attempting to overreach itself by assuming powers of the National Assembly, and called for a revisit of the amendments.

“I understand the good intents of the new NBC Broadcast Code, but some of the provisions are unworkable, some even unconstitutional. @Businessdayng

The commission cannot overreach its powers and assume the powers of the National Assembly. The code needs to be revisited,” he twitted.

Many players in the broadcast industry have expressed disapproval of the code, which is viewed an assault on their copyright. Jason Njoku, CEO, IrokoTV, states that there are amendments in the code that seek to limit exclusivity abridge the rights of copyright owners and have the potential to discourage investment in the sector. The same sentiment is expressed by Naz Onuzo, a movie producer, who says the NBC is wrong to seek to compel rights owners to sub-license their content.

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

30

Friday 19 June 2020

BUSINESS DAY

news How Edo sustains learning despite...

Continued from page 1

The region is facing a major crisis affecting learning and Nigeria is on top of the list, with almost 45 million learners affected nationwide, but Edo State has sus-

tained learning despite the outbreak, according to the World Bank Group’s report titled ‘Learning despite the crisis: the case of Edo State in Nigeria’.

To achieve this, Edo State has been adapting its flagship Edo Basic Education Sector Transformation (EdoBest) programme, which goal is to address the low levels of human capital formation and the high learning poverty, to a homebased version known as EdoBest@Home. The new adaptationoftheprogrammestartedas a response to COVID-19.

“The state is incorporating digital self-study activity packages that are distributed online (with zero data internet access) and via applications such as WhatsApp,” Martín De Simone, education specialist, Aisha Garba, education specialist, Gloria Joseph-Raji, senior economist, Joan Osa Oviawe, executive chairperson of the Edo State Universal Basic Education Board, Alex Twinomugisha, senior education technology specialist, and Andrew Ragatz, said in the report. “These packets contain hundreds of practice problems for all grades for different thematic areas and answer keys with feedback for parents or caregivers.”

Since its inception in 2018, EdoBest was conceived as a whole-system reform approach that leverages modern digital technologies backed by the science of learning to improve teaching and learning processes, by providing continuous teacher support and real-time monitoring of learning inputs, attendance, and learning outcomes.

The programme sought to transform the learning outcomes of 300,000 children across 1,500 public primary and junior secondary schools in the state. This was to be achieved through the retraining and support all 15,000 government teachers, novice and experienced.

EdoBest initiative is based on four big critical teaching and learning skills: following the teachers’ guide to deliver effective lessons; checking on every child’s learning; responding with feedback that accelerates learning outcomes, and motivating students towards good behaviour and academic effort.

Multiple factors have contributed to the success of EdoBest and its extension EdoBest@Home. According to the report by De Simone, Garba, Joseph-Raji, Oviawe, Twinomugisha and Ragatz, there are at least three fea-

tures that seem relevant and might be applied in other locations.

There has been a strong government leadership and ownership of the programme. Through the Edo State Universal Basic Education Board, the government showed a high commitment that in fact preceded the COVID-19 crisis and was reflected in the design of the EdoBest programme, which aims to transform the public education system and improve the learning outcomes of a generation using technology.

Edo State was in a unique position to quickly pivot towards remote learning because the government had been building its resilience for several years. The learning materials and lessons plans were already digitised and teachers were familiar and comfortable with the use of digital technologies, showing that investments in education technology might pay off in the least expected moments.

Public-private partnerships have been essential, and the programme is benefitting from a strong alliance between the government, the private sector, and the World Bank. The private sector has brought its expertise in education governance, teacher development, instructional design, community projects, and educational technology.

The government provides its resources and its ground presence in more than 1,500 public primary and junior secondary schools. The World Bank is supporting the programme with technical assistance and results-based financial resources.

The programme is marked by a high degree of contextspecificity. Edo State suffers from limited internet access, and in many cases, parents are not fully equipped to act as primary teachers. Data from the Demographic and Health Survey shows that only 46 percent of households possess a radio, 69 percent television, but 91 percent have a mobile phone.

The percentage of households with access to at least one of them is presumably higher. The multi-channel structure of the programme under implementation considers those constraints.

Subsequent extensions of the programme with World Bank support will enable the Edo government to scale up EdoBest to cover both primary and secondary education and to integrate the EdoBest@Home programme so that students can learn anytime, anywhere. In blending learning at school and learning at home using digital technologies, Edo State is at the forefront of reimagining education, the report said. www.businessday.ng

L-R: Reginald Karawusa, acting executive commissioner, legal and enforcement, Securities and Exchange Commission (SEC); Isyaku Tilde, acting executive commissioner, operations, and Mary Uduk, acting directorgeneral, during a meeting between SEC management and staff in Abuja.

Pic by Tunde Adeniyi

Development financing offers path to...

Continued from page 1

needed to fund universal metering for all electricity users, said Kester Enwereonu, director at Enugu DisCo. “Nigeria can float a special bond by the Debt Management Office (DMO) with repayment from electricity customers over an extended repayment programme of 10 years over the life cycle of the bond,” said Enwereonu.

A bond with a 10-year maturation in local currency will remove the obligation to pay outright for meters and spread the cost over a long period, with as little N500 monthly contribution from customers.

Rolake AkinkugbeFilani, managing director at EnergyInc Advisors, at the BusinessDay digital dialogue with the theme ‘A National Conversation: Mapping Nigeria’s Response to COVID-19’ on Wednesday alluded to the efficacy of long-term, local currency financing for projects in the energy sector.

“We need a single-digit long-term financing in local currency which our market is still, unfortunately, playing catch-up with,” Akinkugbe-Filani said.

Bruised by non-performing loans to the energy sector, commercial banks in Nigeria have a very low appetite for lending to the sector, leading experts to call for other funding sources including pension funds and the bond market.

DisCos say Nigeria’s metering gap is higher than the 6.5 million reported by the Nigerian Electricity Regulatory Commission (NERC).

Considering that there are over 20 million houses and facilities connected to electricity network in the country and just 4 million

customers are in the books of DisCos, the metering gap appears closer to over 16 million.

However, the cost of meters had gone up by over 20 percent from N36,991.50 to N44,896.17 for single-phase meters and from N67,055 to N82,855 for three-phase, so to procure over 16 million meters, using the cost of single-phase meter as an estimate, will cost N720 billion.

Enwereonu proposed that the Central Bank can provide immediate bridge finance of 50 percent to procure and install meters, while a bond issue or financing from development bank is being finalised.

Then proceeds could be used to refinance the CBN bridge funds and meet the balance 50 percent funding requirement.

If the estimated 20 million electricity customers are metered and brought into the payment basket and each paying an average of N5,000 monthly, it will make up for the current N40 billion shortfall.

But this will depend on capturing the accurate data of every customer using a Geographic Information System (GIS) to trace electricity supply cables to each user and enforce compulsory metering for all customers.

“Imagine operating a petrol fuelling station with pumps working without meters where the operator would look at the type of vehicle driven into the station to determine how much to charge for filling the vehicle tank. This is exactly what is happening in the electricity sector today,” Enwereonwu said.

Nigeria’s electricity market loses money and de-

https://www.facebook.com/businessdayng

pends on the government’s bailout to maintain a semblance of normalcy, hence it has been unable to attract investments.

“The erosion of capital in the power sector due to the absence of a credible market and poor tariffs are some of its biggest challenges,” said Eyo Ekpo, CEO of Excerdite Consulting Limited, at the BusinessDay digital conference.

He excoriated market participants for flouting rules governing the market, the lack of corporate governance, and poor leadership from the sector regulator.

This opens the sector to all manner of abuse, fraud, and extortion. DisCos have flouted rules by the regulator capping estimated billing and NERC is issuing fresh threats of sanctions but the reality is that an industry that haemorrhages over N40 billion monthly is never going to attract investments unless it does things differently.

In 2018, NERC introduced the Meter Asset Provider (MAPs) programme which allowed third-party investors to provide meters to customers for a fee but the project ran into troubled waters when the Nigerian Customs began applying a 35 percent levy meant for imported meters on every component to assemble them locally. Worse still, the MAPs had limited access to long-term funding.

According to NERC, only 22,825 end-use customers’ meters were installed during the fourth quarter of 2019, a significant fall from the 83,768 meters installed during the third quarter, prior to the introduction of the levy.

“The MAP programme tailored for extended repayment has failed because there is no long-term fund for the MAP providers to @Businessdayng

tap into to provide longterm repayment schemes.

MAP providers can only access short-term commercial loans at an average of 18-20 percent to be passed on to the repayment program,” said Enwereonu.

Analysts say long-term financing will revive the MAP programme, liquefy the sector, ensuring customers pay their fair share and reduce debts to the sector making it viable both for investments and taxation.

Meanwhile, the Federal Government on Thursday confirmed that it was on course to finding solutions to the several meters stuck at the Lagos port over 35 percent import duty levied on them.

Goddy Jedy-Agba, minister of state for power, confirmed this during a working visit to the Abuja Electricity Distribution Company, saying government was keen on ensuring metering of Nigerian electricity consumers as it directly affects revenue collections and liquidity issues in the sector.

BusinessDay had last week reported that while millions of electricity customers are being denied meters, container loads of imported components and manufactured meters are piling up at the ports because the Nigerian Customs Service is extending application of a 35 percent levy introduced by the government on imported meters to components used for meter production.

“Government is concerned and is working out a solution on issues of meters stuck at the port and I can assure you that very shortly, we would get the result. We want everyone metered and for the liquidity problem in the sector to be addressed,” he said.

Friday 19 June 2020

BUSINESS DAY

31

Sports Barcelona set for tough test at high-flying Sevilla Anthony Nlebem

J

ulen Lopetegui’s men are on a high thanks to last week’s derby win over Betis but Messi just loves playing – and scoring – against Sevilla. You won’t want to miss this one.

This coming weekend is set to start with top-quality entertainment, with Sevilla hosting Barcelona in a huge LaLiga Santander match on Friday night (kick-off 10pm local time).

The match is likely to have huge ramifications on the top of the LaLiga standings: whether Sevilla can strengthen their hold on a Champions League spot and whether Barça finish the season as champions… or not.

Both teams returned from the coronavirus-enforced break in the Spanish football season on the front foot.

Sevilla kicked off the restart with a big 2-0 win over city rivals Betis, with the performance even more impressive than the result.

Barcelona also returned in style, with Arturo Vidal

scoring after just 65 seconds on the way to a 4-0 away win over Mallorca in their first match back.

Key players to watch?

Lionel Messi is always one to watch, but especially

UEFA relaxes financial fair play rules to curb Covid-19 impact Anthony Nlebem

U

EFA has opted to temporarily soften its financial fair play (FFP) rules to help clubs impacted by the economic fall-out of the coronavirus crisis, European football’s governing body announced on Thursday.

FFP rules mean that, over a three-year period, clubs competing in European competition are not permitted to lose more than 30 million euros ($33.7m).

However, given the damage done to the footballing economy by the interruption to the sport caused by the pandemic, UEFA has agreed to a loosening of the rules which, it says, “aim at addressing the actual problem which is revenue shortfall due to COVID-19 and not financial mismanagement”.

It means that clubs will be given longer than usual to show they have met payments owed on transfers and salaries, while “the assessment of financial year 2020 is postponed for one season, and will be assessed together with the financial year 2021”.

These measures do not impact on decisions already taken before the crisis, so for example French club Marseille are still set to be punished after they were referred in March to the adjudicatory chamber of UEFA’s Club Financial Control

Body for not complying with an agreement to balance their books.

Manchester City have been banned from Europe for two years and handed a 30 millioneuro fine for serious breaches of FFP regulations between 2012 and 2016.

The English club have appealed to the Court of Arbitration for Sport in Switzerland, which will announce its judgement on the case in July.

The FFP rules were brought in to combat growing debt in European football.

Assessments began in 2011 when European clubs reported overall losses of 1.7 billion euros. In contrast, according to UEFA’s most recent annual “benchmarking” report, the 700 top-tier clubs across the continent made a combined profit of 140 million euros in 2018.

Meanwhile, UEFA has said it wants a harmonised European transfer window this summer closing on October 5, ahead of next season’s Champions League and Europa League group stages.

Following its latest executive committee meeting held

www.businessday.ng

via videoconference, UEFA said clubs would have until October 6 to register players for the group stage of next season’s European club competitions.

On Wednesday it was announced that the 2020-21 Champions League would start on October 20, with the Europa League group stage starting two days later.

The summer transfer window in Europe usually closes at the start of September, although individual countries do not all follow the same dates.

Football is still adapting after the current season was interrupted in mid-March because of the coronavirus pandemic.

FIFA has already permitted countries to open their transfer windows up to four weeks before the delayed season has been completed, although any new signings would not be eligible until next season.

Several countries are only just resuming competitions, with the seasons in the English Premier League and Spain’s La Liga not set to finish until late July. Italy’s Serie A will not now finish until early August.

On Wednesday UEFA announced that this season’s Champions League would be completed with a “final eight” straight knock-out format in Lisbon from August 12 to 23.

Similar formats have been adopted for the latter stages of the Europa League, in Germany, and the women’s Champions League, in Spain.

so against Sevilla. The Andalusians are his favourite victim; he has scored more goals over his career against them than against anybody else.

With 37 goals from his 38

meetings with Sevilla, the mercurial number 10 averages almost a goal a game every time he takes on the Andalusians.

To say Sevilla are sick of the sight of him would be an understatement.

Another of Quique Setien’s men to watch is Jordi Alba.

The left-back comes into the game in good form and with fresh legs; a goal and an assist vs Mallorca plus sitting out Tuesday’s match with Levante at the Camp Nou means he’ll be raring to go. His battle down the flank with Sevilla’s veteran right back Jesus Navas should be fascinating.

On the home side, watch out for defensive midfielder Fernando Reges, who holds everything together in the middle of the park and even chipped in with a goal against Betis last week. But above all, Barça will need to watch

Lucas Ocampos.

The Argentine forward has impressed beyond expectation in his first season in LaLiga. Just last week he opened the scoring against Betis and then assisted Fernando for the second with an audacious flicked assist.

The overall record between these sides is historically weighted in Barcelona’s favour, especially at the Camp Nou, where Sevilla haven’t won since 2010. But in recent years at the Ramon SanchezPizjuan, it’s been a different story. Sevilla vs Barcelona is an unpredictable fixture, with three Barça wins, two Sevilla wins and two draws in their past seven meetings.

This won’t be an easy game for Barçelona, but Sevilla aren’t favourites either.

As with most things in toplevel football, it’ll likely come down to whoever can make that tiny bit of difference on the night.

Premier League returns with burning social issues Anthony Nlebem

A

fter 100 days on hold, the first act of the Premier League’s “Project Restart” in front of a huge global audience saw players, coaches and referees make a stand against racial injustice by taking a knee.

The powerful image of all the Aston Villa and Sheffield United players as well as match officials peacefully protesting was mirrored at the Manchester City v Arsenal match later on Wednesday.

“It was a massive step for the Premier League to allow something like that to happen,” said City’s Raheem Sterling, who has become a figurehead in the fight against racism.

“It shows we’re going in the right direction.”

Demonstrators have been kneeling in streets across the globe to protest against racism after the death of George Floyd in US police custody last month. Player power was behind the Premier League’s move to put “Black Lives Matter” on the back of shirts for the first 12 games.

“To give them that much power is a line in the sand for the Premier League about where they are going and on what side of history they want to stand,” said former Arsenal and England striker Ian Wright, who was racially abused online last month.

Sterling has used his profile as one of the top players in the English top-flight to encourage young black footballers to speak out.

https://www.facebook.com/businessdayng

After suffering alleged racial abuse in a match against Chelsea in December 2018, Sterling challenged the media for the way in which they portrayed black players compared with their white counterparts.

Footballers are not just using their enormous social media followings in the fight against racism.

Manchester United’s Marcus Rashford this week forced a government U-turn within two days of launching a campaign to ensure children who receive free school meals are

fed throughout the summer holidays.

“It’s becoming more normal that people speak out on topics that they believe in and I think it’s just positive for the future,” said the 22-year-old forward. “People understand they have a voice and the way we channel it and use it is important.”

Rashford has also spoken of the impact Sterling has had on him. “The first important factor I saw in that was Raheem when he went through his situation being racially abused and how he stood up to that,” said Rashford.

“I think that was the turning point for a lot of people.

Sometimes it takes that person to do what Raheem did. It’s definitely changed the view on @Businessdayng

how to approach situations for individuals in the sport.”

Former Liverpool captain Jamie Carragher says such acts give the lie to the stereotype of the current crop of players as pampered individuals, arguing they are instead “enlightened and pioneering”.

“Today’s players use their voice to push for social change, which means putting themselves on a pedestal where they know they will be targeted, or told they should ‘stick to football’,” he said.

Sterling scored the first goal of the Premier League’s comeback from the coronavirus lockdown as City swept aside 10-man Arsenal 3-0.

The Gunners felt the impact of a short window to prepare after a three-month lay-off losing two players to injuries inside the first 20 minutes.

But on a night of new normals, with players adjusting to empty stands and strict hygiene protocols including the cleaning of balls, goalposts and dressing rooms, controversy over the use of technology remained.

Sheffield United were denied victory when goal-line technology failed to spot that Villa goalkeeper Orjan Nyland had clearly carried the ball over the line.

Technology provider Hawk-Eye made a public apology, blaming an unusual combination of players and the goal-post blocking their cameras.

“The goalkeeper was in the Holte End and eight rows back,” said Sheffield United manager Chris Wilder. “I don’t know whether to laugh or cry.”

Women in Business A mara is a problem-solver, advocate, PhD holder, triathlon competitor, daughter of activists and defender of the public with a passion for public policy.

Never one to settle for the status quo, Amara believes in thinking outside the box, challenging systems, and building new ones that reflect values that put the public interest first.

She got her start as a journalist, desiring to capture the human experience through stories. In addition to degrees in journalism and political science, she earned a Masters degree in education, a Law degree where she focused on international and environmental law, and a PhD in Education Policy.

Enyia has always sought to translate complex public policy to a form that is easily understood and used by the public to arm people with the information they need to make the best decisions for their lives. She consults with education organisations and community groups advocating on issues of education equity and works with groups to design community-centered education plans. She created “Thanks for Paying Your Taxes”, an animated series that simplifies public finance topics to help residents understand how their tax dollars are being used. She conducts annual in-depth budget analyses of the City of Chicago budgets and hosts town halls and workshops in communities across Chicago to help residents and community groups understand the numbers so they can advocate for their own interests.

She founded the Institute for Cooperative Economics and Economic Innovation, a social lab whose primary purpose is to educate, assist, and advocate for the expansion of cooperative economic models and other innovative economic development concepts that would diversify Chicago’s

economic eco-system such as workerowned cooperatives, housing cooperatives, community land trusts, sharing economy platforms, and financial institutions and products that support these enterprises.

She co-authored the book “Chicago Isn’t Broke: Funding the City We Deserve” which proposes fiscally responsible revenuegenerating proposals for the City as well as ways to eliminate corruption and waste in city government. She is a staunch advocate for transparency in city government and equity as a matter of policy.

Amara’s goal is to help communities, especially challenged communities to unlock their civic imagination so they are empowered to create the solutions that address the city’s most pressing issues. She has worked in city government, managed a municipality, run non-profits, and worked at the grassroots level where she has always served as a bridge-builder and advocate.

Enyia proudly calls the West Side of Chicago home. When she’s not wandering through Chicago’s neighborhoods or writing, she’s either on her bike, in the pool, or learning a new language.

On the police killing of 16 year old Laquan McDonald, she says “Gray wisps of smoke emanating from dark concrete. That’s what I remember from the sliver of video of the police killing of 16-year-old Laquan McDonald. I couldn’t watch the actual shooting, my familiarity with Black death wouldn’t allow it.” She said but, she opened her eyes just as those thin wisps began to dissipate in the cool of the night air; wisps from gunshots, 16 of them, emptied into the body of a youth “failed by almost all of our societal systems. He lost his life at the hands of a state-sanctioned actor who couldn’t care less. Defund the police.” She states.

When she says “Defund the Police”, she

Njideka Akunyili Crosby Visual artist, painting ‘Bush Babies’ sold for $3.4m at Sotheby’s New York

N

jideka Akunyili Crosby is a Nigerian-born visual artist working in Los Angeles, California. Akunyili Crosby’s art negotiates the cultural terrain between her adopted home in America and her native Nigeria, creating

collage and photo transfer-based paintings that expose the challenges of occupying these two worlds”. In 2017, Akunyili Crosby was awarded the prestigious Genius Grant from the John D. and Catherine T. MacArthur Foundation.

BUSINESS DAY Friday 19 June 2020 www.businessday.ng

By Kemi Ajumobi

AMARA ENYIA Founder, Institute for Cooperative Economics and Economic Innovation

means “it is not solely a declaration of what we don’t want (more police spending). It represents our ability to imagine higher and better uses of those resources in ways that build stronger, more resilient individuals and communities, such as investing in things like education, public health, hous-

ing, and equitable economic growth opportunities”. Says Amara.

For her, “There is no reason that an institution that obtains the lion’s share of our public dollars could fail so miserably at the very task it is charged with carrying out ‘To serve and protect’. “ Says Enyia.

Njideka Akunyili was born and raised in Enugu, Nigeria. She is of Igbo descent. One of six siblings. Akunyili Crosby’s father was a surgeon and her mother was a professor of pharmacology at the University of Nigeria.

In 1999, at the age of 16, she left home with her sister, Ijeoma, and moved to the United States. She spent a gap year studying for her SAT’s and taking American history classes before returning to Nigeria to serve a year of National Service. After she completed her service, she returned to the United States to study in Philadelphia. She took her first oil painting class at the Community College of Philadelphia where her teacher Jeff Reed encouraged her to apply to Swarthmore College. She graduated Swarthmore College in 2004, where she studied art and biology as a Mellon Mays Undergraduate Fellow.

After graduating from Swarthmore in 2004, she studied at the Pennsylvania Academy of Fine Arts. This is where she earned a postbaccalaureate certificate in 2006. She later attended the Yale University School of Art, where she earned a Master of Fine Arts degree.

She is married to Justin Crosby, who is also an artist. Their son, Jideora, was born in 2016. She has formed friendships and traded work with other artists such as Wangechi Mutu and Kehinde Wiley.

After graduating from Yale in 2011, Akunyili Crosby was selected as artist-inresidence at the highly regarded Studio Museum in Harlem, known for promoting and supporting emerging African artists.

During this residency, she met her mentor, New-York based artist, Wangechi Mutu. She spent her year of residence experimenting with drawing, figure painting, studying contemporary art, postcolonial history and diasporic studies.

In 2015, Jamillah James, a former Studio Museum in Harlem curator and at the time, assistant curator at the Hammer Museum in Los Angeles, organised Akunyili Crosby’s first solo exhibition at the Hammer Museum. That same year, James organised another exhibition of Akunyili Crosby’s work at Art and Practice in Los Angeles.

In 2016, Akunyili Crosby was named Financial Times Woman of the Year. That same year, a solo exhibition of Akunyili Crosby’s work was held at the Norton Museum of Art in West Palm Beach, Florida. In 2017, Akunyili Crosby won the MacArthur Fellowship Genius grant.

In 2018, Akunyili Crosby designed the mural that wrapped the Museum of Contemporary Art, Grand Avenue, Los Angeles.

The mural features her signature style of combining painting with collage, printmaking, and drawing to create intricate, layered scenes. She was the second artist to create a mural for the site under a new initiative by the museum.

By 2016, demand for Akunyili Crosby’s work, which she produces slowly, far outweighed supply, prompting her prices to soar at auction. She became one of the artists featured in Nathaniel Kahn’s 2018 documentary; The Price of Everything where she discusses her career and attitude to her art market. It culminated with her painting Drown being sold at Sotheby’s contemporary art auction in November 2016 for $900,000. Her first paining to come to market was ‘Untitled’ which sold for $93,000 in September 2016 at Sotheby’s New York.

In May 2018, Akunyili Crosby set a new auction record with the sale of her painting ‘Bush Babies’ for nearly $3.4 million at Sotheby’s New York. Currently, in 2020, her work is being sold from multiple auction houses.

For sponsorship and advert placement contact: kemi@businessdayonline.com Published by BusinessDAY Media Ltd., The Brook, 6 Point Road, GRA, Apapa, Lagos. Advert Hotline: 08033225506. Subscriptions 01-2950687, 07045792677. Newsroom: 08169609331 Editor: Patrick Atuanya. All correspondence to BusinessDAY Media Ltd., Box 1002, Festac Lagos. ISSN 1595 - 8590.