BusinessDay 19 Oct 2020 by BusinessDay

businessday market monitor FMDQ Close Benchmark NTB* & CP*

Bitcoin

NSE

Everdon Bureau De Change

Foreign Reserve $35.7bn

Biggest Gainer Total N101

Biggest Loser

GBP-$:1.29 YUANY - 56.89

Commodities

Eterna

10. 00 pc N5. 29

Cross Rates

-7.37 pc

28,659. 49

Cocoa US$ 2361.00

Gold $1899.29

news you can trust ** monday 19 october 2020 I vol. 19, no 674

Crude Oil $42.93

N300

Buy

Sell

I&E FX Window CBN Official Rate as at October 15, 2020

ntb

www.

Dangote Cement plc

Axxela Nsp-spv Funding 1 (Natural Gas) PowerCorp plc plc

385.83

0.00

-0.35

0.00

-1.37

379.00

1.09

3.69

5.24

6.69

7.53

7.40

$-N 450.00 466.00 1m £-N 600.00 616.00 Currency Futures 28-Oct-20 388.88 €-N 540.00 554.00 ($/N)

FGN

MTN Nigeria plc CP

Spot ($/N) 29-Apr-21 5-Mar-21 23-Jul-30 30-Apr-25 20-May-27 27-Feb-34

Market

₦5,324,998.56 -0.38

Foreign Exchange

Benchmark Sovereign & Corporate Bonds

3m 2m 25-nov-20 30-Dec-20 391.71 394.55

6m 12m 31-Mar-21 29-Sept-21 403.06

420.09

60m 36m 27-Sept-23 24- Sept-25 497.46

589.09

*NTB - Nigerian Treasury Bills; *CP - Commercial Paper

Rising food cost, border closure push up inflation, intensify anger Favour Olarewaju & Mercy Ayodele

igeria recorded its highest inflation in nearly three years in September after food prices quickened on the back of the country’s land border closure and dollar squeeze. Headline inflation hit 13.7 percent in September 2020 from 13.2 percent in August, the National Bureau of Statistics (NBS) reported Thursday. Food cost rose by 16.7 percent in September 2020 compared to a year ago, the highest this year. “The decision by the Continues on page 30

How poor funding leads to rot, corruption in Nigeria Police ... Ranked: Salary of Nigeria Police compared with peers DIPO OLADEHINDE & OLUWAFADEKEMI AREO

he already-sullied reputation of the Nig e r i a Po l i c e Force (NPF) may never end unless urgent measures are taken to address the poor take-home pay and living conditions of police personnel.

#EndSARS protesters continue at Lekki Tollgate, Lagos, yesterday, pledging to continue until their demands are met. Pic by Pius Okeosisi

Continues on page 30

Inside

Worsening economic indices trouble stakeholders P. 2 Hope PSBank announces board appointments P. 31

Monday 19 October 2020

BUSINESS DAY

news Worsening economic indices trouble stakeholders … current protest beyond #EndSARS, signals frustration Daniel Obi

he thought of Nigeria entering another recession shortly after a recent one is truly freighting to say the least. But, considering the worsening picture of the economy amid many negative indices, exacerbated by Covid-19 pandemic, Nigeria is obviously near economic collapse, a sad reality that worries the populace, especially many economic stakeholders. Again, the apprehension is heightened by the very dismal rankings of the most populous West African nation in many economic indices and other global standards used in measuring development, particularly Human Development Index (HDI). From high level of insecurity, huge infrastructure deficit, struggling foreign direct investment (FDI) inflows and to poor GDP growth at 2.7 percent against population growth at 3.5 percent, high external debt profile of over $27 billion, 27.1 percent unemployment rate to inflation, which stands at over 13 percent, among others, the odds are against Nigeria. Moreover, over 93 million Nigerians are not connected to electricity, while the country holds the record for extreme poor people in the world, according to the World Poverty Clock report published in 2018. The report further revealed that over 86.9 million Nigerians live in extreme poverty; a figure that represents about

48 percent of the country’s estimated 200 million population. The most frightening fact about the report is that six Nigerians enter poverty bracket every minute, a figure that has increased since two years the report was released. As well, with 15 million children out of school, Nigeria has the highest number of out-of-school children globally, while infant and under 5 years mortality rate, according statistics, is high in Nigeria. Again, insecurity has stripped the country the little respect it has in the international community. Nigeria is regarded as the third most terrorised country in the world after Afganistan and Iraq and, according to Peter Obi, former governor of Anambra State, who spoke at University of Nigeria Nsukka (UNN) 60 years lecture recently, saying it is speculated that Nigeria would soon overtake the two countries in terrorism. Also, inequality is high in Nigeria as less than 1 percent of the population controls over 90 percent of the nation’s wealth. “Inequality impacts negatively on health, education and the economy, but government is incapable of fighting it,” Peter Obi said. These statistics are enough to cause anxiety considering that Nigeria had fallen deeply from its annual GDP growth rate of 25 percent in 1970s with FDI inflows now accounting for 0.5 percent of the GDP, and food exports, which accounted for 31.34 percent in 1970s, have crashed to 1.95 percent in 2018.

Motorists running gas-fired vehicles in Nigeria save over 100% on fuel … absence of refuelling stations, cost of conversion remain STEPHEN ONYEKWELU

rivate cars and commercial bus owners who have converted their engines to use both petrol and natural gas say the economic benefits are large but refuelling stations and the cost of conversion have remained major hurdles. A two-cylinder conversion kit costs N400,000 to install and a single-cylinder kit costs N250,000. Depending on the weight of the vehicle, a single cylinder of 14scm takes a commercial bus from Ibafo, Ogun State to Ibadan. But the drivers buy petrol on their way back because there are no refuelling stations along the way. NIPCO plc, a major player

in Nigeria’s natural gas vehicles (NGVs) space, is currently constructing a pipeline from Ibafo-Sagamu-Ibadan to provide CNG services for vehicles. Nonetheless, the savings after the conversion are significant. Tunji Adeniji, former president, Independent Petroleum Marketers Association of Nigeria (IPMAN), recently converted his Toyota Hilux truck to use CNG (two cylinders) at the NIPCO gas station at Ibafo, which also houses a conversion workshop. Tunji says the two cylinders take him as far as Lokoja from Lagos where there is a CNG refuelling station. It cost N7,000 to fuel at Ibafo and another N7,000 at Lokoja for refuel to get to Abuja. This is a trip that costs N25,000 on petrol in the same vehicle to

Lokoja and another N25,000 from there to Abuja. “The savings are massive,” he said. Additionally, it costs an average of N2,500 for petrol to travel to Warri and back from Benin City, a journey of 193 kilometres. On compressed natural gas, the same journey costs on average N1,300, according to Emmanuel Uzoefune, an operator of commercial buses in Benin City. A litre of petrol costs on average N160, while a standard cubic metre (scm) of compressed natural gas (CNG) costs N90. However, without CNG refuelling stations and high conversion costs, the Federal Government’s drive to deepen gas utilisation for transportation through its autogas programme is likely to suffer significant setbacks. Already,

it was initially planned for a nation-wide rollout of the programme to start in October 2020. This has been moved to December for the Nigerian National Petroleum Corporation’s (NNPC) mega stations, according to Mele Kyari, group managing director, NNPC. The Ministry of Petroleum Resources counts on these mega stations for the rollout. Under its National Gas Expansion Programme (NGEP), the Federal Government has outlined timelines for a massive rollout of CNG, liquefied petroleum gas (LPG) and liquefied natural gas (LNG) for vehicles. The autogas programme was slated to start by October but people familiar with the matter say not much is happening yet.

L-R: Pat Utomi, founder, Centre for Value in Leadership (CVL)/guest lecturer; Anafiu Elegushi, commissioner of home affairs, Lagos State; Alfred Adewale Martins, Archbishop of the Metropolitan See of Lagos, and Peter Abatan, reverend father, at the Anthony Cardinal Okogie Foundation annual lecture in Lagos.

Paper industry booms, but Nigeria not in the party Insurers close wings on capital shortfall to escape NAICOM restriction on businesses to industry analysts, 2021, with first phase to end nies operating currently with ... but ‘kenaf’ seen as a game-changer Modestus Anaesoronye cording N5 billion will increase to N9 is to avoid being restricted December 31, 2020. Odinaka Anudu

razil, an emerging economy with 209.5 m i l l i o n p e o p l e, made $3.5 billion from selling cellulose pulp to China in 2018. In the same year, the South American country earned $10.7 billion from export of forestry products to the rest of the world. These paper raw materials provide foreign exchange for the country and boost foreign direct investments into the country. The industry has secured private equity deals as well as mergers and acquisitions in recent times. Klabin, Brazil’s largest producer and exporter of packaging paper, secured a $280 million for Puma Project II from the International Finance Corporation (IFC). Klingele Paper & Packaging Group, one of the leading independent manufacturers of containerboard and cor-

rugated board packaging, recently signed an agreement with Klabin to purchase the kraftliner mill in Nova Campina in the state of São Paolo. Away from Brazil, Finland has also managed its paper and pulp industry superbly, and now has 54 paper and pulp mills valued at €20.7 billion. The country exported forestry products valued at €12.5 billion, according to the Natural Resources Institute Finland. “It is amazing that 20 percent of Finland’s exports are paper and pulp. This is a country with 5.2 million people. If they can do it, Nigeria can as well,” Olufunso Somorin, regional principal officer, African Development Bank, said at a webinar organised by the Lagos Chamber of Commerce and Industry (LCCI) tagged ‘Revitalising the Paper Industry: Challenges and Op-

Continues on page 30 www.businessday.ng

arely 10 weeks to December 2020 deadline given to insurance companies to comply with first phase of the industry recapitalisation requirements, companies are tightening their belts to avoid sanctions that may follow non-compliance. Some of the Insurance companies yet to meet the 50 percent paid-up capital requirement set by the regulator in the first phase are increasing their efforts to conclude with their capital raising plans, particularly those embarking on private placements. BusinessDay investigation alsoshowsthatsomeothersthat may not likely recapitalise on their own are in deep discussion with merger prospect partners, with due diligence activities going on, which must be agreed on with the National Insurance Commission (NAICOM) before end of October 2020. The last-minute rush, ac-

from participating in certain classes of business, as 2021 insurance renewals are gearing for a start. From October/November each year, insurance companies across the globe begin firming up renewals for new business year, lobbing brokers on new accounts and consolidating on existing business. NAICOM in its circular to insurance and reinsurance companies issued in March 2020 titled, ‘Segmentation of Minimum Paid up Share Capital Requirement for Insurance Companies in Nigeria,’ noted that Insurance Companies that failed to satisfy the required minimum paid-up capital by the end of December 31, 2020, might be restricted on the scope of businesses they would transact. The Commission had on June 3, 2020, extended compliance deadline of the ongoing recapitalisation exercise in the industry to September 30,

https://www.facebook.com/businessdayng

NAICOM expects insurance companies to recapitalise 50 percent of the paid-up share capital by end of 2020, and reinsurance companies 60 percent, while the remaining 50 percent and 40 percent, respectively, will be completed by end of September 2021. According to the Commission, any insurance and reinsurance company that fails to meet the first phase of the capitalisation by end of 2020 may be restricted on the scope of business they will transact. The segmentation shows life companies operating currently with N2 billion will increase to N4 billion by December 31, 2020, as first phase and to N8 billion by September 30, 2021. General business companies operating currently with N3 billion will increase to N5 billion by December 31, 2020, as first phase and to N10 billion by September 30, 2021; Composite business compa@Businessdayng

billion by December 31, 2020, as first phase and to N18 billion by September 30, 2021, while Reinsurance companies operating currently with N10 billion will increase to N12 billion by December 31, 2020, as first phase and to N20 billion by September 30, 2021. Sunday Thomas, commissioner for Insurance/CEO, NAICOM, had said during the 2020 Economic Outlook held in Lagos that the Commission would avoid as much as possible going into liquidation of failed companies in the ongoing insurance industry recapitalisation. Thomas said then that rather than liquidating those that fail to recapitalise, the NAICOM was considering a forced merger that would make them become one big company. NAICOM may apply regulatory forbearance to ensure it does not go through that rout at the end of the recapitalisation exercise, Thomas said.

Monday 19 October 2020

BUSINESS DAY

www.businessday.ng

https://www.facebook.com/businessdayng

@Businessdayng

Monday 19 October 2020

BUSINESS DAY

www.businessday.ng

https://www.facebook.com/businessdayng

@Businessdayng

Monday 19 October 2020

BUSINESS DAY

www.businessday.ng

https://www.facebook.com/businessdayng

@Businessdayng

Monday 19 October 2020

BUSINESS DAY

www.businessday.ng

https://www.facebook.com/businessdayng

@Businessdayng

Monday 19 October 2020

BUSINESS DAY

www.businessday.ng

https://www.facebook.com/businessdayng

@Businessdayng

Monday 19 October 2020

BUSINESS DAY

NEWS

Sylva pledges FG’s support for indigenous oil, gas companies HARRISON EDEH

inister of state petroleum resources, Timipre Sylva, has pledged Federal Government’s support for indigenous oil and gas companies in Nigeria. Speaking during a tour of facilities of Lee Engineering and Construction Company’s fabrication plant in Warri, Delta State, Sylva said it was through government’s patronage and support that the Local Content Act can be fully realised. Nigeria is determined to raise the bar in promoting local content in the oil and gas sector, he said, stressing that by 2027 government plans to increase local content in the sector from its present 10% in 2020 to about 40%. It is only through such deliberate policies that Nigeria can attain full industrialisation and continue to create jobs for Nigerians, he said. While commending the giant strides being made by Lee Engineering and

Construction Company in promoting local content in the oil and gas sector, he said the government would support the company to achieve greater heights. “Great effort. This is the kind of story Nigeria requires. Inspiring lives that will push the aspirations and ambitions of the youths to great heights. Lee started from humble beginning and have grown a business to levels that we can only marvel at. As government, this is the essence local content is made of, and we will stand shoulder to shoulder with Lee Engineering in their desire and quest to achieve enviable heights,” he said of the company. In a welcome address during the tour of the facility, Executive Chairman of the company Leemon Ikpea urged the Federal Government to grant import duty waiver and tax relief for indigenous fabrication companies such as Lee Engineering to enable them continue to support the government in job creation and boosting the economy.

www.businessday.ng

Lagos seeks private investors’ partnership to boost food production JOSHUA BASSEY

agos State governor, Babajide Sanwo-Olu has urged private investors in the agriculture landscape to join hands with the government to boost food production and security. Sanwo-Olu stated this at the occasion of Y2020 World Food Day Celebration at the weekend, assuring of his administration’s commitment towards the attainment of state’s food security objective. The governor, who was represented by the state’s acting commissioner for agriculture, Abisola Olusanya noted that the government has been encouraging increased investment and the empowerment of women and youths in the agricultural sector in order to increase food production, create employment opportunities, alleviate poverty and boost income generation. “We are committed to ensuring steady and sustainable increase in food production through the various policies being implemented as well as programmes been driven by partnerships and collaborations such as the National FADAMA Development Project and Agro- Processing, Productivity, Enhancing and Liveli-

hood Improvement Support (APPEALS). “I am glad to note that these policies and programmes are yielding positive outcomes through positive impact on the livelihood of beneficiaries especially the rural dwellers as well as the empowerment of women and youths along the agricultural value chains,” Sanwo-Olu said. He pointed out that human survival was hinged largely on the agricultural sector as it is the source of food supply which was needed for the effective functioning of human body system. “This event we are celebrating highlights our administration’s strategic support and assistance both in addressing emerging challenges and in promoting far reaching interventions to guarantee food security in Lagos state. “One of such support is the Eko City Farmers’ Market aimed at enhancing the agricultural supply value chains by connecting all the agriculture and agricultural based products with their markets in a well organised, high quality market environment to meet the citizens’ ever increasing demand for fresh farm produce,” the governor added.

https://www.facebook.com/businessdayng

#EndSARS: Investigative panel to begin sitting in Lagos DESMOND OKON

s the #EndSARS protest continues, the Judicial Panel of Inquiry and Restitution set up by the Lagos State government to investigate cases of human rights violations by the disbanded Special Anti-Robbery Squad (SARS) will expectedly begin sitting in Lagos this week. Governor Babajide SanwoOlu at the weekend received in audience the chairman of the panel, Justice Doris Okuwobi (rtd), at the State House, Marina. Okuwobi’s visit to the governor was ahead of the expected swearing in of the panel’s members today, after which they will begin sitting at LASWA Building on Falomo Road in Ikoyi.

@Businessdayng

Governor Sanwo-Olu said the meeting with panel’s chairman was necessary to intimate them on new developments and expectations of the government. The governor disclosed that the membership slot reserved for the youth had been increased to two, saying the move was to ensure young people, who are mostly the victims of SARS brutality, had strong voice and contributions in the panel’s activities. Sanwo-Olu said: “The panel will commence its sitting next Monday (toda) after the official swearing in of its members in Alausa. We expect members of the public who have complaints against SARS operatives will approach the panel and bring forward their claims.

BUSINESS DAY

Monday 19 October 2020

COMMENT

comment is free

Send 800word comments to comment@businessday.ng

Let’s be clear: Nigeria’s problems are structural not ‘artificially contrived’ GLOBAL PERSPECTIVES

OLU FASAN

he first step in solving any problem is to accurately diagnose it. But are we correctly diagnosing the problems of Nigeria? For if not, we can’t find the right solutions to them. Take critical the question of national unity, without which there can be no progress. Everyone believes there is no genuine unity in Nigeria. In fact, it’s because unity or oneness is non-existent or fragile in Nigeria that the federal government adopted TOGETHER as the theme for Nigeria’s 60th independence anniversary. Surely, if Nigerians were united, with a sense of shared identity and common purpose, President Buhari would not devote his Independence Day speech to the recurring theme of “togetherness”, urging Nigerians to “work TOGETHER”, stressing that “if we pursue our aspirations TOGETHER we would be able to achieve whatever we desire.” The word TOGETHER appeared several times in speech in capital letters. So, there is a problem of disunity. The next question is: why? For only when we know or understand the causes of the problem can we devise the right solution to it. But who should lead the task of accurately diagnosing this national problem and who should devise the right solution to it? Of course, it is the president of this country. As President Buhari himself said in his Independence Day speech, Nigerians have “entrusted” him with their “hopes and aspirations for a better and greater Nigeria.” So, he has a duty to live up to that “trust” and fulfil the people’s “hopes and aspirations.” He must do this by accurately diagnosing Nigeria’s problem of disunity and proffering the

appropriate solution to it. But, unfortunately, President Buhari misdiagnosed the problem of disunity in Nigeria and, inevitably, came up with a wrong solution. President Buhari believe the problems of disunity in Nigeria have no structural causes; they are invented and magnified by Nigerians. In his Independence Day speech, he said: “An underlying cause of most of the problems we have faced as a nation is our consistent harping on artificially contrived fault-lines that we have harboured and allowed unnecessarily to fester.” Part of the “artificially contrived faultlines”, according to President Buhari, is “the stereotype of thinking of ourselves as coming from one part of the country before seeing ourselves as Nigerians.” This is disingenuous, of course. By reducing the acute problem of disunity in Nigeria to mere “artificially contrived fault-lines” rather than accepting that there are structural weaknesses in the governance of this country, President Buhari is self-servingly misdiagnosing the problem and, therefore, can never come up with the right solution to the problem. Of course, given his opposition to restructuring, President Buhari could not accept there are structural weakness in the governance of Nigeria, for if he did his opposition would become unsustainable. Yet, at the heart of this country’s problems are its structural weaknesses, which induce or incentivise centrifugal forces. In his book, “Political Restructuring in Europe”, Professor Chris Brown of the London School of Economics argues that in multinational states, politics “at best takes the form of group bargaining and compromise and at worst degenerate into a struggle for domination”. In Nigeria, politics takes the worst form; it is a struggle for or against domination, which drives inter-ethnic tensions, and the so-called stereotype of Nigerians thinking of coming from their ethnic group before seeing themselves as Nigerians. But the problem is structural. As Professor Chinua Achebe said in his book, THERE WAS A COUNTRY, “The structure of the country was such that there was an inbuilt power struggle among the ethnic groups”, adding that “the easiest and simplest way to retain power, even in a limited area, was to appeal to tribal

sentiments.” President Buhari may sound sanctimonious about this, but can he say, truthfully, that he did not appeal to tribal sentiment in seeking to become the president of Nigeria? Where precisely did most of his votes come from in the 2015 and 2019 presidential elections? Can he say, again truthfully, that, in the herder/farmer conflicts, he is not more sympathetic to Fulani herdsmen, who are from his ethnic group, than to farmers, who are not? Why is it that virtually everyone in his inner circle is from his ethnic group? Why is it that virtually all the security chiefs in Nigeria are from his ethnic group? The truth is, as Achebe said, the structure of this country is such that there is an inherent power struggle among the ethnic groups. Rather than bargaining and compromise, there is struggle for or against domination. Those in power want to stay in power! Think of it, where there is fairness, the next president should be of Igbo extraction, given that, since 1999, no one from the South East has governed Nigeria. But, thanks to the struggle for domination, the Yoruba, which, by 2023, would have produced president for eight years and vice president for another eight years, still want to produce president in 2023. Indeed, the North wants to stay in power. Of course, the centralisation of power, coupled with the winner-takes-all politics, means that any ethnic group not in power could be marginalised. If these are not structural problems, so what are they? Of course, President Buhari and his advisers know that these are not artificially contrived fault-lines. They are structural problems inherent in the multi-ethnic nature of Nigeria and require a proper structural solution. Nigeria’s independence leaders and the British colonialists recognised the problem and devised a solution that best suited the country. I urge President Buhari to read the transcript of the debate on the “Nigeria Independence Bill” in the UK House of Commons on July 15, 1960. He will find that the British did not see Nigeria’s problems as “artificially contrived.” Rather, they saw the problems as structural, caused by Nigeria’s multi-ethnicity; hence they favoured a structural solution. While opening the debate, the UK’s Secretary of State for the Colonies, Iain Macleod,

‘

The truth is, as Achebe said, the structure of this country is such that there is an inherent power struggle among the ethnic groups. Rather than bargaining and compromise, there is struggle for or against domination

said that, given that Nigeria is “extraordinarily” diverse, “it is not the least surprising that the political development it has chosen is that of a Federation in three regions, with each region self-governing in its own concerns.” Another Member of Parliament, Arthur Creech Jones, described Nigeria’s independence constitution as being “of great delicacy where various interests have had to be reconciled.” Then, Fenner Brockway, another MP, said: “I welcome the fact that Nigeria is a Federation”, adding: “It is not one nation but many”! In an editorial earlier this week, the London Times, calling for more regional devolution in the UK, said: “The idea that the United Kingdom is one nation and not four has always been a cultural fiction rather than a political reality.” Now, if anyone said that about Nigeria, he would be called “unpatriotic.” Yet, the truth is, as Mr Brockway said, Nigeria “is not one nation but many”! But what’s the solution? Well, as the London Times said, “devolving power to regional authorities has been the correct prescription to drive up growth and productivity.” And that’s the right model for this country. Nigeria needs regional powerhouses, not vassal states that are heavily dependent on financial grants from central government. Successful multi-ethnic countries, such as Canada, have a regional system, a “competitive regionalism” in which regions are self-governing. But, as one Yoruba leader said, “overcentralisation brings the best down to the level of the rest instead of taking the rest up to the level of the best.” Such overcentralisation, coupled with the winner-takes-all and hegemonic nature of Nigerian politics, undermines economic efficiency and engenders political and ethnic tensions in Nigeria. So, Mr President, the problem of disunity in Nigeria is not “artificially contrived fault-lines”, it’s caused by real structural weaknesses. And the TOGETHER slogan won’t tackle it. The solution lies in restructuring Nigeria! Dr. Fasan, a London-based lawyer and political economist, is a Visiting Fellow at the London School of Economics. e-mail: o.fasan@lse.ac.uk, twitter account: @olu_fasan

The Nigerian Code of Corporate Governance: Principle 28 – Disclosures

“

ull and comprehensive disclosure of all matters material to investors and stakeholders, and of matters set out in this Code, ensures proper monitoring of its implementation which engenders good corporate governance practice.” Corporate Disclosures constitute an important aspect of Corporate Governance. According to Healy and Palepu, the main aim of corporate disclosures is “to communicate firm performance and governance to outside investors”. This communication is not only required by shareholders and investors to evaluate their investments, but also for the benefit of other stakeholders (including prospective investors and those), particularly information relating to corporate social and environmental policies. With increased scrutiny and regulatory oversight on enterprises, it has become imperative that companies communicate more effectively with stakeholders. Corporate disclosures encourage efficient management of enterprises and better-run companies, in turn, contribute to greater economic efficiency and a greater capacity to generate wealth. This is important because it is not only the investor that benefits ultimately the whole society has something to gain. Disclosure can be in the form of financial reporting which essentially entails financial statements that are in accordance with defined accounting standards as well as non-financial reporting, comprising governance, environmental, social and sustainability reporting. The Nigerian Code of Corporate Governance (NCCG) recommends that companies issue a corporate governance report that provides clear information on the company’s governance structures, policies and practices as well as environmental and social risks and opportunities in their Annual

Report. Governance practices affect company performance and are an important element in risk evaluation both for individual companies and for markets. Reporting is considered as the most effective tool to harness the benefits of good corporate governance practices. Reporting puts corporate information in the hands of the public and prospective investors make investment decisions based on this information. The market functions best when there is access to sufficient information to properly assess good governance, which is a recipe for sustainable performance. The Code recommends that the Board should use its best judgment to disclose any material matter even though not specifically required by the Code if in the opinion of the Board such matter is capable of affecting the present or anticipated financial condition of the Company or its status as a going concern. The onus of proof of such possible negative effect is on the Board. This provision of the Code envisages information within the exclusive knowledge of the Board which could impact the performance of the Company and the market. The Code has placed the responsibility to disclose such information on the Board. The Code recommends that the highlights of sustainability policies and programmes covering social issues such as corruption, community service, including environmental protection, serious diseases and matters of general environmental, social and governance (ESG) initiatives should be included in the corporate governance report to be disclosed in the annual report. Corporate Social Responsibility is becoming more important to investors because they are concerned about where and how their money is spent. The Board has the responsibility to ensure the www.businessday.ng

company has insider trading and conflict of interest policies. The Code recommends that the Board should ensure that the specific nature of any related party relationships and transactions conducted during the financial year are disclosed in the corporate governance report. The disclosure of related party transactions gives the public assurance of the transparency of the Board’s activities. The NCCG recommends that where the Board has engaged independent experts to evaluate and report on the extent of the Company’s application of this Code, the name of the external consultant and a summary of the evaluation report should be included in the Company’s annual report. The inclusion of the name of the independent evaluation consultant and the summary report reposes public confidence and provides additional credibility to the information disclosed in the annual report. It is global best practice to have a diverse board to ensure fresh perspectives and ideas to achieve the Company’s objectives. The NCCG recommends that the Board should disclose in the annual report its plan for achieving gender diversity in accordance with its diversity policy, the progress towards achieving the plan and the proportion of women employees in the whole organization, including women in executive management positions and women on the Board. The Code recommends a disclosure of all the fines and penalties imposed on the Company by regulators at the end of the reporting period. Shareholders and other stakeholders can then track the improvement or otherwise in compliance over the years. Investors are more inclined to trust companies who have a good compliance record. However, a major area of concern with respect to mandatory disclosures relates to sensitive informa-

https://www.facebook.com/businessdayng

BISI ADEYEMI tion (marketing strategies, research, new product development, market entry, etc.) that could deprive companies of their hard-won competitive advantage. Others include bargaining disadvantage from disclosure to suppliers, customers and employees (employees demand higher wages with improved corporate earnings) as well as frivolous suits. Whilst, disclosure is seen as a good thing in the eyes of investors and other stakeholders, too much disclosure can lead to information overload and can also become a burden to market participants. Furthermore, the disclosures of one company may not be appropriate for another company. Given the variability in company characteristics and circumstances, one size disclosure does not fit all, and the degree of comparability with other companies’ disclosure is not the most appropriate standard by which to judge the quality of disclosure. One way of preventing information overload and assuring that just the right amount of information is made available is to adopt a disclosure management process that allows for the roll-over of past reporting templates. Companies can this way, update relevant information periodically, using a defined template with the adequate balance of mandatory and voluntary disclosures. Adeyemi is the Managing Director, DCSL Corporate Services Limited. Kindly forward comments and reactions to badeyemi@dcsl.com.ng

@Businessdayng

Monday 19 October 2020

BUSINESS DAY

COMMENT

comment is free

Send 800word comments to comment@businessday.ng

Resilience (forging ahead) - Corruption and Nigeria’s uncertain future

BASHORUN J.K RANDLE

either Professor Gambari (an Economist) nor Major-General Monguno (an architect) is a stranger to computer modelling and simulations. At its most basic, we are dealing with algorithms, data, statistics, projections and FALSE NEGATIVES!! Whatever turns up must be able to withstand rigorous interrogation. The essence of computer modelling is to project, for example, the doubling of the budget for security/defence and the impact on other competing demands such as education, health and infrastructure etc. It could turn out that you are wasting resources that would be better spent on critical areas without compromising security provided the funds are spent judiciously with emphasis on the right equipment, training, welfare of troops and public enlightenment. It also affords us an opportunity to check how what we spend on security as a percentage of our GDP (Gross Domestic Product) stacks up against a wide range of other countries – United States of America; Britain; China; India; Russia; Saudi Arabia; France; Germany; Japan; Israel right down to Ghana; South Africa; Kenya; Thailand etc. The share scale of resources diverted from military and security funds/budgets as evidenced by humongous loot recovered from military/security officers who have faced trial as well as embarrassing cases of mutiny by soldiers at the war front on account of allegations of corruption against their commanders (even to the extent of circulating on videos, without disguising their identity, serious complaints) make comparative analysis based on aggregate data a compelling obligation. Both Professor (Ambassador) Ibrahim Gambari and Major-General Babagana

Monguno (Rtd) would benefit immensely from the outstanding seminal work of Professor Louise Mary Richardson (ViceChancellor of the University of Oxford) whose area of specialisation is the study of terrorism. Indeed, Professor Robert Irwin Rotberg of Harvard University can lay just claim to expert knowledge of the Nigerian conundrum as evidenced by his books: “The Corruption Curve” “State Failure and State Weakness In a Time of Terrorism” Governance and Leadership” What we are entitled to expect from Professor Gambari is transformational leadership - the product of those lessons he learnt at King’s College, Lagos and London School of Economics, to wit: A fairer and more equitable society will make Nigeria a better place for everybody. The old boys of King’s College are solidly behind him. We shall address the issues raised by Ambassador Dapo Fafowora in his book: “Lest I Forget: Memoirs of a Nigerian Career Diplomat” and Femi Adesina (Special Adviser, Media and Publicity to the President) “The Slap Next Time” in Part II of the documentary. In the meantime, Cardinal Olubunmi Okogie (ex-St. Gregory’s College and previously the Administrator/Proprietor of the College) has delivered a cardinal salvo in in a statement, titled: “Corruption and Nigeria’s uncertain future”: “Nigeria is a sinking ship being navigated by pirates. There is need to take urgent steps to rescue Nigeria from the hands of brigands. Not to do so would amount to flirting with violence. The current level of corruption is dangerous. The anger of the people may lead to a violent uprising whose consequences we cannot foresee. Let us step back from the road to bloodshed. That is why we hear of huge sums of money getting into wrong hands. What we have is not politics of the common good but politics of selfish interests. And its agents in every government are going scotch free. The constitution we operate provides incentives for corruption, and where there is corruption there will be poverty and insecurity.

Our constitution is just a formula for sharing Nigeria’s wealth placed in the hands of politicians. It provides for so many offices, so many parastatals and ministries, and the bureaucracy it creates is consuming Nigeria’s money. The size of government has depleted Nigeria’s wealth. Politics is the largest industry in Nigeria. It is no longer news that many people go into politics because of the opportunity to enrich themselves at the people’s expense We ought to have utilised the wealth of Nigeria to develop the people. But we have witnessed successive regimes of politicians in military and civilian garbs who enrich themselves by impoverishing the people. The sad consequences confront us: no good roads, no good schools, no good hospitals, no good airports, no electricity, no security, and no comfort. The average Nigerian has nothing to enjoy while members of the political oligarchy are living extravagantly. But for Covid-19, they would have been in Dubai. Fela Anikulapo Kuti once asked: ‘How country go dey make money when country people no dey see money?’ The question is yet to receive an answer. Our country that God gave us is raped and robbed with impunity by those who should be working for the common good. The future of Nigeria is jeopardized in the present by politicians who show symptoms of kleptomania, an irresistible tendency to take what belongs to all of us. Many of our leaders are getting away with daylight robbery and murder. We are deceived into believing that a war is being waged on corruption. But we witness a circus, a shameless show of brigandage in government, where we hear of billions of naira being spent on frivolous projects that are of no advantage to the Nigerian people. We have been told that looted money is being returned. Yet, the government is borrowing. There is a big contradiction here. If looted money is being returned, why does Nigeria have to borrow so much? There is an urgent need to restructure the government in Nigeria. Concrete steps will have to be taken. First, the constitution must change. The current constitution provides a recipe and a licence for theft in government, for poverty of the

‘

Nigeria is a sinking ship being navigated by pirates. There is need to take urgent steps to rescue Nigeria from the hands of brigands. Not to do so would amount to flirting with violence. The current level of corruption is dangerous

J.K. Randle is a former President of the Institute of Chartered Accountants of Nigeria (ICAN) and former Chairman of KPMG Nigeria and Africa Region. He is currently the Chairman, J.K. Randle Professional Services. Email: jkrandleintuk@gmail.com

Make the best of student life financially

tudents are not left out of personal finance lessons and tips. Being a university student is in fact one of the most magical times of life. You’re figuring out who you are while meeting exciting new people. You’re building the foundation that will launch you into the adult career of your dreams. Chances are you’re also constantly broke. Fun, school supplies, personal growth, and cool life experiences often require some amount of money in your pocket. I want to encourage you not to resign yourself to an ordinary student life as you go back to school. Here are some ideas of how we made money as students that you too can try. Buy low, sell high: This is the basic principle of trading. If you’ve got an eye for your peers’ value, figure out how to sell it to them. Temitope Olagbegi will tell you her story of selling clothes and yogurt while she was a student at the University of Lagos. Today, she points to that experience as her Launchpad for a successful entrepreneurial career. Whether it’s clothes, toiletries, perfume oils, or groceries, you just might have what your peers are looking for. It is good to look out for

certain companies who seek student ambassadors to sell their products on campus. Put your writing and editing skills to use: I found an internship during the school year with a magazine. By the holidays, I was being paid per word. I made more money in three months than I’d made all year in some of my other jobs. Yes, I worked like a crazy person, but it was all worth it for the life I was able to enjoy when school was back in session. Digital marketing is power: Did you know that simply being Gen Z makes you more tech savvy than the average human? To you, it’s no big deal creating a website, managing a social media page, or writing a bit of code here and there. To the average human, social media is an enigma, websites are for wizzes, and they will need someone to show them the way. That’s right; you could set up a service in school to help companies connect with the young audience they so desperately seek. Write code; Get paid: It’s simple. If you can write just a bit of code, you’ve set yourself up to make some serious cash during and after school. The gig economy is a thing, and students, more than anyone, are in a prime www.businessday.ng

populace, and for insecurity in the land. Each President and each governor should consider his single term in office to be a penalty kick. A player chosen to take a penalty kick has only one opportunity to put the ball in the net. Nigeria does not need a bicameral legislature of 109 senators and 375 members of the House of Representatives. She can do well with just one federal parliament. The current bicameral legislature is wasteful and should be abolished by the new constitution. The military origin of this constitution shows that it was conceived by people who thought Nigeria’s oil wealth would flow endlessly to the advantage of political officeholders. Now, we know better. The oil is not dry. But it is not being bought. This will have severe consequences on the standard of living of the Nigerian. Post-COVID-19 Nigeria cannot survive on a bicameral legislature.” Not unexpectedly, the old boys of St. Gregory’s College are solidly behind him. Professor Gambari is duty bound to restore trust in the Government. In my own case, my campaign to become the President of St. Gregory’s College Old boys Association is on track. I am entirely in agreement with Mallam Mamman Daura – “Election should be based on merit, not on the school you attended.” In the fierce urgency of now, it is never too late This is not the time to be speechless. Our worst nightmare (in broad daylight!!) is the invitation from the President to join him at a feast (State banquet) but his bodyguards start shooting at us. It was only the timely intervention of Professor (Ambassador) Ibrahim Gambari that came to our rescue. As for our ancestors, they have handed down their wisdom – they always spoke in parables in order to avoid being misquoted.

MONEY BRAIN WITH spot. Whether in your local business community, or online, there are always people and firms needing to write some kind of software. If you’ve even got a few friends, you could get together to offer these services. Even if you don’t write code, you might be the business and marketing mind that organizes the gigs for your coding friends. Make hair: This is especially true if you’re a student in Europe or North America. If you know how to give haircuts, braids, weaves, and the whole menu of black hair, you’re in great shape to make bank! In the US, braiding can be as much as $600. The average black haircut costs $20. You do the math. You could be completely self-sufficient before you know it! But even if you live in a black country, where hair costs aren’t as high, you can still rely on the regularity of your customers to create a delicious income stream. A word of caution concerning your time management: It is such a crucial soft skill that you carry throughout your life and career that it is important to master it from now. As you strive to get better with your profitable skills, ensure that it doesn’t distract you from

https://www.facebook.com/businessdayng

JR KANU your education. Have you crushed student brokenness in some other ways? Please share your story with me! Just email stories@ reach.africa

Kanu holds an MBA from Stanford University, a master’s in Journalism from NYU and a bachelor’s in Engineering from Calvin College. His career has included time at Konga, Amazon, The United Nations, Esquire, CNN, and Black Enterprise magazine. Armed with a strong conviction that you can live a great life no matter how much money you have, JR founded REACH Technologies, www. reach.africa. His company builds software to help young people and companies to manage and grow their money.

@Businessdayng

Dr. Okolo is a Chartered Consultant based in Lagos

Monday 19 October 2020

BUSINESS DAY

COMMENT

comment is free

Send 800word comments to comment@businessday.ng

Nigeria: A live action ‘Lord Of The Flies’ Reenactment

DAVID HUNDEYIN

n January 1966, a group of men around my age decided to take action to wrestle Nigeria away from the oppressive grip of an adversarial political establishment. When the story is told nowadays, it is often omitted that Adewale Ademoyega, Kaduna Nzeogwu and their co-travellers had genuine reasons to be disgruntled. The political establishment was dominated by Ahmadu Bello, who was the closest thing that postindependence Nigeria had to Nasir El-Rufai - a blatant, unhidden, unapologetic ethno-religious bigot with a catalogue of outrageous comments and racist sentiments credibly credited to him. Bello was a grandson of Uthman Dan Fodio, and he made no secret of the fact that he was fighting an extension of Dan Fodio’s Jihad using politics as a tool of warfare. To the idealistic Young Turks, Bello and all that he represented within Nigeria’s system were to be eradicated if Nigeria were to fulfil its potential. Just kill all the bad

guys and Nigeria would be fine. It was so simple! The Lord Of The Flies Whoever has read the masterful piece of political satire by William Golding published in 1954 will immediately see the parallel between the events described in the book and the story of Nigeria from 1966 to date. They share the same initial feeling of euphoria and absolute possibility mixed with raging idealism and a newly discovered sense of agency. They also share the same tragic twist as the euphoria turns into a Malthusian hellscape of bullying, abuse, dictatorship and eventually death. In the case of Ademoyega and his contemporaries, this twist took only 6 months to arrive, with the July 1966 counter-coup leading to Nzeogwu’s brutal execution and the horrific pogroms that precipitated the 3-year Nigerian civil war. The unintended consequence of trying to use youthful actions to dramatically upend a political system overnight was that it replaced said political system with something much worse. In the book, the boys decided that following the instructions of the adults was needless, since there were no adults on the Island. In Nigeria, the boys of ‘66 decided to solve their problems using guns since there was no British colonialist to stop them from doing so. In the book, the boys thus exchanged a system of perceived adult domination for a dictatorship led

by one of them - which turned out to be much worse. In Nigeria, the “boys” got rid of Ahmadu Bello, but then ended up with Yakubu Gowon, Murtala Mohammed, Muhammadu Buhari, Ibrahim Babangida and Sani Abacha. Both groups of boys solved one problem by creating a much worse one. This is a constant recurring factor within youth-led movements - the triumph of hubris and idealism over strategy, pragmatism and common sense. #EndSARS is not quite 1966 but… For the record, I am not only in full support of the End SARS protests, but I also played a role in setting them off in the first place with my review of the Police Act 2020 which became the fuel that met the spark of the Delta incident viral video. In addition, I also spent my own money to purchase a flight ticket to Abuja where I joined the protests and received an eyeful of teargas and a backside full of angry police horsewhips. Both the SARS unit and the wider Nigeria Police Force are horrendously dysfunctional and unfit-forpurpose, no arguments there. The problem however, is that once again the unmistakable smells of boyish hubris and hopeless ignorance have made their presence. If the protests have not already eaten themselves by the time you read this, it is almost certain that they will spiral out of control into a hellscape that nobody can control or stop.

‘

Once again, a group of youngsters filled with idealism and burning with white hot hubris may be on the cusp of a violent takeover of Nigeria’s public space. If that happens, we should already know how the story will turn out and what to expect

What happens at that point? A violent campaign of street justice against errant police officers? A total breakdown of the remaining semblance of rule of law? A military coup? Who knows? The only thing we know for a fact is that uncontrolled and unregulated explosions of testosterone-driven activities always end in floods of tears and blood. However, let it not be said that I hold any sympathy for the system as it currently exists. In the event that the Young Turks of 2020 end up becoming the latest in Nigeria’s long running Lord Of The Flies reenactment after violently evicting the existing order, one cannot honestly say that the order does not deserve it, from the murderous foot soldiers like James Nwafor right up to President Buhari himself, who has repeatedly been a beneficiary of murderous actions starting from 1966. Once again, a group of youngsters filled with idealism and burning with white hot hubris may be on the cusp of a violent takeover of Nigeria’s public space. If that happens, we should already know how the story will turn out and what to expect. We should also know that if nothing else is certain, this will definitely happen again. In Nigeria there is always a next time. Hundeyin is a writer, travel addict and journalist majoring in politics, tech and finance. He tweets @DavidHundeyin.

Guns and SARS - A management and business case study

he SARS epidemic is a classic business and management case of forgetting the “problem to be solved”. The major reason SARS was formed was when Col. Rindam, a Nigerian Army Colonel was killed by police officers at a checkpoint in Lagos. That led to a faceoff between the Nigerian Police and the Nigerian Army that eventually made the police scamper from the streets. To avoid Marshall Law and to curb excessive robbery, SARS was mainly formed in 1992 as an undercover and for anti-robbery. This was in the 90s, the global crack cocaine and guns era. In other news, current data shows us that there has been a steady decline in armed robbery in urban Nigeria. SARS definitely can’t take credit for the decline in robbery! The reason for the decline in robbery isn’t because of SARS but that today’s everyday cars (the type used for Ubers) and higher models especially for robbers to snatch are more security equipped and traceable. People’s homes and wallets are more cashless. So snatching cars, invading middle and upper class homes or pulling off bank heists (which were more popular decades ago) are getting riskier and pointless. So those who could have been robbers now have alternative crimes that are more socially acceptable (such as internet fraud, kidnapping, product counterfeiting, terrorism, drug dealing, politics, prostitution and even political thuggery). Take for example; according to a Guardian Newspaper publication, between June 2011 and the end of March 2020, at least $18.34 million has been paid to kidnappers as ransom. Even more frightening is that the larger proportion of that figure (just below $11 million), was paid out between January 2016 and March 2020, indicating that kidnapping is becoming more lucrative. Such crimes pay more than robbery and less riskier and easy to get away with. It makes us question the problem that

d Stockbroker and Management s.

SARS currently really solves as against the one it creates. An average price for an AK47- Assault Kalashnikov rifle, (the gun most widely used among the Nigerian police) is $600, that’s over N250, 000. And the carrier, the police sergeant on grade level 5 earns approximately 48,000 Naira, which is $ 126 monthly. Therefore, the salary of an average policeman is worth less than an AK 47 rifle by over 500 percent. How do you give a hungry and broken man man’s most powerful firepower and expect him to act right? As Wike reinstated, they have become criminal allies and daylight perpetrators’ themselves with it. But beyond just being inhumane, there is a science to that. That science is economical and also psychological and mental. To be a SARS official comes with a deadly state of mind; the peril of their job leaves a psychological effect on the subconscious of these officers. The outcome we see is extra judicial killings and torture. The truth is that official jobs SARS officers’ carry out is not shared in the public domain. Generally, there are 4 reasons why people join the military, police, or paramilitary: 1. It is a family tradition. 2. The person is patriotic and wants to serve his country. 3. Because of the money / high rate of unemployment. 4. The person is looking for a legal means to kill other people. We forget that there is a fetish to number 4. Category 4 individuals are violent and brutish in nature that is so hard to control. For them it is a habit, the way we pick up habits like smoking and drinking. When they are no criminals they may turn to innocent citizens. That is why MI5, MI6 & CIA ensure their officers are of sound mind and can be controlled via a methodology. Yes, data gives you an idea of what is going on but the social aspect points you in the right direction. There is a habit out of control and laying someone off or redeploying www.businessday.ng

without rehabilitation is a time bomb. Especially, then they have grown beyond the control of their subjects in the police force. If you’ve ever tried to report a crime (whether impunity, extortion or brutality) by one of its own to a police division, you’d see that they are even feared in the stations. Non SARS police colleagues, even seniors dread them. They have outgrown their institutions. They are strong men. And that’s the point. Africa has one of strongest, most prolific and intelligent men who produce unintelligent results when in a group or institution. So Obama in 2009 while on a presidential visit to Ghana reminded us all “Africa does not need strong men. It needs strong institutions”. Back to my core; management and business; things like bad policing, bad governance or bad businesses is a case of organizational leadership versus personal leadership with selfish motives. It’s the absence of collective intelligence. It’s a case of waste (ever wondered the metrics for joining the police; who applies or even makes it there on merit? Ever wondered what metrics criteria for joining or being promoted are, or the cost price of an AK 47 and why every police seems to have one? Even rich countries, except their SWATs don’t all give their police on regular patrol an expensive assault weapon such as an AK 47!). Who advises and makes money from such supplies? That explains what corruption does to a business case. The entire Nigerian police are wasteful. Its leadership is unskilled and distracted. Those who are the top of the Nigerian police supposed to drive the goal top down are busy playing Federal politics for favours and economic gains and really know to not bother the lower grade police they have helped impoverish. So every checkpoint, police van and bus drive-by is a business unit. Primarily away from security, they are on the streets hustling for their own crumbs. It’s no secret. Their bosses know too. The entire SARS

https://www.facebook.com/businessdayng

EIZU UWAOMA extortion is a business model with revenue, cost of sales, profit and remittance to members of its organogram. It’s an interesting business model for Macroeconomics. It should be taught in Harvard. SARS still remains tactically genius in its core but played out. With genuine reforms could have been intelligent high flyers that they were. But their goals are now individualistic and evil. It’s the dilemma of having massive gun power with ulterior motives in a world of poverty and bad leadership. It could have been an African pride. Africans have potentials of high flyers, but we stay collectively low. Even when we individually rise, it only makes us the tallest midgets of the world. It’s not enough to have a good intention, to launch it smartly, to be individually upright or to lead. No matter how good we are or what we do, when we step back, even before our job is done, what we should really ask is “what was the problem solved” with who we are? Beyond just banning SARS, this time it has to be followed through; with an Executive Order, a Legislative Action & a Judicial Panel of enquiry set up to compensate victims and to prosecute those found wanting in its impunity and brutality. And in parallel, rehabilitation and a real police reform. Nothing more, nothing less!! That’s the only true way to #EndSars and gives the outcome useful data to the management body of knowledge.

@Businessdayng

Uwaoma is a start-up, corporate restructuring and strategy consultant. contacteizu@gmail.com

BUSINESS DAY

Monday 19 October 2020

EDITORIAL PUBLISHER/EDITOR-IN-CHIEF

Frank Aigbogun

Reforming Nigerian Police: Lessons from Georgia

EDITOR Patrick Atuanya

Nigerians are tired of abnormalities

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

Bashir Ibrahim Hassan

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

he clamour to end the Special Anti-Robbery Squad (SARS) has dominated the news and social media space in the past few weeks. Nigerian youths are out on the streets, in large numbers, across the country voicing their displeasure over the illegal operations of this “rogue” unit which has been accused of extra-judicial killings, extortion and other unethical conducts. To the youths and many Nigerians, nothing short of justice would be accepted. Nigerians’ demand for the disbandment of SARS has gone beyond the shores of the country dominating the social media space as those in the Diaspora have joined in the protest using the hash tags EndSARS, EndPoliceBrutality #EndSWAT. Beyond the request for the disbandment, protesters are also demanding for critical reforms in the Nigerian police force, all of which were contained in a “7-point demand” submitted to the federal government While it is impossible to ask the authorities to scrap the entire police force in view of its importance and constitutional duties of maintaining law and order in

the country, it is important that reforms address identified challenges in the system. To reform the Nigerian police force, Nigeria could take a cue from Georgia, Eurasia under President Mikheil Saakashvili in 2004. Prior to his tenure, Georgia was a textbook example of “predatory policing” where the police did not perform the basic responsibilities of ensuring public safety; instead enrich themselves and their patrons by extorting citizens. Officers demanded bribes, trafficked narcotics and weapons, and worked for political and business elites as a mercenary security force. Reasons being that the police could not survive on the tiny salary they received. People paid as much as $2,000–$20,000 in bribes for jobs as policemen, earning the money back through an internal pyramid scheme funded by illegal pursuits. Each week, for example, patrolmen paid a fixed amount from the bribes they extracted from citizens for various “offenses” to their immediate supervisors, who in turn were expected to share a cut with their bosses, and so on. Traffic cops were always on the take. On an hour’s drive, one could expect to be stopped at least twice and asked to pay a small fine, citizens had little or no choice but to

pay up, whether they had broken laws or not. The corrupt system created a vicious cycle in which money rarely reached state coffers, salaries were not paid regularly, and police turned to crime to make money. After the Rose Revolution, Georgian society united to demand reform. This is similar to the Nigerian police story. In order to change the mentality of a broken, cynical, and fearful society at the same time earn their trust; Georgia eliminated redundant agencies and those beyond hope of rehabilitation, disbanded the Traffic Police, firing every one of the thousands of officers who had acted as state-sanctioned highway robbers. They were replaced with an entirely new force of Patrol Police who had no background in law enforcement and thus no ties to old, corrupted elites. Quality was prioritised above quantity. By reducing the size of the force, jettisoning agencies and ministries, and hiring only qualified candidates, Georgia increased salaries of police officers nearly tenfold, and then enforced zero tolerance for corruption in the system. We therefore advise the federal government to take a cue from Georgia in reforming the Nigerian police force, that agency is cor-

ruption personified with vices no different from bandits. It is highly commendable how the democratic actions of the Nigerian youths got both the state and federal government to listen and forced swift actions towards the need to reform the entire Nigerian police force. However, protesters have refused to give a nod to some measures rolled out by the federal government and Inspector-General of Police, Mohammed Adamu. Beyond the fact that protesters perceive the measures as incapable of addressing their demands, the continued protest across the nation shows the trust gap between the people and the government. In our view, the protest so far has sent a strong message to the federal government that Nigerians are tired of the abnormalities in the country and more importantly showed the power of the citizens to demand for change. Above all, Nigerians, not just the youths alone, can use the same spirit and energy so far exhibited to force both the federal, state and local governments’ officials to apply accountability, transparency and good governance in the discharge of their responsibilities in line with their oath of office. By so doing, we would have a people-oriented and people-centred administration.

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 Lagos 08033160837 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

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

OUR CORE VALUES

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

Monday 19 October 2020

BUSINESS DAY

www.businessday.ng

https://www.facebook.com/businessdayng

@Businessdayng

Monday 19, October 2020

BUSINESS DAY

COMPANIES&MARKETS Shell plans gas plant for Aba business area …Targets over one million traders in 37,000 shops in Ariaria alone IGNATIUS CHUKWU

hell Nigeria says it is set to begin its proposed City Gate Gas Plant in Aba, Abia State, targeting over one million traders in existing 37,000 shops in Ariaria alone. A statement from Shell says the project by Shell Nigeria Gas Limited (SNG) is a project that would ensure safe transmission and delivery of gas to business customers in the commercial city. It was gathered that the Aba City Gate plant complements SNG’s recently completed 20km domestic gas pipeline expansion project in Abia State, connecting Agbor Hill, Osisioma and Ariaria industrial zones. The expansion project is said to have enabled the supply of pipeline gas to Ariaria Market Energy Solutions Limited, the Independent Power Project (IPP) consortium that provides electricity to the

Henry Montego Homes set to address Nigeria’s housing deficit JOSEPHINE OKOJIE

popular Ariaria market in Abia State. Ariaria International Market is one of the largest leather shoe-making and open stall markets in West Africa, with over 37,000 shops and an estimated one million traders. SNG, together with its partners and local stakeholders, is said to have agreements to build gas distribution infrastructure and deliver natural gas to over 150 industrial and commercial customers, mostly in Ogun, Abia, Rivers, Bayelsa and Lagos States. This will drive industrialisation; provide employment for skilled and unskilled local population in addition to directly improving internally generated revenues in these states. Managing Director of SNG, Ed Ubong, said in the statement; “The Aba City Gate Plant will enable SNG to remove more impurities from natural gas, odorise the gas to increase quality gas to end

users”. He said that the SNG is the first gas distribution company in Nigeria to adopt this technical solution that ensures plant and product integrity. Ubong went on; “The project is the solution to the challenge businesses in the region face with frequent incursion of liquid into the gas pipelines. It is therefore aimed to provide customers top quality gas supply at a reduced cost.” BusinessDay gathered that the Aba City Gate Plant is a 10 million standard cubit feet of gas per day (mmscfd) facility that can be expanded to 30mmscfd equivalent, with 40 megawatts (MW) gas-topower electricity generation capacity which is also expandable to 120MW. SNG is indicated as Nigeria’s first and wholly owned subsidiary of an international oil company involved in domestic gas distribution in Nigeria, and has introduced the technical solution for

reinjection of Compressed Natural Gas (CNG) through its pipeline network, which enables injection of odours into natural gas and facilitates detection in case of leak. Ubong said SNG was committed to uninterrupted supply of quality gas to its customers in order to create increased business opportunities for its stakeholders. “Our development objective remains the creation of greater positive impact in our host communities and the provision of more and cleaner energy.” The leader of the project host community, Eze Okechukwu Onwuka, said, “The community is proud of the role that Shell is playing in driving development and economic empowerment through its domestic gas supply. We promise to continue to provide an enabling environment for smooth operations of the company’s activities in the community.”

n line with the increasing need for sustainable housing infrastructure, and in a bid to solve the country’s housing problems, Henry Montego Homes has added another ground-breaking development to its pool of affordable luxury housing in the residential space. The official groundbreaking ceremony of the new project, Montego Bay 4, was held recently in Lekki, Lagos. With all three phases of the Montego Bay developments successfully sold out, the company has gone a step further to drive her vision of homeownership for every Nigerian by launching the new Montego Bay 4 project. Henry Ebuluofor, managing director, Henry Montego Homes, and Industries Limited, said that the goal is to see average Nigerian young men and women who work so hard, own a home with no stress. “At Henry Montego Homes, we thrive on solving problems, and this is why we have gone

ahead to establish a very rare payment mortgage plan of five to eight years, which is the first of its kind in Nigeria,” he said. “In the nearest future, we hope to raise this bar to 20 years and thus expand opportunity for everyone to own a home,” he added. He stated that the Montego Bay 4 estate project, located at a highly sought-after location in Ikate, Lekki 1, Lagos, features a shopping mall, four-bedroom units of terraces, town-houses and semi-detached duplexes, as well as units of three-bedroom apartments, all exquisitely designed and fully finished. He added that the houses are currently selling for as low as N550,000 monthly, with the balance spread across five years. Ebuluofor noted that with Nigeria’s population growth rate currently at 2.6 percent annually, more and more new houses would be needed to accommodate the populace. He called on Nigerians, especially Lagos residents to take advantage of the Henry Montego Homes offer.

HerVest launches to boosts financial inclusion access for women MODESTUS ANAESORONYE

R-L: President Belemaoil, Tein Jack-Rich; Ebonyi State Governor, Dave Umahi; Senior Special Adviser to the Presidential on Youths and Student Affairs, Nasir Adhama; President of the Senate, Ahmad Lawan; President Muhammadu Buhari; Chief of Staff, Prof Ibrahim Gambari; Vice President Yemi Osinbajo and others during the Launching of the Presidential Youth Empowerment Scheme (P-YES) Tools organized by Belemaoil and the SSA to the Presidential on Youths and Student Affairs to employ 774,000 youths nationwide held at the Presidential Villa in Abuja.

Fitch Ratings revises BOI’s outlook to stable HOPE MOSES-ASHIKE

itch Ratings has revised Bank of Industry’s (BOI) outlook to stable from Negative, while affirming the bank’s Long-Term Issuer Default Rating (IDR) at ‘B’. According to the rating agency, “The affirmation of BOI’s ‘B’ Long- and ShortTerm IDRs, ‘B’ Support Rating Floor (SRF) and Support Rating of ‘4’ reflects Fitch’s view of potential support the bank could receive from the Nigerian authorities in case of need. The revision of the outlook on BOI’s Long-Term IDR to stable mirrors the outlook on the sovereign. “Fitch has equalised BOI’s

Long-Term IDR and SRF with the Long-Term IDR of the sovereign as it believes that the Nigerian authorities have a high propensity to support BOI. Our assessment primarily reflects (i) the bank’s important and clearly defined policy role in funding economic growth in Nigeria; (ii) its 99.9% state ownership, split between the Ministry of Finance (94.8%) and the Central Bank of Nigeria (CBN; 5.1%); and (iii) the entirety of the bank’s wholesale funding being either provided or guaranteed by the Nigerian state. However, Fitch also views the ability of the authorities to support BOI as limited as indicated by Nigeria’s ‘B’ Long-Term IDR.

“BOI is Nigeria’s primary development bank, with the sole mandate of financing the country’s emerging industrial sector. The bank works closely with federal and state governments, and Nigerian banks, to meet its developmental objectives. BOI plays an important role in supporting important government policies and in providing counter-cyclical loans since the onset of the economic crisis resulting from the coronavirus pandemic. “BOI has successfully managed to diversify its resources in recent years. In March 2020, the bank secured a EUR1 billion loan facility from a syndicate of commercial banks and mul-

www.businessday.ng

tilateral development banks, which is fully guaranteed by the CBN. We expect that it will serve to expand BOI’s lending to priority sectors. “BOI maintains a solid capital base (end-1H20: equity-toasset ratio of 24.4%), which is prudent for the bank’s exposure to the volatile operating environment. Profitability is not a key objective; however, BOI continues to generate reasonable returns on equity driven by healthy net interest margins and, so far, moderate loan impairment charges. “The affirmation of BOI’s Long-Term National Rating of ‘AA+(nga)’ reflects the bank’s unchanged creditworthiness relative to that of other credits in Nigeria.

https://www.facebook.com/businessdayng

erVest, a women-focused financial technology company has launched in Nigeria as the country’s first Fintech platform to enable women participate in key financial services including savings, fund transfers and impact-investment. The Nigerian based Fintech Company bears a mission to improve women’s lives through greater access to and use of financial services. According to Solape Akinpelu, founder/CEO of HerVest, the company was launched to solve women’s problems, particularly increasing women’s financial inclusion in Nigeria. “We built HerVest through a gender lens, beyond culturally limiting prisms for women to build healthy money habits and achieve financial wellness,” Solape said. To further shed light on the timeliness of the company’s solution which addresses Nigerian women’s access to financial services, Solape revealed that Nigeria remains on the financial exclusion priority list. “Globally, over one billion women are financially excluded but that’s not the news. The news is that Nigeria is the only West African country on the exclusion priority list alongside comparator countries like Pakistan, Indonesia, Mexico, Egypt, India and Bangladesh,” She disclosed. @Businessdayng

“In Nigeria alone, 36 percent of women are financially excluded compared to 24 percent for men,” she added. HerVest operates a tripronged approach that revolves around: aggregation of investment into diverse financial market instruments; project financing of female smallholder farmers (staple crops, export crops, grain banking); and digitalization of extension services to female small-holder farmers through partnerships with major stakeholders. The company offers competitive investment returns that allow women to earn between 8 to 25 percent annualized returns on its platform. “Our approach at HerVest strengthens the capacity of the formally included woman in making decisive investments in diverse financial markets, while at the same time strengthening female small-scale farmers who mostly lack access to capital and market by deploying an off-taking model,” Solape explained. Solape further disclosed that the social enterprise has resolved to trudge on and drive desired change in the society. In her words: “We are focused on the numbers, not in a fixed way but with a growth mindset. We are focused on impact, change, sustainability and higher adoption amongst women from the boardroom to the farmland, for the women agenda and the society at large.”

Monday 19 October 2020

Harvard Business Review

BUSINESS DAY

ManagementDigest

What’s the point of saving for retirement in your 20s? Andy Robinson

y 19-year-old sister and I are roommates in Boston, and despite my best efforts to not be a Dad, I’m certainly acting like ours. I’m on a mission to convince her to start saving for her retirement. Talking about retirement is peak Dad mode. I see it. I get it. I can hear myself. Or rather, I can hear our Dad, saying, “Make sure you’re saving.” But she’s skeptical, and full of logical questions, like: “Seriously, why do I need another savings account?” My preferred investment vehicle is an Individual Retirement Account (IRA) — it’s a savings account made through a financial institution that builds interest over time and is taxed either when you add funds (a Roth IRA) or withdraw at retirement (a traditional IRA). Unlike your typical 401(k), these accounts aren’t tied to an employer, and the average percentage rate of returns fluctuates anywhere between 5% and 12% over a lifetime. (That’s much higher than the typical savings account interest rate of about .06%.) Wait, what is “interest” and why is it so important? “Learn from my mistakes,” I tell her. By the time I took the plunge, I was 26 (I’m 28 now) — meaning I’d missed out on a few years of collecting interest on my own money. “Do you want to have to work into your old age? What if you get sick and can’t work? What if you want to retire early?” But my sister is philosophical. She starts in with the existential questions: “Isn’t it true that you can’t access that money until you’re in your 50s? Will we even live that long? What’s the point?” This question is tougher for me to answer coherently. She thinks she’ll die young, and throwing money into an account she doesn’t think she’ll ever use seems kind of pointless. “What are you even saving for?” she asks. What’s the use in having

money that you can’t access readily when you may need it the most now? Is it safe to trust financial institutions during an economic recession? Is retiring really realistic anymore, with so much student loan debt, the high cost of health care and rising housing costs? I needed help answering these questions, so I brought them to an expert: Megan Leonhardt, a senior money writer for CNBC. Here’s what I learned from our conversation. IS IT TRUE THAT IF I PUT MY MONEY INTO AN IRA, I WON’T BE ABLE TO ACCESS IT UNTIL I’M IN MY 50S? Your money isn’t untouchable. When you contribute to an IRA, your money isn’t locked away in some unattainable place. It’s not as easy to access as your checking account, but it is accessible. I know that experts say “Don’t touch your retirement savings,” but there are a lot of exceptions where you can actually use that money if you run into real problems. It’s not locked up forever. Yes, you will have to pay some penalties, depending on how you’re using it, but if you need that money, it’s there, and it could be a safety net. The penalty is a 10% fee www.businessday.ng

if you withdraw before age 59-and-a-half, but there are a few penalty-free exceptions. It’s also worth noting that if you use a Roth IRA, you can withdraw any contributions from it at any time, penalty free. WILL I EVEN LIVE TO SEE THAT MONEY? If you’re worried that you won’t live to see your funds, consider using a will to designate your money to a cause you believe in, should the worst happen too soon. Certainly, naming family and friends as beneficiaries is a good option too — but no matter the outlet for your money, it’s good to know that if you don’t live to see your retirement funds, someone else will. CAN I ACTUALLY TRUST FINANCIAL INSTITUTIONS? Yes, but do your homework. We feel the repercussions of financial problems when they hit. The 2008 recession was 12 years ago, but those who lived through it don’t struggle to remember it. Banks were bailed out by the taxpayers, yet it feels like some Wall Street CEOs still got bonuses while retirement funds disappeared. A healthy amount of skepticism is really crucial to have,

https://www.facebook.com/businessdayng

because it forces you to make sure that you’re understanding everything and also protecting yourself. These institutions have millions of customers, and unless you’re paying for a financial planner’s help, you’re on your own. If a financial planner meets with you, take their card and do some digging. Read up on the companies. No institution is perfect, and if you see complaints against them, look for patterns. These financial institutions all have their own controversies. If there is a pattern of deception or unethical practices, steer clear. And you can also call them directly with questions. WHERE DO I START? The sooner you start saving, the bigger your financial gains. Of course, life can get in the way, and doing your research takes time. But if you need help getting started, you can turn to a financial planner, adviser, or coach. I obviously realize that we’re all busy individuals, and sometimes the best path isn’t always the one you take. Still, it’s better to do something rather than nothing. WHAT IF YOU JUST DON’T HAVE ENOUGH TO START @Businessdayng

SAVING? If you need the money to survive today, then hold off on saving. If you’re struggling to pay for your necessary costs, it’s OK to recognize that you might not be in the best financial situation to put money away. I think it is perfectly fine to say, “At this point, I need to pay for the things that I need to survive today.” But if you do have disposable income, make sure some of it goes to retirement. It doesn’t have to be all of it, but it shouldn’t be none of it. IN CONCLUSION After talking with Megan, I tried to relay her points to my sister, but she didn’t really care. And I totally empathize with that. The world is very different now. We are still living through a pandemic, and the future is uncertain. Tomorrow is uncertain. But my sister still has time. I just hope she doesn’t wait as long as I did to start.

Editor’s Note: The opinions expressed here are for general informational purposes only. It is important to do your own research and analysis before making any financial decisions. We recommend speaking to an independent adviser if you are unsure how to proceed.

Monday 19 October 2020

BUSINESS DAY

In Association With

Xinjiang and the world

The persecution of the Uyghurs is a crime against humanity It is also the gravest example of a worldwide attack on human rights

HE FIRST stories from Xinjiang were hard to believe. Surely the Chinese government was not running a gulag for Muslims? Surely Uyghurs were not being branded “extremists” and locked up simply for praying in public or growing long beards? Yet, as we report in this week’s China section (see article), the evidence of a campaign against the Uyghurs at home and abroad becomes more shocking with each scouring of the satellite evidence, each leak of official documents and each survivor’s pitiful account. In 2018 the government pivoted from denying the camps’ existence to calling them “vocational education and training centres”—a kindly effort to help backward people gain marketable skills. The world should instead heed Uyghur victims of China’s coercive indoctrination. Month after month, inmates say, they are drilled to renounce extremism and put their faith in “Xi Jinping Thought” rather than the Koran. One told us that guards ask prisoners if there is a God, and beat those who say there is. And the camps are only part of a vast system of social control. China’s 12m Uyghurs are a small, disaffected minority. Their Turkic language is distant from Chinese. They are mostly Muslim. A tiny handful have carried out terrorist attacks, including a bombing in a market in 2014 that left 43 people dead. No terrorist incidents have occurred since 2017: proof, the government says, that tighter security and anti-extremism classes have made Xinjiang safe again. That is one way of putting it. Another is that, rather than catching the violent few, the government has in effect put all Uyghurs into an open-air prison. The aim appears to be to crush the spirit of an entire people. Even those outside the camps have to attend indoctrination sessions. Any who fail to gush about China’s president risk internment. Families must watch other families, and report suspicious behaviour. New evidence suggests that hundreds of thousands of Uyghur children may have been separated from one or both detained parents. Many of these temporary orphans are in boarding schools, where they are punished for speaking their own language. Party cadres, usually Han Chinese, are stationed in Uyghur homes, a policy

has argued that national sovereignty should come first—and not only for America. That suits China just fine. It is working in international forums to redefine human rights as being about subsistence and development, not individual dignity and freedom. This week, along with Russia, it was elected to the UN Human Rights Council. Start in Xinjiang

known as “becoming kin”. Rules against having too many children are strictly enforced on Uyghur women; some are sterilised. Official data show that in two prefectures the Uyghur birth rate fell by more than 60% from 2015 to 2018. Uyghur women are urged to marry Han Chinese men and rewarded if they do with a flat, a job or even a relative being spared the camps. Intimidation extends beyond China’s borders. Because all contact with the outside world is deemed suspect, Uyghurs abroad fear calling home lest they cause a loved one to be arrested, as a harrowing report in 1843, our sister magazine, describes (see article). The persecution of the Uyghurs is a crime against humanity: it entails the forced transfer of people, the imprisonment of an identifiable group and the disappearance of individuals. Systematically imposed by a government, it is the most extensive violation in the world today of the principle that individuals have a right to liberty and dignity simply because they are people. China’s ruling party has no truck with this concept of individual rights. It claims legitimacy from its record of providing stability and economic growth to the many. Its appeal to the majority may well command popular support. Accurate polling is all but impossible in a dictatorship, and censorship insulates ordinary Chinese from the truth about their rulers. But many Chinese people clearly do back their government, especially since to object is deemed unpatriotic (see article). Awkward minorities, such as Tibetans and Uyghurs, have no protection in such a system. Unbound by notions of individual rights, the regime has

been determined to terrorise them into submission and force them to assimilate into the dominant Han culture. China lies at the extreme of a worrying trend. Globally, democracy and human rights are in retreat. Although this began before covid-19, 80 countries have regressed since the pandemic began and only Malawi has improved, says Freedom House, a think-tank. Many people, when scared, yearn to be led to safety by a strong ruler. The virus offers governments an excuse to seize emergency powers and ban protests (see article). Abusive rulers often rally the majority against a minority. India’s prime minister, Narendra Modi, espouses an aggressive Hindu nationalism and treats India’s Muslims as if they were not really citizens. For this, he earns stellar approval ratings. So does Rodrigo Duterte in the Philippines, who urges the murder of criminal suspects. Hungary’s prime minister crushes democratic institutions and says his opponents are part of a Jewish plot. Brazil’s president celebrates torture and claims that his foreign critics want to colonise the Amazon. In Thailand the king is turning a constitutional monarchy into an absolute one (see article). How can those who value liberty resist? Human rights are universal, but many associate them with the West. So when the West’s reputation took a battering, after the financial crisis of 2007-08 and the botched war in Iraq, respect for human rights did, too. Although America has imposed targeted sanctions over the Uyghurs, the suspicion that Western preaching was hypocritical has grown under Donald Trump. A transactional president, he

Resistance to the erosion of human rights should begin with the Uyghurs. If liberals say nothing about today’s single worst violation outside a war zone, how can anyone believe their criticism of other, lesser crimes? Activists should expose and document abuse. Writers and artists can say why human dignity is precious. Companies can refuse to collude. There is talk of boycotts—including, even, of the 2022 Beijing Winter Olympics. Ultimately, governments will need to act. They should offer asylum to Uyghurs and, like America, slap targeted sanctions on abusive officials and ban goods made with forced Uyghur labour. They should speak up, too. China’s regime is not impervious to shame. If it were proud of its harsh actions in Xinjiang, it would not try to hide them. Nor would it lean on smaller countries to sign statements endorsing its policies there. As the scale of the horror emerges, its propaganda has grown less effective: 15 majority-Muslim countries that had signed such statements have changed their mind. China’s image has grown darker in many countries in recent years, polls suggest: 86% of Japanese and 85% of Swedes now have an unfavourable view of the country. For a government that seeks to project soft power, this is a worry. Some say the West would lose too much by lecturing about human rights—China won’t change, and the acrimony will stymie talks about trade, pandemics and climate change. True, keeping human rights separate from such things is impossible, and China will try to convince other countries that moral candour will cause them economic harm. Nonetheless, liberal democracies have an obligation to call a gulag a gulag. In an age of growing global competition, that is what makes them different. If they fail to stand up for liberal values they should not be surprised if others do not respect them, either.

AGoing Balkan betrayal full circuit

Britain should not resort to a new national lockdown The costs would outweigh the benefits

N ONE SENSE it marks the return of politics as usual; in another it is a sign of looming crisis. On October 13th Britain’s opposition Labour Party split sharply from the government, calling for a “circuitbreaker”, a two- or three-week national lockdown to cut the spread of covid-19. As Europe and America struggle with a surge in cases, other governments may also come under pressure to do the same. It would be a mistake. The benefits of a national lockdown no longer justify the costs. At this stage of the pandemic governments should focus on local measures. The impulse to do something is understandable. New reported daily cases in Britain are at a record seven-

day average of over 15,000 and are doubling every two weeks. Local leaders are angered by confusing orders from Whitehall (see article). No wonder Labour has seized on Boris Johnson’s faltering performance. Backers of a short, sharp lockdown say it would save lives— perhaps 7,000 or so according to modelling for scientists advising the government. By cutting the virus’s spread, the National Health Service would be spared the sort of overload that caused so many deaths in Italy earlier in the year. Once the epidemic had been reset at a lower level, the tracing system might be able to deal more promptly with the daily burden of new cases, helping to lower the rate of infections. A national lockdown makes sense only if a country is completely overwhelmed and underprepared—as at the start of the pandemic. Neither is true of Britain today. Although the recorded number of cases in Britain is over three times its peak in April, the comparison is misleading. For all Continues on page 17

Monday 19 October 2020

BUSINESS DAY

In Association With

Battle royal

Thailand’s king seeks to bring back absolute monarchy Maha Vajiralongkorn has provoked something new in Thailand: open criticism of a king

HE MONUMENTS disappear in the dark. In April 2017 it was a small bronze plaque from Bangkok’s Royal Plaza. It marked the spot where, in 1932, revolutionaries proclaimed the end of Thailand’s absolute monarchy. In December 2018 a statue was hauled away. It commemorated the defeat of rebels who attempted a coup against those same revolutionaries. Last month activists installed a plaque in the heart of Bangkok’s royal district to protest against the missing monuments. “The people have expressed the intention that this country belongs to the people, and not the king”, it stated. Within a day it was gone. The world knows Thailand’s King Maha Vajiralongkorn as a playboy who has churned through four wives, lives among lots of women in a German hotel and relishes skimpy crop tops that reveal elaborate temporary tattoos. For Thais, his four-year-old reign has been more sinister. The king makes elderly advisers crawl before him, shaves the heads of courtiers who displease him and has disowned several of his children. Worse, he has steadily amassed power, taking personal control of “crown property”, assuming direct command of troops and ordering changes to the constitution. He makes no secret of his hankering for the days of absolute monarchy (hence the disappearing monuments). But Thais began to protest in July. Can they prevent the removal not just of plaques, but of constitutional constraints? On October 14th thousands of protesters marched through central Bangkok to camp outside Government House, where ministers’ offices are located. They also formed human chains to carry away potted plants that blocked the way to the country’s Democracy Monument. Not far away King Vajiralongkorn himself, in the country on a fleeting visit, passed by in a motorcade. Clusters of royalists gathered wearing yellow shirts to show their loyalty to him. That night a spooked government issued an emergency decree banning gatherings of more than four people and prohibiting reporting on topics that could “harm national security” or “cause panic”. The government warned that protesters who insulted the monarchy would be prosecuted. Several prominent leaders of the protest were arrested the following morning. Yet tensions increased as protests continued in defiance of the decree. Thailand defines itself as a democracy with the king as head of state. The monarchy is revered. Photographs of royals adorn public buildings and private homes. Father’s Day is celebrated on the previous king’s birthday. Thais hear a royal anthem before films start at the cinema. Technically King Vajiralongkorn rules as a constitutional monarch.

But ancient structures have never entirely disappeared. The king used to sit at the apex of society in a semidivine role. Defenders of the vestiges of this order have long clashed with those claiming to represent an alternative source of authority: the Thai people. The conflict helps explain why Thailand has endured 12 coups and 20 constitutions since 1932. Since the 1950s a symbiotic relationship between the army and the palace has bolstered the legitimacy of military regimes. For the past two decades the greatest foe of such elites has been Thaksin Shinawatra, a populist prime minister ousted by the army in 2006. His supporters, known as red shirts, battled their yellow-shirted foes in the streets on several occasions in the years after he lost power. The generals engineered a coup in 2014. The commander who led it, Prayuth Chan-ocha, remains prime minister. An army-friendly constitution disadvantaged large parties, such as Mr Thaksin’s flagship one, Pheu Thai, in an election last year. One supposed reason why the army seized power six years ago was to ensure a steady succession between the ninth and tenth monarchs of the Chakri dynasty. King Vajiralongkorn’s path to the throne was not simple. Thailand’s elites took against him while his popular father still lived. King Bhumibol Adulyadej was considered the richest monarch in the world, his wealth outstripping that of oil-endowed Middle Eastern rulers and Europe’s royals with their castles and palaces. Aristocratic types fretted because the crown prince, as Vajiralongkorn was previously known, caused so many scandals. Even his mother likened him to Don Juan. After leaving his first wife, a princess in her own right, he disowned four of his five children with his second wife, an actress, who eventually fled Thailand. When the relationship ended with his third wife—once filmed almost naked and crouching before her husband with birthday cake—several of her

family members went to prison. The prince spent lavishly and indulged in eccentricity, elevating his beloved poodle, Foo Foo, to the rank of “air chief marshal”. Still, King Vajiralongkorn took over unimpeded after his father’s death. Whereas the father was publicly loved, the son is privately loathed. His coronation last year attracted tiny crowds compared with those at the late king’s funeral rites. Despite his co-operation with army regimes, millions of Thais felt King Bhumibol displayed the virtues expected of a Buddhist monarch. King Vajiralongkorn does not even live in Thailand. He rules a country of 70m people from more than 5,000 miles away in Germany. One insider bluntly appraises his activities there: “Bike, fuck, eat. He does only those three things.” The German government finds his presence awkward. “We have made it clear that politics concerning Thailand should not be conducted from German soil,” the foreign minister, Heiko Maas, told the Bundestag on October 7th. Money, money, money The king’s militaristic harem inspires embarrassing headlines around the world. Just months after his fourth marriage to a former air stewardess last year, he elevated one concubine, a former nurse, to the status of “royal noble consort”. She is the first woman to hold this title since Thailand became a constitutional monarchy. Sineenat Wongvajirapakdi fell from grace soon after her elevation. She disappeared from view. Then, in September, she was reinstated and declared “untainted”. Chinese netizens have likened Ms Sineenat to a crafty concubine from a popular television series, “Empresses in the Palace”. In March 2012 permission from the Justice Department was published in the Royal Gazette for a temporary prison. A spartan map appears to show its location as possibly within the grounds of a palace owned by Vajiralongkorn. His bad books are a miserable place

to be. Pictures allegedly of Srirasmi Suwadee, once his third wife, appeared in a German newspaper last year. Head shaved and tearful, she was reported as being under house arrest. Airing such dirty linen in public in Thailand, however, is perilous. The country’s lèse-majesté law allows between three and 15 years in prison for insulting “the King, the Queen, the Heir-apparent or the Regent”. King Vajiralongkorn has instructed the government not to use the law. But this hardly reflects newfound tolerance. Critics instead risk charges for sedition or computer crime, among others. In July one man was sent to a psychiatric hospital for wearing a T-shirt that stated: “I have lost all faith in the institution of monarchy”. Playboy antics distract from the more sinister feats of the monarch since he came to power. In political, financial and military matters King Vajiralongkorn has gained powers never possessed by his father. His interventions appear part of a larger strategy to push Thailand closer to absolute monarchy once more. Take his finances. In 2017 he gained full control of the Crown Property Bureau (CPB), which manages royal investments (it was previously run by the ministry of finance). Its holdings are estimated to be worth $40bn. In 2018 the CPB declared that its assets would be considered the king’s personal property. As a result the monarch has stakes in some of Thailand’s corporate titans. He is the largest shareholder in Siam Cement Group, a conglomerate with revenues of almost $14bn in 2019, with a third of its shares. The head of the CPB, long a stalwart in the king’s circles, is a director of Siam Cement Group and of the 113-yearold Siam Commercial Bank, one of Thailand’s biggest, in which the king also has a stake. In addition to the king’s private means, the Thai state showers the royal family with funds. For the 2021 fiscal year government agencies have drawn up budgets which allocate more than 37bn baht— over $1.1bn—to the monarchy. The Royal Office will receive 9bn baht of that directly. Much of the rest goes to government agencies, the police and the defence ministry for security and for development projects. By comparison, Britain’s Queen Elizabeth cost her taxpayers the equivalent of $87m last year. Precise details on where the money goes are elusive. Huge sums go to pay for royal transport alone (there are many planes and helicopters to maintain). King Vajiralongkorn’s political interventions are another demonstration of his growing authority. In theory the monarch sits above parties, parliament and politics. But after a referendum in 2016, in which campaigners were banned from opposing the constitution put forward for approval, the monarch demanded changes to the charter. He altered it specifically to make ruling from afar easier.

Britain should not resort to a new national... Continued from page 16

the system’s faults, the daily volume of tests is over 20 times what it was then. Mild cases that would have gone unreported six months ago are now picked up (see chart). This helps explain why deaths, at around 450 last week, are still just 8% of what they were in April. The fatality rate will increase, because it lags behind cases by three to four weeks. But better treatments are also saving lives. In choosing to act, deaths are more important than cases. It is not clear that a national circuit-breaker would have lasting benefits. The disease would start to accelerate again as soon as it was lifted. As the year draws on, people will spend more time indoors, where the virus spreads easily. The burden of proof is on the proponents of a circuit-breaker to show that the well-documented shortcomings of Britain’s tracing system could be fixed by a threeweek reorganisation or by a temporarily lower caseload. Compliance is also in doubt. Although polls support tough action, Britons seem to make an exception for themselves. A recent paper finds that just 18% of those who should have isolated themselves in the summer stuck strictly to the rules. If people flout them, the circuit-breaker may be kept for longer than three weeks, lowering compliance still further. It would also be economically ruinous. In April, at the height of the first lockdown, Britain’s output was one-quarter lower than it had been in February. The IMF argues that lockdowns may be worth it if they create an economy that can fully reopen for business. But nobody is suggesting that a short circuitbreaker could suppress the virus to that extent. And the trade-off would be even less worthwhile if you factor in the toll on mental health, the delay in treating other illnesses and the effects on long-term employment and education. To get covid-19 under control Britain should focus on sustainable local measures: identifying vulnerable groups, finding ways to protect them, identifying trade-offs, instigating local testing and recruiting leaders to generate local support. A circuit-breaker sounds like a scientific solution to a runaway problem. The reality would be a costly mess.

Monday 19 October 2020

BUSINESS DAY

MARKETS INTELLIGENCE Supported by Asset Management Corporation of Nigeria (AMCON)

Stocks

Currencies

Commodities

Rates + Bonds

Economics

Funds

Week Ahead

Watchlist

GTBank is the most successful lender in Nigeria BALA AUGIE

desoji Solanke Director for Frontier and subSaharan African banks at Renaissance Capital in a recent note to clients said his equity research firm’s top banking stock is Guaranty Trust Bank (GTBank). Renaissance Capital added the pick was predicated by the lender’s high quality of earnings in an environment fraught with difficulty. On the basis of the historical operational efficiency, balance sheet optimization, sound risk management strategy, robust profitability and dividend consistent, over 90 percent of investment houses have retained Buy ratings on GTBank. We have crunched some interesting numbers to validate Solake and his team’s wager on GTBank. Superior profit per employees than peer rivals GTBank, the largest lender by market capitalization in Africa’s largest economy, has deployed its staff in generating higher profit than its peer rival. What this means is that the lender’s workforce is productive and its workers are getting better education and having better skills that enables them to carry out tasks in an efficient and expeditious

P.E

SHORT TAKES N312m

manner. As of the first six months through June, GTBank, with staff strength of 3,842, recorded profit per employee of N27.07 million. That means each head generated N27.07 million in profit for the organization. This compares with Zenith Bank-with workforce of 6,521recorded profit per employee of N15.92 million as at June 2020. Access, the largest lender by total asset, has a workforce of 5,576 and recorded profit per employee of N10.94 million. United Bank for Africa (UBA), the pan African lender, has a staff strength of 11,200, but it has profit per employee of N3.96 billion. GTBank’s records lowest cost to income ratio amid tough operating environment Undoubtedly, GTBank is being run efficiently and its income is rising faster than costs even amid inflationary pressures, currency volatility, regulatory induced cost, Covid-19 donations, and huge overhead cost as cost to income ratio of 44.80 percent is the lowest in the industry. Zenith Bank has a cost to income ratio of 53.40 percent; FirstBank Holdings (FBHN), (65.80 percent); Access Bank, (65.80 percent), and United Bank for Africa, (67.20

After a disappointing 2018, Fidson healthcare seems to have regained its mojo as it records an after-tax profit of N312 million in full-year 2019 for the period ended 31 December. Revenue dipped 13.5 percent to N14.06bn from N16.22bn in the same period in 2018. Efficient cost management saw its cost of sales decline 17.35percent to N8.19bn from N9.91bn

5 The stock market declined for the fifth-straight trading session on Friday to end its worst week after CBN’s CRR policy weighed on banking stocks and set off 2020’s longest bear-run. Nigerian equities fell for all five trading sessions last week to close 2.65 percent lower weekon-week, and end January on a very different tempo than it began the month. Bank stocks shed 5.17 percent to push Year-to-date return to 7.46 percent, down from around 10 percent at the beginning of the week, while analysts say the bearish sentiment will likely extend to trading this week. “Next week, we expect bearish pressures on the equities market to remain, as investors continue to selldown on banking counters,” said analysts at Lagos-based Chapel Hill Denham in a note to clients.

N23bn percent). Analysts attribute GTBank’s cost optimization to the deployment of latest technology that executes transactions across branch offices and headquarters. The largest lender by market capitalization has the lowest wage bills or staff cost of (N18.77 billion) and total cost (staff cost plus other operating expenses) of N82.34 billion. The chart below shows Access Bank has a total cost of N174.14 billion as cost surged following the acquisition of Diamond Bank. Zenith, (N135.84 billion); FBHN, (N131.17 billion), and UBA (N132.12 billion). GTBank delivers higher returns to shareholders Little wonder GTBank has the

highest return on average equity (ROAE) in the banking industry, which means it is more efficient in utilizing shareholders’ resources in generating higher profit. It has ROAE of 26 percent as at June 2020, that compares with Zenith Bank’s (23.30 percent), Access Bank, (15.10 percent); UBA, (12.10 percent), FBHN, (11.80 percent). GTBank plan to set up a holding company will allow the lender to offer other financial services, which could position it for even stronger growth. The Lagos-based firm is also splitting its banking division into four separate subsidiaries to oversee Nigeria, West Africa, East Africa and its U.K. unit

Interswitch Limited has listed its N23bn callable senior unsecured bond with a tenor of seven years at a fixed rate of 15percent, embedding a call option that can only be exercised from the second year, are payable in full at maturity A callable bond is a bond that the issuer may redeem before it reaches the stated maturity date. In essence, a callable bond allows the issuing company to pay off their debt early. According to the company, this is part of its N30bn debt issuance programme through a special purpose vehicle, Interswitch Africa One Plc.

BusinessDay MARKETS INTELLIGENCE Team Lead: BALA AUGIE, IFEANYI JOHN; Graphics: FIFEN FAMOUS

BMI provides in-depth analysis and data on industries, companies, stocks, currencies, fixed income/credit, economics, regulation and factors that influence investor’s decision-making Continues on page 37 Email the BMI team balaaugie@yahoo.co.uk; augiebala@gmail. www.businessday.ng

https://www.facebook.com/businessdayng

@Businessdayng

Monday 19 October 2020

BUSINESS DAY

www.businessday.ng

https://www.facebook.com/businessdayng

@Businessdayng

Monday 19 October 2020

BUSINESS DAY

START-UP DIGEST How Kusin Ekanem struck gold in skincare business In association with

JOSEPHINE OKOJIE

usin Ekanem, an Akwa Ibom State-born ent r e p r e n e u r, found gold three years ago in natural products. She built a business around it and is leveraging opportunities in the fledgling industry. She is a certified skincare expert and founder of Missy Natural Cosmetics, a Nigerian brand that has brought succour to those who have challenges with their skin and hair. Ekanem’s brand is all about natural organic skin and hair care products for all types of African skin and hair. The entrepreneur, with a background in Insurance and Educational Psychology, says she had a skin discoloration that compelled her to go back to her village to seek solution about eight years ago. Little did she know she was going to unearth an idea that would make her find her path in entrepreneurship. “It all began in 2012. I had this skin discoloration that forced me to journey to my village to stay with my grandmother, a midwife, who introduced and pre-

scribed the use of black soap for bathing. In fact, that was the first time I came across black soap,” she says. Her grandmother gave her the soap to bath with and in a short while, her skin was back to normal and looked like a new baby’s. “Interestingly, in my tribe, black soap is usually recommended for women who just gave birth. It’s for beautification and clearing of all skin conditions that may have been caused by the pregnancy hormones,” she further says. Ekanem notes that along the line, she discovered that the soap was also suitable for use on anyone’s skin. Then, the idea struck her that she could equally recommend the use of this soap to help others with skin conditions. “In 2013, while I was back in school, I recall my roommates knew I had this black soap that made my skin glow. Secretly, they craved for an opportunity to use the soap. And not too long, I observed that they had begun to use it mostly when I was not around,” she discloses. The natural beauty expert says she had no choice but to begin to sell the soap for as low as N100 to her friends

Kusin Ekanem

as well as hostel mates. She says that demand soared to the extent that people began to ask for wholesale purchases which eventually led to her coming up with a distribution plan for those who wished to resell. Today, from a single product brand, Missy Naturals has birthed several ranges

of natural organic products such as natural soaps, body moisturizers, deodorants and talc-free baby powder. “By 2019, the desire to take our products into the larger market grew. This prompted me to get the necessary NAFDAC approvals for all the products. “However, our goal has

always been to give natural solution and affordable prices, so the average person can benefit.” The entrepreneur says the brand has held several empowerment trainings as a way of adding value to the economy. Currently, it holds a professional training to direct other SMEs to secure accurate information on getting their products certified, approved, standardized. It likewise informs entrepreneurs on how to get their made-in-Nigeria products into the market. “My dream is to see Nigerian products have a good market share in the African market. As at today, we have about 10 percent of Nigerian skincare products in the market,” she says. “I desire strongly to contribute to the the growth of Nigeria’s economy. I want to see natural alternatives to skincare products sold, such that the average Nigerian can benefit from it,” she further says. Sharing insight on economic empowerment, Ekanem discloses that her brand has created a scheme to share their wealth with partners and customers. “We have had empowerment trainings for some non-governmental organisations such as: Save our

Girls and Women Foundation ( SOW&G Foundation), Nigerian Ambassadorial Foundation for Rural Development, Amazing Amazon initiative, Life plus, among others. Speaking on her achievements since inception, she notes that she has embarked on some professional courses from School of Natural Skincare formulation, UK; Personal institute of cosmetic science, among others. She adds that NAFDAC registration and approvals of her products are, no doubt, part of her achievements. She says this has made the brand gain acceptance i n ma ny d e p a r t m e nt a l stores in the market today. Missy Naturals products are currently in about six states in Nigeria. She says one of her major challenges is people’s perception about products made locally. She advises everyone to be be proud of whatever comes out of Africa. “Raising funds for large production has been one of our challenges, but we are gradually overcoming it,” she says. She concludes, by a way of encouragement to young aspiring and budding entrepreneurs, saying the markets is too large to accommodate new ideas.

SMEs call for proper regulation of cosmetics formulation industry JOSEPHINE OKOJIE

mall and medium scale operators in the cosmetics industry are calling for the proper regulation of the sector to aid standardisation. The SMEs operators, who spoke at the grand launch of Semsey Cosmetics Manufacturing Hub recently in Lagos, said with proper regulation of the industry, local cosmetics products could compete globally, earn foreign exchange for the country and

drive economic growth. They noted that operators in the industry were faced with numerous challenges, especially in the area of obtaining necessary certification from the Food and Drug Administration and Control (NAFDAC). They added that the regulatory bottleneck was responsible for the large numbers of unregistered cosmetics businesses in the country. Speaking of the newly established cosmetic hub, Tubosun Afolayan, a cosmet-

www.businessday.ng

ics formulator and producer, said that the hub was to support SMEs in cosmetics businesses with training, mentoring, and assistance in getting relevant certification. “It is a place where SMEs can come in, use our standard equipment instead of doing the production in their kitchens,” Afolayan, who is also the founder and chief executive of the cosmetics hub, said. “Also, we will assist them through the process of getting necessary NAFDAC certifica-

tion via our contract manufacturing services,” she said. She stated that the hub was created to provide support entrepreneurs in the industry to get registered and certified to scale their businesses. Afolayan, who was inspired by a personal skin challenge to establish her cosmetics business, was promoting healthy skin using organic products and training lots of start-ups on cosmetics formulators. Speaking also during the

https://www.facebook.com/businessdayng

launch, Toki Mabogunje, president of the Lagos Chamber and Commerce Industry (LCCI), while commending the firm for its efforts in the cosmetics value chain, said SMEs would thrive notwithstanding the challenges the environment presented. Magogunje, who was represented by Foluke Oloniyo, Business Education Service Training (BEST) unit, said that the hub would help many other entrepreneurs come out of formulating in their kitchens.

@Businessdayng

“The hub will also help a large percentage of cosmetics manufacturers to stop formulating from their homes where there is little or no standards, making the endusers to pay the consequences of substandard products,” she said. Similarly, George Onafowokan, managing director and chief executive officer, Coleman Wires and Cables, in his remarks, said that SMEs were critical in growing the Nigerian economy and creating jobs.

Monday 19 October 2020

BUSINESS DAY

REAL SECTOR WATCH

Friesland Campina eyes dairy revolution in Nigeria with new development centre GBEMI FAMINU

riesland Campina WAMCO Nigeria Plc, an affiliate of Royal Friesland Campina in the Netherlands and one of the largest dairy cooperatives in the world, has launched the Centre for Nigerian Dutch Dairy Development (CNDDD) in Nigeria. The company aims to trigger dairy revolution and self-sufficiency in Africa’s most populous nation. Speaking at the virtual launch of the center, Bernard Langat, managing director, Friesland Campina, said the center was built on a Sino Dutch concept adopted in China to boost the productivity and quality level of the Nigerian dairy sector. He described the country’s dairy sector as a diamond in the rough— quite valuable but bedeviled by challenges “About 95 percent of cattle herds in Nigeria are local indigenous breeds with over 60 percent owned by nomadic Fulani herds with an average milk supply of two liters per day from each cow,” Langat said. “Also, the few available commercial dairy farms suffer low profitability as imported milk powder accounts for about 75 percent of raw materials used

by Nigeria’s dairy industry to process dairy products,” he further said. Langat noted that in preparing for the continuous increase in population figures, it was necessary to embrace the agricultural sector, especially the dairy sector, which was one of the pillars that would bring economic and social stability in the country. While delivering the keynote address, Yemi Osinbajo, vice president of Nigeria, said the launch of the center was an effort that would contribute to building a self-sufficient dairy segment in Nigeria. He said it underscored

the commitment of the Netherlands to developing the sector and supporting Nigeria’s industrialisation agenda. Osinbajo, who was represented by Adeniyi Adebayo, minister of Industry, Trade and Investment, noted that the country’s dairy market was serviced largely through import valued at $1.3 billion to supply the deficit in local productions, with milk production accounting for about 13 percent of West Africa’s production and 0.01 percent of global production. “Nigeria is aggressively focusing on driving its industrialisa-

BUA, FAVA sign agreement for installation of 720-ton pasta plant ODINAKA ANUDU

UA Group, Africa’s leading foods and manufacturing conglomerate, has signed an agreement with FAVA of Italy for the supply and installation of a pasta processing plant with a total capacity of 720tons per day of pasta across five lines. W hen complete d in 2021, the plant will see BUA become the second largest pasta producer in Nigeria, the group said in statement. This new plant will complement BUA Group’s already existing 720tpd pasta processing plant in Port Harcourt, bringing BUA’s total installed pasta processing capacity to 1,440tons per day across 10 lines by the end of 2021. Speaking during the s ig n i ng, Ab d u l Sa ma d Rabiu, chairman of BUA Group said, “We are excited to work with FAVA for the

supply and installation of our newest 720tons/day pasta processing plant in Port Harcourt, Nigeria, to complement the existing five lines of the same capacity we have in the same location.” He s a i d t h e p ro j e c t would drive BUA’s total installed capacity for pasta processing to 1,440 tons per day by 2021 to meet increasing demand and take advantage of the prime location in Port Harcourt to efficiently supply key markets in Nigeria and immediate regional markets. “As the region’s population continues to rise, our continued investments across the agriculture and foods processing value chain will be crucial in helping to enhance food security in Nigeria and the region. Through this and other projects in the pipeline, we expect to become the leading player in the flour milling/pasta prowww.businessday.ng

cessing industry within a very short period,” Rabiu noted. On his part, Luigi Fava, chairman of FAVA, thanked BUA Group for the opportunity to work on this project, saying that FAVA would bring its unrivalled expertise and wealth of experience to bear in delivering one of the best and most advanced pasta processing plants in the world. He also commended BUA’s commitment to excellence and said FAVA was committed to delivering this project on schedule. BUA Group is one of the leading players in the Foods, manufacturing, mining and infrastructure space in Africa. The group’s investments in agriculture value chain is spread across various industries from flour/pasta to sugar plantations & refining, rice, edible oils and providing technical assistance.

tion and backward integration plans across various sectors including dairy. The establishment of the center will impact the economy positively by creating employment, fostering economic diversification, building industrial capacity and competitiveness and improving the management of the country’s foreign exchange reserves,” he said. Jeroen Elfers, corporate director, Dairy Development and Milkstreams, Friesland Campina, said the objective of the center was to boost productivity and sustainability in Nigeria’s dairy sector by pooling diverse re-

sources, including inspiring and knowledge sharing among dairy stakeholders. Elfers noted that to achieve a sustainable dairy sector, it would be necessary to build expertise knowledge, infrastructure and cooperatives, while also training and supporting farmers. “The CNDDD will unlock and develop dairy expertise for all stakeholders in and beyond the Nigerian dairy sector. We have 19,000 farmers in the Netherlands whom Friesland Campina just co-opted, and these Dutch farmers will go on missions to Nigeria to teach, coach and mentor local farmers in the country,” he said. He further said that the center, which was located at the University of Abuja campus, commenced operations on the October 15 with the publication of a brochure on the international dairy sector and the COVID-19 pandemic. He added that the center would, over the next few months, roll out its other initiatives. Beyond boosting the dairy sector, Elfers noted that the center would engage in many other activities including training programs, research sponsorship on breeding and feeding, incorporation of knowledge and expertise from Netherlands.

NACCIMA advocates digitisation to improve margins GBEMI FAMINU

…celebrates 60th anniversary

he Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA) in commemoration of its 60th anniversary has called on its members to incorporate technology and digitisation in carrying out their businesses in line with global standards and to improve margins. Speaking to journalists at a media briefing on in Lagos, Saratu Iya Aliyu, national president, NACCIMA, said it is necessary for business owners to integrate technological and digital devices in their business operations, adding that the new normal enforced by the outbreak of the Coronavirus (COVID-19) pandemic has made technology critical for boosting businesses locally and globally. “As we mark 60 years of

the existence of our association and prepare for the Future of Business, we are already repositioning our association to continue to play its advocacy role as the Voice of Nigerian Business in the new digitalised economy, which is part of the new normal,” she said. “We are continuously refle cting and already a d o p t i ng s t rat e g i e s t o nav i gat e o u r n e w a n d emerging economy. We will also continue to work in an innovative manner to capacitate and reposition chamber members across the nation,” she further said. She disclosed that membership of the association has grown from six to 51 with over thirty thousand corporate bodies. She further noted that direct or indirect membership holds a significant position in the country’s economic

https://www.facebook.com/businessdayng

@Businessdayng

history especially with the growth and development of the Nigerian private sector, stressing that the actions and advancement of its members would spur development in the economy. Nabil Saleh, chairman, NACCIMA@60 committee, said that in celebrating the association, its executives have rolled out various initiatives for the benefit of its members. Saleh said this would promote the growth and competitiveness of the private enterprise. Saleh further said that due to the global COVID-19 pandemic, the anniversary celebration themed ‘the future of business’ is being broken down into phases, extending into 2021, with its conference and awards ceremony scheduled to hold in February 2021 during the 1st Quarter Council meeting in Abuja.

Monday 19 October 2020

BUSINESS DAY

Live @ The STOCK Exchanges Prices for Securities Traded as of Friday 16 October 2020 Company

Market cap(nm)

Price (N)

Change

Trades

Volume

Company

Market cap(nm)

Price (N)

Change

Trades

Volume

PRICES FOR MAIN BOARD SECURITIES (Equities) BANKING ACCESS BANK PLC. 282,584.54 7.95 2.58 249 29,152,216 UNITED BANK FOR AFRICA PLC 246,235.83 7.20 8.27 492 100,229,411 ZENITH BANK PLC 676,594.44 21.55 7.75 810 73,928,278 1,551 203,309,905 OTHER FINANCIAL INSTITUTIONS FBN HOLDINGS PLC 229,729.87 6.40 3.23 326 54,221,137 326 54,221,137 1,877 257,531,042 TELECOMMUNICATIONS SERVICES MTN NIGERIA COMMUNICATIONS PLC 2,849,631.83 140.00 0.36 103 1,819,819 103 1,819,819 103 1,819,819 BUILDING MATERIALS DANGOTE CEMENT PLC 2,556,076.11 150.00 - 110 1,057,466 LAFARGE AFRICA PLC. 303,631.95 18.85 4.43 310 11,399,978 420 12,457,444 420 12,457,444 EXPLORATION AND PRODUCTION SEPLAT PETROLEUM DEVELOPMENT COMPANY PLC 247,146.72 420.00 - 6 104 6 104 6 104 2,406 271,808,409 REAL ESTATE INVESTMENT TRUSTS (REITS) SFS REAL ESTATE INVESTMENT TRUST 1,386.00 69.30 - 1 650 UNION HOMES REAL ESTATE INVESTMENT TRUST (REIT) 10,163.30 40.65 - 0 0 UPDC REAL ESTATE INVESTMENT TRUST 10,139.42 3.80 - 0 0 1 650 1 650 OTHER FINANCIAL INSTITUTIONS NIGERIA ENERYGY SECTOR FUND 411.91 552.20 - 0 0 VALUEALLIANCE VALUE FUND 3,692.74 115.05 - 0 0 0 0 0 0 1 650 CROP PRODUCTION FTN COCOA PROCESSORS PLC 572.00 0.26 - 0 0 OKOMU OIL PALM PLC. 76,312.80 80.00 - 17 53,078 PRESCO PLC 65,900.00 65.90 8.93 49 587,097 66 640,175 FISHING/HUNTING/TRAPPING ELLAH LAKES PLC. 8,500.00 4.25 - 0 0 0 0 LIVESTOCK/ANIMAL SPECIALTIES LIVESTOCK FEEDS PLC. 1,890.00 0.63 - 17 479,299 17 479,299 83 1,119,474 DIVERSIFIED INDUSTRIES JOHN HOLT PLC. 217.92 0.56 - 2 3,000 1,903.99 2.93 - 0 0 S C O A NIG. PLC. TRANSNATIONAL CORPORATION OF NIGERIA PLC 24,795.27 0.61 -1.61 82 27,231,285 U A C N PLC. 19,880.95 6.90 -0.72 53 1,223,198 137 28,457,483 137 28,457,483 BUILDING CONSTRUCTION ARBICO PLC. 152.96 1.03 - 0 0 0 0 INFRASTRUCTURE/HEAVY CONSTRUCTION JULIUS BERGER NIG. PLC. 26,928.00 17.00 1.19 41 652,714 165.00 6.60 - 0 0 ROADS NIG PLC. 41 652,714 REAL ESTATE DEVELOPMENT UACN PROPERTY DEVELOPMENT COMPANY PLC 14,847.98 0.80 -1.23 19 967,077 19 967,077 60 1,619,791 AUTOMOBILES/AUTO PARTS DN TYRE & RUBBER PLC 954.53 0.20 - 0 0 0 0 BEVERAGES--BREWERS/DISTILLERS CHAMPION BREW. PLC. 6,968.25 0.89 - 2 100,000 GOLDEN GUINEA BREW. PLC. 829.98 0.81 - 0 0 GUINNESS NIG PLC 36,907.95 16.85 5.31 157 2,432,807 INTERNATIONAL BREWERIES PLC. 143,174.83 5.33 9.90 98 2,467,316 NIGERIAN BREW. PLC. 393,447.58 49.20 - 71 568,709 328 5,568,832 FOOD PRODUCTS DANGOTE SUGAR REFINERY PLC 167,626.92 13.80 1.10 107 2,179,920 FLOUR MILLS NIG. PLC. 88,773.22 21.65 2.61 83 2,221,982 HONEYWELL FLOUR MILL PLC 7,692.29 0.97 1.04 38 1,413,464 MULTI-TREX INTEGRATED FOODS PLC 1,340.10 0.36 - 0 0 N NIG. FLOUR MILLS PLC. 828.63 4.65 - 1 80 NASCON ALLIED INDUSTRIES PLC 34,442.70 13.00 7.44 48 1,268,119 UNION DICON SALT PLC. 2,993.06 10.95 - 0 0 277 7,083,565 FOOD PRODUCTS--DIVERSIFIED CADBURY NIGERIA PLC. 15,119.53 8.05 9.52 52 520,066 NESTLE NIGERIA PLC. 931,371.10 1,175.00 - 12 4,812 64 524,878 HOUSEHOLD DURABLES NIGERIAN ENAMELWARE PLC. 1,680.31 22.10 - 3 52 VITAFOAM NIG PLC. 7,630.15 6.10 - 45 1,392,331 48 1,392,383 PERSONAL/HOUSEHOLD PRODUCTS P Z CUSSONS NIGERIA PLC. 17,470.10 4.40 2.33 47 937,761 UNILEVER NIGERIA PLC. 77,557.57 13.50 - 90 819,786 137 1,757,547 854 16,327,205 BANKING ECOBANK TRANSNATIONAL INCORPORATED 83,490.46 4.55 5.81 73 4,732,620 FIDELITY BANK PLC 60,267.58 2.08 2.97 181 34,567,069 GUARANTY TRUST BANK PLC. 893,236.29 30.35 2.88 339 21,593,608 JAIZ BANK PLC 17,089.26 0.58 -1.72 23 1,668,528 STERLING BANK PLC. 39,730.78 1.38 -1.43 114 3,822,029 UNION BANK NIG.PLC. 144,147.73 4.95 -1.00 69 6,241,798 UNITY BANK PLC 6,662.92 0.57 - 9 689,881 WEMA BANK PLC. 22,758.93 0.59 7.27 44 6,508,833 852 79,824,366 INSURANCE CARRIERS, BROKERS AND SERVICES AFRICAN ALLIANCE INSURANCE PLC 4,117.00 0.20 - 2 4,000,000 AIICO INSURANCE PLC. 11,420.85 0.84 3.70 36 2,424,730 AXAMANSARD INSURANCE PLC 19,215.00 1.83 - 7 166,900 CONSOLIDATED HALLMARK INSURANCE PLC 3,639.53 0.34 -8.11 4 580,500 CORNERSTONE INSURANCE PLC 11,444.83 0.63 - 16 465,413 GOLDLINK INSURANCE PLC 909.99 0.20 - 0 0 GUINEA INSURANCE PLC. 1,228.00 0.20 - 0 0 INTERNATIONAL ENERGY INSURANCE PLC 487.95 0.38 - 0 0 LASACO ASSURANCE PLC. 2,050.56 0.28 - 10 1,191,415 LAW UNION AND ROCK INS. PLC. 4,725.96 1.10 - 0 0 LINKAGE ASSURANCE PLC 4,400.00 0.44 - 1 2,500 MUTUAL BENEFITS ASSURANCE PLC. 2,346.27 0.21 -4.76 14 5,547,000 NEM INSURANCE PLC 10,561.01 2.00 - 15 336,265 NIGER INSURANCE PLC 1,547.90 0.20 - 0 0 PRESTIGE ASSURANCE PLC 3,816.72 0.60 - 1 1,200 REGENCY ASSURANCE PLC 1,600.50 0.24 -4.17 5 1,400,000 SOVEREIGN TRUST INSURANCE PLC 2,272.89 0.20 - 1 125,000 STACO INSURANCE PLC 4,483.72 0.48 - 0 0 STANDARD ALLIANCE INSURANCE PLC. 2,582.21 0.20 - 0 0 2,800.00 0.20 - 14 3,886,927 SUNU ASSURANCES NIGERIA PLC. UNIC DIVERSIFIED HOLDINGS PLC. 516.46 0.20 - 0 0 UNIVERSAL INSURANCE PLC 3,200.00 0.20 - 2 3,126,583 VERITAS KAPITAL ASSURANCE PLC 2,773.33 0.20 - 1 6,000 WAPIC INSURANCE PLC 9,356.76 0.39 5.41 17 599,695 146 23,860,128 MICRO-FINANCE BANKS NPF MICROFINANCE BANK PLC 3,201.29 1.40 2.19 16 905,190 16 905,190

www.businessday.ng

MORTGAGE CARRIERS, BROKERS AND SERVICES ABBEY MORTGAGE BANK PLC 6,784.62 1.05 - 0 0 ASO SAVINGS AND LOANS PLC 7,370.87 0.50 - 0 0 INFINITY TRUST MORTGAGE BANK PLC 5,671.82 1.36 - 0 0 2,265.95 0.20 - 0 0 RESORT SAVINGS & LOANS PLC UNION HOMES SAVINGS AND LOANS PLC. 2,949.22 3.02 - 0 0 0 0 OTHER FINANCIAL INSTITUTIONS AFRICA PRUDENTIAL PLC 11,080.00 5.54 - 60 445,629 29,409.32 5.00 - 10 109,422 CUSTODIAN INVESTMENT PLC DEAP CAPITAL MANAGEMENT & TRUST PLC 405.00 0.27 - 0 0 46,536.37 2.35 3.98 99 11,508,728 FCMB GROUP PLC. ROYAL EXCHANGE PLC. 1,286.34 0.25 -8.00 19 12,969,819 STANBIC IBTC HOLDINGS PLC 477,557.90 43.00 1.18 21 753,113 UNITED CAPITAL PLC 21,780.00 3.63 3.71 98 3,700,475 307 29,487,186 1,321 134,076,870 HEALTHCARE PROVIDERS EKOCORP PLC. 2,991.61 6.00 - 0 0 923.82 0.26 - 7 415,399 UNION DIAGNOSTIC & CLINICAL SERVICES PLC 7 415,399 MEDICAL SUPPLIES MORISON INDUSTRIES PLC. 593.50 0.60 - 1 18,825 1 18,825 PHARMACEUTICALS EVANS MEDICAL PLC. 366.17 0.50 - 0 0 7,302.26 3.50 -1.69 37 815,417 FIDSON HEALTHCARE PLC GLAXO SMITHKLINE CONSUMER NIG. PLC. 6,696.91 5.60 4.46 64 2,522,469 MAY & BAKER NIGERIA PLC. 5,607.01 3.25 7.97 37 441,132 3,513.44 1.85 - 2 2,850 NEIMETH INTERNATIONAL PHARMACEUTICALS PLC NIGERIA-GERMAN CHEMICALS PLC. 556.71 3.62 - 0 0 325.23 1.50 - 0 0 PHARMA-DEKO PLC. 140 3,781,868 148 4,216,092 COMPUTER BASED SYSTEMS COURTEVILLE BUSINESS SOLUTIONS PLC 710.40 0.20 - 2 6,000 2 6,000 COMPUTERS AND PERIPHERALS OMATEK VENTURES PLC 764.87 0.26 - 0 0 0 0 IT SERVICES CWG PLC 6,413.06 2.54 - 0 0 NCR (NIGERIA) PLC. 216.00 2.00 - 0 0 TRIPPLE GEE AND COMPANY PLC. 178.18 0.36 - 0 0 0 0 PROCESSING SYSTEMS CHAMS PLC 939.21 0.20 -4.76 7 293,173 E-TRANZACT INTERNATIONAL PLC 7,266.00 1.73 -9.42 5 134,000 12 427,173 TELECOMMUNICATIONS SERVICES AIRTEL AFRICA PLC 1,541,593.75 410.20 - 7 16,190 7 16,190 21 449,363 BUILDING MATERIALS BERGER PAINTS PLC 1,941.82 6.70 - 4 1,763 BUA CEMENT PLC 1,385,052.08 40.90 - 18 26,144 CAP PLC 13,090.00 18.70 - 26 384,304 MEYER PLC. 265.62 0.50 - 0 0 PORTLAND PAINTS & PRODUCTS NIGERIA PLC 1,586.83 2.00 - 0 0 1,156.20 9.40 - 0 0 PREMIER PAINTS PLC. 48 412,211 ELECTRONIC AND ELECTRICAL PRODUCTS AUSTIN LAZ & COMPANY PLC 2,192.12 2.03 - 1 50 CUTIX PLC. 2,853.34 1.62 -10.00 58 2,029,710 59 2,029,760 PACKAGING/CONTAINERS BETA GLASS PLC. 27,698.45 55.40 - 11 8,555 GREIF NIGERIA PLC 388.02 9.10 - 0 0 11 8,555 AGRO-ALLIED & CHEMICALS NOTORE CHEMICAL IND PLC 100,754.14 62.50 - 0 0 0 0 118 2,450,526 CHEMICALS B.O.C. GASES PLC. 1,769.04 4.25 - 7 16,030 7 16,030 METALS ALUMINIUM EXTRUSION IND. PLC. 1,781.64 8.10 - 0 0 0 0 MINING SERVICES MULTIVERSE MINING AND EXPLORATION PLC 852.39 0.20 - 0 0 0 0 PAPER/FOREST PRODUCTS THOMAS WYATT NIG. PLC. 77.00 0.35 - 0 0 0 0 7 16,030 ENERGY EQUIPMENT AND SERVICES JAPAUL OIL & MARITIME SERVICES PLC 1,252.54 0.20 5.00 15 12,480,721 15 12,480,721 INTEGRATED OIL AND GAS SERVICES OANDO PLC 28,592.25 2.30 0.88 75 9,795,752 75 9,795,752 PETROLEUM AND PETROLEUM PRODUCTS DISTRIBUTORS 11 PLC 67,395.25 186.90 - 31 10,760 ARDOVA PLC 15,629.77 12.00 - 38 300,479 CONOIL PLC 9,992.91 14.40 - 18 16,157 ETERNA PLC. 6,390.31 4.90 -7.37 139 2,668,737 MRS OIL NIGERIA PLC. 3,794.59 12.45 - 11 34,471 TOTAL NIGERIA PLC. 38,094.35 112.20 10.00 34 135,192 271 3,165,796 361 25,442,269 ADVERTISING AFROMEDIA PLC 887.81 0.20 - 0 0 0 0 AIRLINES MEDVIEW AIRLINE PLC 15,796.05 1.62 - 0 0 0 0 AUTOMOBILE/AUTO PART RETAILERS R T BRISCOE PLC. 235.27 0.20 - 0 0 0 0 COURIER/FREIGHT/DELIVERY RED STAR EXPRESS PLC 3,010.64 3.25 -1.52 33 749,488 TRANS-NATIONWIDE EXPRESS PLC. 431.34 0.92 - 1 6,600 34 756,088 HOSPITALITY TANTALIZERS PLC 642.33 0.20 - 0 0 0 0 HOTELS/LODGING CAPITAL HOTEL PLC 3,748.05 2.42 - 0 0 IKEJA HOTEL PLC 2,099.58 1.01 - 1 400 TOURIST COMPANY OF NIGERIA PLC. 7,076.28 3.15 - 0 0 30,401.62 4.00 - 0 0 TRANSCORP HOTELS PLC 1 400 MEDIA/ENTERTAINMENT DAAR COMMUNICATIONS PLC 3,600.00 0.30 - 0 0 0 0 PRINTING/PUBLISHING ACADEMY PRESS PLC. 175.39 0.29 - 2 18,999 LEARN AFRICA PLC 848.60 1.10 - 3 10,600 STUDIO PRESS (NIG) PLC. 1,064.85 1.79 - 0 0 UNIVERSITY PRESS PLC. 534.95 1.24 - 0 0 5 29,599 ROAD TRANSPORTATION ASSOCIATED BUS COMPANY PLC 497.31 0.30 - 3 6,195 3 6,195 SPECIALTY INTERLINKED TECHNOLOGIES PLC 688.80 2.91 - 0 0 SECURE ELECTRONIC TECHNOLOGY PLC 1,126.31 0.20 - 0 0

https://www.facebook.com/businessdayng

@Businessdayng

Monday 19 October 2020

BUSINESS DAY

Live @ The Exchanges Market Statistics as at Friday 16 October 2020

Top Gainers/Losers as at Friday 16 October 2020 GAINERS Company

LOSERS Opening

Closing

Change

TOTAL

N102

N112.2

10.2

PRESCO

N60.5

N65.9

5.4

N20

N21.55

1.55

NASCON

N12.1

N13

0.9

GUARANTY

N29.5

N30.35

0.85

ZENITHBANK

Company

Opening

Closing

Change

ETERNA

N5.29

N4.9

-0.39

ETRANZACT

N1.91

N1.73

-0.18

CUTIX

N1.8

N1.62

-0.18

FIDSON

N3.56

N3.5

-0.06

N4.95

-0.05

UBN

ASI (Points) DEALS (Numbers) VOLUME (Numbers) VALUE (N billion) MARKET CAP (N Trn)

28,659.45 5,652.00 489,111,123.00 4.720

Global market indicators FTSE 100 Index 5,919.58GBP +87.06+1.49%

Nikkei 225 23,410.63JPY -96.60-0.41%

S&P 500 Index 3,505.93USD +22.59+0.65%

Deutsche Boerse AG German Stock Index DAX 12,908.99EUR +205.24+1.62%

Generic 1st ‘DM’ Future 28,643.00USD +257.00+0.91%

14.979

Shanghai Stock Exchange Composite Index 3,336.36CNY +4.18+0.13%

Stocks gain over N120bn in trading week marred by protests

VPD Money digital bank app to eliminate transaction, FX costs

Iheanyi Nwachukwu

Modestus Anaesoronye

n a trading week marred by protests against police brutality, Nigeria’s stock investors still pocketed about N121billion gain. The week ended Friday October 16 turned positive following increased bargain on the last trading session despite record days of flat closes at the Nigerian Stock Exchange (NSE). The performance indicators of the stock market of Africa’s largest economy - All-Share Index (ASI) and Market Capitalisation - increased by 0.86percent to close the review week at 28,659.45 points and N14.979trillion from week open low of 28,415.31 points and N14.852trillion respectively. Most counters on the Bourse witnessed price corrections in the review week after previous rally pushed them to record highs. Amid this development, the re-

cent social protests across the country is also being closely watched by the stock investing public. The year-to-date (YtD) performance remained positive at +6.77 percent; while this month the stock market has yielded positive return of +6.79 percent. “The year 2020 has been one of the most eventful years for the global economy

and more specifically, the Nigerian economy. First, the outbreak of the COVID-19 pandemic brought the Nigerian economy to a halt as the government, like other government across the world, implemented strict lockdown measures to curb a further spread of the virus. “Accordingly, this negatively impacted the Nigerian equities market as compa-

nies were forced to quickly readjust to the new realities. Notably, the exchange which had started out as the best performing equities market in the world at the beginning of the year, quickly sank into bear territory, reaching an historic low at the peak of lockdowns”, Lagos-based analysts at United Capital said in their October 14 note .

Ardova engages capital market stakeholders during Facts Behind the Figures presentation Iheanyi Nwachukwu

rdova Plc has joined the league of companies that have leveraged the Nigerian Stock Exchange’s (NSE) Facts Behind the Figured (FBF) platform to engage with capital market stakeholders. The virtual FBF which held on Thursday October, 15 saw the management of Ardova Plc present its financial performance, strategic and operational developments, and future plans to the capital market community. Speaking at the virtual event, the Divisional Head, Listings Business, Olumide Bolumole, stated, “Given that the market is driven by timely, relevant and accurate information, we commend the Board and Man-

agement of Ardova Plc for interacting with the market through this forum. The Exchange also recognises efforts made by the Board and Management of Ardova Plc towards achieving business continuity by improving its operations. We are pleased that the successful rebranding and efforts towards repositioning the organisation continue to boost investor confidence in the company. At The Exchange, we will continue to position ourselves as the African Exchange of choice for issuers and investors by strengthening the corporate governance of our listed companies through forums such as this.” On his part, the Chief Executive Officer, Ardova Plc, Olumide Adeosun expressed that Ardova Plc is moving from being an oil www.businessday.ng

company to becoming an integrated energy company in its efforts to broaden its value proposition to the market. He further stated, “In line with our vision of being the most reputable African energy solution brand, committed to driving the continent’s growth, we will leverage innovative technology and commit strongly to delivering superior customer experience. In the second half of 2020, our focus will be on: operational efficiency, building superior customer experience, innovation, and partnerships.” Presenting the financial highlights, Executive Director, Finance and Risk Management, Ardova Plc, Moshood Olajide stated, “Gross margin grew significantly in the second quarter to 7.3percent in Q2:2020 from 5.4percent in Q1:2020 and

https://www.facebook.com/businessdayng

from 6.3percent in the corresponding period in 2019. This sterling performance in gross margins reflects our resolve to maximise our core earnings and minimize cost. Shareholders’ funds also grew by 5.8percent year to date (YtD) to N17.5 billion in H1:2020 (N18.6 billion FY:2018) as a result of an 11.5percent growth in retained earnings. Our gearing ratio also improved to 37.8percent in H1:2020 compared to 88.6percent while our earnings generating capacity remained sufficient to cover existing debt/ borrowing with normalised interest cover printing at 4.3x in H1:2020 relative to 0.7x in H1:2019.” Following the presentations and an engagement session with participants, Adeosun was honoured with a digital Closing Gong ceremony

new digital bank app, VPD Money that will eliminate banking and foreign exchange transactions costs and allow for accelerated local and international trade has been launched. Michael Femi Simeon, the chief executive officer of VPD.Money, the boldest fintech company in Africa, said VPD.Money -formerly called VoguePayDigital- is the first African digital banking app that enable its users to have multi-currency wallet linked to their card experience. He said that the platform would not only improve user experience but also reduce the cost of transactions for individuals and businesses. VPD.Money would eliminate the problem and costs associated with having multiply currency cards through a single combined solution. According to him, VPD.

Money was developed to enable African small and medium enterprises (SMEs) and individuals to transact easily within Africa and globally. Presently, only 15 per cent of Intra-African trade is taking place and VPD.Money is determined to maximise the African trade potential. He noted that VPD.Money rewards it users with discounts in form of cash backs. “Users of the platform have access to pay for cable TV subscriptions, electricity bills, events, cinema bookings and access to food vendors. “Users receive cash back on most of the embedded services within the app. The spirit is to help users save on ‘save as you spend’ basis. This is especially crucial in the Covid-19 era.” With VPD.Money, he confirmed that the aim is to reduce transaction costs by 80 per cent and offer support tools for businesses through a pending ‘Business Account’ feature.

Onyema, Sakidu headline 2nd edition of United Capital Pan-African E-Conference

oming on the heels of the successful conclusion of the maiden edition of its Pan-African E-Conference, Investment and Financial services conglomerate, United Capital Plc, is set to host the 2nd edition of its conference on Friday, October 23, 2020, titled ‘Unravelling Investment Opportunities in Africa: The Role of Regulation & Technology’. The panel session which will be held via video conferencing platform, Zoom, and streamed live on the company’s YouTube channel will be headlined by Chief Executive Officer of The Nigerian Stock Exchange, Oscar .N. Onyema, Executive Secretary/CEO Nigerian Investment Promotion Commission (NIPC), Yewande Sadiku and other crème of the crop professionals such as Chief Investment Officer, Heirs Holdings Limited, Sam Nwanze and Founder, AZA, Elizabeth Rossiello. Speaking to the relevance of the event, Group CEO, United Capital Plc, Peter

@Businessdayng

Ashade , said “As Africans, first and foremost, we have a collective duty to the continent to ensure that it upsurges from the confinement of underdevelopment. As an industry leader, we are resolute in our commitment to exploring innovative countercyclical opportunities that will accelerate economic growth across Africa. This e-conference is a convergence of investment and financial specialists who will provide relevant insights on investment trends and opportunities available”. With our maiden edition attracting over a thousand attendees, we can guarantee that this session which will be an extensive dialogue on the role of regulation and technology in enabling capital flows across Africa, stimulating investment opportunities, and driving growth across the continent.” he said. The e-conference will be available via Zoom and YouTube, and would be moderated by the MD/CEO United Capital Asset Management Odiri Oginni.

Monday 19 October 2020

BUSINESS DAY

This is MONEY

• Savings • Travel • Debt & Borrowing

A guide to your Personal Finance

• Utilities • Managing your Tax

Financial tips for our youth

quires time, effort, drive, ambition, a burning desire, and a belief in yourself that you can learn, grow, and transform your life. Personal development requires daily action. Make some time everyday, even just for 30 minutes a day to add value to your life. Read something of value, listen to something new, exercise, or just take a step back, and reflect on the lessons that life is teaching you. The world is facing huge problems of youth unemployment, which are unlikely to be resolved even in the medium term. The finest degree is no guar-

‘

Things happen and it is always important to be able to be prepared for unexpected events and emergencies without having to beg or borrow

www.businessday.ng

‘

ne of most important life skills you need throughout your life is financial knowledge. Unfortunately, personal finance is not in the school curriculum. This leaves many young adults without any knowledge about how best to manage money or stay out of debt. Here are some few tips to set you well on the path to financial security. Have a plan Few good things happen by accident. Your future is not something that just happens; it is something that you can help to create. If you let life just happen to you, you will end up with whatever comes your way. By having a plan, and being focused, you have a better chance of achieving your goals. Write down your short, medium and long-term goals. Create a budget The concept of budgeting is often seen as boring but it really is a most effective way of keeping track of your expenses. A budget helps you see exactly where your money is going. Start by adding up the essentials, transportation, food and other important expenses. There is the tendency to eat out often, pick up take away meals, or to overspend on clothes and a lifestyle that you perhaps cannot afford just yet. This is the time to commit to save and invest for the future. The key is to live below your means and spend less than you earn. Keep your debt under control Use debt cautiously. It is better to borrow for things that have lasting value such as your personal development and education, or to buy property, rather than for clothes, gadgets and your lifestyle. If you are in debt, focus on paying off or at least reducing the debt with the highest interest first. Building a solid credit history from your youth is

important. Your employer, family and friends might lend you money from time to time. Be meticulous with repayment and don’t abuse this trust. It could be very important when you need to borrow more significantly for your business or other needs in the future. Borrowing is about character and credibility. Don’t abuse the privilege. Start saving now Things happen and it is always important to be able to be prepared for unexpected events and emergencies without having to beg or borrow. Job loss or other emergencies come out of the blue; ideally you should try to accumulate up to 6 months worth of your living expenses set aside in an easily accessible account. Don’t wait until you earn “enough” before you start to save. It will never be enough; no matter how little you earn, save something; just get started, little by little. Even the smallest amounts add up over time. If you are consistent and disciplined, you will be surprised at how quickly the funds build up. If you earn regular income, automating your savings via a direct debit will make it easier for you to save. The mantra “pay yourself first” involves treating savings as part of your non-negotiable monthly “expenses” that must be considered before any other expense. Set a realistic savings goal and start to save at least 10 - 20 percent of your income in a money market account or mutual fund. Only a few of you are lucky enough to have parents that give you an allowance. Most are not so lucky. This means that you must look for ways to create income in order for you to save from monetizing your gifts and talents. Invest in yourself Each of you has Godgiven talents, and unique abilities. Identify your talents and skills and maximize them. True greatness often comes from developing a natural gift, from pursuing a specific dream, talent or goal. If you organize your life around your passion, it is quite extraordinary what you can achieve; but be practical. You are your greatest asset. Invest in yourself. Personal development re-

anty for a job. Even whilst still in school or university, equip yourself with work experience and internships. Get some work experience under your belt. Even after your formal education, continue to learn constantly by attending seminars and webinars, and read widely. Invest for the future Your savings won’t be enough to meet your goals. To meet long-term goals, you need to invest. Start by saving regularly and then slowly build an investment portfolio of stocks, bonds, property etc. Mutual funds are an ideal place to start as they offer diversification and are professionally managed. The entry point for mutual funds is as low as N5,000 making it a good place to start. There is a magic that results from investing young. It is the surest way to long-term financial security. Make an effort to learn about saving and investing. There is a plethora of information in the media, books, magazines, newspapers, seminars and the internet that will help guide you as you make financial decisions. Seek professional advice so that your own unique situation can be carefully considered and appropriate investment choices can be made for you. Protect your wealth To be sure that all the assets that you have built are protected, include insurance in your financial plan - your car, your personal effects, your health and your life. Don’t wait for something to happen

https://www.facebook.com/businessdayng

and then wish you were insured. Health is wealth As we all know the COVID-19 pandemic has changed all our lives. Don’t allow a sense a fatigue and complacency to build. The virus is still here, so continue to follow the protocols meticulously. Wear your mask, wash your hands frequently, use a sanitizer, keep your social distance, and avoid crowds. Beyond COVID-19, society the world over is riddled with negative influences that are right there in your face. Protect your physical and mental health. Give your body its best chance with the right diet, exercise, and rest. If you feel overwhelmed, don’t shy away from speaking up. Depression and suicide are real. Choose your relationships carefully The adage “you are the average of the 5 people you spend the most time with” speaks for itself. Surround yourself with decent, positive, hardworking people who have a strong, moral and spiritual compass and foundation, so that you can encourage and support one another and add value to each other’s lives. As you expect to build great lifelong friendships, it is also important to be the good, reliable friend that you wish to have. Find a mentor that can guide you, support you and be a useful listening ear as you follow your path. A well-selected mentorship relationship is one of the keys to sustained @Businessdayng

success. The choice of your life partner The decision to marry will be one of the most important decisions you ever make. You must strive to partner with someone who supports you and encourages you to be your best version of yourself. The impact of the right or wrong choices are far reaching and has significant implications on whether or not you attain your full potential. Make an impact How you impact the lives of others is the greatest yardstick of success. Use your gifts to make a difference in other peoples’ lives. Measure success not by what you get or how much you have, but by what you can give. By deciding to make a difference in someone’s life, you can bring so much more meaning, value and fulfillment to your own. You have a unique opportunity from where you stand to make a difference through integrity, honesty, hard work, discipline and the pursuit of excellence. Be focused in that pursuit of excellence. There are no short cuts, but there are also no limits to your potential other than those that you may be setting yourself.

Instagram and Twitter: @ mmwithnimi, Facebook and Google+: ‘Money Matters with Nimi’. www. moneymatterswithnimi. com, or send us an email info@ moneymatterswithnimi. com Nimi Akinkugbe has extensive experience in private wealth management. She seeks to empower people regarding their finances and offers frank, practical insights to create a greater awareness and understanding of personal finance. For more personal finance tips, contact Nimi: Email: info@ moneymatterswithnimi Website: www. moneymatterswithnimi. com Twitter: @MMWITHNIMI Instagram: @ MMWITHNIMI Facebook: MoneyMatterswithNimi

Monday 19 October 2020

BUSINESS DAY

abujacitybusiness Comprehensive coverage of Nation’s capital

FCTA flags-off 404 mass housing units Military destroys terrorists’ hideDozie Emmanuel, Abuja

inister of t h e Fe d eral Capital Territory, Muhammad Bello has flagged off the construction of over 404 mass housing units, in Abuja Metropolitan Council (AMMC) estate, Wasa area of the territory. At the groundbreaking ceremony, Bello assured that the administration would support the project in terms of infra-

structure development. He said the initiative was in line with President Muhammadu Buhari’s agenda to abridged the housing deficit in the country. “We will also support other corporative if they are ready and willing also to provide housing, because with the total staff strength of over twenty-seven thousand in the FCT, you will agree with me that so many of our compatriots will desire to have their own houses. “And this is in line with President Muhammadu

Buhari’s agenda in trying to provide houses so that the housing deficit in the country will be bridged,” Muhammed stated. The Minister commended the participants over their committment and speedy commencement of the project. Earlier in his opening remarks, the president of the corporative, Mohammed Hamisu, appealed to the FCT administration to come in fully in the provision of infrastructure to the site. “We are not oblivious of

the budgetary constraints in the national economy. However, it is worthy to state that the AMMC staff corporative housing project is a direct response to the call for cooperative and public partnership in the provision of staffs cooperative and public partnership in the provision of staff housing accommodation in the FCT,” Hamisu stressed. The land space is estimated at about 4.2 hectares, comprising of 224 units of one bedroom, two bedroom blocks of 112 flates and 68 three bedroom terraces.

L-R: Mike Omotosho, president, Hepatitis Zero, with Ummi El’ Rufai, wife of the Kaduna State governor, during the Induction of Her Excellency as Global Hepatitis Zero Ambassador in Abuja. Picture by Tunde Adeniyi

Abuja Chamber partners Western Atlantic on auto trade fair James Kwen, Abuja

he Abuja Chamber of Commerce and Industry (ACCI) has expressed readiness to partner with the Western Atlantic Corporation on Abuja Auto trade fair to meet the auto mobile needs of Nigerians. The Director General of ACCI, Victoria Akai who disclosed this in Abuja said that the Gallery Mobile Dealer Auction is created to bring succour to the activities and operation of the Auto Dealers within the Federal Capital (FCT) by providing the platform and enabling environment for their businesses to thrive exponentially. She explained that the Corona virus pandemic which affected all sphere of the nation’s economy also brought suffering and agonies on the Abuja Motor Dealers whose daily income

depend on the patronage of the vehicle buying public, adding that the Dealer Auction will enhance the liquidity of the Dealers through improved sales orchestrated by the Auction facility. “Many Auto Dealers have faced the problem of replacing the batteries or repair as the case may be. There was a serious cloud of uncertainty even as the opportunity to bring in new supplies of vehicles were totally closed due the pandemic. “The Abuja Chamber of Commerce and Industry in collaboration with Western Atlantic Corporation has come up with the first Auto Dealer Auction in Nigeria aimed at organising auto dealing in Abuja, by kick-starting and promoting the business of all the Auto Dealers within the FCT and Abuja”. “We are informing the entire populace of FCT that www.businessday.ng

henceforth, they do not have to wander around looking for the vehicle of their choice to buy anymore. Abuja Chamber of Commerce and Industry’s intervention through the Gallery Mobile Dealer Auction is providing them the opportunity to pick their vehicle of choice conveniently”, Akai said. On his part, Akinfolurin Ade, the Chief Executive Officer of Western Atlantic said with this initiative, more than 500 dealers within the FCT would bring as much as 3,000 vehicles to a 3-day monthly auction, hence no buyer will not find a vehicle of his or her choice. “The opportunity provided by the auction will take the frustration off the buyers who hitherto have to move from one dealer to the other within the FCT. The buyers can now purchase their desired vehicle without any hitch and with

peace of mind”, Ade said. He explained that the second stage of programme will commence from January 2021 with the Auto Online Auction to provide the opportunity for a virtual fair and expand the sales opportunity of dealers within the FCT as there will be buyers from all over country. On his part, Ajibola Adedoyin, National President of Association of Motor Dealers of Nigeria said the fair which is the first of its kind would provide buyers within the FCT with affordable cars. “We see this as a laudable initiative, that is why we have accepted to partner with the ACCI. We have plans of taking it to other parts of the country”. We have made efforts to ensure that all cars that will be sold on this platform will be custom duty certified”, he assured.

https://www.facebook.com/businessdayng

outs, kill scores in Lake Chad Godsgift Onyedinefu, Abuja

he Air Task Force of Operation Lafiya Dole has killed several Islamic State of West Africa Province (ISWAP) elements and destroyed their hideouts at Tudun Wulgo and Tumbun Gini on the fringes of Lake Chad in Borno State. John Enenche, Coordinator of Defence Media Operations (DMO) who disclosed this in Abuja, said the feat was achieved after series of aerial surveillance missions indicated that the two locations were being used as staging areas where some ISWAP leaders and their fighters meet to plan and launch attacks. “Accordingly, the Air Task Force dispatched a force package of Nigerian Air Force (NAF) fighter jets and helicopter gunships to engage the two locations. The attack aircraft scored devastating hits in the target areas, destroying some structures and neutralizing several of the terrorists”, he said. Meanwhile, Enenche said the Military fostered several peace meetings amongst the various ethnic groups in Benue and Nasarawa States as part of it’s concerted Civil Military Cooperation (CMIC) activities which was carried out by the Headquarters of Operation Whirl Stroke. “Notably, peace and security meetings were held at Adaka in Makurdi Local

Government Area, Anguhwa and Jimba in Gwer West Local Government Area and Gbeji in Ukum Local Government Area of Benue State. The meetings were attended by various stakeholders in the area”, the Coordinator said. He added that the Headquarters also conducted a medical outreach at Internally Displaced Persons (IDPs) Camp at Anyin Community in Loko Town, Nasarawa Local Government Area of Nasarawa State. Enenche disclosed that several items including mosquito nets were distributed to the IDPs while they were reassured of their safety. “Troops also visited Umenger Community Primary School where items including exercise books, pencils, ball pens as well as refreshments were distributed to the students. “The medical outreach was also extended to Awe and Keana Local Government Areas of Nasarawa State. Teaching aids including books and pens were equally donated to the pupils at Tunga Central School in Awe Local Government Area of Nasarawa State, while items such as noodles, diapers, disinfectants, detergents and other toiletries were distributed to individuals at the Primary Healthcare Centre at Giza in Keana Local Government Area of Nasarawa”, the Army General said.

NGO trains female students gender base violence in Taraba Nathaniel Gbaoron, Jalingo

orried by the endemic cases of rape and other genderbased violence against women in the country, a nongovernmental organisation, Alheri Center for Women and Child Care Development (ACWCCD) organised a training for secondary school female students of Government Science Secondary School, Jalingo in Taraba State on how to curb violence against women. The training which was held to commemorate the international Day for girl child with the team ‘my voice our equal future, engaged the young women on incidences of genderbased violence and how they could be addressed. The Executive Director, ACWCCD, Eglah Ibrahim said the training was aimed at building their capacity to be able to fight @Businessdayng

against sexual and gender-based violence in the schools and also ensure that they to take leadership positions. “So today we are training them about the context of the problem to enable them know how they can participate and address the gender based violence in the school and how to make their voices heard and stop violence around them,” Ibrahim said. One of the Facilitators, Kerkebe Ibrahim said the objective of the project was to promote leadership among young girls and to strengthen their resilience against violence, as well as support changes in policies. “Sexual harassment or any form of violence against women should not be tolerated; so what we are doing today is to strengthen the voices of these young women to be able to have the courage to report abuse whenever it occurs,” she said.

Monday 19 October 2020

BUSINESS DAY

www.businessday.ng

https://www.facebook.com/businessdayng

@Businessdayng

Monday 19 October 2020

BUSINESS DAY

www.businessday.ng

https://www.facebook.com/businessdayng

@Businessdayng

Monday 19 October 2020

BUSINESS DAY

feature

At 2020 Youth Summit, NBC charts pathway to progress IFEOMA OKEKE

eptember 24, 2020 was not the global commemoration of the United Nations International Youth Day, which was August 12; neither was it the anniversary of the ‘Not Too Young to Rule’ bill sponsored by young Nigerians yearning to be involved in governance that fell on May 31. It was also not the international commemoration of the Commonwealth Youth Council which held on February 21. It was the 2020 edition of the Nigerian Bottling Company’s (NBC) Youth Summit, an initiative aimed at positioning Nigerian youths to take advantage of the opportunities available in the evolving global economy. Considering the high rate of youth unemployment in the country and the lack of clear direction on how they can achieve their life goals and support to do the same, the forum was timely. Secondquarter 2020 data from the National Bureau of Statistics (NBS) shows that youths account for 64 percent of unemployed Nigerians. The highest unemployment rate was recorded for those aged 15 – 24 years which was at 40.8 percent while ages 25 to 34 were at 30.7 percent. These statistics reveal a ticking time bomb which is capable of worsening the insecurity and poverty prevalent in the country. The need to avert a crisis that could ensue from the seeming neglect of this substantial segment of the Nigerian demography was what motivated the NBC to organise the summit during which a brand new initiative known as the Nigeria Business League for Youth was unveiled. The Nigeria Business League for Youth is a private sector initiative to remove obstacles impeding opportunities for youth in the country to succeed in their chosen career paths. Leading corporate players who warmly endorsed the initiative include Nigerian Bottling Company (NBC), Nigerian Breweries Plc, Cadbury Nigeria Plc, IBM, and VEROD Capital Management, among others. Charting a pathway to success for the hundreds of participants during the virtual summit, Sunday Dare, the keynote speaker and Minister of Youth and Sports Development, who spoke on ‘Strategic Roadmap for Youth Development Post-COVID-19’, charged youths in Nigeria to turn current challenges into opportunities for employment and productivity. Dare who also launched the Nigeria Business League for Youth disclosed that his ministry has started recalibrating its youth-oriented initiatives to ensure they deliver the skill sets and support that young people need to succeed now and post-COVID-19. He cited as an example the Ministry’s DEEL initiative - Digital skills acquisition, Entrepreneurship, Employability and Leadership, a programme aimed at mitigating against

youth unemployment through sustainable partnerships with ICT skills hubs, research development, Agric value-chain, sports talent management, and capital financing platforms. Dare asked privileged citizens to rally support for youth in Nigeria to ensure a swift and coordinated response, which goes beyond meeting immediate needs via palliatives. “Our youth are not a product but a resource to harness,” he added. In her contribution entitled ‘Nigerian Youth: Reskilling for Self and National Development’, Ibukun Awosika, chairman, First Bank of Nigeria, commended NBC for holding the summit despite the uncertainties of the pandemic. Awosika also made a case for vocational and entrepreneurial skills, noting that the era of relying on just academic knowledge was long gone. “We must equip and train our youth to have a mindset for business. The youth should also look at their role within an organisation through the eyes of a business owner. We should provide technical education, bring back the era of City & Guilds. We must plan to deliberately empower our youth, equip and train them to have a mindset for national development,” she said. Awosika also highlighted the importance of sustainable partnerships in empowering young people, stressing that: “It is not all about digital knowledge, it is about understanding the value-chain of businesses, harmonising skills, and strengthening partnership with passionate partners whose skills you don’t have but need to optimise business”. She called on stakeholders to help young Nigerians improve their knowledge, set up intervention funds as seed capital for start-ups and initiate a development plan to harness their ideas. In his presentation titled: ‘Powww.businessday.ng

sitioning Yourself for Personal and Career Growth’, Jimi Tewe, human capital and transformational coach, stressed the importance of knowledge in navigating the current challenging times. “If you need a job, you need usable and applicable knowledge post-COVID because in every crisis lies the seed of opportunities. All you need is to take one step forward. Decide not to be a listener but a doer; stay optimistic, be referable, ensure you add value to people, and provide proof of what you have created. This will make you thrive regardless,” Tewe said. Apart from the guest speakers, some young Nigerians shared their testimonials on the impact of Youth Empowered, an initiative by NBC which exemplifies the impact that can be made by the private sector. NBC’s Youth Empowered Programme launched in 2017 and since then, has reached over 18,000 youth with training to build important life and business skills, as well as helping them to develop long-lasting networks to support their transition to meaningful employment or start a business. Modupeoluwa Opoola, a fashion designer, who attended a Youth Empowered Programme in 2019 at Abeokuta, Ogun State disclosed that it helped her upscale her business. “My company has been strategically positioned to solve a problem in the society, and nothing is impossible for me now. We have empowered over 100 young adults and women across the state in adire making, revamping used clothes into more fashionable attire,” she said. Another beneficiary of the program, Kolawole Sholanke said he established a recycling business after attending the training in 2018. Today, he has employed six employees and has more than 10 volunteers. “I have sealed partnerships with the Oyo State Ministry of Environ-

https://www.facebook.com/businessdayng

ment and acquired three plots of land for plastic waste recovery and recycling plants. My business has grown,” he excitedly disclosed. It is the similar success story for Dayo Ibitoye, a development communication professional and media strategist. He recounts: “This training empowered me with skills, tools and network that shaped my media and communications career. Recently, I got a scholarship to study Communications and Story-telling at Harvard. Today, I work as a Media Communications & Brands Specialist. All of these would not have been possible without The Nigerian Bottling Company”. But the major highlight from the 2020 NBC Youth Summit had to be the endorsement of The Nigeria Business League for Youth by some of the most respected corporates in Nigeria. Affirming Nigerian Breweries support for the Nigeria Business League for Youth, Borrut Bel, the company’s chief executive officer, thanked NBC for the initiative and highlighted its interventions for uplifting Nigerian youths. “We are passionate about winning with Nigerians; winning with Nigerians means we understand that we are part of the society, and this society largely comprises youths. This is a serious commitment from our side as well, and we are happy to join this league,” he said. Also speaking, Oyeyimika Adeboye, the managing director of Cadbury Nigeria Plc, said it was time the private sector worked with the government to secure the future of Nigerian youths. “Our contribution from the private sector is to work with the government and to partner with the government to ensure that our youths are prepared for the future of Nigeria. So, our commitment as @Businessdayng

Cadbury Nigeria Plc is to work with various private sector enterprises to partner and help to develop our youths, and we do this in various ways.” Speaking in the same vein, Chigozie Ejimogu, who represented Danladi Verhijer, the managing director of Verod Capital, also affirmed the firm’s commitment to the Nigeria Business League for Youth while commending the initiative. “We know this is an investment in Nigeria’s future. So, we are honoured to be part of this investment today. We give our kudos to the visionaries behind it, and we will support solidly in any way we can. Building on what we are already doing, finding courage from what we have seen today, and having the motivation to expand our scope and do more for Nigerian youths.” Commenting on the coalition, Matthieu Seguin, managing director, NBC, said, “it is obvious that a consortium of efforts, network of private sector organizations will go a long way in addressing the issues youths face, in alignment with the National Youth Policy. “Together, we can do more and better and in partnership with relevant Ministries, Departments and Agencies of Government, we will empower the Nigerian youth to drive the 21st Century economy for Nigeria,” Seguin said. With its commendable action, the NBC has heeded the admonition of Franklin Roosevelt, the 32nd President of the United States of America, who said: “We cannot always build the future for our youth but, we can always build our youths for the future.” The company is strategically helping the youth to find their bearing in a rapidly globalising world and monetise their skills. It is also helping to bridge Nigeria’s youth unemployment while preparing them for a productive future.

Monday 19 October 2020

BUSINESS DAY

insight Kashifu Inuwa Abdullah in one year, has held the bull of Nigeria’s information technology development by the horns Bashir Ibrahim Hassan

he young man is only one year in office as the Director-General/ CEO of the National Information Technology Development Agency (NITDA), having assumed the position in August 2019, but he already has a long list of accomplishments for which he claims credit. “The first day I met with my staff as DG,” Mallam Kashifu Inuwa Abdullah recalls at a recent interview, “what I promised them was to make NITDA a smart organization.” There’s something about the young man that defines the track record of his career success so far: an unwavering commitment to vision-driven approach to tackling any task before him. At NITDA, the milestones that he achieved are due to his steady implementation of the 7 Pillars of the NITDA’s Strategic Roadmap 2017-2020, which are in sync with the 8 Pillars of the National Digital Economy Policy and Strategy (NDEPS), for achieving a digital Nigeria. Undoubtedly, the flagship of these achievements has been the implementation of IT Regulation in the sector. Within the period under review, the Agency has successfully implemented an automated IT Project Clearance (ITPC), which resulted in the creation of 272 user accounts, 154 cleared IT Projects of 73 MDAs, thus, saving the Nigerian Federal Government approximately 5 billion naira. Additionally, the leadership of the Director General has facilitated the implementation of the Nigeria Data Protection Regulation (NDPR), by creating the NDPR implementation framework and guideline for the management of personal data by public institutions. This has resulted in the creation of 2,686 job roles; 790 issues resolved; licensing of 59 Data Protection Compliance Organisations (DCPOs); launch of the NDPR portal for filing of audit report which has generated the sum of 12.6 million naira; inauguration of data breach investigation team in conjunction with the Inspector General of Police (IGP), where 15 data breach investigations were conducted. The initiative also gained international recognition, resulting into appointing NITDA as Vice Chair of the African Union Policy and Regulatory Initiative for Digital Africa (PRIDA). As a proactive measure towards the realisation of President Muhammadu Buhari’s digital transformation initiatives, NITDA has established a governance structure called Digital Transformation Techni-

cal Working Groups (DT-TWGs) across the first set of 124 Federal Public Institutions (FPIs). This is aimed at facilitating effective coordination of the implementation of the National Digital Economy Policy and Strategy (NDEPS), Nigeria e-Government Master Plan (NeGMP) and any digital transformation-related activities in the public sector. Furthermore, they are to ensure that all IT projects are designed and implemented in accordance with the provisions of the Nigerian Government Enterprise Architecture (NGEA) and the Nigeria e-Government Interoperability Framework (NeGIF). The Agency has also initiated an intensive capacity building for the DT-TWG members and hopes to building the capacity of about 500 members in this first set. In the critical area of human capacity development, NITDA has implemented an ambitious programme in Digital Literacy & Skills, setting up ICT Hubs as well as training and empowerment centres across all geopolitical zones of the federation. In these centres, women, youths, artisans, people with disabilities, farmers, students, corps members, intervention centres www.businessday.ng

managers etc. have been trained and provided with working tools. The Agency has also established the NITDA Academy for Research and Training (NART) to bridge the gap between industry and academia. The Academy’s Virtual Learning Platform, unveiled by the Honourable Minister of Communications and Digital Economy, Dr Isa Ali Ibrahim (Pantami) in April, has so far attracted 24,000 students by August, 2020. Interestingly, from August 2019 to August 2020, analysis of the various programmes of the Agency revealed that a total of 76,044 competencies have so far been developed. These have boosted employment, with beneficiaries of 7,117 jobs/new roles including start-ups, innovators, farmers, techpreneurs, etc. In the area of cybersecurity, series of sensitization and awareness programmes have been executed. These include stakeholder Consultative Forums, Workshops, Seminars etc., with a view to rebranding Nigeria’s image as well as fostering synergy among stakeholders in the fight against cybercrime. NITDA has also upgraded its Computer Emergency Readiness and Response Team (CERRT) to

https://www.facebook.com/businessdayng

effectively monitor cyber threats in the country. The NITDA CEO is on record as the first person to issue a fine for data breach in Nigeria’s history. To actualize the digital economy dream, NITDA has completed the construction of 4 IT Innovation & Incubation Parks in University of Port Harcourt, Abubakar Tafawa Balewa University (ATBU) Bauchi, Kogi State University, and Gombe State University; deployed 80 Digital Capacity Training Centres nationwide; deployed 4 Special Purpose Community IT Training Centres and distributed over 2,000 laptops to various tertiary institutions. The Agency also recently constructed and launched a new Digital Centre for Digital Nigeria, remodeled the NITDA building to a SMART building and rebranded its corporate image and operations. To boost its local content drive, the Agency has commenced the execution of Nigerian Software Strategy, in collaboration with the National Office for Technological Acquisition (NOTAP), while 64 software projects have been flagged by NITDA for patronage by Nigerian companies. As a response to the novel @Businessdayng

COVID-19 outbreak, NITDA constituted a Tech4Covid Committee that will explore measures to be employed in cushioning the economic effect of the Pandemic on startups, ICT-enabled SMEs and the technology ecosystem in general. The Committee, among others, came up with a plan to ensure the retention of about 100,000 ICT jobs as well as the creation of additional 30,000 jobs in the post-COVID-19 era. Who is Kashifu Inuwa Abdullahi? Born on February 21, 1980, he is a graduate of Computer Science from the prestigious Abubakar Tafawa Balewa University, Bauchi. A member of the Computer Society (NCS) and the British Computer Society (BCS), he is a Massachusetts Institute of Technology (MIT)-trained strategist with 15 years’ experience in IT operations, business transformation and solution architecture, across both private and public sectors. He attended Leadership and Management courses at Harvard University in the USA, University of Cambridge in the UK and IMD Business School in Switzerland. As the 1st Cisco Certified Internetwork Expert (CCIE) in Nigeria’s Public Sector, he is also a Certified Project Manager and Solution Architect. He also has many professional certifications in Networking, Telecommunications, Service Management and Solution Design. Before coming to NITDA, Mr Abdullahi worked for nine years (2004 – 2013) at Galaxy Backbone and held several positions such as Network Engineer, IP Network Field Engineer, Senior Network & Lead, IP Operations Team, and Senior Solution Architect & Lead, Technical Solution Design. In 2014, Mr Abdullahi joined Central Bank of Nigeria (CBN) as a Technology Architect, where he dedicated his time to developing Technology Architecture Repository that gives 360 view of the Bank’s IT Infrastructure and facilitated ease of decision making on new IT investment. He was part of the team that executed software license rationalization that has increased cost savings for the Bank in license annual subscriptions. Mr Abdullahi was a key resource in the development of IT standards for the apex bank, which has reduced mean time to deploy/integrate new system by over 20%. One of his major achievements as a Technology architect was the production of 7 Solution Architectures for critical IT initiatives that helped in achieving cashless society in Nigeria.

Hassan is the General Manager, Northern Operations for BusinessDay

Monday 19 October 2020

BUSINESS DAY

news How poor funding leads to rot, corruption... Continued from page 1

The Nigerian government has been on the global spotlight in the past few days as most youths and global entertainers have all called for an end to Police brutality in Africa’s most populous nation. The poorly funded NPF has deteriorated through the years, amid poor conditions of service and greed within the rank and file, which has resulted in poorly trained, illequipped personnel. Many believe that the dismal package of Nigeria’s police force contributes directly to the alarming rate of corruption in the security organisation and rampant attack on and extortion of civilians by personnel. “Almost all of Nigeria’s problems come back to paltry revenues,” Amaka Anku, Africa head for the consultancy, Eurasia Group, said. “This is why you need bolder action on tax administration and enforcement. A police recruit is paid about $22/month, and handed a gun! No reform you ever institute will change anything until you raise pay,” Anku said via her twitter handle. Other stakeholders have challenged the government on the need to put an eagle eye on the Nigerian Police Trust Fund to provide the needed funding for new people-oriented, refined and law-abiding police. “There is a Nigerian Police Trust Fund which board is chaired by former Inspector General of Police, Suleiman Abba. Everybody should now put their eyes on that money and question how it is being allocated,” Tosin Ojaomo, a legal practitioner, with deep knowledge of the police, said. The Nigerian Senate had passed the Nigeria Police Trust Fund Bill on April 9, 2019, and it was signed into law by President Buhari on July 2, 2019. “You can imagine what would be realised if we get these funds. We don’t need any funding from anywhere if we get these funds. That money can successfully fund the police if judiciously utilised for a certain number of years,” Ojaomo said. According to the Act, the fund would cover all personnel of the NPF, including its auxiliary staff in Nigeria and abroad. However, it would only operate for six years from the commencement of the Act and shall, at the expiration of that period, cease to exist unless it is extended for any further period by an Act of the National Assembly. “The Tertiary Education Trust Fund established some years ago has not improved Nigeria’s education sector, rather it has been going worse. What is the guarantee that Nigeria Police will improve,” Igbuan Okaisabor, vice chairman/CEO, Construction Kaiser Group, asked. The funds are expected “to among other things, provide funds for the training and retraining of the personnel of

the NPF, provide state-of-theart security equipment and machineries to improve the general welfare of the personnel of the force,” according to an explanatory memorandum of the Act seen by BusinessDay. An average Nigerian police constable earns between N108,233 and N613,363 annually, depending on his length of service and accommodation plan; a corporal’s pay is around N536,586 to N613,000 annually, while a Police inspector earns at least N1 million annually, according to the 2010 salary structure of the NPF. The above ranks in the force have become the poster boy of extra-judicial killings, police brutality and human rights abuses across the country. When the take-home pay of the Nigerian police is compared to peers - from Ghana to South Africa, it becomes clear that the Nigerian policeman does not earn salary but ‘survival stipend.’ An average police officer with a two-year experience in Ghana typically earns around 17,880 Ghanaian cedis ($3,077) annually. An Egyptian police officer with the same ranks earns around 34,080EGP ($2,170), while a South African police officer earns around 116,520 South African rand ($6,988). When converted to dollars, the Nigerian counterpart earns less than all three peers at around $1,598 (N613,000). For police officers with two to five years’ experience in Ghana, the take-home pay is typically around 23,880 Ghanaian cedis ($4,110) annually. The Egyptian police officer with the same ranks earns around 45,480EGP ($2,896), while South Africa’s police officer earns around 156,000 South African rand ($9,356). Their Nigerian counterpart earns around N1 million ($2,607). The average salary for a police officer in Canada is over $100,000 a year. An entry level constable will make $50,000 at the start and after 3 years of service it will jump to $82,000 a year. A corporal makes between $86,000 and $90,000, sergeant $95,000 – $98,000, Inspector $126,000, and superintendent $140,000. The median average salary for police and sheriff patrol officers in the United States is around $60,000. This amount varies depending on the state the police officer is employed in and level of experience. Some of the highest paying states are New York (average: $103,000 - entry level $62,000), California (average: $102,000 - entry level: $80,000), New Jersey (average: $100,000 -entry level $53,000). Some experts in the security sector have long condemned the abysmal pay of the Nigerian police, saying for the country to get the kind of police it deserves, the Federal Government must address the issue of poor salary for police officers and men without which, the morale of officers would continue to remain at its lowest ebb. www.businessday.ng

Timipre Sylva (r), minister of state petroleum resource, in a handshake with Leemon Ikpea, executive chairman, Lee Engineering Group, during a tour of the company’s fabrication plant in Warri, Delta State, weekend.

Rising food cost, border closure push... Continued from page 1

government to close the

border was the catalyst that spurred the consecutive rise in inflation from August/September last year,” Omotola Abimbola, a macroeconomist at Chapel Hill Denham, states. The Federal Government’s decision to shut land borders to trade with neighbouring countries was intended to stimulate local production but this move does not seems to yield much gain as consumer food prices have been on a steady rise one year after. In July 2019, just before the borders were shut, the inflation rate stood at 11.02 percent, the lowest in 39 months but the spike in prices began as soon as the borders were closed in August 2019. Although the Covid-19 pandemic might have increased the pressure on food prices, experts say the closure of the land borders has been a major trigger as Nigeria does not have enough production capacity to meet demand, therefore the gap is passed on to the consumers in the form of high prices. The challenge of production shortage has also been compounded by the insistent flood disaster in food producing states. “Security and flood issues in Northern Nigeria have also affected food prices through lower production and supply,” Abudulazeez Kuranga, an economist at Lagos-based Cordros, says. Recently, flood washed away at least 2 million tons of rice in Kebbi State, the country’s main rice-growing state. As such, planters who had a target to contribute a 2.5 million ton in 2020 are now 20 percent short.

Asides from Kebbi, farmers in Kano, Jigawa, Nasarawa and Enugu have also reported damages from flood. However, there have been other pressure points in the economy responsible for the consecutive rise in inflation rate for the year 2020. “The lack of foreign exchange (FX) liquidity, currency depreciation and reeling effects from Covid-19 have also contributed to rising inflation,” Abimbola says. The naira weakened against the dollar by 24.5 percent to N381 per dollar in September from N306 at the beginning of the year. The Central Bank of Nigeria (CBN) also got an order from the Federal Government to stop providing foreign exchange for food and fertilizer import to conserve scarce dollars and boost local productions. Manybusinessesandmanufacturers that rely heavily on dollars have had to turn to the parallel market to access dollars. “The cost of imported goods increased year-on-year as dollar restrictions negatively affected imports since importers had to purchase raw materials using the black market rather than the official exchange rate,” notes Kuranga. According to data from the NBS, the cost of imported food rose by 1.35 percent to N374 per 1000kg in September 2020 up from N369 in August 2020 and N321 per kg in September 2019. Abimbola also explained that other key factors that contributed to rising inflation were the effects of deregulating the downstream oil and gas sector, which led to higher prices of petroleum products, and the momentary increase in electricity tariffs that was later reversed, otherwise the increase in inflation would

Paper industry booms, but Nigeria not in... Continued from page 2

portunities in Southwestern Nigeria.’ “We need to fix the raw materials problem, and then develop collaborations with other countries that can provide raw materials to Nigeria,” he recommended. In 1970s to 1990s, Nigeria

had three paper mills, including the Nigeria Paper Mill (NPM) Limited located in Jebba, Kwara State; Nigerian Newsprint Manufacturing Company (NNMC) Limited, Oku-Iboku, Akwa Ibom State, and Nigerian National Paper Manufacturing Company (NNPMC) Limited in Iwopin,

https://www.facebook.com/businessdayng

have been worse than it is now. The Federal Government early September increased the pump price of petrol to N161.56 per litre, up from N148. What rising inflation means for Nigerians The heightened inflation rate means that more money is chasing fewer goods, and when coupled with other gloomy socioeconomic indicators such as poverty and unemployment, this further depletes Nigerians ability to purchase national commodities due to lower purchasing power. A dejected and frustrated Sarah, by the roadside, cursing and swearing on her way home. When asked what the problem was, she bitterly lamented about the crazy jump in food items. She first pointed out that she usually bought at most N700 vegetables to make a popular Nigerian delicacy called Afang soup for her family. However, her trip to the market went south as she ended up buying N2,000 worth of vegetables, a 186 percent price jump, which was not even enough to match up the former quantity usually purchased to feed her family. Sarah also recounted how the vegetable seller sadly explained that even she could not buy up to half of the portion usually purchased on a market day due to drastically higher cost. Vegetables were not the only things that had increased in price, as Sarah highlighted that products like bread, onions, bag of rice, maize, tomatoes, and fish had risen in prices and this escalating inflation level had affected other economic sectors including transportation. The current realities faced by Nigerians seem to also confirm the findings of Steve

Hanke, a professor of Applied Economics at Johns Hopkins University, United States, who re-estimated Nigeria’s August inflation to 31 percent. This ranked Nigeria as ninth out of 12 countries with the highest inflation rates in the world despite using purchasing power parity (PPP), the black-market exchange rate data and wider basket of goods and services. Outlook for Nigeria’s rising inflation The Federal Government plans to reopen the borders soon, although a definite date has not been set yet. Experts believe that in the coming months, we should probably expect food prices to gradually start coming down due to the harvest period that has commenced and the reopening of closed borders. “If Nigeria reopens her borders, it will help to offset the rising inflation record, which was jointly triggered by reduced local production and no imports.” Kuranga notes. “CBN has also tried to offer some palliatives by granting access to FX for sectors that deal with essential inputs, for instance, maize, and this counts for something in providing some sort of relief to rising inflation levels,” says Abimbola. “However, the core division could still remain under pressure as power tariffs might take off very shortly and another round of electricity tariff sometime in January next year, judging by the agreement between labour union and the Presidency, making inflation to remain relatively high. The first half of next year might still be considerably plagued by some level of inflation because of the low base effectfromthecurrentdowntimes and crisis being experienced in the Nigerian economy.

Ogun State. Only Iwopin is producing but at 10 to 20 percent capacity. Even if the firms are working at 100 percent capacity today, they can only provide 250,000 metric tons of paper needs as against demand of over 3 million metric tons. “Nigeria needs 50 smallscale paper mills now,” Oluwaseun Jegede, consultant on market assessment, said.

“The big problem investors see is raw materials, but kenaf is now available all over Nigeria,” he said. He noted that importation of papers costs Africa’s largest economy N182 billion annually, stressing that investors with $10 to $50 million should step up and tap opportunities in the paper industry, while government must step up with policies to drive the sub-sector.

@Businessdayng

Monday 19 October 2020

BUSINESS DAY

NEWS Shipping firms’ failure to export empty containers aggravates port congestion

Hope PSBank announces board appointments

…as empty containers create societal menace, fuel crimes within cities

ope PSBank, Nigeria’s premier digital-first bank and a subsidiary of Unified Payments, has announced key appointments for the bank. The board has approved the appointments of Shehu Abubakar as chairman and Ayotunde Kuponiyi as managing director. The list of directors includes Agada Apochi, Ochanya DanUgo, Festus Eze Ikediasor, Ano Anyanwu and Nana Fatima Mede, according to a press statement signed by Cletus Igah, head, Corporate Services, Hope PSBank. While Mede and Anyanwu are independent directors, Apochi, Ikediasor and Dan-Ugo are non-executive directors. Abubakar has over 30 years of experience in the banking industry during which time he held strategic positions in different banks. He worked at different times in International Merchant Bank, FSB International Bank, Fidelity Bank and Keystone Bank, where he retired as an executive director. Until he was appointed the managing director of Hope PSBank, Kuponiyi held various leadership roles in both the banking and telecoms industries where he was director, Telebanking, Globacom Nigeria, and the head of the Consumer Distribution Department in Ecobank Nigeria. At Ecobank Nigeria, he was the team lead of the Consumer Bank implementation which was an aspect of the upgrade project of the bank’s core banking application across 33 countries in Africa. At Globacom, he was responsible for launching the first Mobile Money Service, Glo TxtCash, in Nigeria, in partnership with UBA Plc and Stanbic IBTC Bank. Kuponiyi, who obtained academic degrees from Obafemi Awolowo University, Ile-Ife, and University of Liverpool, United Kingdom, has attended several courses and programmes both locally and abroad.

AMAKA ANAGOR-EWUZIE

ailure of international shipping companies doing business in Nigeria to retrieve their empty containers has been blamed for lingering congestion in port terminals and persistent traffic jam on roads leading in and out of ports in the country. Alarmingly, nearly all roads, streets, bridges and under bridges in Lagos, especially those that have connection with Apapa, which hosts Apapa and Tin-Can Island Seaports, have been turned into parks for container-carrying trucks. The most affected roads include Apapa-Oshodi Expressway (Cele to Mile 2 axis); Awodi Ora and Wilmer roads in Ajegunle; Kirikiri; LagosBadagry Expressway, Orile

Igamu; Second Rainbow down to Apple Junction; Ago Palace Way; Ikorodu road; Ijora; Eko Bridge and among others. Consequently, residents in areas like Amuwo-Odofin, Festac, Iyana-Oba, Satellite Town, Ajegunle, Apapa, Surulere and many other areas in Lagos are presently losing man-hour reaching their offices, markets and homes. Within the port terminals, there is about 90 percent yard occupancy, indicating high rate of congestion and longer dwell time for imports. This has also elongated waiting time of vessels as ships now spend between 30 to 50 days on Nigerian waters before accessing the ports. Jonathan Nicol, president, Shippers Association Lagos State, said terminal operators were responsible for receiving empty containers on behalf

of their principals - shipping companies, which are responsible for the export of empty boxes, but lamented that shipping firms were deliberately refusing to retrieve and export their empty containers. According to him, the refusal by these shipping companies to export empty containers has become a threat to the shipping trade in Nigeria, as it results to artificial port congestion, leaving little space for container with laden goods. This, he said, has brought untold hardship on shippers “because when there are scanty spaces left due to deliberate refusal to evacuate empty containers, shipping lines introduce congestion charges against the shippers.” Nicol further stated that there were over 65 percent of empty containers not fit for

evacuation in Nigeria, which is probably because most of the containers have outlived their usefulness and cannot be exported. “It is no longer news that importers have been accused of abandoning their investments in the ports and causing lack of space for imports because they refuse to clear their goods. This is not correct. We should be able to distinguish between space occupied by empty containers and space occupied by loaded containers. There are empty boxes littered in our ports and communities today,” he said. Nicol said that communities in the port cities were littered with empty containers, which is making life difficult for the residents as it continues to breed area boys, touts and fuel crimes across cities.

L-R: Yemisi Asagbra, acting director general, Federal Institute of Industrial Research, Oshodi (FIIRO); Lateef Sanni, project manager, International Institute of Tropical Agriculture (IITA); Banke Adeyanju, deputy director, FIIRO; Paul Gbededo, keynote speaker, and Oluwole Toye, national president, Nigerian Institute of Food Science and Technology (NIFST), during the 44th NIFST conference in Lagos.

NNPC GMD lauds Waltersmith on modular refinery project DIPO OLADEHINDE

roup managing director of Nigerian National Petroleum Corporation (NNPC), Mele Kyari, has lauded Waltersmith Petroman Oil Limited for completing its 5,000 barrels per day (bpd) modular refinery project located at Ibigwe, Imo State. The NNPC GMD, who was represented by Yusuf Usman, chief operating officer, Gas & Power, during a pre-commissioning visit to the plant, said the modular refinery, which is part Nigeria’s push towards energy sufficiency, reinforced the Federal Government’s agenda of increasing local refining capacity, enhancing value addition to the hydrocarbon resources and employment generation.

“It is a landmark achievement and it shows that we can actually refine our crude oil incountry,” he said. Kyari gave assurance that the NNPC as the industry regulator and key stakeholder would collaborate with relevant entities to provide Waltersmith with all the necessary support it needs to operate and achieve its growth plans for the refinery. “We will work closely with Waltersmith to ensure that it gets enough crude feedstock it needs to operate seamlessly. We are also looking forward to the phase 2 of the project when the refinery will start producing premium motor spirit (PMS) which we largely need in this country,” Kyari said. The 5,000bpd modular refinery is scheduled for official www.businessday.ng

commissioning on October 26, 2020, with products truck-out beginning immediately, having concluded off-take arrangements with select firms. “We will be producing 271 million litres of petroleum products to meet some of the requirement of South Eastern market,” Abdulrasaq Isah, chairman of Waltersmith Petroman Oil Limited, said. Isah said Waltersmith decided to embark on the modular refinery project as a strategy to address incessant pipeline vandalism and theft of its crude oil products. “As we began to work on the modular refinery project, we started to see the economic value and impact on Nigeria. The project will also ensure import substitution, energy security for

the nation, lower of the company’s operating cost and create lots of jobs,” Isah said. He outlined the company growth plans, “part of which is to significantly expand the refinery’s production capacity to 50,000 barrels of crude oil per day. “We have started with the first module which is 5,000 barrels. The next module will be 25,000 barrels. Then the finale module will be 20,000. On the impact of the project on its immediate host community, Chikezie Nwosu, managing director/chief executive of Waltersmith, said during the construction stage, the project created multiples of jobs and this would be expanded when into full operation after commissioning.

https://www.facebook.com/businessdayng

…Abubakar as board chairman, Kuponiyi as MD

Sheu Abubakar

Ayotunde Kuponiyi

Currently, he serves as the chairman of the Mobile Payment Scheme Board, having been appointed by the Central Bank of Nigeria in recognition of his role in advancing and strengthening alternative payment platforms in the country. He is a member of major industry boards among which are Payment Systems Strategy Board and the Payment Infrastructure Coordinating Committee in Nigeria. He is also a member of the Governing Board of the Committee of e-Banking Industry Heads (CeBIH). He is expected to bring to bear his robust wealth of experience in the banking and Telecommunication sectors in his new role. Hope PSBank (Hope Payment Service Bank Limited) was incorporated in September 2019 to leverage digital technologies to deliver inclusive financial services. The company seeks to provide the 4As - Accessibility, Affordability, Availability and Awareness of digital financial services.

Smartphone festival: Glo offers affordable devices to customers BUNMI BAILEY

est price deals await customers of Globacom who buy mobile phones from any Gloworld outlet during the ongoing Smartphone Festival. Inaddition,theywillalsoenjoy six months’ bundled data along with their preferred devices. Globacom, in a press statement in Lagos on Wednesday, explained that the new season was packaged by the company in response to its subscribers who enjoyed the benefits of the last season of Smartphone Festival, which ended in July and have been calling for the return of the programme. According to Globacom “The festival period provides opportunity for all subscribers (prepaid and post-paid) to visit Gloworld outlets to get the best price deals on any handset of their choice and enjoy bundled @Businessdayng

benefits,” Globacom said, adding that potential subscribers from other networks are also free to pick up any of the handsets covered by the Smartphone festival and a sim. However, the subscriber has to register the sim before activation. The company added that the model of phone chosen by customer out of the wide range of devices available in Gloworld which include Afrione, Apple, Imose, Infinix, Itel, Lava, Nokia, Samsung, Tecno and Vivo will determine the volumeofthebonushewillreceive. Globacom stated that data received by customers will be automatically credited to their lines and added to his or her existing data plans. It added that customers can check their data balance by visiting the Glo portal at http://hsi. glo.com or by dialling *127*0# as well as by sending SMS ‘info’ to 127. The new offer will end by October 31, 2020.

Monday 19 October 2020

BUSINESS DAY

www.businessday.ng

https://www.facebook.com/businessdayng

@Businessdayng

Monday 19 October 2020

BUSINESS DAY

www.businessday.ng

https://www.facebook.com/businessdayng

@Businessdayng

Monday 19 October 2020

BUSINESS DAY

www.businessday.ng

https://www.facebook.com/businessdayng

@Businessdayng

Monday 19 October 2020

BUSINESS DAY

www.businessday.ng

https://www.facebook.com/businessdayng

@Businessdayng

Monday 19 October 2020

BUSINESS DAY

www.businessday.ng

https://www.facebook.com/businessdayng

@Businessdayng

A6 BUSINESS DAY

Monday 19 October 2020

NEWS

#EndSARS: Oyo creates platforms to report police brutality REMI FEYISIPO, Ibadan

o report cases of rights violation and brutality by the police, Oyo State government has created an email account and other social platforms on the state’s website for residents Residents of the state can report incidence of police violations via the email address, reportpolice@mail.oyostate.gov. ng or through the link on the Oyo State website, https://oyostate. gov.ng/reportpolice/, where

they can fill out a form. The state government, in a statement on Sunday, said that plans were also afoot to set up a judicial panel to look into the various forms of abuses and violations being reported. It stated that names of members of the panel would be announced shortly. According to the statement, the governor, Seyi Makinde, gave this directive at the weekend in line with his earlier stance that the genuine grievances of the #EndSARS protesters, which bother on police brutality, must be addressed by the government.

The statement signed by the chief press secretary to the governor, Taiwo Adisa, indicated that the development also followed a directive to governors to set up judicial panels to probe incidences of police brutality in their states. The government said the platform was domiciled in the office of the governor and aimed at demonstrating Governor Makinde’s determination to address the menace of police brutality, rights abuse and extortion, with a bird’s-eye view monitoring mechanism.

Group to train 500 NGOs to impact-driven

n a bid to help nongovernmental organisations (NGOs) across Africa to be sustainable, The Funding Magnet (TFM), is hosting the most simplified coaching programme to train 500 NGOs on how to find, nurture and steward individual donors through the signature programme, ‘100 Perfect Donors’. According to the organisers, it does not matter whether this is an NGO’s first 100 or next 100 donors, this programme will equip founders and leaders in the NGO sector with the tools, templates, and tips to create an army of passionate and committed givers in 10 days or less. Omotola Akinsola, the lead partner at The Funding Magnet, said TFM is a company with the mission to equip over 100,000 nongovernmental organisations across Africa with world-class

training, coaching, and mentorship to grow from being selffunded, underfunded, to being fully funded by 2025. “With a seed investment of $100, NGOs can reap at $1000 to $3,000 in 10 days or less by using all that this programme we will teach. The beauty is, the principles and strategies in this programme can be applied over and over again to bring about more donors to support the work,” said Akinsola. Akinsola stated that the company was focused on helping NGOs scale, using three key fundamental elements, which are structure, proper documentation, and program design and delivery. “The same way that high net-worth individuals take advantage of multiple streams of income to attain their wealth, it is also essential for NGOs

who want to thrive and be fully funded to have multiple streams of funding sources. “Contrary to popular opinion, there is more than one pathway to getting your NGO fully funded. The majority of NGO founders and leaders in Africa are prone to believe grants, especially international grants are the only or major means of funding their impact work,” said Akinsola. Speaking about various funding sources NGOs can tap into, Akinsola explained there were at least seven different funding pathways NGOs can tap into. “These sources include grants, government contract/partnership, corporate sponsorships, individual donor giving, board membership, income-generating products/services, and online crowdsourcing.”

Young Professionals back youths against police violation

he Young Professionals (YP) arm of the Nigerians in Diaspora Organisation, representing the Americas continent (NIDOA) has expressed support for the sustained protest by youth and young professionals against police brutality in Nigeria. In a statement via its Instagram handle, the group also affirmed support for the youth in the country, while also calling for the strengthening of the legal arm of the government so it can swiftly respond to issues concerning youth and everyday Nigerians regardless of their status or networks. “Our ultimate request is a safe and viable Nigeria as is guaranteed by our constitution.” “As Nigerians, we cannot stand by, while our brothers, sisters and parents back home

are demanding and protesting for basic human rights and dignity under the law, which includes a reformed policing system in the country. “We stand with every Nigerian and youth in particular to voice their grievances, to continue to make our voices heard, and maintain a good representation at the relevant table of decision making moving forward. “Likewise, we support the need to strengthen our legal arm, so it’s able to represent and respond swiftly to issues concerning youth and adults, regardless of status or network. “With the withdrawal of the SARS team, our position is that both the federal and state governments must sign a document that will see to a public hearing of any agency’s misuse of office, against the

citizens and hold accountable to the fullest extent of the court any convicted law enforcement agent or agency that is repressive or abuses their authority. “Lastly, for the youth and young professionals putting themselves forward on the streets, to advocate and ensure those representing them are held accountable to fulfil the duties that they were elected for, and in honour of victims and souls lost to this situation, we are strongly with you all and stand ready to assist as needed! “NIDOA Young Professionals is not just about our economic impact and image protection of Nigeria in our continental region but also at home with our colleagues and fellow citizens,” said Barth Shepkong, a committee chairman of the group.

Lafarge Africa commits to development of C/River MIKE ABANG, Calabar

arfarge Africa Plc has stated its commitment to working with the Cross River government to grow the economy of the state. The country CEO of Lafarge, Khaled El Dokani stated this at the weekend when he paid a courtesy visit to the state commissioner for finance, Asuquo Ekpenyong Jr in Calabar. Ekpenyong Jr commended the cordial relationship between Lafarge and the Cross River State govern-

ment. He eulogised Lafarge for being a significant contributor to the gross domes-

www.businessday.ng

tic product of Cross River as well as the state’s internally generated revenue.

https://www.facebook.com/businessdayng

@Businessdayng

Monday 19 October 2020

BUSINESS DAY

NEWS

Foreign currency liquidity challenges to reignite banks’ appetite for Eurobonds

EXPLAINER:

Amid calls for reforms, where exactly is the Nigeria Police trust fund? DIPO OLADEHINDE

he longer the lamentable and pitiable state of the Nigeria Police Force, the more the question arises, why there is a delay in the implementation of the Police Trust Fund? The Fund was intended to bridge the funding gap in the police force. If there is one country that needs to improve security situation in its domain in order to project an image of a secured, attractive and welcoming country to the world, it is Nigeria. To improve security and position the country as a secured destination for both local and foreign investments, a significant amount of money is required. But analysts have questioned the delay in newly f o r m e d Nig e r i a Po l i c e Trust Fund aimed at improving funding and training of personnel of the force, despite the urgent need for it. What is the Nigeria police trust fund? On June 24, 2019, President Muhammadu Buhari signed the Nigeria Police Trust Fund (Establishment) Bill into law. The Nigeria Police Trust fund specifies the imposition of a 0.00 5percent levy on every Nigerian company’s net profit. Also, 0.5 percent of the total revenue accruing to the federation account will be added to the fund. The aim here is akin to every other trust fund there is, in that the assets accumulated will be held in trust and used for the purposes of training police personnel and procurement of needful police equipment. The fund will have a duration of six years, during which time a board will be constituted and charged with the responsibility of overseeing it. Specifically, the responsibilities of the board will include administering the fund and deciding on viable investment options. At the end of the sixyear period, the fund (along with its assets and liabilities), will be transferred to the Nigeria Police Force. Silent issues delaying According to an independent firm with a worldwide presence, Andersen Tax, “the law does

not stipulate any modality and timeline for such payments to be made and the appropriate agency responsible for collection and enforcement of the levy.” “The act does not stipulate any penalty for failure to pay the prescribed levy of 0.005 percent. Thus, the modality for application and enforcement of the levy is still uncertain,” Andersen Tax said. One of the big four accounting organisations and the largest professional services network, Deloitte expects that the board established to administer the fund or federal the government will release appropriate guidelines and regulations to clarify the uncertainties and ambiguities in the act. Exactly 11 months after assenting to the bill, President Buhari appointed a retired inspector-general of police, Suleiman Abba, as the chairman of the Board of Trustees of the Nigeria Police Trust Fund. However, the board is yet to give any guidelines on how it plans to operate. The 8-man board includes Ahmed Sokoto (executive secretary), Maurice Mberi (representing ministry of police affairs), IG Abubakar Adamu (representing the police) and Bilikisu Usman (ministry of justice). Others are Ben Akabueze (ministry of finance, budget and national planning, Mamu Ahmed (private sector) and Micheal Bamidele (civil society groups). Experts’ opinions Andersen Tax expects the board of trustee to provide additional clarification via a regulation. “The board needs to come up with lot of clarity soon, I do hope when this trust fund is up and running it will not be fraught with corruption as has been the case with other interventionist agencies,” Jide Ojo, a legal practitioner, with deep knowledge of the police said. T N P, c o m m e r c i a l l y oriented law firm with a global outlook said the police trust fund does not define what “net profit” upon which the levy is to be imposed which may become a challenge when collecting. “This should not be the case in a taxing legislation,” Babajimi Ayorinde and Samuel Esuga from TNP said.

BALA AUGIE

he current foreign liquidity challenges in Nigeria could be an incentive for banks to make a swift return to the Eurobond market as customers are in dire need of foreign currency. Between the last issuance and now, there has been moderation in interest rate on the back of dovish stance by banks across the globe in response to the headwinds brought on by the coronavirus pandemic. “They should be able to raise at lower cost. But they must look for customers who can pay interest on loans,” said Gbolahan Ologunro, equity research analyst at CSL Stockbrokers Limited. First Bank of Nigeria, the largest subsidiary of First Bank of Nigeria Holding (FBNH), is poised to tap the international debt market,

with the pricing of a senior five-year note expected in coming days. Analysts at Chapel Hill Denham Limited said given that the United States fiveyear treasury yield is currently at 0.3 percent, they expect the issuance to price between 7.3 percent and 8.0 percent. That compares 7.4 percent yield-to-maturity of Ecobank Transnational International Bank (ETI Bank). There were early rapid redemptions of Eurobonds by Nigerian banks two years ago on the back of little demand for currency loans, low interest rate environment, and currency devaluation. In 2019, three Nigerian banks redeemed $1.1 billion worth of outstanding Eurobond notes before maturity. “Defunct Diamond and Zenith matured without refinancing in 2019, and another tender offer was conducted by Zenith Bank to reduce its

Eurobond obligations,’’ said analysts at Chapel Hill Denham Limited. Nigeria, Africa’s largest economy, has $11.20 billion Eurobond outstanding with a yield of 6.60 percent, and the World Bank has delayed $1.50 billion facility on the grounds that policy makers have refused to adopt a unified foreign exchange rate. The Nigerian Treasury Bill Yields (NTB) crashed following the decision by the central bank in October last year to restrict individuals and Nigeria’s corporates from participating in both primary and secondary markets of its Open Market Operation (OMO) window. The central bank dovish tone suggests yield will be suppressed in a long while, as it cut key interest rate to the lowest in four years over concerns of a looming recession may be insufficient to boost growth.

In September, the apex bank lowered the rate to 11.50 percent from 12.50 percent. As a result of the Covid-19 disease that triggered unanticipated global financial market volatility, domestic economic growth in the first quarter (Q1) 2020 slowed to 1.87 percent. However, the International Monetary Fund (IMF) improved its 2020 forecast for Nigeria by 1.1ppts to a 4.3 percent year on year (y/y) contraction compared with 5.4 percent previously. The regulator has expressed concerns on the outlook for the country’s external reserve and exchange rate, thanks to worsening current account balance, decline in oil price, and risk aversion on the part of investors which would affect capital inflows. A backlog of FX demands has piled up in Nigeria since March, estimated at $2.5 billion by the CBN in August.

L-R: Bimbo Ayuba, chairman, board of fellows, Nigerian Institute of Management (NIM); Patience Anabor, president/ chairman of council, NIM; Abdullahi Umar Ganduje, governor of Kano State; Michael Olawale-Cole, past president, NIM; Christie Vincent-Atako, national treasurer, NIM, and Tony Fadaka, registrar/chief executive, NIM, at the 2020 fellows’ day of the institute in Lagos on Friday.

Expert offers fresh insights into how PE funding buoys growth of businesses CHUKA UROKO

t a time like this, in the Nigerian economy, when a good number of start-ups and entrepreneurs do not have the requisite capital and cannot access traditional financing sources such as bank loans to see ideas to fruition, private equity funding is the way to go, an expert has said. Fabian Ajogwu, a professor of corporate governance at the Lagos Business School (LBS), who gave this hint, noted that this inability to access traditional financing sources, which also includes issuance of public stock, has been a fundamental factor impeding the growth of businesses.

www.businessday.ng

Ajogwu, whose views are contained in his new book, ‘The Law & Practice of Private Equity’, which is billed for unveiling on Wednesday, October 21, pointed out that private equity is a crucial alternative to bridging the funding gap in many developing countries in Africa due to the lack of access to capital or lack of adequately developed routes to obtaining funding. “The Law & Practice of Private Equity examines the concept of private equity and highlights its significance as an alternative financing model that helps to bridge the funding gap for businesses and companies,” he explained in a statement in Lagos at the weekend. He cited a research which shows that private equity in-

https://www.facebook.com/businessdayng

vestors are attracted to businesses that have the potential to evolve in ways that create value and find traditional financing challenging to arrange. Ajogwu explained further that the emergence of PE funding as a reliable financing option in emerging markets and the desire to share optimum practical knowledge on a crucial subject inspired the writing of ‘The Law & Practice of Private Equity’. The book, published by a global leader in law publications, Thomson Reuters, is available in both hardback and e-book versions. It is expected that a wholesome exposition of the subject, as has been made in the book, will contribute significantly to the development and practice @Businessdayng

of private equity in Nigeria. It presents a practical approach to private equity investing and deal-making that protects the interests of stakeholders – investors and investees, just as it analyses the relevant legal framework to help those engaging in private equity deals to do so within the provisions of the law and regulatory requirements. An essential publication for businesses, ‘The Law & Practice of Private Equity’ will benefit entrepreneurs, investors, regulators, financial experts, policymakers, attorneys, lecturers, and students. It is envisaged that this book will increase knowledge of the subject of private equity and, ultimately, contribute to economic development and prosperity.

Monday 19 October 2020

BUSINESS DAY

www.businessday.ng

https://www.facebook.com/businessdayng

@Businessdayng

Company IN FOCUS

BUSINESS DAY Monday 19 October 2020 www.businessday.ng

Paystack’s $200m acquisition by Stripe sets stage for more exits in tech ecosystem FRANK ELEANYA

he news that USbased global payment company Stripe on Thursday acquired Nigerian payment company Paystack in a deal reportedly around $200 million, was the relief the Nigerian tech ecosystem needed after going through a year everyone is in a hurry to forget. While every sector of the Nigerian economy has been affected by the COVID-19 pandemic, startups in the tech ecosystem were among the most hit. Comprising mostly of very small companies led by techsavvy young men and women, some of whom are fresh out of the university, there is really little in terms of business experience that supports the ecosystem. The makeup for what it grossly lacks, more experienced tech founders took up the roles of mentors for the newbies in the ecosystem. However, it was not enough to prepare these businesses for the blizzard that the pandemic unleashed. For instance, Andela a firm that has closed more funding than the majority of the players in the space was forced to change its business strategy a record twice and laid off most of its engineers. Iroko TV took the high road by announcing that it was exiting its African operations. Renmoney and many others took a short cut by laying off and furloughing staff. Many of the agritech businesses like Thrive Agric, AgroPark, and HO Corn are currently locked in a cat-and-mouse battle with investors over failure to fulfill financial obligations. But it was not all negative for the ecosystem, at least for the tech firms in the health sector. 54Gene closed funding during the lockdown and sealed a partnership with a global organisation to expand the frontiers of precision medicine. Fintech companies were also among the positive notes of the pandemic as a few of them continued to attract funding and new custom-

ers, which has now culminated in the acquisition of Paystack. It is not the first time a Nigerian tech company is being acquired. Canal+ acquired Rok Studio in 2019 for an undisclosed amount. Autochek acquired Cheki Nigeria and Cheki Ghana

in August. However, the Paystack acquisition leaves a sweeter taste in the mouth not just because of the company that is involved - Stripe currently has the second-largest market share (18.15%) of the global payment market - It is also a confirmation

‘‘

Paystack is a growth engine for modern businesses in Africa, and we couldn’t be more excited to join forces with Stripe, whose mission and values are so aligned with ours, to nurture transformative businesses on the continent

that the Nigeria tech ecosystem is becoming mature. Niyi Toluwalope, CEO and managing director of eTranzact, one of the few fintechs on the Nigeria Stock Exchange, have also predicted that the ecosystem was ripe for a mega exit and would soon start seeing more exits in the months to come. “Many capital sources have been reluctant to invest in Africa because it was unclear how the money would ever get back out,” said Timon Capital, a firm that provides early-stage startups with funding. The acquisition of Paystack brings the total merger and acquisition done in Africa so far to $1.1 billion. “Setting a bar at $100-250 million valuations for strategic merger and acquisition in Africa gives some backbone to pricing financings for all entrepreneurs out there raising Series A/B,” the company said. The Paystack deal seals about two years of co-existing as partners by the two companies. Stripe had led Paystack’s Series A financing round and provided guidance as the company scaled to new markets. According to Stripe’s business lead in Europe, the Middle East, and Africa, Matt Henderson, the acquisition would allow Paystack to develop new products, support more businesses, and consolidate the hyper-fragmented African payments market. “We can’t wait to see what

they will build next and how their growth can turbocharge the African tech ecosystem,” Henderson said in a statement BusinessDay received. Founded in 2015 and launched in January 2016 by Shola Akindele (CEO) and Ezra Olubi (CTO), Paystack has grown to become a major player in the digital payment segment of the financial services. It currently services more than 60,000 businesses in Nigeria and Ghana which use its platform to securely collect online and offline payments, launch new business models, and deepen customer relationships. Interestingly, Paystack processes more than half of all online transactions in Nigeria and has ambitions to expand across the African continent. It recently kicked off a pilot with businesses in South Africa. “Paystack is a growth engine for modern businesses in Africa, and we couldn’t be more excited to join forces with Stripe, whose mission and values are so aligned with ours, to nurture transformative businesses on the continent,” Shola Akinlade, said. “We believe deeply that with the right tools, African creators, developers, and entrepreneurs can do incredible things. Leveraging Stripe’s resources and deep expertise, we’re excited to accelerate our geographic expansion and introduce more payment channels, more value-added services, and deeper integrations with global platforms.” Following the acquisition, Paystack will continue to operate independently, growing its operations in Africa and adding more international payment methods. The company will gradually integrate its capabilities in Stripe’s Global Payments and Treasury Network (GPTN), a programmable platform for global money movement that currently spans 42 countries. Paystack which was the first company from Nigeria to join Y Combinator employs 114 people representing 12 nationalities and working remotely across 9 countries.

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.