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Rosy political promises conflict with economic reality T

NGUS 0CT 30 2019 365.74

DMO clarifies issuance of promissory notes to settle oil marketers’ arrears ONYINYE NWACHUKWU

As Buhari, Atiku, Moghalu, Ezekwesili woo voters

LOLADE AKINMURELE

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he economics do not add up with some of the promises being made by current President Muhammadu Buhari, and other contenders such as Atiku Abubakar of the PDP, Kingsley Moghalu (YPP) and Oby Ezekwesili (ACPN) who published their plans for a still fragile economy, yet to recover from a devastating recession caused by a decline in oil prices in 2016.

Even though there are 79 presidential candidates, only about six of them have put out very clear plans on getting Nigeria to work again.

Nigeria’s political campaign Continues on page 2

See full coverage inside: Why Nigeria is broken and what it will take to fix it - Pgs 38,39

he Federal E xecutive Council (FEC) approved the establishment of the Promissory Note Programme and Bond Issuance to settle inherited local debts and contractual obligations due to various categories of creditors, including Oil Marketers in July 2017.

According to the debt management office (DMO), these were unpaid obligations carried over from previous administrations, and the amounts presented to FEC and subsequently to the National Assembly (NASS), were derived by simply collating figures from various MDAs Continues on page 37

Inside L-R: Danjuma Ibrahim, assistant inspector general of Police, Zone 11; Idowu Olayinka, vice chancellor, University of Ibadan; Ladi Balogun, group chief executive, FCMB Group plc, and Olutola Senbore, chairman, First City Monument Bank, during the 70th anniversary celebration and awards ceremony of the University in Ibadan, Oyo State.

WePay e-commerce platform debuts in Nigeria

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Tuesday 20 November 2018

US grew oil output in 2018 more than Nigeria’s total production ISAAC ANYAOGU

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he United States this year has increased its oil production by 2.31 million bpd, which is higher than Nigeria’s current total output of 1.9million bpd, highlighting how poorly Africa’s biggest energy producer is performing when it comes to making its oil sector attractive for investments.

Analysts fear that the country is not making the kind of strategic decisions required to position itself in a competitive oil market.

“This is why government should not just embark on reforms but institutionalise them and draft a clear policy that can stand the test of time for years to give investors’ confidence,” Chuks Nwani, an energy lawyer told BusinessDay by phone.

Nigeria has ambitions to raise crude oil reserves to 40 billion barrels, pump 4 million bpd, and add 800 billion cubic feet of gas by the year 2020 but the fiscal and regulatory regimes that would activate it have not materialised.

“Investors are usually more concerned about fiscal terms and seeing that they can make money from their investment and don’t lose their money. They also are more concerned about stability, they want to know the rules, be sure it is stable and that they can enforce their rights,” Ayodele Oni, partner at Bloomfield law firm and an energy lawyer told BusinessDay. Oil sector bills that will drive investments have stalled even after being broken down into four aspects: the Petroleum Industry Governance Bill (PIGB), the Fiscal Regime Bill, the Upstream and Midstream Administration Bill and the Host Community bill.

On the other hand, oil drillers in the United States are using advanced

technology, like hydraulic fracturing, to free oil and gas from rock formations. A pro-business president in the White House is driving the sector through reforms in regulations and taxes.

Investors are pulling in capital even though there is groundswell of opposition around big projects like the Dakota Access and the Keystone XL pipelines. On the contrary, big projects in Nigeria have stalled because of inaction on reforms.

American production has become critical to OPEC calculations such that in the cartel’s latest report, it forecasts the US would boost output to 11.43 million bpd in the last quarter of 2018 and continue ramping up production until it hits 12.5 million bpd at the end of 2019.

But it is not just US that is turning on the taps.

Oil production outside OPEC will reach 59.86 million bpd this year, growing further to 62.09 million bpd in 2019, a growth rate of 2.23 million bpd for 2019 from 2018, according to OPEC’s November Monthly Oil Market Report.

“Nigeria really needs to wake up,”Nwani said.

Already OPEC countries led by Saudi Arabia’s Oil Minister Khalid alFalih have started to talk about production cuts again for fear of another glut like the one that dragged prices below $30 a barrel four years ago.

Before the current dip in oil prices to around $67 per barrel, prices rose above $80 but Nigeria failed to take full advantage while the United States, Saudi Arabia, Iran and Russia pumped record volumes even with a supply cap.

This time, Nigeria will have a tough argument to make to be excluded from future cuts as the militant situation have largely been contained.

Rosy political manifestoes belie Nigeria’s...

Continued from page 1

season kicked off Sunday, Nov.

19, ahead of next February’s presidential elections set to be fought on the theme of a battered economy starved of jobs and expanding at a rate below population growth.

While 75-year old Buhari said he will create over 15 million jobs if re-elected, 71-year old Atiku, a former Vice President who prides himself on his business acumen, promises to deliver a $900 billion economy by 2025 and reduce recurrent expenditure from 75 percent currently to 35 percent.

Moghalu promises to reduce recurrent expenditure to 50 percent, and increase capital spending to 50 percent within two years, while Oby Ezekwesili says she will create jobs from key sectors like Agriculture, Fisheries, Livestock and agribusiness, and reduce the number of Out-Of-School children by 20 percent annually.

Chances of achieving these targets are slim when brought against current realities.

Buhari’s target to create over 15 million jobs in four years, fails to reflect the realities of his administration.

That will require creating an average of 3.75 million jobs annually.

Creating 3.75 million jobs annually would mean a 134 percent increase over the 1.6 million jobs

created in the whole of 2015, according to latest full-year jobs creation data from the National Bureau of Statistics (NBS).

Latest data from the National Bureau of Statistics (NBS) puts Nigeria’s unemployment rate at a six-year high of 18.8 percent as at the third quarter of 2017, while underemployment rate reached the highest on record at 21.2 percent.

Nigeria’s labour force grows at an average of 2.6 million yearly according to the third quarter 2016 job creation report by the National Bureau of Statistics (NBS).

This means the economy must generate same amount to keep unemployment rate at 2016 levels, in a country tipped by the World Bank to be the most populous nation by 2050.

Meanwhile, Atiku’s target of a $900 billion economy in 7 years will require average GDP growth of 10 percent each year from 2019 to 2025.

That’s a tough ask for an economy that has expanded at an average of only 4 percent since 2003, the highest in that period coming in 2014, when the economy grew 6.2 percent and oil prices were in excess of $100 per barrel.

The collapse in oil prices in 2016 plunged the economy into its first

Continues on page 37

L-R: Martina Medac, chief client services, WePay Nigeria; Seun Olayinka, marketing manager, iStore; Ravi Narain, general manager, technical, WePay Nigeria, and Akin Kehinde, managing consultant, WePay Nigeria, during the official launch of WePay Nigeria in Lagos, yesterday.

OML 30: How alleged $18.48m NNPC surveillance contract is raising storm FRANCIS SADHERE, Warri

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ll hell may be about to break loose over the award of an oil facilities surveillance contract by the Nigerian National Petroleum Corporation (NNPC), which is said to be a violation of extant rules.

BusinessDay gathered that the NNPC, on September 26, 2018, approved a contract for the security surveillance of the 87 kilometer Trans-Forcados Pipeline (TFP) to Ocean Marine Solution Limited, owned by Benin-born mogul, Captain Hosa Okunbo, at a whopping cost of $18.48 million.

According to the terms of reference of the contract, it is meant to last for five renewable months, coming with some other conditions spelling out penalties that may attend loss of products or breaches to parts of the length of the pipeline.

However, the contract has started raising eyebrows in various circles; while those concerned with due diligence in governance, especially as it affects the nation’s oil and gas sector, have raised red flags over the arbitrary and unexplained contract sum.

Reacting to the process leading to the approval of the contract, a youth leader in the state, Chief Francis Arhiyor, who is the President of Urhobo Youth Leaders Association, raised several objections over the manner the contract was awarded.

“Number one, this is in violation of the Public Procurement Act, which is the statutory rule guiding how public contracts and services are awarded. It stipulates that no contract from the tune of $20million can be awarded by any MDA, without deliberation and the express permission of the federal executive council.

This approval by the NNPC, although cleverly spread so that it will look like it has not knocked the $20 million

threshold, has violated that act.

“Furthermore, the operator of the asset, Heritage Energy Operational Services Ltd and Shoreline Natural Resources, as shrewd business people, had refused to agree to the new contract terms with Ocean Marine because of the inflated value, which will eventually be paid by them through ‘Cash Call’.

“When NPDC could not proceed with signing off on the contract because the Joint Venture Partners had declined, NNPC took it upon themselves to award the contract claiming that an Executive Order issued from the Presidency demands that the contract be awarded immediately.

“There are many questions they have to answer; what is the rational for re-awarding a running contract to a new contractor, at a value almost four times the rate it had previously been awarded to the former contrac-

Continues on page 37

Standard Chartered Bank cancels ATM charges ... Analysts say Nigerian banks aligning with global practice HOPE MOSES-ASHIKE

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n what seems to be good news for customers and a shift in the banking landscape, Standard Chartered Bank has taken a decision to cancel charges on its Automated Teller Machines (ATMs).

A source who preferred to be anonymous disclosed this to BusinessDay on Monday.

However all efforts to confirm this was not successful as Joke Adu, corporate affairs manager of the bank did not reply the text message sent to her.

Reacting to the development, Taiwo Oyedele, head, Tax and Regulatory Services, PWC, said, “It is a good development which customers will be delighted about”.

Oyedele said it is an indication that banking in Nigeria is becoming better aligned with global practices. Also ensures that use of ATM is treated in the same way as withdrawal across the counter which is currently at no charge.

“This is also good for financial inclusion and protecting the most vulnerable in society given that the current ATM charges affect the poor more,” Oyedele tol BusinessDay. Standard Chartered Bank Group is investing $1.5 billion to revamp its technology globally over three years.

The Bank is targeting to migrate over 80 percent of transactions to nonbranch channels by 2020.

In his emailed response to BusinessDay, Ayodele Akinwunmi, head of research, FSDH Merchant Bank Limited, said, “It means lower account maintenance cost for the customers of the banks. So the customers benefit.”

It is however good to note that Standard Chartered Bank is not a dominant player in the ATM business in Nigeria, as it has less than 40 ATM locations in the country compared with some banks that have over 500 ATM locations.

The Nigerian Senate last month called on the Central Bank of Nigeria

(CBN) to suspend the excessive ATM card maintenance charges being deducted from customers.

Charges on ATM withdrawals at other banks is N65 after the third withdrawal.

The CBN in September 2014, reintroduced N65 charge on transactions at other bank’s ATM. Nigerian banks charge N1, 000 on average for card replacement, and N50 monthly for cards maintenance.

The CBN last year reviewed its “Guide to Charges by Banks and Other Financial Institutions,” which replaces the one issued in 2013.

The guide to bank charges provides a basis for the application of charges on various products and services offered by banks and Other Financial Institutions (OFIs) in Nigeria to their customers.

Kelvin Amugo, director, financial policy and regulation department, CBN, said this may be reviewed from time to time to reflect changes in the business environment.

Tuesday 20 November 2018

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Tuesday 20 November 2018

150 telecoms sites down, to affect service in FCT, nine other states JUMOKE AKIYODE-LAWANSON

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s of Monday, a total of 150 telecoms sites in Kogi State, which are responsible for sending communication service signals to neighbouring states such as Nassarawa, Benue, Anambra, Ekiti, Kwara, Niger, Enugu, Edo and Ondo, including the Federal Capital Territory Abuja, were out of telecommunication service.

This is as a result of a shut down of telecoms sites and hub sites in Kogi State on Saturday, November 17, 2018.

The Kogi State govern-

SME operators in Lagos plan business expansion with FG’s loans KELECHI EWUZIE

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mall Medium Enterprises (SMEs) operators in Lagos who are beneficiaries of the Federal Government’s interest-free loans have revealed plans to invest the funds to expand their small scale businesses.

The traders stated this at Obalende, Makoko (Asejire) and Oyingbo markets in Lagos when the TraderMoni team led by the Vice President Yemi Osinbajo visited to launch the scheme.

Ayo Adegoke, who sells peppers and tomatoes at Asejire Market, said aside taking part of the loan to re-stock with more peppers and tomatoes, she would also be adding onions and coconuts as new areas of trade. She said she was desirous of making more profits and ready to benefit from more loans.

Bisola Ayobami, a plantain chip seller in Oyingbo Market, said in the next few days, she would be adding the sale of soft drinks to her petty trade.

She said the N10,000 was coming at the right time for her and she was going to make judicious use it.

On her part, Mercy Emmanuel, a fruit seller in Obalende, said it had always be her desires for many years to add groundnut to the list of her businesses but had been hampered by the paucity of funds.

She however said with the TraderMoni loans, her desire had become realistic.

“As you know, selling of fruits is seasonal, which is unlike groundnuts that sell at every season. There are months I needed to stay at home doing nothing because there were no fruits to sell, but now as I am collecting the loan, I will be investing it in groundnuts business. I am happy with the TraderMoni,” Emmanuel said.

Toyin Adeniji, executive director of Bank of Industry, said under the TraderMoni scheme, beneficiaries could get access to a higher facility ranging from N15,000 to N100,000 when they repay N10,000 within the stipulated time period.

ment had gone ahead to shut down and seal up critical telecommunication infrastructure sites, refusing access for operators to refuel power generators at the site, after the telecoms operators allegedly refused to adhere to warnings to pay certain taxes and levies demanded by the state government.

The action followed an ex parte court order obtained by the Kogi State Internal Revenue Service (KIRS) over allegations that the telecoms operators are in default of tax payments to the government, an allegation the telcos say is untrue.

Telecommunication op-

erators in Nigeria say the illegal shutting down of sites and denial of access to critical telecom infrastructure by the Kogi State government has strong damaging social, economic and security impacts on Nigeria. The sites affected more than doubled from 70 affected on Sunday to 150 on Monday, and may affect even more sites across regions that share boarder with Kogi States in the coming days, if the situation is not quickly resolved.

Speaking at a press conference on Monday, 19 November, Gbenga Adebayo, President, Association of Licensed Telecommunication

Operators of Nigeria (ALTON) said; the State government had come up with several strange taxes that have not been federally approved.

“ALTON calls for urgent intervention on this situation, as we are very concerned about the shutting down of telecom facilities in Kogi State as a result of dispute arising from unusual taxes and levies demanded by the State government through its ministry of environment and physical planning, environment and mineral resources, Kogi State environmental protection board and championed by the Kogi state internal rev-

enue service.

“As you would know, we collocate and a lot of the sites closed are critical hub sites, so one site shut down has had impact on multiple operators. The taxes operators are being asked to pay are illegal, some of which are not captured in the federal laws.”

According to Adebayo, the Kogi government is asking telecom operators to pay for Right of Way (RoW) renewal.

“We are not aware that RoW is renewed, as described by law, RoW is a one off payment paid by the telco to lay infrastructure

which is underground forever,” he said.

“Why should telcos be asked by a State government to pay for social service contribution, employee economic development levy, mass site premises renewal and fire service yearly renewal?” Adebayo said.

The telcos say they have also been asked to pay environmental levy even when the industry is not extractive.

The Kogi State government informed the telcos that they are in contravention of the state laws as they have failed to submit environmental impact assessment report.

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Talks of supply cut, possible Sino-US trade truce buoy oil prices STEPHEN ONYEKWELU

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xpectations from the prospect that Saudi Arabia will push OPEC and Russia to cut supply towards the end of the year and signals of truce in the Sino-US trade dispute have made oil prices to rise four sessions in a row on Monday.

A trade dispute between the United States and China is one reason investors are a lot warier about the outlook for oil demand growth next year.

However, the Organisation of Petroleum Export-

‘Nigeria needs investment in human capacity development to grow’ ODINAKA ANUDU

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igeria and Africa must invest in systems as well as human capacity development to grow their economies sustainably, experts say.

At a press conference in Lagos, Clara Okorie, cofounder of Pens and Dreams Limited, said it was important to focus on systems but more important to invest in personal capacities of the people on the continent.

According to Okorie, accelerated development of the African continent starts with personal growth and leadership skills.

She said as part of its contributions to the development of people’s leadership skills, Pens and Dreams in collaboration with National Orientation Agency and certified John Maxwell team coaches would conduct a personal growth and leadership summit between November 21 and 22.

The summit, known as Discover, Achieve, Replicate, Enjoy (DARE), and themed ‘Elevate Africa by becoming a person of influence,’ is a two-day personal growth and leadership certification programme.

Olusoji Oyawoye, one of the coaches, said, “The summit is aimed at raising a crop of selfless leaders who recognise that leadership is not a right, but a privilege, in Africa.

“We are trying to build servant leadership and the summit is riding on the John Maxwell Team DNA called ‘Value People’ because we believe there is a lot more we can achieve.

So, hopefully, we would return our continent to the value we expect in our public and private lives as a nation, which are the values of honesty, decency and selfless leadership.”

ing Countries (OPEC), led

by Saudi Arabia, is pushing for the group and its partners to reduce output by one million to 1.4 million barrels per day to prevent a build-up of unused fuel.

“It appears that the market takes a production cut for granted. We’ll see if it is right after the next OPEC meeting on December 6. It is not unreasonable to anticipate stable prices until then,” PVM Oil Associates strategist, Tamas Varga, said.

Russian energy minister, Alexander Novak, said on Monday that Russia, not an OPEC member, planned

to sign a partnership agreement with the group, and that details would be discussed at OPEC’s December 6 meeting in Vienna.

Brent crude futures were up 24 cents at $67 a barrel by 1000 GMT, while US futures rose 38 cents to $56.84.

Despite Monday’s gains, Brent is almost 25 percent below early October’s 2018 peak of $86.74, as evidence of slowing demand has materialised and output from the US, Russia and Saudi Arabia hit historic highs.

Wall Street had firmed on Friday after US Presi-

dent Donald Trump said he might not impose more tariffs on Chinese goods after Beijing sent a list of measures it was willing to take to resolve trade tensions.

The comment stoked speculation of a deal when Trump meets Chinese President Xi Jinping on the sidelines of a G20 summit in Argentina later this month.

It is important to note also that the actions and tweets of Presidents Donald Trump and Vladmir Putin and Crown Prince Mohammed Bin Salman

have replaced OPEC’s control of the oil market.

The moves (or tweets) of these three men will determine the course of oil prices in 2019 and beyond. But of course they each want different things, according to a Bloomberg report.

While the OPEC struggles to find common purpose, the US, Russia and Saudi Arabia dominate global supply. Together they produce more oil than the 15 members of OPEC. All three are pumping at record rates and each could raise output again next year, although they may

not all choose to do so.

Bin Salman needs oil revenue to fund his ambitious plans to transform Saudi Arabia, while avoiding unrest from those hurt in the process. The International Monetary Fund forecasts that the kingdom will need oil price of $73.3 a barrel next year to balance its fiscal budget. Brent crude is trading about $5 below that, with Saudi Arabia’s exports trading at a discount to the North Sea benchmark.

Prolonging output cuts for a third year is the only way he can realize the price he needs.

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Despite campaigns, N/Assembly committed to passing PIGB, other priority bills OWEDE AGBAJILEKE, Abuja

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enate president, Bukola Saraki, on Monday assured Nigerians that legislative duties in the National Assembly would not be relegated to the background in view of the commencement of the 2019 electioneering campaigns.

Saraki made the assertion while responding to comments by the acting British High Commissioner to Nigeria, Harriet Thompson, who visited him at the National Assembly.

Saraki said: “It is very important to emphasise that as far as we are concerned, we will follow through on the key Bills. We will continue to work on these Bills, because they are priorities to the Eighth National Assembly — these are Bills that were initiated by the legislative arm of

government.

“For example, the Petroleum Industry Governance Bill (PIGB) has never gotten this far in its history. However, both Chambers of the National Assembly worked very hard to come up with a unified position and sent it to the Executive. Unfortunately, it came back with some minor issues that we feel should not have affected the progress of the Bill. These were issues that could have been easily addressed.

“The two arms of government must see that the most important thing is for us to get the PIGB going because it has a lot of impact on the industry in terms of transparency, accountability and ensuring that the revenues of the petroleum sector are well managed.

“As you know, we have also gone far with the fiscal and host community com-

ponents of the Bill, because it came about as a result of constant engagement with stakeholders in the industry.

However, with this setback by the Executive, this has slowed down the process a little.”

With politics occupying centre stage from now till June 2019, over 20 priority bills are currently stalled in the Senate as senators begin their re-election campaigns. Some of the bills include: the PIGB, Petroleum Industry Fiscal Bill, Petroleum Industry Administration Bill, Petroleum Host Community Bill and Gas Flaring Prohibition Bill.

Others are: Companies and Allied Matters Act (CAMA), Food Security Bill, Public Procurement Act (Amendment) Bill, Stamp Duties (Amendment) Bill, Police Reform Bill, National Research and Innovation Council Bill, Industrial Development (Income Tax Re-

lief) (Amendment) Bill and National Agricultural Seeds Council Bill.

Also stalled bills are: Discrimination Against persons with Disabilities Bill, State Police Bill, Chattered Institute of Entrepreneurship (Est.) Bill, Advance Fee Fraud and Other Related Offences (Amendment) Bill, Subsidiary Legislation (Legislative Scrutiny) Bill, Gender and Equal Opportunities Bill and Nigerian Maritime Administration and Safety Agency (Amendment) Bill.

Most of the proposed legislations are currently at the Committee level.

“Despite the fact that campaigns have started, all these important Bills will still receive the desired attention from us to ensure that governance does not suffer and we can still make the lives of all Nigerians better,” he stated.

L-R: Austin Godwin, advert executive, BusinessDay; Adeola Ajewole, general manager, advert; Joseph Afolayan, vice-chancellor, Anchor University, Lagos; Zebulon Agomuo, editor, BDSunday, and Patrick Ijegbai, subscription manager, during the visit of BusinessDay management team to the vice-chancellor, Anchor University, Lagos, yesterday. Pic by Olawale Amoo

Industrial Park, Benin River Port, modular refinery ‘ll accelerate Africa’s industrialisation – Obaseki

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do State governor, Godwin Obaseki, says his administration’s commitment to the development of an industrial park, a modular refinery and the Benin River Port in the state will accelerate Africa’s industrialisation drive.

Obaseki made the submission in commemoration of Africa Industrialisation Day celebrated on November 20, each year by the United Nations and its partners.

According to Obaseki, “Industrialisation holds the key to Africa’s prosperity and with ongoing continentwide conversation about Africa Continental Free Trade Agreement (AfCFTA), any part of the continent that wants to benefit from the agreement must strengthen

her industrial base.”

He assured that “when the Benin Industrial Park and the Benin River Port come on stream, more jobs will be created for Edo people and residents, while a robust product processing base will be established to add value to goods produced in the state.”

The governor noted that the 2018 Theme for the Africa Industrialisation Day: “Promoting Regional Value Chains in Africa: A pathway for accelerating Africa’s structural transformation, industrialisation and pharmaceutical production,” highlighted his administration’s supports for policies and programmes that envision sustainable development for the state.

He said parts of the plans

to support industrialisation in the state include sustaining the tempo in providing enabling environment that encourages local and foreign investors willing to site their industries in the state, and by, “focusing on improving employability of youths through technical and vocational education and other skills development programme organised

by EdoJobs.”

“The transformation of Edo Geographical Information Service (EDOGIS) agency is aimed at ensuring investors acquire land to support the state’s industrial growth with ease, while we continue to support human capital development, research and development (R&D), technology and governance.”

Tuesday 20 November 2018

TETFUND responsible for over 95% capital infrastructure in universities - ex-TETFUND scribe IDRIS UMAR MOMOH, Benin

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ormer executive secretary of Tertiary Education Trust Fund (TETFUND), Suleiman Bogoro, says the education intervention agency is responsible for over 95 percent of capital infrastructure provision in the nation’s universities.

Bogoro made the remark while delivering the University of Benin’s 44th convocation lecture titled, “Ivory Towers and the challenge of Nigeria’s innovative and creative renaissance,” in Benin City on Monday.

He also said the agency expanded its interventions to support academic staff development, support for book development and professional/institution-based

journal production, library development and National Research Fund (NRF), and institution-based research funds with ceiling levels of N50 million and N2 million, respectively.

The former TETFUND scribe, who commended the Academic Staff Union of Universities (ASUU) for being instrumental to the establishment of the agency, however, tasked the union on new innovations to help rescue universities and indeed the entire education sector from non-performance.

While noting that Nigeria has remained the lowest funders of public education in the world, he, however, urged academicians in the university to come up with additional non-budgetary funding window options.

Obaseki leads EXCO to Edo State Poly’s maiden convocation

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overnor of Edo State, Godwin Obaseki, will on December 1, lead the state government’s delegation to the maiden convocation ceremony of Edo State Polytechnic, Usen, the first since inception.

Rector of the polytechnic, Abiodun Falodun, in an interview with journalists, said a number of activities had been lined up for the ceremony, which will hold from November 27, to December 2, at the main campus of the polytechnic.

The Founder’s Day Lecture, one of the events lined up for the convocation ceremony, will be delivered by the commissioner for communication and orientation, Paul Ohonbamu, on November 29, entitled, “Leadership Development and Vagaries of Power: Ni-

geria in Perspective.”

He said the lecture

by Ohonbamu would set the tone for the series of activities set to hold in Usen, Ovia South West Local Government Area, Edo State.

The convocation lecture will be delivered by Space Physicist, Babatunde Rabiu of the Centre for Atmospheric Research, on Friday, November 30, 2018, entitled: “Repositioning Higher Education Towards Effective Patronage of Science and Technology for Sustainable Development.”

“We are extremely proud that Governor Obaseki will be at the occasion as visitor to the institution. This is a landmark event. We are proud of the reforms the governor has brought to the state and this institution in particular.

FG refunds Lagos outstanding expenses on federal roads JOSHUA BASSEY

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he Federal Government has made refund to Lagos State government running into billions of naira, being what the state incurred on the rehabilitation of federal roads within the state.

The state governor, Akinwunmi Ambode, admitted to this at the weekend but did not mention the actual amount refunded.

However, BusinessDay gathered that over N52 billion was allegedly being owed Lagos by the federal authorities, being the amount the state incurred on the rehabilitation of federal roads, especially under the previous administrations at federal and state levels.

The contentious amount had seen both governments trading words and arguing

back and forth on the actual sum, with Lagos withdrawing from further interventions on federal roads within its jurisdiction. Two different political parties were controlling both levels of government then. While the then ruling People’s Democratic Party (PDP) had control of the federal, Action Congress of Nigeria (ACN), a minority opposition party at the time, held sway in Lagos.

Gbenga Akintola, a former executive chairman of Lagos State Public Works Corporation (LSPWC), had in 2011 said over 17 federal roads, most of which were in terrible state of disrepair, rehabilitated and maintained

by Lagos State.

Akintola listed some of the roads to include Maryland to Ikorodu, Akpongbo, Ahmadu Bello to Bonny Camp, down to Barbeach,

Osborne Road, Lagos-Badagry, Herbert Macaulay, Adeniji Adeile. Others included Herbert Macaulay to Ebute Meta, First Avenue in Festac Town, Apapa-Oshodi Expressway, Epe-Ijebu Ode Road, among others.

Ambode at the flag off of the reconstruction of ApapaOshodi Expressway by Babatunde Fashola, minister of works, power and housing, last weekend, admitted that the outstanding expenses on the federal roads had been refunded to Lagos.

“I want to thank the minister for ensuring the refund to the state government for some of the federal projects embarked upon,” Ambode, who added that his administration was in the process of utilising the refunded amount to deliver ongoing projects in the next few months, said.

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Atiku plans to decongest Lagos ports, improve efficiency for seamless operations … facilitate development of alternative, inland dry ports AMAKA ANAGOR-EWUZIE

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pparently moved by the plight of commuters, motorists and port users who come to Apapa metropolis on daily basis for business, Atiku Abubakar, the presidential candidate of the People’s Democratic Party (PDP) has assured Nigerians that efforts would be made by his administration to decongest the roads leading to the two major seaports in Lagos - Apapa and Tin-Can Island ports, if voted into power.

This was part of the content of the Atiku’s policy document titled: ‘Get Nigeria Working Again,’ launched on social media platforms on Monday.

Atiku’s plans have become crucial at this time importers and their agents are

paying dearly on demurrage to shipping companies and rent to terminal operators for systemic failure, largely caused by dilapidated and congested port access roads as well as over dependent on Lagos ports.

According to the document, Atiku’s administration hopes to improve efficiency in operations in the existing ports and accelerate the development of alternative container ports, especially inland dry ports.

He said his administration would define timelines for completion of concessions granted for inland and dry port development.

If voted into power, his administration will also sort Public Private Partnerships (PPP) and community efforts toward the development of transport infrastructure, he said, saying,

“Partner with states and local governments to develop and rehabilitate the connecting road networks.

“We shall target the rehabilitation and development of up to 5,000 kilometres of roads across the nation by 2025. Develop and rehabilitate the connecting road networks across the geopolitical zones.

“Bulk of the transport activity is along three corridors, and traffic volumes are expected to double within the next 20 years: Lagos to Kano (Western corridor); Port Harcourt to Kaduna (Eastern corridor) and Lagos to Cross River (West – East corridor).”

He pledged to use alternative means of transportation by developing a new National Transport Policy that would address issues relevant to promoting inter-modalism, including institutional frag-

mentation, intermodal regulation, intermodal connectors and measuring transport system performance.

“We will encourage transportation development around the nation’s agricultural and industrial clusters.

Enhance linkages to agricultural zones and develop agricultural collection and distribution hubs in Jebba, Lafia, Makurdi, Lokoja, Pategi/ Baro, Shendam and Jalingo,” he assured.

He said he would develop the Lagos – Abuja rail network on the standard gauge system to revive Nigeria’s rail system.

Commenting on this, Emma Nwabunwanne, a Lagos-based importer, who commended the plans to decongest Lagos Port, said port users would be relieved if Atiku’s administration would deliver on the promise.

Odion Aleobua, chief executive officer, Modion Communications, (r), receiving the award for Innovative PR Agency of the Year, from Akin Naphtal, CEO, Instinct Waves and organiser of the 2018 8th Marketing World Awards held at Mövenpick Ambassador Hotel, in Accra, Ghana.

Court orders trial of Dasuki on absentia FELIX OMOHOMHION, Abuja

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Federal High Court, Monday, ruled that it would go ahead with the trial of former National Security Adviser, Sambo Dasuki, who is standing trial for alleged money laundering and gun gunning offences.

The court ordered the trial to be conducted in his absence following his resolve not to attend any proceeding for the trial.

Justice Ahmed Mohammed issued the order yesterday while delivering ruling in an affidavit filed by the Federal Government in which the court was prayed to order the trial of the ex-NSA in absentia and in the alternative that the court should compel his appearance in court.

Justice Mohammed held there were constitutional provisions that allowed a criminal case to go on even if the defendant refused to make himself available for trial.

Justice Mohammed invoked Section 352 of the Administration of Criminal Justice Act (ACJA) to order Dasuki’s trial in absentia on the strength of his own declaration not to attend trial again and the fact that he had not attended the court four times in the previous four adjournments.

Meanwhile, further trial has been adjourned till December 11.

The former NSA had on November 13 informed the Court of his decision not to attend court proceedings again, in protest against the refusal of the Federal Government

to release him from detention despite he has been granted bail by several courts.

Earlier, Federal Government, through its counsel, Dipo Okpeseyi, told the court that Dasuki’s trial in absentia had become imperative because of his letter to the court that he will no longer attend trial in protest against government’s disobedience to judgments that granted him bail Okpeseyi, in the affidavit attached Dasuki’s letter dated November 12, 2018, submitted to the court through its registrar to the effect that he will no longer attend trial in the charges of unlawful possession of firearms and money laundering brought against him by government.

He further informed the court the affidavit was filed in compliance with the court’s

ruling of April 10 to the effect that government must file affidavit evidence when ever the ex-NSA chooses not to appear in court for his trial, adding that Dasuki’s absence in court yesterday was an enffrontery and a challenge to court order and that the challenge must not be taken lightly with him.

Since the defendant said he will not obey order of this court, we applying that the matter be stood until he is brought to this court from now till.

He therefore urged the court to “alternatively proceed with the trial without the defendant or on his absrnce. This is a constitutional action that once a trial commences the defendant must be present in all the proceedings.

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Regulatory agencies working against FG’s ease of doing business, warns NECA JOSHUA BASSEY

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he Nigeria Employers’ Consultative Association (NECA) has stressed the need for the Federal Government to check what it termed ‘abuse of power’ by some federal regulatory agencies, citing the National Lottery Regulatory Commission (NLRC) as one of such agencies.

The employers’ body says the operations of NLRC under its current management constitute a clog in the ease of doing business in Nigeria, and warns of dire consequences if allowed to continue unchecked.

NRLC recently shut down operations of Nigerian Breweries (NB) plc nationwide over a disagreement arising from sales promo conducted

by NB but which the regulatory agency claimed was lottery and not sales promo.

But, according to Oluse-

gun Oshinowo, director-general of NECA, “NLRC cannot constitute itself into an accuser and a judge in its own case in which it has erroneously equated sales promotion to lottery.”

Oshinowo, in a statement in Lagos Monday, deplored the Gestapo-like manner in which the NLRC under the leadership of Lanre Gbajabiamila, aided by a lorry load of armed policemen, marched on the premises of NB to shut down the company over an alleged failure to pay a spurious commission to the agency.

NECA said: “In one breath, the government is advertising Nigeria as the destination of choice for investment and in another breath NLRC is destroying what government is trying to build at a crucial time like this that the current administration is seeking to renew its electoral mandate.”

NAFDAC, Customs intercept N6.44bn Tramadol shipment, other unregistered drugs CALEB OJEWALE

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hipments of Tramadol estimated at N6.44 billion and other unregistered pharmaceutical products have been intercepted by the National Agency for Food and Drug Administration and Control (NAFDAC) in a joint examination of containers at the Apapa Port, coordinated by the Nigeria Customs Service (NCS).

Moji Adeyeye, directorgeneral of NAFDAC in a statement sent to BusinessDay, indicated that the examined containers were found to contain 128,922 cartons of high strength of Tramadol (120mg, 200mg, 225mg & 250mg), estimated at a total of N6,446,100,000.

In addition, 321,146 cartons of other unregistered Pharmaceutical Products were found in the containers.

According to NAFDAC, (23) 40ft containers out of

(86) 40ft containers on the Agency’s watch list since November 2017 were examined on November 14 and 15. They were loaded with Tramadol of various strengths from 120mg to 250mg and other unregistered pharmaceutical products known to be injurious to health of the public, most importantly the youth.

The 86 containers were suspected to contain Tramadol. The most recent of these containers are the 38 containers that were loaded with Tramadol of high strength from India and 28 of them were successfully blocked.

The successful operation has been credited to communications with the comptroller general of the NCS in September 2018 of containers suspected to be carrying Tramadol and other unregistered pharmaceuticals as well as other NAFDAC regulated products.

I’m an incurable optimist about Nigeria - Obasanjo FRANCIS SADHERE, Warri

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ormer President Olusegun Obasanjo at the weekend said he was an incurable optimist about Nigeria, stressing that Nigeria could be made to progress in spite of differences among the people.

Obasanjo however noted that Nigeria could only progress when all its citizens had a sense of security, unity and belonging.

Obasanjo spoke in Asaba at a meeting with the executive members of the Delta State Traditional Council led by its chairman, Obi Efizo-

mor II, Obi of Owa. The former President said, “ I am an incurable optimist about this country. Nigeria is not a perfect country but it can be made to make progress, move at a pace that will be advantageous to all of us, no matter our tribe, position gender and race.

“We can have a country that is at peace with itself, where unity is enthroned, a country where every one will be their brother’s keeper, where performance will be obvious in the governance and running of the affairs of our people, a country where everyone will have a sense of belonging.”

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Has religion promoted development in Nigeria?

Mazi Sam Ohuabunwa OFR sam@starteamconsult.com

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here has been this argument as to whether Nigeria is a secular or non-secular state, religious or non- religious nation. A secular state is a state which purports to be officially neutral in matters of religion, supporting neither religion nor irreligion. A secular state also claims to treat all its citizens equally, regardless of religion and claims to avoid preferential treatment for a citizen from a particular religion/ non religion over other religions/non religion. Secular states do not have a state religion.

Some states become secular upon creation of the state, for example the USA or upon secularization of the state (eg France & Nepal). Historically, the process of secularizing states, typically involves granting religious freedoms, disestablishing state religion, stopping public funds being used for religion, freeing the legal system from religious control, freeing up educational system, tolerating citizens who change religion or abstain from religion and allowing political leadership to come to power, regardless of their religious beliefs.

Ordinarily secular means worldly, non religious or not spiritual while non-secular will then refer to be spiritual or religious. But it does not always work out that way in real practice. Some non-secular states actually

STRATEGY & POLICY

MA JOHNSON Johnson is an eclectic researcher, writer and columnist whose articles cover maritime, defence, technology and public policy issues and other areas of human interests. He is a member of the BusinessDay Editorial Advisory Board)

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ince 2011, lowest wage permitted by law in Nigeria is N18,000 (US$ 50). But now that it has been established that six Nigerians become extremely poor every minute in Nigeria, raising the minimum wage of workers may be the right thing to do. If a worker puts in an honest day’s work, he or she should be able to earn a living wage.

So, the question is: What should be the minimum wage in Nigeria? It’s expedient to ask this question bearing in mind that the country is almost broke. More than fifty percent of the nation’s revenue is allocated to servicing debt annually.

Whether it’s politically expedient or not, Nigerians are divided on the minimum wage issue. There are

do not subscribe to any spirituality.

Indeed some of the greatest atheist nations are regarded as non-secular, such states as China, Japan, Czech Republic, France, Australia and Iceland. But many non-secular states truly have state religions- that is they recognize a special religion in their constitution. Some Christian nations include Costa Rica, Malta, Monaco, Vatican City (Catholicism); England, Jersey & Tuvalu (Anglicanism); Denmark, Norway, Greenland, Finland (Lutheranism). Zambia is one of the few Christian States in Africa. Many of the predominantly Muslim- dominated states have Islam as the official state religion, countries such as Afghanistan, Algeria, Bangladesh, Bahrain, Saudi Arabia, Egypt, Iran, Iraq, Malaysia, Pakistan and Morocco. Some other States have Buddhism or Hinduism as their state religion. Some Countries have transformed political ideology into some kind of religion. China in the days of Mao Zedong and North Korea even as at today adopt their political ideology as religion and very much resist any true religious influence.

So what is Nigeria- secular on non- secular? My answer is both. Secular because Nigerian constitution does not recognize any official religion yet, some states in Nigeria have adopted the Sharia legal system. It is also non- secular, because Nigeria as a country invests in religious activities and is essentially a religious nation.

Every year the tax payer’s money is spent to pay for or subsidize religious trips to Israel and Mecca called pilgrimage. The government of Nigeria funds the offices that organize the pilgrimages and governments- at all

‘ The major paradox in Nigeria is that it looks like the more religious institutions we build, the more denominations and sects we create, the worse we become morally

’

levels, donate money directly to religious bodies and for religious purposes.

Is Nigeria religious or non-religious? The answer as shown above is affirmative.

The country is not only religious, it is essentially multi-religious. It officially allows freedom of religion or worship and often starts many official functions with prayers. The second verse of the national anthem is actually a prayer.

But certain sects have developed in Nigeria overtime that have tended to abridge the freedom or rights of other religious adherents. The current Boko Haram insurgents first fought against the Christian churches, claiming that western education was bad, which, of course, has the Christian imprint, before turning full circle to fight those who they believed did not practice their model

of Islam. This militant terrorist group with a religious philosophy cannot be said to be contributing anything to Nigeria’s development. If at all, they are an antithesis to development.

That Nigeria is a deeply religious country is well established and well expressed. Truly, I believe that Nigeria is among the most religious nations in the whole world. It is believed that Nigeria has the highest number of church denominations and highest the number of church buildings in the world. I may not speak authoritatively for Islam but I can see mosques everywhere more that I see in many of the nations that I have visited. I have not visited Saudi Arabia but I am prepared to place a bet that there are more mosques in Nigeria than in Saudi Arabia. Even in the traditional religious practices, every hamlet in Nigeria has shrines and coves where traditional worship takes place. At some point, especially in my part of the country, it looked like the Christian religion was displacing traditional religion but there has been a recent resurgence in traditional worship centres and even some so called Christians who are “tired” of waiting for God to act now take their matters to deities and shrines. Nigeria’s Nollywood is giving credence to this resurgence.

Now my question is, has religion helped the growth and development of Nigeria? Indeed has it helped the growth and development of other countries? One way to begin to address this question is to see if there is any difference in the rate of growth of religious nations- where religion is practiced and those nations that prohibit or limit freedom of worship.

America, Israel, Germany, Norway,

Denmark and the UK are good examples of where liberal Christian religion is fundamental to their way of life, though many now have growing populations of Muslims and Asian religions like Buddhism, Hinduism, Sikhism, Taoism, Confucianism and Shintoism.

These countries represent the gold standard in economic growth and development. There is ample evidence that their religious practices have been positive to their economic growth and orderly development of their societies.

You can say similar things about Saudi Arabia, Bahrain, Dubai, Turkey, Egypt and a few of such countries that have adopted Islam as state religion, even within the context of belonging largely to developing nations categorization.

Countries with restricted religious freedom like Russia, Japan and China have shown mixed results. Japan had delayed economic growth but shot up in the 20th century with massive technological breakthroughs. Russia has been mixed. It has not shone forth like other countries of its age. Communism, which was a political ideology that more or less replaced religion for a long time, in my opinion, may have undermined economic growth and development. The low pace of economic development in North Korea as different from the exceptionally rapid growth in South Korea (with one of the largest Churches in the world) may derive in some part from their opposing religious orientations.

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What is the real minimum wage? those who believe that the minimum wage of workers in Nigeria must be increased to help the working poor.

Their view is anchored on the premise that increasing the minimum wage will prevent families from raising their children in poverty.

Some believe that if the minimum wage is increased it would lead to inflation. With an increase in minimum wage, too much money will be chasing few goods resulting in inflation if there is no corresponding increase in productivity. Whatever is approved as minimum wage will be consumed by inflation as time progresses because.

Despite views expressed by those for or against an increase in the minimum wage, the FG has accepted tacitly to increase minimum wage from N18,000 to N30,000. By implication, the minimum wage proposal shows an increase of about sixty percent.

If the minimum wage was to be increased by sixty percent, it’s doubtful if sales, particularly of those in the private sector, increases by equal percentage. So, one may say that employers of labor have no choice than the reduce their workforce.

Accordingly, the Nigerian Governors’ Forum issued a communique that state governments can only increase minimum wage from N18000 to N22,500. And that if the organized labor insists on the proposed N30,000 minimum wage, there will

be massive sack of workers by state governments. In defence of their position, most state governors say that they will go bankrupt if they pay N30,000 minimum wage. Furthermore, governors say that they are not in government to pay salaries alone. Yes, governors are not in office to pay salaries alone, but their opposition to the proposed minimum wage of N30,000 is very disturbing to organized labor. A representative of the organized labour responded to the threat issued by the Governors’ Forum that “we are not discussing downsizing of the workforce or employment of workers. What we are discussing is the minimum wage. We want to know exactly what the minimum wage is. The issue of downsizing is collective bargaining. The issue should not be mixed.”

With profound respect to our governors, states will not go bankrupt because of minimum wage of N30,000.

It’s high cost of governance that has crippled most of the states economically. The cost of maintaining a large number of “ghost” and real workers is high. There is always controversy when it comes to salaries of workers in the country. Yet, all political office holders at local, state and federal levels of government across the country earn the same wage depending on the office they occupy.

When wages of political office holders are to be paid, there is no debate.

Most Nigerians have not forgotten the revelation by a former governor of the

Central Bank of Nigeria, now the Emir of Kano, when he called for the reduction in the cost of governance in the country. He said that “at the moment seventy percent of the federal government’s revenue goes for payment of salaries and entitlements of civil servants, leaving thirty percent for the development of 167 million Nigerians.

That means that for every Naira government earns, 70 kobo is consumed by civil servants.” The practical result of this huge cost of governance is that only about thirty percent of the nation’s total revenue is spent on capital projects. This is essentially the reason why capital projects are poorly funded resulting in either incompleteness or abandonment of projects across the country. That is why the government had to embark on borrowing to maintain its vast bureaucracy.

Those in favor of an increase in minimum wage must hold government at all levels accountable. The government according to the 1999 Constitution is mandated to control the economy, secure the maximum welfare, and ensure happiness of every Nigerian on the basis of social justice and equality of status and opportunity. It is the responsibility of those in government to manage and control the nation’s economy effectively. How can anyone reasonably accept the theory that a minimum wage of N30,000 (US$ 90) per month cannot be paid by Nigeria which is the

largest oil producer in Africa. Whilst the federal government has tacitly approved the proposed minimum wage of N30,000, states governments have insisted that they can only afford N22,500. So, what is the real minimum wage?

For workers in Nigeria to earn a living wage, there must be a comprehensive staff audit and job evaluation to determine right size of civil servants at local, state and federal levels.

The cost of maintaining the number of civil servants in the country is unsustainable. Efforts must be made to further amend the 1999 Constitution to reduce the size of the federal cabinet. The number of special advisers and special assistants serving in government must be reduced. The bogus salaries of governors and their pensions may have to be revisited.

The annual pension for an ex-US President, according to a source, is about $257,800. An average pension for a “retired” Nigerian governor is $549,450.6 according to the same source. Yet state governments cannot pay N30,000 ( $90.0) per month minimum wage. This writer shares same sentiments with those who believe that the time has come to make necessary constitutional amendments to save Nigeria from bankruptcy.

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Renewable power in Nigeria: Progress report

Rafiq Raji “Dr Raji is chief economist at Macroafricaintel. He was previously an Africa Economist at Standard Chartered Bank, London, UK. (Twitter: @DrRafiqRaji)”

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enewable power sources are ascendant. China is leading the way, with a quarter of global solar capacity and a third of wind power output. Until recently, the cost of solar panels fell as economies of scale made each unit cheaper for the dominant Chinese manufacturers. But the unfolding trade war with America, which resulted in tariffs being imposed on Chinese-made solar panels, has added to costs. That is not stopping the rise of renewables. “In 2016, cumulative solar PV capacity reached almost 300 GW and generated over 310 TWh, 26% higher than in 2015 and representing just over 1% of global power output”, says the International Energy Agency (IEA).In 2016, “cumulative grid-connected wind capacity reached 466 GW (451 GW onshore wind and 15 GW offshore wind) and wind power accounted for almost 4% of global electricity generation.”

Given the prevailing trends, what are the prospects for renewable power in Nigeria, one of Africa’s most

Chima Christian and Oseloka H. Obaze Chima is a Research Associate at Selonnes Consult, Awka. Obaze is the MD/CEO, Selonnes Consult in Awka.

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oney politics and campaign finance remain topical, disconcerting and divisive issues in Nigeria. The challenges they pose are further compounded by vote-buying and prohibitive filing fees charged by the political parties.

Challenges to political candidacy in Nigeria are legion. Aspirants to public offices in Nigeria are hardly incentivized by prevailing financial requirements. Indeed, credible and qualified Nigerians are being leveraged out of running for public offices.

Those who run might as well adopt the #NotTooPoorToRun mantra.

Disenchantment with spiraling costs of recent primaries by the All Progressive Grand Alliance, the All Progressives Congress, and less so, the People’s Democratic Party, continue to trend on the national media and airwaves. At fault, is the APC ruling governement, the Independent National Electoral Commission (INEC) and the variuous political parties. For the aspirants, it boils down to very limited choices; especially in the absence of independent candidacy.

Cost of obtaining an Expression of Interest and Nomination Forms, two necessary prerequisites for aspirants is humongous. This simply means that Nigeria’s electorate is

voracious energy consumers?“The prospect for renewable energy in Nigeria is quite enormous and there are opportunities for the development of grid-connected solar, wind, and geothermal power projects,”says Kayode Omosebi, energy analyst and head of research at ARM Investment Managers, a leading Nigerian investment banking firm.“Nigeria is endowed with abundant energy resources, both conventional and renewable, which provide her with immense capacity to develop an effective national energy plan,” Mr Omosebi adds.

More solar In line with the government’s desire to have 25 percent of Nigeria’s power mix be via renewables by 2019 and about 40 percent by 2030, more than $20 billion of solar power projects are either planned or under construction. There is the $479 million 300MW Shiroro Solar Power project on the grounds of the Shiroro hydroelectric dam in northcentral Nigeria, and the $5 billion 3,000MW utility-scale solar photovoltaic (PV) projects by SkyPower and FAS Energy in Delta State in the Niger Delta region. In collaboration with Arrow Capital, an American firm, the University of Ilorin, located in the country’s middle-belt, is also constructing a 500MW solar power plant at a cost of $2.3 billion. Another is the $1 billion 1,000MW FirstGate solar power farm in Kogi State in northcentral Nigeria. There are numerous other projects on a smaller scale.

“Solar is a major renewable energy resource in Nigeria from a geographical perspective, and consensus projects that Nige-

‘ Solar is a major renewable energy resource in Nigeria from a geographical perspective, and consensus projects that Nigeria has the potential to generate 600,000MW by deploying Solar PV panels from just 1% of Nigeria’s land mass

’ ria has the potential to generate 600,000MW by deploying Solar PV panels from just 1% of Nigeria’s land mass,” says ARM’s Omosebi. “The high level of solar radiation in the northern part of Nigeria makes it easy to utilize solar power generation in the northern part of the country to steadily increase the power

generation capacity in Nigeria.”

Regulation The regulatory environment for renewable energy in Nigeria is favourable. And judging from the number of ongoing solar power projects, investors think so too. ARM’s Omosebi explains the specifics: “In terms of policies, [the] Nigerian Electricity Regulatory Commission (NERC) has recently issued a Regulation on Feed in Tariff for Renewable Energy Sourced Electricity in Nigeria (REFIT Regulations) passed in December 2015, which provides for the tariff framework for renewables…

The REFIT Regulations indicate that the government has set an on-grid target for solar renewable generation of 380MW by 2018. This means that there is a deliberate drive by the government to ramp up electricity generation from solar sources.”

Hydro still main renewable focus But for sometimes unpredictable and meagre rains, hydropower has proved reliable. Large dam projects can sometimes beunwieldy and take too long to complete, however. One such project is the longsuffering3,050MW Mambilla hydropower project in northeastern Nigeria; besieged by corruption hitherto. Now underway with a Chinese contractor, the $5.792 billion project is expected to be ready by 2023, if all goes according to plan.

Other ongoing hydropower projects include 40MW in Kashibila, 30MW in Gurara, 700MW in Zungeru, and 29MW in Dadin Kowa. Wind power has not enjoyed as much enthusiasm, however. That relative to solar power, wind power systems require greater maintenance and are not so

practical for residential use, are some reasons why. In this regard, there is only one major project: the 10MW Katsina Wind Farm in Rimi Village in northwestern Nigeria.

Make cheaper Still, “renewable, except hydro, today can’t replace other sources of energy due to [the] intermittent [nature] and the high cost of storage.

Storage will become cheaper but it’s not clear when wind and solar will serve as real alternatives both in terms of the amount of power available and the cost. It is also not clear that it will be able to properly serve dense urban areas without some form of grid, since the roof space per person is small you will need the solar panels or wind farms to be away from the households that they are serving,” says an experienced investor in the power sector.

Yet judging from the trends thus far, solar power is likely to increasingly gain traction. Off-grid solar power would be a challenge in urban areas, however. But as it is ideal for rural and agricultural communities, it would free up the grid to serve more power-hungry urban areas via other power sources; which although not environment-friendly, would not be as harmful as less power would be needed from them. With government regulation in place, what would really drive renewable power sources like solar in Nigeria and elsewhere is if it becomes cheaper than other sources.

• An edited version was published

by African Business magazine in October 2018

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Pitfalls of Nigeria’s hyper-monetized electoral value chain being disenfranchised of true representation. Some, who won their primaries fairly, are being dropped for the so-called “lack of financial capacity.” Others were simply rusticated and their tickets given to the highest bidders.

Published electoral fees by the leading political parties, the All Progressives Congress, and the People’s Democratic Party, were scandalously high and drew understandable condemnation. For the presidency, the ruling APC, requested N45 million; and the opposition People’s Democratic Party (PDP), not-sopaltry N12 million.

Govenorship contestants in APC paid N22.5 million, compared to PDP’s N6 million. APC Senatorial and House contestants paid N7 million and N3.2 million respectively for forms, while their PDP counterparts doled out N4 million and N1.5 million respectively.

Comparatively, on a per capita basis, it’s cheaper to run for public office the United States of America than to run in Nigeria. To run for Senate in the United States in the Democratic or Republican Party, a contestant is required to pay a nominal filing fee of US$5,000. The Nigeria equivalent of that fee is $19,000 for the APC and $11,000 for the PDP. A deeper assessment reveals that the high cost of forms results from larger societal failings. The parties at the state and local levels are grossly underfunded. Many state, local government and ward offices of political

parties, in all cases, still find it difficult to self-administer. Most registered political parties don’t even have offices, as required by law.

Any meaningful quest for ameliorative measures can start with card carrying party members paying their mandatory dues. The practice by some parties to peg their forms at affordable prices or offer free forms to qualified female and youth aspirants in order to ensure inclusivity is salutary. This gesture contrasts with the practice where vested interests pool resources to buy forms for their usually very rich choice candidates.

As the grim realities of Nigeria’s hyper-monetized electoral space stares the nation in the face, expert observations indicate that “vote buying takes place at multiple stages of the electoral cycle in the country and has been seen eminently during voter registration, nomination period, campaign and Election Day.” Societal values and orientation add to the present challenges. There is the burden of undue expectation or a skewed sense of entitlement. Commonly, within Nigeria’s voting electorate, a high percentage decide who to vote for, not based on competence or qualification, but by asking, “What has he/she done for the masses?”

Naturally, any aspirant who has not engaged in running pseudo-charity organizations or the so-called constituency empowerment programmes, which includes paying school fees, hospital bills, sponsoring free medical missions, sharing sandals to school

students, bags of rice to their parents, etc. may well forget being elected.

Whereas altruism remains a noble cause, in Nigerian politics it has been elevated by the electorate as the principal, if not sole criteria for political support. The resultant effect - a dubious corollary - is that such disposition contributes to the spiraling cost of running for public office, while shutting out qualified people with modest means from partisan politics.

Money is also the dominant determinant in party primaries. Securing party nomination requires aspirants to shoulder the responsibility of mobilizing delegates and providing cash, hotel accommodation and catering for their welfare. Perhaps the best kept secret is the “security vote” and “logistics support” funds doled out during general elections to security agencies, deployed to the constituency and geographical space where one is contesting.

Similarly, hired thugs demand their “fair share of democratic dividends.” It remains common knowledge that a coterie of political stakeholders including INEC officials, party chieftains, traditional and religious leaders, and other influencers, exert a huge financial burden on candidates, who seek their implicit or explicit endorsement.

The pitfalls of Nigeria’s hypermonetized electoral value chain will neither dissipate nor disappear overnight. Its sanitization must be robust.

Motivational and causative factors that constitute such pitfalls have been

identified. But a heady question still needs to be asked. Why do people sell their votes? Of the lot, the widening trust gap between leaders and the led, poverty and corruption top the list.

Nigeria’s political elite are notorious for abandoning campaign promises. Reflexively, citizens believe that the only guaranteed benefits are those material inducements they receive before the conclusion of the electioneering process, hence the demand for instant gratification. Left unchecked, this mutual distrust between candidates and the electorate will continue to fuel the pernicious culture of instant gratification.

Additionally, political offices in Nigeria are not necessarily won by the most qualified or most popular candidates, but by the highest bidder, oftentimes, the incumbent. In conceding defeat in the 2017 Anambra State governorship election, Osita Chidoka, the United Progressives Party (UPP) candidate said, “from the ballots, we heard the voice of our people. We heard it loud and clear… they voted for the highest bidder.”

Whereas the “highest bidder” remains the huge elephant in the electioneering room, it is distrust, poor orientation, poor voters’ education, poverty and apathy that combine to pervert the electoral process in Nigeria.

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Frank Aigbogun editor Anthony Osae-Brown DEPUTY EDITORS John Osadolor, Abuja Bill Okonedo NEWS EDITOR Patrick Atuanya EXECUTIVE DIRECTOR, OPERATIONS Fabian Akagha EXECUTIVE DIRECTOR, DIGITAL SERVICES Oghenevwoke Ighure GENERAL MANAGER, ADVERT Adeola Ajewole ADVERT MANAGER Ijeoma Ude FINANCE MANAGER Emeka Ifeanyi MANAGER, CONFERENCES & EVENTS Obiora Onyeaso SUBSCRIPTIONS MANAGER Patrick Ijegbai CIRCULATION MANAGER John Okpaire DIGITAL SALES MANAGER Linda Ochugbua GM, BUSINESS DEVELOPMENT (North)

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GM, BUSINESS DEVELOPMENT (South) Ignatius Chukwu

Tuesday 20 November 2018

Time to demand concrete economic management plans from presidential candidates

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ast week, the Statistician G eneral of the Federation, Yemi Kale, came out to say the agency couldn’t complete work on the unemployment figures this year because of funding challenge as only about 25 percent of the agency’s budget has been released to it. While some were quick to read political motives into the nonrelease of money to the agency, those familiar with the state of the nation’s finances know that it has more to do with revenue challenge. Even as Kale noted, most agencies of government have only received 10 percent of their capital allocation so far this way. Truth is, for many years now, successive governments could not finance the capital expenditure component of the budget, which is usually between 20 and 30 percent of the budget and had to resort to borrowing.

This year isn’t any different. Last week, Nigeria was forced to raise a new $2.86 billion Eurobond at very high interest rates to fund its N9.1 trillion ($29 billion) budget which has a deficit of N2.4

trillion and could widen if ambitious revenue targets are not met.

But why is it difficult for the government to meet its revenue projections even as oil prices continue to rebound throughout 2018 – up to £72 per barrel at a time? The simple answer is subsidy on petrol. Nigeria currently spends N3.76 billion daily and N1.4 trillion ($3.9 billion) on importing petrol. How do we rationalise spending $3.9 billion on a crippling subsidy on fuel when 100 percent of its capital expenditure is borrowed?

How can we rationalise such expenditure in an economy declared the poverty capital of the world where over 87 million people live in extreme poverty and 8000 people slide into extreme poverty every day. How can we justify this in a country where the health, education and social infrastructure are almost broken and with little or no investments in these sectors? How can we justify this in a country with record high unemployment rate, high dependency rate, security challenges and the absence of right economic policies and programmes that will be a catalyst to lifting people out of poverty?

But the government should be concerned about its debts that keep piling up. As at the end of December 2017, the country’s total debt stock stood at N22 trillion, which is the equivalent of US$71 billion, data from the Budget Office show. The debt stock went up by US$4.4 billion or N1.4 trillion in 2017. A breakdown of the debt shows that US$18.9 billion is owed to external lenders while the balance of N15.9 trillion is owed to domestic creditors. Already, the federal government has exceeded its own target of ensuring that the country’s total debts do not exceed 19.39 percent of economic output or GDP in any year. When the government closed its books in 2017, country’s total debt stood at 20.12 percent of GDP. However, what would have given the government more concern is the rising debt service burden which is beginning to eat up two thirds of government revenues. Debt service consumed a total of N1.8 trillion in 2017. This represents 75 percent of the government actual revenues in 2017. The government is spending an average of eighty kobo of every one naira it earns servicing the debts it

is accumulating. The amount spent on debt service is higher than the N1.6 trillion released for capital expenditure in 2017, of which N1.4 trillion was the amount actually utilized. The country is now spending more money servicing debts than putting in place the infrastructure that will help grow the economy to repay those debts. The government is even seeing a fresh $6 billion from the China Exim Bank for the construction of the Ibadan-Kano rail line.

This is enough to set off alarm bells, but there seem to be a conspiracy of silence. Yet the government has continued to borrow. This is never a sustainable way to run a country or manage an economy. The best that could happen to the country is a return of the pre-2015 crushing debt burden.

This electioneering period will provide Nigerians an opportunity to demand from those who wish to govern the country to explain in clear details their economic management plans and how they will handle the revenue challenge and the crushing subsidy on petrol.

Nigerians must not miss that opportunity or allow sentiments take over.

HEAD, HUMAN RESOURCES Adeola Obisesan

EDITORIAL ADVISORY BOARD Dick Kramer - Chairman Imo Itsueli Mohammed Hayatudeen Afolabi Oladele Vincent Maduka Keith Richards Opeyemi Agbaje Amina Oyagbola Bolanle Onagoruwa Fola Laoye Chuka Mordi Mezuo Nwuneli Charles Anudu Tunji Adegbesan Eyo Ekpo

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Seplat stocks slide to 9-month low in London as oil decline overshadows core license renewal he London-listed stocks of Nigerian indigenous oil and gas company, Seplat Plc, fell to a ninemonth low of 120 Great British Pounds per share Friday as investors concerned over declining oil prices turned a blind eye to the company’s successful renewal of core oil production licenses.

The price of a barrel of Brent crude, Nigeria’s benchmark grade, is at its lowest since March 19, after trading at $66.7 Friday, according to Bloomberg data, on concerns over whether OPEC and its allies can reduce production enough to stanch a global supply glut.

Oil futures are down about 20 percent after putting in a 52 week high early last month and are enduring the longest falling streak since futures trading began in 1983.

The oil downturn has hammered the stocks of mostly upstream oil and gas companies from Seplat to Lekoil, both listed on the London Stock Exchange (LSE). Stocks of Lekoil, a Nigerian oil and gas company listed only on the LSE, fell as much as 3.4 percent Friday to 11.32 GBP, the lowest this year.

Locally-listed stocks have also been affected. The Nigerian Stock Exchange (NSE) oil and gas index was down 0.31 percent Friday, Nov 16, and has slipped 12 percent since the start of the year.

Seplat’s share price fell to a one-week low of N652.7, Friday but is up 4 percent since the start of the year after swinging to profit in 2017 following a difficult 2016 when oil prices tumbled to a record low and production dwindled.

Seplat said last week Thursday in a notification to the Nigerian Stock Exchange (NSE), that it had obtained consent from Nigerian President Muhammadu Buhari, who doubles as Minister of Petroleum Resources, for the renewal of Oil Mining Licenses (OMLs) 4, 38 and 41 for another 20 years in a deal that cost the company $25.9 million (N7.9 billion).

To understand the significance of the deal, Seplat holds a 45 percent working interest in OMLs 4, 38 and 41 and in the first nine months of 2018, production from the licenses accounted for 92 percent of Seplat’s total oil production and 100 percent of its gas production.

The Company is now working with the Department of Petroleum Resources to obtain the updated title deeds in connection with the renewal, according the statement filed with the NSE. “With the extension of the license to 2038 secured, we

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can now invest with confidence long into the future as we seek to further realise the full oil and gas potential of the licenses and continue to deliver value to all of our stakeholders,” said CEO and managing director, Austin Avuru.

In the nine months ended September 2018, Seplat’s rev-

enue increased by 103.9 percent to N173.71 billion from N 85.19 billion in the comparable period of 2017.

The company recorded its best quarterly top-line performance so far in the year, with a three month revenue of N68.92 billion between July

and September, compared to N55.24 billion in the three months through June and N49.56 billion in the three months through March.

On a segmental basis, contributing 77.63 percent to total revenue, oil receipts went up by 96.97 percent to N134.85

billion as against N68.46 billion in 2017, driven by the relatively high oil price environment, with Brent oil price reaching a high of $82.72 per barrel in September.

That helped the company to an average oil realization of USD 71.14 per barrel, which is higher than the USD 46.49 per barrel

116 114

achieved in 2017.

Supporting revenue growth, following the sustained production activities and increased uptime, working interest for oil production ranged around 25,696 barrels of oil per day (bopd) which was higher than the 15,183bopd in 9M2017.

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INSURANCE

AirPeace to disburse 70m for Nigeria’s first centre for non-violence, peace studies

Insurance stocks slide to year to date loss of 14.58% in refection of broader index

IFEOMA OKEKE

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irPeace has disclosed plans to set up Nigeria’s first centre for non-violence, peace studies at the Chukwuemeka Odimegwu Ojukwu University, formally known as Anambra State University.

This is as the airline also promised to disburse a sum of N70million to ensure the centre kicks off in a bid to reduce violence and promote

peace in Nigeria.

Allen Onyema, chairman of AirPeace in an acceptance speech after being confered with an honourary doctorate degree at the Convocation ceremony of Odimegwu Ojukwu University held during the weekend, said he wants to put an end to tribalism, ethnicity and violence in Nigeria through the centre.

Onyema said the centre will serve as a platform for students to be taught management of peace and crisis and serve as a point to unite

Nigerians from various ethnic background together.

“I will establish a building for the centre and will give a sum of N70million to the university for this project,” the chairman said.

Onyema who said he was delighted over the honourary doctorate degree said Nigeria should de-emphasise ethnicity and promote peace.

“The incidence of violence in Nigeria is becoming endemic and I want to replicate what I did in Nigeria Delta in this university.”

The airline’s chairman who disclosed that the airline has employed over 4,000 people directly also stressed that education is key to every opportunity.

Speaking on his honourary doctorate degree he said, “I feel so happy being honoured by my own people.

Just few weeks ago, i was lamenting that this country hasn’t given me a national award for all I have done for it. This occasion is a confirmation that the country appreciates all that i am doing.”

TECHNOLOGY

Mobile money agents in fresh push for financial inclusion, launch AFIF JOSEPHINE OKOJIE

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heAssociationofMobileMoney Agents in Nigeria (AMMAN) has launched the AMMAN Financial Inclusion Force (AFIF) to deepen financial inclusion penetration to the unbanked across the country.

According to AMMAN, the AFIF initiative will help compliment efforts of the Central Bank of Nigeria (CBN) to further deepen inclusion rate in the country and ensure that all Nigerians

are financially included by 2020.

“Our new initiative AFIF we just launched is to ensure that AMMAN compliment the efforts spearheaded by the CBN in deepening financial inclusion penetration,” said Victor Olojo, national president, Association of Mobile Money Agents in Nigeria (AMMAN) at the association’s third annual conference held in Lagos recently.

“Also, as an association, we realise that were lagging behind in capacitybuilding, empowerment and fund-

ing, so AMMAN decided to set up this new arm to address such issues,” Olojo said.

He stated that it is essential for every Nigerians to be financially included because it allows every citizen benefit fully from economic opportunities in the country.

He urged the Federal Government to collaborate with mobile money agents in spearheading its Shared Agents Network Initiative, stressing that it will further help to deepen financial inclusion in the country.

“The CBN Shared Agents Network Initiative is a laudable idea but much more still needs to be done to ensure the realisation of its objectives.

One specific thing we are asking, it is that AAMAN should be brought in, because we are on the field and we understand better how the system works,” he said.

According to him, the Federal Government launched the country’s financial inclusion strategy to reduce the rate of financial exclusion to 20 percent by 2020.

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lagued by the sell-offs in the Nigerian market, the stocks in the insurance sector declined last week, as the index that tracks insurers (NSEINS10 index) shed 0.46 percent.

Consequently, the year to date return, which tracks the movement in share price since the start of the year, worsened to -14.58 percent as at the week ended Nov 16.

The sector breadth closed at 1.20 times, reflecting six (6) advancers as against five (5) decliners.

Prestige Insurance rounded off the week as the top performer, after appreciating by 9.80 percent to close at N0.56.

Prestige was trailed by Niger Insurance which gained 9.09 percent and Mutual Benefits Assurance which was up 8.70 percent.

Custodian and Allied Insurance Plc climbed followed with a 6 percent increase while Law Union and Rock rose 5.56 percent.

On the flip side, Veritas Kapital Assurance Plc emerged as the sector’s worst performer, having declined by 14.81 percent to close at N0.23. The non-life insurer

was trailed by Linkage Assurance which shed 8.82 percent. NEM Insurance Plc and Lasaco Assurance were distant third and fourth having declined 4.64 percent and 3.33 percent respectively, while AIICO Insurance was down 1.54 percent.

Analysts at Lagos-based Meristem Securities expect the sector’s performance in the coming week to be dictated by the general market performance.

“However, we do not rule out the possibility of bargain hunting activities on some stocks,” the analysts said.

After strong sell-offs on Thursday, the All Share Index of the NSE, which tracks share price movement, reached its lowest point of 31,864.80, last week, intensifying the losses in the year.

Consequently, the NSE-All Share Index pared by 0.44 percent to settle the Year-to-Date return at -16.17 percent.

The market breadth settled at 0.67x, reflecting twenty-four (24) gainers as against thirty-six (36) decliners for the week.

Unity bank emerged the top performer after a weekly gain of 31 percent while Diamond bank was the biggest loser following a decline of 29.69 percent.

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BANKING

Heritage Bank affirms commitment to youth, sports development

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eritage Bank Plc has restated its commitment to improve youth and sport development in the country, through sponsorship of sporting activities in tertiary institutions.

The MD/CEO of Heritage Bank, Ifie Sekibo affirmed this at the just concluded 14th edition of the West African Universities Game (WAUG) held at the University of Port Harcourt.

The bank recently supported the premier edition of Africa Freestyle Football Championship and continued to sponsor youth entrepreneurial initiatives, particularly, The Next Titan,” a reality television show.

Sekibo, who was represented by a Senior Manager, Oladapo Lawal stressed that the financial institution has strong desire to see young Nigerians succeed in other areas other than what they studied in school, whilst urging government at all levels and private institutions to pay closer attention to sponsorship and innovation.

He stated that Heritage Bank, as the sponsor of WAUG, is working assiduously towards achieving its vision to become a bank of national reckoning for which it was established.

He noted that there is need for institutions to give back to

society through sponsorship.

“Heritage Bank believes in development. These are University Students and we want to level our legacy on University students that is one of reasons we decided to sponsor the event. We have the tenacity to develop and sport is a way of developing youths in the country. We want to encourage the youth and I believe that this type of games are capable of robbing off on the students in future.

“I would advise the federal government to look in this direction, because when we support this kind of project, we are developing our country. The government needs to do more in sponsorship drive of sports in the country, “he noted.

Meanwhile,UNIPORT emerged the overall winner of the14th WAUG, 2018 amassing 125 medals to top the log.

A breakdown of the figures shows that UNIPORT won 75 gold, 26 silver and 24 bronze medals to beat University of Lagos (UNILAG), the first runners up that scored 16 gold, 24 silver and 16 bronze. The second Runners up was University of Cape Coast, Ghana that bagged 9 gold and 16 silver medals.

The football event went to University for Development Studies, Ghana that beat Bayero University,Kano(BUK) 4-2 on penalties after the duo played

out a 1-1 draw within 90 minutes regulation time and 30 minutes extra time.

Declaring the competition closed, the Minister of Education, Adamu Adamu congratulated the winners and indeed all the participants for a job well done.

He commended UNIPORT for organizing what he described as one of the best championships in the history of WAUG. The Minister said university games and sports generally should be encouraged in our institutions to build friendships and bridge barriers among the students in Nigeria and beyond.

He promised that the Federal Government will continue to encourage sports in our schools.

In his speech, the Vice Chancellor(VC) of UNIPORT, Prof Ndowa Lale commended Heritage Bank for its sponsorship to the successful competition. He congratulated he winners and the losers alike. The VC particularly commended University of Cape Coast for coming all the way from Ghana to lift the football trophy regarded as the king of sports.

Prof Lale who said the hosting of the games was not perfect, expressed confidence that subsequent editions will be better.

L-R Bolaji Edu , chief executive officer, Broll Property Group, Nigeria; Chinwe Ajene-Sagna, head business development, Rendeavour, Funke Okubadajo, director, Real Estate, Actis, Nigeria and group managing director, Alpha Mead Group, Femi Akintunde after a panel discussion on The Changing Face of Asset, Property and Facilities Management in West Africa at the 2018 West Africa Property Investment (WAPI) Summit.

ENVIRONMENT

Wecyclers partners Unilever on recycling exchange model

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n line with its goal to address the challenge of waste management through the provision of rewardsfor-recycling model, Wecyclers has partnered leading consumer goods company, Unilever to introduce the Wecyclers Recycling Exchange in Nigeria.

The Recycling Exchange is an innovative response to meet the rising needs of individuals and organizations who want to recycle plastic waste at their convenience. Through the initiative, Wecyclers in partnership with Unilever, Lagos State Ministry of the Environment, the Lagos state Waste Management Authority (LAWMA) and the Cleaner Lagos Project, will open recyclable collection points in five locations across the state with the target of taking up to 10 tons of recyclable waste per day.

Speaking at the launch of the Iyana-Ipaja waste collection centre, the CEO, Wecyclers Nigeria Limited,

Olawale Adebiyi said that Nigeria is not immune to the global challenge of waste management. Every year, over 8million metric tons of plastic ends up in our oceans. Consequently, plastic debris kills an estimated 100,000 marine mammals, as well as millions of birds and fishes. “This situation calls for urgent measures to be taken as solutions to the problems. The Recycling Exchange is a demonstration of our commitment to addressing the imminent environmental impact of waste management in Nigeria.”

Olawale further added that the model deployed in Iyana-Ipaja, Ikorodu, Orile, Lekki and Ajah has been specially designed as an affordable waste management infrastructure for people to embrace the environmentally friendly habit of recycling their waste. “Through this platform households are given a chance to generate value from their waste and provide a reliable supply of raw material to the local recycling industry,” he said.

Speaking on his part the Vice President, Unilever Supply Chain West Africa, Siddharth Ramaswamy, said that it is time for all hands to be on deck to rethink waste management.

The root causes of waste management are complex, but it is clear that urgent action is needed on multiple fronts. One area of direct concern for Unilever is the fact that just 14% of the plastic packaging used globally makes its way to recycling plants, a third is left in fragile ecosystems and 40% ends up in landfill.

On her part, the Corporate Affairs and Sustainable Business Director, Unilever Ghana and Nigeria, Soromidayo George said, “In line with our Unilever Sustainable Living Plan (USLP), we believe that taking little actions like this Recycling Exchange Model of waste management will enable us to move towards a more circular economy, so that more plastic packaging has the best possible opportunity to be reused or recycled.”

L-R: Adetoun Akintunde, wife of the the recipient; Abel Olayinka, Vice Chancellor, University of Ibadan; Femi Akintunde, group managing director, Alpha Mead; and Sesan Ogunyooye, head, marketing & corporate communications, Alpha Mead during UI’s 70th anniversary celebration and the honour of Femi Akintunde a ‘Worthy Ambassador’ of the University on Friday at the University’s Trenchard Hall.

HEALTHCARE

Multi million naira research produces Pyramax drug to fight malaria SEYI JOHN SALAU

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fter a multi-million research investment across Africa that started in 2002 for effective malaria management, Shin Poong Pharmaceuticals Co. Ltd. a Korean company in partnership with a Nigerian firm, Dovizia Pharma services has come out with Pyramax drug to fight the disease in Africa.

In 2015, there were roughly 212 million malaria cases and an estimated 429 000 malaria deaths; however the continent continues to carry a disproportionately high share of the global malaria burden.

The product is an Artemisinin combination therapy for uncomplicated malaria believed to be effective to tackle and manage the ravaging disease.

Currently there are an esti-

mated 100 million malaria cases with over 300,000 deaths per year in Nigeria. Malaria is a risk for 97 per cent of Nigeria’s population while the remaining 3 per cent of the population live in the malaria free highlands.

Since 2002, Shin Poong Pharmaceutical and Medicines for Malaria Venture (MMV) have been working as partners to develop and provide access to Pyramax.

MMV researches and delivers new effective and affordable antimalarial to give populations at risk of malaria a better chance of a healthy and prosperous future.

Rene Cazetien, Shin Poong Pharma operation director said, the launch of Pyramax is necessary because of the burden and prevalence of malaria in Nigeria and the need to fight the disease.

“With Pyramax, a combination of artesunate pyronaridine; a new generation of drugs, we are here to really fight malaria.”

Oladipupo Ojo, the managing director of Dovizia Pharma services said, the partnership with Shin Poong Pharmaceutical will enable Dovizia distribute and market all products from the Korean company in Nigeria.

“As listed on WHO model list of essential medicines in 2017, the clinical efficacy of Pyramax has been proven in clinical trials in some West African Francophone countries”.

According to Abdoulaye Djimde, director DELGEME and head molecular epidemiology and drug resistance unit, “Not only can it be administered to patients of all ages from infants to adults, but it is easy to take, the patient requires no further treatment in 28 days, and it can be given again to patients who suffer from repeated bouts of malaria.

Pyramax will be a most welcome additional weapon for our fight against malaria,” he stated.

Progressives Congress (APC), Governorship Candidate in Lagos State, Babajide Olusola Sanwo-Olu (left) in warm handshakes with, Femi Otedola, the chairman, Forte Oil Plc at a dinner hosted in honour of. Sanwo-Olu,

by Otedola, in Lagos..

L-R: Adenike Adebola, marketing director, Guinness Nigeria Plc, Omotola Bamigbaiye-Elatuyi, marketing manager APNADs, Guinness Nigeria Plc; Isaac Folorunsho Adewole, Minister of Health; Baker Magunda, MD/ CEO, Guinness Nigeria Plc; Titilola Alabi, Sustainable Development & AIS Manager, Guinness Nigeria Plc; Judy Melifonwu, head policy & public affairs, Guinness Nigeria Plc, during the courtesy visit of the Honourable Minister of Health to Guinness Nigeria Plc in Lagos recently.

BUSINESS DAY

Tuesday 20 November 2018

African body tasks media professionals to check spread of fake news … Describes it as threat to democracy Stories by Daniel Obi Media Business Editor

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frican Freedom of Expression Exchange (AFEX) rose from its crucial meeting in Accra, Ghana early this month, with call on media professionals and media professional bodies in Africa to take urgent steps to check and counteract the spread of “fake news” which is now regarded as one of the greatest threats to democracy around the world.

While acknowledging that the deliberate falsification of information and the dissemination of such information are not necessarily the handiwork of professional journalists, the body was nonetheless convinced that professional journalists have a major role to play in checking this phenomenon by providing the public with accurate and reliable information.

The body also expressed concerns about the growing wave of attacks against journalists and the media in general across the African continent, especially during

elections.

It believed that the failure of African governments to live up to their responsibility of protecting journalists as well as other members of the public is exacerbating this problem with numerous cases of unresolved killings of journalists and other crimes against journalists that have not been properly investigated in many coun-

tries, including Somalia, South Sudan, Nigeria, Uganda, and Cameroon.

It noted that the wellestablished norm that the ability of citizens to freely exercise their right to freedom of expression underpins democratic practice in any country. It therefore believed that the deteriorating state of freedom of expression on the African continent is a

clear signal of the decline in the quality of democracy in Africa.

“We find it ironic and contradictory that although African Union (AU) leaders have launched 2018 as the African Anti-Corruption Year, its members are actively hounding the media and media professionals in many countries for reporting and exposing official

corruption”.

The body therefore called on African countries to establish multi-stakeholder national mechanisms, ideally backed by Law, to promote the safety of journalists and other actors who are often targeted for exercising their right to freedom of expression and through which a range of activities in this regard can be coordinated and implemented.

“Such activities could potentially include the reform of media laws, the monitoring of threats and attacks to freedom of expression, as well as the training of members of different stakeholder groups such as the military, law enforcement, security and intelligence agencies; legislators, and member of the Judiciary. The mechanism could also serve as an avenue for the provision of protection for persons at risk and for responding to the problem of impunity”.

The body re-elected Edetaen Ojo, Executive Director of Media Rights Agenda in Nigeria, to serve as Chair of the AFEX Steering Committee for a further period of two years.

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XLR8 clinches International Breweries public relations multimillion Naira account

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nternational Breweries Plc, the Nigerian subsidiary of AB InBev, the world’s largest brewer has appointed leading communications consultancy, XLR8 to manage its public relations. The appointment which is sequel to a competitive bid, will see XLR8 taking responsibility for all of the company’s corporate as well as brand-related communications.

International Breweries is home to celebrated global brands like Budweiser, Castle, Castle Lite and a host of rave-making Nigerian brands like Hero, Trophy, Beta Malt, Grand Malt and many more.

Last August, it formally commissioned its fourth brewery in Nigeria, the $250million Gateway Brewery Sagamu, is one of the biggest brewery plants in Nigeria and across West Africa.

According to Otunba Michael Daramola, the company’s Legal and Corporate Affairs Director in a statement , “we are building an organization to last – brewing quality beers that consumers love and building brands that will continue to bring people together for the next 100 years and beyond.” He added that “evidently, we need excellent partners on this journey

BHM links growth to process automation Expert shares winning strategies for brands

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HM, a media and communications group recently appraised its growth strategy and achievements in the last 12 years and said the easiest way to sustain the current growth was to embark on complete process automation using technological tools, SAP. According to the CEO of the company, Ayeni Adekunle, the enterprise Software company was selected after “series of due diligence to support the growth strategy, recording another first for

BHM by becoming the first media and public relations company in West Africa to adopt innovative business management technology.

I4nnova Limited renowned for innovation and cloud solutions in the technology space became the partner of choice to help BHM group realize its objectives.

I4nnova Limited delivered the project in record time of 3 months and the project includes the integration of SAP business ByDesign (ByD) Cloud ERP for SMEs and SAP SuccessFactors a best in class Human Capital Management solution both cloud based applications.

The highlights of the project include: First successful integration of SAP BYD and Success Factors in West Africa, First SAP ERP and HR cloud adoption in the media industry in Nigeria, Best fit solution for SMEs.

I4nnova Limited is a Technology Company Headquartered in Lagos with presence in Abuja, Ghana and United Kingdom. The company has made significant investment in the development and adoption of technology solutions in Nigeria.

It focusses on innovation and disruptive technologies.

Ayeni Adekunle further said that “The company’s strategy revolves around the culture of excellence that places people before profit, integrity before image and unlimited possibilities before general platitudes”. This strategy has been largely instrumental to the rapid group and expansion recorded in the last 12 years.

The Company has also leveraged this strategy to remain competitive in the market and attained and enviable position in the media and communications industry.

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EO, MultiChoice Nigeria, John Ugbe, delivered a presentation at the Brand Power Golden Icon Awards on ‘winning strategies brands in Nigeria can adopt to win over more customers’. Citing both global and domestic brands, Ugbe highlighted key strategies such as relevance, presence, authenticity, trust, inclusion & representation, responsiveness & sensitivity, listening to customers and consistency. Ugbe went through a gamut of brands that are taking conscious steps towards engaging their consumers in more exciting ways.

Ugbe who was a recipient of two awards at the event ‘Thought Leader par excellence’ and ‘Youth Empowerment through access to information, discussed strategies adopted by other companies. He also disclosed MultiChoice’s tactic for its winning

strategy as a brand. According to him, MultiChoice wins over customers through the right content, the right people, the right technology and the right culture.

The CEO let the audience know that the company was able to accomplish this through material partnerships and financial support, training, master classes for upcoming talent, content acquisi-

tion, co-productions and commissioning of movie projects and increased Nigerian content on the Africa Magic channels.

Ugbe also pressed on the importance of engaging consumers on social media. He ended the presentation with a piece of advice that every successful brand manager knows too well, “For branding to succeed, your consumers have to trust you.”

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Oriflame, Swedish firm identifies Nigeria as its fast growing market in Africa Daniel Obi

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n spite of socio-political challenges, Nigeria will continue to remain a big market hard to ignore, as Swedish foremost beauty company, Oriflame which entered Nigeria only four years ago has confirmed Nigeria as its fastest growing market in 2017 and the second fastest growing mid-size market in 2018.

This is perhaps one of the reasons that prompted co-founder of the 51- year old company, Robert Af Jochnick, in company of his wife to visit the enterprising country for the first time. The company operates in 64 countries globally.

Sharing his dream for Oriflame which has 2.5 million sales consultants with about 25, 000 in Nigeria, Robert while in Nigeria last week said “I am happy to be here in Nigeria for the first time. It is a fascinating country and I believe that Nigeria will be one of our biggest countries in the world for business.

Our biggest market in Africa is Nigeria”.

He said that “Oriflame is one of the leading cosmetics direct sales companies in the world and has high reputation for being honest and serious company with the aim of helping women receive income by representing us and working hard”.

Answering question on why the company was just entering Nigeria, Robert said this is a business decision as the company operates in North Africa, East Africa and “we are happy that we are in Nigeria”.

On the secret of the business survival for more than 50 years, he said the formulation of the product remains unchanged and “our entrepreneurs are now found all over the world. We believe is where the secret of our success lies. Oriflame has remained true to its original concept of natural Swedish cosmet-

ics and an entrepreneurial culture.

“The people behind Oriflame are the reason for much of the company’s success. But how does one run a company with more than two million entrepreneurs all over the world who speak different languages and hold different values, religious beliefs and political convictions?

“The secret here is – culture.

A common culture is an invisible bond. It has the power to unite, enthuse and lead people over borders and boundaries that might

More supermarkets key into Black Friday trend …FoodCo offers discounts to consumers

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ore stores and supermarkets are keying into the Black Friday trend to attract and offer consumers discounts on purchases. Black Friday is the most amazing time of the year, especially in November when massive deals on extreme discounts on products than ever before are made.

One of such stores is FoodCo, a supermarket chain based in Ibadan, Oyo State. In line with its commitment to delivering top-quality, pocket-friendly consumer goods to shoppers in Ibadan, the store, a diversified consumer goods company with interests in retail, fast food and manufacturing, has announced the commencement of its annual Black

Friday Promo holding from the 23rd to 25th of November.

The Promo which applies across all FoodCo supermarket outlets in the city, will see consumers enjoy fantastic discounts across a selection of items including groceries, FMCG, electronics, cosmetics, household items and furniture, among others.

Speaking on the event, Solomon Huesu, Marketing Manager of the company, in a statement said: “We are excited to announce the start of the 2018 season of the FoodCo Black Friday Promo. The Black Friday Promo has been instituted as an annual price slash where customers could enjoy massive discounts on all products on sale across all FoodCo supermarket outlets in Ibadan.”

“This year, we opened the seventh FoodCo outlet in Akobo, with plans for further expansion in the near future. We can only have grown this far because of the unwavering loyalty and support of our teeming customers across the city. The Promo is our way of showing appreciation to the people for making us their shopping centre of choice in Ibadan. We assure everyone coming into our stores that they are in for huge bargain deals across all FoodCo stores this weekend, from the 23rd to 25th November.”

Continuing, Huesu stated that, “The FoodCo brand is entrenched in the community life of Ibadan and has built a strong reputation as a dependable neighbourhood ally with supermarkets and fast food outlets strategically spread in close proximity to customers. Our success story is built on the integrity of our offerings as we have strict quality control and quality assurance systems that guarantee the finest quality at every point of the value chain. Consequently, our customers have come to depend on us for the best quality goods at the most competitive prices in Ibadan.”

Founded in 1982 as a stall for high quality fresh foods in the Bodija area of Ibadan, FoodCo is currently one of the largest supermarket chains in Oyo State.

otherwise separate them. The Oriflame culture gives each person the freedom to set their own targets, income and working hours. It is a culture that is based on respect for and belief in others.

“We have given millions of people the opportunity to change their lives for the better – an opportunity that many have taken to achieve their dreams. We have given people in Russia, Europe, Asia, South America and Africa the opportunity to start their own business, often in countries where the freedom to do business was discouraged or restricted to a self-appointed elite”.

Also speaking, Amir Mortazavi, Vice President and Head of Africa and Iberia, said the company has seen increase on women that want to do business and increase their business with Oriflame. “We provide opportunity to them to earn income and build their future.

“It is amazing that in 4 years, we are able to have about 25,000 people working with Oriflame. We have also given out almost N1b in cash rewards to the consultants, travelling and training opportunity to the consultants.

The Swedish Ambassador to Nigeria, Inger Ultvedt who accompanied Jochnick on the visits commended the company in its business expansion efforts but encouraged the management to think of opening plant in Nigeria.

Gov. Ambode to preside over 2018 BJAN annual marketing conference

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he Lagos State Governor, Akinwunmi Ambode is expected to preside over the 2018 Annual Brand and Marketing Conference and Awards scheduled to hold on November 23, 2018 at the Lagos Chamber of Commerce and Industry, LCCI House, Nurudeen Olowopopo Drive, Alausa, Lagos.

The Annual marketing conference organised by Brand Journalists Association of Nigeria, BJAN, started in 2013 and this year theme is Brand Lagos: Opportunities, Challenges, Lessons.

The conference, which has Lolu Akinwunmi, former Chairman of Advertising Practitioners Council of Nigeria/Group Managing director, Prima Garnet Africa as the Guest Speaker/Keynote will also witness Ken Onyeali-Ikpe, Group Chief Operating officer, Insight Redefini; Steve Ayorinde, Commissioner for Tourism, Arts & Culture, Lagos state; Mansur Ahmed, President, Manufacturing Association of Nigeria, MAN; Mike Dada, CEO, PRM Africa, Odion Aleobua, Modion Communication and Ijedi Iyoha, Acting Registrar, Advertising Practitioners Council of Nigeria, APCON as discussants.

African Movies Channel to deepen content production of African movies with launch of AMCOP

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frican Movie Channel (AMC) is set to deepen content sourcing and production with the launch AMC Original Productions (AMCOP), an initiative that set the movie channel into the development and production of its own movies and TV Series.

African Movie Channel is already well known for its superb Nollywood movies and compelling content catalogue. Over the years, through its three channels – African Movie Channel (AMC), AMC Series and Nolly Africa, it is maintaining an international presence.

“With this launch, AMCOP takes film making to a whole new level, demonstrating its dedication and passion for excellent African storytelling by home-grown talent,” said Yinka Mayungbo, the co-founder of AMC.

MultiChoice unveils FestiveTogether Campaign offer

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ideo entertainment company, MultiChoice Nigeria recently unveiled a special campaign offer to treat customers on its DStv and GOtv platforms to a memorable festive season.

The campaign tagged #FestiveTogether will see family and friends get together to celebrate the upcoming festive season with specially curated content on DStv and GOtv while also enjoying discounts on the Explora and HD decoders.

All new and existing customers can now purchase the Explora, dish kit with one-month Compact subscription for only N29,900, which was previously N52,100 while the HD decoder, dish kit with one-month Compact subscription will go for only N9,900 from a previous price of N11,900.

Livespot leverages digital disruption to compete in IMC industry SEYI JOHN SALAU

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ntegrated Marketing Communications (IMC) in Nigeria have faced some challenging moments with shifting clientconsumer preferences, consistent changes in technology, and the disappearance of big budgets, which has made it inevitable for players in the industry like Livespot, a 360 media company to leverage digital disruption to stay afloat and grow bottom line .

“We define and grow exceptional brands through a carefully refined system of ideation and creative development, leveraging our extensive resource network to communicate the brand and its personality across physical and digital platforms,” said Deola art Alade, the CEO of Livespot at a recent media day held at the Livespot Ikeja office, Lagos.

According to Dare art Alade, the executive creative director of Livespot, “The creative revolution Livespot brings to the marketing industry is based on years of commendable work and a track record of excellence.

Tuesday 20 November 2018

LegalPerspectives

C002D5556

With

BUSINESS DAY

19

Odunayo Oyasiji

Misrepresentation in contract

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i s re p re s e n tation can either b e a statement in writing or oral. The statement that forms the basis of misrepresentation usually induces the party to whom it is directed to enter into a contract which ordinarily he might not have entered into. There are different types of misrepresentations- fraudulent misrepresentation, innocent misrepresentation and negligent misrepresentation.

Fraudulent misrepresentation is a misrepresentation that is fraudulently made. It’s a false statement that is made knowing same not to be the truth or made carelessly without being concerned about whether it is true or not. In the case of Sule V Aromire 1951 20 NLR 20– the defendant in an attempt to sell a property made reference to a court judgement that vests the ownership of the property in him.

The judgement was actually in respect of adjoining property. After the plaintiff bought the property, he realized that the land actually belongs to another person. Therefore, he instituted this action against the defendant and the court held in his favour that the representation is a fraudulent one.

Innocent misrepresentation on the other hand is in form of making a statement that is false without knowing that it was false. The person making the statement must not be negligent in confirming the genuineness of the statement. This was the situation in the foreign case of Derry v Peek 1889 14 App Cas 337- In this case, a statutory company was established by the British parliament. The company was meant to construct tramways using animal powers. They could make use of steam power if they obtain the consent of board of trade. The people appointed as directors in the company felt that the board of trade will not object as they didn’t raise any issue in the preliminary process. The plaintiff in this matter bought shares in the company based on this representation from the directors. Eventually, the board of trade didn’t approve it and the company was closed down. The plaintiff then instituted an action for fraudulent misrepresentation. It was held that this will not be applicable in this case as the person

representing have an honest believe in what he was saying.

The statement was not negligent as they have been following the right process without meeting any objection.

Negligent misrepresentation refers to a situation where someone that owes another person a duty of care makes a false statement to the person deliberately or without even bothering to verify that it is true. An important element of negligent misrepresentation is duty of care. Without duty of care then there is no negligent misrepresentation. In Nocton vs. Ashburton 1914 AC 932- A client sued his solicitor because the solicitor advised him wrongly with regards to the security for a mortgage transaction. The solicitor gave the wrong advice because he is going to benefit from the loss of his client. The court held that the representation was negligent and held the solicitor liable.

It must be noted that negligent misrepresentation has been extended beyond just the person to whom the representation is made. Persons who are affected by the representation are also included.

This was properly stated in the dissenting opinion of Lord Denning in the case of Candler

v Crane, Christmas & Co. 1951 2 KB 164-he first identified the people that are mostly liable when he stated that “accountants, surveyors, valuers and analysts, whose profession and occupation is to examine books of account and other things and to make reports on which other people, other than their clients, rely in the ordinary course of business.”

He further classified other people who a duty is owed as- “any third person to whom they themselves (the maker of the statement) show the statement and any person to whom they know their employer is going to show the accounts in order to induce them to invest some money or take some other action.”

The foregoing was well applied in the case of Hedley Byrne & Co Ltd vs. Heller & Partners Ltd 1964 AC 465 –The plaintiff in this case was an advertising agent to Easipower Ltd and wanted to find out if Easipower Ltd was credit worthy. They requested that their bank, National Provincial should do the confirmation for them. National Provincial contacted Heller & Partners the banker to Easipower Ltd for confirmation. Heller & Partners informed them that Easipower Ltd was credit wor-

thy. However, they stated that the information was given “in confidence and without liability on our part”. On this basis, the plaintiff entered into contract with Easipower Ltd and suffered loss. They then instituted this action against Heller & Partners. Heller & Partners were found to be liable for negligent misrepresentation.

However, the phrase “without liability on our part” that was put in the advice absolved them of the liability.

Promissory Estoppel In our day to day lives people make promises and fail to fulfil it. What happens in that situation? We simply move on without making claims as it is just a promise and since nothing is given in exchange for it then no claim can be made.

However, the condition is different with regards to contractual issues. Ordinarily, a contract without consideration (consideration can be in form of a price or something in return) may not be enforceable. The doctrine of promissory estoppel makes such contract enforceable even though there is no consideration attached. An illustration of such situation is where someone (a footballer) approaches you as the head of

a sports centre to discuss taking training classes/sessions for people interested in football. Based on this, you then incurred expenses to put in place the needed facilities and in the long run the footballer changes his mind. You may think that you have no claim since there is no contract.

However, promissory estoppel can help you claim for the cost you incurred by acting on the promise of the footballer.

To claim successfully under promissory estoppel, there is need to establish some elements. They are1. That a clear promise was made.

2. You relied and acted based on the promise.

3. The reliance was a reasonable one and foreseeable by the person making the promise.

4. You suffered injury due to the reliance.

A promissory estoppel punishes the person making the promise for misleading the person he promised. The person is prevented from claiming that it was just a promise and no consideration was given and therefore no contractual obligation exists. An example of where the principle was applied was in the case of McIntosh V Murphy 52 Haw. 29, 469 P.2d 177 (1970) In this case, the defendant employer challenged a decision entering judgment for plaintiff former employee in an action for breach of a one-year oral employment contract. Plaintiff moved 2200 miles from Los Angeles to Hawaii to take the job and was fired prior to the end of the one-year contractual term. On appeal, the court affirmed and held that the action of plaintiff moving 2200 miles from Los Angeles to Hawaii was foreseeable by defendant. Injustice could only be avoided by the enforcement of the contract and the granting of money damages because no other remedy was adequate. The court found that it was also clear that a contract of some kind did exist. Plaintiff ’s reliance was such that injustice could only be avoided by enforcement of the contract.

Therefore, extra caution must be taken in making promises especially in business dealings. Such careless promises if relied on can be enforceable in law even though no consideration was given.

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CEO INTERVIEW

Tuesday 20 November 2018

Tuesday 20 November 2018

C002D5556

BUSINESS DAY

21

Adedayo Ojo

The Managing Director/Chief Executive Officer, Caritas Communications Limited

Interview with Private Sector Leaders

‘Ethics, Reputation, Technology are key to Nigeria’s rebirth’ The Managing Director/Chief Executive Officer, Caritas Communications Limited, Adedayo Ojo in this interview, shares his views on the need for adoption of strong ethical standards, reputation management techniques in business and the adoption of cutting-edge technology, not only in the public relations business but other sectors of the economy. He said that Nigeria’s rebirth will be possible if ethics and professionalism are the bedrock of business practices.

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t has been projected that the economy will grow by 2.5% in 2018.

Has the marketing communications industry recovered from the recession yet?

There hasn’t been a full recovery.

One way the recession affected the industry is that the quantum of funds available for clients to spend on communication and marketing reduced drastically. This is because the economy shrunk significantly.

The way that works is that there is a consequent reduction in liquidity.

Equally, because in a number of cases, results from communication and stakeholder investment programs and projects are rather intangible, there is the erroneous impression by those who don’t understand how it works that such investment are unnecessary. As such, the communication sector suffers.

Therefore, the total revenue available for the public relations, advertising or experiential agencies reduced during the recession.

Secondly, because organizations were challenged to work smarter and more efficiently, they are now asking for more from agencies.

However, this is positive in some way, because it meant that agencies that are unable to deliver superior quality services for the limited available funds will be edged out.

What is your perception of technology adoption in the marketing communications industry?

In the social sciences and humanities, except you have an initial benchmark, it is very hard to measure results, and that is the challenge that most agencies that are not professional face. Another misconception a number of people make is to equate public relations with media relations. This is ridiculous! Media is key for channel communication but what about strategy, research, implementation, measurement?

So, if we approach public relations methodically as it ought to be, one will notice that measuring results is relatively easy and straight forward if one sets objectives succinctly and plots where to go were before setting out. It is just because we tend not to do things the way they ought to be done in this country that get people and organisations into disastrous situations.

This is a challenge that permeates the entire society beyond public relations. And, to fulfill destiny as a nation, we must fix it!

In our profession, we have to

meticulously profile stakeholders, know them clearly, their demographics, social habits, what they do, what they like, how they consume news, what kind of news and information they consume, what are the channels, what time of day do they get it, etc. When you get all of those and focus on it, it becomes clear that these are the things you can’t do effectively without technology. Several years ago, profiling has to be done using such social science tools such as observation and peer reports but today, artificial intelligence (AI) tools are available.

Today a very basic AI program can tell one a little bit about peoples’ personality just by asking a few questions. The advent of technology has helped up to be able to be more exact, even in the humanities and social sciences.

Technology has come to simplify what we do; the challenge is that anyone that does not adopt those tools is going to be left behind. I remember that 15 years ago for instance, even 10 years ago when we started Caritas, we would basically try to get all the newspapers especially since most newspapers were not online in Nigeria. You had to get media executives who would sit down, read every page and mark them. But today, we have acquired several software programs that capture keywords about organizations and even tell us the mood of reportage measured as sentiments.

Technology has come to revolutionize everything that we do including communications and public relations and the sooner everybody adopted that the better. I know that seven to eight years ago, I wasn’t on Twitter, I didn’t know what it was about, even when I knew what it was about, I didn’t bother. Today, in order to understand what is going on and how it affects our clients and how it affects even our own company and how it shapes the future of the business that we are in, it is important to be there. Except one is a participant observer, one cannot get the details nor clearly understand what is going on.

Caritas will be 10 in 2019.

What have you learnt? Have you achieved everything you set out to achieve?

First,10 years in the life of an organisation is relatively small if you look at the very fact that most of the great companies and brands that we know today started decades ago. It’s been an interesting and exciting story and it’s been equally challenging.

Of course, when we started, some of the challenges, hiccups in the economy, were pressing. The 2008 crash of the stock market and the global financial crisis that followed were challenges. Caritas has come through strong and remains focused on its vision and mission. It is heartwarming that we thought there was a gap in the service market and that hypothesis has been validated. This in itself is extremely satisfying.

We started with a clear idea of what we wanted to do. One of the things that I remain very proud of, is the fact we had a very well researched business before we started. In terms of focusing on energy, oil and gas as our primary sector when we started out, that was achieved.

At the risk of being immodest, we are the leading corporate communications consulting company in the energy, power, oil & gas business sector in Nigeria. We pioneered that specialty in Africa.

When we started as a specialized

energy, oil and gas industry-focused consulting company, there was no other one, but since then, a few others have come up. One of the things we planned for was to start from a sector that we are familiar with, where we could very easily demonstrate skill, knowledge, competence and expertise, and from there, move on to other sectors. By the grace of God, we have been able to do that because today Caritas not only plays in the energy oil and gas, we support conglomerates, we support clients in the public sector, politics, NGO’s, financial services, Fast Moving Consumer Goods sector (FMCG), technology and telecommunications. So, we are on track!

The energy sector is volatile.

Do you mediate between host communities and oil majors?

One of the projects that we worked on about four years ago which I think signposts some of the competencies in Caritas was one that was based on first of all, benchmarking

what the relationship, the level of cordiality and rapport between the organization and the primary communities were.

So, we defined that and had a benchmark, we designed a number of programmes which ran over a period of two years. And periodically, we gauge and tested again to see how the communities feel, do they know more about the organization, are there expectations being met? What were their priorities?

The result showed clearly that those programmes worked. The perception of the organization improved significantly.

This was a project where we tested relationship, we had a questionnaire, we had focus group discussions, we had interviews and all types of tool across different sectors of the stakeholders for the client.

From the communities to the regulators, business partners and the media, there was a benchmark when we started the programme, at the middle of the programme there was an evaluation and at the end there the programme, there was an evaluation.

Let’s talk about the Caritas Lead-

ership Reputation Roundtable.

The theme is, “Ethics, Reputation & Technology in a VUCA Economy,” what informed the choice?

If you look at the key words they are: Ethics, Reputation, Technology. These three words are relevant not only to communications or public relations but to the entire economy. If you look at the Nigerian society today, the issue of ethical conduct is at the core of all of the other issues that we have. If at the family level there is proper ethical conduct, it will positively impact child upbringing, household values, the work environment, and indeed the entire society.

If people begin to think more critically about what they are doing, to ask themselves, if is it right, fair or ethical, if it will offend any sensibilities, if people are guided by making ethical considerations about what they do, at home, work, school, church or in the mosque, I bet that things would change.

One of the things that I remember very vividly was that growing up, if you have a friend that came home with you

for the first time, one of the questions your parent will ask is “who are the parents” and if his/her parent happens to have a suspicious background they will say: OH NO! You can’t be friends to the son or daughter to Mr. XYZ. Talking about reputation, I would say reputation is everything, because it is not only what you do but also what you do not do. It is also how you do what you do and what drives you into doing it and how people perceive you at the end of the day.

There is an intrinsic relationship in my view between reputation and ethics. An unethical person in a society that is predominantly ethical will not have a good reputation.

However, today, if you look at what makes up the reputation of either an individual or an organization, it is not only what the person does or does not do, it is also how the person is perceived.

That said, the moment you begin to talk about the mass media, you are beginning to move into technology. So, there is a very close relationship between ethics and reputation. Technology has become a potent factor that affects ethics and reputation.

If you look at what people consume and what people have access to, it has changed dramatically over the last few years. For instance, 20 years ago, you probably will only worry about what television channels your children watch growing up, but today you also have to worry about what kind of sites they have access to on the internet through their phones, the kind of games they play, etc. So you cannot talk about one without the other and we thought that as part of our responsibility to the society, as a company to the society that has made it possible for us to thrive and operate successfully over a period of almost 10 years we need to give back, so we thought one of the things we could do is to bring key leaders of industry to sit down together and talk a little bit about these key issues against the background of the kind of society we are in.

There is so much inter-connectivity between what people do, how it is perceived and what tools, now technology are available and how it can influence each other in one way or the other.

So, we thought that bringing experts, professionals together to talk about some of these issues is timely and then with the elections starting very soon. It is just right to talk about some of these issues.

In 2017, the New York Times reported that Walmart spent over $18million on ads to improve its reputation. What’s your assessment of the attention Nigerian companies pay to their reputations?

There is a significant opportunity for Nigerian companies and even multinational companies based in Nigeria to do more in shaping and protecting their reputation.

There are a number of sectors in the economy that you can describe as being accident-prone and the truth is that if there was more investment in preparedness to deal with emergencies reputation capital will be better protected.

So, with more investment in terms of preparedness for the people, for the organization to determine what it will do if it happens, how you will do it, practicing and training people to do what is right, it will definitely reduce the reputational capital that is lost when the inevitable happens. Crisis preparedness is an area where companies in Nigeria can make a lot of improvement.

Many people believe erroneously that it is only in the energy/ oil and gas companies that you need to do a lot of work around crisis communication and crisis preparedness. It should be everywhere because you cannot be too prepared for emergencies and the more prepared you are, the better for the organization.

There is significant opportunity for Nigerian based companies, whether multinationals or local, to also use more of the expertise that resides in professionals. Most of the companies in Nigeria do not have in-house communication professionals, neither do they retain agencies.

If you get the right professional or the right agency to provide professional advice, you will notice that at the end of the day, it is smarter to do things professionally, because the money you are spending on communication, marketing or advertising can be better deployed.

Indeed, people talk about communication loosely, forgetting that communication is a process involving two parties and in the middle are the channels, and there is a way you can maximize the channels, you can optimize the opportunities in those channels.

All of those things are better done by professionals. Again, it is part of the challenge of the Nigerian society. It is not that there are no laws. For instance, several Nigerian organizations employ people that are not members of the Nigerian

Institute of Public Relations. Several organisations retain agencies that are not members of Public Relations Consultants Association of Nigeria (PRCAN).

They should not. The law establishing the Nigerian Institute of Public Relations is clear.

Regrettably, there is no one who is there to say you must abide by this law. Those are the challenges.

It is part of the challenge we have in most of the professions in the humanities. Most people think they can do most of the things we do in marketing communications but it is not true. Until most organisations try the professionals and the non-professionals, that is when they can see the difference.

What experience gives you the most joy after several years of working in this industry?

There are a number of them but I very proudly remember some of the work that we did while I was at ExxonMobil in 1998 which led to a commendation by ThisDay. I am proud to say that it was the first time a newspaper in Nigeria would commend a multinational oil and gas company on the way the company handled informa-

tion sharing and communication.

That experience has helped us to build a practice that is ready, competent to support other clients on how they proactively manage information especially during a crisis.

What drove you to write the book, Public Relations Thoughts and Deeds?

Wow! I thought it is important I write a book because I have been privileged in several ways. I have had a career that has traversed what ordinarily would be two professions - from journalism to public relations.

I have been able to work as a second generation, probably first generation, of communication professionals in the energy/ oil and gas industry. And when I looked around, I noticed that not many people have the kind of unique experience that I have, and, most of those that have the kind of experience that I have and even more, have not documented their experience. I thought there was need to document what one has learnt and experienced, not only as a way of helping to remember what has happened in the past but also to shape the future.

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Tuesday 20 November 2018

EDUCATION

Weeklyinsightoncurrentandfuturetrendsineducation

Primary/Secondary

Higher

Human Capital

Experts see literacy as crucial to successful industrialisation, sustainable devt

…As Lagos wins Lafarge Africa 5th National Literacy Competition Stories by KELECHI EWUZIE

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or Nigeria to achieve sustainable economic development and also become an industrialised nation there is need to grow the number of educated children and youths, experts have said.

According to them, literacy not only improves the future of everyone in the society, but has also become crucial to economic development.

Tony Anwukah, minister for state, education, speaking at the 2018 edition of Lafarge Africa National Literacy Competition (LANLC) held in Lagos last Thursday, said that only about 57 percent of the adult population in Nigeria is literate even as youth literacy rate is currently less than 70 percent.

Anwukah, who stated that urban literacy surpasses rural literacy rate at a huge ratio of 69.4 percent to 38.5 percent, commended Lafarge Africa for taking literacy to grassroots and giving children from rural areas the opportunity to compete

Mudiaga Enajemoas, Far right (in red hat), Founder MUDI Africa; Charles Majoroh (middle), event chairman, Lagos Branch of Government College Ughelli Old Boys’ Association (GCUOBA); David J. Binitie, president in a group photograph with beneficiaries at the Inspiring Next Generation (ING)” symposium in Lagos.

with others.

Describing the competition as remarkable for the young minds that have been given a chance to strive to reduce illiteracy rate, Anwukah said that the opportunity helps to sharpen their skills and improve their

self confidence, which is essential to their development and future prospects.

Michel Puchercos, chief executive officer, Lafarge Africa, who said that the competition was launched in 2014 as a flagship Corporate Social

Responsibility (CSR) intervention, affirmed that literacy is essential to socio-economic development of a nation.

“We believe that improving the literacy skills of public school children will help secure their future and that of their

Covenant University now centre of excellence on Applied Informatics, Communication …BusinessDay, VC seek intellectual collaboration

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ovenant University, Otta in Ogun State has been pronounced by World Bank as the Centre of Excellence (ACE) for Applied Informatics and Communication.

The university was selected alongside 16 other Nigerian universities from about 154 universities that applied, after several rounds of assessments and screenings.

According to World Bank, the broad objective of ACE impact is to increase quantity, quality and development of relevant postgraduate education in selected universities through regional specialisation. The other universities selected alongside Covenant University include: Obafemi Awolowo University, Ile-Ife; University of PortHarcourt; Redeemer’s Uni-

versity, Ede; Ahmadu Bello University, Zaria; University of Benin; Bayero University, Kano and Benue State University, Makurdi.

Other are: Lagos State University; University of Port Harcourt; University of Nigeria Nsukka; National Open University of Nigeria (NOUN); Federal University of Technology, Owerri; Ahmadu Bello University, Zaria; University of Lagos; Federal University of Technology, Minna and Bayero University, Kano.

Meanwhile as part of its effort to build a stronger partnership, officials of BusinessDay Media Limited paid a courtesy visit to Aderemi Aaron-Anthony Atayero, vice chancellor of Covenant University in his office at Otta.

The visit was to formally introduce the media house

to the Vice Chancellor and explore partnership opportunities with the institution.

Anthony Osae-Brown, editor of BusinessDay, who led the delegation, said the Newspaper is the leading business daily in the whole of West Africa and the most read by people in the business community in the country.

Osae- Brown stated that having already established working partnerships with some leading firms within and outside Nigeria, BusinessDay is now desirous of cementing a mutually benefiting partnership with the University.

He stated that the areas of partnership would include employment opportunity for two best graduates from the school; distribution of copies, internship opportunities

for undergraduates from the university and free media coverage of the university events.

He also proposed that the university should sponsor the education section of BusinessDay, subscribe for copies of the Newspaper for students and regular adverts placement on the newspaper.

Aderemi Aaron-Anthony Atayero, vice chancellor of the University in his response commended the team for the visit and expressed the university’s willingness to partner BusinessDay on robust intellectual engagements that would benefit both bodies.

The vice chancellor assured the delegation that he will go through the proposal and work out an arrangement to make the partnership mutually rewarding.

households. For an initiative that started as a reading project across the five locations in Nigeria where Lafarge Africa is present, the competition has grown into a national event, touching lives,” he said.

He said that since inception, the competition has impacted over 500,000 primary pupils in 886 schools across 544 local government areas. “The competition is organized and delivered across all 109 senatorial districts in all 36 states of the federation and the FCT in partnership with the State Universal Basic Education Commission (SUBEBs), the Ovie Brume Foundation and Thistle Praxis.”

Mobolaji Balogun, chairman, who stated that literacy, without doubt, is crucial to ensuring the sustainable development of any society, said that Nigeria’s current literacy rate cannot deliver its potential for economic development.

“The implication of low literacy rate is dire for a country like Nigeria if a solution is not found urgently. A significant number of the children on whose shoulders the leadership of the country will rest in a

few years, risk being illiterates, unable to compete with their peers in matters of economy, innovation and technological advancement,” Balogun lamented.

He said that recent research findings published by Renaissance Capital shows a strong link between literacy and the industrialisation, adding that literacy rate that is above 70 percent is required for a nation to successful industrialise.

To him, it has become a real source of concern when the recent literacy index data published by the National Bureau of Statistics (NBS) revealed that some states in Nigeria have literacy levels that are lower than 10 percent.

At the end of this year’s competition, Lagos State represented by Kehinde Lawal and Idowu Ayomikun, emerged winner, beating 10 other pupils from Nasarawa, Kano, Rivers, Ebonyi and Gombe.

A breakdown of the result shows that Ebonyi state took the second position; Gombe, third; Nasarawa, fourth; Rivers, fifth while Kano took the sixth position.

‘Only incremental budgetary allocation can save Nigeria’s education sector’

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ducation stakeholders have called for a geometric increment in budgetary allocation to the education sector in order to tackle the challenges bedeviling the sector.

Abimbola Olashore, chairman, Board of Trustees, Olashore International School (OIS), Iloko, Ijesa, Osun State stated this during the unveiling of the school’s 25th anniversary logo in Lagos.

Olashore observed that the 13.2 million number of out-of –school children in Nigeria which is the highest in the world, signals that all is not well with the education system in terms of investment as well as approach to issues affecting the sector.

According to him, “It shows that something has gone totally wrong with our education system and the investment in the sector. There is an urgent need for regular increase in educational budget”.

He further opines that although the private sector is addressing some of these is-

sues, but nothing beats public sector intervention to tackling these issues. We should keep increasing our allocation to the sector, if not this is a ticking time bomb waiting to explode.

He stated that OIS was borne out of necessity to give children the best education, and he is glad that academic excellence and all-round success beyond the classroom has been the school’s success story for the past 25 years.

Derek Smith, chief executive officer and principal of the school observes that for the past 25 years, the school has remained committed to developing future leaders in line with one of the founder’s vision. “One key focus for us as a school is that our students can go anywhere around the world and succeed. What we are doing is not just passing exams but all round success” “For this consistent top level academic performance

by Olashore graduates, I was pleased to receive the 2018 Africa Outstanding School CEO Award.

Tuesday 20 November 2018

BUSINESS DAY

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EDUCATION Focus on special education: Teaching with technology

Isaac Osae-Brown

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ccording to the Technology-Related Assistance for Individual with Disabilities Act of 1968 in the USA, assistive technology is any item, piece of equipment or product system that improves the functional capabilities of individuals with disabilities.

Research reveals that Assistive technology devices can be anything from a simple tool with no moving parts to a sophisticated mechanical or electronic system. Simple mechanical devices are often referred to as low-tech devices, while computer-driven or complex assistive technology may be called high tech.

Technology makes it possible for a classroom to be enhanced with individual

learning events, allowing educators to provide greater flexibility and differentiation in instruction. Teachers can use technology to offer a variety of learning opportunities and approaches that engage, instruct, and support special education students with a myriad of tactics designed to appeal to individual learners.

No longer are students stuck in a classroom they don’t understand, trying to learn at a pace they can’t keep up with or participate in. More amazingly is the emergence of the iPad technology that vividly differentiate instruction by engaging all students through the google classroom and other interactive applications.

There are many ways of how technology can help students with special needs.

For example, some kinds of disabilities don’t allow students to use handwritten text that is an integral part of traditional education. Using technical tools intended for human speech recognition and synthesizing, students can avoid the necessity to use paper and pen during classroom lessons. Such technology would be also helpful for students with disorders that

don’t allow to process visual information correctly.

Today, a non-verbal child can speak with the help of an electric communication device. A student with learning or intellectual disabilities can master math facts and computation using a computer game. A child with vision problems can benefit from an inexpensive device that enlarges printed words on the computer screen. For children with a physical disability, special devices will allow them to input information into the computer without using the conventional keyboard.

In this case, they may use a single switch or some type of voice recognition system.

Assistive technology has increased the ability of those with disabilities to lead independent lives. For those who struggle with speech, augmentative communication devices enable them to voice thoughts and needs by using touch or light-activated keyboards coupled with synthetic speech systems.

These augmentative communication systems help students with speech problems to overcome the communication barrier.

Many devices are available for students with hearing and visually impairments to assist them in the classroom.

For example, Speech and Braille software are used to give audio cues to onscreen visual images. Many hard-of-hearing children can participate fully in regular classroom with the aid of FM listening systems. These devices allow the teacher to talk into a small microphone that transmits the voice directly to the child’s hearing aid.

With the increase in technology in our society today, its use is nowhere more evident than in the classroom. Special educators are required to assess and monitor students’ progress with a variety of assistive technology devices and software. The United States educational standards claim that students with special needs should be provided with opportunities to realise their potential. They should participate in education and training on the same basis as students without disabilities and that they are not subject to discrimination. The African continent, especially Nigeria, can take a cue from this and provide funding to

Education standards are reflective of the quality of teachers

OYIN EGBEYEMI

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school is only as good as its teachers”. This sounds like a simple statement doesn’t it?

Simple as it might be, it is surprising to hear feedback from some parents and review the strategies developed by some leaders and policy makers in the education sector, which do not place strong enough focus on this statement’s importance and its influence on decision making processes.

I worked with the Ministry of Education of a certain State government sometime ago. My mandate was to help them develop a strategy for education in the State. On engaging them, the first issue that became clear was the lack of coherence of the objectives for education within the State.

The segregation of this Ministry meant that it was difficult to put together one strategy that the various parastatals

under it aligned with. They all seemed to be moving in different directions, implementing a lot of stuff and were busy being busy. On asking for their plans, all I received were long laundry lists of infrastructural equipment such as tables, chairs, computers and vehicles. While it is good to have up to date infrastructure at schools, it seemed like they had forgotten the need to invest in other intangible areas such teaching, learning and training.

When I expressed my concerns over this to one of my mentors in the education sector (someone with over 30 years of experience in both public and private education), she told me that high quality teaching far exceeds the need for infrastructure which instructors and children may not even be competent enough to use, particularly in rural areas.

She even made a joke, saying that left to her, she could just teach children basic literacy under a tree, without tables, chairs or computers, and call it a day. To her, the detail that goes into teaching is critical.

It doesn’t have to be complicated, what was important to her was getting the basics right.

So what are the basics?

We could say that the literacy and numeracy capacity of the teachers themselves could count as the basics, and it would be easy to assume that our teachers meet a certain

minimum standard. Studies that have been carried out in various states in the country have, however, revealed that the quality of teachers is actually a dire problem in Nigeria. One carried out by the Education Sector Support Programme in Nigeria (ESSPIN) brought forward concerns over the low numeracy and literacy skills in teachers in Kwara State. What was more shocking was that there was little disparity between the teachers who had graduated from teacher training colleges and universities and those who hadn’t. So this raises the question, “What is going on at the teacher training colleges and other institutions?”

The role of teachers cannot be over-emphasised. It is actually critical to the delivery of quality education. If we don’t get this right, we should be very concerned about the quality of our citizens in the future, especially given the large and fast-growing active population in the country. This is why organisations such as Teach for Nigeria have been birthed and charged with the mission to educate the educators and reach areas that our current system cannot.

Bringing this to the point of view of parents when selecting schools for our children, it is very important that we look out for the standards and quality of teaching at the schools we consider. This might be difficult to do if the parents have

not had any initial interaction with the school, but they could take their scope of their search a little further by observing other children at the school, looking out for any published academic records or even getting referrals from parents at the school they may know. The focus should not be limited to the infrastructure, affordability of school fees or prestige of the school alone (even though some of these other factors are important).

Finally, taking this to the perspective of schools’ Management, it is imperative that they invest in their staff and teachers, ensuring that they are well equipped with the right skills and tools to improve the effectiveness of their teaching methods and delivery, through training, constructive feedback sessions and other capacity building initiatives.

Schools could also go beyond this and provide additional incentives that would improve the well being of their staff and teachers, including good welfare packages, awards and other things that would make them feel better appreciated and more empowered.

Quality education is really reflective of quality delivery.

All stakeholders in the education sector should not take this for granted in their decisionmaking processes.

Oyin Egbeyemi is an executive administrator at The Foreshore School, Ikoyi, Lagos.

make available adequate assistive technology personnel to provide services to educators and all students with special needs.

Implementation of technologies in special education allows simplifying the communication and improve the academic skills of students with special needs.

Computer technologies have also narrowed the gap of lesson delivery in schools across the world. Neat and intuitive web-based chatting applications allow creating online classes that help students with special needs to communicate with each other and the teacher. Such virtual classrooms allow both learners and teachers from different parts of the world to participate in live classes. Low cost of such an approach to the educational process is one of its main advantages. All that is required is a laptop or tablet with access to the internet. The use of technology in special education classrooms helps break the barriers for people with disabilities and provide them with access to the most relevant educational programs. Properly designed software and hardware allow

students with special needs to get modern education and achieve any required information online.

Technology helps provide students with special needs with individual learning events, enables reaching higher flexibility and differentiation in educational methodologies. Indeed, the impact of technology in the classroom is enormous creating appropriate programs and events that have gone a long way to improve students’ learning and social bonding. This is evident from the collaborative outcomes that have emerged from the social media where many students with special needs engage with other student buddies to acquire life skills that enhance normalization and self-determination.

Isaac Osae-Brown works for the Compton Unified School District in California as an Education Specialist and a beginning Teacher Mentor.

He is a resource person, an advocate and a speaker for Special Education services in the United States and abroad. www.facebook.com/inclusivemindset

Greensprings offers scholarship for world-class Education

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reensprings School as part of its commitment to offer quality education to students across Nigeria, announces its annual scholarship examination for entry into Year 7 and the post-secondary International Baccalaureate Diploma Programme for 2019 – 2020 sessions.

The school will offer scholarships to candidates who perform exceptionally well in the 2019 examination into year 7 and IB Diploma Programme (Sixth form) slated for Saturday 15 December 2018 by 9:00am in Port Harcourt, Abuja and Lagos.

Lai Koiki, chief executive, Greensprings School observes that the school prides itself in its achievements and the scholarship examination is a way to support excellence by providing scholars a platform to experience wellrounded education.

Over the last couple of years, the school has shown tremendous growth in its educational services to students and parents.

Koiki said the school is consistently redefining education in Africa and strongly believe that every child deserves a well-rounded education. According to her, “Children require a solid foundation to become global citizens to enable them con-

tribute immensely to their communities. The scholarship programme will give students the opportunity to build up skills they can draw from for the rest of their lives”.

She further stated that in partnership with Thinking School International, Greensprings is authorised as the principal Thinking School in Nigeria, deliberately training 21st Century learners in ‘thinking skills’ which is needed for helping students to build up their meta-cognition and growth-mindset capacity to the highest capacity.

Enumerating achievement from the school, the educationist said that in 2018, five students from Greensprings School were honoured at the British council where they received the Cambridge- outstanding learner awards.

These awards include; Top in Country for Arts and Design, Top in Country for Drama, Top in Country for Accounting, Top in Country for Global Perspectives and Top in Country for Literature (English).

Last year, six Greensprings students also received the Cambridge - outstanding learner awards from the British council. In that list was Honour Olatunji, who emerged top in the world for Mathematics in the Cambridge IGCSE.

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Tuesday 20 November 2018

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Energy Report Oil & Gas

Power

Renewables

Environment

NNPC imports 12.30bn litres of PMS in eight months

Sahara Power group partners with South Sudan for power development

…Underscores Nigeria’s thirst for refined petroleum products …Four state refineries stay fallow

Olusola Bello

STEPHEN ONYEKWELU

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rom January to August, the Nigerian National Petroleum Corporation imported 12.30 billion litres of premium motor spirit (petrol), underscoring Nigeria’s huge market for refined petroleum products but stateowned refineries have continued to perform sub-optimally.

Over the last four decades, Nigeria has consistently struggled to keep its refineries functioning optimally.

Despite having a nameplate refining capacity that exceeds demand, Nigeria ranks as the third highest importer of petroleum products in Africa, importing over 80 percent of products.

In January, Warri Refinery and Petrochemical Company (WRPC) utilised 0.00 percent of installed capacity, Portharcourt Refining Company (PHRC) utilised 20.70 percent and the Kaduna Refinery and Petrochemical Company (KRPC) utilised 4.70 percent of installed capacity, according to the latest NNPC’s Monthly Financial and Operations Report for August 2018.

Meanwhile, Nigeria’s African peers are in the race to grow refining capacity and become net exporters of pe-

troleum products. West and parts of southern Africa could see up to 1 million b/d of new refining projects come online in the next five years, as the region is finally taking to steps to reduce its reliance on imports for its fuel needs.

However, in February, PHRC inched up to 24.60 percent of capacity utilisation from 20.70 percent in January but fell to 0.00 percent in March but up again to 12.80 percent in April.

The WRPC jumped from 0.00 percent of capacity utilisation in January to 8.30 percent in February and 51.30 percent in March. Similarly, the KRPC stayed dormant at 0.00 percent in February

and March.

The refineries lost a total of N68.12bn in the first six months of this year, making a profit of N928.81m in April, for the first time in 10 months, according to the data from the NNPC. In April WRPC lost momentum and operated at below 5.00 percent; PHRC operated at 12.80 percent; KRPC operated at 0.00 percent. In May WRPC shot up to 46.60 percent; PHRC 14.90 percent; and KRPC operated at 0.00 percent. In June only WRPC and PHRC worked at 27.00 and 27.70 percent of their capacity. In July WRPC operated at 17.20 and 10.70 percent in August; PHRC and KRPC

operated at 0.00 percent for these two months.

Refining in Nigeria began a decade after oil was discovered in the oil-rich Niger Delta region in the 1950s. Initially starting in 1965 with a refining capacity of 38, 000 barrels per day, Nigeria’s refining capacity has grown over the years and is considered the fourth largest in Africa. The nameplate capacity of 445, 000 bpd is housed by four refineries strategically located in various states around the country: Rivers, Delta and Kaduna.

“Some conditions are necessary to get the refineries working again. Access to funds is critical because Nigeria does not have the money to revamp those refineries. Deregulation of the downstream sector is critical too because no private investor will put down for as long as the sector remains as it is” said Henry Ademola, team leader, Facility for Oil Sector Transformation (FOSTER), a project under the Oxford Policy Management, an international development consulting firm.

To help deal Nigeria’s refining capacity gaps; the Federal Government had initiated the modular refineries campaign.

However, 25 out of the 45 licenses issued to companies to construct such refineries may have expired.

n keeping with its vision to ‘Light up Africa’, Sahara Power Group (SPG) has signed a Memorandum of Understanding (MoU) with the South Sudanese Ministry of Energy & Dams to develop the country’s power sector in the generation, transmission and distribution spaces.

The MoU would enable Sahara Power, one of Africa’s largest vertically integrated utilities companies expand the remit of its East African operations as well as develop the infrastructure necessary to grow the power sector and engender capacity building for economic transformation.

Kola Adesina, group managing director, said “We consider this to be another landmark and major milestone in our quest to facilitate fast paced development in Africa through seamless power supply. We are already working with the Republic of South Sudan (RSS) to develop a dedicated crude oil processing plant to guarantee steady and adequate supplies to the power plants as and when needed.

We believe this sort of endto-end approach is necessary to make electricity a

readily available resource to the people of South Sudan.”

The RSS and SPG would also collaborate to develop transmission backbone infrastructure and the establishment of the grid code. There will be further collaboration between the two parties on the Environmental Impact Study, Load Evacuation Study and overall project development.

SPG aims to achieve financial close on the proposed transaction in 2019.

SPG is one of the largest privately run power conglomerates in Sub-Saharan Africa with interests in Egbin Power Plant, Ikeja Electric and First Independent Power Ltd. The organization is also working assiduously to launch a scheme to generate power into the sub-region through the West Africa Power Pool.

Adesina concluded “We have high hopes for this partnership with the Ministry of Energy and Dams and anticipate the commencement of the project in 2019.

Developing the power sector brings the government closer to its vision for transforming the socio-economic landscape for the people of South Sudan. We are honoured to have been chosen as a strategic partner.”

million b/d but it may need to offer concrete assurances for Russia to join. The country has said it can maintain profitable operations with oil prices around $70/bbl Meanwhile oil prices have continued a free-fall, as fears of a supply glut mounts and oil producing countries are uneasy. The price of OPEC basket of fifteen crudes hovered around $65/67 a barrel last week according to OPEC Secretariat calculations.

Oil futures too saw about 20% fall after putting in a 52 week high early last month.

The current dip is the longest falling streak since futures trading began in 1983.

Yet OPEC remained upbeat about its forecast for the

oil market. In in its World Oil Outlook (WOO) 2018 released November 14, OPEC said that the world’s primary energy demand will surge by 33 percent from 2015 levels to 365 million barrels of oil equivalent a day (boed) in 2040, with developing economies accounting for nearly 95 percent of this growth.

It also said that India and China are forecast to be the most important contributors to energy demand growth.

OPEC said energy demand in India and China is expected to jump by 22 million boed and 21 million boed, respectively, by 2040—accounting for more than 50 percent of energy demand growth in developing economies.

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OPEC’s new oil supply cap pact suffers setback ISAAC ANYAOGU

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he organisation of Petroleum Exporting Counties (OPEC), a cartel of oil producers is finding it difficult to get its members and some nonmembers like Russia agree on production cuts in 2019 as oil prices continue to take a beating.

Worried by a drop in oil prices due to slowing demand and record supply from Saudi Arabia, Russia and the United States, OPEC has said it is hoping to cut as much as 1.4million barrels per day output in 2019 to shore up oil prices but unlike the 2016 cuts that saw significant compliance, next

year does not seem promising.

According to a Reuters report, citing three sources familiar with the issue OPEC and its partners were discussing a proposal to cut oil output by 1.4 million barrels per day (bpd) but says Russia may not be on board for such a large reduction. Another told the news agency that Moscow may support smaller cuts, most likely by other producers.

Getting all 25 members of the OPEC/non-OPEC coalition with different agendas and priorities to easily align will be an uphill task. The organisation has significant changed from what it was in 2016.

New producers like Congo has been and added and Indo-

nesia has left the club. Nigeria’s production once threatened by threat of militants has been increased to over 1.9m barrels per day including condensate.

Libya’s supply has risen to over 580,000, higher than the figure on which they were granted exemptions. Iran’s production

is threatened by US sanctions and the fear of losing market share provides new motivations.

The oil cartel will meet from December 6-7 in Vienna, to iron out the details that will lead to production cuts of between 1 million and 1.4

Olusola Bello, Team lead, Analysts: Isaac Anyaogu, Stephen Onyekwelu, Graphics: Fifen Eyemisanre Famous.

Email: energyreport@businessdayonline.com, Tel: +234-8023020011; +234-7037817378

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Energy Report

How we have supported infrastructure growth in Rivers State – Shell Olusola Bello

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he Shell Petroleum Development Company of Nigeria Limited (SPDC) says out of the over N41billion disbursed for community projects in Niger Delta, about N15billion went to Rivers State under the Global Memorandum of Understanding.

“Between 2006 and end of 2017, a total of N14.86 billion has been invested by the SPDC Joint Venture in the GMoU clusters in Rivers State, giving communities a highlyvalued opportunity to decide and implement projects and programmes that have a lasting impact on people’s lives,” said the General Manager, External Relations of SPDC, Igo Weli, on Saturday in Port Harcourt at the 2018 edition of the Nigerian Society of Engineers Port Harcourt Branch Week.

Weli, who spoke on the role of oil and gas sector in the infrastructure development of Rivers State, said the SPDC JV funding enabled 19 GMoU clusters in Rivers

State to embark on projects covering health, education, water and power supply improvement, sanitation and infrastructure development.

He added that the success of the GMoU initiative proved what could be achieved when government, international oil companies, communities and NGOs worked together for the common good.

Under the terms of the GMoU, SPDC JV provides secure five-year funding for communities to implement development projects of their choice, which are managed

by Cluster Development Boards under the guidance of mentoring NGOs. On social infrastructure, Weli listed the N1.5billion ultramodern library donated by Shell to the state government to commemorate Nigeria’s centenary celebration, and the establishment of a Community Health Insurance Scheme at Obio Cottage Hospital in Port Harcourt where the average number of patients increased from about 600 to about 7,500 per month in 2017, making it one of the most utilised health facilities in the area. He said

10 other hospitals in Rivers State also enjoyed ‘robust health intervention scheme

by SPDC JV’.

In education, he cited the establishment of the first centre of excellence in Marine Engineering and Offshore Technology at Rivers State University in Port Harcourt in 2017, which has commenced programmes leading to the award of Master’s degrees in Marine Engineering (Power Plants), Naval Architecture and Offshore and Subsea Engineer-

ing. This, he said was in addition to the many SPDC JV scholarship schemes which date back to the 1950s.

On the statutory role of the oil and gas sector in infrastructure development in Niger Delta, Weli noted that each player in the sector was expected to contribute 3% of its annual budget to the Niger Delta Development Commission (NDDC) for the purpose of facilitating the rapid, even and sustainable development of the Niger Delta region into an area that

is economically prosperous, socially stable, ecologically regenerative and politically peaceful. “Between inception of NDDC in 2002 and the end of 2017, Shell companies alone contributed N338.12billion to the commission,” he said.

He noted that the responsibility for the development of communities, societies or states resides primarily with government and community stakeholders themselves. “It stands to reason therefore that abdicating that responsibility for development to the private sector either fully or substantially is, in my assessment, one of the key issues militating against sustainable development not just of Rivers State but of the Niger Delta.”

He frowned on the expectation that private sector should take on the role of government even after fulfilling their statutory obligations to the state and investing as much as their businesses can carry in social investments in the host communities. “This i s n o t su st a i nab l e a n d perhaps accounts for the

steady drop or reduction in investments, hence the dwindling opportunities in employment, contracts, and so on, in the Niger Delta in the past two decades.”

Weli added: “The region is no longer very attractive to investors because of the unrealistic demand and entitlement mindset. The future of the Niger Delta is in the hands of private investors, therefore stakeholders need to re-set their expectations and approach to achieve sustainable growth and development.

Investors are to be wooed and investments, attracted, not taken for granted.”

He therefore appealed for a conducive operating environment to enable the private sector do business profitably without fear so that they could implement social investment projects and programmes.

He said: “For the private sector, including the oil and gas industry to support the state for infrastructure development, the state, as a matter of policy, and the people, as a matter of dogged commitment, must resolve to make the state peaceful.

Tuesday 20 November 2018

AVIATION

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GUIDE

BUSINESS DAY

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in association with

Aged aircraft and air Safety IFEOMA OKEKE

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he controversy has started to rage again over old and new aircraft. Recent publications posit that Nigeria operates the oldest fleet in Africa. But many industry experts insist that despite the gains associated with new fleet, it is maintenance and not age that determines the safety of an aircraft. This is buttressed by the three major accidents that have taken place this year. They involved new aircraft.

Ifeoma Okeke writes that the emphasis should be on maintenance rather than age of the aircraft.

No doubt, new aircraft presents various advantages which include fuel efficiency, low cost on maintenance and more innovations but these in no way guarantee safety of passengers on newer aircraft.

For instance, the crash of three months old Lion Air plane at the Indonesian island of Java involving a brand new aircraft - a Boeing 737 MAX 8 delivered in August, claiming the lives of 188 people has led some experts to suggest its young age could also be a factor.

The lost aircraft was delivered to Lion Air on August 15 and had just 800 hours of flight time. Gerry Soejatman, an aviation analyst, told the BBC that “very old aircraft are at risk of accidents, but very young aircraft also carry a high risk”.

He added: “If it is very new there are sometimes snags that only reveal themselves after they are used routinely.

These usually get sorted within the first three months.”

Gleave said: “We do not know what caused the crash but after only 800 hours you should not be having any maintenance issues, and even if both engines failed the plane should be able to glide for a considerable distance – this does not look like it was the case. It appears that the aircraft hit the water hard, rather than in a controlled manner.”

The Nigeria Civil Aviation Authority (NCAA) regulation requires that a comprehensive maintenance is conducted on aircraft within a period of 12 to 16 months or else, the aircraft will be grounded. Failure to meet up with this requirement has seen many airlines close shop.

NCAA has continued to reiterate that it is better to fly safe aircraft, not necessarily newer aircraft than have many airplanes which are not safe in Nigerian skies.

World oldest aircraft Against reports that Nigerian air-

lines parade oldest aircraft, recently the UK’s based The Telegraph reported 10 world’s oldest aircraft in the world and none came from Nigeria. The list is as follows: •PK-OCG, 25/05/1970, Airfast Indonesia (737) •ZS-IJJ, 28/09/1972, Interair South African (737) •5Y-CGV, 03/11/1975, Transafrican Air (737) •EP-SHB, 22/12/1977, Saha Airlines (747) •YV502T, 12/04/1978, Venezolana (737) •EP-CQA, 29/09/1978, Caspian Airlines (747) •XA-UHZ, 07/08/1979, EasySky Airlines (737) •C-GAIG, 28/09/1979, Air Inuit (737) •4L-NAL, 21/03/1980, Georgian Star International (737) •EP-IBS, 16/04/1980, Iran Air (A300) Condition of African airlines with newer aircraft South Africa Airways and Air Zimbabwe, which have been highlighted as airlines with the newest aircraft in Africa are funded by their governments and are barely making profits.

Zimbabwe, have invited bids for the loss-making carrier which is reported to have debts of over 300 million dollars.

The state-owned airline went into administration in October as a precursor to being sold off by the government.

Administrators Grant Thornton advertised the invitation to tender in local newspapers, with registration of interest closing on November 23rd.

South African Airways on the other hand has lost money for six consecutive years. However, the airline has continued to struggle to survive because the government wants it to.

Private owned airlines, no matter how small who have continued to source capital all by themselves have stuck to their business plan and are doing just fine.

Domestic airlines respond Some airline operators of Nigerian are alleging that the publication stating that Nigerian airlines have the oldest aircraft is meant to demonise Nigerian airlines by those who are clamouring for national carrier and noted that when Nigerian Airways existed it never sustained itself; government subsidized its existence.

But now the Minister of State, Aviation, Hadi Sirika is talking about private sector driven airline, but indications show that not many foreign investors would be willing to invest in the airline because of the inability of the Nigerian government to keep to agreements.

One of the domestic operators who craved anonymity said “What these people should know is that those who invested money in airline

business are creating jobs and are contributing to the economic development of Nigeria. Air Peace alone has created over 3000 jobs within the company and it has created 15000 indirect jobs. There are figures and facts to back these up. The airline is contributing in the sustenance of this economy.

“Those who are talking about old aircraft forgot that a major carrier in Europe came to Air Peace to buy two of its Donnier jets for its subsidiary and the two aircraft are flying today in Europe.

AirPeace is being maintained by top maintenance organisations in the world.

“AirPeace has not spent less than 2.5 million dollars in its c-checks and this can be verified. The airline’s safety good record is known all over the world and it is (International Air Transport Association Operational Safety Audit) IOSA certified. This is international yardstick to measure your safety standard. After two years AirPeace was again audited by IATA and re retained its certification. Don’t you think the airline should be commended?”

Funding challenge While domestic airlines will love to have newer aircraft on their fleet, it is important to note that finance constitute a major challenge.

Obi Mbanuzuo, accountable manager of Dana Air told BusinessDay that

domestic airlines use older airplanes because of financing. “Due to the inability of banks and lending houses to provide long term loans which are required to acquire newer aircraft, airlines go for cheaper used versions which they can finance themselves without the help of banks. For example, a brand new B737-800 costs up to 90 million dollars and Western airlines pay this over 10 to 15 years with the help of leasing and finance houses. Conversely, a used B737-300 costs about 4 million dollars.”

Expert’s opinion Igwe Francis, the Public Relations Officer, National Association of Aircraft Pilots and Engineers said that what matters is that aircraft are maintained to a minimum approval standard, and not necessarily the age of the aircraft.

A few years ago, the government imposed a 22-year-old ban on any aircraft that must be brought into the country. The move, according to Nigeria Civil Aviation Authority (NCAA) was to ensure that Nigeria does not become a dumping ground for old aircraft.

Domestic airlines rise to the challenge While domestic airlines are not just glorying on their zero accident record in over three years, they are also stepping up in the replacement of newer aircraft on their fleet.

Recently, AirPeace signed an agreement with Boeing for the acquisition of 10 brand new 737 MAX 8 aircraft, making history as the first airline in West Africa to add the equipment to its fleet. The airline also signed a multiyear aircraft spare parts deal with plane maker, Embraer.

The deal would cover more than 250 components for the six Embraer 145 jets it recently added to its fast-growing fleet in line with its drive to connect unserved and underserved domestic and regional routes under its subsidiary, Air Peace Hopper.

In July this year, Medview Airline also acquired a Boeing 777-200ER aircraft to revive its international operations. The wide-body aircraft was the second of such in Nigeria, after Air Peace acquired one in January this year.

BusinessDay’s checks also show that Dana has started executing plans to acquire a newer aircraft.

Conclusion While acquisition of newer aircraft are encouraged, old aircraft are equally serving great purposes, as both old and new planes require periodic maintenance. It only behoves on the government to create an enabling environment for airlines to operate so they could have return on their investments.

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BUSINESS DAY

Harvard Business Review TALKING POINTS #MeToo and the Workplace 13.6%: One year after the #MeToo movement began, the U.S. Equal Employment Opportunity Commission reports seeing a 13.6% increase in sexual harassment charges. + Postpartum Depression in Men 4% to 25%: According to a recent study, about 4% to 25% of fathers say that they experience varying degrees of postpartum depression. + Silencing Whistleblowers 30%: In study from U.K. law firm Bruckhaus Deringer, almost 30% of managers responded that their companies take active measures to prevent whistleblowing. + Sustainable Disruption 63%: A survey conducted by the United Nations and Accenture found that 63% of executives expect that sustainability efforts will create profound changes to the ways they do business within five years. + Pitch Perfect 15: Tricia Brouk, a TEDx producer and executive producer of Speakers Who Dare, recommends that presenters communicate their main message in 15 words or less to engage listeners early on.

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Tips & Talking Points Tell your employees it’s oK to look for other jobs (yes, really)

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ncouraging your star performers to consider outside job offers might seem like a bad idea.

But doing so sends them a clear signal that you care about their learning and development. Tell the people you manage that you want them to consider all options for their careers. This will help them to talk openly with you about their career plans, which in turn will give you the time and opportunity to find a way to keep them when they’re considering a

Learn something new to relieve some stress

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any people handle work stress by buckling down and powering through. But that’s not a great way to actually relieve your anxiety. Instead, try reframing the stressful situation as a learning opportunity.

Learning something new adds to your skill set and knowledge, and helps you develop feelings of competency and growth, which can alleviate feelings of stress. You can also learn with others. For example, rather than just wrestling with a challenge in your head, get input from col-

Tuesday 20 November 2018

leagues. Discussing a stressful situation with them can reveal hidden insights, either from their backgrounds or from the questions and perspectives they’ll offer. And don’t think of learning as an additional layer of work; think of it as a break from the hard work of getting the task done. Framing learning as a form of respite can make it more appealing and more likely to create a positive, enjoyable experience.

(Adapted from “To Cope With Stress, Try Learning Something New,” by Chen Zhang et al.)

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job offer. Maybe you can give them a new project, add to their responsibilities or negotiate a raise.

And if you think an employee has grown as much as they can in your company, support their efforts to get a job somewhere else. Your transparency will make them more likely to recommend your company as a great place to work, and maybe even to return in the future.

hat do you do if a new hire is struggling in their role, and even dragging down your team? Prepare for a direct, and uncomfortable, conversation. The employee needs to know exactly how he or she is failing to meet expectations it order to make the necessary changes. Share your concerns and ask for his point of view about what’s been happening.

The employee may be grateful for the opportunity to clear the air and work on a solution together. You can start off by saying something like, “Boris, I want to talk about the last few weeks. You’re on track in some ways, but we need to make some adjustments.” Then give clear, specific feedback on how the employee should improve. Once you’ve done this, watch how the person responds. If you don’t see significant effort almost immediately, and real improvement over the next three to six months, you may have to take more serious action.

(Adapted from “Why I Encourage My Best Employees to Consider Outside Job Offers,” by Ryan Bonnici.)

(Adapted from “What to Do When You Realize You Made a Bad Hire,”

by Liz Kizlik.)

When Yyou have to fire someone, be as humane as you can

or managers, the standard procedures for firing someone tend to be about the legal issues involved.

But it’s worth thinking about how the firing process itself can be more humane to the employee.

(Remember, if you deviate from your company’s procedures, you should talk to human resources about what’s happening.) For example, when you know you’re going to fire someone, you might consider telling them so that they can start a job

If a new hire is struggling, give them a clear plan to improve

search. You could allow them some time to go on interviews during work hours. You can even offer to review their résumé, make introductions and serve as a reference. After all, even though the person isn’t a good fit for your company, they may be a great fit for another one. Being fired is a terrible experience for an employee, but by being transparent and thoughtful, managers can make it a little more humane.

(Adapted from “A More Humane Approach to Firing People,” by David Siegel.)

Please stop Bcc’ing your boss on emails

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cc’ing your boss on emails may seem harmless. You’re just keeping your manager in the loop about that important project, and it’s no big deal if the other recipients don’t know — right? Wrong. Research shows that bbc’ing the boss can corrode trust if teammates find out, because the sender’s intentions aren’t clear. To your colleagues, it may seem as if you were being underhanded or sneaky. If you need the boss to know what’s happening, don’t bcc them; forward the relevant

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

email with a note, or write a new email that’s personally addressed to them. You can frame the email as an update, which achieves the same goal as bcc’ing — without the risk of alienating your colleagues. These extra steps take a little more time, yes, but they’ll also keep you from damaging your relationships at work.

(Adapted from “Why Bcc’ing the Boss Is a Bad Practice,” by David De Cremer et al.)

BDTECH

BUSINESS DAY

Tuesday 20 November 2018

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In association with

Flutterwave provides solution to Nigeria’s payment inadequacy bypass …processes over $2.5bn transactions in two years JUMOKE AKIYODE-LAWANSON & HOPE ASHIKE MOSES

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lutterwave, an online payment solutions company has expressed confidence in Nigeria’s electronic payment system and aims to help solve the critical issues of online payment inadequacy with its integrated platforms that makes it easier and quicker for banks and businesses to process payments across Africa.

The company which has successfully raised over $20 million in funding from foreign investors, having Green Visor Capital and Greycroft Partners as its largest investors says it has since inception in 2016, accepted and processed payment transactions from all payments cards, up to the tune of $2.5billion dollars.

Flutterwave, which graduated from Silicon Valley elite accelerator program Y Combinator, also counts Y Combinator, Social Capital and Omidyar Network and Mastercard among some of its investors.

L-R: Mohammed Mijindadi; managing director, General Electric, Gas and Power, Azuka Okeke; director, African Resources Centre for Health Supply Chains, Bankole Oloruntoba; chief executive officer, Nigeria/World Bank Climate Innovation Centre, Eniola Edun; general manager Techplus, Deremi Atanda; executive director SystemSpecs Limited and Tunji Adeyinka; group managing director, Republicom Group, at the Techplus 2018 Breakfast series held at Zone Tech Park in Lagos on Thursday 15, November 2018.

The company processes global transactions for companies such as Uber, Facebook, Transferwise, Booking.com, Flywire and other

notable Silicon Valley ventures.

Speaking to Journalist at the Flutterwave head office in Lagos, Olugbenga Agboola, CEO of Flut-

terwave said; “Luckily, Nigeria is more advanced in electronic payment systems than other countries in Africa. However, we have not perfected this system and still have some glitches. Flutterwave is confident in providing seamless glitch free transactions in Nigeria.”

“With our solutions, a merchant can accept local and international payments from card and bank accounts. Our technology also powers services like PiggybankNG, Thrivesed.com, Walletng, MAXGO, and a host of other platforms.

“Our aim is to be ‘the Google of everything payment.’ We process any kind of card, and we can be operated from any part of the world, especially with one of our new trending product called ‘Rave.”

Speaking on the authenticity and credibility of the company, Agboola said that the company is a financial technology company and also a CBN licensed payment institution.

“This means that we are licensed to collect money from customers

on behalf of merchants across the globe. “We are not just in Nigeria, we also exist in Uganda, Tanzania, Kenya, South Africa, including USA,” he said.

Rave is channel-agnostic in the sense that any kind of payment is allowed on the platform.

While addressing the issue of security guarantee of clients he said, “we are a payment gateway that has PCI level one license. That means we have been verified and assured by an independent auditor to be able to secure in the trustworthy manner, process payments in Nigeria and across board for clients. Secondly, we have what we call PA-DSS and likewise ISO 27001 which is the highest security rating any payment gateway can have in the world. So, it affirms that we have the highest security level for our clients.”

Flutterwave has over 25,000 direct merchants on its stable and uncountable indirect merchants. It accepts any mode of payment, as operated in distinct countries, and also operates in the local currencies of users.

Firm prompts use of smart solutions for business and government security

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izengoff Nigeria, an agriculture and communication technology company has called on businesses and governments in the country to take a cue from trends across the world by adopting smart solutions to tackle growing security challenges in the economy.

The advice came during a security conference forum organised recently by the company in Lagos.

The forum tagged “Smart security solutions: Unification and Integration” was organised against the background of growing threats in cyber space as well as physical security issues and

integrative communications systems.

Genetec a top Canadian security solutions company including Abloy a Swedish company and communications giant, Motorola provided faculties for the highly engaging event which gave insight into different threat vectors.

During the forum, participants were enlightened on latest cyber secured unified security solutions platform, designed to curb physical security issues with video, access control and License plate recognition unification as well as smart communication systems to match the growing sophistication

in the economy.

Speaking during the event, Guy Rabinovich, general manager, communications Technology, Dizengoff Nigeria, urged businesses including government to consider toughening their physical security solutions platform with cyber secure measures. He explained that many CCTV and access control platforms leave security loop holes that is easily exploitable by hackers.

He said “although one could say that there is some form of response to the issue from quite a few quarters at the moment, if you took a close look however,

you would find that what is being done is too feeble compared to the magnitude of the problem of cyber-security including physical security threats across all sectors of the economy.”

According to him, with growing sophistication in the economy, criminals are also a step ahead and there is no telling the havoc they are capable of, he averred. “I believe that there has to be a stronger push from businesses including government to do more in terms of awareness and knowledge on what must be done to effectively make their physical security solutions cyber secure”

He therefore urged action to take the issue of cyber security more seriously by making conscious efforts to be aware of the magnitude and complexity of the problem and begin to implement smart security solutions to protect themselves from threats and attacks.

Anti Ritvonen, Dizengoff CEO/ country manager, Dizengoff stressed that businesses and organisations including individuals need to take cyber security issues more seriously because “there is no gain saying that everything in modern day living, including physical security solutions, is today linked one way or the other to the internet.

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BDTECH

E-mail: jumoke.akiyode@businessdayonline.com

Report reveals upsurge in hand-delivered, targeted cyber attacks …As cybercriminals reap millions of dollars in ransom Stories by JUMOKE AKIYODE-LAWANSON

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s the world moves to becoming more digital, the need for cyber protection continues to increase, as significant changes in the threat landscape with more insights into emerging and evolving cybersecurity trends have resulted in more active and damaging cyber attacks globally.

The 2019 Threat Report recently launched by Sophos, compiled by its researchers, explores changes in the threat landscape over the past 12 months, uncovering trends and how they are expected to impact cybersecurity in 2019.

“The threat landscape is undoubtedly evolving; less skilled cyber criminals are being forced out of business, the fittest among them step up their game to survive and we’ll eventually be left with fewer, but smarter and stronger, adversaries. These new cybercriminals are effectively a cross-breed of the once esoteric, targeted attacker, and the pedestrian purveyor of off-the-shelf malware, using manual hacking techniques, not for espionage or sabotage, but to maintain their dishonorable income streams.” - Joe Levy, CTO, Sophos, as refer-

L-R: Olabiyi Durojaiye; chairman of Nigerian Communications Commission (NCC), congratulating Bassim Haidar, Channel VAS founder and CEO for his company’s growth and receipt of $50 million funding from Ethos, a South African based company, during AfricaCom event in Cape Town, South Africa recently.

enced in the SophosLabs 2019 Threat Report.

The SophosLabs 2019 Threat Report focuses on these key cybercriminal behaviours and attacks: • Capitalist cybercriminals are turning to targeted ransomware attacks that are premeditated and reaping millions of dollars in ransom - 2018 saw the advancement of hand-delivered, targeted ransomware attacks that are earning cybercriminals millions of dollars.

These attacks are different

than ‘spray and pray’ style attacks that are automatically distributed through millions of emails. Targeted ransomware is more damaging than if delivered from a bot, as human attackers can find and stake out victims, think laterally, trouble shoot to overcome roadblocks, and wipe out backups so the ransom must be paid. This “interactive attack style,” where adversaries manually maneuver through a network step-bystep, is now increasing in

popularity. Sophos experts believe the financial success of SamSam, BitPaymer and Dharma to inspire copycat attacks and expect more happen in 2019.

• Cybercriminals are using readily available Windows systems administration tools - This year’s report uncovers a shift in threat execution, as more mainstream attackers now employ Advanced Persistent Threat (APT) techniques to use readily available IT tools as their route to advance through a system and com-

ESET launches mobile security solution for Airtel subscribers

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SET, cybersecurity research company and solutions provider has launched a new smartphone security software solution targeted at the majority of Airtel’s over 41 million Nigerian subscribers.

The security application provides comprehensive protection for Android smartphone or tablet, including proactive anti-theft, application lock with finger print and call/SMS custom filter, password protection and has security audit capabilities that may not be offered on other anti-virus applications.

According to ESET, the new value offering will provide smartphone users with world-class features for prevention and management of cyber risks associated to Android mobile devices.

The ESET Mobile Security product exists globally on Google Play Store with over ten (10) million downloads

and offers fast and precise detection of known and unknown mobile threats. The company provides mobile security solutions to other top telecommunication service providers such as Tmobile and O2 in the United Kingdom.

Speaking at the launch of the ESET Mobile Security product, Olufemi Ake, country manager, ESET said; “This is a first of its kind in Nigeria. We understand the need of average smart mobile device users in Nigeria especially these days where sensitive information is stolen to commit fraudulent activities for personal and commercial gains; hence, the introduction of the first telecomfocused security product optimised for Android and bringing both unmatched performance coupled with proactive protection.”

Dinesh Balsingh, chief commercial officer, Airtel Nigeria, who was represented at the event by Erhumu Bay-

agbo, VAS champion, Airtel Nigeria, noted that Airtel is committed to making lives better for telecoms consumers and will continuously explore exciting partnership opportunities that will ensure customers’ data/information are safe and secured.

“Our partnership with ESET affirms our strong commitment to our customers as we put them first in everything we do.

With the innovative offering, consumers are safer and more assured as they connect and interact with friends, family members, loved ones and business associates,” he said.

Airtel subscribers who wish to benefit from this new offering can subscribe via the Google Play store at a subsidised and flexible cost of ₦150 monthly.

The new ESET mobile Security for Airtel also welcomes the brand-new premium features such as AntiPhishing, which protects against malicious websites

attempting to acquire sensitive information – usernames, passwords, banking information or credit card details.

It also features Anti-Theft, which locks a device upon detection of suspicious behaviour or when unauthorised SIM is inserted. It also has the Remote Lock feature, allowing a device owner to lock his/her phone remotely, thereby preventing unauthorised access to all stored information, including photos and emails.

The ESET Mobile Security also has the SMS & Call Filter feature, which enables smartphone owners to solely receive the calls and messages that they want and also empower them to define the sender and the time to receive SMS or calls with timebased call management. The company assures that the application which is only 9.54 megabyte will in no way affect the smooth running of other apps or operation of any device.

plete their mission – whether it is to steal sensitive information off the server or drop ransomware: • Turning admin tools into cyberattack tools In an ironic twist, or Cyber Catch-22, cybercriminals are utilising essential or built-in Windows IT admin tools, including Powershell files and Windows Scripting executables, to deploy malware attacks on users.

• Cybercriminals are playing Digital Dominos By chaining together a sequence of different script types that execute an attack at the end of the event series, hackers can instigate a chain reaction before IT managers detect a threat is operational on the network, and once they break in it’s difficult to stop the payload from executing.

• Cybercriminals have adopted newer Office exploits to lure in victims Office exploits have long been an attack vector, but recently cybercriminals have cut loose old Office document exploits in favour of newer ones.

• EternalBlue becomes a key tool for cryptojacking attacks Patching updates appeared for this Windows threat more than a year ago, yet the EternalBlue exploit is still a favourite of cybercriminals; the coupling of Eternal-

Blue to cryptomining software turned the activity from a nuisance hobby into a potentially lucrative criminal career. Lateral distribution on the corporate networks allowed the cryptojacker to quickly infect multiple machines, increasing payouts to the hacker and heavy costs to the user.

• The continued threat of mobile and IoT malware – Malware’s impact extends beyond the organisation’s infrastructure as we see the threat from mobile malware grow apace. With illegal Android apps on the increase, 2018 has seen an increased focus in malware being pushed to phones, tablets and other IoT devices. As homes and businesses adopt more internetconnected devices, criminals have been devising new ways to hijack those devices to use as nodes in huge botnet attacks.

In 2018, VPNFilter demonstrated the destructive power of weaponised malware that affects embedded systems and networked devices that have no obvious user interface. Elsewhere, Mirai Aidra, Wifatch, and Gafgyt delivered a range of automated attacks that hijacked networked devices to use as nodes in botnets to engage in distributed denial-of-service attacks, mine cryptocurrency and infiltrate networks.

Samsung launches QLED TV 2018 model into the Nigerian market

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amsung Electronics West Africa has launched its newest and smartest Television yet, the Samsung QLED TV 2018 into the Nigerian market.

According to the company, the QLED TV 2018 features impeccable picture quality, inspiring style, and ingenious ways for users to find content; removing anything that distracts, detracts, or delays from the experience.

A notable upgrade from the QLED 2017, the 2018 model has some new features including; the One Connection –a new ‘Invisible Connection’, or a single super-thin cable that will be hard to spot.

Olumide Olakotan, key account manager, Samsung Electronics West Africa said that the company had put in a lot of thought into creating a device that would not only serve as an entertainment tool but also add to the glamour and panache that Samsung products brings to the home.

“At Samsung, we are fo-

cused on leaving a legacy of perfection for our consumers and that is why all our products are carefully crafted to meet the very specific needs of our growing dynamic and stylish customers,” Olakotan said.

Another novel addition to the QLED TV 2018 is the ambient mode feature which is also a first in the QLED series, providing useful information throughout the day – even when consumers aren’t actively watching the TV. “The QLED when wallmounted and on Ambient Mode can mimic the pattern on the wall behind the TV to create an astonishing visual effect in which the TV blends seamlessly into the wall.

QLED TVs can hide in plain sight. If you are not watching TV, you won’t see a TV,” Olakotan added.

Users can now experience the truly connected life through the SmartThings app which connects the TV to a broad range of smart devices and appliances, from the fridge to your smartphone, etc.

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Nigeria needs land and property ownership REDA set to recognize, encourage integrity, innovation in real estate industry reforms, more infrastructure: Here’s why Endurance Okafor

Stories by CHUKA UROKO

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rgently, Nigeria, Africa’s largest economy, needs comprehensive reforms in its land and property ownership systems just as it needs to develop more infrastructure across sectors.

These actions have become not only urgent but also necessary because experts estimate that only 5 percent of the country’s housing stock, which is less than 20 million units in total, are in formal mortgage.

This means that 95 percent of these houses are dead assets because they are neither tradable nor bankable.

Andrew Nevin, Partner and Chief Economist for PwC, who spoke at the just concluded West Africa Property Investment Summit (WAPISummit) in Lagos, explained that it was only land and property ownership reforms that could unlock this huge stock of dead assets whose value he estimated at N307 billion or 81 percent of the country’s GDP. Nigeria has a rigid traditional land tenure system coupled with the current land titling system which is onerous and excludes many people from formal land ownership, hampering full scale economic activities, especially real estate which happen on land.

Nevin, in his presentation on ‘The Global View On Geopolitics, Oil & MacroEconomics: How are These Impacting Investment in West African Real Estate?’ underscored the importance of land, especially in an emerging economy like Nigeria where population is fast outstripping GDP

growth.

In Alfred Marshall’s Principles of Economics written in 1890, it is stated that land, labour, capital and organisation were the four factors of production, but land is so important that the other factors would be redundant without it. Land is the bedrock upon which the satisfaction of all human needs is built. Food, clothing and shelter are all human needs met from resources derived from land.

Land reportedly accounts for 20 percent of the earth’s surface, and consequently, every economy requires comprehensive land regulations and policies to guarantee the effective usage of its land and the maximisation of resources attached to it.

From traditional, economic and industrial perspectives, experts see land as very unique and strategic and its availability plays a pivotal role in the development of any economy as it increases investment inflow. Industrialisation, housing development, agriculture, mining,

oil exploration and other economic and productive activities that lead to improved standard of living, job creation, economic growth, among others, are possible only when land is available and harnessed for such purposes.

A World Bank Report on ‘How Africa Can Transform Land Tenure, Revolutionise Agriculture and End Poverty’ says Sub-Saharan Africa is home to nearly half of the world’s usable, uncultivated land but, so far, Africa as a whole has not been able to develop these unused tracts to dramatically reduce poverty and boost growth, jobs, and shared prosperity.

Another World Bank report on ‘Securing Africa’s Land for Shared Prosperity’ argues that if African countries and their communities could effectively end ‘land grabs and modernize the complex governance procedures that govern land ownership and management over the next decade, it would bring about improved well being and standard of living of their

people.

Based on these facts, Nevin said that land and property ownership reforms were needed, especially for real estate which is one of the most critical sectors that, if reformed, would propel growth and alleviate poverty in Nigeria, explaining, “real estate makes up 60 percent of the world’s global assets and in developed countries, real estate buttresses the financial sector, enabling for the creation of asset-backed loans and securities”.

Besides these reforms, Nigeria also needs to build more infrastructure, particularly for its growing population which is projected to grow faster by 2020 even as poverty outlook remains dire.

“IMF 2018 report on Nigeria concludes that the country is set to experience incremental decline in income per capita as from 2025”, Nevin revealed, meaning that housing affordability issues would worsen, just as standard of living would decline rather than improve.

hen an industry is hijacked by pseudopractitioners and desperate, quick wealth seekers, products end users lose, which is why Real Estate Developers Award (REDA) has set out to recognize and encourage those who exhibit integrity and innovation and play by the rules in the real estate industry.

Those to be recognised have been investigated by a committee of experts in the industry and selection will be based on integrity, credibility, reliability, honesty and trustworthiness and problem solving aptitude which form the basis upon which they will be selected for various categories of the award.

The company will be organising an award for this class of players which includes developers, markers, facilities managers and other professions in the industry.

“Those we will be celebrating by December this year are players that have made landmark achievements in the real estate business and these are those who are genuinely running real estate business; they deserve some accolades,” , Adeyemi Bafo, Event Planner and Communications at REDA, explained.

The award, the organizers explained, would have different categories that will cut across various sub sectors of the industry and they will be looking at people who have excelled in providing affordable house for people.

“We are celebrating innovation by developers and those who are in the marketing of the property business; we will also celebrate those who are into facilities management because if the facilities are not managed well, they won’t be last long. We will also be celebrating those who are into interior decora-

tion. In all, we are looking at 20 organisations that will be recognised,” , Taiwo Olowokere, a , consultant at REDA, explained.

To give the exercise credibility and acceptance, the company assembled industry experts that look at what it takes for industry players to get this accolades.”We looked at mostly integrity, as some people are dubious in the business and cannot deliver the value they promise; so we are looking at those that are faithful and have good track record, ” Olowokere assured.

This maiden edition of the award is organised with the aim of encouraging and acknowledging individuals and real estate companies that have made tremendous effort to contribute to the growth of the Nigeria real estate industry.

Chigozie Orunta, the MD of realestateproperty.com. ng which is the firm behind REDA, also explained that the award was an event they have put together to celebrate developers, real estate business operators, people who have contributed in no small measure to the real estate industry.

“It is an event that will pick people who have done well for the property industry, and so this event is going to celebrate all and sundry and it is also going to give the industry players an opportunity for them to network with one another”, he added.

“REDA is to celebrate and encourage those who have made contributions to the property sector, as most players in the property space have gone extra mile to develop land and properties, especially in a city like Lagos. At least now people can, to some extent, afford to own houses and it has also created an avenue for employment as a lot of people are now able to get the source of living from participating in property industry.

How Dradrock Real Estate is enabling first home buyers, contributing to economy

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t a time like this in Nigeria when many investors are adopting wait-and-see attitude, watching the economy and the political uncertainties surrounding it, some other investors and real estate developers are offering products and services that impact not only on families, but also on the economy.

One of such investors is Dadrock Real Estate, a relatively young property investment,

development and advisory firm which has enabled, and continues to enable first time home buyers to own owns from its Annapolis brand of home products at various locations in Lagos.

By the last count, the company has provided over 500 houses and housing solutions to an equal number of families, meaning that at an average of four persons per family, about 2,000 families have benefited

from their housing schemes.

This has also contributed in reducing Nigeria’s housing deficit.

“One of our major roles as a company is advisory; we advise clients on how best to go about buying their own homes or holding a property for investment purposes. We segment the market, look at buyers based on their type of job and income level. We structure payments for people according to their cash flow. People are always excited to see that we are able to do this for them”, Oladipo Idowu Agida, the company’s MD/CEO, told BusinessDay in an interview.

“We have been able to help about 500 people to own property. These are mainly those in high income class, the midincome earners and not many in low income bracket. But we have started offering something for the low income. In

terms of percentage, what we have is 10 percent for low income, 40 for the high income and 50 for mid-income earners”, he added.

Idowu Agida also pointed out that they have contributed much to the growth of the economy through jobs for all classes of workers including skilled and unskilled labour, professionals, artisans and others.

The company has a brand of our products called Annapolis. Its Annapolis Garden at Lakowe comprises serviced plots and 30 units of 2-bedroom apartments. The Annapolis Residence at Sangotedo is also a serviced scheme comprising serviced plots, 2-bedroom, 3-bedroomapartments and terrace houses. The Annapolis Court at Ibeju Lekki offers serviced plots and developments for low income earners.

“The objective of the Annapolis brand is to create a place for people where they can live and have the kind of lifestyle they desire. It is for all classes of people—the upper class, middle class and the lower class.

For the Snagotedo scheme, our serviced plots are going for N1020 million per plot. This caters for the upper middle class.

“The scheme in Lakowe caters for the lower middle class where a plot sells for N5 million.

The Ibeju scheme caters specifically for the middle class. We expect that in the next 10 years, that area will explode because of the kind of developments coming to that area”, he said.

For Dadrock, like any other real estate firm, funding is a major challenge and this why, the CEO explained, “even when you cater for the lower class, they cannot still afford. We are therefore coming up with an

initiative where anybody that earns $200 dollars will be able to buy our plot. We are working with some partners and creating mortgage systems with which people can buy houses”.

He noted that the challenge of finance was on both the developers and buyers, explaining that infrastructure is a big issue for any developer. “In all our projects, we are the ones providing the infrastructure and that affects the cost of construction and the capacity of those who want to buy”, he noted.

On the buyers’ side, he said, the company also offers structured payments and supports that with mortgage. “We believe that anybody who earns $200 can own a home in Lagos in a place where there are basic amenities like water, power, good roads and he is safe, meaning that there is security,” he assured.

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‘We are always excited working with investors who are willing to embark on profitable projects’ The real estate market in the United States (US) is not only mature, secured and guaranteed, but also liberal such that foreign buyers have minimum restriction to ownership of homes or property investment. In this interview, ADESINA ADEYEMI, an Atlanta-based real estate consultant and investor, speaks on this market. Adesina, who is also the CEO of Shine Sells Atlanta operating under the Brokerage of Keller Williams International, also speaks on how to invest in real estate in the US; real estate procurement, sales, estate development and investments (long and short terms) in that country. He speaks with CHUKA UROKO. Excerpts:

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hine Sells Atlanta is one of many real estate firms in your part of the US. Tell us about this company and the kind of real estate business you undertake.

Shine Sells Atlanta is a US based Real Estate firm doing business under the Brokerage of Keller Williams International. We are into Real Estate procurement, sales, estate development and investments (long and short terms). Although officially licensed in the state of Georgia, we operate in all the 50 US states through our Alliance Partners. We are in the residential and commercial markets, working with both private and institutional investors. 40percent of our book of business comes from foreign investors, especially from the UK, Nigeria and United Arab Emirate (UAE). We understand how important it is for our investors to hedge their funds in a secured and guaranteed market.

Knowledge is power and in today’s developed world, information is everything. Our team understands this and so we use all our experience in the US real estate industry to educate and guide our clients who are mostly foreigners based in or out of the US. There’s a strategy for trans-generational wealth creation through real estate in the US that most of our clients may not necessarily know. So, we help them through our platform. On a consistent basis, we are invited to business places and churches to empower our people with information.

Adesina Adeyemi

Beyond its maturity and security, what first sparked your interest in US real estate market?

Well, the fact that the real estate industry is the largest component of the US economy, estimated at 13 percent, and continues to be the main source of wealth creation was enough for me to want to get into it.

Initially, I started a part time show in the industry by managing properties for absenteeowners (foreign residents) in the US and grew the portfolio to a decent number.

From there, I got licensed.

After that, I started my own business full time. Now, I breathe, drink, live and speak real estate every day. This is

what separates a realtor (full time) from an agent (part time). Also, as a realtor, I am an active member of National Association of Realtors (NAR) which is the oldest and largest trade association in the US governed by strict codes of ethics and treats every client fairly with utmost professionalism.

From experience, what trends do you see in local and global real estate?

US real estate processes are very well detailed and established. The systems are there to be followed. There are really no short cuts in this industry and one could get burnt fast if one doesn’t understand the market well. We are in one of the most viable real estate

eras; homes are appreciating in value tremendously and we are constantly being approached by clients who want to sell their properties and pull out decent equity.

There’s always a wave to follow, either the market is up or down. Atlanta’s Hartsfield Jackson Airport has been the world’s busiest airport by passenger count since year 2000 and this Airport sees more than 100 million passengers yearly.

Many of these passengers end up falling in love with the city and wanting to own some part of it.

The Atlanta real estate market will continue to boom, it is considered one of the most viable markets, thanks to the relocation of several new residents from up northern US to the area, Down South. Atlanta is home to CNN, Delta Airlines, Coca Cola, UPS and the Home Depot Corporate offices. Even Amazon is considering having their second corporate headquarters in Atlanta.

This, clearly, presents investment opportunities, especially for foreign buyers. How are you leveraging these opportunities and what projects do you have on offer?

Here in Atlanta, we recently completed an immaculate, lakefront project funded by a consortium of foreign investors. We developed 25 acres of land by constructing 60 detached three to four-bedrooms, single family, traditional-styled homes within a gated estate in a great school district. We started selling homes in this gated estate at $300,000 and

our investors are getting about 18 percent returns on their $20 million investment. We are always excited to work with liquid investors that are ready and willing to embark upon this type of profitable projects. We know the market well enough and study the trends to understand how best to position ourselves and take advantage of all that the market offers.

Apart from estate development which, of course, is capital intensive, what other investment strategies do you recommend to your clients?

It depends largely on the client’s investment preference and how liquid he is. Some investors are conservative while others prefer to be more aggressive with their approach.

Some are interested in short term investments while others want long term.

For long term (buy and hold) investors, they are better off buying properties as low as $200,000 that can yield 15percent or more yearly ROI from rental income. With this price point, you are assured the properties are, at least, in decent school districts, close to highways, and shopping areas which are factors that typically drive quick tenant placement.

For short term investors, the fixer-upper model makes more sense. We find suitable dilapidated properties that are sold at a discount and can be renovated with some cash then re-listed on the market for sale at profits, usually 15 percent and above.

Can a non-US resident investor buy property in the country? Is a visa needed prior to purchase?

Absolutely, a non-US resident investor can purchase real estate in the country. A visa is not required for deals to close.

There are systems in place that we follow. Licensed inspectors are always hired to inspect the houses that we purchase, and they provide reports on their findings. These detailed reports are anything from 1230 pages long with attention to every area of the house being inspected. Inspections enable buyers to understand the current state of the houses they are purchasing. Major repair concerns must be solved prior to closing (if any).

Is there any pricing information that is relevant readers? Could you offer details?

For residential pricing in the Atlanta area, home prices start at $200,000 up to $17 million and commercial properties are in the $3,000,000 price points.

Where do you see your company five years from now?

We plan on being major players in the estate development sector; we continue to partner with major liquid investors that can build communities with us and enjoy decent ROI. We are also working on increased presence and participation in Africa, starting with Nigeria.

We are working on establishing our teams/offices in major cities like Lagos and Abuja.

Expert offers insights on how waste management could enable green economy CHUKA UROKO

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nvironmental sustainability is, increasingly, becoming a global phenomenon that many countries of the world are making huge investment in with the ultimate aim of creating circular and green economy.

As an economy that targets environmental risks and ecological scarcities reduction, green economy aims for sustainable development without degrading the environment.

This is why efforts are being made at individual, organizational and even household (families)levels to adopt sustainable practices, especially in the energy sector, to make changes in the energy mix, promote the use of electric vehicles and improve the energy efficiency of buildings.

Ecosystem services, including air and water purification,

soil renewal and fertilization, pest control, pollination and protection against extreme weather conditions, among others, lead to economic activities that can employ 1.2 billion workers globally.

Besides these, there are other environmental activities that lead to sustainability that can also enable green economy.

One of such activities is effective waste management which, according to Ola Oresanya, managing director, Globetech Remedial Limited, is an enabling tool for green economy.

In Nigeria, waste management is still not effective due, largely, to inadequate investment and lack of capacity. Again, at local, state and federal government levels, institutions that are specifically established for waste management are still lacking.

Oresanya, who spoke at this year’s Eco-Sustainability Discourse, an annual environmen-

L-R: Osato Osawaye, chairman of faculty; Haske Ibrahim, director of legal; representative of minister for mines and steel development; Emma Wike, 1st VP of NIESV; president and vice president of miners associations of Nigeria, Sanni Shehu and Chief Danladi respectively, at the opening ceremony of International Conference on Minerals Assests Valuation and Financing in FUTMINNA, Niger State.

tal event organized by AvantGarde Limited, pointed out a few steps that could be taken to bring about sustainability and serve as an enabling too for circular and green economy.

Sustainability, according to

him, requires creative solutions by some state governments for alternative financing, adding that there is need also for increase in citizen’s consciousness for clean environment as well as increase in media agitation for

improvement in waste management services.

Oresanya, who is former managing director of Lagos State Waste Management Authority (LAWMA), affirmed that effective waste management has the capacity to create jobs, but pointed out that there should be cost recovery initiatives for waste management expenses in communities and institutions.

“Efforts should also be made at redefining perceptions of solid waste management”, he added.

According to him, the plastic waste which is scattered all over the place has huge economic value and income potential, recalling that “plastic collection in Lagos State as of 2015 was at 40 percent; 1kilogram of plastic flakes sells for N187; Lagos generates about 1,048.7 tons daily and this has economic value of about N71.6 billion annually”.

For Nigeria to succeed in effective waste management,

Oresanya recommended that government should develop human capital through skill acquisition and enhancement to address service value chain in waste management.

“The economic model around social entrepreneurship should also be developed with government sovereign potentials as support for business development in the sector; more commitment to improving on governance structures that allows optimal functions of legal and institutional framework should be shown while serious commitment to implementing the existing laws on solid waste management and global treaties should also be demonstrated”,he counseled.

“The governance structures for managing solid waste in Nigeria should be reviewed for minimal political intervention and professionals should be allowed to do their jobs”,he added.

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Politics & Policy Atiku promises jobs, virile economy ...unveils policy document James Kwen, Abuja

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bubakar Atiku Presidential Candidate of the Peoples Democratic Party has promised that if elected President he will be pro-active in attracting investments and supporting the 50 million small and medium scale enterprises across Nigeria for the purpose of doubling the size of the Nigeria’s Gross Domestic Product to US$900 billion by 2025.

Atiku said these investments will also create a minimum of 2.5 million jobs annually and lift at least 50 million people from poverty in the first two years of his administration.

He promised to create jobs by innovating flagship programmes such as the National Open Apprenticeship Programme through which we shall enhance the capacity of Master-Craftsmen and women to train 1,000,000 new apprentices every year.

The former Vice President who made these promises while presenting his policy document, said the government under him would put in place National Innovation Fund and SME Venture Capital Fund initiatives to provide stable and sustainable long-term support to aspiring entrepreneurs.

Abubakar Atiku

Atiku while recounting his knowledge of the Nigerian economic atmosphere, said “I was Vice President of the Federal Republic of Nigeria from 1999 to 2007 and in that time, I chaired the National Economic Council that gave Nigeria her highest and most consistent GDP growth of over 6% per annum.

“Despite the fact that crude oil prices at that time were much lower than they are today, under the

2019: “Scrutinize the pedigree and antecedents of candidates before voting for them’ DG Governors’ Forum Akinremi Feyisipo, Ibadan

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he Director-General of the Nigeria Governors’ Forum, Asishana Okauru, has appealed to the people of the state to scrutinize the pedigree and antecedents of those angling to take over the baton from Governor Abiola Ajimobi in May, next year.

He stated that people should ensure that they elected a candidate that would build on the solid foundation Ajimobi had laid in the last seven and a half years.

According to him,such a person must sustain what he called the momentum of rapid development of the state.

The DG during a visit courtesy to the governor, said that he was impressed by the beautiful scenery and comely appearance of Ibadan while on his way to the Government House.

Okauru graduated from the University of Ibadan in 1998 and was conferred with an award of merit by the institution’s Alumni Association on Saturday for what the organizers called his outstanding contribution to the growth of the association and the country’s polity.

He said, “Ibadan has changed from what it used to be. It is now clean.

There is massive development with a thriving economy and I think this government has done so well. I think we have got a solid foundation, created in the last eight years of Governor Ajimobi’s administration.

“This is not the same Ibadan that I left as a fresh graduate 20 years ago. I have visited a number of other cities in the country and I think a lot has happened here within this period if I have to compare; wonderful road networks, despite the economic downturn in the country.“As citizens, I think we should appreciate the current government for its efforts even in the face of funding challenges and capacity issues. It is worthy of note that the Governor Ajimobi’s administration has managed all these things well and has provided an enviable governance.

“Without doubts, he has raised the bar of governance in Oyo State when you consider the rapid infrastructural growth the state has witnessed, which has enhanced its economy. My advice to his would-be successor is for him to sustain this momentum.”

Responding, the governor thanked his visitor for the commendation, but added that the overwhelming support of the good people of the state, as well as those of institutions had made it possible.

dynamic leadership of President Olusegun Obasanjo, we paid off Nigeria’s entire foreign debt.

“We also introduced the GSM revolution that saw Nigeria go from 100,000 phone lines to over 100 million today. We were able to achieve these, and much more, because we had a plan.

On restructuring, the business tycoon stated that, “my plan to restructure Nigeria will lead to a vast

increase in the Internally Generated Revenue both for the Federal Government and the states via the matching grants that we will provide to state governments that increase their own revenue.

“Let me be clear no state will receive less funding than they get today – in fact all will receive more and the harder a state works the more they will get.

The PDP Presidential Standard bearer assured Nigerians that his policy was not the usual promises made by political office seekers but a genuine covenant with the people to provide succour to them after years of economic set back and appealed to Nigerians to him their mandate.

“Today we will begin the process of sharing our policies that form my plan to create jobs, restructure the polity, and Get Nigeria Working Again. My plan will empower Nigerian women, reduce maternal mortality and increase their financial stability.

“My plan will empower Nigerian women, reduce maternal mortality and increase their financial stability.

My plan will cater for the elderly, so our people are not afraid of growing old.

“But above all, my plan will help create jobs because in my many travels across our great nation the one consistent thing I hear wherever I am is that our people need jobs.

“The most important question in this election is: “Are you better off than you were four years ago?

Are we richer or poorer?” That is why our primary focus is on getting Nigeria working again.

“Too often, Nigerians have been promised better governance by those seeking their votes. Such individuals have preyed on the legitimate desires of our people for their conditions to be improved, that they make all sorts of promises.

“As the International Monetary Fund stated very recently, it is the failure of this government to have a coherent and comprehensive set of policies combined with poor leadership that has led to its failure to deliver.

“Over the last 18 months, I have worked with the best experts Nigeria has to offer to come up with policies and plans that when implemented will get Nigeria going in the right direction again.

“And I am not just presenting these policies to you, I want you to own them. Take a look at them.

You can view them on facebook and on the pamphlets that we are making available to the public, you will have an opportunity to provide your feedback.

“It is time to Get Nigeria Working Again. I appeal to you to join me on this journey towards a better life for all Nigerians”, Atiku appealed.

Kwara PDP condemns rep by-election results, calls for conciliation SIKIRAT SHEHU, Ilorin

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he Peoples Democratic Party (PDP) in Kwara State has condemned and rejected the results of the by-election conducted in Ekiti/ Irepodun/Isin/Oke-Ero Federal Constituency where the candidate of the All Progressives Congress (APC), Raheem Tunji Olawuyi, was declared winner.

However, the party described the outcome of the election as a daylight robbery and did not reflect the will of the people as

its members were harassed and intimidated during the poll.

Kola Shittu, the state PDP Chairman, who stated this while addressing journalists in Ilorin, equally described the election as a charade and direct assault on the nation’s democracy.

He noted that some of the concerns raised by the party prior to the conduct of the election, which included alleged importation of thugs, intimidation and heavy deployment of security personnel later manifested during the poll.

The party Chairman lamented that the poll was characterised by

ballot box snatching, widespread irregularities and illegal arrest of members of the PDP before and while the election was on going.

Shittu, however, called for immediate release of members arrested and outright cancellation of the election because it fell short of the expectations of the people of the constituency.

He added that the brazen subversion of the will of the people, which the outcome of the election represented was an indication that the APC led federal government was not ready to deliver free, fair and credible elections in 2019.

Campaigns: Avoid any form of violence, Ondo police warns politicians YOMI AYELESO, Akure

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s the campaign for the 2019 presidential and National assembly elections kicked off, the police command in Ondo state has warned politicians in the state to avoid any form of violence.

The Police Public Relations Officer (PPRO) Femi Joseph gave the warning on Monday in an interview with our correspondent in Akure ,the Ondo state capital.

The police spokesman urged politicians contesting for different positions to educate their followers

across the state to shun politics of hooliganism and thuggery, saying the command was battle ready to nip in the bud activities that would lead to breakdown of law and order.

Joseph disclosed that political parties should avail the command with their campaigns timetable so as to avoid clash of rallies by two or more political parties.

While maintaining that the police would not hesitate to arrest anyone who run foul of the law,the PPRO advised parents to warn their wards not to be tools in the hands of politicians to disrupt existing peace in the state.

His words: “We are very aware that

campaign has started,most especially for the Presidential and National Assembly elections. We at the command will partner with them as usual and we encourage them to cooperate with us in all their activities.

“They should not keep us in the dark,they should let us know whenever they are having campaigns and the venues. We will request them to bring their time table for the campaign so that the campaign of two different political parties do not clash. We will be able to streamline it,to ensure that security is provided where needed so that everything will go on without any modicum of harassment.

BUSINESS DAY

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Live @ The Exchanges Top Gainers/Losers as at Monday 19 November 2018 GAINERS Company

Market Statistics as at Monday 19 November 2018

LOSERS Opening

Closing

NESTLE

N1480

N1500

20

FO

N20.6

N19

-1.6

NB

N82.8

N85

2.2

MBENEFIT

N0.25

N0.23

-0.02

GLAXOSMITH

N12.05

N13.25

1.2

UNIONDAC

N0.25

N0.23

-0.02

VOLUME (Numbers)

FLOURMILL

N17.2

N18

0.8

WAPIC

N0.42

N0.4

-0.02

VALUE (N billion)

N199.1

N199.5

0.4

DIAMONDBNK

N0.9

N0.89

-0.01

MARKET CAP (N Trn

TOTAL

Change

Company

Opening

Closing

Change

ASI (Points)

32,222.24

DEALS (Numbers)

2,853.00 148,101,533.00 1.796 11.763

NSE reels out penalties for defaulters in SECapproved amendments to Dealing Members rules Stories by Iheanyi Nwachukwu

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he Nigerian Stock Exchange (NSE) has received the approval of the Securities and Exchange Commission (SEC) to implement the amended Dealing Members Rule(s) 7.4 and 7.5. SEC approved the amendments to Dealing Members’ Rules (Part XIIB) on November 9, 2018 while it becomes effective on November 19, 2018, according to a notice signed on November 16 by Tinuade T. Awe, Executive Director, Regulation, NSE. The amended Rule 7.4 in the NSE Rule Book for Dealing Members refers to submission of financial and non-financial reports

to the Exchange while that of Rule 7.5 refers to extension of time for submission of audited financial statements, and quarterly returns.

Under the amended Rule 7.4, every Dealing Member is now required to submit to the Exchange its audited annual financial statements, within ninety (90) calendar days of the end of the fiscal year, and its quarterly financial statements returns within thirty (30) calendar days of the end of the quarter; and any other periodic report within the period stipulated by The Exchange.

It also requires that all their financial statements be prepared in accordance with the requirements of the International Financial Re-

porting Standards (IFRS) applicable to the period covered in such financial statement(s).

The Exchange said it shall communicate the need for submission of any other periodic financial report to Dealing Members through its circular to the market.

“If a Dealing Member fails to comply with this provision, it shall be liable to the following penalties which are subject to review

by Council and any change thereto shall be made public by way of a Circular”, according to NSE. For instance, failure of a Dealing Member to submit quarterly returns on the date due for submission shall attract a penalty of N5, 000 per day of default, and the Dealing Member shall be sus-

L-R: Foster Ogola, deputy chairman, Senate Committee on Capital Market; Mary Uduk, acting director general, Securities and Exchange Commission; Shaaba Lafiagi, member, senate committee on Capital Market; Isyaku Tilde, acting executive commissioner, operations SEC and SEC; Henry Rolands, acting executive commissioner cooperate services during the Senate Committee on Capital Market Oversights Visit to SEC in Abuja.

pended from trading with effect from the first trading day after the due date.

Also, failure of a Dealing Member to submit audited financial statements on the date due for submission shall attract a penalty of N5, 000 per day of default for a maximum of four (4) weeks.

Where a Dealing Member fails to submit its audited annual financial statements after four (4) weeks of default, the Dealing Member firm shall be suspended from trading forthwith. Failure of a Dealing Member to submit any other periodic reports on the due date for submission shall attract a penalty of N5, 000 per day of default for a maximum of four (4) weeks.

Where a Dealing Member fails to submit

the periodic report after four (4) weeks of default, the Dealing Member firm shall be suspended from trading forthwith.

Where a Dealing Member is suspended from trading under the above circumstances such suspension shall be lifted upon submission of the quarterly returns, or audited financial statements or other periodic reports.

On amended Rule 7.5, where appropriate, a Dealing Member is now required to apply for an extension of time for the submission of its quarterly returns, or audited annual financial statements.

“Such application for extension shall be made no later than two (2) weeks before same is due and such Dealing Mem-

ber shall be expected to give reasons for requesting the extension”, the NSE stated.

The decision to grant a Dealing Member’s request for an extension of time under the above subarticle shall be entirely at the discretion of the Exchange and such extension shall in no event be longer than a period of four (4) weeks from the due date for submission for quarterly returns, and eight (8) weeks for audited financial statements.

Where a Dealing Member fails to submit its quarterly returns or audited annual financial statements at the expiration of the extended period granted, the Dealing Member shall be suspended from trading forthwith, the NSE noted.

L-R: Olumide Orojimi, head, corporate communications department, The Nigerian Stock Exchange (NSE), Oscar N. Onyema, OON, chief executive officer, NSE; Stefan Traumann, German consul general and Pai Gamde, chief human resource officer, NSE during a Closing Gong Ceremony to discuss on more collaborative opportunities with the Exchange today in Lagos.

IOSCO says members compliant with principles for commodity derivatives markets

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he Board of the International Organisation of Securities Commissions (IOSCO) on Monday published the findings of an updated survey that show respondent IOSCO members to be broadly compliant with the IOSCO Principles for the Regu-

lation and Supervision of Commodity Derivatives Markets (the Principles).

In 2010, the G20 Leaders identified the regulation and supervision of the commodity derivatives markets to be a G20 priority and requested that IOSCO develop the Principles. IOSCO published the Principles in

2011 which help to ensure that commodity derivatives markets are able to facilitate price discovery and hedging activity while avoiding manipulation and abusive trading.

In 2013, the G20 Leaders requested that IOSCO monitor the implementation of the Principles on a regular basis. The report

published today represents the third review conducted by IOSCO of the implementation of the Principles, following previous reviews conducted in 2012 and 2014.

The report shows that IOSCO members have made substantial progress towards achieving full compliance and,

in many cases, have strengthened their implementation of the Principles. The report provides a summary of the updated survey results and sets out the specific areas in which IOSCO members have achieved compliance through the implementation of regulatory reforms.

The survey provided an opportunity for IOSCO members to self-audit their current regulatory practices and identify the measures that could help them comply with the Principles. IOSCO members from EU member states prepared a single joint response to the survey.

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WePay e-commerce platform debuts in Nigeria FRANK ELEANYA

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ePay, the newest ecommerce platform in Nigeria, has promised to offer great customer services to the country’s online shoppers on its platform.

BODC Trading and Investment Company Limited made this promise at the launch of the WePay platform at their office in Ikoyi, Lagos, on Monday.

Akin Kehinde, the company’s managing consultant, in his welcome remark, said the platform was poised to offer unmatchable sales deals and amazing after-sales services to customers to ensure that they have the best customer experience.

Kehinde further said, “We pride ourselves as a platform that offers a wide range of products, including the latest of the mobile devices available at cash or credit term payment option, driven by a robust credit check technology. “It is our focus on driving the best customer experience

leveraging our strengths in the after sales and support in the industry. As a matter of fact, the purchase of a mobile device from our platform marks the beginning of a rewarding journey with us.”

Kehinde listed some of the extended warranties and after care services that come with the platform to include repairs and maintenance of customers’ devices, free accessories like battery chargers, Bluetooth earpieces, hands-free cords, beautiful device casings, external speakers and pouches, table holders, among others.

“Our platform will offer the customers extended warranties of three to six months beyond the manufacturer’s warranty, screen protection insurance, opportunities for device upgrade, as well as trade-in programmes,” he said. The WePay e-commerce platform is created to deliver to Nigerians the same world-class services their counterparts in the developed countries of the world enjoy in the area of online shopping, he said.

“We are bringing to Nige-

ria and Nigerians, the same quality services that their contemporaries in most developed countries of the world have been enjoying for years,” he said.

The company relies on the combination of its cutting-edge technology deployment and knowledge of the Nigerian market to deliver to the consumers the flexibility on pricing.

He called on Nigerians, wherever they might be, to log on to the WePay ecommerce portal, www.wepayng.com to purchase the devices of their choice with all the ease that the platform was offering for various pickup locations, or the option to have these devices delivered to them at their various locations nationwide within the shortest time possible.

He described the portal as, “attractive, forward-looking, sophisticated, contemporary, inspiring, highly interactive and secure,” ensuring that the usual frustration that characterises online shopping was greatly minimised and the customer’s shopping time was efficiently utilised.

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NEWS Rosy political manifestoes belie Nigeria’s...

Continued from page 2

recession since 1991.

The economy recovered in 2017 as oil prices recovered and production somewhat stabilised.

At the end of 2017, the economy climbed 0.8 percent and has since expanded 1.7 percent in the first half of 2018, according to data by the National Bureau of Statistics (NBS).

However, economists and business leaders say Africa’s largest producer has papered through the cracks and has the rise in oil prices to thank for exiting recession while critical economic reforms have stalled.

They point to how the economy has continued to record a negative GDP per capita three years straight since 2015, as population growth of around 3 percent annually outpaces economic growth.

The Economist Intelligence Unit (EIU) forecast that real GDP will average 2.7 percent a year from 2019 to 2023, “but only slowly given numerous structural constraint as well and as an unsettling election

season in 2019 and a weak global economy in 2020.”

“It will be indeed difficult to get the economy growing at 10 percent per annum, in the next 7 years with the kind of structural imbalances in the economy,” said Tajudeen Ibrahim, head of research at Lagosbased investment bank, Chapel Hill Denham.

“If Atiku was referring to nominal growth then it’s possible with an average inflation rate of 11 percent,” Ibrahim said by phone.

The International Monetary Fund (IMF) expects GDP per capita to fall for eight straight years in Nigeria if reforms continue to stall.

Fiscal reforms required to stimulate growth such as the Petroleum Industry Governance Bill (PIGB) which will boost investment inflows into the country’s largest recipient of foreign capital, the oil and gas sector, has stalled for over a decade.

“The upcoming general election offers candidates an opportunity to debate possible measures to address fiscal vulnerabilities,” Omotola Abimbola of Ecobank research

said in a Nov 19 note to clients.

“Regardless of who wins, we believe Nigeria is due for some structural adjustment measures to consolidate public finances and the incoming administration will be left with no choice than to implement necessary but unpopular revenue measures. We consider the removal/sizeable reduction of petrol subsidy to be the low hanging fruit to immediately boost revenue, along with an increase in VAT rate (from 5%) as already being contemplated,” Abimbola said.

The government has continued to fritter away billions of naira that could have been invested in infrastructure, on maintaining expensive subsidies for fuel, power and foreign exchange in a country with a budget deficit of over N2 trillion in 2018.

Low revenues have not dissuaded the government from frivolous spending as it has resorted to borrowing at a huge cost to meet its recurrent expenditure obligations.

BusinessDay reported Monday, Nov 19, that the government spends N5.7 billion daily in debt serving costs in the first half of

2018 according to data extracted from the bond prospectus for a $2.8 billion Eurobond that was sold last week.

The country’s debt stock has doubled to N22 trillion from N11 trillion in 2014.

The government says proceeds of the debt have been used to fund the budget, which sets aside 75 percent of expenditure for recurrent costs.

Data from the same government refutes that claim.

Between 2015 and 2018, actual recurrent expenditure averaged 83.75 percent while capital expenditure averaged 16.25 percent, according to the NBS. Borrowing to pay salaries and meet overhead costs has been flagged for the wrong reasons by the IMF and local economists who worry that the country may be digging a debt trap for itself.

As part of his campaign promises, Atiku and Moghalu say they will improve spending efficiency of the Federal government and reduce recurrent expenditure.

As at August 2018, the Federal government had spent N3.6 trillion of the N6.1 trillion budgeted

spending for the period, with recurrent expenditure taking up the larger part, 92.6 percent, according to a budget performance document or MTEF. In the period between January and August, only N4.38 billion was spent on infrastructure. To understand how abysmal that amount is, the capital expenditure of 40 listed non-financial companies (on the Nigerian Stock Exchange) within the same period of January to August 2018 was N210 billion which works out to N5 billion per firm, according to data compiled

by BusinessDay. Recurrent expenditure will only rise following the recent approval for a 67 percent minimum wage hike to N30, 000, which increases the size of the government’s pay roll.

This means that reducing recurrent expenditure is more likely to happen by boosting revenues rather than trimming recurrent expenditure and would require boosting revenues by over 200 percent, analysts say.

In 2017, the government’s actual revenue was only N2.7 trillion, less than 50 percent of a N5 trillion target.

OML 30: How alleged $18.48m NNPC...

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Sean Hoy (l), outgoing ambassador of Ireland to Nigeria, with Kennedy Uzoka, group managing director/CEO, United Bank for Africa (UBA) plc, during a courtesy visit at the UBA House in Lagos.

DMO clarifies issuance of promissory notes...

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in order to kick-start the process.

“Given that these were largely unverified amounts, it became prudent on the part of Government to include processes that would be adopted in the implementation of the Programme that would ensure transparency and Value for Money before the Promissory Notes are issued,” the DMO said in a statement.

One of such processes is the validation of the amounts against each creditor by an International Accounting Firm operating in Nigeria.

Based on the approval by

FEC, the DMO initiated steps towards the implementation of the Programme, one of which is the appointment of advisers using the provisions of the Public Procurement Act, 2007.

However, since the Programme involves the issuance of Sovereign debt instruments, which require the approval of NASS, as provided in the Fiscal Responsibility Act, 2007, the DMO said there was a limit to what it could do without a NASS approval.

The required NASS approval was only received on September 26, 2018 through a letter from the

Clerk of the National Assembly.

“With the approval of NASS now in place, the DMO has accelerated implementation of the Programme, which it will implement in accordance with the process approved by FEC,” the DMO said.

The claims by Oil Marketers are for accrued interest and foreign exchange differentials.

Whilst some of the issues involved in the implementation of the Programme have been explained to representatives of the Oil Marketers, the DMO has invited the Oil Marketers to a meeting this week to explain the process to them and provide a Status Report.

tor? Who issued the said Executive Order? Why the secrecy and why shut out others who could deliver same service at a far lesser bid out? Why exclude the previous contractor, who had delivered an impeccable services because I gathered that there were no negative incidences on the facilities for the period the former contractor ran it?

“The NNPC, with all its baggage must provide answers to these questions. I guess you are aware that there have been a couple of very shady and question events that have been reported out of the corporation in the last few month, bordering on question of non-remittance of accruals as well as awards that fell short of meeting due process.

“I think President Buhari should take another look at the way that place is being run by those he has placed in charge; NNPC is directly under his watch and things like this can’t be sailing every time and he should expect us to continue believing he is still a man of integrity,” he said.

Also speaking on the development, the spokesman of the Ijaw Youths Council (IYC), Daniel Dasimaka, highlighted the inherent security threat associated with the new contract approved by the NNPC to Ocean Marine.

According to him, “they might not have paid attention to the serious threat this poses to the peace and security of the communities and Delta state as a whole. There’s a running contract, approved by the operators of the assets to a contactor that has been doing an awesome job on the assets; no reports of negative incidences and the communities are happy.

“Imagine the sort of tension that has attended this new approval in just a few days, the silent and cold wars. This is a latent crisis situation on our hands and I won’t buy the narrative that they never envisaged a war from this. Why award an already running contract to another company? Awarding a security job to two different companies, in an area that is considered volatile is a perfect recipe for chaos and a sabotage to the relative peace of the area.

“Polarizing the youth bodies and ex agitators is only a recipe for

renewed militancy. The mindset of the youth is often times focused on destroying or attacking oil infrastructure to gain relevance and recognition. NNPC should not create the opportunity for this to happen.

“My appeal will go first to the GMD of the NNPC to have a second look at this security-risk of an action.

Why approve such a huge contract without the input of the operators, is it for lack of a better coordination or is there something that the eyes mustn’t see? I will also call on all security agencies; the DSS, Nigerian Armed Forces and the police to step in now and stop this potential security risk. I am concerned, I don’t want them to turn my community and state to another war zone,” Dasimaka warned.

At the community level, thousands of youths and ex-militants from the 111 communities who are hosts to OML 30 assets have raised the alarm over what they described as an impending chaos in their communities and the state.

The youths, in a recent protest to the Delta state Government House in Asaba, alleged that the NNPC alliance with Ocean Marine was about to deprive them of their livelihood, render thousands of them jobless and in effect fuel a new round of unrest in the communities.

“We have come to peacefully protest what we consider a violent infringement and a deliberate attempt to render thousands of Delta state youths jobless by a callous and ruthless political jobber, backed by the heartless cabal in the presidency.

“The surveillance and protection of Trans-Forcados Pipeline taking crude oil from our communities to the Forcados Terminal has been our duty, which has put food on the tables of thousands of our homes and ensuring peace and tranquillity in many communities of our state in the last two years,” the protesters had said.

However, when reached for comment on the development, the Group General Manager, Group Public Affairs Division of the NNPC, Ndu Ughamadu, declined comment but asked our correspondent to redirect his inquiry to his WhatsApp line which he never responded to as at press time.

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Road to 2019

Why Nigeria is Broken and how to fix it Slow growth, uncompetitive economy highlight challenge for next president

ODINAKA ANUDU

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igeria’s economic performance has been lacklustre since 2015 when the country slipped into its first major recession in 25 years.

GDP growth declined from 2.11 percent in Q4 2017 to 1.95 percent in Q1 and 1.5 percent in Q2 of 2018.

The manifesto released by PDP presidential candidate, Atiku Abubukar, mentions some of these problems, stating, “Nigeria’s economy is uncompetitive, undiversified and foreign direct investments are in decline.”

The challenge for the next president (whoever it is may be) would be to navigate these problems amid a still fragile recovery, little or no elite consensus on the way forward and a short electoral cycle (four years) that discourages reforms.

Key economic sectors are dragging owing to what many analysts call ‘absence of economic direction’.

The major economic challenge facing Africa’s biggest economy is poor ease of doing business environment. Nigeria ranks 115th out of 140 countries in World Economic Forum (WEF) competitiveness ranking, which is worse when compared peers such Brazil, South Africa and Turkey.

In 2016, Nigeria embarked on several reforms—ranging from

ports to taxes— to attract new investors and retain existing ones.

This culminated into the establishment of the Yemi Osinbajo, the vice president-led Presidential Enabling Business Environment Council (PEBEC), whose reforms moved Nigeria 24 places in the World Bank Ease of Doing Business index, from 169 to 145 in 2018.

However, Nigeria dropped a spot to 146th among 190 countries in the World Bank’s 2019 Doing Business Index despite an improvement in ease of doing business score from 51.52 to 52.89.

In 2017, Foreign Direct Investment returned $987 million in 2017 as against $4.7 billion in 2014.

The FDI slumped by 29 percent to N379.84 billion in the first half of 2018 from N532.63 billion in the corresponding period of 2017 owing to the closure of two global lenders, according to CBN 2018 half year data.

Foreign portfolio investors who brought in N437.14billion into the stock market as of August took N469.71billion out of the same market, according to the trading figures from major custodians and market operators on their Foreign Portfolio Investment (FPI) flows. Total transactions on the Nigerian Bourse declined from January high of N394.44billion to N133.84billion in August.

Analysts say portfolio inflow

into the Nigerian equity market will remain subdued over the rest of the year. They angle their expectations on political uncertainties, the trade spate between the United States and China.

“Higher yield in developed economy and tensed political climate in the country were major reasons for investors pulling out despite the relative stability in exchange rate”, Damilare Asimiyu, economist and research analyst at GTI Group said in a recent note.

Two foreign banks—HSBC and UBS— have exited the country, bringing the number of foreign banks to eight as of end of June 2018, according to CBN. In 2014, Procter&Gamble set up a $300million diaper line in Agbara, Ogun State, which was tapped as biggest US non-oil investment in Nigeria.

Four years after, the company has packed up, citing restructuring as its main reason. But those familiar with the company told BusinessDay that the company had to shut down its Agbara plant due to high production cost incurred at the plant.

Local manufacturers spend billions of naira annually on energy, resulting in high production cost and skyrocketing prices of goods. Manufacturers spent N51.35 billion on alternative energy sources in the second quarter (H2) of 2017; N66.03 billion in the first half (H1) of 2017; N62.96 billion in H1 of 2016, and N69.99 billion in H2 of 2016, according to

the Manufacturers Association of Nigeria (MAN).

“It is no more news that manufacturers in Nigeria currently selfgenerate over 13,000MW through alternative sources of energy in order to stay afloat. In fact, cost of alternative electricity generation alone constitutes about 40 percent of our production cost.

With such high costs, made-inNigeria products will hardly be competitive,” Frank Jacobs, immediate past president of MAN, said at a special interactive forum on Eligible Customer Regulation of the Nigeria Electricity Regulatory Commission (NERC) in June 2018.

Number of taxes payable by businesses across the country is 54 as against 37 in 2014.

The sudden suspension of the Export Expansion Grant in 2013 and continued delay in its implementation since Buhari came on board in 2015 have axysphiated exporters, making their products uncompetitive in the global market. The scheme was originally meant to cushion the effect of high production cost for exporters in order to make them competitive, but exporters are now left with little option as some of them like RN Global have closed shop.

Manufacturers say that high interest rate, necessitated by high inflation rate, is squeezing them.

Results of survey conducted

by MAN shows that the average interest rate banks charged manufacturers in the second half

(H2) of 2017 was 23.05 percent as against 22.65 percent in first half (H1) of 2017 and 21.4 percent in H1 of 2016.

Nigeria’s infrastructure state has worsened, with roads to Apapa and Tin Can ports in Lagos almost inaccessible.

GE, last week, pulled out of the consortium that was going to invest $2.0 billion into the country’s railway into Apapa.

The country dithered for two and a half years until GE sold its global transport business, resulting automatically in a pull-out of the deal it had with Nigeria.

Nigeria loses N6.7 trillion annually to the state of the ports, according to a latest report released on Tuesday by the Lagos Chamber of Commerce and Industry (LCCI).

A breakdown of the numbers shows that Africa’s biggest economy loses N600 billion in customs revenue, $10 billion (N3.6trn) in non-oil export sector and N2.5 trillion in corporate earnings across various sectors on annual basis.

“The concessioning of Onitsha seaport should be finalised, while government should improve the security situation along and within the Warri port in order to ward off militants and touts. Stakeholders request that government should approve and publicise a bouquet of incentives to importers and exports that patronise ports outside Lagos,” Babatunde Paul Ruwase, president of the LCCI, said in a press conference.

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Road to 2019

Why Nigeria is Broken and how to fix it How Oby Ezekwesili plans to fix Nigeria In an extensive thread on her Twitter handle on November 13, Obiageli Ezekwesili, presidential candidate of the Allied Congress Party of Nigeria (ACPN), outlined her plans to fix Nigeria. Below is her thoughts on how Nigeria can become realise the dreams of its forefathers.

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et me highlight the economic philosophy of my government, the fundamental principles and concepts that will guide our governance from Day 1.

launch a Teachers Top Talent (TTT) Initiative. The aim of the program would be to attract top talents into teaching because we really have no option. Teaching has to become the first thing that an academically accomplished and problem solving individual thinks about. We would provide sweeteners to encourage the brightest and best into the teaching profession.

Dominant belief in the private sector.

A strong belief in the dominant economic role of the private sector and a commitment of our government to launch vigorous market economy reforms. Through policy, effective regulation and catalytic public investment in the provision of basic services for people and businesses, we will accelerate and expand the sources of growth in the economy.

Deregulation A massive programme of deregulation of the Nigerian economy to unleash the depth of competition and efficiencies necessary for higher and deeper economic growth and expansion of the economy.

The division and rebalancing of roles between business and government will reduce opportunities of corruption and bottlenecks that limit the competitiveness of the Nigerian economy.

Inclusive growth A commitment to pursuing growth that is inclusive which is a necessity for lifting the poor to an improved state of well-being. Research has shown us that the poor are uplifted faster in a market economy cushioned by relevant safety nets.

A dedication to improving the productivity and competitiveness of Nigeria and Nigerians in every sector of economic activity by removing barriers and providing a menu of sound policy measures.

A deliberateness in easing the Doing Business environment not just for major businesses in Nigeria but for Micro, Small and Medium Enterprises, which are the lifeblood of our economy.

But the thing is that the government does not have the resources or the capacity to provide these much-needed jobs. That is a settled truth, no matter what any politician says to you.

Therefore, in building our new Nigeria, the private sector will be the engine of economic growth and development. Our philosophy for tackling the challenges we face will be market based, private sector driven and government supported.

Role of the Government Government has a role to play in enhancing the market, not undermining it. When I am president, we will embrace that role.

We will set the vision; lead on policy; ensure smarter, better and clearer regulations; help correct market failures; and invest in critical areas like developing the human capital to power our 21st century economy and leading the way on big ticket infrastructure.

Now, let us talk about some of our programs; some of the ways we intend to lift 80 million Nigerians out of poverty and propel this country and its great people to their rightful place in the world.

Human capital development Human Development shall be our New Economy. Education and skills development of healthy Nigerian people shall be our Number One priority. No matter what we do, we would never win the war on poverty without investing massively in human capital development. That is why in our @ACPNHOPE government, education will be the new oil.

Education will be the new economy. My vision for education is one that will nourish the mind and create a progressive society that competes globally. If our current and future human capital is not educated, they will most likely end

up in poverty and our economy will lose the productivity that they would have added.

We shall launch a root and branch reform of all the levels and phases of education. Early childcare education, basic education, secondary education, special needs education and adult/informal education will all be systemically reformed to achieve universal access to quality and relevant education by all Nigerians.

Education, training and skills development remain the most potent tools of economic and social mobility in all progressive societies.

Breaking the vicious circle of poor education is crucial for promoting inclusive economic growth and decent jobs for all. Just look at the numbers of children out of school in Nigeria: 13.2 million children.

That is a timebomb, and it is already exploding all around us. 22 percent of the total number of out-of-school children in the whole world are our Nigerian children.

My government will reverse that.

Starting from next year, we would quickly move to improve access.

My government would reduce the number of out-of-school children by 20 percent annually. That will bring it down from the current 13.2 million to about 5.4 million by 2023.

And by then, we would have put structures and policies in place to ensure that the progress is irrevers-

ible and Education-For-All will be achieved well before 2030. You can hold me to this. Do you know how I know that it can be done? Because I have done it before. I served as education minister for 10 months - which is one academic session.

From the year 2000 till today - that is a period of 18 years - the only time that the number of outof-school children in this country reduced was when I was education minister. This is fact - the records are there. In just 10 months, we dropped the number by almost half a million, but the moment I left the ministry of education in 2007, the number immediately jacked up by almost two million. And it has never dropped again since then.

Quality of teachers I believe, and there is enough evidence to back me up, that the most important thing that transforms education in any society is the quality of teachers. We have a serious challenge with teacher quality in this country. In one particular state, only 0.03 percent of teachers were fully competent to teach Mathematics & English language at primary level. The noble teaching profession has been so rubbished that it now only attracts those who do not have alternatives.

That is a disaster.

Upon getting into office, my government would immediately

A house for every teacher One such initiative would be the Housing All Teachers (HAT) program which would ensure that a top talent who chooses to go into teaching would have an immediate chance to become a homeowner.

We would provide seed money, state governments would provide the land and we would get developers to come on board. Home ownership is one of the fastest ways of reducing poverty.

When a top talent realises that she has a cheaper opportunity to own her own home rather than she would have while renting in another profession, it would spark interest in teaching. Of course, the other positive of the HAT program is the number of jobs it would create.

Just imagine the number of houses that need to be built to house the hundreds of thousands of teachers across the country.

Certification of teachers Still on the issue of teachers, another initiative that we would be launching is the Teachers Prestige; Teachers Pride. This initiative would include In-Service programs in which teachers would be sponsored on professional trainings and staff development modules where they meet their peers, discuss methods and case loads. It would also include giving a bite to the Teachers Regulatory Council (TRC) to implement adherence to certain milestones which teachers must reach to be rewarded.

If other professions like Accounting, Medicine and Law are so thoroughly regulated, there is no reason why the very important teaching profession should not be similarly regulated. The Teachers Prestige; Teachers Pride initiative would also partner with the teachers’ union, state govts., and other stakeholders to look at the payment package of our teachers in order to agree on the scale of rewards & opportunities needed to attract top talents.

Tuesday 20 November 2018

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FINANCIAL TIMES

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Business group backs emission-reducing industry changes

Michel Barnier proposes extending Brexit transition to 2022

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World Business Newspaper

Carlos Ghosn ‘arrested’ and faces ouster at Nissan

Japanese car maker accuses long-time executive of ‘significant acts of misconduct’ Kana Inagaki and Peter Campbell

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arlos Ghosn has been arrested and is set to be ousted as chairman of Nissan, the Japanese carmaker confirmed after it accused the man who has led company for almost two decades of “numerous” acts of misconduct.

Marking an abrupt downfall for one of the most powerful and highestpaid executives in the global motor industry, Nissan issued a statement on Monday saying an internal investigation had revealed that Mr Ghosn had understated his income over many years.

It also said “numerous other significant acts of misconduct have been uncovered, such as personal use of company assets” by Mr Ghosn and another director Greg Kelly. The statement came after Tokyo prosecutors raided Nissan’s offices on Monday.

Shortly afterwards, Mr Ghosn was arrested by Tokyo prosecutors, according to Japanese media. His arrest was confirmed by Hiroto Saikawa, Nissan’s chief executive, at a press conference where he criticised much of Mr Ghosn’s legacy.

He said Mr Ghosn’s influence as chairman of both Nissan and Renault was a “factor” in his ability to carry out the misconduct.

“This is the negative aspect of the long regime of Mr Ghosn,” he said.

“This is a fact that we need to admit.”

Mr Ghosn’s impending removal from Nissan may have implications for his other corporate roles. As well as chairing Nissan, Mr Ghosn is chairman of Mitsubishi and chief executive of Renault. He also leads a global alliance of the three carmakers, which together are one of the largest manufacturers in the world.

Nissan said it has been investigating Mr Ghosn and Mr Kelly for months following a report from a whistleblower.

Mr Saikawa said the board would seek the removal of Mr Ghosn as chairman and Mr Kelly as representative director at a meeting on Thursday.

Mr Ghosn enjoys rock star status in Japan after rescuing Nissan as its chief executive and part-merging the company with Renault.

Until 2016 he served as chief executive of both carmakers. He is due to serve as Renault’s CEO until 2022, though previously told the Financial Times he may step back early from the post.

The Renault-Nissan-Mitsubishi Alliance, built up over two decades by Mr Ghosn, is among the world’s largest carmakers, with the three companies linked by cross-shareholdings as well as cost saving and synergy targets aimed at making them operate like a single company.

Mr Kelly joined Nissan’s North American unit in 1988 and has mostly spent his career in human resources.

Before joining the Japanese carmaker,

Carlos Ghosn is one of the highest-paid executives in the global motor industry © Bloomberg

he was an attorney at US law firm Barnes & Thornburg.

Shares in Renault fell more than 12 per cent in morning Paris trading. Nissan shares traded in Germany declined 10.9 per cent.

“The initial share price reaction shows how pivotal he is,” said Raghav Gupta-Chaudhary, an analyst at Citi.

Arndt Ellinghorst, lead auto analyst at Evercore ISI, said: “If Ghosn were to have to step down prematurely from either Renault or Nissan, then it would be a setback for one of the major catalysts for Renault stock; namely corporate action to address the present Alliance

structure.”

The allegations against Mr Ghosn come as Nissan has already drawn the ire of Japanese authorities after it admitted to falsifying exhaust emission and fuel economy data in July following a scandal last year when it revealed faults in vehicle inspections on cars sold in Japan.

Renault declined to comment while Mitsubishi and the Alliance were not immediately available for comment.

The Tokyo District Public Prosecutors Office declined to comment.

Mr Ghosn and Mr Kelly could not be

reached for comment. French government officials declined to comment as an investigation was under way in Japan.

Mr Ghosn’s pay at Nissan has faced intense scrutiny since 2010 after he became Japan’s best-paid executive in a country where executive compensation tends to be much lower than international standards.

His annual compensation at Nissan hit a high of ¥1.1bn ($9.8m) in the 2016-2017 fiscal year and he received ¥735m in the most recent financial year along with a ¥227m package from Mitsubishi.

Danske whistleblower criticises Chinese surveillance group faces crippling US ban recognition camera maker Hikvision vulnerable Deutsche Bank’s role in scandal Reliance on American chips leaves facialWashington has already banned equipped with facial recognition, Danish parliament told that $150bn of questionable funds went through German lender

Richard Milne

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s much as $150bn of questionable funds targeted in Danske Bank’s money laundering scandal flowed through Deutsche Bank, according to testimony from the whistleblower at the Danish lender.

Howard Wilkinson, the former Danske executive who warned bank managers in Copenhagen about the suspicious fund flows in 2013 and 2014, told Denmark’s parliament that of the $230bn of potential dirty money that flowed through its Estonian branch, $150bn went through the “US subsidiary of a European bank”.

He declined to name the lender.

But documents from Danske and people close to Deutsche Bank have previously confirmed that Germany’s largest lender was a correspondent bank until 2015.

Mr Wilkinson also hit out at “large US bank 1” — known to be JPMorgan Chase — which stopped its correspondent banking relationship with Danske in 2013 over concerns about the non-resident portfolio in Estonia at the heart of the scandal which ran from 2007 until 2015.

“It takes them seven years,” he said, referring to the time it took JPMorgan to end their relationship with Danske. He made similar comments about “two years” for “large US bank 2”, known to be Bank of America, which was a correspondent bank for Danske in Estonia from 2013 until 2015.

Deutsche Bank and BofA have been asked by the US Department of Justice for information in its probe of Danske. The DoJ has also asked questions about JPMorgan’s role.

Mr Wilkins on’s testimony marked the first public appearance of the British man who exposed one of the largest money laundering cases ever uncovered. It has so far led to the ousting of both Danske’s chief executive and chairman as well as criminal investigations in the US, Denmark and Estonia.

“I don’t want to be here. I think it’s pretty shocking that four-anda-half years on I need to be here because this disgrace is still being investigated,” Mr Wilkinson said at the start of his testimony.

He raised questions about why Danske’s senior management appeared repeatedly unwilling to look into his four emails warning Continues on page A2

Emily Feng

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he facial recognition cameras that track Muslims coming in and out of hundreds mosques in the western Chinese region of Xinjiang owe a debt to American innovation: their computer chips were designed in Silicon Valley.

The maker of the cameras, Hikvision, is one of the world’s biggest CCTV companies, selling video surveillance throughout China and across the globe.

But despite its devices playing a key part in what human rights campaigners describe as the systematic repression of Xinjiang’s 11m Muslim Uighurs, Hikvision has avoided a ban on importing US components.

That is despite China Electronics Technology Group (CETC), its parent company and a state defence contractor, being slapped with just such a ban this year.

The US is now considering sanctions against companies and Chinese officials over Beijing’s detention of thousands of ethnic Uighurs and other Muslim minorities in internment camps, The New York Times reported last month, citing American officials.

government agencies from buying Hikvision products, and concerns among investors about an import ban on US components have contributed to a 37 per cent drop in the company’s share price from its high earlier this year.

Such a move could be crippling.

The core components behind Hikvision’s most cutting-edge products — everything from the sophisticated chips that power its popular “smart” cameras to the hardware that stores highdefinition footage — come from US companies.

The supply chains illustrate just how heavily intertwined sourcing for the Chinese and US tech sectors are, creating potentially disastrous consequences for Chinese companies unable to immediately replace hightech components as the trade war between the two countries simmers.

“Components from western companies are pretty important to Hikvision’s overall supply chain.

At the very least, a US government export ban would cause a major disruption,” said Charles Rollet, an analyst at IPVM, a video surveillance research company.

Globally, Hikvision is known for its high-end cameras, some

a function that relies on powerful graphics and computer chips to analyse surveillance footage.

Only a handful of companies are capable of making these type of chips on a commercial scale.

One of them is Intel and its subsidiary Movidius, which provide computer processing chips (CPUs) as well as graphics chips (GPUs) for Hikvision’s line of Machine Vision cameras and related systems hardware launched last year.

Intel said its “vision products are used by our customers worldwide, including in China, for a broad variety of computer vision applications”.

Nvidia, another American tech multinational, supplies Hikvision with its Jetson AGX “supercomputer” system, a set of deep-learning GPUs that provide the computing power behind Hikvision’s urban surveillance systems.

Ambarella, a California-based semiconductor company, makes powerful “computer vision” camera chips for a wide variety of Hikvision systems, and derives approximately 10 per cent of its $310m in annual revenue from them, according to Morgan Stanley.

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FT India’s tea growers scalded as US sanctions..

Apple boss says tech industry regulation ‘inevitable’

Continued from page A1

of various problems in the Estonian branch. “There was a curious lack of interest,” he said of senior management in Copenhagen, regarding one warning in April 2014 about Danish corporate accounts in Estonia.

He also accused the bank of offering him money to keep him quiet as Danske offered him a pay-off and a non-disclosure agreement within days of him threatening to go to the police in 2014. “It’s fundamentally unclear to me what actually happened and really why the executive board didn’t take action,” he said.

Mr Wilkinson, the former head of Danske’s markets business in Estonia, also took aim at Danish regulators who never contacted him despite being given his contact details by their Estonian counterparts. He told the parliament they should look into “whether there was misconduct by senior officials” at Denmark’s Financial Supervisory Authority over Danske.

Mr Wilkinson has met with the DoJ, the US Securities and Exchange Commission, and the US Treasury in recent weeks, people familiar with the situation have told the Financial Times.

Will $40bn of asset sales be enough to fix GE? Private equity is sniffing around as industrial giant races to reduce debts Ed Crooks and James Fontanella-Khan

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ver the summer, Larry Culp toured some of General Electric’s operations to introduce himself to the company where he had just been appointed lead independent director. After taking over as chief executive last month, he now has to decide which of those businesses he wants to keep.

GE is struggling under its debts — $115bn at the end of September — and Mr Culp has pledged to bring them under control. Last week he told CNBC he was taking on that challenge with a “sense of urgency”, and he underlined that message by selling part of GE’s stake in oilfield services group Baker Hughes to raise about $4bn. On Friday the company also announced the sale of its portfolio of loans and leases for healthcare equipment to TIAA Bank, raising another $1.5bn.

The deals were reminders that, even after all its troubles, GE still has an array of assets that can attract buyers. Over the next year or so, Mr Culp aims to create a smaller but financially healthier version of GE. The question for shareholders is what will be left when that process is over.

GE was built into a sprawling conglomerate by Jack Welch, chief executive from 1981 to 2001, and his three successors — Jeff Immelt, John Flannery, and now Mr Culp — have had to work out how best to dismantle that empire.

Mr Immelt sold the bulk of the financial services operations, but held on to the idea that GE added value to its disparate industrial businesses through shared culture, management techniques, a common research and development effort, and shared software. Mr Flannery turned a sceptical eye on that theory, and in June announced a plan to cut back GE’s corporate centre and focus on just two sectors, electricity and aviation, by selling the Baker Hughes stake and spinning off the healthcare and life sciences division.

Tuesday 20 November 2018

Free market not working in protecting privacy, concedes Tim Cook Hannah Kuchler

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A change of leadership at this point isn’t going to make the negotiations any easier’ - Theresa May on Sky News on Sunday © PA

Michel Barnier proposes extending Brexit transition to 2022 Prolonging free movement and EU payments would fuel Eurosceptic ire Mehreen Khan, Sylvia Pfeifer and Laura Hughes

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reg Clark, UK business secretary, has suggested that Britain would be open to a “maximum” extension of the Brexit transition period until 2022, to ensure a smoother path for business.

Michel Barnier, the EU’s chief Brexit negotiator, on Sunday proposed extending Britain’s transition out of the bloc until as late as December 2022 in a move that could prolong free movement of people to the UK and big payments to Brussels beyond the next election.

This is likely to aggravate Tory party rebels as prime minister Theresa May fights to keep her Brexit deal — and her premiership — alive.

Mr Clark confirmed on Monday morning that if a full UK-EU trade deal was not in place before the end of December 2020 — when the transition is due to end — his preference would be to extend the transition, rather than use the contentious “backstop” plan, intended to avoid a hard border in Ireland.

The backstop would include a customs arrangement for the whole UK but it would not give full frictionless access to the single market; businesses would still face checks for regulatory compliance at the border and more paperwork.

An extended transition would maintain current trading relations.

“Businesses, especially small businesses, would rather it was just one change if it’s a matter of a few weeks or a few months to complete negotiations,” Mr Clark told the BBC’s Today programme.

Asked whether a 2022 transition end-date would be viewed with great suspicion by Eurosceptics, Mr Clark said: “It would be on our

request and that would be a maximum period.”

Mr Barnier told ambassadors of the EU27 on Sunday that any one-off extension to the transition period — during which Britain would continue in effect as a nonvoting member of the bloc — could run for a further two years after the original proposed cut-off, according to a diplomatic note seen by the Financial Times.

The EU negotiator also noted the “volatile” situation in Westminster but urged governments not to consider reopening the withdrawal agreement to help Mrs May. “There’s no need to reopen the text”, he said.

Mrs May said in October that the UK would seek to extend the transition only “for a matter of months” but many diplomats believe more time will be necessary.

The length of an extension is in theory the only outstanding issue in the 585-page agreement to be resolved ahead of a Brexit summit next Sunday.

Su c h a n e xt e n s i o n , w h i c h would be agreed jointly, would give the UK and EU more time to complete a trade deal. But it would also fuel the suspicions of Brexiters that the break from Brussels will be in name only. Britain would be expected to make a significant contribution to the EU budget, which EU diplomats said would be in the range of €10bn€15bn a year.

The disclosure came as British business prepared to intervene on behalf of Mrs May’s draft withdrawal agreement, with a warning that investment is already being lost because of uncertainty over the terms.

The deal has been criticised by pro- and anti-Europeans, and

prompted the resignations of Dominic Raab, Brexit secretary, and Esther McVey, work and pensions secretary, last week. Members of the Eurosceptic European Research Group have threatened to topple Mrs May in order to deliver “a better Brexit”.

But John Allan, president of the CBI, Britain’s largest employers’ organisation, will urge politicians to “listen to the businesses in your constituencies” in a speech at the group’s annual conference on Monday.

“We’re trying to reach a deal that respects the result of the referendum and minimises damage to our economy,” Mr Allan, chairman of supermarket group Tesco, will say.

Mrs May is due to speak at the CBI conference on Monday morning, with Labour party leader Jeremy Corbyn speaking on Monday afternoon.

About 80 per cent of companies have already cut or postponed investment because of the risk of a no-deal exit, according to the CBI. A defiant Mrs May on Sunday warned her critics against trying to oust her. “A change of leadership at this point isn’t going to make the negotiations any easier,” she told Sky News.

About 25 MPs have publicly said they have sent letters to Graham Brady, chairman of the backbench 1922 committee, saying they have lost confidence in Mrs May. He will notify the prime minister if the threshold of 48 letters needed to trigger a vote of no-confidence in her leadership is reached.

Rebel Conservative MPs continued to claim they were “close” to achieving the 48 signatures, although they have been making such claims for many months.

California wildfires estimated to cost insurers up to $13bn The Camp Fire burns in the hills on November 10, 2018 near Ororville, California Oliver Ralph

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he spate of wildfires burning across California will cost the insurance industry between $9bn and $13bn, according to new estimates from modelling firm RMS. The Camp and Woolsey fires have, between them, destroyed 12,000 buildings and killed 80 people, with hundreds more still missing.

RMS’s estimates of the cost of the fires include damage

to buildings, possessions and vehicles, business interruption and additional living expenses for those affected. The Camp fire, in the north of the state, is the most destructive in Californian history. It accounts for the bulk of the expected insurance losses.

The company pointed out that both the Camp and Woolsey fires developed under similar conditions, including high temperatures, dry vegetation and intense winds, and they

travelled quickly through hilly, vegetated terrain.

Mohsen Rahnama, chief risk modelling Officer at RMS, said: “Wildfire is now a major catastrophe risk that must be rigorously managed with the best data and model science.

With increasing exposure due to properties near wild land areas and ongoing climate variability, insurers, policymakers, and homeowners must adapt to the prospect of more frequent and severe wildfires.”

pple’s chief executive Tim Cook said new regulations for the tech industry are “inevitable” in the wake of a series of scandals, rejoining a debate that is intensifying along with political pressure on the company’s rival, Facebook.

In an interview aired on Sunday, Mr Cook said “the free market is not working” and politicians will step in.

His comments come amid simmering tension between Apple and Facebook. Earlier this week, Facebook was accused of using underhand tactics as it struggled to contain the fallout from Russian interference on the social network and controversy over the leak of user data to Cambridge Analytica, the research firm.

Facebook’s actions, reported by the New York Times, included contracting with Definers, a Republican-leaning consultancy, which attempted to smear competitors and opponents on its behalf.

In an interview with the Axios website broadcast on HBO on Sunday night and taped before the revelations in the New York Times, Mr Cook said the tech industry should embrace regulation.

“Generally speaking, I am not a big fan of regulation,” he said. “I’m a big believer in the free market.

But we have to admit when the free market is not working. And it hasn’t worked here. I think it’s inevitable that there will be some level of regulation . . . I think Congress and the administration at some point will pass something.”

A Definers’ affiliate called NTK Network posted dozens of articles blasting Apple and Google for “unsavoury business practices”, including calling Mr Cook hypocritical for criticising Facebook over privacy, it was reported.

Definers told the NYT that their work on Apple was funded by a different technology company.

Facebook has denied it paid Definers to smear anyone and cancelled its contract with the company.

Facebook was also reported to have told employees to ditch their iPhones for Android alternatives.

Facebook said this was because Android is the largest global operating system.

Mr Cook has tried to put clear water between Apple, which makes most of its money from selling hardware, and advertising-based tech platforms, particularly Facebook, on the issue of privacy.

“This is not a matter of privacy versus profits, or privacy versus technical innovation. That’s a false choice,” he said.

During the interview, Mr Cook was forced to defend Apple’s acceptance of payments from Google — estimated at billions of dollars a year — to be the iPhone’s default search engine. “One, I think their search engine is the best,” he said.

“But two, look at what we’ve done with the controls.”

He pointed to the iPhone’s options for private web browsing and blocks for online trackers, which are used by marketing networks to target ads. “It’s not a perfect thing, but it goes a long way in helping,” Mr Cook said.

Tuesday 20 November 2018

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BUSINESS DAY

FINANCIAL TIMES

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COMPANIES & MARKETS

@ FINANCIAL TIMES LIMITED

Stocks shrug off China-US tension at Apec summit

Pound holds $1.28-level as Brexit drama rumbles on; oil prices rise

Michael Hunter and Hudson Lockett

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eopolitical tension kept investors in cautious mood, although stock markets were able to stay positive after the latest signs of trade tension between the US and China.

Oil prices were back under pressure, while the UK pound held the $1.28 mark as investors tracked the latest twists of UK Brexit politics.

Wall Street’s S&P 500 0.4 per cent in opening trade while European equities ticked up after stock benchmarks in Asia stayed positive.

The mixed run came after tension between Mike Pence, the US vicepresident, and Chinese president Xi Jinping at the Apec summit.

The gathering failed to issue a joint communiqué for the first time in its 29-year history, damping hopes that a detente between Washington and Beijing could be in store at the G20 world leaders’ summit in Argentina this month.

Europe’s continent-wide Stoxx 600 rose 0.1 per cent, limited by declines for industrial metals stocks.

London’s FTSE 100 added 0.4 per cent and Frankfurt’s Xetra Dax 30 was flat.

Australian assets showed their sensitivity to the outlook for eco-

nomic growth in China, which is the main market for Sydney’s dominant metal mining sector. The S&P/ASX 200 index was off 0.6 per cent, while the Australian dollar slipped 0.4 per cent to $0.7306 against the US dollar.

Hong Kong’s Hang Seng rose 0.5 per cent, helped by technology stocks and financials. Mainland China’s CSI 300 index of Shanghaiand Shenzhen-listed stocks was up 1.1 per cent, with property stocks providing support.

Tokyo’s Topix edged up 0.5 per cent, with financials and industrial stocks in demand.

Forex and fixed income The pound held above $1.28 — but fell 0.3 per cent for the day to $1.2808 — as investors followed Brexit politics. Theresa May dismissed a suggestion that the UK’s transition out of the EU could be extended as late as December 2022, after a suggestion to that effect made

by Brussels’ chief negotiator Michel Barnier.

The prime minister said Brexit must be complete before a UK general election due in that year.

Sterling was also 0.2 per cent weaker against the euro, with a unit of the shared currency costing $0.8910, having been stronger against its nearest neighbour by a similar margin earlier in the day.

Chipmakers face threat of long-term slump Weak demand for iPhones, falling cryptocurrencies and trade wars cloud the outlook Emma Dunkley and Nicole Bullock

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hen Apple, the world’s most valuable company, revealed this month that it would no longer disclose how many iPhones or Macs it sells, talk of “peak iPhone” swirled around the market.

Although a seemingly minor reporting adjustment, the change reflects a broader concern that demand for smartphones is falling, sending shockwaves through the global semiconductor sector and other parts of the iPhone supply chain.

That, combined with other problems from falling cryptocurrency values to global trade wars, has prompted questions over whether the once high-flying semiconductor industry is facing a long-term, structural slump.

“In the last couple years, semiconductors along with . . . other tech stocks have done really well,” said Michael Arone, US-based chief investment strategist at State Street Global Advisors. “They have had high growth rates and they have been beneficiaries of mobile phone, tablets and gaming.”

He added: “People are concerned the revenue growth won’t live up to expectations . . . If folks are not upgrading their devices at the same rate — whether phones or tablets or gaming — if the rate of replacement is slower, it is going to be an important signal that the economy is slowing.”

The sector was dealt a huge blow on Monday when Chinese authorities claimed to have uncovered “massive evidence” of antitrust violations by three of the world’s top memory chip manufacturers.

Officials in Beijing said an investigation into South Korea’s Samsung

Electronics and SK Hynix, and USbased Micron had made “important progress”. The three companies account for more than 95 per cent of the world’s supply of DRAM memory chips.

Fears of slowing global economic growth, mounting trade tension between the US and China, a bear market in Chinese equities, and the slump in cryptocurrency prices are also driving investors to cut risk, leading them to trim exposure to technology and semiconductor stocks that are more sensitive to the economy.

In the past few weeks, shares in some of the world’s biggest semiconductor companies such as Taiwan Semiconductor, Samsung Electronics and Advanced Micro Devices in the US have dropped, as nervous investors chop their holdings.

Those falls came after several companies in the sector issued weak third-quarter earnings, pointing to an over-supply of memory chips and waning demand for products that use them.

Samsung Electronics, one of the largest technology groups in Asia, warned at the end of October of a decline in the price of memory chips because of China’s rapid capacity expansion. The alarm bell was sounded even as the electronics group, which derives 80 per cent of its profits from memory chips, posted a record quarter for earnings.

Even the slump in the price of cryptocurrencies, with bitcoin falling from a high above $19,000 last year to below $6,000, is having a detrimental impact. TSMC, one of the largest technology companies in Asia, said in its third-quarter earnings that “continued weakness in cryptocurrency mining demand” would offset some of its growth in the fourth quarter.

Mike Pence arrives at the Apec summit in Port Moresby, Papua New Guinea © Reuters

Business group backs emission-reducing industry changes Leaders say proposals could limit global warming at an acceptable cost Ed Crooks

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group of business leaders has backed proposals for radical changes to industries including steel, cement, shipping and aviation to cut their greenhouse gas emissions, arguing that they can be transformed at an acceptable cost.

The Energy Transitions Commission, which includes leaders from companies such as Royal Dutch Shell, Saint-Gobain and Schneider Electric, as well as banks and environmental think-tanks, said net emissions from those sectors could be cut to zero by 2060 at a cost of about 0.5 per cent of world gross domestic product, using technologies including renewable energy and hydrogen fuel.

Chad Holliday, chairman of Shell and a member of the commission, said: “There is going to be an energy transition . . . We need to be part of the solution, not an anchor holding it back.”

The commission, which is chaired

by Lord Adair Turner, former chairman of the UK’s Financial Services Authority, and Ajay Mathur, directorgeneral of the Energy and Resources Institute of India, was created to find ways to cut greenhouse gas emissions that will allow healthy economic growth while limiting global warming to “well below” 2 degrees Celsius, the goal set by the 2015 Paris climate agreement.

In the electricity sector, steep declines in the costs of wind and solar power and battery storage have made it possible to find ways to cut emissions sharply. If that happens, electric cars would also allow steep reductions for passenger transport.

There are several sectors, however, for which it is much harder to see how emissions can be cut, including heavy industries such as steel, plastics and cement, as well as other forms of transport, including trucks, ships and aircraft.

In a report published on Monday, the commission argued that it would

be both technically and economically possible for those sectors also to cut their net emissions to zero, although it would require radical changes. That could include limiting demand growth, increasing recycling, improving energy efficiency sharply and capturing some of the carbon that they produce.

Jules Kortenhorst, chief executive of Rocky Mountain Institute, an energy think-tank, who is also on the commission, said: “This is not free. It does cost a bit more to do some of this stuff, and it will have a slight impact on GDP.” However, the commission argued that the benefits of avoiding climate change impacts would justify the investment.

Mr Holliday said that in some cases, companies could become more competitive by cutting their emissions — for example, curbing energy use. Many companies and industry groups were also taking the initiative on emissions reduction, he added. “Companies say: ‘Why don’t we get ahead of this, instead of waiting to be told?’,” Mr Holliday said.

Deutsche Bank plans €1bn bond buyback Olaf Storbeck

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eutsche Bank has earmarked €1bn to buy back senior non-preferred bonds in an attempt to lower its costly liquidity reserve.

The transaction will help the bank “optimise its future interest payments and maturity structure,” Germany’s largest lender said in a statement on Monday.

Optimising its liquidity reserves, which at the end of September stood

at €268bn, has been one of chief finance officer James von Moltke’s strategic goals.

Ahead of the announcement the two bonds in question — which mature in March 2025 and January 2028 and pay a coupon of 1.125 per cent and 1.75 per cent respectively — were trading at around 92 cents and 88 cents on the euro.

If Deutsche acquires the debt below its issue price, it realises a profit.

“Using a small part of our high cash position to repurchase senior

non-preferred securities reflects our aim to redeploy excess liquidity without taking undue risk,” Mr von Moltke said, adding the move would benefit all Deutsche’s stakeholders.

Deutsche’s tender offer for the two bonds will expire on November 27.

The announcement follows a larger bond buyback begun more than two years ago, when Deutsche repurchased unsecured bonds worth €1.9bn.

Brazilian economist Castello Branco set to become Petrobras CEO Andres Schipani

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razilian economist Roberto Castello Branco looks set to become chief executive of national oil company Petrobras in incoming president Jair Bolsonaro’s government.

Paulo Guedes, the powerful economic tsar and financier of the far-right president-elect, said on Monday Mr Castello Branco had “accepted the invitation” to replace Ivan Monteiro as CEO of the company. Mr Bolsonaro has not yet confirmed the appointment.

Mr Castello Branco is a former Petrobras board member, director at iron ore miner Vale and director of Brazil’s central bank. He would be the third senior member of Mr Bolsonaro’s economic team to have attended the University of Chicago; the others are

Mr Guedes and Joaquim Levy, the new president of Brazil’s development bank BNDES. Having Mr Castello Branco at the helm of the company would soothe fears that the election of a former army captain with nationalist leanings could lead to the appointment of a corporatist military man as head of Petrobras. Before his recent conversion to economic liberalism, Mr Bolsonaro had opposed the privatisation of “strategic” assets.

Discussions about the privatisation of additional units of Petrobras have been in motion for more than a year. Mr Guedes has said there are no “sacred cows” when it comes to state-run companies, and it is unclear how much, or what parts, of Petrobras might be privatised. One option is for the company’s fuel distribution unit, Petrobras Distribuidora to go private.

Mr Monteiro replaced marketdarling Pedro Parente in May in the midst of a truckers’ strike against rising fuel prices that brought Latin America’s largest economy to a near-standstill.

Both were part of a team of free-market managers in charge of turning around Petrobras’s fortunes following a graft scandal.

Market watchers have praised them for the clean-up of Petrobras’ balance sheet, which has one of the highest debt loads in the oil industry.

If he is confirmed, Mr Castello Branco will inherit a company with net debt of $72.88bn as of the end of September, down from $84.87bn at the end of last year. The company also paid a $853.2m fine in the US in one of the biggest ever corruption-related settlements related to the actions of former executives and directors.

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BUSINESS DAY

Tuesday 20 November 2018

BUSINESS DAY

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NEWS YOU CAN TRUST I TUESDAY 20 NOVEMBER 2018

INSIGHT/INNOVATION President Buhari and the perpetuation of authority stealing

OGHO OKITI Dr. Okiti is the president, Time Economics Ltd @ Dr_Okiti 081.7153.0058

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ou be thief, I no be thief…

You be rogue, I no be rogue …

You dey steal, I no dey steal ….

You be robber, I no be robber ….

You be armed robber, I no be armed robber ….

Many years after this Fela Anikulapo Kuti’s classic, and ahead of the 2019 elections, the argument about ‘authority stealing’ is back in the headlines, this time between the ruling All Progressive Congress (APC) and the People’s Democratic Party (PDP). Following the release of the series of the Gandollar ‘Nollywood’ like videos that show the highest level of desperation and child-like visible desires in a candy store (see my article last week), the supporters of the President, with full understanding of the implications for the 2019 kept mute. The presidency also, fully aware of the strategic importance of Kano State for the elections, have kept mute.

But in a classic hypocrisy moment, in which the fight against corruption is juxtaposed with the desperate quest for power, the President in far away in Paris commended the responsible Gandollar for completing projects started by his predecessor Rabiu Kwankwaso. The President

PROPHYLAXIS

AYULI JEMIDE Ayuli Jemide is Founder and Lead Partner of Detail Commercial Solicitors. An entrepreneur, public speaker and writer.

Email: AJ@ayulijemide.org Twitter: @JemideAyuli

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am been in this country all my life and I have never seen a time like this when politicians have become top rate comedians who keep citizens totally enthralled with their antics and theatrics. The drama in the political space in the last few years can compete favourably with Nollywood. We surely do have a new genre of reality TV systematized by politicians. Let’s call it ‘’Polywood’’!

Polywood has to its credit very many bestsellers and some of them include the shot clip of former President Obasanjo tearing up his PDP membership card into shreds prior to the 2015 elections.

There is the famous classic of patience Jonathan lamenting ‘’there is God oh’’. We cannot forget the Nigerian Security & Civil Defence Corp Officer’s TV interview that started a whole new lingo about ‘’oga at the top – this is now on Wikipedia. How about Femi Otedola’s video of Senator Farouk Lawan collecting the bribes and stuffing them into his cap? Can we forget Governor Okorocha’s penchant for erecting statutes of famous people

provided the classic APC response. While commending Gandollar for completing projects in Kano State, the President chided the former Kano State governor Rabiu Kwankwaso for using the resources of the State for the pursuit of presidential ambitions in 2015. Hahahahahah, I no fit laugh, I beg. Was he the only one?

Now, following the release of the audiotapes where the Senate President Bukola Saraki told his supporters in Kwara State in details why he withdrew support from the President’s second term ambitions, the president’s supporters have woken up from their slumber. According to the tapes, the Senate President argued that there were expectations after supporting the President very strongly for the elections in 2015.

He expected that there would be appointments for his supporters in the State as reward for the support they gave the President in 2015.

There is logic in the expectations of the Senate President until there was heavy suggestion in the tapes that the reward will provide the opportunity for personal and community empowerment and enrichment. The President’s supporters now argue that the tapes provides the evidence that the reason the Senate President and all those that left APC back to PDP is because the President has not allowed them to be corrupt.

They may be right, but the fact that the allegations of corruption and the stigma of corruption is starting to stick around the neck of APC is the most disgraceful turn of events. But only the ignorant will be surprised. Let me explain.

Nigeria’s variety of corruption and the acquisition of power are like Siamese twins. This combination is at the root of Nigeria’s inability to provide the required long term policy choices for the country’s development, provide infrastructure development, and put the country on the path of long term economic growth and prosperity. So, for those that continue to wonder why someone like me will not support the President, it is because he has not shown, nor demonstrated that he understands, nor willing

‘

Nigeria’s variety of corruption and the acquisition of power are like Siamese twins. This combination is at the root of Nigeria’s inability to provide the required long term policy choices for the country’s development, provide infrastructure development, and put the country on the path of long term economic growth and prosperity

,

to break the link between corruption and the acquisition of power. He has had over three years, and rather than start to break the link, he has entrenched it. He has done so by continuing to provide evidence that there is a dichotomy between ‘good’ and ‘bad’ corruption. Good corruption (corrupters) are those that support the president and bad corruption (corrupters) are those against him.

The understanding required to fight corruption will start with the acknowledgement and premise that nowhere in the world where is politics is funded from personal accounts.

Countries that have therefore made progress in minimising the corruption linked to politics have either resorted to largely unambiguous use of

State resources, and or clear campaign financing rules that allow large participation of the public and the private sector. So, the cycle of corruption in Nigeria is largely dictated by the cycle of power and the continuous quest for power. After the most competitive elections in Nigeria in 2015, we will witness another competitive elections next year and no one should be under the illusion that the resources are from the pockets of some nationalistic benevolent Nigerians.

But if progress has been made since 2015, there would not have been a major opportunity for any opposition. And because progress has not been made either directly on the issues that drive corruption, or the reduction in opportunities for corruption, the President, relying on “strong man” syndrome has failed to reduce corruption.

But just in case, the President or the opposition, if it wins, wants to truly make progress on the fight against corruption, it is possible through the following methods.

First, through the reform of the oil and gas industry in relation to licencing, joint ventures, production and downstream activities, and reduction in the discretionary powers of the President. Second is by the reform of the Land Use Act. The power of allocation of land ranks amongst highest opportunities for corruption in Nigeria public service.

Third is the reform that will enable the full disclosure and public registration of properties in the country. Fourth, the reforms that significantly reduce the use of bulk volumes of cash, and that only allow the transfer of monies between accounts. Finally, provide the right policies and environment in the banking system to fight corruption. There can be no corruption without the banks.

In conclusion, when a government has not made progress on the systems and methods of corruption, it can only rely on some hypocritical nuances in its quest to keep power.

I thank you.

With ‘’Polywood’’ who needs reality TV? and taking photographs in front of them? There is the picture of Lai Muhammed the Minister for Information sleeping on duty at a conference - not to forget how Nigerians have changed his name from Lai to ‘’Lie’’.

In the midst of this, we have Senator Adeleke whose claim to fame is that his dancing steps makes TuBaba grin with envy. The dancing senators dance video is a marvel any day! Sylvester Stallone ‘’Rambo’’ would be envious of Governor Ayodele Fayose’s action packed movie as he stormed the EFFC on his self-appointed date wearing a T-Shirt embossed with ‘’EFFC I am here’’.That short drama by His Excellency Ayodele Fayose does not come close to the action packed drama titled ‘’mace snip’’ starring 4 gentlemen

‘

We cannot forget in a hurry the popular and trending movie that has broken all records in viewership – this is the series called ‘’Gandollars’’ starring a serving governor Ganduje of Kano State counting his supposed bribes of thousands of US Dollars.

We must agree that Nigeria surely has got talent!

,

who simply walked into the National Assembly (yes the National Assembly of the Federal Republic of Nigeria) in broad day light with Senators in session to snatch and cart away the mace. That video which is on youtube should get a nomination for Realty Show of the Year.

We were still trying to get over this when the DSS stormed the National Assembly and locked up the legislative chamber refusing the legislators access into the building. The drama that ensued with Senator Ben Bruce threatening revocation of visas for those who have been involved and the encounter where gallant legislator Boma Goodhead dared the masked DSS guy to shoot would burst the box office if it went commercial. Can we forget Senator Dino Melaye who is a serial movie star, a lot of his movies are self-produced one-man acts – usually lyrical with dance steps imported from Bollywood. Dino did some other movies starring police in uniform - like the script of him hiding a tree to avoid kidnap by the police or Dino Melaye on the floor on the streets of Abuja resisting the police who attempted to ‘’kidnap’’ him to take him to Kogi state to stand trial.

Talking about trials, Olisah Metuh being wheeled into court on a stretcher to prove to the judge that he was ill was a production that cannot go unmentioned. The inspector General of Police was a major act in a much talked about video called ‘’Transmission’’ where he kept Nigerians wondering if he was a DJ learning how to scratch‘’transmission, transmission…’’. Lovers of house music surely loved that movie.

During the 2015 elections politicians really showed their talent in trying to reach the youths, nothing was spared, we had candidates eating corn on the road side and other antics. In this genre, my all-time favourite was the picture of Governor Rotimi Amaechi plaiting a girls’ hair. The Governor became a hair dresser! One of the movies I enjoyed most was the one where the major act was a snake, the producer of this movie must be nominated for Producer of the Year because they

depicted how snakes can be ‘’cashivorous’’ - eat cash for nourishment. The supporting act was an officer with WAEC who collected money meant for the government coffers but unfortunately the cashivorous snake came and whooped it all up. The Nigerian cash in transit insurance now includes a new policy to cover for hungry snake gulping cash.

The animals in Nigeria have their fair share of roles in Polywood, the rodents starred in a blockbuster movie where they went to the Presidents offices (yes Mr. Presidents office) with all temerity and bravado dressed in bullet proof vests to eat up the Presidents furniture – the sad side in this movie is that the rodents were not sympathetic of the fact that Mr. President was away on his sick bed at the time.

This script won an as Oscar for tragicomedy!

One of the most recent releases was Governor Ambode’s documentary that took us on a tour of a mental rehabilitation centre to see some of the patients and showed us in particular one VIP patient who had been ‘’accidentally’’ released and was on the prowl – a potential danger to society. Have you watched the court room drama reminiscent of the suits series where a whistle blower sues the federal government for his commission on Osborne cash discovery – the intrigues, the twists, the turns keep your glued to the screen!

We cannot forget in a hurry the popular and trending movie that has broken all records in viewership – this is the series called ‘’Gandollars’’ starring a serving governor Ganduje of Kano State counting his supposed bribes of thousands of US Dollars. We must agree that Nigeria surely has got talent!

Despite the fun and comic relief a few questions must be asked: What kind of message is Polywood sending to over 50% of Nigerians who are under 17 -years of age and very impressionable? Are these movies building their fabric as leaders of tomorrow? How many politicians do young people look up to and say ‘’when I grow up I will like to be like…..’’?

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